Automark magazine nov 2015

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Contents

News Update

Article / Review 14 17

18

20 40

Inside

November-2015

Cost of doing Business in Karachi City is high?

Exclusive Article by AM Understanding Brand Equity Are we moving in the right direction?

Exclusive Article by Imran Saeed AllahWala The Customer The Most Important Commodity Exclusive Article by Mohammad Shahzad S.A.E; D.M.P Indian automotive industry The road ahead Great World Wars and the Motorcycle Industry

22 24 31 26 32 35

Local Automotive news Are green cars at green light?

First phase of Karachi bus rapid transit system to be launched soon Auto industry robust despite chronic energy, tax, labor woes 1100km-long gas pipeline Pakistan, Russia sign IGA International automotive news

Exclusive Article by Talal Hussain Malik

Corporate Event - Press Release

Corprate Update 42 45

Choho - Company Profile From China Crown Group celebrated its grand prize distribution ceremony for its Dynamic Scheme Winners of Karachi

Price List 38

Vehicle price list

39

Motorcycle Price LIst

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November-2015 edition Volume 08, Issue 11

Pakistan’s premier magazine on automotive, engineering & energy sector

Monthly

AUTOMARK International Editor-in-chief Muhammed Hanif Memon Technical Editor

Advisors

Muhammad Shahzad

Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad

Advertising Manager Tahir Siddiqui

Circulation Manager Shahzad Raza

Graphic Designer Mustafa Hanif Salman Hanif

Web Master Murtaza Hanif

CONTRIBUTING IN THIS ISSUE Mohammad Shahzad Shahzad Tabish Talal Hussain Malik Imran Saeed Allah Wala M. Hanif Memon

Engr. IHT Farooqui Chief Operating Officer Karakoram Motors (pvt) Ltd. Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi Mr. Ashfaq Memon Senior Manager Marketing Memon Motors (Pvt) Ltd. Maker of Super Star Motorcycles Hyderabad

Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Tel : 021-32603371 Mobile: 0321-2203815 E-mail: automarkpk@gmail.com website: www.automark.pk

AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management

Auto policy 2015-20 ups and down Ministry of Industries and Production (MoI&P) is likely to submit a revised draft of Auto Policy 201520 to the forthcoming meeting of Economic Coordination Committee (ECC) of the Cabinet, as press media reported.

Engineering Development Board (EDB) has already got the consent of Chairman Privatisation Commission, Muhammad Zubair, Chairman Board of Investment (BoI), Dr. Mifta Ismail and Chairman Federal Board of Revenue (FBR), Tariq Bajwa.

However, Minister for Water and Power, Kjawaja Asif, who is also the convener of the auto committee constituted by the ECC, did not sign the draft policy because he was out of Pakistan.

On last month, Chief Executive Officer (CEO), Engineering Development Board (EDB), Tariq Ejaz Chaudhary visited the Ministry of Water and Power to meet the Minister for seeking his nod on the revised draft auto policy.

“As he reached the office of Staff Officer to the Minister, CEO EDB requested him to allow him to meet the Minister immediately. However, the Staff Officer replied that Minister is offering prayers, and as he gets free he would be allowed to enter the Minister’s office. Meanwhile, Minister came out of his office along with a friend. CEO EDB chased him in the corridor of the Ministry and ultimately entered the elevator along with the Minister wherein he requested the Minister to sign the document. The Minister did not sign the draft auto policy and on coming out occupied the back seat of his land cruiser. The CEO EDB saluted him with smile,” the sources added. This correspondent personally witnessed the entire scene in corridor and outside the A block of Pak Secretariat.

Later on this correspondent sent a message to the CEO EDB, asking him whether the Water and Power Minister has signed the document, he replied “as you are already aware that the subject matter is secret and before the ECC. I hope you being the responsible journalist should maintain the integrity and sanctity of the upcoming AIDP”.

“Our other concern is that presently three-year-old used cars which are being imported into Pakistan are a banned item and back door is being used to import 50,000 used cars in Pakistan per annum,” said an official.

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Exclusive Article on Bike Sector by AM

Cost of doing Business in Karachi City is high?

Due to this Chinese bike assemblers shifting to Punjab from Karachi Out of the 101 Chinese units, some 50 had closed down in the last two and a half years due to tough competition among them and delay in announcement of new Auto Industry Policy by the Govt. of Pakistan two years ago Chinese bike assemblers raised prices to Rs 38,000-43,000 from Rs. 36,000-40,000 due to rising cost of production.

Three assemblers of Chinese bikes, Winner, Safari and Moonstar have moved to Punjab from Karachi while another two Super Star and Power have expanded their production facilities to the bigger province in the past one year.

“Low land prices and better security in Punjab’s industrial areas as compared to Sindh has lured assemblers,” said Association of Pakistan Motorcycle A s se mb l er s ( A p ma ) C hai rma n Mohammad Sabir Shaikh. He said only 10 Chinese bike makers are enjoying production and sales with good volumes while around 40 assemblers are struggling for their survival owing to low volumes and profits.

“By shifting or expanding in Punjab, the as se mbl er s w i ll at l eas t sav e transportation charges, which are considered quite high keeping in view low prices of Chinese bikes,” he added.

In Punjab, bike sales are brisk as compared to Sindh.

Out of the 101 Chinese units, some 50 had closed down in the last two and a half years due to tough competition

among them and delay in announcement of new Auto Industry Policy by the Govt. of Pakistan Two years ago Chinese bike assemblers raised prices to Rs 38,000-43,000 from Rs. 36,000-40,000 due to rising cost of production.

Sabir said the industry was working on the same high taxes and duties when $1 was equal to Rs. 60 as compared to current rate of Rs101.

Most of the struggling Chinese bike assemblers are still waiting for the new auto policy.

“In case the policy comes in favour of bike assemblers, sales of many ailing units will revive. Otherwise unfavourable policy will result in closure of more units,” Sabir said.

The maker of Habib bike, who closed their production plant by FY14, revealed zero production and sales in the first quarter of FY16 compared to nil production and 350 units a year ago.

Habib’s sales fell to 350 units in FY15 compared to 16,971 in FY14.

Hero bike sales faced a sharp fall to 1,083 units in July-September 2015-16

from 3,015 units in same period last fiscal year. The bike sales dropped to 8,607 units in 2014-15 from 11,525 in 2013-14.

Vice President All Pakistan Honda Motorcycle Dealers Association (an organization created by Atlas Honda) Naseem Anwar said improved law and order situation in Karachi has proved helpful for Atlas Honda Limited (AHL), increasing its sales to 1,800-2,000 units per month from below 1,000 units three to four months back.

He said a price cut of Rs6,500 made by AHL on Honda CD-70cc had boosted up its sales to 188,751 units in JulySeptember 2015-16 as compared to 141,134 units in the same period of 201415. Honda bike sales in 2014-15 improved to 653,193 units in 2014-15 as compared to 639,499 units in 201314.

Pak Suzuki Motor Company Limited (PSMCL) too was recording lower sales.

The company sold 4,263 units in the first quarter of this fiscal year compared to 5,914 units in the same period of 2014-15. Pak Suzuki sales had also

Ministry of Industry Government of Pakistan

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Monthly AutoMark International

declined in 2014-15 to 22,703 units as compared to 24,356 units in 2013-14.

Sabir Shaikh Said the reason is declining sales of Suzuki is competition in 150cc model, sales of bikes by four wheeler dealers under cost and without profit, less interest of two wheeler sales dealers and behaviors of company staff with two wheeler dealers.

DYL Motorcycles, which had been facing falling sales since 2010-11, recovered with sales of 2,103 units in JulySeptember 2015-16 as compared to 1,643 units in the corresponding period last fiscal year. In 2014-15 the company

other cities industrial lands are available in abundance and at affordable prices followed by cheap labor.

In Hyderabad, Gujranwala, Gujrat and Lahore, transportation charges are very low. Dry ports for import of goods is also very business friendly due to one in charge of customs appraisement, intelligence, physical examination of imports, sales tax and sales tax audits.

The involvement of federal government agencies has been negligible in industrial activities in other parts of the country than Karachi.

Many others have tasted this windfall

One of the main reasons in putting up money for setting up of industries is the costly land prices coupled with non availability of land in safer areas. sold 7,172 units as compared to 12,138 units in 2013-14.

Sales of Unique motorcycle, Super Power motorcycle, Sitara Guangta motorcycle and Super Star motorcycle in Sindh province also increased. In Punjab province two bike assemblers United and Road Prince are also in good position in terms of sales.

Why bike industries fail in Karachi, prosper in other cities of Pakistan?

One of the main reasons in putting up money for setting up of industries is the costly land prices coupled with non availability of land in safer areas.

Due to the above reasons many industries are making vertical expansion in their units which unfortunately does not work in the bike industry.

High labor charges in Karachi than other parts of the country is also one of the main problems and a number of agencies/officials belongi ng t o government (federal, provincial and district governments) regularly visit the industrial units forcing the industrialists to grease their palm specially PSQCA. It means that cost of doing business in Karachi especially is very high than other parts of the country. Contrary to this, in

in Hyderabad that currently houses more than 20 production units. The motorbike manufacturing industry received a boost after 2002 when local assemblers set up plants for Chinese two-wheelers on the back of a sharp cut on import duties of completely built-up bikes by the government for the introduction of new models in the country but unfortunately same models are being rolled out which were available in 2002.

The only difference from 2002 till to date was presence of less than five units in Pakistan as compared to more than 100 units now all over Pakistan. But there has been no change in the models and even 1990s models are still plying on the roads.

After success in the local market, Pakistan’s motorbike industry has joined the club of those countries exporting the v eh i cle s up t o 2 00 8 . D ue t o government’s ineffective support, the export of bikes by Chinese bike assemblers came to a halt after 2008 while only Japanese bike assemblers are fetching some orders.

With a better security situation compared to Karachi and availability of skilled labour, industrialists say it is much easier to do business in Sindh’s second biggest city — the largest supplier of locally manufactured motorbikes

across Pakistan.

“For the past five years or so, we have been producing 1.6 million motorbikes, ranging from 70cc to 150cc, in a year,” says Mohammad Sabir Shaikh of the Association of Pakistan Motorcycle Assemblers. There are 104 companies which have won the government’s approval to set up production plants but t he maj ori ty ’s plans hav e not materialised. Currently, fewer than 50 companies are in production, with most having units in Hyderabad and Lahore.

In the last 10 years, Sabir said more than 40 units of bikes have closed down or transferred from Karachi due to multiple reasons. However, he says, the boom that began in 2002-03 may experience a setback if the government further delays the approval of Auto Industry Development Policy that would allow new models and fresh designs for motorbikes.

In 1990, Pakistan’s auto sector was far much ahead by at least 50 years than China and India but by 2015 the current standing of Pakistan’s auto sector has gone 100 years back than China and India, says Sabir Shaikh.

“Over the past 10 years and more, we have grown a lot but are producing a certain range of products. The auto industry the world over relies on innovation but, unfortunately, it’s not the case here. You may admire Hyderabad and Lahore growing fast in this area but it cannot sustain the momentum if an industry-friendly policy and further opportunity are not offered by the government,” he said.

By following current laws and regulations more than 50 per cent bike manufacturers succeed in tax evasion.

This tax evasion is possible because of taking advantage through SROs, smuggling of imported parts, under invoicing and also sales tax.

Some units take advantage on import of their CKDs and raw materials as their imports are not examined. What is the surety that the assemblers import higher duty items other than raw materials and they show these parts as local items.

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Launching plan

Monthly AutoMark International

Uber Officially Confirms its Plans to Launch in Pakistan The announcement of a trio of Pakistan centric vacancies on Uber’s career page spurred rumors that the on-demand firm is going to enter the local market.

Eagle eyed netizens spotted job ads for a General Manager, Marketing Manager and Operations and Logistics Manager.

Now, it’s been officially confirmed by Sh ad en A b d e l l at i f , wh o ’s t he communications manager for Uber’s Middle East and Africa operations in an emailed statement to ValueWalk.

We can confirm we are currently recruiting for a team in Lahore, and are very excited about launching in Pakistan as we see huge potential in the way we can help people move around their city safely and reliably.

We are also excited about the opportunity for economic empowerment we can bring to the drivers we partner with.

India and there are similarities between our two markets.

More importantly, the emergence of services like Travly indicates that Pakistan is ready for a major disruption when it comes to transport.

“We can confirm we are currently recruiting for a team in Lahore, and are very excited about launching in Pakistan as we see huge potential in the way we can help people move around their city safely and reliably.

We are also excited about the opportunity for economic empowerment we can bring to the drivers we partner with.”

If we’re being candid, Uber coming to Pakistan was only a matter of time. With over 120 million phone users, growing 3G/4G subscriptions that have reached 18 million in just 18 months and increased awareness hints that companies like Uber have a case in Pakistan.

The company recently announced a $1 billion investment into neighboring

We anticipate that Uber will start its operations in Pakistan with Lahore initially, however, more cities will be added into Uber coverage down the line.

It is yet to be seen if Uber will maintain its own fleet of cars with in-house drivers in Pakistan, or masses will be invited to join Uber with their own cars as its native model that’s practiced all over.

Uber, which provides on-demand rides

via a smartphone app, is one of the most valuable private companies in the world. Most recently, it conducted a funding round exceeding $1 billion, becoming the second company after Facebook to exceed $50 billion valuation before going public. In five years, it has expanded to 58 countries and 300 cities.

Pakistan, with an estimated population of 200 million, is a market largely untapped when it comes to taxi apps.

There have been efforts in the past, with Rocket Internet-backed EasyTaxi as well as homegrown startups such as Savaaree, but they’ve largely failed to make enough of a dent. However, with explosive growth of high-speed internet and Uber’s demonstrated willingness to tweak its model for accepting cash payments, there seems to be no reason why a concerted effort won’t work in Pakistan.

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Exclusive Article by Imran Saeed Allahwala

Monthly AutoMark International

UNDERSTANDING BRAND EQUITY ARE WE MOVING IN THE RIGHT DIRECTION? In current situation, dealers take away most of the cake, leaving assemblers high and dry with ever increasing receivables. People fear to embrace change, but in this situation, what do they lose?

They are going to close down anyway, it’s just a matter of time, so it’s only common sense, we start to set the course in the right direction, the recipe is simple, put yourself in customers shoes: Think about safety, durability, retained value, fresh looks and last but not the least, make money for employees and shareholders Traditionally, we used to hear that brands build over generations, and not in a short time. The logic brand owners look at, is the stand out image of one’s company or products that customers have witnessed for many years, as a result of very hard work. There comes a time, we start hearing “SHAHI KA HAY TOU ACHA HI HOGA” or product image we associate with Mercedes or even the lowest price vehicle, because brands position themselves with target audiences in mind, their spending capabilities, age bracket etc. – meaning, a lot goes into research and development in order to bring the right product.

However, there has been a serious misconception across 3rd world countriesabout understanding brand management and making good quality, people always relate quality with high price, which is so very wrong!

Reason being, they don’t develop, they merely buy components and assemble. Unfortunately even the selection of components don’t consider safety & durability factors, let alone quality.

Brand equity can only be judged with the mindset of shareholders and senior managers; it’s got more to do whether a company has a vision statement or values statement or not, because the entire company’s philosophy can be seen in just few words, yet it delivers a lot when we see the end product.

Being a progressive thinker, I always look for solutions rather than being just a critic; I am extremely worried at the dwindling, downhill flight of our automobile industry, what we see today,

is actually degeneration of product development and to substantiate my observation, let’s look at Pak Suzuki, the company has been producing poor quality vehicles, using the worst of materials, using faded colors and selling the same designs since last 2 decades except for 1 or 2 models. Whereas the same company has been doing wonders in India, new models, vibrant colors, safety equipment, high quality materials being sold at much lower prices – we can’t debate economy of scales between Pakistan & India, but there is no excuse of making customers hostage to buy the same model every year.

Talking of customer spending ability, small cars upto 3-4 years old, being imported attracts more customers as they are being given preference over new local assembled cars just because, there is no value for money.

Motorbikes segment is even worse, the situation has reached an alarming stage; what do we call this industry where multinational brands who are market leadersalong with Chinese assemblers start calling “change of stickers” or

changing minor shape of fuel tanks or head lights as NEW MODELS? In all honesty, I feel it’s not fair to just blame government’s policies in favor of big companies; the fact remains, no one has ever challenged these so called market makers! We don’t need deep pockets to come up with better looking, fresh designs with good quality key components such as the engine, brakes, suspensions, batteries etc.

The solution lies within the problem, we just need to come out of this negative mindset that we cannot sell at a little higher price, customers appreciate quality and new designs, it’s just natural, so if a large segment of customers paying over Rs 60,000 for 70cc bikes, why wouldn’t the same customer goes for a bike, that brings freshness with better quality at Rs 50,000 backed with proper warranties – it’s about time we come out of this negative syndrome, that haunts Chinese assemblers not to look beyond Rs. 40,000.

In current situation, dealers take away most of the cake, leaving assemblers high and dry with ever increasing receivables. People fear to embrace change, but in this situation, what do they lose? They are going to close down anyway, it’s just a matter of time, so it’s only common sense, we start to set the course in the right direction, the recipe is simple, put yourself in customers shoes: think about safety, durability, retained value, fresh looks and last but not the least, make money for employees and shareholders.

IMRAN SAEED ALLAHWALA...

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By Mohammad Shahzad S.A.E; D.M.P

The Customer The Most Important Commodity As Sam Walton, founder of Wal-Mart once noted: “There is only one boss. The Customer! And he can fire everybody in the company from the chairman on down, simply by spending his money elsewhere.”

The customer who enters your service shop is a peculiar guest. He is full of whims and fancies. And he is full of worries and fears about his car. And for good reason: he’s painfully ignorant about his car’s innards.

But when it comes to you and your service shop, the customer is a vital resource and the very foundation of your business. Put another way, you’d dearly miss him if he didn’t come in. After all, at the end of the day, he’s the one signing your paycheque.

As Sam Walton, founder of Wal-Mart once noted: “There is only one boss. The Customer! And he can fire everybody in the company from the chairman on down, simply by spending his money elsewhere.”

Service shops are especially prone to harsh criticisms from their customers.

The reason is apparent when we examine what it is we sell. Service is intangible. You can’t see it. You can’t take it home in a bag. It’s something that’s sold by trust alone.

A perfect example is selling brake pads over the parts counter and servicing brake pads in the shop. If a customer isn’t satisfied with the pads, the parts advisor can take the pads back. But service performed on brake pads cannot be returned; labour cannot be retrieved.

Of course, you may point under the hood. But that doesn’t prove anything to a person who lacks automotive knowledge. Performance, however, will prove you’re telling the truth. Therefore, your main task as a service tech/advisor is to satisfy the customer with the integrity of your service shop.

The customer, lacking a true knowledge and understanding of his car, realizes his disadvantage. He is, therefore, a little suspicious. For example, you may tell him that you have tuned his engine; but you can’t prove it. He has to take your word for it.

You want him to feel that you know: 1. What is wrong with his car; 2. What will be needed to correct his troubles; 3. How much the repairs will cost; 4. When the car will be ready.

Likewise, you want to feel that you have completed the repairs as promised.

When you have accomplished this task, your other duty of selling service won’t be so difficult.

Notice my emphasis on the word, “feel.”

The customer has no way of knowing that you will (or are able to) repair his car trouble as promised. But if you’ve given him the impression that you are trustworthy, he will have no doubts.

Thus the entire relationship between you and your customer is ultimately built upon trust.

The customer formulates his opinion of the shop through you. Your

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Monthly AutoMark Magazine understanding, your problem-resolution skills, the courtesy you display and the confident tone of your voice… these qualities will go a long way toward satisfying a customer. You want him to have the feeling that “here is a place to do business and come back next time without hesitation.”

Your First Sale Appearances count, so sell yourself to customers by your appearance. A tidy, organized shop and a clean, well-dressed service tech/advisor is the best invitation for a customer to come in and conduct business. A clean tech/advisor advertises a clean, careful shop ; a d irt y tech/advisor suggests the shop might be sloppy.

Many customers have been known to hesitate when it comes to leaving their cars at a shop which otherwise has a reputation for excellent work simply because of the appearance of the shop.

Keep your shop and reception area tidy and organized. This is the gateway to your business.

Attitude/Manners If the customer’s first impression is formed by your appearance, it is either destroyed or strengthened by your attitude and manners!

All too frequently a customer drives into a shop to find no one there to help him.

He may sit in his car or he may step out.

But he waits! And as he waits, his impatience mounts. Whe n a tech/advisor finally comes around, that customer isn’t in a good frame of mind to discuss his car problems. It’s even more irritating to a customer if he’s brushed aside by a tech/advisor who fails to recognize him. Or to be met with the greeting, “I’m busy now, back in a minute.”

If a condition exists in which a customer cannot be waited on immediately he should at least be acknowledged – i.e., “I‘ll be with you in just a minute.” And please – say it with a smile. Doing so will completely satisfy the customer – provided, that is, you keep your promise.

Also, offer him a coffee and a newspaper while he’s waiting. The point is, by recognizing him, you have indicated that you’re aware of his presence and that you intend to help him.

Toyota launches first commercial FCV, MIRAI Toyota has launched the MIRAI, the first commercial hydrogen vehicle poised for mass production. After introduction to the Japanese market in December 2014, Toyota is launching the MIRAI in US, available from the fall of 2015. More markets will follow. The offer includes complimentary fuel for 3 years, compensating for the high upfront cost of the first model. The MIRAI is a four-door, mid-size fuel cell sedan with a level of performance that fully competes with traditional internal combustion engines; it refuels in 3 - 5 minutes, and travels up to 300 miles (482 km) on a full tank, overcoming many of the hurdles that electric vehicles are currently facing in gaining recognition from ordinary consumers.

Furthermore, it accelerates from 0-60 mph (0-97 km/h) in 9 seconds. The MIRAI uses the Toyota Fuel Cell System (TFCS). The TFCS consists of both fuel cell technology and hybrid technology, including a fuel cell stack, a fuel cell boost converter and high-pressure hydrogen tanks. The TFCS is more energy-efficient than conventional engines and emits no CO2 or pollutants when burnt in the vehicle. Another important feature is safety. Toyota has designed a fail-safe system that prevents explosions.

Studies have shown that almost 70% of customers who “quit” do so because of an attitude of indifference by the company or a specific individual.

The greeting of the customer is the most important sale of the day. That greeting will determine whether the customer feels that he was justified in bringing his car to your shop in the first place. If properly handled, the customer will not only feel satisfied but will also feel downright thankful. A friendly positive attitude inspires confidence, and confidence sells bigger repair orders.

Finally, respect and treat your customers

Toyota Aims to Nearly Eliminate Gasoline Cars by 2050

Toyota, under new environmental targets, will be selling hardly any regular gasoline vehicles by 2050, only hybrids and fuel cells, to radically reduce emissions.

Toyota Motor Corp. announced its ambitious vision at a Tokyo museum Wednesday, promising to push governments, affiliated companies and other "stakeholders" to by 2050 reduce average emissions from Toyota cars by 90 percent compared with 2010 levels.

The Japanese automaker projected its annual sales of fuel cell vehicles will reach more than 30,000 by about 2020.

It says annual sales of hybrid vehicles will reach 1.5 million so by 2020 Toyota would have sold 15 million hybrid vehicles, nearly twice what it has sold so far around the world.

Electric vehicles weren't part of its vision. as you would like to be respected and treated. Remember, it is the satisfied customers who collectively sign your paycheque. Treat your customers like kings and you’ll retain them for life.....

This exclusive article on The Customer The Most Important Commodity has been written by Mohammad Shahzad S.A.E., D.M.P. specially for Monthly AutoMark Magazine.

(Automotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada.

Free advice for Automark readers; please do not hesitate to contact him at shah@brimelltoyota.com or automarkpk@gmail.com

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Indian Automotive Industry - Report

Monthly AutoMark International

Indian automotive industry The road ahead

Background: According to the Society of Indian Automotive Manufacturers (SIAM), Indian automotive sector today is a $74 billion industry and by 2026, the industry is expected to achieve a turnover of $300 billion- clocking a CAGR of ~ 15 percent. The Automotive Mission Plan (AMP) was drafted in 2006 to map the aspirations of the auto and auto component industry, to promote India as a pre ferred global manufacturi ng destinati on and introduc ed inte rve ntion a nd prescription mechanisms for promoting the industry.

The first phase of the plan was called Automotive Mission Plan 2006-16 and focussed broadly on five aspects: Economic growth, passenger comfort, sustainability, quality, and cost competitiveness.

AMP 2016-26 is likely to be formally announced by the end of the year and

is expected to provide a ten-year road map. Recently at SIAM’s 55th Annual Conference, GoI and SIAM provided a brief overview of the new AMP which appears to recognise the need for auto and auto component manufacturers to move from plain vanilla manufacturing to building design and engineering capabilities. This column aims to analyse the achievements of AMP 2006-16 and highlights expectations from AMP 201626.

Background of AMP 2006-16: As per the ministry of heavy industries and public enterprises, for FY 2014, automotive industry formed 7.1 percent of the GDP, 45 percent of the manufacturing GDP, contributed 4.3 percent to exports, and 13 percent to excise revenues. During 2006-16, the industry created 19 million additional jobs and saved 8.6 billion litres of fuel.

While a lot of ground has been covered under AMP 2006-16, the industry

missed out on the optimistic targets set under the plan. Infrastru ct ure bottlenecks, delayed reforms, policy stagnation, high interest rates, and global financial meltdown played a complex role in demand disruption.

The challenges presented by demand disruption could have led to a race for innovation. However, the message was ignored and we observe the following phenomenon: • Most of the auto-component players are focusse d o n p lai n van il la manufacturing of components with limited focus on integrated system.

Some of the critical components, especially for passenger cars segment such as engine, transmission, and electronic parts are still being imported.

A c co r d i n g t o t h e A u t o m ot i v e Component Manufacturers Association of India (ACMA), during FY 2013-14, 21 percent of components were imported from China alone, and the rest from Germany, Japan and South Korea

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Indian Automotive Industry - Report

Monthly AutoMark International

“The government has already spent $280 million for creation of centres of excellence and crash test centres. The centres would help the industry to comply with advanced norms and help in implementing AMP” • Close to 2/3rd of auto-component exports still comprise traditional mechanical parts; value added products such as high-end safety and advanced electronic parts form less than 10 percent of exports • Almost all Indian OEMs have launched several new models, very few new launches can be considered as cutting edge next generation models with the exception of a few • While many of the global OEMs are increasing their designing focus in the Indian market, most of the new launches in the Indian market are global successful models • Still most of the component designs are provided by OEMs with limited capability to convert a concept into a viable prototype • After-market export potential has been largely ignored with most organised auto-component players focusing largely on OEM sales. Aftermarket requires concentrated efforts to build global supply chain – both on-shore and offshore capabilities, brand positioning, improved product portfolio and building pricing strategies

AMP 2016-26: Based on the brief overview provided by the SIAM conference, AMP 2016-26 envisions at developing India as one of the top three automotive manufacturing hubs in the world. An optimistic revenue target of $300 billion for FY 2026 has been set.

Some of the salient features of AMP 2016-26 are as below: 1. Auto industry to contribute 13 percent to the GDP – present contribution is less than 10 percent 2. Creation of incremental 100 million jobs 3. Projected $80 billion in capex investments 4. BS V emission norms to be adopted by 2019; BS VI emission norms to be implemented by 2023 for passenger vehicle 5. AMP envisages to implement ‘end of life policy’ for old vehicles ‘Make in India’ or ‘Made in India’?

Vision AMP 2016-26 has been aligned with Make in India campaign which is essentially a Made in India initiative.

Made in India initiative has brand perception challenges and could be overcome only by providing value added products and services such as improved sa f e t y f ea t ur e s , t ec h n o lo g i c al enhancements, and quality management.

National Automotive Testing and R&D Infrastructure Project The government has already spent $280 million for creation of centres of excellence and crash test centres. The centres would help the industry to comply with advanced norms and help in implementing AMP.

The National Electric Mobility Mission (NEMM) Plan 2020 The National Electric Mobility Mission Plan 2020 and policy of Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India aims at creating a vehicle base of ~7 million electric cars by 2020. The policy aims to provide incentives to buyers as well as suppliers and for undertaking R&D initiatives, to create public charging infrastructure, to encourage retrofitment of vehicles. National Automotive Board (NAB) under the supervision of the department of heavy industries has been constituted for implementation of the plan.

Other policy initiatives The government of India has extended support to the industry by increasing customs duty on CBUs of commercial vehicles from 10 percent to 40 percent, reduction in duty on chassis for ambulance manufacturing from 24 percent to 12.5 percent, extension in concession on select parts used in the manufacture of electric & hybrid vehicles and weighted deduction up to 200 percent of expenditure on R&D for computation of expenses under Corporate Tax. Implementation challenges AMP lacks clarity on real-time benefits

for maki n g ad d i t i on al ca pi t al i n v es t me n t s an d r e q u i r e s an implementation road map for AMP 2016-26.

The key challenges for meeting the targets set out in the plan are alignment with global emission standards and safety norms, lack of infrastructure, urban congestion, integration of smart concepts-vehicle to vehicle and vehicle to infrastructure, meeting efficiency needs, and safeguarding intellectual property rights. Some of the other challenges are: 1. Customs duty and transfer pricing issues plaguing the industry 2.Implementation of simpler tax structures such as GST 3. End of Life Policy’ for old vehicles and ban on overloading – these are sensitive issues and may not find patrons in the political fraternity 4. Lack of growth opportunities for auto industry players have attracted them to other sectors

BMR point of view While we have launched ambitious policies in the past, such policies have become plagued by reform stagnation and suffered subdued enthusiasm on incentivisation and implementation front. To help the industry leapfrog into the next generation of opportunities, we believe that a two-way road map has to be built by GoI as well as the Indian automotive industry. While the government has to make serious efforts on policy implementation, industry has to take the onus for making Make in India a truly Made in India campaign.

Curtesy -By Amit Jain is Partner, BMR & Associates LLP (with inputs from Kunal Mittal, Sr V P, BMR Advisors)

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Paapam says tractors’ import to hurt local industry Pakistan Association of Automotive Parts and Accessories Manufacturers Chairman Mumshad Ali has said that import of used tractors would hit l o c al i n d u s t r y a n d r e s u l t i n unemployment, besides causing dent to the exchequer.

He said that foreign players in the industry never sustained as witnessed in the past. Even Chinese tractors failed to capture local market because locally produced farm machines are the best, with cheap prices.

The government, he said, should learn from past experience and refrain from repeating the same mistake again.

Mumshad, in a statement, said the government should not disturb the already established tractor industry through unfavourable policies. Tractor industry has already achieved over 95 per cent localisation and this all is to get

disturbed by import of used tractors.

The farmers, he added, would not be able to get parts of these used imported tractors while availability of trained mechanics for repairing the same would also be an issue.

Moreover, Mumshad said that local industry had export potential as they were producing tractors at the cost of around $7000, however, other countries offered same quality tractors at around $14000. Despite taking advantage of this edge, the government is so far unable to evolve national policy for the tractor industry, he lamented. He requested the concerned authority to safeguard and promote the local tractor industry as it would not only generate huge foreign exchange but also cr e at e en o r m o us e mp l o y me n t opportunities....

Local car sales jump 72% Local car sales (including light commercial vehicles, jeeps and vans) jumped to 54,812 units in the first three months (Jul-Sep) of fiscal year 2016, up 72% compared to 31,899 units in the same period of last year, according to d at a released by the Pakist an Automotive Manufacturers Association (PAMA).

It is important to note that in September 2015, despite fewer working days due to Eidul Azha, local car sales rose 45% year-on-year (YoY) to 18,424 units.

They, however, declined by 10% monthon-month (MoM).

The overall healthy growth in the auto sector is indicative of an increase in per capita income, lower interest rates and overall recovery of the economy. Car financing is also picking up gradually (currently estimated at 30% versus 5% a few years ago).

To recall, car sales (excluding imported ones) in Pakistan grew at a five-year (FY11-15) compound annual growth rate (CAGR) of 5.3% to 179,953 units. While volumes surged by 31% in fiscal year

2015 (FY15) on the back of the new model of Toyota Corolla, Punjab taxi scheme and an increase in car financing due to 42-year low interest rates in the country also helped.

“We forecast local car sales to grow at 13% in FY16 to reach 203,653 units,” Topline Securities reported on Monday.

Amongst individual companies, Pak Suzuki sales increased by 98% YoY to 33,770 units in 1QFY16 primarily due to the taxi scheme. Volumes declined by 12% MoM. Indus Motor sold 14,767 units in 1QFY16 compared to 9,862 units in the same quarter last year. In the month of September, Indus Motor’s sales stood at 4,984 units which rose by 6% year on year. On a MoM basis, however, following the trend in Pak Suzuki, Indus sales also decreased by 10%.

Honda Cars sold 6,184 units in 1QFY16 compared to 4,887 units in the same period last year. In September, Honda Cars sold 2,001 units, up by 14% YoY, while remained flat on a MoM basis.

52,000 smuggled vehicles cleared under Amnesty Scheme-2013: report The magnitude of smuggling into Pakistan is very high as 52,000 vehicles cleared under Amnesty Scheme – 2013 were smuggled from Afghanistan. A report said that the estimates of total volume of smuggling are not available.

However, it can be assumed that a major chunk of over 60 percent of merchandize imported by Afghanistan is meant for re-export or smuggled into Pakistan.

Most of the goods brought in transit to Afghanistan either through Pakistan or Ir an hav e no co nsump ti on in Afghanistan.

“The latest example is clearance of 52, 000 vehicle smuggled f rom Afghanistan under the Amnesty Scheme allowed for a period of only one month,” the report said.

Similarly, Iranian goods i.e. petroleum products, plastic material/products, fabric, carpets etc are frequently smuggled, the report added.

It said that the UAE is the main source of smuggling of liquor in fishing boats/trawlers and launches etc. besides the “transfer of liquor from the ships in the high seas to small boats for satisfying the thirst of Pakistani bootleggers.”

The report said hat Gutka and livestock beside silk saris are smuggled from India.

Most of the smuggled items are either banned for import or subject to higher rates of taxes with cumulative effect of over 50 percent.

60 metro buses to be run initially in Multan Multan Metro Bus Project Chief Engineer Sabir Khan Saduzai said 60 buses would be plied initially at Metro Bus route which would be enhanced to 120 with a passage of time.

The project was launched in the city after thorough survey which was being completed with Rs 28.56 billions, Sabir said and added that Rs 4.25 billions were spent on acquisition of land while Rs 24.31 billions on construction of 18km track.

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ZIC Oil Hi-Tech Lubricants introduces new user-friendly packaging Hi-Tech Lubricants, soon to be a publicly listed company, has introduced new user friendly and ergonomically attractive packaging for its leading machine lubricants brand-ZIC Oil, along with the introduction of new and simplified brand classification. The Company has initiated the launch campaign in the presence of representatives from its Principal Company, SK Lubricants of Korea, and a cross section of Hi-Tech Lubricants dealer network.

The CEO of the company, Hassan Tahir, in his speech stated that whereas the overall objective of the introduction of the new packaging was to create an ease in the handling of the company's fuel economy lubricants through attractively designed plastic containers, however the other reason was to deal with the issues of fake oil available in the market.

He said that due to the growing demand for ZIC brand lubricants, it is important for the company to change its packaging designs after every 5-6 years so that we can counter the issue of the fake oil available in the market. He said that the introduction of new packaging imposes a major cost on the company, however as the use of fake oil can rather cause damage to the customer's machinery and transport, therefore it is our duty to do everything to save them from spurious lubricant brands.

Hassan Tahir further said that the new packaging provides an easier to handle packaging to ensure the availability of a consistent quality of our top lubricant brand under extreme temperature and

pressure environments. The new packaging also ensures zero spills and contains a super strong adhesive seal to prevent leakage or wastage of oil during h a n d l i n g , t r an s p o r t a t i o n a n d distribution arrangements, he said. Side by side the new packaging, the company has also simplified its brands by introducing the lines of X3, X5, X7 and X9 brands in ZIC X series. The CEO stated that the new brand names would be easy to recall, pronounce and recognise. With the introduction of the new double handle containing bottles with simplified brand names, it would become easier for the customers to choose the preferred quality of ZIC lubricants according to their choice. The Company plans to hold similar launch events in many other cities of the country before the start of its road shows for the upcoming IPO of the country, which shall be the first ever IPO from a company exclusively engaged in machinery lubricants supply and packaging.

Hi-Tech Lubricants Limited is the leading machinery lubricant supply company of Pakistan, which boasts a sizeable market share in almost all the related market segments of the country.

Hi-Tech's product portfolio, under the brand name of "ZIC," includes a wide range of specialty lubricants in automotive, industrial and marine segments, which are imported from SK Lubricants Ltd, South Korea, ensuring highest quality and maximum protection against engine and machine wear.-PR

Engineer Mumshad Ali elected Chairman PAAPAM Engr Mumshad Ali has been elected chairman Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) for the year 2015-16. Mashood Ali Khan and Mehmood Alam Sherani were also unanimously elected Senior Vice Cha ir man a nd V ic e Ch ai rman respectively. Syed Mansoor Abbas, Saeed Iqbal Khan, Taufiq A. Sherani, Rehan Riaz, Munir K. Bana and Zeeshan Abu Sheikh were elected as members of the Executive Committee.

Muhammad Ashraf Shaikh Chief Election Commissioner PAAPAM announced the final results at 16th Annual General Meeting of the Association. The executive committee and members of PAAPAM congratulated Engr. Mumshad Ali and hoped that being a vet eran, seasoned and experienced person he will fully utilise his potentialities to resolve the problems being faced by the automotive vending industry.

Kansai Paint expands in China

Kansai Paint plans to launch the Chinese production of automotive paint resins, with a facility planned to open “around fiscal 2016”.

The Japanese company is looking to meet growing demand from Japanese and We ste rn O EMs i n Chi na.

Kansei Paint's parner in China, Hunan Xiangjiang Kansai Coating. will set up the plant in Changsha, Hunan Province.

The new plant will mean that resins now imported from Japan and India can be locally sou rced, wit h lower transportation costs.

Kansai Paint's China business generates annual sales of about 20 billion yen, or about 6% of te group total. The company says it has a market share of 60% in paint used by Japanese automakers operating in China and has also started to supply other foreign makers with China JVs. Other major suppliers of paint resins in China includ e PPG and BASF.

Tajik ambassador calls for more trade with Pakistan Tajik ambassador asks Pak businessmen to benefit from tax exemptions in his country in Free Economic Zones; Expresses interest for import of surgical and sports goods from Pakistan Tajikistan’s Ambassador Jononov Sherali on Monday called for a proactive approach to explore Tajikistan market that he said had a lot to offer to Pakistani businessmen.

Talking to the Lahore Chamber of Commerce and Industry (LCCI) President Sheikh Muhammad Arshad and Vice President Nasir Saeed at the Lahore Chamber of Commerce and Industry on Monday, the Tajik ambassador invited the Pakistani businessmen to explore trade and investment opportunities available in Tajikistan. He said that tax exemptions were being offered to the foreign investors in Free Economic Zones of Tajikistan. He said that two to five years of tax holiday was being offered to the potential investors keeping in view their level of investment.

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Are green cars at green light?

Emerging countries are slowly opting for smart and sustainable cars

Auto manufacturers have shifted their priorities to not only meet emissions standards, but also to keep up with government policies to improve air quality in each country. Fuel-efficient cars have not yet caught on in developing markets as fast as they have in Western markets but there is a slow, apparent change of car buyers going green globally. Carmudi analyzed millions of listings on the company’s car classifieds website, and the data shows that auto demand worldwide, including in Sri Lanka is shifting towards greener rides.

Carmudi found that countries in the Middle East such as UAE and Qatar are still in love with their SUVs. The number of eco-friendly car listings in the country stand at 5.8% and 1.88% respectively, but green cars are slowly becoming a more attractive option for car buyers.

In Pakistan, green cars have also gained traction in recent years with the number of hybrid cars listed online growing 85 percent in the past two years, alongside a 17.48 percent slump in listings for petrol-fueled cars in the country. This trend goes hand in hand with governmental policies to improve the country’s air quality and cut carbon commissions in the coming decade.

In Sri Lanka, 43.5 percent of cars listed

for sale are eco-friendly cars, and out of those, 93 percent consist of hybrid cars.

The hybrid car market in Sri Lanka is monopolized by the likes of Honda’s Insight Hybrid model and Toyota’s Prius Hybrid Synergy Drive models. Carmudi Sri Lanka also saw growth in the number of electric car listings, which grew four percent in the past 12 months. This growth is at a much larger stage over the last few months as we see a surge in the sales of plug-in electric vehicles such as the Nissan Leaf and the Mitsubishi Outlander PHEV. Despite the apparent shift towards green rides in Asia and Middle East, countries in Africa have yet to jump on the ban dw ago n. Car mudi saw lo w percentages of eco-friendly cars listed for sale on the platform from West African countries such as Senegal (0.79%), Ghana (0.55%), Nigeria (0.37%), and Ivory Coast (0.26%). The slow adaptation can also be seen in East and Central African countries such as Cameroon (0.97%) and Tanzania (0.70%).

So will the emerging markets continue to grow more fond of environmentallyfriendly cars? Carmudi predicts that motorheads in Africa will stick with gasguzzling petrol-powered cars. In the Middle East, the eco-friendly trend will pick up in the coming years as many

federal institutions across the region have begun to adopt electric or hybrid cars while motorists in Asia will most likely switch to greener and more economical rides in the near future.

The Managing Director for Carmudi Sri Lanka, Firaz Markar, had the following remarks regarding the state of the green automotive industry in Sri Lanka: "The Sri Lankan consumer has always been green automotive friendly, largely due to the high cost of fuel as well as favorable regulatory terms bringing down the cost of green vehicles. While hybrid vehicles such as the Toyota Prius and Honda Insight started this surge, over recent months we have seen a dramatic growth in the sales of plug-in electric vehicles such as the Nissan Leaf and Mistubishi Outlander PHEV. Exceptional upfront cost savings, lower running costs, and also certain households moving to solar powered energy are primary factors as we see it.

We are currently well poised to bring down national fossil fuel bills based on current automotive trends. It’s great to see the acceptance of such modern technologies within an emerging market such as ours. These are very exciting times for the automotive future of our country."

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GERMANY TO PROMOTE AUTOMOBILE COMPANIES’ SHARE IN PAKISTANI MARKET Germany has shown great interest in promotion of German automobile products in Pakistani market. Presently, Japanese companies dominate Pakistani automobile industry. However, there is a huge potential for more automobile companies in Pakistan. In this regard German Ambassador Ina Lepel, last month, held a detailed meeting with Federal Minister for Industries and Production Ghulam Murtaza Khan Jatoi and deliberated on various options for promotion of German automobile companies’ share in Pakistani industry.

According to Ministry of Industries and Production, the Minister formally welcomed the ambassador who has been recently appointed in Islamabad and explained the role of the Ministry of Industries and Production in detail to the Ambassador and apprised her of how, through provincial decentralization , the provinces have significant control over their industries.

The automobile industry was also discussed in the meeting and the Ambassador discussed the promotion of German auto companies with the Minister. Industrial Parks were also a topic of discussion as the Minister explained how they are necessary to give companies incentives and tax relaxation for foreign companies who want to set up industries within Pakistan. The Minister said that industries for new technology can be set up anywhere in Pakistan and are not bound to industrial parks. The Minister also stressed how the Ministry of Industries and

Production uses subsidies to make food products more affordable to the massed through the network of stores of The Utility Stores Corporation (USC) of Pakistan. The privatization of Pakistan Steel Mill (PSM) was also talked about and how it is essential for the corporation to get back on its feet. The Minister also informed of the role of the Heavy Mechanical Complex (HMC), T axi la t hat p roduces prod ucts related to the energy sector, defense and railway.

The role of Chinese investment was also questioned by the Ambassador to which the Minister explained how the Chinese are looking into the revamping and upgradation of HMC and PSM. The Ambassador also asked the Minister about the Ministry’s role in skill development and entrepreneurship to which the Minister detailed the workings of Pakistan Industrial Development Corporation (PIDC), National Productivity Organization ( NPO) and Small and Medium Enterprises Development Authority (SMEDA).

The Minister detailed how skill development was an important agenda on the Ministry’s priorities and it uses its organizations to help reduce unemployment and, give opportunities and vocational training to the people of Pakistan. Smeda plays its role by supplementing small and medium entrepreneurs and empowering them to grow through financia l a nd administrative support....

ADB agrees to provide $1.2 billion to Pakistan for infrastructure uplift Major chunk of assistance package will be spent on improving power, transport, agriculture and urban services sectors The Asian Development Bank (ADB) has agreed to provide a $1.2 billion assistance package to Pakistan, the major chunk of which will be spent for improving power, transport, agriculture and urban services sectors, Radio Pakistan reported on last week.

According to the agreement, the bank in its new five year partnership strategy

with Pakistan will provide the amount annually for infrastructure development and institutional reforms.

Apa rt fr om col lab or ating in rehabilitation of power transmission and distribution systems, construction and repair of highways, ADB will also help rehabilitate the Indus Basin Irrigation System and invest in transport

Chinese keen to invest in Pakistan Chinese investors have showed keen interest to enter into joint ventures with their Pakistani counterparts in the fields of solar and coal power generation projects, a statement said on last month.

A two-member Chinese delegation, comprising Asia-Pacific CEO Sun Huoi and Miss Fang Wong from MenShine Fang Wong called on LCCI President Sheikh Muhammad Arshad.

The delegation members said that the Chinese business community values Pakistan highly; therefore, they were always ready to put their money in new ventures in Pakistan.

The delegation members said that they are also planning to step into joint ventures with the businessmen of United Arab Emirates (UAE).

The LCCI president said that China is a time-tested friend and a very important part ne r i n P ak ist an Eco nomi c Development and bilateral trade. projects in urban centres of Sindh, Khyber Pakhtunkhwa and Punjab. The assistance package will expand the outreach of Benazir Income Support Programme (BISP), the poverty reduction initiative started by country’s federal government back in 2008.

About 2.4 million women beneficiaries will be added to the programme with the help of this annual assistance package.

This funding has included 316 loans to improve Pakistan’s infrastructure and services, and to support reforms.

In august this year, the bank approved a five-year $6 billion loan for Pakistan to finance development of the nation’s infrastructure, particularly in energy and transportation sectors, though the actual disbursements of the loan will be linked to Islamabad’s ability to implement energy sector reforms and improve its public finances. Absent among the projects being funded were the $14 billion Diamer-Bhasha dam, for which the ADB had allocated just $15 million in technical assistance.

The loan package, set to run through at least the end of fiscal year 2019, would provide the government with an average of $1 .2 b il li o n each y ear f o r infrastructure development and institutional reforms. ..

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Another story of poor governance, corruption of Sindh Govt During the very initial days, on receiving information and confirming it from more than a dozen conductors and drivers that these CNG buses were handed over to a private businessman, a Reporter contacted the Secretary, Regional Transport Authority, Sindh who very boldly denied the deal.

CNG Green Bus Service started in 2014 from Pakistan Steel township Gulshane-Hadeed to Mere-weather Tower via Shahra-i-Faisal and I.I.Chundrigar Road needs immediate administrative action for the remedy of a large number of the commuters who are frustrated and angry over un-checked gross violations of the rules and very bad attitude of these buses operators.

The fleet of 35 CNG Green buses imported from China is being managed and operated by un-trained and noneducated traditional conductors and

drivers ; with no apparent government checks and authority over them. They are engaged by a businessman who was awarded the contract by Sindh Government within next few days of launch of these glorious and comfortable bus service.

This service was supposed to transport daily a large population of commuters attached to this route especially from distant Bin Qasim town to and from the main city areas, told the passengers who do travel for their jobs and education.

Now, it has turned into a mess because

Paapam urges Sindh, Punjab governments to clarify position Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) urged the provincial governments of Punjab and Sindh to clarify position regarding the tractors schemes, announced in their Finance Bills. PAAPAM Chairman Mumshad Ali, while responding to rumours regarding shelving of tractor scheme in the wake of farmers' package has said that as part of the tractor supply chain they have never been taken into confidence before the launch of such schemes.

There is still room to improve the model of the scheme to match supply and demand. These schemes are always welcomed by the industry, but if modified can double its affect on the agri economy and tractor industry alike, he mentioned. PAAPAM Senior Vice Chairman Mashood Ali Khan also u rg e d t he P un j a b a n d S i n d h governments to take the industry on board before making decisions that have a tremendous affect on the industry.

He further said the schemes should be launched on long-term basis rather than short-term basis, keeping in view the total shortage of farm tractors in the country. He said that schemes should

be based on shortage of tractors /production capacity of the industry, and should aim at maximising the net of the subsidy. In the past, only 5,000 to 10,000 tractors have been subsidised, and more farmers need to benefit from the schemes. The lag between the announcement of the scheme and its actual launch is also detrimental to this bi annual cyclic tractor industry.

The number of tractors announced in the schemes, to be subsidised were 25000 in Punjab and 29000 in Sindh.

The industry geared itself up for this number, but now the rumours are that the scheme is to be scrapped all together.

It is common practice in the past also that the subsidy numbers announced in the budget are exaggerated to get political mileage and later reduced and this affects the industry badly as it has a long and wide supply chain with very local content as high as 95 percent and is left with miss-planned inventory and investment. He urged the Sindh and Punjab governments to talk to the industry to improve the tractor scheme model to multiply its affect on Pakistan's economy...

of poor governance and alleged kickbacks to the concerned authorities of Sindh Government.

Against Rs 10 and Rs 20 fare approved by the government, the passengers are forced to pay Rs 30 and Rs 40 for travelling to the main city areas from Gulsahan-e-Hadeed and other areas of Bin Qasim Town.

The fare lists have never been displayed so far. The Green buses do not maintain timings and the designated stops. These buses also do not complete the route on one pretext or another like most other transporters do ; causing unnecessary delays and embarrassment, said the commuters of this route.

They pointed out that the situation has been deteriorating day by day. For last few days, some conductors did not bother to give tickets. When asked for tickets, instead they started using bad l ang uage an d t hre at eni n g t he commuters.

All this led to scuffles and exchange of hot words between the passengers and these un-bridled conductors supported by their drivers with a powerful transporter on their back.

They have also started loading male passengers in the ladies' compartment and the females who were feeling safe and comfortable while travelling in the CNG Green buses are embarrassed and harassed once again.

About this shocking episode, they narrated that after getting the contract allegedly without open bidding, the contractor fixed the fares of own choice.

After few months, he opted to handover these CNG Green buses imported

by Sindh Government from China to the drivers and conductors under his own formula that they would pay him Rs 2500 for each trip besides bearing fuel expenses and earning their wages.

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First phase of Karachi bus rapid transit system to be launched soon Sindh Governor Dr Ishratul Ibad Khan was informed on last week that work on the first phase of the Bus Rapid Transit System (BRTS) — Green Line and Orange Line — in Karachi would begin next month and be completed within one year.

Dr Ibad, who chaired a meeting at Governor House on transport projects in Karachi, was given a detailed briefing by the chief executive of the Karachi Infrastructure Development Board regarding the Green Line, Orange Line, Yellow Line and Blue Line projects of the BRTS. The official said that the Green Line project — from Surjani Town to M.A. Jinnah Road — would be completed with an estimated cost of Rs16.85 billion to be funded by the federal government.

In order to expedite the implementation of Green Line, the federal government had already released a major portion of the estimated cost, he said, adding that

the provincial government was also trying hard to execute its Orange Line project — from Orangi Town to Nazimabad — in the same time frame.

The governor was told that the Sindh government was extending full cooperation to the Karachi Infrastructure Board so that work on Orange Line could begin at the earliest.

Governor Ibad said that the Green and Orange Line projects would be completed within a year.

He said that seven corridors had been identified under the Karachi Master Plan for introducing the mass transit system.

The governor directed the officials concerned to link the BRTS projects with one another so that the system could work effectively and people could get easy access to a fast-speed transport facility.

He also directed them to ensure removal of all obstacles in the implementation of the transport projects.

He also asked the authorities to take public transporters into confidence regarding the mass transit system so that they could also play their role in an effective manner.

He said the projects were being executed for the welfare of people and the government would not like to see anyone unemployed.

The governor also directed the officials co nce rn ed t o i nc lud e K ar achi Commissioner Shoaib Siddiqui as a member of the Karachi Infrastructure Board to facilitate mutual coordination bet w ee n d if fere nt go v er nmen t departments in completion of the projects.

The meet i ng w as att end ed by Accountant General Ahsan Ali, Additional Chief Secretary Aijaz Shah, fin ance and lo cal go ve rnme nt secretaries, administrator of the Karachi Metropolitan Corporation and other senior officials...

Tractors sale rises 54pc As per the latest auto sales statistics published by Pakistan Automotive Manufacturers Association, tractor sales have started to show signs of respite with 54 per cent monthly rise in its sales to 3,096 units.

However, most of the recovery was seen in MTL sales which improved 75 per cent to 2,320 tractors while AGTL showed modest growth of 710 tractors.

However, 1QFY16 tractor sales remained at 6,745 units, 28 percent lower than the SPLY. According to data, Heavy Commercial Vehicles (HCVs) sales fell by 8 per cent MoM, mainly due to 54 per cent lower Master sales to 38 vehicles and 58

percent less GHNL sales to 30 units. On the flip side, volumes of GHNI and Hino jumped by 33 percent and 6 percent to 133 and 232 units, respectively.

Locally assembled car sales have dipped to 18,424 units in Sep’15 compared to 20,479 units in Aug’15. Experts attributed the 10 percent MoM fall to the reduced number of working days due to Eid holidays. Further, auto sales also start to fall in the first half of a fiscal year, as most of the buyers prefer to buy newer model.

During Sep’15, PSMC sales fell by 12 percent MoM to 11,389 vehicles, mainly because of sharp decline in Ravi (-23 percent to 2,859 units) and Bolan (-10

percent to 3,487 units) sales. Similarly, INDU sales slowed down by 10 percent, where Corolla sales decelerated by 6 percent to 4,672 units while Hilux sales declined by 49 percent to 258 units. On the other side, HCAR sales remained stable at 2,001 cars in Sep’15 compared to 2,002 cars last month.

Similarly, in 1QFY16, car sales have speeded up by 72 percent to the record highest level of 54,812 units, thanks to growing middle class, rising income levels and lower interest rates. During the quarter, Punjab taxi scheme doubled PSMC sales to 33,770 while new Corolla model brought 50 percent jump to the INDU sales to 14,767 cars.

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1100km-long gas pipeline Pakistan, Russia sign IGA Pakistan and Russia on last month si gn ed an I nt er - Go v ern men ta l Agreement (IGA) for construction of 1,100 kilometers-long gas pipeline, costing $2 billion from Karachi to Lahore for transportation of imported Liquefied Natural Gas (LNG). Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi and Russian Energy Minister Alexander Novak signed the agreement. Prime Minister Nawaz Sharif along with other senior government officials of two sides witnessed the agreement signing ceremony.

The pipeline will transport 12.4 billion cubic feet of LNG per annum, of which half would be used to generate 3,600 Megawatts of electricity, while the rest would be supplied to CNG, fertiliser and industrial sectors of Punjab. In order to deal with a severe gas shortage, Pakistan has constructed first LNG terminal at Port Qasim, Karachi, with a capacity to handle up to 600 Million Cubic Feet per Day (MMCFD) of LNG, while another terminal will be completed by 2017 with a capacity to handle 500 MMCFD of LNG. The 1100km-long pipeline will be dedicated for the transportation of LNG from Karachi to Lahore.

The first phase of the project will be

completed by December 2017 and the second phase in 2018, with a total investment of $2 billion. The NorthSouth gas pipeline project would be built

by Russian company RT Global Resources - a part of Russian state corporation Rostec.

Pakistan is facing a serious gas shortage as total demand stands at 8 BCFD against total production of 4 BCFD. The government is managing the gas supply to different sectors through a gas loadmanagement plan, according to which, in winter, gas supply to industrial, fertiliser and CNG outlets remains suspended in Punjab, while in Sindh 3 days-a-week gas is being supplied to industrial and CNG outlets. Punjab province is the largest gas consumers.

It consuming 44 percent of the national gas while in gas production Punjab''s share is only 5 percent.

The All Pakistan CNG Association (APCNGA) while welcoming the move has said the construction of 1100 kilometre pipeline to transport LNG from Karachi to Lahore will prove beginning of the end of energy crisis in Pakistan which has crippled national economy since 2006.

The completion of the pipeline will not only help generation of 3,600MW of

power in Punjab but will also help in making operational the shutdown fertiliser plants, restoration of world''s largest CNG sector, and industrial sectors in Punjab, Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA said.

The agreement would help change the energy landscape of the country which is a great achievement of the government. However, construction on two more LNG termini with 1000bcf capacity is necessary to make it a success, he said. Paracha said that distribution of gas should be improved by laying new pipelines so that the situation could improve. He said that Prime Minister of Petroleum Minister should personally monitor development of the project to ensure unhindered development and timely completion which will revolutionise economy.

The leader of the CNG sector said that all the concerned departments should be cleared of corrupt, incompetent and conspirators while experienced officials of good repute should be posted for the success of project. Gas companies should be directed to minimise increasing transmission and distribution losses which is of vital importance to this landmark initiative, he said.

TAKEN FOR A RIDE OUR TRANSPORTATION APARTHEID For Pakistan’s urban, professional women, finding safe and secure transportation to and from work is a daily struggle. It badly affects the economy and Pakistan’s efforts to become an accommodating place for women’s progress and empowerment.

Public buses are the cheapest transport option, but women walking to bus stops located far from their homes or offices are vulnerable. The women’s section on these buses are cramped and crowded, often overrun by men. And thanks to traffic, what should be short journeys take much longer, rendering the bus neither safe and economical nor reliable.

Then there’s the social factor: women who leave their houses to travel to work on public transport are seen as

“immoral” and fair game for harassers.

While men are able to travel relatively freely on the streets, women have to take extra precautions, such as traveling in groups or ensuring that they don’t come home too late at night in order to avoid censure or worse. In other South Asian countries, women bicycle and drive motorcycles, cars, vans, buses, trucks, and taxis. But in socially conservative Pakistan, Zahida Kazmi is still making headlines for being the first woman to operate a taxi, even though she’s been doing it since the 1980s, necessitated by the death of her husband which made her the family’s only breadwinner.

This transportation apartheid results in “just 2 percent of adult women having bank accounts and only 15-percent

workforce inclusion.”

The vans provide a measure of safety and reliability, but cost Rs. 4,500 per month—with still a fair amount of walking in the heat to common pickup points. The vans also take longer, with journey times doubled or tripled.

The solutions will have to be creative, aimed at changing social mores and using innovative technology. To this end, the three-day Women’s Transport Innovation Challenge and Hackathon last month saw teams competing to come up with “convenient, affordable, and respectable transport” solutions for thousands of women commuters in Islamabad and Rawalpindi.

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International Automotive News - Update

Monthly AutoMark International

Trans-Pacific Partnership Winners Toyota, Japanese Automakers Could Still Use Mostly Chinese Car Parts While Enjoying Reduced Tariffs Under TPP For many companies, labor groups and rights organizations, the Trans-Pacific Partnership deal reached before dawn is a threat shrouded in secrecy. But Japan's automakers, including Toyota Motor Corporation, are probably not among the critics. The industry is one of the clearer winners in a deal that probably will let manufacture U.S.bound cars with parts bought elsewhere in Asia and still enjoy the TPP's tariff reductions. In fact, Toyota and Japanese auto industry groups lobbied heavily on that very issue for years, records show.

The question of "rules of origin" for auto parts had been a stumbling block in discussions on the Trans-Pacific Partnership until the end of September, when Mexican and Canadian negotiators appeared to relent and allow the majority of a vehicle's parts to be sourced from outside the 12 countries that are parties to the regional trade deal. Those negotiators ultimately aimed for 45 percent of auto parts to be bought locally, while Japanese negotiators had sought a 32.5 percent floor for local

parts, Reutersreported. Because the final text of the deal has not been published, the ultimate percentage remains unclear.

But either option would allow for the majority of a vehicle's components to be sourced from outside TPP countries.

If ratified, the TPP would be the largest regional trade deal in hist ory, encompassing 12 countries on four continents and some 40 percent of the global economy. Monday's agreement follows more than five years of negotiations, but it has to be approved by legislators in the countries involved, including the United States, before taking effect.

The deal would eliminate or reduce tariffs and other barriers between countries across "the full spectrum of trade, including goods and services trade and investment," according to a stat ement from U. S. Trade Representative Michael Froman.

In order for goods to benefit from these tariff reductions, the agreement imposes minimums for locally sourced materials, the statement added. "The 12 parties have agreed on a single set of rules of origin that define whether a particular good is 'originating' and therefore

Upcoming Events at Lahore International Expo Centre

eligible to receive TPP preferential tariff benefits," it explained. Those specific rules are laid out in the text of the agreement.

U.S. lawmakers have pushed back against provisions allowing car companies to source a significant percentage of their parts from other nations. Reductions in rule of origin standards in the TPP "would hurt American workers and manufacturers," Sen. Sherrod Brown, D-Ohio, said in a statement Thursday, citing reports of a 45 percent rule of origin for auto parts.

By comparison, the North America Free Trade Agreement requires a vehicle to be manufactured with 62.5 percent regional parts.

Japan in recent years has come under financial pressure to source car parts from China, where suppliers are less expensive and the quality of those parts has improved. In 2013, for instance, the Japanese car company Nissan's vehicles were 15 to 20 percent made with Chinese parts, and it had set its sights on increasing that to 35 percent, Reuters reported.

Continuing to buy more parts from China could help keep costs down for these companies, and the Japanese car companies have pushed hard to preserve their ability to rely on such parts while benefiting from tariff reductions offered in the TPP.

Trans-Pacific Partnership In 2015, the Japan Automobile Manufacturers Association paid lobbyists tens of thousands of dollars "to promote cooperation on U.S.-Japan auto trade issues" and "to prevent the imposition of discriminatory nonmarket mechanisms," lobbying records show.

In 2013, Toyota poured more than $1 million into lobbying that in part aimed to influence TPP negotiations along the same vague lines: "p revent in g imposition of market-distorting trade policies." This year, Toyota Motor Corporation's spending on lobbyists rose to more than $3 million, including $1.7 million on trade matters like the TPP negotiations and preventing "marketdistorting trade policies."

In the 2014 election cycle, Toyota Motor North America contributed $284,500 to federal candidates and parties, 43.6 percent to Democrats and 56.4 percent to Republicans, according to the Center for Responsive Politics.

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Monthly AutoMark International

Automotive News - Update

Cheap automation raises risk of ‘premature deindustrialisation’ Even though Ford and General Motors have some of the world’s most modern factories, Detroit has failed to modernise and produce employment in new industries Historically, technology has shaped the economic trajectories of corporations, cities and even nations.

While the Industrial Revolution made the west rich and created the “great divergence” in incomes between the west and the rest, the adoption of western technology has more recently spread the fortunes of industrialisation to such places as South Korea, Turkey, and China.

Yet this process of rapid economic convergence risks coming to a halt, as labour-saving t echnologies pu t developing and emerging economies at risk of “premature deindustrialisation”.

Over the past 20 years, China has become the “factory of the world” while western economies have seen a decline in manufacturing employment. The growth of such cities as Shenzhen, where the iPhone is assembled, is the inverse of the decline of old US manufacturing centres such as Buffalo, Cleveland and Detroit — now part of the “rust belt”, since they have failed to produce new industries.

Nevertheless, China may be one of the last nations to ride the wave of industrialisat ion to p rosp erit y.

As shown by Dani Rodrik of Harvard University, over the course of the 20th c e n t ur y , p e a k m a n u f a c t u r i n g employment has steadily declined in emerging economies. In Britain, the first country to industrialise, manufacturing employment peaked at 45 per cent before the first world war. By contrast, Mr Rodrik suggests manufacturing employment in Brazil, India and China has already peaked below 15 per cent.

This is in part because manufacturing processes are more automated. China in particular is not only the fastestgrowing market for industrial robotics, it has replaced the US as the biggest market for automation.

In China’s 12th Five Year Plan, workforce automation is a strategic area

the country’s leaders hope will sustain its competitive manufacturing edge.

While China’s push has been driven by rising wages and concerns over a “peakout” of its working-age population, similar trends elsewhere are cause for more concern. Since the 1980s, lowincome countries in sub-Saharan Africa have see n dec line s in the ir manufacturing share, as have middleincome countries in Latin America, making it less likely manufacturing will provide a route for workers seeking to escape poverty.

Automation alone cannot explain this trend; many emerging economies have seen falls in manufacturing output. An alternative, albeit complementary, explanation for the failure of low and middle-income economies to achieve industrialisation comparable to that of the west is also globalisation itself.

While the transport revolution in general, and the container ship in particular, paved the way for emerging eco no mie s t o exp or t c heap er , increasingly sophisticated goods, cou nt r i es wi t h a c omp a rat i v e disadvantage in manufacturing started to import deindustrialisation, as they became more exposed to production costs abroad.

These declining costs are largely driven by technology. For example, although the employment share of manufacturing in the US has fallen sharply, the output share has remained roughly constant over the past 50 years.

Thus, the US remains a competitive manufacturing location, but without producing many new production jobs.

Even in low-cost locations, this will gradually become the case. Estimates

by Citi Research show the payback period for industrial robots in China is now less than two years.

While many key technologies of the 20th century — the telephone, the container ship and the computer — helped

companies co-ordinate cross-border production, shifting production to cheaper locations, developments in robotics and additive manufacturing have incentivised western companies to bring production back to automated factories.

In emerging middle-income countries, as well as low-cost destinations, labour will struggle to compete with ever cheaper technologies. In the absence of industrialisation as a path towards economic development, countries will need to discover new growth models.

Although service-led growth is one option, many low-skill services are today equally automatable. So the best hope for developing and emerging economies is to churn out more highly skilled workers. This is the lesson from the western experience.

Even though Ford and General Motors have some of the world’s most modern factories, Detroit has failed to modernise and produce employment in new industries. By contrast, some older manufacturing cities — New York, Boston and San Francisco — have made the transition to become innovators in services, offering financial and legal services, advertising, data processing and comp ut er syst ems desi gn.

While emerging economies such as China have been able to industrialise by leapfrogging technologies, the challenge for the next generation of emerging economies is that they will have to leapfrog industrialisation itself.

Models of economic development will need to feature more investment in education, faster implementation of new technologies and — most importantly — higher rates of local innovation.

Managing this process is, however, easier said than done.

The writer is co-director of the Oxford Martin programme on technology and employment and Oxford Martin Citi fellow at Oxford university..

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International Automotive Industry - Update

Ford Motor Company intends to Invest $1.8B Into R&D in China Till 2020 Ford Motor Co. intends to launch 20 models and invest $1.8 billion into research and development in China by the end of 2020. The moves are part of a five-year program that Mark Fields, President and CEO of Ford declared at an innovation-themed meeting. The program came as a succession to the automaker’s 1515 plan. Started in 2011, the plan included bringing 15 models to the Chinese market by the end of 2015, thus the plan’s name. Fields stated that the plan was completed with very successful results and met or surpassed every one of their objectives. Fields added they one Ford plan, products with excellence and innovation will be the three pillars of Ford’s development during the coming five years. He stated the firm will launch two new-energy vehicles the C-Max Energi and the Mondeo hybrid to the Chinese market from next year and increase the number of models accessible in China with its EcoBoost engines. The firm is now offering more efficient and powerful engines in China, at over 80% of its vehicles. John Lawler, president and CEO of Ford China stated that the firm will continue to raise the percentage of its vehicles equipped with Eco-Boost engines and launch other models with the latest technologies into the Chinese market.

Toyota To Sell 30,000 Hydrogen Fuel Cell Cars Annually By 2020

Toyota revealed more about its plans for hydrogen fuel cell vehicles.

The flagship Mirai, which is “Flying Off Virtual Shelf,” according to the manufacturer, should reach over 30,000 sales annually by 2020.

So let’s sum this up (year/Toyota’s expected sales of Mirai): • 2015: 700 • 2016: 2,000 • 2017: 3,000 • 2018: ?

• 2019: ?

• 2020: >30,000 Because sales in Japan are expected to be 1,000 units a month, the island nation could be the largest market for Mirai.

The only potential roadblock we see to this expected sales level (besides demand) is that currently the Mirai is built ‘supercar-style’, like the $400,000 Lexus LFA before it at Toyota’s Motomachi factory – in other words, completely by hand.

Yamaha sports car concept to debut at Tokyo Motor Show Motorcycle manufacturer Yamaha has revealed it will show a sleek sports car design concept at the Tokyo Motor Show 2015 next week. The car will be part of its huge 20-model display.

Said to be “inspired by motorcycles and express(ing) the unique style of Yamaha”, the firm has yet to release official details on the new sports car concept, but has teased us with an image.

This shows a compact two-seat sports car with a light, glassy cockpit, long nose and compact rear.

Proportions appear to suggest a midengine design and the multi-stack rear wing could indicate novel aerodynamic features.

Yamaha’s hint suggests the sports car concept could be powered by a highrevving motorcycle engine, of which the firm has no shortage of options.

However, the sports car could also be derived from the Yamaha Motiv city car, jointly developed by Gordon Murray Design and revealed in 2013.

This offers a choice of all-electric drive or range-extender petrol and electric power.

Monthly AutoMark

Honda to launch self-driving car by 2020 H on da sai d i t wo uld put a commercialised self-driving car on the road by 2020, challenging rivals Toyota and Nissan which are also betting on the future of autonomous vehicles.

The announcement, ahead of the Tokyo Motor Show next week, comes as Japan's auto giants step on the accelerator in a bid to race past overseas competitors on the next-generation technology.

Google has been testing self-driving cars in Silicon Valley, as have US-based Tesla and General Motors, while Nissan has vowed to put an automated car on Japan's highways as soon as 2016.

Earlier this month, Toyota unveiled a vehicle that can drive itself along a highway, with plans for a 2020 rollout.

The car, a modified Lexus GS, uses sophisticated sensors to navigate roads, merge lanes and overtake other vehicles.

In its current incarnation, the car only switches to fully automated mode once it reaches the less frenetic confines of a hi ghway and p asses a senso r.

Toyota to Recall 6.5 Million Vehicles Globally Recall is Toyota’s fourth since 2009 due to faulty power-window switches Toyota Motor Corp. is recalling 6.5 million vehicles world-wide over powerwindow switches at risk of fire, the auto maker said Wednesday, the latest in a series of similar recalls involving around 14 million cars.

This is the fourth time since 2009 that Toyota is recalling vehicles due to faulty power-window switches, it said. All the problematic switches have been supplied to Toyota by Tokai Rika Co., the two companies said.

Tokai Rika will book a special loss of ¥14.5 billion yen ($121 million) to deal with the latest recall, it said Wednesday.

The number of recalls has been growing, in part because some auto makers are more proactive in recalling vehicles following a series of industrywide scandals, and partly because companies use more common components among

models. That can lead auto makers to recall a relatively big number of vehicles when problems are found in a part.

The latest move follows recalls by Toyota and other car makers involving tens of millions of vehicles carrying potentially explosive air bags made by Takata Corp.

In the vehicles recalled Wednesday, a component inside the power-window switch on the driver’s side didn’t have enough grease applied to it. That could result in the switch overheating and melting, possibly leading to fire, Toyota said.

The problematic switches will be either fixed or replaced in less than an hour, it added.

In the past, recalls took place because the switches had too much grease applied, which put cars at risk of fire, Toyota said. This time, the switches had too little grease, which could also lead to fire.

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Monthly AutoMark International

China Automotive - Review

An Inflection Point in China Automobiles for year 2015 he years following China’s accession into the World Trade Organization (WTO) in late 2001 have marked an incredible period of growth in China’s auto industry. When China joined WTO at the beginning of this century, vehicle sales were just over two million units. Fifteen years later, the industry is more than 10 times larger, with more than 23 million trucks busses and passenger cars being sold in the country every year.

During this golden age in China’s auto industry, Chinese consumers have been relatively price insensitive and have been happy to pay the prices charged by the international assemblers, despite the fact that these prices in many cases have been higher than those charged in Europe, the United States, and Japan.

Given the favorable market dynamics, the international car companies and their Chinese partners have prospered, and China has become the single largest source of profits for many of the industry’s largest auto companies.

In 2015, this period of prosperity may have come to an end. A slowing economy, uncertainty caused by a precipitous drop in the stock market, increased competition and license plate restrictions in a growing number of Chinese cities have caused consumers to close their pocketbooks. Meanwhile, truck sales have been hurt by sluggish construction and industrial markets.

Through September, China’s auto

T

industry eked out a slight 0.31 percent in unit sales, a far cry from the doubledigit growth of just a few years ago.

While sales of passenger cars managed to grow by 2.8 percent for the first nine months, these gains were more than offset by a 12 percent decline in commercial vehicle sales.

The gloomy story told by the overall numbers, however, does not begin to describe the difficulties faced by the assemblers in t od ay ’s market .

Responding to increasingly priceconscious consumers, the car companies began cutting car prices earlier this year, resulting in overall price declines of app roximately 2.7 percent and deteriorating profitability. Rather than spurring demand, however, these price cuts have only pushed sales further into the future. Many savvy Chinese consumers have decided to hold off car purchases and are waiting to see how much further prices might fall.

If there is a bright spot in this year’s auto market, it is the continued strong performance of Sports Utility Vehicles (SUVs). While sales of sedans declined by 8.8 percent during the first nine months of the year, sales of SUVs increased by a whopping 47 percent.

Sales of SUVs and Crossovers (vehicles that are built on a car platform but that have many of the features of an SUV) now account for 34 percent of the China passenger car market, compared to 26 percent in the United States.

While this year’s car market has been trying for all assemblers, it has been

particularly difficult for the international brands. For the first time, sales of passenger cars produced by foreignfunded joint ventures declined, falling by just over one percent during the year.

Also for the first time, the joint ventures have not been able to sell all the cars they can make. Capacity utilization, which has never fallen below 100 percent for the international car companies in China, fell to 92 percent this year. With many China-based assemblers — foreign-funded and local companies alike — increasing their production capacities, plant utilization is likely to become an even larger problem in the future. Sanford C. Bernstein & Co., LLC, a well-regarded research firm, predicts that overall capacity utilization in China’s auto industry may fall from 81.6 percent in 2014 to 68.6 percent by 2017.

If there are any winners in the current market, it’s the local car companies.

While the locals continue to face profitability issues, they have seen their volumes grow by over 14 percent in 2015 on the back of strong SUV sales. Playing to the increasing focus on affordability

by Chinese consumers, the local car companies have launched a line of budget SUVs that have enabled them to double their SUV sales. As a result, the local brands have picked up 3.55 market share points this year vis-a-vis the international brands, and now account for over 41 percent of China’s passenger car market.

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International Automotive Industry - Update

Monthly AutoMark

BMW, Honda, Yamaha to Jointly Work On Connected Motorcycles, With Focus On Safety BMW, Honda and Yamaha have agreed t o e n ha n ce an d p ro m ot e t he Cooperative-Intelligent Transportation Systems (C-ITS) for powered twowheelers. The purpose of the system is t o i nt egrat e safety t echnolo gy mechanisms for motorcycles and scooters.

The pooled efforts of the three vehicle makers are expected to lead to increased road safety.

T he p art nership was offici al ly Karl Viktor Schaller of BMW motorrad, announced on Oct. 6 at the ITS World Tetsuo Suzuki of Honda Motor Co., Congress in Bordeaux, France. The event Ltd., and Takaaki Kimura of was under the patronage of the Yamaha Motor Co., Ltd. European Association of Motorcycle Manufacturers (ACEM).

Honda unveils three new Honda, Yamaha and BMW agreed to concept motorcycles ahead establish the Connected Motorcycle of 44th Tokyo Motor Show Consortium with a series of objectives.

Only weeks from the Tokyo Motor Show, The first important deadline is set four the Japanese manufacturer has unveiled years in the future. The C-ITS' main a number of attractive new concept purpose is to facilitate communication motorcycles that include a light and systems integration in the vehicles. This sporty two-wheel and a spectacular three-wheel.

The "Light Weight Super Sports Concept" has been introduced as the prototype for the brand's future More than three decades after it started generation of sporty motorbikes with operations, Maruti is all set to export a an aggressive esthetic and feather-light `Made in India' vehicle to Japan, which weight. However, there's no indication will be sold by its parent Suzuki. Japan's yet from Honda on the engine type or SuzukiBSE 0.52 %, which controls 56% stake in Maruti, has decided to make performance.

Honda is also presenting a small electric India a global manufacturing hub for its scooter, the EV-Cube Concept, made to upcoming premium compact car look decidedly retro, in line with the `Baleno', which will be exported to over spirit of the brand's older productions. 100 countries, including the Western The battery has been placed as far down European nations. as possible in order to lower the scooter's Baleno will be Maruti Suzuki's first center of gravity, guaranteeing the best attempt in the premium compact segment (it will be positioned above the balance possible.

On the Honda stand, the Neowing will `Swift' hatchback) and will make a be unmissable. The futuristic three- debut in India on October 26. It was wheeler should provoke the same on- unveiled at the Frankfurt Motor Show in September. Baleno will compete the-road sensations as a powerful mainly with Hyundai's Elite i20 and motorcycle in sharp turns, all while Honda's Jazz and will have a 1.2litre remaining extremely stable at low petrol engine. speeds. The hybrid scooter will be "Baleno has been developed for the equipped with a four-cylinder engine global markets and India will be the pai red with an elect ric mot or. exclusive manufacturing hub for the The Japanese brand will officially reveal car," R S Kalsi, executive director the production-ready version of its long- (marketing and sales) at Maruti Suzuki, awaited mass-market hydrogen-fuel cell told TOI here. vehicle at the Tokyo Motor Show, a This will be the first instance of Maruti major rendez- vous f or car and - which contributes 40% to Suzuki's motorcycle enthusiasts... global sales volume and onethird to its

will generate a shared information network, offering traffic participants all the necessary info to make proper decisions concerning desired routes.

Even if all three vehicle producers d a bb le d in co nn e ct e d v e hi cl e innovations, the ITS systems for cars would still be difficult to transplant to motorcycles. BMW cooperated with simTD, while Honda and Yamaha participated in Drive C2X, but the results still pointed in the same direction: motorcycles need a different set of smart tools.

"We came to realize that the specific requirements of motorcycles are beyond the scope of this consortium, however.

The next logical step is to enter into a cooperation dedicated solely to the challenges relating to powered twowheelers," Takaaki Kimura, representative director of Yamaha Motor Co. Ltd., said.

India to be global manufacturing hub for new Maruti Baleno: Suzuki revenues -supplying a car to its parent for and manufacturing teams of the company see this as a "big achievement".

"It is a proud moment for us. A vehicle made at our Manesa r factory will be sold in Japan," they said.

Apart from Japan, other countries where the Baleno will be sold include, Italy , France, Germany , Netherlands, Belgium, Denmark and Spain. In South America, it will be sold in Chile, Pa raguay and Colombia.

After S-Cross, Baleno will be the second car to be sold through Maruti's premium retail network `Nexa'.

Baleno will be manufactured on a new platform by Suzuki's engineers and Kalsi said Maruti's engineering and R&D teams have been involved in the model's development. "It will be a flagship model for us, and we have made efforts to load the car with essential safety and technological features that will make i t stand out in comp arison to competition."

Kalsi said the Nexa retail network has been shaping up strongly , and the company will have 80 showrooms under the new format by the time the Baleno drives in...

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Car / Light Vehicle Price List

SUZUKI Model Model

WAGON-R VX 1000cc Euro II WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc CNG SUZUKI SWIFT 1.3L DX SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS EFI VXR Euro II CULTUS EFI VXR CNG LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) BOLAN VAN VX 800cc E2 BOLAN VAN VX 800ccm (M)E2 SUZUKI VAN CARGO Euro II RAVI PICK-UP STD 800cc E2 RAVI PICK-UP STD 800cc (M) E2

APV 1.5L GLX MT (Petrol)

Factory Fitted CNG Cars

Price Price Rs. 919,000 Rs. 1074,000 Rs. 1114,000 Rs. 635,000 Rs. 700,000 Rs. 758,000 Rs. 1,321,000 Rs. 1,382,000 Rs. 1,518,000 Rs. 1,059,000 Rs. 1,134,000 Rs. 1,465,000 Rs. 1,544,000 Rs. 695,000 Rs. 700,000 Rs. 666,000 Rs. 637,000 Rs. 642,000 Rs. 2,418,000

(Ex-Factory Price)

Mehran VX Rs. 695,000

Caltus VXR Rs. 1,109,000

TOYOTA COROLLA Model XLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 A/T 1299cc Petrol GLI VVT-i 1299cc LE ALTIS 1.6L Dual VVT-i M/T ALTIS 1.8L Dual VVT-i MT GRANDE 1.8L S.R. M/T GRANDE 1.8L S.R. A/T CVT-i FORTUNER 2.7L A/T Petrol

HONDA Model Honda Aspire Manual 1.3L Honda Aspire Prosmatec 1.3L Honda City Manual 1300cc Honda City Prosmatec 1300cc HYUNDAI Honda Civic VTI Manual 1800cc Honda Civic VTI Manual SR (Oriel) Honda Civic VTI Prosmatec 1800cc Honda Civic VTI Prosmatec SR (Oriel) Honda CR-Z Sports Hybird Manual Honda CR-Z Sports Hybird Automatic

Price Rs. 1,652,000 Rs. 1,794,000 Rs. 1,522,500 Rs. 1,794,000 Rs. 2,035,000 Rs. 2,267,000 Rs. 2,156,000 Rs. 2,388,000 Rs. 3,286,000 Rs. 3,366,000

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

Price 1,627,500 1,752,500 1,827,500 1,712,500 1,952,500 2,027,500 2,152,500 2,302,500 5,748,500

Hilux Pickup 4x2 sc Model

Price

Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD

Rs. 1,859,000

Hilux Pickup 4x4 E Model

Price

Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,129,500

AL-HAJ FAW MOTORS Price

Model

Vigo Champ-V MT Rs. 3,453,500 FAW Carrier 1000cc (WHITE ,BLACK,STRONG BLUE & SILVER) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c Vigo Champ-G AT Rs. 3,653,500 Sirius S80 1300cc (WHITE ,BLACK,STRONG BLUE & SILVER) Sirius Grand 1500cc

Monthly AutoMark Magazine - International

Rs. Rs. Rs. Rs. Rs.

724,000 824,000 875,000 1705,000 1885,000

Price updated Oct- 2015

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ No. 1.

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Product & Model Name Crown CR-70 Hero RF-70 Model 2015 Hero Plus 90, 90cc Honda CD-70 Honda CD Dream Hi-Speed SR-70 Ravi Premium R1 Road Prince bullet Road Prince 70cc United US 70 United Extreme 70

Retail Price Rs. 42,000/= Rs. 46,000/= Rs. 48,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,000/= Rs. 46,950/= Rs. 45,000/= Rs. 39,000/= Rs. 42,000/= Rs. 44,500/=

125/150 cc Motorcycle No. 1.

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Brand & Model Name Crown CR-125 Super Star SS-125 Super Star SS-125 DLX Honda CG-125 std Euro II Honda CG-125 DX Hero Prince 125 Ravi Piaggio Storm 125 United US-125 Euro 2 Yamaha YBR-125cc

Retail Price Rs. 65,000/= Rs. 59,000/= Rs. 67,000/= Rs. 102,900/= Rs. 124,000/= Rs. 96,000/= Rs. 112,000/= Rs. 69,500/= Rs. 129,400/= Road Prince Twister 125cc Rs. 108,000/= Road Prince WEGO 150cc Rs. 180,000/=

Suzuki Motorcycle

Sr./ No. 9.

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Product & Model Name Ravi Hamsafar-70 Sitara GT-70 Super Star SS-70 Super Power SP-70 Super Power Delux Unique UD-70 Bionic AS-70

Retail Price Rs. 45,450/= Rs. 40,000/= Rs. 44,000/= Rs. 44,700/= Rs. 48,200/= Rs. 44,000/= Rs. 44,500/=

100cc Motorcycle No. 1.

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7.

8.

Brand &Model Name Crown CR-100 Hero Splander Model 2015 Honda Pridor Super Star SS-100 Super Power SP-100 Road Price Jackpot 110cc United US-100 Euro 2 United Regular

Retail Price Rs. 52,000/= Rs. 56,000/= Rs. 86,000/= Rs. 57,000/= Rs. 60,000/= Rs. 44,000/= Rs. 49,500/= Rs. 48,500/=

Suzuki Motorcycle Sr./ No. 1.

2.

3.

4.

5.

6.

Retail Price

Product & Model Name SD110 Sprinter ECO SD110 Sprinter ECO Del

SD110 Raider GS-150 Euro-II GD 110 Euro-II GD 110s Euro-II

Rs. 101,400/= Rs. 88,400/= Rs. 101,400/= Rs. 128,500/= Rs. 114,000/= Rs. 126,000/=

(Heavy Bikes) Sr./ No. 1.

2.

3.

4.

Product & Model Name Inazuma GW 250 Intruder M800 Hayasuba GSX1300R Bandit GSF650SA

Retail Price Rs. 725,000/= Rs. 1,700,000/= Rs. 2,600,000/= Rs. 1,550,000/= Price update: Oct-2015

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Exclusive Article by Talal Hussain Malik

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Great World Wars and the Motorcycle Industry

Oblivious of its humble beginning motorcycling is loved by many and envied by others. Evolving from the steam-powered bicycles of the 1860s to the Marine Turbine Technologies’ Y2k of the present day, motorcycles have seen revolutionary changes in terms of technology, design, acceleration, road grip and what not. The two-wheel industry has seen the ups and downs of the business too. The two great world wars shook the whole world as much as it played havoc on the world economy.

Business was shut down, hundreds of thousands left jobless and the prevailing

Print Media Partner

hunger further added to their misery.

Like other business, the motorcycle manufacturing was also adversely hit by the wars, a lot of pre war companies never returned to business and no one even knows their names today. Had there been no war, we might have had some renowned motorcycle manufacturers from the past still in business with their outclass products.

FN Four was one of the earliest of motorcycle manufacturers that started business in 1904. Although the Belgian company’s product was not much of a

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Monthly AutoMark International success but during the First World War the occupied factory produced bikes for the Nazi army. After the war its popularity faded and no more FN was ever produced again. Rudge Ulster was known for its four valve single cylinder engines and the bike also had race victories to its credit but still the company could not stand the impacts of the war. Brough Superior’s SS100 was perhaps the most glamorous of bikes from the pre Second World War time and the bike was so smooth and comfortable that the company called it Rolls Royce of motorcycles. Brough production stopped with the start of Second World War and never resumed.

Companies like Excelsior, Crocker and Indian enjoyed good sales during their time but could not stand the Second World War and their business was wrapped.

The wars didn’t just cause an end to the motorcycle manufacturing business, interestingly it made some companies move to the motorcycle manufacturing business. BMW started its business as an aircraft engine manufacturer before the First World War. One of its first innovations was to devise a fuel system that enabled the aircraft to go higher than any other aircraft of the time, this helped Germany a lot in the First World War. However, the end of the war seemed to have announced the end of BMW too as BMW was not allowed to produce aircraft engine any more. This is when BMW took a radical step and decided to make motorcycles; the same engineer who designed aircraft engines was now designing motorcycle engine and the very first product, the R32 was far better than any other machine on two wheels.

Ducati’s history begins in 1926 when

two brothers decided to start a business.

They started a small factory to make electronic equipments including radio.

In 1935 Ducati started working on a new factory. As the World War II began, Germany invaded Italy and took over the Ducati Company forcing them to make radio for the army, this made the Ducati factory a target for the US army and in October 1944 air raid by the USA leveled the Ducati factory. It was then that to survive as a company Ducati brothers took a revolutionary decision; a decision that would change the course of Ducati factory forever and hence D u c a t i s t a r t e d ma ki n g ch e ap motorcycles. The initial models were bicycles fitted with a small engine but with time there were advancement in technology and design.

Japan’s big four, i.e., Honda, Yamaha, Suzuki and Kawasaki rule the world motorcycle market in terms of sale and manufacturing. No one knew that Japan could do a wonder in the auto industry.

The atomic attack at Hiroshima and Nagasaki that destroyed everything at the fateful cities, the vast destruction caused by the war and the sanctions imposed by the USA made Japan realize that it had to stand o its own feet to survive and indirectly Japanese motorcycle industry also owes it to the war. The big four has a major contribution to the world motorcycle market; Japanese technology and design took motorcycling to new heights of speed, comfort and style. The two world wars ended with all the havoc they created but the war of excellence and perfection for the motorcycling giants is far from over and it sees a new beginning every year.

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Company Profile

Qingdao Choho Industrial Co., Ltd

CHOHO FINE BLANKING SPROCKETS KIT AVAILABLE NOW

Qingdao Choho Industrial Co. Ltd.is a hi gh- end t echno logy l ead er of motorcycle chain, and services for global customers relying on advanced equipments and innovative products.

Qingdao Choho was found in 1987.

During last 20 years, it has been developing at a high speed and healthy way. Now, Choho Company has become a state-level high-technology enterprise, a leader of automobile chain, and one of the biggest vehicle chain manufacturing basements in the world.

Choho Company supplies OEM service for more than 50 enterprises including Honda, Suzuki, Yamaha, Geely, Jiangling Ford, Piaggio, Fawetc.

Agricultural chains cooperate with John Deere, Agco, Claas, New Holland, GDR, Lovol, Jinyee, Juming, Kubota etc.

With the mission of supplying highquality chain for the lifetime same as vehicle’s for global automobile vehicle industry, Choho set up a strong R&D team with the capacity from design calculation and overall arrangement to dynamic simulation and test verification.

In cooperation with Jilin University, Choho built up Chinese first automobile engine chain system research institute.

In 2010, the Chinese first high-quality silent chain was born and achieved

mass-production in Choho. The technological performance was on top 3 in the world, which replaced the import and broke the international monopoly.

Now, Choho’s products have reached the international advanced level. Choho undertook a number of major national technology research projects, amended almost 20 national or industry standards, obtained 20 national patents, leading the industry with technological

progress.

Taking“Transmission of Power, Bearing Trust” as own duty and “king goat culture” as the core, CHOHO has trained a strong team through the adoption of a series of tools, such like morning meeting, log management, literacy project, teacher culture, champion culture as well as promise culture etc.

The high level is of good cohesion, the middle level is of high execution while the basic level is of fighting force.

This excellent team takes the glorious mission, depend on “focus, lean and special” strategic positioning and highefficiency innovation mechanism, and manufacture the most valuable brand, using technology to lead the industry development, provide products of highquality for global customers.

Currently, Choho and the company leading products have reached the international advanced level, take a number of major national research projects and revisions made nearly 20 national or industry standards, won 30 national patents, the industry's technological progress has played a leading and guiding role.

In year 2012, had set up more than 1600 dealers all over the world. Motorcycle engine chain for Wuyang-Honda, Sundiro-Honda and so on, more than 50 companies at home and abroad.

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Monthly AutoMark International Serving the global customers with ad v an ced t ec hn ol og y, C HO H O Company is willing to work together with global resources to contribute to the future world!

Qingdao Choho Industrial Co.Ltd. is a large manufacturer specializing in chains.It is a member of National Technology Committee for Standardization of Chain Transmission industry. Choho brand chains have been sold to Japan, Europe, America and South-East Asia overseas and 30 domestic provinces. The company has developed into an important manufacturing chains base in Asia.

Qingdao Choho adopts a strict management mode derived from Japan.

The management sy stem f rom production to sales is all under the standards which are carried out in every procedure. A competitive environment makes the best fit of the resources under a standardized quality control system.

ISO9002 Quality System was certified in 1999.

Qingdao Choho adopts the advanced Japanese design and manufacturing Technology. The pressure and wearing status analyzed by computer,so that precise configuration and parts dimension assure the chains under the best situation of pressure and antiwearing. The advanced technologies which consist of ball extruding, shotpeening, carbonitriding for pins, chain phosphatizing positioning assembling of bushing, pre-stressing, running in machines and twisting correction insure the chains with high performance and longer life.

In China local market, Qingdao Choho Industrial Co. Ltd. is one of the best competitive companies, with five famous brands, complete sales net reaching every county, OEM services for more than 50 motorcycle factories. These factors insure Choho Company one of the fastest increasing enterprises in

Chinese market, and also coming up top in the occupation rate of market.

Fully complying with the international conventions and requiring as the i n t e r na t i o n al s t an d a r d C ho h o Company’s behavior is best in the international cooperation. In 2003, Choho passed ISO9001 certification by strict Norway DNV. Facing the future, they are confident.

Now, a new factory is being built in Pingdu Developing Zone covering 150 acres.

Q i ng d ao Ch oho has ad v an ced manufacture equipments such as

Japanese high speed punching machine, continuous mesh belt heat treatment furnace, high accurate cutter, automatic chain assembling line and supersonic wave cleaning machine and inspection instruments such as metallographic test machine, chemical analysis machine, chain length, tensile and hardness test machine, fatigue test machine, spark test, twist test and push off force test equipments. The equipments let their products enjoy stable and reliable quality under the condition of large quantity production...

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Monthly AutoMark International

Automotive Sector - Update

Tokyo Motor Show to highlight 'smart' green cars The Tokyo Motor Show, opening to the public Oct. 30 at Tokyo Big Sight convention hall, will be packed with futuristic eye-catching vehicles that drive themselves, offer online information in dazzling ways and are so green they are zero-emissions. Taking part with their latest offerings are 160 companies, including automakers, suppliers and motorcycle manufacturers from around the world, but the biggest stars of the Tokyo show are usually the Japanese.

There will be 42 “world premiere” vehicles, being unveiled for the first time.

FUEL CELL RIVALRY Honda Motor Co. is gearing up to challenge Toyota Motor Corp.‘s Mirai fuel cell vehicle, which is already on sale, with its own fuel cell car, whose name is set to be announced at the show. It is promised for the Japanese market by the end of March 2016, and set for the U.S. market after that. Fuel cells are hot lately because they have zero emissions, running on the energy created when hydrogen stored in a fuel tank combines with oxygen in the air, and only spits out water. But it is a relatively expensive technology.

The Mirai went on sale in the U.S. this month for $57,500 and Toyota plans to sell more than 3,000 Mirai cars in the U.S. by the end of 2017. Mirai, which means “future,” went on sale in Japan in December for 6.7 million yen ($56,000). In both places, it qualifies for green rebates. Toyota has received 1,500 orders for the Mirai in Japan. The key feature of the new Honda fuel cell is that the fuel stack is smaller and can fit under the hood where the gas engine usually is, instead of in the bottom, under the seats. This allows more cabin room, making Honda’s fuel cell the first model, planned f or commercial production, to seat three people in the back. It travels more than 700 kilometers (430 miles) on a full tank, beating Mirai’s 500 kilometers (310 miles). Toyota is also planning to show a revamped fuel cell, although that’s a

concept model without too many details.

SCREENS EVERYWHERE

The Japanese auto industry is worried how young people here are falling out of love with the car, and appear to be more interested in cellphones, literally spending most of their money on mobile services. Nissan Motor Co.‘s Teatro for Dayz concept car is designed with that challenge in mind. The entire inside of the car works like a computer screen, where passengers, even drivers, thanks to self-driving technology, can engage in social media, check email and surf the Internet. Executive Design Director Satoshi Tai says car design usually accentuates power, quality and speed.

But these values do not resonate with younger Japanese. “If anything, such car traits just call to mind old-fashioned technology that bears little relevance to their lives,” he said.

TINY ROBOT

Toyota is showing a simplified and smaller version of the Kirobo robot, a t alki ng humanoi d desi gned by Tomotaka Takahashi, which went into space and returned last year. Kirobo Mini, at 10 centimeters (4 inches) when seated, fits on a person’s palm. It can’t do any heavy lifting, but it’s designed to be a mascot-like companion, raising both its arms in a greeting when it detects an approaching smiling face.

Toyota has no immediate sales plans but hopes adding a cute robot will make driving more fun. It only speaks Japanese. Toyota cooperated on the Kirobo space project, working mainly on its voice recognition capabilities, along with the University of Tokyo, JAXA or Japan’s equivalent of NASA and other robotics experts. Toyota has shown robots in the past, including one that plays the trumpet, another that plays the violin, as well as a robot that works as a guide in a Toyota showroom.

Honda’s famous walking talking humanoid Asimo is not set to be a major star at its booth this year.

MECHANICAL BEAUTY Toyota is showing the fantasmic toy-like Kikai, which means “machine” in Japanese. The three-seater concept model that shows the parts of a car usually hidden from view, such as the fuel tank, exhaust pipes and the swiftly moving road underneath. Toyota engineers say the model, with no immediate plans for commercial production, emphasizes the idea of cr af t sma ns hi p , si mp l i ci t y a nd movement in a machine. “Monozukuri,” or the concept of “making things,” has long been idealized in Japan. Kikai looks like a cartoonish hodgepodge of parts, defying typical ideas of what a car should look like. “By removing the concealment of sheet metal, the concept expresses the intricate beauty of functional machines and reminds us of the pleasure of tactile contact with the material world,” Toyota said.

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Corporate Event - Press Release

Monthly AutoMark International

Crown Group celebrated its grand prize distribution ceremony for its Dynamic Scheme Winners of Karachi Crown Group (CRLF) celebrated its Dynamic Scheme 2014-15 prize distribution ceremony for Karachi winners at a local hotel in Karachi. The ceremony was organized by eminent auto parts and motorcycle manufacturer Crown Group. Along with the winners, whole CRLF family and Dignitaries were also present to attend this grand ceremony.

In this mega event the prize distribution for Dynamic Scheme winners was conducted by Dignitaries from business community, Mr. Javed Iqbal (Former Collector Customs), Mr. Kaukab Iqbal (Chairman Consumer Association of Pakistan), Mr. Farooq Dhedhi (President Rotary Club) and Mr. Kashif Qaseem (Director Crown Group).

In the ceremony, Mr. Farhan Hanif, CEO Crown Group in his speech appreciated the dedication and contribution of Dynamic Scheme customers because without their interest and cooperation the scheme would not reach to its success. With this he shared that CRLF bonding with its customers will become stronger and reliable and CRLF business will grow more with the passage of time.

He also highlighted the steady success of Crown Group to the participants. He added we are continuously improving our strategies for betterment of business community along with customers. He also shared the dedication with which Crown Group is serving Pakistan’s

economy by creating suf ficient emp loyment op port uni ti es and promoting the local automotive industry internationally. Furthermore, he highly appreciated the hard work of entire Crown Group team and all the people related to it, without whom this milestone wouldn’t be possible. He presented award to the winners of Dynamic Scheme for their outstanding performance.

On concluding the ceremony, CEO Crown Group distributed car and motorcycles among the qualifying Dealers.

Issued By: Crown Group of Companies

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2016 Honda Civic

Monthly AutoMark International

New video spotted, shows inside and outside of upcoming car Lastly, When looking at upcoming vehicles, it is also important to check out if it comes with safety features and this model of the Honda Civic is said to come with a lane departure assist and also a rear view camera. The latter feature, as VR reports, aids the driver with parking which then makes the process much easier, not to mention safer for not only for the vehicle but also the people inside and outside

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Automotive Sector - Update

Monthly AutoMark International

Lahore's brave social entrepreneurs have launched the Pink Rickshaw initiative Porsche Pakistan for the first time held a test drive event in Faisalabad on 11th and 12th October. The cars on display were Cayenne SE Hybrid, Panamera SE Hybrid, Cayenne GTS and the Boxster. The Porsche Networking Lounge was set up at Serena Hotel and the event was attended by a large number of invited guests and walk in customers.

Shall Ferrari display at Dubai Mall, UEA

People look over a 2015 Honda Fit vehicle on display at the Washington Auto show, Friday Jan 30, 2015, in Washington. Honda announce Thursday Oct 1, 2015 that they are recalling 143,000 Civic and Fit vehicles in the U.S. to fix a software problem that could cause the front wheel to lock up

Mr. Zia Ullah Choudry, Director Marketing & Sales (UNITED) Received TROPHY from Mr. Khalid Maqbool (Ex. Governor Punjab) Event Sponsored by "UNITED", 24th Corp Commander Annual Golf Tournament, Garrison Golf Club Lahore.

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Exclusve Review by Shahzad Tabish

Monthly AutoMark International

Transfer Oriented Training of Trainers Program in Germany As we know for an automobile lover, Germany is an absolute heaven. We visited certain facilities and events in Germany, no Automobile enthusiast would like to miss. First of these were the Autostadt which is a facility run by VW group demonstrating all their brands with representation of their top car models Visionaries, Innovators, Pioneers, Creative are the usual words that come to our minds when we imagine the German nation. As a part of Transfer oriented training of Trainers program, I was lucky enough to explore these facts and gain firsthand experience of German technology precisely in the field where the German Engineering excellence t ou ches the marv el ski es, i. e.

Automobiles.

The Transfer Oriented Training (ToT) program was designed to Train the Trainers of different vocational institutes & industries so that the apprentices and trainees who join the industries and vocational schools benefit from the experience of trainers. The training program constituted of many different fields, inclusive of Metal machining, F ab r i c at i o n , A u t o ma t i on , C ar Mechatronics & Installation technology.

Different individuals were nominated and then evaluated for their competence & orientation for training and then final selection was made for the 6 weeks training program. I was one of the fortunate individuals who were selected for the Automotive Mechatronics training amongst other industry professionals from BMW, Mercedes, Mitsubishi and Daewoo etc.

Our arrival in Germany was in the city of Dusseldorf from which we went on to Neubeckum which was the town where we were accommodated. We were accompanied by Ms. Karin our Project coordinator from the Institute. The very first impression which we got after our arrival in Germany was the level of cooperation for us from all the people in our surroundings, the concept of racism as perceived by some, is nowhere to be found as per my personal

observation.

As a part of our training program, we were trained practically & theoretically for Technical and Pedagogical skills in a training institute named Kreishandwerkerschaft. Apart from conventional training some visits were also organized for us to enhance our insight on the German technology and the way things are done in Germany.

The theoretical training which was conducted by Ms. Ingrid, an experienced pedagogical trainer, primarily comprised on training us for the Pedagogical skills.

We were introduced to the rules & regulations being observed locally to train the apprentices. Furthermore we were trained to design an instruction plan for our trainees for more effective communication of the training knowledge. Germany follows a Dual Education program apart from the conventional educational systems, which allows the apprentices to get trained in vocational schools as well as in the industries & workshops during the span of their education. The good thing primarily about this system is that the trainee gets trained about the vocation of his choice through conventional bookish education as well as gets hands on experience of the field, while getting paid as well.

The practical training which was conducted by Mr. Christian, a well versed and experienced Mastercraftsman & Mr. Alexander who was a well versed apprentice & a student of German University primarily comprised of the testing techniques utilized to diagnose the highly advanced electronic systems inclusive of Engine control, Lightning & Comfort systems

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Monthly AutoMark International

of modern world Automobiles, through conventional equipment like the multimeter as well as from the highly advanced systems from Bosch & Gutmann. The practical exercises were conducted on either live engine models or the test vehicles available in the workshop. For demonstration of certain more advanced systems which the institute did not have we were taken to the workshops in the surrounding vicinity.

As we know for an automobile lover, Germany is an absolute heaven. We visited certain facilities and events in Germany, no Automobile enthusiast would like to miss. First of these were the Autostadt which is a facility run by VW group demonstrating all their brands with representation of their top car models. The facility also has a museum where you can see the cars starting from Benz Motorwagen all the way to the Jaguar E Type, DMC Delorean & Lamborghini Miura. For any tourist wanting to take memories from Autostadt a souvenir shop is also available.

The next visit we had was to the WM fair which is like the Autoparts expo organized here in Pakistan by PAAPAM, only much bigger. There anyone can have a look at the suppliers of different tools & equipment manufacturers for the giant Automotive industry of Germany.

After the WM, we were lucky enough to have visited the manufacturing facility of Mercedes Benz. We were shown the manufacturing areas from Welding and

vehicle final assembly. A mindboggling fact I would like to quote here is the number of different custom combinations a customer can order for his seat in a Mercedes, any wild guesses?

220,000 to be precise.

Many automotive enthusiasts must have been following the IAA 2015, more pop u larly know n as F rankfurt motorshow locally. We were lucky enough to visit that as well. Apart from the amazing new technology and the exotic new model cars on display the live shows, premieres and presentations which are demonstrated by few top of the line German manufacturers like Mercedes, BMW & Audi are a treat to watch.

Apart from these visits, we also were taken to few other visits of German cities like Munster, Bremen & Rheine.

For a car enthusiast visiting Germany Nurburgring is a must visit. I was lucky enough to be accompanied by Mr Christian & his friends to visit Nurburgring on a race weekend; to watch DTM Live. For anyone watching DTM at home, the sensation is only 5% of the reality, if you are a real petrol head you have to be there to watch the

race yourself to have the real sensation.

We also visited some places of Nordschleife more popularly known as the “Green Hell” from where you get all the production car records declaring how fast they are. The good thing about it is anyone can go around that track in his car, only by paying a nominal fee.

Another mind boggling experience that I was able to have as a petrolhead was the ride in an Audi R8 GT with 560 hp.

This was arranged on the special request of Mr. Christian through his friend. The insane acceleration from 0-100 kph in 3.6 seconds has to be felt and cannot be imagined nor explained in words.

Luckily with this powerful car we had the blessing of having German A u t o b a h n s w hi c h a r e mo s t l y unrestricted. We were able to hit 310kph as our top speed.

Concluding I would like to say that all the aforementioned experiences may sound interesting however; nothing absolutely nothing surpasses the extreme care & hospitality on display by our hosts.

We had amazing experiences together including our instructors & project coordinator experiencing Pakistani food for first time, sharing traditional experiences in a dinner with our Instructors family, and many others words cannot summarize. The only thing I can say for all those I met there is that no words can thank their care & support shown for us. Vielen Dank Germany!

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