Automark magazine oct 2013 by Mustafa Hanif

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CONTENTS

Monthly AutoMark Chinese assemblers seeks involvement in new auto policy An Exclusive article by Ali Hassan

12-15

Motorcycle industry repositioning itself stated by Atlas Honda Ltd R&D General Manager Afaq Ahmad

Local Motorcycle Production figuers

16-17

Usman Aslam Malik Elected Chairman PAAPAM

KMC Chain Pakistan arranged loyalty awards

20-21

Pak Suzuki increases vehicles’ prices

Engine Blow-By Monitoring System

EDB organized Engineering Pavilion at Expo Pakistan 2013

Tractor Sector - Update

Anger Management..... Why Do Customers Get Angry? By Mohammad Shahzad from Canada

36-37

Crown Group participated in Expo Pakistan-2013 - PR

Car Price

International Automotive news

40-41

Motorcycles Price List

Expo Pakistan-2013

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

AUTOMARK Technology up gradation key to high economic growth

Editor M. Hanif Memon Technical Editor Muhammad Shahzad

Advertising Manager Tahir Siddiqui

Circulation Manager Abdul Khaliq

Graphic Designer Salman Hanif

Web Master Murtaza Hanif

CONTRIBUTING IN THIS ISSUE Muhammad Shazad Asif Masood M. Yousuf Shaikh Ali Hassan M. Owais Khan

Advisors Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center Director Industrial Lesion, NED University, Karachi Engr. IHT Farooqui GM Plant P.M. Auto Industries Hyderabad J. Pereira GM After Sales Al-Haj Faw Motors (Pvt) Ltd. Karachi

The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management. AutoMark REGD: SC-1330

Published every month by M. Hanif Memon Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.automark.pk E-mail: automarkpk@gmail.com Tel : 021-32218526 Mobile: 0321-2203815

Technology up-gradation in engineering industries is a key to high economic growth and a focused attention could put Pakistan on path to progress and prosperity. There was no short cut to technological advancement and it requires highest level of expertise and huge investment to bring Pakistan’s industrial sector at par with developed countries. Both the public and private sectors would have to work hand-in-hand to achieve the desir ed go al o f techn ol ogi cal advancement in the local industry. The need of developing close linkages between academia and industry. We need to harness all the available expertise in engineering to address the major issues being faced nowadays. It is high time that engineering services and resources be called for finding effective solutions for energy production, supplies and usage etc. Technological development is now more essential for our prosperity, security, health, environment and our quality of life than it has ever been before. Considering its importance and potential role in earning major share in exports of Pakistan. If we look at the global scene in this respect, the governments of many developing countries recognize the critical importance of technological upgradation. Better application of technologies of broad national interest can improve many aspects of social and economic development. Capacity of any economic or business sector to meet consumer demands heavily depends on the availability and adoption of new technology. R&D can play a decisive role as new technologies require greater efforts and commitment.

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Exclusive Article on Two Wheeler by Ali Hassan

Chinese assemblers seeks involvement in new auto policy

The committee has been directed to seek the views of representative of auto manufacturers including motorcycle, car, three wheeler, light commercial and heavy vehicles assemblers. The ECC has also advised the committee to widely circulate the draft policy and solicit proposals for all stakeholders as well as Japanese, Chinese and all Pakistani stakeholders

Ministry of Industry Government of Pakistan

Finally the government wakes up after over 100 days in power to realise the importance of the auto sector. The Economic Coordination Committee (ECC) has formed a committee to prepare an automobile policy within 45 days which has been pending for the last 10 years as per claim of Chinese bike assemblers’ body. The committee, headed by Minister for Water and Power Khawaja Mohammad Asif, comprises Zubair Umar as Vice Chairman, Chief Executive Engineering Development Board, FBR Chairman Tariq Bajwa and Secretary Industries and Production as its members. The committee has been directed to seek the views of representative of auto manufacturers including motorcycle, car, three wheeler, light commercial and heavy vehicles assemblers. The ECC has also advised the committee to widely circulate the draft policy and solicit proposals for all stakeholders as well as Japanese, Chinese and all Pakistani stakeholders. This decision was taken at a meeting of the ECC chaired by Finance Minister Senator Mohammad Ishaq Dar at Prime Minister’s Office. The meeting was

attended by Minister for Information and Broadcasting, Senator Pervez Rashid, Minister for Planning and Development Ahsan Iqbal, Minister for Water and Power Khawaja Mohammad Asif, Minister for National Food Security Sikandar Bosan, Minister for Science and Technology Zahid Hamid, Minister of State for Information Technology Anusha Rehman, Chairman FBR, Governor State Bank of Pakistan, Board of Investment Chairman Zubair Umar and senior officials of the Ministries of Finance, Water and Power, Planning a n d De v e lo p m en t , C o m m e r c e, Comm unications and Indus tries. Chairman Association of Pakistan Motorcycle Ass emblers (APMA), Mohammad Sabir Shaikh is of the view that “the auto policy needs drastic changes because for the last 10 years institution and government involved in auto sector have been taking decisions on their own without taking on board the stakeholders’ inputs.” He also blamed the tariff department of the Engineering Development Board

(EDB) for wasting time an d causing de lay in is s u in g p r o d u c t i o n certificates especially to the bike assemblers. One of its negative repercussions was felt by the customers, dealers and assemblers earlier in October following suspension of registration of legal bikes assembled by the local industry from October 1 by the Excise and Taxation Department, government of Sindh. A number of new bike buyers, dealers and assemblers faced severe problem when the Motor Regis- tration Wing Karachi discontinued the registration of around 80 locally assembled twowheelers’ brands including Japanese and Chinese.. The Motor Registration Authority Excise and Taxation Civic Centre Karachi has asked the local bike assemblers to submit three documents relating to Production Certificate of Engineering Development Board (EDB), Pakistan Standard and Quality Control and C.M. License. However, sources said that EDB was the main department for creating such problem as many assemblers had already submitted the production certifcate in September and the EDB had failed to communicate it to the Excise Department. Chairman APMA Mohammad Sabir Shaikh said that in case if the Excise and Taxation Department had any pending

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Monthly AutoMark Magazine

Sabir Shaikh strongly urged the government to involve APMA in every new auto policy and its related issues otherwise like past practice the policy would be made and announced on the dictation of few big assemblers of cars and motorcycle industry. issues with the assemblers, then it should have avoided taking abrupt decision. He claimed that more than 50 per cent of bikes, which were sold in the last week of September, were not registered yet and even consumers were waiting for their bike regis tration numbers . Sabir said the decision of Excise and Taxation had hit the sales badly as the dealers had also warned new bike buyers to wait for more days till the registration of new bikes did not resume. He said that more than 90 per cent buyers take the registration number first and then bring out their bikes on the roads to avoid any scuffle with the law enforcement agencies. However, the Excise department must have suffered revenue loss of around Rs 10 million a day keepin g in view of daily registration of 400-500 bikes per day in Karachi. Devaluation of Rupee Sabir Shaikh was worried over the persistent loss of the rupee strength against the US dollar. Earlier i in June, one dollar was equal to Rs 98.50 as compared to Rs 106 in the interbank market. The State Bank’s intervention somehow rescued the rupee falling but more action is needed to improve the rupee strenght. Giving a unique example, he said that when the US Dollar was Rs 60 in Pakistan the tax structure on bike industry was almost same as compared to the current rates. Now the dollar in inter-bank is Rs 106 but the retail prices of Chinese bikes have not seen any big jump

Sabir Shaikh questioned the policy makers and the government as what has been achieved in terms of localization of parts and accessories in the last 15 years. For example, a leading bike assembler claims to have achieved 94 per cent parts localization including engine parts. He said if Japanese principles close their activities in Pakistan then the Japanese assembler, who claims 94% localization, can really make a bike on their own as per pattern of Hero Honda of India which is now Hero having same expertise and technology which it had when Honda was with them. in the last over five years. Here he did not hesitate in revealing the wrong practices of some assemblers besides blaming faulty system of taxation which kept the prices quite stable for many years. He said parts are being imported under multiple policies – one is through SRO followed by

commerical imports, smuggling , misdeclaration and also through IORC process in which complete assembly is imported while declaring it as subassembly. These types of imports have maintained the prices to some extent while stiff competition among Chinese assmblers is also providing some relief to the consumers as any sharp increase in prices by Chinese bike assemblers may the sales badly. “Many assemblers are taking hit on themselves by not jacking up the prices in view of market situation and sustaining the impact of rising cost of production,” he said adding that rupee devaluation, rising power and gas tariff, high transportation charges are causing sleepless nights to the assemblers. He said that there is a dire need to save the local industry and this can only happen by increasing prices by the Chinese assemblers, decrease in tax rates, easy policy by the government and revamping of customs valuation system, scrapping of IORC system which is totally a fraud prevailing for the last 10 years. Most of the Chinese assemblers are highly serious to raise prices but other assemblers like Japanese usually raise prices to offset rising cost of production. The rates have been raised owing to devaluation of the rupee against the dollar, high transportation charges on account of four time increase in diesel prices and power rates. Sabir Shaikh strong ly urged the government to involve APMA in every

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Article on Two Wheeler - Continued

Monthly AutoMark Magazine

The Motor Registration Authority Excise and Taxation Civic Centre Karachi has asked the local bike assemblers to submit three documents relating to Production Certificate of Engineering Development Board (EDB), Pakistan Standard and Quality Control and C.M. License. However, sources said that EDB was the main department for creating such problem as many assemblers had already submitted the production certifcate in September and the EDB had failed to communicate it to the Excise Department. new auto policy and its related issues otherwise like past practice the policy would be made and announced on the dictation of few big assemblers of cars and motorcycle industry. The industry badly needs a new policy excluding the role of IORC by the EDB. There should be no SRO from the government of Pakistan and the g overn men t s ho uld a lso ens ure uniformity for importing part from respective principles on one customs duty rate. For example, he said that for localized parts lists there is different customs duty rates while different rates prevail on non-localized parts list. There are also different rates on assemblies and sub assemblies. “These are all one. The government departments have been misusing the import of all these parts by issuing different certificates, IROCs for reducing customs duties through different SROs and notifications,” he said adding that the local industry had wasted billions of dollars by using concessionary SROs in connivan ce with the government departments. Sabir Shaikh questioned the policy makers and the government as what has been achieved in terms of localization of parts and accessories in the last 15 years. For example, a leading bike assembler claims to have achieved 94 per cent parts localization including engine parts. He said if Japanese principles close their activities in Pakistan then the Japanese assembler, who claims 94 per cent localization, can

The committee, headed by Minister for Water and Power Khawaja Mohammad Asif, comprises Zubair Umar as Vice Chairman, Chief Executive Engineering Development Board, FBR Chairman Tariq Bajwa and Secretary Industries and Production as its members. The committee has been directed to seek the views of representative of auto manufacturers including motorcycle, car, three wheeler, light commercial and heavy vehicles assemblers. The ECC has also advised the committee to widely circulate the draft policy and solicit proposals for all stakeholders as well as Japanese, Chinese and all Pakistani stakeholders. really make a bike on their own as per pattern of Hero Honda of India which is now Hero having same expertise and technology which it had when Honda was with them. The government should investigate the achievement in localization by Japanese assemblers especially as consumers are not getting any benefit of higher localization. The

assemblers have been raising the prices on exchange rate parity due to rising cost of imports on nonlocalized parts. If the Japanese bike makers are surging the prices on Rupee-Yen-Dollar parities then it means that they have been misleading the governments over higher localization claim, otherwise the customers must have seen its benefits either in shape of stability or reduction in Japanese bike prices . Even their vendors have also not achieved any thing since they are dependent on raw material import from abroad, he said He said the PML-N government had also claimed 15 years back for creating a “Made in Pakistan” small car, which was a dream of Prime Minister Nawaz Sharif. He announced for bringing Made in Pakistan small car during the visit of Sindh Engineering Limited. That PML-N government came into an end that time but in the last 15 years the local industry and its vendors had hardly made any serious effort to roll out a Made in Pakistan small car. Sabir Shaikh said that the previous governments had highly supported the local industry in the last 15 years and if the new government promises only 50 per cent of support then he would make a cheaper Made in Pakistan car.....

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Monthly AutoMark Magazine

Motorcycle Sector - Update

Motorcycle industry repositioning itself stated by Atlas Honda Ltd R&D General Manager Afaq Ahmad The basic benchmark that Pakistani motorcycle industry has achieved is around 100 percent localisation, which has not only helped it to keep the price at a reasonable level as compared with the region and also to gain ground in foreign markets like Bangladesh and Sri Lanka while South Africa and Iran are being explored. The Honda Japan recently declared Pakistan as a hub for 70cc technology in the region. The motorcycle industry is repositioning itself with changing trends in consumers’ behaviour as last year the segment above 100cc showed record growth while 70cc segment showed a slight decline, this was stated by Atlas Honda Ltd R&D Gen era l M an a g er Afa q Ah ma d. The real change in the industry will come with changing Pakistan and phenomenal jump from 100,000 motorcycles a year in 2000-01 to currently 2.0 million a year is a testimony of changing Pakistan. Last year over 1.5 million motorcycles were produced in the country out of which most were of 70cc engine capacity. A ph en omena l grow th ha s been observed in 100cc, 125cc and above segments with a growth trend of around 34 percent and 20 percent, respectively. A decline in production of around 10 percent is seen in the most popular 70cc motorcycles. He said that when per capita income reaches the barrier of $3,000 the Pakistani auto market will experience a change in consumer behaviour as they will go for both luxury bikes above 250cc and trendy bikes like scooties and so on. The basic benchmark that Pakistani motorcycle industry has achieved is around 100 percent localisation, which has not only helped it to keep the price at a reasonable level as compared with the region and also to gain ground in foreign markets like Bangladesh and Sri Lanka while South Africa and Iran are being explored. The Honda Japan recently declared Pakistan as a hub for 70 cc tech n olo gy in th e re gio n. I n P ak is t a n lo c a l a s s em bly o f motorcycles started in 1964 when Atlas Group put up assembly facilities in Karachi to assemble Honda motorcycles. Initially, the market was dominated by Japanese brands Honda, Yamaha and Suzuki.

The market experienced a major breakthrough in the late 1990’s with the advent of assemblers that sourced their CKD and parts through China - hence the phrase ‘Chinese manufacturers’. At pres en t , t h ere a re aro un d 1 00 assemblers in the country. Out of these around 81 are active assemblers. The popular 70cc brand still carries more than 80 percent of the market share. Owing to the fact that the motorcycle market is at growth stage, demand of higher cc motorcycles is increasing like the example of India where the market is largely segmented into three like entry, executive and premium segment. The major change in the Indian motorcycle market is shifting from entry to executive and premium level segment. In India executive level bikes which comprise of motorcycle ranging from 100cc to 150 cc engine capacity gained market share from 48 percent in 2005 to 65 percent in 2012 while the premium level bikes gained market share from 9.0 percent in 2005 to 17 percen t in 201 2. The Pakistan motorcycle market has also gone through the same pattern. In the year 2012-13 the 70cc motorcycle growth rate has declined by 10 percent as compared to that of 2011-12, while the growth pattern of 100cc to 125cc engine capacity bikes is 34 percent and 20 percent, respectively, for the same year. Indian two-wheeler market constitutes of motorcycles, scooters and mopeds. Scooters segment has grown at a fairly rapid pace over the last five years. During this period, its share in the total domestic two-wheeler market has also increased from 13 percent in 2005-06 to 18 percent in 2010-11. The 100cc scooters sub-segment remains the largest, accounting for 67 percent of the total domestic scooters market in 2010-

11, and is currently dominated by Honda motorcycles and scooters. Per capita income is very important for the development of the automotive industry as it makes the automotive sector more competitive when the economic situation is not so good. High economic growth increases the living standard of people, which creates more demand for higher end vehicles like cars. In Pakistan gross domestic product per capita stood at $1,290 (bureau of statistics), which is much lower as compared to the developed nations. The shift from motorcycles to cars in Pakistani market will start becoming visible when per capita income will touch $3,000 to $4,000 marks. At that stage the motorcycle market will also shift from a necessity market somewhat a pleasure or sports oriented market. This transformation will start bringing in higher cc motorcycles into Pakistani market. The tariff structure of a country also is a major determinant of the progress of this industry. For instance, countries like China and India etc are charging 90 percent to 100 percent duty on CBU imports of automotive vehicles. This policy provides competitive grounds and economies of scale to local producers. On the contrary, the countries that give access to their local markets through tariff liberalisation, cannot provide protection to their local industry against the flux of foreign products and hence their local industry cannot grow at all. It largely depends upon the priorities of the government whether to develop the auto industry locally or to rely on imports. The entire debate lies in the fact that with the change in the economy the change in the bike industry is likely to be considered.....

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Production Figures - Statistics

Monthly AutoMark Magazine

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Production Figures - Statistics

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Motorcycle Sector - Update

Motorcycle Sector

ECC decides to revoke SRO 09 While talking to different stakeholders including those representing the OEMs and the vending industry, there was a strong call for a positive policy formulation and implementation. A major manufacturer wanted the government to get the stakeholders to sit together and draw a roadmap for the introduction of new technology in the country. Economic Co-ordination Committee (ECC) of the Cabinet has decided, in principle, to revoke SRO 09 of January 04, 2013, after Federal Board of Revenue (FBR) unveiled certain aspects of the case to Finance Minister Senator Ice Dar. A copy of the "brief" by FBR revealed that a high-level committee with Secretary Commerce, Secretary In dustry, Chairman BoI and the Chairman FBR as members examined the issue afresh and it was opined that the waiver of Additional Customs Duty (ACD) to the new entrants only is contrary to the decision regarding an across-the-board applicability of the new rates. Moreover, such waiver was neither proposed in the MoC's summary of September 19, 2012 or October 16, 2012 nor was it part of the ECC decision. Hence, through a note for the Finance Minister, it was proposed that the matter may be put up to the ECC for deciding it afresh. The sources said, Dar is trying

to limit the damage caused by "illegal" p o li cy i m p le m en t a t i o n b y h i s predecessor. The sources further stated that MoI&P continues to create problems as a summary moved by it as a result of the findings of the committee again had a very controversial proposal to reduce the start-up local content to just 17 percent for the new entrant against the agreed position of 25 percent. According to sources, the proposal further irked the ECC members as they did not want to create an uneven playing field for the existing players vis-a-vis the new entrants. As a result of last minute change yet again, the ECC insisted on a $100 million minimum investment as a condition. "ECC felt that this would not be a problem for Yamaha as they themselves have been lobbying to bring $150 million investment. Now in a letter written to BoI they have indicated that investment of even $100 million is difficult," the

Yamaha to set up motorcycle plant: BoI Chairman

Chairman, Board of Investment (BoI) Mohammad Zubair said the approval of Economic Coordination Committee to

allow Yamaha to set up modren motorcycle plant in Karachi would boost foreign investment in the country. “Yamaha had been trying to get this approval which involved very complex issues since 2009. Just within two months after assuming the charge of Chairman BoI, I have been able to get this done with 100 per cent transparency resolving several complex stages”, Mohammad Zubair said in a statement issued here on Sunday. He said getting a major international brand in such difficult times is a credit of the present PML-N government and is a great n ews for the country.

sources continued. According to sources, Yamaha is said to h a ve ex ag g era ted it s c laim s o f investments just to seek exemptions. The proposal shows that the first year investment is a mere 1/10 of the $150 million Yamaha was claiming. Official documents reveal that bad advice by consultants/lobbyists are creating a difficult situation for Yamaha as well as the Japanese embassy as they have not been explained proper procedures and due process of law in the country. As a result, the government, especially the Foreign Office, is being unnecessarily embarrassed. While talking to different stakeholders including those representing the OEMs and the vending industry, there was a s tron g ca ll for a pos itive policy formulation and implementation. A m ajor man ufacturer wan ted th e government to get the stakeholders to sit together and draw a roadmap for the introduction of new technology in the country. A leading vendor said he is ready to sit down and create a balanced policy, which would not hurt the existing investor, help promote the indigenous vending industry and also attract reputable companies like Yamaha. Vending industry is also apprehensive about how the new technology is being defined. They want this definition to be based on the internationally recognised standards. Standards like EURO II & III have an internationally acceptable interpretation. Pakistan is currently at EURO II. The industry feels that a startup of 25 percent is not justifiable for a EURO II product as all vehicles in Pakistan are currently at EURO II. "Incentives should be offered for products offering EURO III technology," he added...

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Monthly AutoMark Magazine

Automotive Sector - Update

Usman Aslam Malik

Elected Chairman PAAPAM

At annual function on 30 Sep 2013, Ramada Hotel Karachi. Usman Aslam Malik has been elected chairman Pakistan Association of Autom otive Parts & Accesso ries Manufactures (PAAPAM) for the year 2013-14. Aslam Rayaz and Mohammad Siddique Misri were also unanimously elected Senior Vice Chairman and Vice Ch airm an of t he As so ciatio n respectively. Razzak Ahmad, Irfan Ahmad Qureshi, Wali Ullah Ghaznavi, Mushtaq Butt, Aamir A. Allawala, Wajihuddin Siddique and Syed Tahir Abbas were elected as members of the Exeuctive Committee. Muhammad Saleem Chief Election

Commissioner announced the final result of the election of members of executive committee and office bearers at 14thAnnual General Meeting of the Association. The executive committee and members of PAAPAM congratulated Usman Aslam Malik and hope that being a veteran, seasoned and experienced perso n h e will fully ex plo it his potentialities to resolve the problems being confronted by the automotive vending industry. Later, traditional annual dinner was held at a local hotel. Honorable Mr.

Muhammad Ejaz Choudhary, Chief Secretary, Govt of Sindh graced the event. The function was held to bid farewell to the out going Chairman Mr. Munir K. Bana and welcome the incoming Chairman Mr. Usman Aslam Malik. Outgoing chairman and incoming chairman in their speeches highlighted the challenges being faced by automotive industry. Usman Aslam Malik thanked the members for reposing confidence in him and assured to solve their problems on fast track basis.

Paapam chief for revival of tractor industry The country's tractor industry has almost closed, as one of the major manufacturer Al-Ghazi Tractors has stopped its production for the last three months, while Millat Tractors Ltd is presently operating at 20 percent of its total production capacity. According to Paapam Chairman, Usman Aslam Malik, this has rendered some 300 + tier 1 suppliers and thousands of workers who work in these factories and downstream industries out of work. The rest of the small tractor assemblers had also suspended their production, as new orders were not arriving from the cash-starved and flood-hit farmers of

the country, he added. Due to high tractor prices th at basic tool of agriculture was no longer within reach of even the large land holding farmers and there had been no support both at federal and provincial level in the new government set-up, he said. U s m a n s a i d th e la c k o f f a rm mechanisation policy at federal and provincial level, high level of taxation on tractors as compared to the regional c oun ties , h ig h infla tion, floo ds, devaluation of rupee and unprecedented hike in power tariffs had dragged down the sale of tractors, leading to dead level production despite having capacity of

producing 80,000 units annually. "Thousands of auto parts manufacturing units which provide 92 percent parts to the tractor industry are laying off their 0.5 million workers after closure of tractor manufacturing u n its . Us ma n s ug g es ted t o th e authorities to launch schemes of soft loans to revive the industry based on total tractor production capacity in the country, which was currently over 80,000 units per annum....

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Coroprate Event - Update

KMC Chain Pakistan arranged loyalty awards

At the occasion of loyalty awards distribution ceremony Principals from Taiwan Mr. James (President), Mr. Samuel Wang (Vice President), Ms. Carie (Marketing Director), Mr. Ejaz Usman of Venus Autos Karachi, Mr. Naveed Mazhar, & Mr. Waseem from Auto Spot Lahore.

Recently KMC Pakistan arranged a loyalty awards for their dealers who have made KMC the top selling brand in Karachi and Sind region. The honorable principals from Taiwan were visited Pakistan and they also attend the ceremony. There were some 35 winners of 5 days Dubai package, 70cc motorcycle and various amounts of gifts were awarded by the honorable guests. This event gave a great opportunity of having awareness about the KMC group and extending good wishes to the local customers by the foreign KMC principals.

KMC PAKISTAN Although KMC Chain were regularly imported in the Pakistan market by number of imp ort ers a s a co mm on bran d . In 1995 M/s. Auto Spot, Lahore was appointed as the sole agent’s for Pakistan, since then the KMC Chain was promoted and marketed as a premium brand, each and every KMC product whether it is the wheel chain, timing chain or the chain kit, are sole with ultimate quality and gurantee. We can rightly say that KMC products have ‘ZERO CLAIMS’ after sales. (next page)

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Monthly AutoMark Magazine M/s. Venus Autos Karachi was appointed as a sole-distributor for Sind and Baluchistan in the year 2000, by the grace of Allah And rigorous efforts, KMC is now one of the leading brand in this region. We give this credit to our dealers who have joined hands With us and especially thankful to our mechanics who without any incentive supported and used KMC products on the basis of quality.

KMC CHAIN INDUSTRIAL CO., LTD. KMC CHAIN INDUSTRIAL CO., LTD. was established in Tainan County , Taiwan in 1977. We have devoted ourselves to the production of professional bicycle chains since then to stand out among tons of chain makers. The partnership between Shimano Japan and KMC has been lasting from 1986 to date by signing the chain supply and t echn o lo g y coo pera tio n a greem en t. Nowadays, KMC becomes one of the largest chain manufacturers in the world with annual capacity of 150,000,000 meters sold to more than 130 countries due to the strong marketing network. Except the two factories set up early in Taiwan , KMC expanded to China since 1989 for global market . More factories were located in Shenzhen, Shanghai , Chongqing and so on. To take advantage of local production lines, KMC not only entered China domestic after market, but also has made the stable and reliable relationship with well-known motorcycle makers like Honda, Yamaha, Suzuki and Grand River . The m arket sh are reach es 50% and magnificent brand awareness is created. In recent years, KMC further develops industrial chains for power transmission industry. KMC plays a part in industrial chain with active and enthusiastic attitude. America Diamond Chain Company makes a firmly approval on our quality. In 2008, KMC and Diamond Chain start a joint venture and set up a manufactory in Weifang , Shandong Province. After i ntegrating techniques and production capacity, KMC and Diamond Chain can become the best strategical partner. Through the collaboration, both of us will put the best effort in the transmission industry. Until today, KMC Group is stepping into the 33th operating year and has already 12 factories in the world with ISO certificates, adv anced equipm en ts an d excellent manufacturing technology. There are 16 marketing companies over USA, Netherlands , Taiwan , China , Indonesia , Thailand and Vie tnam to ensure ju st- in-t ime communication and delivery.

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Automotive Sector - Update

Pak Suzuki increases vehicles’ prices by up to Rs 20,000/unit Pa kista n Suzuki Motor Comp any ( P S M C ) , following the other auto assemblers has increased the prices of its all vehicles by up to Rs 20,000 mainly on account of weakening of rupee against the US dollar, it was learnt on Tuesday on 2nd October-2013. According to the Company's letter the new revised ex-factory prices are effect iv e fro m Oct ober 1, 201 3. The PSMC has made upward revision in its vehicles' prices third time during the last twelve months as the Company in October 2012 had increased prices of its locally assembled cars and light commercial vehicles, after that in Jan uary 2013 the Company had increased the car prices by Rs 20,000 and now again they announced price hike in similar quantum.

Consequently to a latest upward revision in prices by PSMC the new prices of Mehran VX E2 increased to Rs 610,000 from Rs 6,00,000, Mehran VXR E2 jumped to Rs 668,000 from Rs 663,000 and Ravi pick up E2 price rose to Rs 637,000 from Rs 627,000. Similarly, Bolan Van VX E2 price increased to Rs 690,000 from Rs 680,000, Cargo Van E2 jumped to Rs 666,000 from Rs 656,000 and the Cultus VXR E2 price has reached at Rs 1 , 0 29 , 0 0 0 f r o m R s 1 0 1 ,4 0 0 0 . The Company taking the advantage of raising popularity of it's newly launched variant Swift has increased its prices more than other vehicles as Swift DLX price increased to Rs 1282,000 from Rs 1262,000, Swift DX reached at Rs 1201,000 from Rs 1181,000, Swift AT jumped to Rs 1418,000 from Rs 1398,000, Swift DLX NV increased to Rs 1330,000 from Rs 1310,000 and Swift AT NV price rose to Rs 1466,000 from Rs 1446,000.

Car sales The shrinking economy segment There was a time, not so long ago, when local car assemblers were selling as many as 180,000 cars in a year (FY07). Then, when the economy went south in FY08, car sales went with it and their tally has never even come close to those levels since. But, while it is true that overall volumes have declined, that’s not the whole story. The share of the 1,300cc and above segment in total car sales has leapt from 30 to 50 percent, recording 3.4 percent annual growth (on average) in the past five years. On the other hand, the 1,000cc economy segment has been the worst performer during this period. Based on these numbers, one may be tempted to assume that the import of used cars has dealt a fatal blow to this segment. Bank financing and leasing options were also major drivers of demand in yesteryears. The lack of these options has dented demand for new cars even for the bottom-of-the-pyramid Suzuki Mehran. The suspension of Suzuki Alto

due to a ban on import of engines from India is another reason why the market share of 1,000cc cars has sliced to less than half. But, profit margins of all three major domestic assemblers have jetted in the past five years, despite lower sales of small cars. According to industry analysts, higher margins on upscale car segments has fattened the bottom line even for Pak Suzuki, which in the past used to derive demand mostly from the lower segment. Over the last five years, higher fuel prices, inflationary pressures, ban on factory-fitted CNG kits, weak economy and poor law and order; have all contributed to the decline in demand for new cars by the middle-income segment. But the disparity in demand of cars may just be symptomatic of broader socio-economic realities. Who knows perhaps vehicle ownership is another manifestation of income disparity in th is lan d of iron y.

Bike registration suspended New bike owners are facing problems as the Motor Registration Wing Karachi has suspended the registration of 80 locally assembled two-wheelers from Tuesday. The Motor Registration Authority Excise and Taxation Civic Centre Karachi has asked the local bike assemblers to submit three documents relating to Production Certificate of Engineering Development Board (EDB), Pakistan Standard and Quality Control and C.M. Licens e before October 6, 2013. Chairman Association of Pakistan M otorcycle Ass emblers (APM A), Mohammad Sabir Shaikh told Dawn t ha t if th e E x cis e a n dT a xa tio n Department has any pending issues with the assemblers, then it should avoid taking abrupt decision which only creates problems for the motorcycle buyers. He claimed that more than 50 per cent of bikes, which were sold in the last week of September, were not registered yet and even consumers were waiting for their bike registration numbers. He said many customers on Wednesday were visible upset at the dealers` shop from where they had purchased bike when they failed to get the registration and number.

Pak-Suzuki to introduce new versions Pak-Suzuki Motor Company Limited (PSMCL) would introduce Alto 800cc, Swift Sedan and other new versions in case trade with India normalises. T h e c o m p a n y h a d t e rm i n a t ed production of Alto 1,000cc in Pakistan from June 2012 due to non-availability of CKD kits in Japan which had hit its overall sales. Shafiq Ahmed Shaikh, Head of Public Relations and PSMCL spokesman said, “Even if trade is not allowed with India, t he com pan y h as reques ted th e government to allow Pak-Suzuki to import CKD kits from India under special case for lower price vehicles.” He said Suzuki Motor Corporation Japan has many overseas production facilities in various parts of the world.

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Automotive Development - Review

Monthly AutoMark Magazine

Engine Blow-By Monitoring System (A commercial product)

Designed and Developed by School of Mechanical & Manufacturing Engineering, National University of Sciences & Technology (NUST) Blow-by occurs when the explosion in your engine’s combustion chamber causes fuel, air and moisture past the rings into the crankcase. Piston rings must maintain an excellent fit in order to contain the pressure. As rings and cylinder liners wear away they are less capable of maintaining this seal. Con sequently as an eng in e ages the amount of blow -by can increase. Blow-by inhibits performance because it results in a loss of compression. When the expanding gasses slip past the rings they cannot as effectively push the piston down and as a result the engine will have less horsepower. This also results in a loss of fuel economy and the result of fuel, air and moisture slipping into the crankcase contaminates and dilutes the oil in the crankcase. Monitoring of engine blow-by helps in identifying the right time to overhaul the engine. One of the most challenging parameters to measure accurately in engine testing is engine blow-by. The blow-by flow rate of engines is very low and thus is difficult to measure through conventional means. Special techniques are used to measure such limited flow rates. The Engine Blow-By Monitoring System developed by SMME is a successful commercial product. It is probably the first time in Pakistan that a public sector university has developed a commercial product.

More than a dozen systems have been sold to major automotive companies in Pakistan including Millat Tractors and Power Vision, to army workshops and to other independent suppliers such as United Traders. Due to the high reliability, durability, efficiency & portability of the system, SMME is getting a very positive feedback and is receiving more orders of the Blow-By System without even properly marketing it. In view of its high success the team involved in its designing, development and manufacturing is constantly upgrading the Engine BlowBy System by making it more user friendly & durable. So far three models have been developed; RAM-BB3 is the latest model developed in July 2013 incorporating fiber optics. RAM-BB3

is a standalone system with a built-in touch-screen specially designed for field applications. A patent has also been filed for the Engine Blow-by Monitoring System. In the

INVENTION TO INNOVATION SUMMIT 2013 The product was recognized as the best p ro d u ct a n d w a s a w a rd ed t h e “Innovation Award”.

This system has been developed at The Automotive Research Center (The ARC) School of Mechanical and Manufacturing Engineering by the team comprising of Dr. Riaz Ahmad Mufti, Mr. Mian Ashfaq Ali and Mr. Muhammad Usman Bhutta. www.automark.pk | October-2013 | Page 23

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Expo Pakistan Event - Update

EDB organized Engineering Pavilion at Expo Pakistan 2013 The State Minister for Commerce and Textile Industry Khurram Dastgir praised the variety of engineering items being displayed at EDB’s Engineering Pavilion. Commercial Counselors from various countries including Europe, Africa and Middle East also visited EDB’s Pavilion to ascertain the exportability of local engineering products In continuation of its efforts to promote Pakistan’s engineering industry at d if fe r en t f o r u m s , E n g i n ee ri n g Develo pm ent Bo ard ( EDB ) ha d organized an Engineering Pavilion in c o l la b o r a t i o n w i t h t h e T r a d e Development Authority of Pakistan (TDAP), at Expo Pakistan 2013, from September 26 to 29, 2013 at Expo Centre, Karachi. In order to give a boost to export of engineering goods, attract fo reign buyers and to show case capabilities of engineering industry of Pakistan, EDB had showcased the product line of more than 40 leading engineering companies from various sub-sectors at the platform of the expo. The Engineering Pavilion is branded as ‘Engineering Pakistan’. Among others, many prominent engineering companies such as Q adbros, H in o Pak, NJ Industries, Orient Tractors, DS Motors, HMC, PECO, HEC, Surgical Instruments Manufacturers, Fibre Craft Industries, PEL, Hero Motors, Sazgar Engineering W o r k s , St a r c o Fa n s , A d a m j ee Engineering and Exide Pakistan Ltd etc are participating in the event. Besides, key manufacturers of auto parts and components, valves, pumps, pipes, castings, rims and dies and moulds etc are joining the engineering pavilion for projection of their products. Many foreign buyers have come to the event and the country is receiving export orders worth millions of dollars from foreign buyers hailing from around 70 countries visited Expo Pakistan 2013. Major delegations are from US, Japan, Malaysia, Poland, Netherlands, Hong Kong, China, Iran, Singapore, Sri Lanka and Indonesia etc. Over the last few years, Expo Pakistan has been developed into a reputable international event where Pakistani exhibitors showcase their products to international buyers. This year around 550 exhibitors across

Pakistan are displaying their products. This fair is a one-stop forum for the foreign buyers to view full range of Pakistani export products and develop long-term business relations. For enhancing exports of engineering goods fr o m P a k is t a n E D B h a s b e en successfully organising international trade fairs and exhibitions exclusively for Pakistan’s engineering industry, which has entered into joint ventures with international companies as a result of EDB’s efforts of market expansion. The State Minister for Commerce and Textile Industry Khurram Dastgir praised the variety of engineering items being displayed at EDB’s Engineering

Pavilion. Commercial Counselors from various countries including Europe, Africa and Middle East also visited EDB’s Pavilion to ascertain the exportability of local engineering products. They expressed their gratitude to EDB for displaying a vast variety of products ranging from auto parts, domestic appliances, motorcycles, tractors, heavy engineering goods, automotive batteries, pumps and motors and agricultural equipments etc. The delegations from foreign countries including India, Netherlands, Mauritius, Nigeria, Saudi Arabia and UAE etc showed keen interest in Pakistani products. EDB also orga nised a workshop to support the local businesses in collaboration with PUM and ensured the provision of free services of Senior Volunteer Experts from Netherlands to boost engineering exports. Most of the exhibitors, chambers of commerce and industries, various business associations expressed keen interest in getting such services from the senior experts through EDB. staff report

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Automotive Sector - Update

India-Pakistan business meet in Delhi next week The second meeting of the IndiaPakistan business council will be held in Delhi next week, Pakistan High Commissioner to India Salman Bashir said here Monday. Interacting with a group of business leaders at a meet organised by the Confederation of Indian Industry (CII), Bashir said the council had already set up four task fo rces to iden tify, recommend and initiate the process of partners hip in differen t s ectors. The council, set up by the commerce ministries of the two nations and comprising 15 business leaders from both sides, held its first meeting in Islamabad in June. The high commissioner said Pakistan was keen to take pragmatic steps to prom ote tra de and economic cooperation with India. "We are very keen to move and take pragmatic steps to build mutually beneficial cooperation which should be full spectrum in realms of trade, economic cooperation and also in terms of add-ons we can mutually do in terms

of technology," he said. "We have lot of hope and expectation that this process of businesses chairing the relationship especially in economy and trade would make very substantive difference not only to businesses but to the whole context of relations between t h e tw o c ou n t rie s ," h e a dd ed . Bashir said they had in Prime Minister Nawaz Sharif a businessman "who thinks like a businessman and sees great merit in taking strong solid steps for business with India". The high commissioner urged the business leaders to factor in Pakistan in their respective business plans. He said the two neighbours had several positives like contiguity and complementariness in many sectors. "This is first time I am visiting this part of India. It is indeed reliving in the sense that you don't get full picture of this great, beautiful and diverse country unless you visit city like Hyderabad," there is ample potential in other parts of India," he added.

Tusdec begins construction of engineering centre at Hub Technology Up-gradation and Skill Development Company (Tusdec) has commenced construction of 'light engineering upgradation centre' at the Hub Industrial and Trading Estate (HITE) in Balochistan that would be completed at Rs 217.89 million. A company spokesperson said on Monday that project will tentatively be completed by March 2014. Land measuring 8,000 square meters has been provided by Lasbela Industrial Estates Development Authority (LIEDA) to set up the centre for SMEs in Balochistan. The project is being implemented in collaboration with Asian Development Bank, as a part of Government of P a k i s t a n 's 5- y ea r S M E Se c t o r Development Programme. Under this collation, two more Engineering Support Centres are going to be set-up in Hyderabad and Peshawar. Tusdec is setting up 'light engineering upgradation

centre' in close collaboration with Lasbela Chamber of Commerce and Industry (LCCI) which would promote SMEs in Balochistan so as enable them to enhance their production through contemporary product design facilities, manpower training on latest techniques and equipment, technical assistance and consultancy services. Automobile, match manufacturing, plastics, auto parts eng ineering, electrical goods manufacturers, metal parts and products manufacturers will be the prime beneficiaries of this project. B oth Tusdec an d LCCI are fully committed to complete the project in due course and chalk out a future s t r a t e g y t o f a c i li t a t e f u r t h e r technological advancement and skill d evelopment in the p rov in ce of Balochistan utilising the services of this C en tre, th e s po kes pers o n sa id.

World Engineering Congress concludes

The 5th World Engineering Congress ( W E C ) o rg a n i ze d b y P a k i s t a n Engineering Council (PEC) under the umbrella of Federation of Engineering Institutions of Islamic countries Islamabad concluded here last month. WEC was organized in collaboration with leading engineering institutions including National University of Science and Technology (NUST), Institute of Engineers Pakistan (IEP), COMSATS, N at io n a l E n g in e erin g Ac ad em y (NEA) of Kazakhstan and Malaysia society of Science Engineering and Technology which is first of its kind in Pakistan. Minister for Science and Technology Zahid Hamid was the chief guest at the occasion and said it is not only an honor for PEC but for the entire country to host such a mega event to deliberate issues those are engineering centric and providing a plate form for the Islamic countries to once again join together through meeting on the eve of 5th WEC. He further said that he is happy that PEC is engaged in the advancement of engineering profession in the Country. “Besides other professional activities P E C is c o mm i tt e d fo r q u a lit y Engineering Education,” he said adding that the Muslim World lags behind the W es ter n W or ld in s ci en ce a n d Technology. He said that the Muslim countries must bridge this gap by holding conferences like this one is timely step towards right path. “In order to remove this gap we need to produce high caliber scientists and engineers,” he added. Secretary General Engr. Dr. Gulbazar, Rector NUST Engr. Muhammad Asghar, Chair IEA Governing Group Mr Basil Weiklen, Senior Vice Chairman PEC Engr. l. A. Osmani, Convener of this event Husnain Ahmed and other foreign delegates were present at the occasion.

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Automotive Sector - Update

Tractor industry sale plunges by 43 per cent Tractor industry sales have plunged by 43 per cent annually and 49 per cent monthly respectively. Fiat sales were 62 per cent YoY down and 11 per cent MoM respectively, however, Massey Ferguson whose sales were down by 23 per cent YoY bounced back by 96 per cent on monthly basis. Latest figures reveal that sales of HCAR have increased by 41 per cent YoY and 8 per cent MoM, PSMC sales were up by just 1 per cent YoY basis while on MoM basis PSMC’s sales were up by 5 per cent. INDU sales have declined by 6 per cent YoY basis however on MoM on basis INDU showed sales were up by 13 per cent. Market Share of HCAR went up to 19

per cent in2MFY13 from 14 per cent in 2MFY13, PSMC lost 2 per cent of its market sha re fro m 56 per cent in2MFY14 to 54 per cent in 2MFY13 while INDU has also lost its market share by 3 per cent to 27 per cent in2MFY14 as against the market sheet share of 30 per cent in 2MFY13. Atlas Honda Limited maintains its position of a market leader with a huge margin as its market share has increased by 3 per cent YoY to 83 per cent in 2MFY14 as against the market share of 80 per cent in 2MFY13. Increase in General Sales Tax from 16 per cent to 17 per cent, imposition of withholding tax at the time of purchase of new cars and enhanced turnover tax

to 1 per cent are the factors seems to be impacting the negatively while reduction in Corporate tax by 1 per cent to 34 per cent coupled with restrictions imposed on the import of cars older than three years proved to be somewhat favoring factors. Persistent depreciation of the Pak Rupee against the US dollar has increased production cost as imported parts are being used by the local players. This might lead the local assemblers to opt for yet another price hike as we believe that the rise in POL prices will continue to keep the inflation on higher side and macro economic imbalance will continue to persist.

Subsidised tractors

Growers cry foul as govt alters project policy The Sindh government’s scheme of providing tractors at subsidised rates to agriculturists has hit a controversy as farmers’ representatives allege that the dis tr ibut ion p ro ces s sm a ck s o f favouritism. In a deviation from the past practice of aw a rd in g t h e t ra ct o rs t h ro ug h computerised lucky draws, the criteria for award has been changed to first come, first serve basis this time around. Under the scheme, the Sindh Agriculture Depar tmen t o ffers s ubs idies o f R s 2 0 0 , 0 0 0 o n t r a ct o rs w o rt h Rs800,000 or less and Rs300,000 for tractors priced at more than Rs800,000. A total of 1,200 tractors will be subsidised by the government. A sum of up to Rs300 million has been allocated for the project. An advertisement in this regard was published in several newspapers on August 27. The government advised that interested farmers should obtain forms from branches of the Sindh Bank and to submit them with details and a

demand draft of Rs25,000. It was stated in the ad that the process of receiving applications will be closed when the 1,200 mark was achieved. On Aug u st 3 0 , th e Agric ultu re Dep a rt m en t p ub lis h ed a n o t he r advertisement. It informed the growers that the set target had been achieved in just two days an d that no more applications would be accepted. The growers, however, said that they would challenge what they described as the flawed process in the court of law. “Form Seven is among the required documents which are submitted along with the application. It is not possible for such a large number of applicants to obtain this form from the revenue department within a day or two,” said Abdul Majeed Nizamani, the president of Sindh Abadgar Board. Nizamani, alleging favouritism and a lack of transparency in the scheme, maintained that the deserving farmers were unlikely to benefit from it. He pointed out a huge disparity in the

number of applications submitted to the government last year, suggesting that the current speed of submission was absurd. In 2012, the government had put on offer approximately 3,000 tractors. By the November 20 deadline, however, less than 500 applications for the lucky draw were received. “The government has been carrying on this scheme from the past four years. Although there were complaints about the lateral issues, the distr ibut ion pro cess thro ugh computerized draw was acceptable to all,” said Nabi Bux Sathio, a grower and leader of the Sin dh Chamber of Agriculture. Another grower, Mian Saleem, called for instituting an inquiry to ascertain why the balloting criteria was replaced with first come first served basis. “The whole exercise should be cancelled and the government should announce anew the scheme for 2013-14 based on the computerized draw process.”

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Monthly AutoMark Magazine

CNG Sector - Update

Gas utilities propose closure of all CNG stations in winter St at e- o w n ed g as u t ilit ie s ha v e dispatched a gas load management plan for winter season to the ministry of petroleum & natural resources and recommended the government to close all CNG filling stations during the upcoming months of January and December. This shocking disclosure would end the hope of 3.7 million CNG consumers desperately expecting a sigh of relief from the PML-N government. This proposed plan if successfully gets necessary approval of the ECC then the masses who are already bearing the brunt of sky rocketing prices of petroleum products (POL) would be deprived of the cheap fuel facility during the peak winter season. The closure of CNG for two long months would also increase the import bill and would

ultimately increase extra burden on national kitty besides worsening the miseries of CNG consumers and general public in the shape of hike in the prices of oil and essential commodities. Well-informed sources in petroleum ministry told TheNation that viewing the expected acute gas shortfall during December and January, gas companies have dispatched a gas load management plan to the ministry of petroleum for the winter season. The gas utilities have recommended the government to shut country’s Compressed Natural Gas (CNG) filling stations in December 2013 and January 2014. They said that though the closure of CNG filling stations situated in Punjab province would be imperative yet the CNG filling stations located in Sindh, Khyber Pakhtunkhwa and Balochistan would also witness

Ogra seeks to design new safety mechanism The Oil and Gas Regulatory Authority (Ogra) has directed the concerned departments to formulate a new safe and sound CNG installation mechanism with the purpose to ensure safety of CNG cylinders and kits in Public Service Vehicles (PSVs). This decision was taken on last month at a high-level meeting of the authority cha ired by Saeed Ah med K han , Chairman Ogra who directed the Hydrocarbon Development Institute (H DIP ) a n d C hief I n sp ecto r of Explosives (CIE) to come up with a soun d and safe design as bein g departments responsible for installation of cylinders in PSVs. Over 90 percent of the PSVs including mini buses, vans, taxis, rickshaws are operating on CNG, while a total of 3.5 million vehicles are on CNG across the country. The chairman has also asked the CNG Association besides HDIP and CIE to increase CNG vehicles certification and also the number of certifying workshops throughout the country. It was decided during the meeting that the HDIP should have at least one certifying workshop in each district and multiple

in big cities. The meeting was convened due to the recent fire related accidents in CNGfitted PSVs and subsequently action of law enforcement agencies against uncertified vehicles, disconnection of gas supplies of CNG stations by Ogra on account of refueling uncertified PSVs installed with cylinders beneath the seats. Secretary Transport Punjab, Additional Secretary Transport Sindh, Director Transport KP, DIG (Traffic) Karachi, SSP Traffic Peshawar, SP Traffic Rawalpindi, SP Traffic Islamabad, Representative of Chief Inspector of Explosives, Director HDIP, MVEs, CNG Associations, transport unions and senior officers of Ogra were also present on the occasion. The meeting was about the recent accidents and their causes and legal responsibilities of various departments for ensuring safety in PSVs. It was unanimously agreed by all participants that the causes of accidents are poor and substandard installations and fittings in PSVs. Transport unions raised the issue of cylinder location, which was supported by CNG Association s.

closure in the said span of time. And, supply of gas to the power and industrial sectors would also be decreased besides two months closure of natural gas supply to the fertilizer sector of the country. Official sources on the condition of not to be named told about worst kind of gas shortfall in peak winter season particularly in December and January. They said the CNG, power and industrial sector of the country should get ready to bear the brunt of complete gas closure in the chilly winter season or to some extent at least the two months gas supply suspension. About the implementation of said gas load management plan to the ministry, they said prior to implement the plan, the government will have to seek final approval of the federal cabin et’s econ omic coordination committee (ECC). On the other hand, when contacted with senior stalwart of All Pakistan CNG Association (APCNGA) to know his point of stand over the proposed supply suspension of natural gas to the CNG filling stations, Ghiyas Abdullah Parcaha first deplored over the shocking news and later declared that the CNG association w ould not allow the incumbent regime to increase woes and worries for the CNG sector. He said,” We would announce our strategy the day after tomorrow as a meeting is scheduled with petroleum minister today (Wednesday) while another is with the officials of oil and gas regulatory authority (OGRA) on Thursday.” He said like outgoing PPP-led regime the incumbent PML-N government is also following the ill-conceived suggestions and policies of the bureaucracy with regard to once robust CNG industry of the country. Ghiyas Abdullah Parcaha also told that members of the executive committee of the APCNGA have reached here in the federal capital to devise a unanimous strategy against the unannounced gas load shedding, gas pricing and the state of affairs in the Oil and Gas Regulatory Authority (OGRA) and in the gas utilities. The meeting of executive members would devise strategy how to deal with the issues being faced by the CNG sector, he added.

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Economy Sector - Report

A New Era for the Indian Subcontinent India and Pakistan A new chapter that includes better relations with its powerful neighbour, India, with whom there have been many problems over the years. At present India has some trade with Pakistan and Bangladesh; the question remains: can this be increased to promote peaceful relations between these countries? Can the ruling parties solve the acute problems of terrorism and civil unrest? Introduction In its 66-year history, Pakistan has witnessed three military coups and extended rule by army generals, but now there is a suggestion, or hint, that a new chapter has begun followin g the country’s elections in May. A new chapter that includes better relations with its powerful neighbour, India, with whom there have been many problems over the years. At present India has some trade with Pakistan and Bangladesh; the question remains: can this be increased to promote peaceful relations between these countries? Can the ruling parties solve the acute problems of terrorism and civil unrest?

India Cement demand to grow India’s demand growth has been subdued, primarily due to a difficult macro environment and political paralysis. As a spokesman for Holcim told World Cement, “This affects the current price and volume development. Cost inflation pressure has partly eased as a result of a lower industrial output a n d fla t im ported coa l prices”. What of the Indian cement industry’s future? Some reports are upbeat, suggesting that the industry is expected to add 30 – 40 million tpa of capacity this year. The latest figures from Indian Brand Equity Foundation (IBEF) indicate that the industry has a current capacity of 324 million tpa, operating at 75 – 80% utilisation. With 183 large plants and over 365 small-scale plants, India is the world’s second largest producer of cement. Credit rating agency CARE Ratings, in its report The Indian Cement Industry, FY2013-16, predicts economic growth will increase from 5% during FY2013 to 7.8% during FY16 and that cement demand will run parallel at a CAGR of about 7.9% during the same period. The increasing focus of the

g o v e r n m e n t o n s t r en g t h e n in g infrastructure, promotion of low-cost affordable housing, and pre-election spending will drive cement demand. Himanshu Jindal, Senior General Manager Finance, HeidelbergCement India Ltd, concurs. “We expect cement demand to grow in the coming years as it is anticipated that softening of interest rates and inflation would revive the demand for cement from individual house builders’ segment and large infrastructure and real estate firms. Increases in industrial production and economic activities due to recent government initiatives to improve GDP growth are also likely to boost cement demand.” He points out that the sector has seen significant capacity additions during 2008 – 2010, primarily in South India, leading to demand-supply mismatch. “How ever, we expect the demand/supply position to reach near

equilibrium around 2015 as there are no major capacity additions until 2016 due to higher replacement costs, unavailability of land and mining reserves for setting up greenfield projects and low operating margins at present. This will also improve the plant capacity utilisation of cement firms in the future, which we calculate to be around 70 – 75% at present.” This is a little lower than the figure from IBEF. Initiatives, investments and acquisitions The latest report from the working group on the cement industry for the 12th Five Year Plan states that India would need to add another 150 million t of capacity to keep pace with the activities in the business, financial, real estate and infrastructure sectors of the economy. L a s t ye ar , AC C a n n o u n c ed a n investment of Rs.3300 crore by 2015 to set up three grinding units and a clinker facility. One grinding unit and the new grinding facility will be set up at Jamul in Chhattisgarh where the existing facilities will be phased out. The new unit there will have a capacity of 2.79 million tpa. The other grinding units will be located at Sindri in Jharkhand and Kharagpur in West Bengal. In May of this year, Lafarge SA signed an agreement to raise €200 million through capital increase subscribed by Baring Private Equity Asia, and representing a 14% minority stake in Lafarge India Private Limited. The investment will fund Lafarge’s growth plans in India. Two months later, CRH announced that My Home Industries Limited (MHIL) had reached an agreement to acquire 100% of the shares of Sree Jayajothi Cements (SJCL). This company has a 3.2 million tpa cement plant based in South India. With the addition of SJCL, MHIL becomes the market leader in the Andhra Pradesh region of South India. Holcim has announced that it intends to streamline the ownership structure

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Economy Sector - Report of its operations in India by increasing its shareholding in Ambuja Cements Ltd to 61.39% and in turn Ambuja will acquire Holcim’s 50.01% stake in ACC Ltd. The transaction is subject to regulatory and shareholders’ approval later this year. Meanwhile ACC Mineral Resources has entered into a JV with an MP state-run company to develop a coal block at Bicharpur in North-Central India. This is to mitigate the continuing threat of steadily increasing coal prices, shortfall and volatility in quality. Furthermore, Holcim will expand the Marwar Mundwa project in NorthCentral India with an overall capacity of 4 million tpa. No surprise to learn that the Swiss major continues to look for opportunities to further optimise its Group structure in the country. At present it is evaluating additional brown and greenfield investment proposals such as those involving ACC Tikaria and Ametha. HeidelbergCement India recently completed a brownfield expansion to raise its Indian production capacity from 3.1 to 6 million tpa at its Damoh and Narsingarh plants in Damoh (M.P.). The company has also expanded cement capacity from 0.8 to 2.7 million tpa at its Jhansi grinding plant in Uttar Pradesh. One of the major highlights of the project was the construction of India’s longest overland belt conveyor, which carries limestone from the mines at Patharia, Damoh, to the Narsingarh plant, a distance of some 38 km.

A New Era for the Indian SubcontinentPakistan Can the new regime deliver? “Pakistan grapples with rising tide of extremist violence”, reads a headline in a recent BBC News Asia report. “All over the country, in Karachi, Quetta and Peshwar there are bomb blasts, targeted killings and suicide attacks”. The u n d erly in g t h em e imp lies t ha t successive governments have failed to implement counter-terrorism policies. The question remains, can Nawaz Sharif, elected as the Prime Minister in June of this year, answer his critics who suggest that his top priority is the economy and that he has no coherent security policy? His response is that he has been holding

meetings with military and intelligence agencies and has called for the police authorities to map out a comprehensive strategy using modern technology and better policing. Sharif has said that terrorism had severely affected trade and the economy, and the country is facing an energy crisis. The new leadership in the country will also seek to alleviate the deep-seated historical fear and mistrust between Pakistan and India.

Continued investment While terrorism remains a deadly and daily threat in Pakistan, it has so far not deterred foreign investment. Sharif recently held meetings in Beijing with China’s President Xi Jinping, during which a number of pacts were signed, including one for the construction of an ‘economic corridor’. This will be a 2000 km transport project (road and rail) connecting the city of Kashgar in northwestern China to the Pakistani port of Gwadar. China wants to see the transport project become a reality, even though as one South Asia expert predicts, “the project will not be finished within the next five to ten years due to the volatile situation in Pakistan”. China is keen to find new routes for oil imports rather than having to navigate through the Strait of Malacca near Singapore. “The new economic route will run from the Arabian Sea to the Xinjiang region and could be used to transport crude oil from West Asia to China,” said the expert. At the same time, China Internation al W ater and Electric Corporation announced an investment of US$6 billion in energy projects, including hydropower installations, over the next five years. China is not the only country with business potential in Pakistan. Turkey has decided to invest US$1 billion in the country’s communications, textile and automotive sectors over the next three years. Britain’s Prime Minister, David Cameron, and Nawaz Sharif have pledged a new target of increasing bilateral trade to £3 billion by 2015, up from the previous commitment of £2.5 billion. There are over 100 British companies operating in Pakistan, including Mott MacDonald, a company that specialises

in infrastructure development. At the end of June 2013, UK-based Orion Energy and Pakistan Petroleum Ltd agreed to work together to develop the offshore and gas potential of Pakistan. The Joint Venture Study will cover the entire Indus and Makran offshore areas. Just after Pakistan’s general election in May, the Japanese Investment Group IT, in an interview with Pakistan’s The N ew s, indica ted th e Group w as preparing a large investment project, valued at US$100 million, which would create thousands of jobs generated by the construction of a large industrial zone at Dhabeji.

Rising production As implied earlier, the new government is giving due importance to developing the country’s infrastructure as well as accelerating economic growth. It is said that Pakistan has the ability to consume the installed cement capacity of 44.7 million t. Domestic cement sales reached 25.1 million t in fiscal year 2012/13 (to the end of June). The All-Pakistan Cement Manufacturers Association claimed that this was the first time domestic sales had risen above 25 million tpa. In total the industry despatched 33.4 million t in 2012/13, including 8.3 million t in exports. The Trade Developmen t Authority of Pakistan reported that the cement industry exported US$421 million worth of cement during the first nine months of fiscal 2013, up nearly 23% compared with the same period last year. The Print media reported that profits in the 20 listed cement companies reached almost Rs.28 billion for the first nine months of the financial year that ended 30 June 2013, up 18% on the same period in 2012. Falling coal prices with declining in teres t rates h ave spurred th e profitability of the cement sector. In 2011, Pakistan’s fourth largest cement producer, Fauji Cement Company, completed a 2.3 million tpa expansion project. In a first for German cement plant equipment suppliers delivering to Pakistan, ThyssenKrupp Resource Technologies (formerly ThyssenKrupp Polysius), Loesche and Haver & Boecker, together with ABB Switzerland, were involved with the installation of the new 7200 tpd line. The company now has 8% market share compared to an average 6.6% in 2012.

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Export Event - Glimpses

Monthly AutoMark Magazine

Orient Automotive participated in Expo Pakistan-2013 Exhibition Karachi Expo Center 26-29

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International Automotive Industry - Update

Monthly AutoMark Magazine

American auto sales seen at annual 16m with profit The US auto market is poised for a fifth straight year of growth for just the second time since World War II. The recovery from the recession has been so robust that the debate is now whether sales will reach 2000’s record levels — and whether that would even be a good thing. Deliveries of new cars and light trucks may rise to 16.1 million next year, the average estimate of 13 analysts in a survey by Bloomberg News. That’s about 500,000 more vehicles than automakers are on pace to sell this year and while it’s within reach of 2007’s 16.15 million, it’s well short of the 17.4 million peak. Since the annualized pace of auto deliveries in August exceeded 16 million for the first time in six years, analysts have been looking back at the last time sales were so brisk. Six years ago, while sales were still above 16 million, Detroit was losing billions, saddled with high costs and poor cars. “It’s not just the number 16 that’s amazing,” George Magliano, chief economist for IHS Automotive, said by telephone. “It’s the fact that it’s coming effortlessly. We’re not dumping cars and trucks into the fleets. We’re not using humungous incentives to move them. It’s a reflection of people’s willingness to buy and the strength of the product out there.” Five Straight: The last time US sales rose for five straight years was 1996 to 2000, when the Detroit Three profited from booming demand for pickups and SUVs and let their car lines atrophy. As gas oline prices ro se, th ey w ere unprepared for shifting tastes. So even as annual sales remained in excess of 16 million, Detroit fell further behind. The natural midpoint for US sales is probably about 16 million per year, said Mark Wakefield, a managing partner for AlixPartners LLP, a consulting firm that advises on restructurings and has worked with auto companies including GM. (GM) He’s concerned about deliveries racing beyond that toward 17 million or more and the payback that will follow. “I care less about the natural mid than about how far this cycle is going to go beyond that, and then when it will come

back, because I know it will,” Wakefield said in an interview. 16 Million: Since the annualized pace of auto deliveries in August exceeded 16 million for the first time in six years, analysts have been looking back at the last time sales were so brisk. Six years ago, while sales were still above 16 million, Detroit was losing billions, saddled with high costs and poor cars. “It’s not just the number 16 that’s amazing,” George Magliano, chief economist for IHS Automotive, said by telephone. “It’s the fact that it’s coming effortlessly. We’re not dumping cars and trucks into the fleets. We’re not using humungous incentives to move them. It’s a reflection of people’s willingness to buy and the strength of the product out there.” Dumpster Diving: “It’s doable, but we’re going to have to do some dumpster diving for that,” Jonas said. Lenders tend to extend too much credit to car buyers at the top of an economic cycle and contract too severely in a downturn, he said. “When times are good, they’re really good. And when times are bad, they’re awful.” The bad times were worst for General Motors Co., Chrysler Group LLC and Ford Motor Co. (F) The first two filed for governmentbacked bankruptcies in 2009. The latter avoided that fate by borrowing $23.4 billion in late 2006 to fund a costly restructuring outside the courts. Today, the three have overhauled their lineups and are fielding some of their best passenger cars in a generation. Cons umer R eports la uded GM’s Chevrolet Impala as the best sedan on the market. Ford’s Fusion is taking market share from Toyota Motor Corp. (7203)’s Camry and selling at premium prices. All Segments: “It would be one thing if the domestics were going to get better in cars and pull back on trucks, but they aren’t,” Tom Libby, an analyst for R.L. Polk & Co., said by telephone. “You see a rising level of competitiveness for the domestics across the whole industry, which is forcing the Asians to be more aggressive just to maintain where they

are.” No car reflects the extent to which Asiabased automakers have been put on the defensive better than Toyota’s Camry, the No. 1-selling U.S. car for 11 consecutive years. The Toyota City, Japan-based company plans to protect that position, Bob Carter, senior vice president its US sales unit, told the Automotive Press Association this month in Detroit. “I know that you’ve read many of the articles out there that we’re piling on the incentives on Camry,” Carter said. “Well, versus historical Toyota averages, yes we are. Toyota has increased our sup port fo r Cam ry becaus e it’s appropriate for this highly competitive and large segment.” A total of 376 models will be introduced in the U.S. from this year through 2015, according to Polk. Replacement Demand: Those new cars and trucks are likely to draw more buyers as Americans’ vehicles age to about 11.5 years old on average, Itay Michaeli, an auto analyst for Citigroup Inc., said by telephone. Vehicles in the US market historically have been scrapped at a much higher rate when they reach about 13 years old, Michaeli said. At that point, replacement increases significantly, according to Citigroup’s research, and since the top sales years were 1999 through 2006, that time is coming. “No later than 2015 will that inflection occur,” he said. “It’s a pleasant surprise to think that maybe it’s starting to occur now, earlier than expected.” For now, automakers can celebrate that they’re back to pre-recessionary levels even in the face of tepid economic growth and industry-specific challenges, including drawing younger buyers and urban dwellers who increasingly have access to alternatives like public tran sport ation a nd ca r s ha rin g. “We spend a lot of time talking about what’s turning people off from buying cars and trucks,” IHS’s Magliano said. “Well, it seems that people are really predisposed to buying cars and trucks. We’ve got some legs from here.” courtesy to bloomberg

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

Anger Management..... Why Do Customers Get Angry? Feeling disrespected is the primary cause of customer attrition defend themselves.

“A real or perceived prejudice: Customers carry around in their mind an image of how life should be, and when reality does not match these expectations, they feel upset,” expressed by Psychiatrist and Dr. David Burns, author of Feeling Good. Avoidable Annoyances

Angry customers can be unnerving, and unfortunately are a common part of every business. Customers become upset for various reasons, many of which are under you and your origination’s control to prevent at the initial phase. However, sometimes their anger is justified; sometimes it's not. Either way, in working to resolve their anger, it helps to know what caused it. The easiest way to handle upset customers is to not make them angry in the first place and keep them from ever getting that way. According to psychologists, anger is a natural response when customers are challenged, threat, hurt, or at risk, by preparing physiologically to fight or

Annoyance is an unpleasant mental state that is characterized by such effects as irritation and distraction from one's conscious thinking. It can lead to emotions such as frustration and anger. As Rebecca Morgan, author of Calming Up s et C us t o me rs , s a id , “O ft en customers com e to you w ith an a n n o ya n ce a n d d is s a ti s fa ct io n . Depending upon how you interact with

your customers, you can either deescalate their upset, or you can send it sky high”. Angry customers express their inner st res s an d emo tion by ext ern al expression, body language, actions and reactions with little or no patience. They are unpredictable, impatient and even downright rude at times. You can't control a customer’s behaviour, but you can change your behaviour to avoid causing annoyance. To better understand why customers get angry in the first place, it’s probably helpful to put yourself in the place of the customer. You are, after all, a customer too. What makes you angry or upset? Chances are the same things that press your hot buttons have the same effect on your customers. By focusing a bit on these issues you can reduce the stress and headache that come with unhappy angry customers. The following are some areas for you to watch to make sure you’re doing everything you can to keep them from going through the roof. These areas are a lot to be conscious of, so practice and become aware of any habits you may have that would increase a customer’s anger. This way you can work on eliminating these annoyances for which you or your business organization have some respo nsibility for causing .

Feeling disrespected is the primary cause of customer anger. Respect should be the cornerstone of

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customer service. It should be the one concept that is emphasized throughout organization ranks from upper level management all the way to frontline employees. In fact, frontline employees who are treated with respect by their companies are far more likely to treat their customers with the same respect as well.

Someone was rude, indifferent, or discourteous to them. Nothing can make a customer angry more quickly than rudeness. Many times the customer is perceiving, not receiving, rude treatment. Again, perception is a reality in the customer business. Many times discourtesy is unintentional; you may not have thought about your statement before your blurt it out. Everyone has a right to express their emotions. Telling them they have no right to be angry will make them even angrier

Customersâ&#x20AC;&#x2122; expectation was not met; they were promised something that was not delivered. If you promised the customers you would get back to them and you didn't, such as an update on a new car delivery period or car repair status, then they may become upset. For example, you promised the customers you would install a hood protector and body side mouldings as part of sales contract and customer found them missing at delivery time, sure they will be angry. With good reason, most of us become upset when people promise action and don't follow through.

Customers can get embarrassed by doing something incorrectly. Make sure the customers understand that they need to know before they try to use your product or service. Maintain effective communication at every level of transaction. Go over any dealership

internal procedures, such as terms and conditions about new or used car sales contract, repair order and over the counter parts sales warranties and return polices specially on electrical parts beforehand. That way you'll have fewer customers who are angry because of a misunderstanding due to poor communication.

Customers don't feel they were listened to This is perhaps the most troubling reason of all why customers get upset. If your customers feel as though they are being ignored, they will resort to behaviours that will get their attention. They want to be listened to. They don't want to have to repeat themselves.

Their integrity or honesty has been questioned Treat customers with respect and dignity. If there is a problem, assume your dealership has made the mistake until proven otherwise. Instead of, "You didn't pay us," say, "We don't have a record of receiving your payment. Work to eliminate body language, voice tone, or facial expressions that convey distrust. Avoid projecting an "us versus them" attitude about customers. Never call a customer a deadbeat, liar, cheat, thief, etc. Never threaten a customer.

You or someone in your dealership argued with the customers As Dale Carnegie said, "The only way to get the best of an argument is to avoid it." This is especially true with customers. If you argue with a customer

you always lose-even if you win the argument. It's not good for the other customers to witness an argument. They won't like seeing you treat a customer poorly, whether or not the customer was in the wrong. No one wants to have angry customers. Anger is a toxic emotion that will have negative consequences on your business reputation. Customers who have issues or problems start off frustrated. If the issue or problem is not addressed and resolved, the frustration mounts and can turn to anger. Angry customers are unpredictable, impatient and even downright rude at times. They will not only stop doing business with your dealership they will lash out against the dealership. You must recognize the source of anger and move to fix it, or risk losing business. And as an added incentive, social media serves as an amplifier. An angry customer can get many more customers angry at your dealership. By the same token, satisfied customers can share th eir app ro val on social media. Customer satisfaction is essential to your dealership's survival. Instil the value of this with your staff, recognize their commendable behaviour, and with the right attitude and techniques, many of these customers can be turned into satisfied customers. It's not always easy, but it's worth it. Finally, if you want more loyal and less angry customers, you should make the changes necessary to treat all customers with respect. If you do, far fewer wheels would find it necessary to squeak. Mohammad Shahzad S.A.E., D.M.P. (Automotive En gineer/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@b rim ellt oy ot a.c om or automarkpk@gmail.com

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Monthly AutoMark Magazine

Press Release

Crown Group participated in Expo Pakistan-2013 To showcase its motorcycles and locally manufactured motorcycle parts, at international level. Crown Group participated in Expo Pakistan-2013 was held from 26th to 29th September 2013, organized by Trade Development Authority Pakistan (TDAP) at expo center Karachi. This is the largest trade show of Pakistan. Crown group participated in this event with an objective to display the entire range of local manufactured quality products un der one roof for the assessment of international investors and buyers. Crown group is a leading company in automobile industry which provides quality products over a decade. It has maintained its position as a market leader for its quality and strong distribution network across Pakistan. It operations are not only restricted to Pakistan but it also operates in China, Bangladesh, Dubai and Afghanistan. With this, Crown group plays a major

role in economic development by generating revenue for country, it offers local manufactured motorcycles part at reasonable prices. The event covered by full range of local manufactured vehicle parts, different automotive companies displays their products. It has provided a platform to build up relations with international investors for future business ventures. Crown group showcased its motorcycles w ith wide va riety of it s lo cally manufactured motorcycles parts. The motive of CRLF participation in expo2013, specifically to promote local manufactured motorcycle parts at international level with quality and standards. For assessment of visitors officials and marketing team were also there. M r. Farhan Ha nif the CEO a nd

S.M.Kashif Qaseem Director of Crown group also visited the stall. They share their ideas of new developments, regarding CRLF production, working standards with foreign visitors. In addition, CRLF provides best service and quality spare parts to customers with long life reliability due to this reason hundreds of Chinese, Malaysian, African and other foreign investors visited CRLF stall for information and take interest in local manufactured parts. While one of an African investor shown keen interest in CRLF local produce parts and placed sample order of motorcycle and their order will be dispatched. It is an encouraging development for Crown group to establish more business contacts in international market to strengthen business internationally....

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Car / Light Vehicle Price List This space available for Advertisement SUZUKI

HONDA

Model Model MEHRAN VX 800cc Euro II MEHRAN VXR 800cc Euro II SUZUKI SWIFT 1.3L DX SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS Efi VXRI Euro II LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) BOLAN VAN VX Petrol Euro II SUZUKI VAN CARGO Euro II APV 1.5L GLX MT (Petrol) APV 1.5L GLX MT (CNG) JIMNY CBU JL SX MT JIMNY CBU JL DX MT

Price Price Rs. 610,000 Rs. 668,000 Rs. 1,201,000 Rs. 1,282,000 Rs. 1,418,000 Rs. 1,034,000 Rs. 1,465,000 Rs. 1,544,000 Rs. 690,000 Rs. 666,000 Rs. 2,318,000

Model Honda CRV Automatic 2400cc Japan Honda Accord Automatic 2400cc Japan 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)

Rs. 2,142,000 Rs. 2,293,000

Price Rs. 7,20,000 Rs. 7,70,000 Rs. 7,70,000 Rs. 8,20,000 Rs. 1,499,000 Rs. 9,99,000 Rs. 1,049,000 Rs. 3,85,000 Rs. 4,20,000 Rs. 1,285,000 Rs. 1,375,000

MASTER MOTORS DAIHATSU

Model Model

Price

Master Highland M-260 Rs. 1,188,000 Master Forland M-330 SUP Rs. 1,235,000 Master Grand M-410 SUP Rs. 1,720,000 Master Grande Bus Chassis YL41B Rs. 1,625,000 Fuso canter (Japan) Bus Chassis Rs. 2,950,000 Fuso canter (Japan) Rs. 3,025,000 Fuso Prime Mover (Japan) Rs. 9,450,000 Unit Price without Deck

Rs. 1,522,000 Rs. 1,663,000 Rs. 2,000,000 Rs. 2,232,000 Rs. 2,121,000 Rs. 2,353,000

TOYOTA COROLLA

Karakoram Motors Model Chery Standard Petrol Chery Standard CNG Chery Deluxe Petrol Chery Deluxe CNG Gonow Victor Gonow Troy Standard Gonow Troy Deluxe Gilgit (Double Cabin) Pet. Gilgit (Double Cabin) CNG Kaghan XL Petrol Kaghan XL CNG

Price

Model Model XLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.6 A/T 1599cc Petrol GLI VVT-i 1299cc LE 2.OD STD 2000cc ALTIS 1.6L Dual VVT-i MT ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT Cruisetronic ALTIS 1.6L Dual VVT-i AT SUNROOF Toyota Avanza (Up Specfication) Hiace Commuter STD 3.0L Hiace Commuter STD 2.7L - GASLOLINE

Price Price Rs. 1,551,500 Rs. 1,687,500 Rs. 1,868,500 Rs. 1,732,500 Rs. 1,839,500 Rs. 1,919,500 Rs. 2,015,500 Rs. 1,997,500 Rs. 2,105,500 Rs. 2,575,000 Rs. 3,444,000 Rs. 3,433,500

Coster High Roof 26 Seater F/L

Rs. 7,974,200

Hilux Pickup 4x sc Model

Price

Brand New Toyota Hilux Pickup, 4x2, Single Cabin, (Local Assembled)

Rs. 1,779,000

Hilux Pickup 4x4 D/C Model

Price

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

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,483,200

LAND ROVER Model

Price

Vigo Champ M/T Rs. 3,282,500 DEFENDER (WHITE ,BLACK,STRONG BLUE & SILVER )

STATION WAGON 90 Rs. 3,560,000

Vigo Champ A/T Rs. 3,483,500 STATION WAGON 110 Rs. 4,260,000 (WHITE ,BLACK,STRONG BLUE & SILVER )

(N/A)

Price updated Oct- 2013

International Automotive Industry - Update

Hero MotoCorp, Maruti Suzuki record unexpected sales numbers The country’s largest automobile and two-wheeler manufacturersMaruti Suzuki India Limited (MSIL) and Hero MotoCorp (HMCL) posted better than expected sales numbers in September, raising hopes of a turnaround in the industry with the arrival of the festive season. Though combined sales in the industry fell by 2.6% to 192,852 units on back of poor show by Tata Motors and Mahindra & Mahindra (M&M), automakers are cautiously hopeful of a revival around the festive season. While sales for the small car giant Maruti Suzuki in the domestic market went up by 1.8% to 90,399 units last month, exports surged by a whopping 180% to 14,565 units. The strong rebound in shipments overseas raised the total sales tally for the company, which went up by 11.7% to 104,964 units. Interestingly, sales for the company grew by 14.5% in the passenger car segment (cars and sedans) in the domestic market, but tepid demand in the utility vehicle segment (Gypsy, Ertiga) dragged down growth to a modest 1.8%. Overall, the market responded positively to the development with shares of Maruti Suzuki closing at Rs 1380, up by 1.62% on the Bombay

Stock Exchange (BSE). Sales of two-wheelers too went up for the second consecutive month hinting at an improvement in cons umer sentiments in the rural market. While wholesale numbers for Hero MotoCorp increased by 15.8% to 468,670 units in Se p t e m be r 2 0 1 3 , r i va l H o n d a Motorcycle and Scooter India (HMSI) saw record offtake of328,965 units – a growth of 35%. Anil Dua, senior v ice p res iden t (marketing & sales), HMCL said, “Our 16% growth in despatch sales in September has come on the back of a consistent seven% growth in our retails this year. This has been helped by strong performance of our models and our customer–friendly corporate initiatives such as the five-year warranty across our range and ‘Hero Mileage’ – the promise of extra kilometers per litre. With a slew of new offerings that we have planned, we enter the festive season with optimism and confidence.” General elections, favourable monsoon and a healthy rural demand may provide automobile companies the much needed reversal in sustained demand free fall witnessed in the past several months, say industry insiders....

Maruti Suzuki cars to go pricier by up to Rs. 10,000

Mahindra to hike prices by up to Rs.20,000

India's leading car maker Maruti Suzuki has now announced to hike the prices of its entire range by up to Rs. 10,000 from October first week, due to declining rupee value. The price hike will vary model to model and the new prices will come into effect from the first week of October.

Mahindra and Mahindra Ltd, India’s largest utility vehicle maker, will increase the prices of all its vehicles by Rs.6,000-20,000 each effective 1 October because of rising input costs and the devaluation of the rupee, the company said in a filing to the stock exchanges on Friday. Mahindra joins auto makers Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Toyota Kirloskar Motor Pvt. Ltd, Tata Motors Ltd, among others, who increased the prices of their vehicles earlier this month. The Indian rupee has depreciated 11.6% since January, and fell to a life-time low of Rs.68.85 against the dollar on 28 August. Mahindra’s shares were down 1.41% at Rs.840 each on BSE. The benchmark Sensex was down 0.84% at 19,727.27 points.

Monthly AutoMark Magazine

China open first free trade zone China open its first free trade zone, an ambitious effort to tran sform its commercial centre of Shanghai into a global hub, state media reported on last week. The project — which received official approval last month — will allow liberalised measures aimed at helping Shanghai compete with the likes of Hong Kong and London as well as push forward reform of the world’s secondlargest economy. “China officially launched the pilot free trade zone in Shanghai on September 29,” the official news agency Xinhua said. A draft plan seen by AFP earlier this month showed that the zone will remove controls on China’s yuan currency — a key obstacle in Shanghai’s ability to raise its international stature. Hong Kong’s South China Morning Post said the zone will even allow access to Facebook, Twitter and other websites banned nationwide. China’s censorship authorities strictly control online content for fear of political and social unrest that might undermine the ruling Communist Party’s control. Regulations in the zone will also be loosened in 19 business sectors from banking to culture, the draft plan showed. Premier Li Keqiang, who took office in March, hopes the project will be one of the crowning achievements of his administration, a nalysts and government officials have said. The area span 29 square kilometres (11 square miles) and incorporate an existing international airport, deepwater port, bonded zone and logistics area.—AFP

Hino Motors may miss sales target Japanese truck maker Hino Motors Ltd is likely to miss its sales targets in Indonesia and Thailand this financial year because of slowing economic growth and increasing competition, its p re s ide n t s a id o n la s t m o n th . Hino, 50.1 per cent owned by Toyota Motor Corp, still expects sales in its second and third-largest markets after Japan to grow year-on-year, though the pace of growth is slowing, President Yasuhiko Ichihashi told Reuters. He declined to give specific figures. Hino projects sales of 38,200 vehicles in Indonesia in the year ending March 2014, an increase of 14pc from the year earlier, and 24,800 vehicles in Thailand, up 36pc.-Reuters

www.automark.pk | October-2013 | Page 40

International Automotive Industry - Update

Monthly AutoMark Magazine

China is global auto industry's best hope At a time when Indian, Russian and Brazilian car markets are stumbling, China remains the major growth engine for the global automotive industry, analysts say. “For many years it’s been the BRIC nations (Brazil, Russia, India and China) which have accounted for the growth of global sales, taking over from the more mature markets,” explains Carlos da Silva, an analyst at IHS Automotive. Global automobile sales should still grow by three percent this year, according to t h e P a ri s - ba s e d I n t er n a t i o n a l O rg a n iza tio n o f M ot or V eh ic le Manufacturers (OICA), a trade body representin g ca r man ufa ct urers. But not all four BRIC countries are expected to see their car markets grow at the same rate. Some are already

declining. Sales of new cars in Russia, for instance, are expected to fall by around 7% this year to 2.7 million vehicles, predicts IHS Automotive. In India—hit by a triple whammy of high interes t rates, a sharp economic slowdown and rising fuel costs—car sales are expected to contract for the second year in a row after a decade of uninterrupted growth. Sales in Brazil are expected to remain stable at around 3.6 million cars, according to IHS. But it is in China where analysts see the real growth potential. Despite the current slowdown in the Chinese economy, sales should continue to rise, analysts predict. PwC expects the sale of new cars in

Toyota re-launches Innova at starting price of Rs 12.45 lakh Auto maker Toyota Kirloskar Motor on last weeky launched all new version of its multi purpose vehicle Innova, priced between Rs 12.45 lakh and Rs 15.06 lakh (ex-showroom Delhi), as it looks to enhance sales during the festive season. Launched with a new top-end Z variant, the new Innova comes with whole new set of features and is available in a seven and an eight seater options in both Euro III and Euro IV, Toyota Kirloskar Motor (TKM) said in a statement. “We believe, with the introduction of the new I nn ova , the own ersh ip experience of our customers will be further enhanced,” TKM MD and CEO Hiroshi Nakagawa said.

Commenting on the launch, TKM Deputy Managing Director and COO Sandeep Singh said that the new Innova is designed to offer more comfort, style and prestige that enhances its versatile nature, practicality and luxurious image. “W e a re ex tremely deligh ted to introduce this new offering to our customers during this auspicious festive season. The objective of the launch is to bring some energy to the sales,” he added. The new Innova comes with a new front bumper, fog lamps, side moulding and body graphics on the top-end version of the vehicle, Mr. Singh said.

China to double between 2012 and 2019, which would make the automobile market there “roughly the equivalent to both the European and United States combined”. The decline in car sales also coincides with a sharp slowing of the Russian economy—only 1.4% in the first half of this year, compared to 3.4% during 2012. Local authorities there are hoping to boost new sales by easing access to credit. At the same time, the medium term outlook for the global automobile market remains good throughout the BRIC countries. “More and more people have the desire to own, and for the first time can afford, a new car,” PwC concludes.

BMW, Hyundai, Kia affected by massive recall in China China's quality watchdog on last week a nnounced the recall of 181,492 defective cars produced by BMW, Hyundai Motor Group and Dongfeng Yueda Kia Motors. BMWis to recall 75,832 BMW 5 series cars due to problematic socket adapters in their tail lights , the General Administration of Quality Supervision, Inspection and Quarantine said in a statement. In separate statements, the watchdog announced that Hyundai Motor Group and Beijing-Hyundai will recall 64,795 cars to fix faulty brake pedals, while Dongfeng Yueda Kia Motors, a joint venture of Kia with two Chinese companies, will recall 40,865 cars for the same problem.

China's motorcycle production and sales volume continue to drop in August In August of 2013, China produced 1.78 million units of motorcycles in August, down 5.60 percent month on month, and sold 1.83 million units, falling 2.40 percent MOM and 8.10 percent YOY, driven by dropping demands for motorcycles, according to data from the Chin a Association of Automobile

Manufacturers (CAAM). The output of motorcycles amounted to 14.94 million units and sales stood at 15.16 million units in the first eight months of this year, slipping 3.60 percent YOY and 3.10 percent YOY, respectively, said Shen Shihua, director of the industry information department

of the CAAM, at a monthly meeting on September 10. It's learnt that the export volume of motorcycles continued to slump to 729,900 units in August, down 8.70 percent MOM and 2 percent YOY, marking the third consecutive month's decline.

www.automark.pk | October-2013 | Page 41

Monthly AutoMark Magazine

Automotive Sector - Update

Customizing your car

Toyota adds prayer-rug feature When buying a car, the first thought that tends to run through a buyer’s mind is usually the brand, the color or the need for a leather interior. Toyota is giving us a new option: a prayer-rug furnishing. To yo ta Ja pa n h as ex ec ut ed a n agreement with Toyota Saudi Arabia that some of Toyota’s models to a number of Gulf countries will include the religious add-on, reported Saudi Gazette on Thursday. The process of exporting the prayer rugs began four months ago, Jawaher alZahrani, Director of the Nafeesa Shams Academy for Arts and Handicrafts, told Saudi Gazette. The rugs are made by Saudi women who have been trained at the Nafeesa Shams Academy. The materials are supplied to the women at their houses where they undertake the weaving process A team of 250 Saudi women are working to produce the prayer rugs, according

An example of a prayer rug originating from central Persia in the late 16th or early 17th century. (File photo: Reuters) to the Saudi Gazette. Al-Zahrani told the newspaper that about 1,500 prayer rugs are shipped to Japan each month. The quality of the material used for the

rugs and the weaving process faces intense scrutiny, ensuring a finished product of high quality, he said.

Toyota Japan imports 18,000 Saudi Arabian prayer rugs Toyota Motors Japan bought nearly 18,000 prayer rugs from Saudi Arabia, as part of an agreement with Abdul Latif Jameel (ALJ)—Toyota Saudi Arabia, in coordination with Nafeesa Shams Academy for Arts and Handicrafts, a Bab Rizq Jameel (BRJ) affiliate, for importing prayer rugs produced by the academy, to be used in some of its models which are exported to Gulf countries. According to a statement issued by BRJ,

Jawaher Alzahrani, director-general of the academy, said the production of the prayer rugs began months ago and some quantities of the rugs have already been ex p o r t ed t o T o y o t a Ja p a n in collaboration with ALJ. The prayer rugs are made by Saudi Arabian females trained at the academy, and the materials are supplied to 250 women at their houses where they undertake the weaving process, the director added.

According to the director-general, nearly 1,500 prayer rugs are shipped to Japan every month. In terms of quality of production, the materials and weaving processes are subjected to strict supervision by a team designated by ALJ, the director added. The Nafeesa Shams Academy for Arts and Handicrafts entered into the agreement with ALJ few years ago to supply the prayer rugs for Toyota’s Lexus vehicles.

Toyota Auris Hybrid www.automark.pk | October-2013 | Page 42

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6. 7. 9.

Product & Model Name Dhoom YD-70 Hero RF-70 Hero RF-70 Plus Honda CD-70 Hi-Speed SR-70 Ravi Hamsafer Plus Ravi Premium R1 Bionic AS-70

Retail Price Rs. 50,400/= Rs. 46,000/= Rs. 47,000/= Rs. 68,500/= Rs. 43,000/= Rs. 45.500/= Rs. 46,500/= Rs. 44,500/=

125cc Motorcycle No. Brand & Model Name 1. Super Star SS-125 2. Super Star SS-125 DLX 3. Honda CG-125 std Euro II 4. Honda CG-125 DX 5. Ravi Storm 125

Retail Price Rs. 59,000/= Rs. 67,000/= Rs. 99,000/= Rs. 119,000/= Rs. 101,000/=

DYL Motorcycles Product & Sr./ No. Model Name 1. YD100 Mini 2. Junoon 100cc 3. YD Sports 125cc

Retail Price Rs. 65,500/= Rs. 79,300/= Rs. 10,6000/=

Sr./ No.

Product & Model Name 7. Ravi Hamsafar-70 8. Sitara GT-70 9. Super Star SS-70 10. Super Power SP-70 11. Super Power Delux 12. Unique UD-70

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

100cc Motorcycle No. 1. 2. 3.

Brand &Model Name Honda Pridor Super Star SS-100 Super Power SP-100

Retail Price Rs. 84,000/= Rs. 57,000/= Rs. 60,000/=

Suzuki Motorcycle Sr./ Product & No. Model Name 1. Sprinter ECO Euro-II110cc 2. Raider Euro-II 110cc 3. GD 110 Euro-II 110cc 4. GS-150 Euro-11 150cc 5. Inazuma GW 250 6. Intruder M 800 7. Hayasuba GSX1300R

Retail Price Rs. 83,400/= Rs. 91,400/= Rs. 105,000/= Rs. 111,500/= Rs. 675,000/= Rs. 1,500,000/= Rs. 2,400,000/=

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www.automark.pk | October-2013 | Page 45

Automotive Industry - Update

Eiji Toyoda, who expanded Toyota Motors globally, dies at 100

Toyota Motors’ Eiji Toyoda, who almost singlehandedly launched the car manufacturer into being the global automotive giants they are in the present, died today, September 17, at the age of 100. At 4:32 AM the former Toyota chief executive died because of heart failure while he was confined at the Toyota Memorial Hospital in Toyota City, Japan, as revealed in the official statement of Toyota Motors. Funeral services will be held for close family members on ly, the statement also said. Eiji, younger cousin of Toyota Motors founder Kiichiro Toyoda, led a successful 57-year career where the Japanese car company that started out making Chevrolet knockoffs became an automaker whose name has been the standard in manufacturing efficiency and has become the envy of automakers all over the world. Eiji stepped down from heading the company in 1994, and at that time, Toyota was already assembling Corollas in the United States, they had started and developed a new luxury car brand in Lexus, and had started developing what would now be known as the world’s most successful gas-electric hybrid vehicle, the Prius. Toyoda became president of Toyota Motor Co. in 1967 and led the company for 27 years, longer than anyone had done before him. Under his leadership, the Japanese carmakers were able to set up at least 10 new factories and built a reputation for manufacturing excellence. The Corolla, which Toyota started manufacturing in his time, has become one of the world’s the best-selling cars of all time. Eiji also led in the development of Lexus, the company’s luxury car brand in 1983, looking to compete with German giants MercedesBenz and Bayerische Motoren Werke AG’s BMW. Toyoda was then inducted into the U.S. Automotive Hall of Fame in 1994, making him the second Japanese to be honored after Soichiro Honda. Eiji was born in 1913, near Nagoya, to parents who were struggling with a textile business. He grew up working in his father’s textile mill, and was trained at a very early age to work with machines and how to run a business. He graduated from the University of Tokyo with a degree in mechanical engineering in 1936 and joined his uncle’s weaving loom business. In 1937, Kiichiro Toyoda founded Toyota Motor Co., and he took his younger cousin Eiji with him. Eiji got his hands trained on the factory floor before being promoted to production planning and finally becoming a director in 1945. The rest, as they say, is automotive history.

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