Automark magazine Oct 2014

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Contents

Reviews/Reports

Exclusives Articles 12 Are Chinese motorcycles posing

'threat' to the Japanese & Indian industry Or It's just another country doing business?

by Muhammad Yousuf Shaikh

13 31

14 Trade with India issue of Suzuki 18 Curious cases of Al-Haj Faw Motors

20

19 PAMA’s concerns on PAK-SRI LANKA

38

Free Trade Agreement

32 RUST… A Bitter Enemy!

Your Car’s Skin Cancer

by Muhammad Shahzad

Price List 40 Car/Light commercial vehicle price list 34 Motorcycle Price LIst

www.automark.pk

How Forklifts Improve Business Efficiency Making Innovation

Event PR

cars deferred to next AIDC meeting

by Owais Khan

automark magazine

Inside

October-2014

Multiple activities held for Dealers, Sub dealers and Auto electricians by Pakistan Accumulators (Pvt.) Ltd. Automechanika 2014 Frankfurt Germany

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

October-2014 edition Volume 07, Issue 10

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

Monthly

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

Advisors

Muhammad Shahzad

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

Advertising Manager Tahir Siddiqui

Circulation Manager Abdul Khaliq

Graphic Designer Salman Hanif

Web Master Murtaza Hanif

CONTRIBUTING IN THIS ISSUE M. Yousuf Shaikh Muhammad Shahzad Ali Hassan M. Owais Khan

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

Active Communications Tel : 021-32603371 Mobile: 0321-2203815 E-mail: automarkpk@gmail.com website: www.automark.pk

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

Govt urged to expedite AIDP Investment worth billions of rupees are at risk owing to the uncertainty over Auto Industry Development Program (AIDP).

The AIDP draft, which was prepared before the 201415 budget is reportedly being held back for consultation with various stakeholders. But no such meetings were being called.

Industries minister Ghulam Murtaza Jatoie should immediately start the consultation process with all the automotive producers and part makers, while formulating fresh long term auto industry development policy.

The outlines of next AIDP are said to be in its final shape and the ministry would soon convene the meeting of all stakeholders for consultation.

It would be wise to send the drafted AIDP to the stakeholders for comments as is the universal practiced in such case of sector specific policy around the world.

The concerned producers would then give their input and suggestions for further improvement in the policy.

Long term auto policy will determine the level of participation of the auto industry in the country, adding that many investments have been kept on hold pending the announcement of the AIDP. If government wants to create more jobs and pursue sustainable development, it must encourage local manufacturing industry which adds more value to economy as the current state of economy cannot sustain the confused direction taken by previous governments.

The local auto industry currently contributes approximately 2% to GDP, with a business-friendly policy and enabling environment, it can double its contribution to 5% within next 5 to 7 years, besides creating millions of jobs.

Sources in the automotive sector claim that it is one of the most documented industries in Pakistan and amongst the highest taxpayers.

We insist that the government should extend proactive support on all tariff and non-tariff initiatives proposed by industry leaders.

The government must decide how to pursue industrialization growth i.e. manufacturing or trading by looking at the examples of countries like Thailand, Indonesia and India who have nurtured their industries until the threshold volumes were achieved to gain competitiveness and were not ruffled by the years of protection given to the industry.

Pakistan needs to follow the footstep of these countries if it wants to grow its auto sector for it is the only way which will create more jobs for its swelling population.

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

By Muhammad Yousuf Shaikh

Are Chinese motorcycles posing 'threat' to the Japanese & Indian industry Or It's just another country doing business?

China International Motorcycle Trade Exhibition (CimaMotor) and PCMIC has One Voice, One Goal to Bring Together Industry Leaders for healthy competition The Organizers CimaMotor and Pakistan China Motorcycle Industry (PCMIC) invite industry leaders to the 13th Annual Global China International Motorcycle Trade Exhibition (hereafter refers as CIMAMotor 2014), the largest motorcycle exhibition in Asia, Friday, Nov 14 through Sunday, Nov 17, 2014 in Chongqing, China.

This year’s theme, “Economic Parity: One Voice, One Goal,” will provide opportunities for the motorcycle makers and parts companies to join the exhibition & conversation in leveling the playing field for minority companies to do business.

The three-day exhibition & conference

will connect automotive executives, entrepreneurs, suppliers, dealers, automotive manufacturers, advertising agencies, media outlets and others from across the motorcycle and parts spectrum to discuss strengthening and creating opportunities for people of color.

With the appearance of some crediblelooking bikes like the CFMoto 650NK and 650TR, Loncin LX650 and the Qianjiang QJ600GS in recent months there's been growing rumbles in the bike press about the Chinese industry.

Words like 'threat' and 'invasion' are inevitably bandied about, as if Chinese bike makers are dead set on crossing

borders in massed ranks, wiping out the opposition through strength in numbers and cheap price tags.

The fact is that yes, China is becoming a bigger player on the world market, with overall numbers of Chinese-made bikes expected to surpass sales of Japanese machines in the near future (albeit mainly uber-cheap scooters, so while sales volumes are high they still account for a far smaller chunk of the overall amount of money being spent on motorcycling).

But those expecting the Chinese to come in and wipe out or seriously damage existing brands, mimicking the effect that Japanese imports had on European

www.automark.pk | October-2014 | Page 00

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

manufacturers in the 1960s and 1970s, have got the wrong end of the stick.

History doesn't tend to repeat itself quite like that, and China's situation is very different to that of Japan fifty years ago.

Japan's export strength was a function of the country's engineering abilities, honed during WW2, and the fact that its economy was on its knees after the war. 'Export or die' might have been a British post-war saying but in Japan it carried even more truth, leading to government-controlled cooperation between companies with the simple intent of bringing more money into the Japanese economy. Firms were forced to work together, sometimes even merge, for the greater good of the Japanese economy. And the European manufacturers that Japan's bike makers hurt were generally complacent, overconfident and unwilling to change in response to their new rivals. Those that rose to the challenge survived, those that dismissed it didn't. Modern businesses, those that survived the Japanese challenge, were part of that challenge or have grown up since it, aren't likely to behave in the same way.

They operate in a global market quite unlike that of the 1960s, when national pride, tax strategies and insular thinking meant buyers were far more likely to buy home-grown products than imports.

China is in a quite different economic position to 1960s Japan. Its economy is already huge – the second largest after America – and wealthy (it's the largest creditor in the world, lending money to other nations). It's also got an enormous populat ion with f ast-improving standards of living and wages. The result for Chinese bike firms is that the big money is to be made not by exporting to Europe and making large-capacity, E u r o - f r i e n d l y mo d e l s b u t b y concentrating on the ravenous home market. Sure, Chinese scooters are doing well in the UK, but largely as a result of western import businesses seizing opportunities to buy cheap bikes over there and flog them for peanuts over

here. For the Chinese manufacturers themselv es, we' re small fry in comparison to the millions of potential customers they have on their own doorsteps.

Yes, now some big bikes are starting to emerge from China, but once again the target isn't a Japanese-style export boom – they're simply reflecting the growing affluence in China itself (where the likes of Ducati now also sell bikes to the growing numbers of wealthy Chinese businessmen that seem at odds with the concept of a communist country).

If those bikes also appeal over here, then why not offer them to us as well?

The bikes they're turning out look increasingly decent, and in future you might well end up riding a Chinesemade bike (don't scoff, your dad probably would have done the same if you'd once suggested he'd ride a Japanese one). However, it won't be because Chinese bikes have somehow destroyed the industry elsewhere, it will be through choice. There's also a good chance it won't be a Qianjiang, Lifan or CFMoto, but something with a much more familiar name; after all, your iPod was almost certainly made in China but it's still an Apple product. Honda has factories in China, along with other established brands, while yet more already outsource production of components to Chinese firms. The fact is that China is already a world-stage player in the bike market – not a 'threat' or an 'invasion' but just another country doing business.

I n ad d i t i o n t o s h i ft i n g fr o m transportation-oriented motorcycles to large-displacement motorcycles, Chinese motorcycle manufacturers must change their marketing approaches to meet new market requirements.

Consumers of large-displacement motorcycles are completely different from consumers of small-displacement motorcycles in terms of education background, life style, consumption levels, consumption habits, and

Muhammad Yousuf Shaikh, An A ut o I nd ustry Con su ltan t, Motorcycle Industry Expert, Motorcycle Designer, China Sourcing Expert, Serial Entrepreneur and the Founder & Chairman of Pakistan China Motorcycle Industry Council (PCMIC), offers his analysis of the motorcycle trade & industry trends from Pakistan & China.

The Chairman PCMIC working with motorcycle trade & industry for over two decades, Yousuf believe that new projects could help motorcycle industry to design and produce new design, new tech & large displacement motorcycles in Pakistan to compete with Indian motorcycle industry as Paki stan offered exclu siv e incentives in taxation on new entrant to manufacture new d es ig n, n ew te ch & l arg e displacement motorcycle. For further details and for assistance please email at pakchina.mic@gmail.com

consumption psychology. However, researches reveal that the manufacturers adopted the same showroom sales approach for the two different types of p rod uct . In over seas mar kets, manufacturers pay more attention to culture display and product experience for every large-displacement motorcycle model. Instead of launching advertisements that have poor message delivery effect, manufacturers tie brand value with services and influential public events such as club activities and motorcycle race sponsorship to generate culture recognition.

www.automark.pk | October-2014 | Page 00

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by Owais Khan

Chinese bike makers

hold reservations on registration of auto vendors with EDB

This issue also came up for discussion in the 20th AIDC meeting where Deputy General Manager (Tariff) EDB apprised the house that all the 2/3/4 wheelers are required to operate under the criteria defined in SRO 656(I)/2006 and procure their inputs as per the sources defined in SRO 656(I)/2006 i.e. i) import through approval from EDB, ii) Manufacturing of parts through inhouse facilities and iii) procurement from Sales Tax registered vendors having in-house facilities for the manufacturing of parts.

However, Chairman Association of Paksitan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh

offered some reservations about vendors registration with the EDB. He said those vendors who have already established their small units must be registered by the EDB either they are registered with the sales tax department or not.

He urged the EDB to include the members of APMA from Lahore and Karachi for visiting small vendors who are manufacturing bikes and auto rickshaws parts. It is not a matter of PAAPAM as it is purely an issue of APMA. Coming back to 20th AIDC meeting, while submitting initial list and reconciled records at the end of the year,

it has been observed by EDB that certain vendors reported by the OEMs as their vendors are not genuine. This has opened the window for pass through of parts and also encouraged the supply of sub-standard parts to OEMs especially in case of 2/3 wheelers. This mechanism has also discouraged the localization of parts in the country besides having revenue loss to the national exchequer.

DGM Tariff EDB further emphasized that the few vendors reported by OEMS in the list are not approved by EDB under SRO 655(I)/2006 because they do not avail the concessionary regime.

He also informed the house that all the vendors do not possess membership of PAAPAM and as such it becomes difficult for EDB to assess the status of manufacturing facilities of these vendors operating out of the concessionary regime of SRO 655(I)/2006.

In order to have a complete data of the local vendors supplying parts to the OEMs, irrespective of their registration/ membership with EDB/ PAAPAM, it was proposed by EDB that all the vendors supplying parts to any of the OEMs should be registered with EDB and should be made liable to provide status of their manufacturing facilities to OEMs verified by EDB. The representative of PAAPAM, while supporting the proposal strongly also suggested that the non-registered vendors should also be registered with PAAPAM because PAAPAM al read y hav e a p rop er syst em for verification and registration of vendors. PAAPAM also volunteered their support to carry out the registration of vendors.

EDB’s proposal was agreed by the house in principle. However, representative of FBR pointed out that it is the duty of OEMs to procure the parts from the

www.automark.pk | October-2014 | Page 14

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive Sector - Update

Commerce Minister visits OICCI

Federal Minister for Commerce Engr Khurram Dastgir Khan visited the Overseas Investors Chamber of Commerce & Industry (OICCI). Atif Bajwa, Vice President, OICCI briefed the Minister of the key concerns of the members and potential foreign investors.

Atif Bajwa, Vice President, OICCI highlighted Pakistan’s below potential share of world trade, frequent and sudden policy changes combined with insufficient engagement of the Federal and provincial government functionaries with key stakeholders, like OICCI, before introducing new regulations and policy changes, lack of fair and transparent drug registration and pricing policy, stalled implementation of IPR Act 2012, cumbersome and time consuming processes of the Pakistan Standards Quality Control Authority, abuse of Afghan Transit Trade facility having negative impact on compliant business organizations and government revenues.

In general, OICCI added, that there was dissatisfaction with policy implementation and that the list of pending issues is piling up. OICCI vendors who are genuine manufacturers.

The situation must be better in case of large manufacturing companies which are members of PAMA. However, in case of motorcycle industry, the issue of non-registered vendors is of serious nature.

The chair inquired about the existing prerequisites and registration system.

It was highlighted by EDB that the company supplying parts to OEMs must be income tax and sales tax registered.

The company applying for registration must have atleast two confirmed purchase orders from OEMs and they must possess physical manufacturing facilities. However, in case of vendors not availing the concessionary regime, the registration is not being carried out.

In reply to a question by the chair, DGM (Tariff) EDB appraised the house that the technical Team for registration of vendors consists of members from FBR, DGMP, MVRDE, EDB and SEC, which is already not ified

further highlighted that against its share of 0.3 percent of the global GDP, Pakistan international tradeis only 0.17 percent which is $60 billion short of its due share and is absorbed by other regional countries.

The concerns were followed by several recommendations which included need for an effective and transparent governance to improve regulatory framework including filling vacancies at key institutions like SECP, IPOP, DRAP and NEPRA. OICCI also suggested that each government department should prepare at least 3 key areas for improvement annually which should be duly monitored for progress, GoP to implement t he 2010 McKenzi e Co ns u lt an ts re comme nd at i on s, especially on export diversification, development of a trade policy framework with focus on potential untapped markets, to provide a support structure for taking advantage of EU GSP Plus of f e r and i mmed i at e and ful l implementation of the Intellectual Property Act 2012.

In his comments, Engr Khurram Dastgir Khan, Minister of Commerce promised

for physical verification, shall carry the task of physical verification of vendors.

The house agreed that there must be a regulatory mechanism for the vendors. A few participants expressed their concerns as to whether the proposed registration of vendors will be for the revenue purpose only or for provision of support to the vendors also.

full support to address all issues raised

by OICCI, including improvement on ease of doing business, timely tax refunds, introducing predictability in policies, consultation with OICCI on various policies impacting foreign investors. Minister further added that his top priority is to ensure increase of the count ry’s t rad e and he i s coordinating with all the Ministries and government departments, including F BR t o e ns ure al l fi scal a nd administrative policies are geared to facilitate significant increase of export trade.

He appreciated the research publications of OICCI and emphasized the need of close working relations between various Government Ministries and OICCI for facilitating a business friendly climate and removal of business irritants to facilitate increased level of FDI inflow into Pakistan. He also mentioned that Pakistan has great potential and an encouraging environment for Foreign Direct Investment in various sectors and the government is working towardsmore economic liberalization/deregulation and reforms for realizing t hi s potential.—PR

Additionally, the registration will be one time only or on yearly basis. The house was informed that registration of vendors is being done on one time basis at present which is being reviewed every year. The chair advised that a proper mechanism for registration of vendors including those who are not availing the benefits of concessionary SRO needs to be devised and the efforts should be geared towards what the committee wants to achieve.

The 20th AIDC meeting decided that EDB and PAAPAM to devise the mechinism for registration of vendors and present in the next AIDC meeting.....

www.automark.pk | October-2014 | Page 15

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

An Introduction - Forklifts

How Forklifts Improve Business Efficiency A forklift is a vehicle that comes equipped with a pronged device that enables it to carry and lift heavy loads. Businesses that require heavy lifting on a daily basis greatly benefit from high-quality forklifts A forklift, also known as a forklift truck, is used for lifting and carrying heavy loads. Many businesses that do heavy lifting on a daily basis benefit greatly from high-quality forklifts, which can speed up many jobs and boost efficiency.

Forklifts can be used both outdoors and indoors, and specific designs have been created for both usage types. In a large warehouse, a good forklift is a must, because without it, lifting many types of the things would be impossible. In order to get the most out of a forklift, it should be chosen according to the needs of the business. Before making a purchase, shoppers should do some research in order to make an informed decision.

Choosing the Most Efficient Forklift by the Fuel Type The type of fuel used in a forklift can influence the efficiency of the forklift.

Some types of forklifts can be refueled quickly, while others take more time.

Storing the fuel is also an important factor when it comes to business efficiency.

Gas Forklifts Gas forklifts are powered by natural gas and can be refueled easily and quickly, in about five to 15 minutes. However, the gas may be quite expensive, and storage space is required, as the gas is stored in large canisters. Although the initial costs for gas forklifts are lower, the fuel costs quickly add up. Gas forklifts are best for outdoor use, especially on rugged terrain, but they can also be operated in adequately ventilated rooms where the dangerous emissions can be removed. Gas forklifts are able to handle large loads with a maximum weight of about 10,000 kg.

Moreover, they can be used for some towing and pushing jobs.

be refueled quickly, in about five minutes. They also require storage space for the fuel, as it is stored in large canisters. The fuel is expensive and its costs can add up, although a diesel forklift is cheap to buy initially. Diesel forklifts have to be used outdoors, because the emissions they generate are dangerous in an enclosed area. They handle rough terrain very well. Diesel forklifts are able to handle the largest loads, up to 15,000 kg. They are also suitable for towing and pushing.

Electric Forklifts Electric forklifts run on large and heavy lead-acid batteries that are similar to the ones used in cars. These batteries last for up to five or six hours of constant use. The recharging process takes up to eight hours, and an additional period of eight hours is required for cooling down.

Electric forklifts do not produce any dangerous emissions, so they are the only ones that are completely safe to use indoors. They are also quieter than other types, thus being perfect for warehouses.

As they require no area for fuel storage, they also help to save space, although a battery recharging station is required.

Electric forklifts have the lowest energy cost per hour, although their initial costs are the highest.

the ir advantages as w ell as disadvantages. The following chart summarizes the characteristics of forklifts.

As the chart shows, diesel and gas forklifts can be used outdoors in order to lift heavy loads. Electric forklifts are the safest to use indoors because they do not create dangerous emissions.

Choosing the Tyres for the Forklift In order to boost the performance and aim for better business efficiency, the tyres of the forklift should also be chosen carefully. The main types of tyres available for forklifts include pneumatic, sup erlastic, and cushion tyres.

Pneumatic Forklift Tyres Pneumatic tyres are filled with compressed air. They are the best choice for outdoor forklifts that are used on rough terrains.

Superlastic Forklift Tyres

Comparison of Forklift Types

Superlastictyres, also known as pneumatic profile solid tyres, are best for outdoor environments in which the risk of punctures is high. Such places include recycling centres and wood yards. Superlastictyres combine the best features of pneumatic and cushion tyres.

They have the terrain abilities of pneumatic tyres and the solid

Diesel, gas, and electric forklifts all have

co nstr ucti on of cushi on t yres.

Diesel Forklifts Diesel forklifts are powered by diesel fuel. Similarly to gas forklifts, they can

www.automark.pk | October-2014 | Page 16

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Cushion Tyres

Conclusion

Cushion tyres are made of solid rubber.

They are best for indoor use, and most electric forklifts come equipped with them.

A forklift is a vehicle that comes equipped with a pronged device that enables it to carry and lift heavy loads. Businesses that require heavy lifting on a daily basis greatly benefit from highquality forklifts, which help to boost efficiency and get many jobs done, especially in a warehouse.

Choosing the fuel type for a forklift influences efficiency, because refueling time and fuel storage are important things to consider. Both gas and diesel forklifts can be refueled quickly, but require lots of fuel storage space, while electric forklifts must be recharged for many hours, but need no fuel storage space. Gas and diesel forklifts are best for outdoor settings because of their emissions, and electric forklifts are used in warehouses.

The tyres and lifting capacity should also be considered when buying a forklift. Pneumatic, superlastic, and cushion tyres all have their benefits, as they are designed for specific settings.

For use inside a warehouse, there

Forklift Lifting Capacity In order to get the most out of a forklift, it should be able to handle the loads with ease. Forklifts are rated according to the weight they can lift. Most models fall into the range of forklifts that can lift 2,500-4,000 kg. The capacity of a forklift is a matter of the size of the typical load that it is designed to lift.

The capacity value is usually based on a "500 mm" load centre, in which the distance from the sides to the centre of gravity is 500 mm. This means that the forklift is only capable of lifting the maximum weight if the load measures no more than 1000 mm. In case of unusually high or long loads, the lifting may not be very safe. For maximum business efficiency and safety, the forklift should have a lifting capacity that fits the typical loads handled in the company. If the load weights and sizes vary a lot, it is safer to buy a forklift with higher capacity.

Forklifts for Warehouse Use Although forklifts can be used in many different settings and are indeed multifunctional, most businesses need them for their vast warehouses. The three types used in warehouses include pallet, reach, and combi forklifts. In order to boost business efficiency, the appropriate forklift should be chosen for the job.

Generally, reach forklifts can lift loads that are up to 12 meters high. As they are powered by electricity, they generate no emissions and are perfect for indoor use. The running costs are low, although the forklifts themselves are initially quite costly in terms of purchase price. Reach forklifts need to be recharged for about eight hours.

Combi Forklifts A combi forklift is a compact and very versatile vehicle, because it can operate

Pallet Forklifts Pallet forklifts are relatively small forklifts that are designed for moving pallets around in a warehouse. The loads is only raised a little in order to make it possible to move it around. Powered pallet forklifts can be either ride-on or pedestrian types. They are powered by electric motors. Pallet forklifts are inexpensive and easy to operate.

Moreover, they do not generate any emissions. However, the electric models require occasional recharging, and their lifting capacity is limited.

Reach Forklifts Reach forklifts do what their name implies: they reach even the highest shelves in the warehouses. They are perfect for putting away or retrieving pallets, especially in narrow aisles.

in multiple directions. It is thus able to handle long loads and palletized products. The typical maximum lifting height of a combi forklift is 9.5 meters, while the typical maximum lifting weight is 14,000 kg. Because of this multifunctionality, combi forklifts are expensive to buy. However, they can be used both indoors and outdoors, and they are powered either by gas, diesel, or electricity.

are three main types of forklift to consider. The smallest forklift is the pallet forklift, which lifts the load only a little. A reach forklift can lift loads up to 12 metres high and is suitable for reaching the high shelves in the warehouse. The combi forklift is the biggest of the three. It is very versatile, as it is able to operate in multiple directions.

For more info visit http://forklifts.hyundai.eu/en/produc ts/forklifts

www.automark.pk | October-2014 | Page 17

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Report by Owais Khan

Monthly AutoMark International

Curious cases of Al-Haj Faw Motors Based on the approval of AIDC in its 9th meeting, held on July 05, 2011, Al-Haj Faw Motor were granted New Entrant Status under SRO 1098(I)/2011 dat ed December 16, 2011, f o r the assembly / manufacturing of six different FAW trucks and prime movers and localization plan thereof approved by AIDC was issued on December 21, 2011, effective from January 01, 2012.

Considering the status of New Entrant, Al-Haj Faw Motors was also issued ce r t i fi ca t e fo r t he as s e mb l y / manufacturing of two new models i.e.

“FAW Carrier CA1024V (970cc), GVW less than 5 Tons” & “FAW Mini Van, CA6371 (970cc), 7 Seater”, in July 2012 after approval of AIDC in its 12th meeting held on July 12, 2012 and two years in respect of these products have also been completed.

Al-Haj Faw Motors have submitted the status of localization achieved for two years and is It was observed by the Committee that after completion of two years of commencement of business, AlHaj Faw Motors (Pvt) Ltd., failed to comply with the conditions of the SROs / New Entrant Policy and did not achieve localization as per plan approved by AIDC. Most of the parts planned for localization in the first and second years have been imported instead of developing these parts locally, as per plan. However, the firm has localized certain additional parts.

The committee was informed that clarification / Justifications provided by Al Haj FAW Motors, with regard to nonachievement of localization targets in first year were placed before AIDC in its 16th meeting and finally after having data of imports from FBR and its evaluation at EDB, AIDC in its 19th meeting, based on the provisions specified under 1098(I)/2011, decided as retrospective collection of additional duty on parts, components, subcomponents, assemblies, sub-assemblies etc imported by the company on concessionary rate.

Status of localization achieved in-respect of all the afore-said products for second year was submitted before the house for further advice. Representative of Al Haj FAW explained that the company is a genuine manufact urer which has made heavy investment in auto

sector of Pakistan. Due to decreased volumes and vendor issues, the company could not carry out the planned localization.

It was highlighted that the third year of operations will end in December 2014 and by the localization status it seems impossible for Al Haj FAW to meet the localization plan submitted to EDB. The relevant SRO was consulted and it was decided unanimously that since there is no provision to give relief to the company, the previous practice shall be carried out for the next two years as well. In addition, the strict compliance to preconditions is necessary to cater for the brief case assembler also.

Therefore, it was decided that EDB may take the decision in this regard and convey it to the AIDC in its next meeting.

It was decided that the EDB would convey the decision of AIDC to FBR with regard to retrospective collection of ad di t io nal dut y o n t he p art s, co m p o n e nt s, s ub - c o mp o ne n t s , assemblies, sub assemblies etc imported by the company on concessionary rate in contradiction to the localization plan submitted to AIDC. In another case Al-Haj Faw Motors (Pvt) Ltd have approached EDB for issuance of manufacturing certificate and list of importable components for following new models of truck and prime movers under the existing regime of SRO 656(I)/2006 (i.e. TBS). FAW J5M 280 HP RIGID TRUCK 6X4 (above 30 Tons) and FAW J5M 280 HP PRIME MOVER 6x4.

Before processing the case following clarifications were placed before the committee, since the New Entrant Status of the firm will be completed on December 31, 2014; Can a New Entrant be allowed to operate simultaneously both under TBS as well as New Entrant Policy? Whether the status of New Entrant was granted to a company or a vehicle/model. Whether the status of New Entrant for the new model will be granted during the 2nd or 3rd year of its initial approval. What would be the status of similar product under New Entrant Policy.

The issue at B (i) was discussed in the meeting at length. It was decided that if the duties and taxes are being paid by the company, there should be no objection whether the company may operate under TBS, New Entrant Policy or simultaneously under both regimes. The house decided that the item should be withdrawn from Agenda and EDB should give decision on the issue.

The issues at B (ii to iv) were also discussed in the meeting. It was highlighted by representative of House of Habib that if AIDC does not resolve the issues being faced under New Entrant Policy, ambiguities are expected to rise in the near future. He suggested that a special meeting to discuss the New Entrant Policy needs to be scheduled to discuss this single agenda item. PAMA official emphasized that New Entrant Policy creates inter industry competition as well and it needs to be discussed in an exclusive meeting.

The chair agreed to the proposal and it was decided that the meeting to discuss new entrant policy will be organized after Eid ul Azha holidays.

In another case, Al-Haj Faw Motors (Pvt) Ltd requested for approval for the assembly /manufacture of FAW Mini Van, CA6371 (970cc), 6 Seater.

It was discussed that Al-Haj Faw Motors have already been granted the status of New Entrant Status for the assembly/ manufacturing of FAW Mini Van, CA6371 (970cc), 7 Seater in 12th AIDC held on July 17, 2012. The firm informed that the new variant is the same with the existing one except for change in seating capacity i.e. from ‘7 seater’ to ‘6 se at er’ a s such al l t he o t he r specifications, engine capacity, list of importable components, local parts and localization plans will remain the same.

It was decided by the committee that the rules and regulations for the new entrants need to be simple and as such the company may be allowed to introduce the new variant having reduction in seating capacity. It was decided that EDB would allow introduction of new variants to Al Haj Faw Motors as HS Code 8703....

www.automark.pk | October-2014 | Page 18

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by Ali Hassan

Monthly AutoMark International

PAMA’s concerns on PAK-SRI LANKA Free Trade Agreement

p Pakistan and Sri Lanka had signed a Free Trade Agreement (FTA) in 2005 in which 87 items at 6-digit HS Code pertaining to Auto Sector were made part of the No-Concession List of Pakistan.

Sri Lanka agreed to allow Pakistan 49 tariff lines for inclusion in its No Concession List and showed export interest for 24 items and showed its willingness to negotiate for the remaining 14 tariff lines. However, through SRO 248(I)/2009 dated 20th March 2009, all the 87 items were notified in the No Concession List of Pakistan.

The issue was tabled in the 20th AIDC meeting wherein it was decided that the issue purely relates to the automotive vendors and is of the national interest but it should be discussed directly with the stakeholders by EDB. Engineering Development Board (EDB) will discuss the tariff lines under discussion FTA with Sri Lanka with stakeholders directly.

Pakistan Automotive Manufacturers Association (PAMA) looked a bit cautious urging the Government to tread carefully on trade agreement with Sri Lanka as it indirectly provides market access to India which using joint ventures will dump its subsidized products in Pakistan.

In a letter written to the Ministry of Industries, DG PAMA Abdul Waheed

Khan pointed out that in January 2008 the Sri Lankan FTA negotiators admitted that Sri Lanka does not have the potential to export different auto parts.

He said that during 2008 meeting the concerns of Pakistani auto sector were duly recorded in the minutes as under: After discussion the following decisions were taken on ad referendum basis.

1. Sri Lanka agreed to allow Pakistan to place 49 direct tariff lines in its No Concession List.

2. The remaining 38 tariff lines relating to auto sector will be discussed in the next meeting along with Sri Lanka’s request list tabled during the meeting.

Meanwhile Sri Lanka will not issue certificates of Origin for these products for export to Pakistan under the PSFTA. However, it seems that the expected potential investment into Sri Lanka is now materialized and most likely source of this investment is India.

“This is a major concern for the Auto Industry and should be equally alarming situation for Ministry of Commerce (MOC). A mistake that was committed at the time of first negotiation of PSFTA with Sri Lanka should not be allowed to undermine now a thriving Pakistan's vending Industry,” quoted DG PAMA in the letter.

“Our industry is already facing a hostile tariff regime where local vending industry is importing castings and forging at 20 percent duty. With the finished products, like Gears, being allowed to be imported at 5 percent or less duty from Sri Lanka the local industry will suffer massive hemorrhage.

Parts like Ignition Coils (HS Code 851130), CD' Units (Old HS Code 853230 Revised HS Code 851180) and Parts and accessories for motorcycles including mopeds (Old HS Code 871419, revised HS Code 871410, this HS Code includes 49 localized parts) etc. are attracting basic custom duty at 35 percent and an additional duty of 15 percent. These parts being imported from Sri Lanka will again be coming at 5 percent duty or less. We will be giving away our market to Indian products routed through Sri Lanka at the cost and peril of a domestic value adding industry,” the letter quoted.

DG PAMA requested that MOC should refer back to the minutes of the review meeting dated: 24th -25th January 2008 in Colombo and the subsequent meetings and take the same stance that Pakistan may negotiate on other lines that are of interest to Sri Lanka, not allow these 38 lines to be opened to the concessionary imports and leave the position of auto related items, as above, unchanged....

www.automark.pk | October-2014 | Page 19

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Corporate Event - Report

Multiple activities held for Dealers, Sub dealers and Auto electricians by Pakistan Accumulators (Pvt.) Ltd. Pakistan Accumulators (Pvt) Ltd is a leading name in Automotive and Specialized battery manufacturing industry in Pakistan. This year Pakistan Accumulators (Pvt.) Ltd have planned to conduct trade marketing activities all over Pakistan with the objectives of motivating the second tier of their sales network (sub dealers and auto electricians) by rewarding them with special incentives for their outstanding sales performances, to increase interaction at grass root level within the trade, to introduce Pakistan Accumulators (Pvt) Ltd’s complete product range including Dry Charge, Valve regulated lead acid batteries (VRLA), Tubular plate deep cycle batteries and Motorcycle range which includes Super 4, Super 6, Super 8 and Super 10 batteries for kick and self start motor bikes along with the recently launched Supreme 4 VRLA maintenance Free Motorcycle battery first time ever in Pakistan.

Pakistan Accumulators (Pvt) Ltd takes pride in introducing, exclusively; first time in Pakistan the Valve regulated Lead Acid Batteries (VRLA) and Tubular Plate Deep cycle batteries, globally considered as the standard for all types of back-up needs, Solar and Telecom tower backups.

Pakistan Accumulators (Pvt) Ltd is the only company who

Faisalabad claims to have a product range from 3 amps to 3000 amps. Attached are pictures of recently conducted conventions in Punjab where Pakistan Accumulators (Pvt.) Ltd have successfully created awareness of their exclusive range of products and awarded special incentives (Motorcycles) among their best sub dealers and auto electricians.

www.automark.pk | October-2014 | Page 00

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark Monthly AutoMarkInternational International

Lodhran

Qadir Wala

Pak Pattan

Khanewal

Gojra

Okara

www.automark.pk | October-2014 | Page 00

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive Sector

Trade with India issue deferred to next AIDC meeting

Exclusive article by Owais Khan

P ak

Suzuki Motor Company Limited (PSMCL) has been trying hard to convince the government and get the approval for import of six items from India under Trade with India. So far the assemblers’ efforts have been confined to the meetings in Islamabad with government officials.

The matter came up in the 20th Auto Industry Development Committee (AIDC) meeting held in middle of t he last mont h b etwe en stakeholders and officials of the Engineering Development Board (EDB) but no firm decision was taken and the agenda was deferred to the next AIDC meeting.

Pak Suzuki had further requested the EDB for a specific meeting with EDB and PAAPAM with reference to trade with India prior to discussion in AIDC meeting.

EDB had received a representation from Pak Suzuki through Ministry of Industries and Production/Commerce for allowing import of 6 items at 6 digit HS Code, being CKD partsonly, by removing them from the Negative List of items importable from India.

According to PSMCL, Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) fully backed the proposal.

General Manger (Policy) EDB informed the 20th AIDC meeting that EDB had received a request from PSMCL with regard to deferment of the agenda item as it was a sensitive issue for PSMCL. MD PSMCL had also desired that the said agenda may be discussed in his personal presence who could not attend the 20th AIDC meeting due to his foreign visit.

The chair offered the participants that the agenda can be discussed for the sake of information/brain storming, if required. However, representative of

"We will be able to replace suzuki Mehran with newer models if we import engines and other components from India" Pak Suzuki Motor Company MD Hirofumi Nagao

PAAPAM highlighted that since Pak Suzuki is a big player and largest car manufacturer in the country, the agenda item may be deferred for discussion in the upcoming AIDC meeting.

As long as the government is facing political turmoil due to sit in and protests by PAT and PTI, the issue regarding giving permission to Pak Suzuki for import of parts from India under the umbrella of Trade with India may remain hang in the balance.

Besides rival car assemblers have different point of view on opening trade with India for the auto sector. The government will try to take the decision keeping in view the interest of all the

As long as the government is facing political turmoil due to sit in and protests

by PAT and PTI, the issue regarding giving permission to Pak Suzuki for import of parts from India under the umbrella of Trade with India may remain hang in the balance.

stakeholders and their body Pakistan Automotive Manufacturers Association (PAMA). It is not clear what PAMA has so far suggested to the government on this issue but markets report said that every assembler has been taking up the matter of trade with India relating to auto sector on their own.

PSMCL has informed that they do not desire any change in duty structure for import of CKD Parts from India.

Specifically, import duties of CKD Parts and A-max parts under SRO 656 and SRO 693 should remain same whether import is made from Japan or India or any other country.

The benefits highlighted by PSMCL are lower costs of CKD, Introduction of new models, technology transfer / joint ventures in parts manufacturing and possibility for exports.

However, EDB is of the view that the above mentioned proposal is not specific to the vehicles of Pak Suzuki Motor Company Limited, as the afore-said HS Codes are universal for all vehicles.

Hence removing of these HS Codes would imply opening up imports of aforesaid CKDs of all vehicles from India.

It is also worth mentioning that during the discussion on trade with India held in the Ministry of Commerce, the Auto Industry insisting on inclusion of all auto sector related tariff line in negative list to be gradually phased out within five years time frame.....

www.automark.pk | October-2014 | Page 22

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Report by Owais Khan

Monthly AutoMark International

Localisation plan approved amid PAMA’s reservation The Locali zat io n p lan f o r t he manufacture of Subuk Raftar Shinery Mini Van, 996cc Power Steering, Subuk Raftar Shinery Mini Truck, 996cc Power Steering and Gru Diesel Truck, 2200cc submitted by New Allied Motors was approved in the 20th AIDC meeting subject to clarifications of certain reservations by Pakistan Manufacturers Association (PAMA).

Another decision was taken under which joint letter from Adam Motors and Allied to be forwarded to EDB that matter has been resolved amicably between the parties.

Prior taking the decision, DGM Tariff EDB briefed the house about the background of the application submitted

by New Allied Motors to EDB. He informed the 20th AIDC meeting that New Allied Motors applied for the manufacturing certificate of following variants at Adam Motors, Karachi and Sunder Industrial Estate, Lahore, simultaneously. i) Mini Van, 996cc, 7 Seater. ii) Mini Truck/ Pick up, 996cc, GVW less than 5 tons iii) Single Cabin Diesel Engine, 2200cc, iv) cylinders, water cooling truck The installation of requisite facilities in Lahore was under process at that time whereas the company intended to carry out contract manufacturing at the plant of Adam Motors in the first stage.

Meanwhile, AIDC also reviewed the localization plan submitted by the company and certain shortcomings were highlighted from time to time and the f ir m w as aske d t o f u lf i l l t he requirements. The plant of Adam Motor had the requisite facilities and therefore the approval of two variants i.e. Mini Van, 996cc Subuk Raftar Shinery and Mini Truck, 996cc Subuk Raftar Shinery were granted to the company upon completion of all pre-requisites for manufacturing the aforesaid models in Karachi.

ED B i ssued li st of import able components and manufacturing certificate under the contract assembly agreement with Adam Motors on March 4, 2014 to Allied Motors. The house was appraised by EDB and as well as representative of the firm that the manufacturing could not start at Adam Motors after the lapse of more than six

months of the approval due to some commercial issues between the two parties.

In the 20th AIDC Meeting, the agenda for approval of power steering versions of the above mentioned approved vehicles at Lahore was requested in addition to light diesel truck as under.

Subuk Raftar Shinery Mini Van Subuk Raftar Shinery Mini Truck, 996cc Power Steering Gru Diesel Truck, 2200cc.

Considering the request of the firm, EDB’s Technical Team twice visited the manufacturing facilities of New Allied Motors twice at Lahore and after finding it satisfactory and placed the matter before 20th AIDC meeting.

In the meantime, New Allied Motors also approached EDB that Adam Motor Company changed some conditions of contract assembly agreement which is still under negotiation. Therefore, EDB was informed by Allied Motors that assembly/ manufacturing could not be star ted at Kar achi pl ant . The cancellation of manufacturing certificate issued to the firm for the Karachi plant wa s d i s cu ss ed i n d e t ai l . T he representative of Ministry of Commerce was apprehensive that Adam Motors can approach the court of law in case of cancelation which may create legal issues. It was clari fied by the representative of Allied Motors that his company has already discussed the matter at length and as such they are also willing to sort out the issue at the earliest.

The committee deliberated on the issue and it was highlighted that at the time of submission of application, the company app lied for ap pr oval of manufacturing simultaneously at Karachi and Lahore.

On a query by the chair, DGM (Tariff) EDB appraised the house that Adam Motors has written a letter to EDB with regard to their willingness to continue working with Allied Motors for contract manufacturing of two variants for which the assembly facilities of Adam Motor were approved. General Manager (Policy) informed the participants that Adam Motors was also invited to attend the meeting with a view to clarify their position but owner of the company was not in a position to attend the meeting due to his foreign visit.

The representative of Ministry of Commerce raised the point whether already imported CKD can be used for assembly of new versions with power steering. It was clarified by EDB that the power steering version of the vehicles Subuk Raftar Shinery Mini Van, 996cc and Subuk Raftar Shinery Mini Truck, 996cc are being considered for manufacturing at Lahore plant the CKD of which is similar except power steering. It was further clarified that manufacturing process of the vehicles is exactly the same; the approval for power steering version should not be an issue as it will be imported in CKD. However, in Lahore plant, the manufacturing of diesel truck is also under consideration. In reply to a question, DGM (Tariff) EDB informed the house that EDB has already approved the facilities of the company to manufacture all the three vehicles as per requirement of SRO 656.

Member Planning Commission of Pakistan emphasized that Vision 2025 envisages enhanced investment to boost the economy an d as such t he Government should try to facilitate the investors especially in view of the current business environment in the country.

He appreciated M/s Allied Motors on making investment in automotive sector of Pakistan and advised that the criteria for investment should be made as simple as possible. He suggested that the committees like AIDC should facilitate and ensure expeditious investments and private sector growth/investment be promoted.

After detailed deliberation, the chair advised Allied Motors to resolve the issue with Adam Motors amicably and recommended that the house may consider granting approval to the manufacturing plant of Allied Motors at Lahore exclusively whereas the withdrawal of contract manufacturing at Karachi may not be considered at this stage till settlement of the issue between Adam Motors and Allied Motors.

It was informed that FBR is already a member in the technical committee whereas Ministry of Commerce is the member of AIDC, the forum which grants final approval to such cases....

www.automark.pk | October-2014 | Page 23

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive Technology - Review

Monthly AutoMark International

Car mafia’ misusing Baggage Scheme Most of the vehicles, being imported under this scheme, are not owned by overseas Pakistanis, but only their passports are used for this purpose for which an amount ranging between Rs15000 and Rs25000 is paid to them

Federal Board of Revenue (FBR) seemed least interested in taking any action against owners of car showrooms allegedly involved in importing vehicles in the country under the ‘Baggage Scheme’, thereby creating problems for local auto industry, it emerged on last month.

Sources said that import of different vehicles has been continuing since long and irregularities in such imports was no more a secret, yet the FBR, instead of evolving a comprehensive mechanism for bringing an end to such unlawful activities, has been regularly announcing amnesty scheme on the pretext of generating `substantial’ revenue in a short period.

However, the scheme has, so far, failed to yield desired results, creating healthy impact on the personal bank accounts of the officials concerned.

“Under the guidelines set by the government old vehicles can be imported only under the Baggage Scheme and those interested to take benefit of the scheme are required to show their stay abroad for at least two years and vehicles being imported by them must have remained in their

possession during their stay abroad,” sources said, adding that vehicle’s registration certificate and driving license of importers of such vehicles are also required to be submitted at the time of clearance of vehicles.

They said that this scheme, which was aimed at facilitating overseas Pakistanis, was now being controlled by ‘car mafia’, involved in importing vehicles in connivance with customs officers concerned. “In fact, import of vehicles under the scheme has now become a white-collar crime and is being patronized by a lobby within the customs department,” they alleged.

“Most of the vehicles, being imported under this scheme, are not owned by overseas Pakistanis, but only their passports are used for this purpose for which an amount ranging between Rs15000 and Rs25000 is paid to them.

The vehicle mafia managed to get affixed fake departure and arrival stamps on the passports of overseas Pakistanis for importing vehicles under the scheme, they added.

They alleged that although the intelligence agencies are aware of car mafia’s involvement in remitting billions

of rupees for purchasing vehicles from abroad through Hawala-Hundi, they have been playing the role of silent spectators.

Underscoring the need for a probe into the racket behind import of old cars under the so-called baggage scheme, the sources said that authorities concerned would come to know passports of labourers working abroad, who cannot afford to import cars under the scheme, were being used for import vehicles worth millions of rupees.

They urged FBR and Ministry of Commerce to take remedial measures to check misuse of importing vehicles under the `Baggage Scheme.

They also suggested to the FBR to register car showrooms as most of vehicles are imported by their owners, besides vehicles imp ort permit be issued only to registered car showrooms.

They opined that the FBR by registering car showrooms would not only provide a level-playing field to the local auto industry, but would also help in generating substantial revenue for the country.

www.automark.pk | October-2014 | Page 24

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive Sector - Update

Monthly AutoMark International

FBR for allowing car imports on commercial basis Federal Board of Revenue (FBR) has reportedly recommended to the government to once again allow used car imports on commercial basis instead of depending on three schemes meant to facilitate expatriates, well informed sources in Engineering Development Board (EDB) told press media.

FBR's comments have come at a time when the Minister for Water and Power Khawaja Asif has almost finalised Auto Development Policy (ADP) 2014-19 to be considered by the Economic Coordination Committee (ECC) of the Cabinet anytime soon.

Khawaja Asif criticised local auto assemblers on a number of occasions for assembling substandard cars and over-pricing. When he took up this issue in the ECC last year, a committee was

constituted under his convenership to prepare a new auto policy draft.

"Although the existing two rates of depreciation (1 & 2 per cent) have been restored, the FBR's earlier proposals regarding opening up of used vehicle imports to commercial entities/ importers and removing the restriction on payments of duty by expatriate Pakistanis through regular banking channels are re-iterated," the sources quoted S. Ali Zaman Gardezi, Secretary (Customs Tariff-III) as saying in his letter to the Ministry of Industries and Production on a summary regarding a new auto policy. The sources said previously FBR had supported a reduction in age limit of used cars from five to three years on a condition that local assemblers will reduce their prices.

However, local assemblers did not reduce prices as per the aspirations of

MoI&P to submit auto policy to ECC Ministry of Industries and Production (MoI&P) is all set to submit the muchawaited new auto policy to the Economic Co-ordination Committee (ECC) of the Cabinet in its forthcoming meeting, well informed sources told print media.

Minister for Industries and Production, Ghulam Murtaza Khan Jatoi, who was kept in the dark on the new auto policy by the former Secretary Industries, Shafqat Naghmi, has now convened a meeting to update himself on this matter.

Khawaja Asif, Minister for Water and Power, is the chairman of the committee which has prepared a new auto development policy in consultation with Chairman Privatisation Commission, Mu hamnmad Zubai r. However, Pakistan Automotive Manufactures Association (PAMA) and Pakistan Association of Automotive Parts and Accessories Manufacturers (PAPAAM), which represent the vendors, have not been properly consulted.

Tariffs proposed in the auto policy and proposals relating to import of used cars are the main concerns for the local industry. Insiders in the Engineering Development Board (EDB), which is being directly controlled by the Ministry of Industries and Production, told

Business Recorder that the policy is ready for submission to the ECC, after a go-ahead signal is received from the Chairman of the committee.

Chairman BoI, who was approached by the PAPAAM to convey their suggestions to the Chairman of the Committee, recently told press that he had forwarded his recommendations to the Chairman.

PAMA, sources said, has written a letter to Secretary Industries, saying that the draft auto policy was held back at the time of the federal budget 2014-15 and during the period of its abeyance it was expected that the Ministry would hold much-needed consultations with the stakeholders before its finalisation.

"The reports about approval of the policy are disturbing particularly as no consultations have been held with the auto industry so far," said Director General PAMA in a communication with the concerned Ministry. PAMA, which normally exerts influence over the Government of Pakistan through Japanese embassy, maintains that the new auto policy should not be approved without meaningful consultations with the auto industry.

Islamabad Metro bus project cost may escalate to Rs50bn Political unrest in the capital blamed for increase in expenses

The Rawalpindi Development Authority (RDA) has started revising the budget of the metro bus project as the estimated cost is likely to go up from Rs44.21 billion to Rs50 billion.

A senior official of the RDA told Dawn that increase in land and construction material cost, purchase of escalators for bus stations, relocation of shrine on Sixth Road and bus depot land were some of the factors that had contributed to increasing the p roject cost.

No work has taken place on Parade Lane and Blue Area for the last two months due to the sit-ins by Pakistan Tehreeki-Insaf (PTI) and Pakistan Awami Tehreek (PAT), the official said, adding that the contractor was demanding payment for the extra days needed to complete the project.

He said that the relocation of gas and water pipelines and discovery of lines that had previously not been accounted for at Peshawar Mor and Constitution Avenue had also increased the cost under this head from Rs2.1 billion to Rs4 billion.

The sit-ins have also resulted in road blockade, forcing contractors to buy iron and cementfrom local industries at prices higher than those quoted in the agreement. Some portions of the ongoing project have been damaged at Parade Lane for which contractors have demanded compensation....

www.automark.pk | October-2014 | Page 25

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive imports - Update

Monthly AutoMark International

Tread carefully in FTA with Sri Lanka, says PAMA The Pakistan Automotive Manufacturers Association (Pama) has urged the government to tread carefully on its trade agreement with Sri Lanka as it indirectly provides market access to India, which could take advantage of the venture and dump its subsidised products in Pakistan.

In a letter written to the Ministry of Industries, Pama Director General Abdul Waheed pointed out that in January 2008 the Pakistan-Sri Lanka Free Trade Agreement (FTA) negotiators admitted that Sri Lanka does not have the potential to export different auto parts.

The letter further said that during the 2008 meeting the concerns of Pakistani auto sector were duly recorded in the minutes stating that, “Sri Lanka has agreed to allow Pakistan to place 49 direct tariff lines in its No Concession List”, and “the remaining 38 tariff lines relating to auto sector will be discussed

in the next meeting along with Sri Lanka’s request list tabled during the meeting. Meanwhile, Sri Lanka will not issue certificates of origin for these products for export to Pakistan under the FTA.” However, it seems that the expected potential investment into Sri Lanka is now materialised and, most likely, the source of this investment is India.

“This is a major concern for the auto industry and should be equally alarming for the Ministry of Commerce (MOC).

A mistake that was committed at the time of the first negotiation should not be made again, as it will undermine Pakistan’s thriving vending Industry,” Pama DG wrote in the letter.

“Our industry is already facing a hostile tariff regime where the local vending industry is importing castings and forging at 20 percent duty.

If finished products like gears are allowed to be imported at 5 percent or

Ijaz A Mumtaz elected President LCCI Renowned businessmen Ijaz A Mumtaz, Mian Nauman Kabir and Syed Mahmood Ghaznavi on last week elected unopposed as President, Senior Vice President and Vice President of the Lahore Chamber of C o m me rc e an d I nd u s t r y (L C C I ) respectively.

All the three made their way to victory stand as nobody turned up to file nomination against their candidature.

A formal announcement, however, would be made at the Annual General Meeting scheduled for September 30. LCCI new office-bearers will assume the charge of their offices on October 01.

Ijaz Ahmed Mumtaz is the Chairman of Fazal Din and Sons Group and the Chief Executive of Lahore chemical & pharmaceutical works (Pvt) Ltd Fazal dingroup is one of the oldest most trusted and respected healthcare providers in the country .it represents a vast number of multinational companies from all over the world dealing in the healthcare field from disposables to medical imaging devices...

less duty from Sri Lanka, the local industry will suffer massive hemorrhage. “ Parts like ignition coils, CD units and parts and accessories for motorcycles including mopeds, etc. are attracting basic custom duty of 35 percent and an additional duty of 15 percent. These parts if imported from Sri Lanka, will come at 5 percent duty or less.

“We will be giving away our market to Indian products routed through Sri Lanka at the cost and peril of a domestic value adding industry,” the letter quoted.

The official requested that the MOC should refer back to the minutes of the review meeting along with subsequent meetings and negotiate on other lines that are of interest to Sri Lanka.

It is not wise to allow 38 lines to be opened to the concessionary imports and leave the position of auto related items unchanged, said the letter...

Paapam elects new body for 2014-15 Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has elected Mohammad Siddique Misri as its new Chairman and Mumshad Ali as Senior Vice Chairman, while Iftikhar Ahmad has been elected as Vice Chairman for the year 2014-15.

In addition, Mirza Shafqat Sohail, Tanveer Hayat Mir, Syed Misbahuddin, Arshad Amin Awan, Fawwad Naseem and Ashfaq Paracha were elected members of the Managing Committee.

The Chief Election Commissioner, Muhammad Saleem, made the announcement in this regard at the 15th Annual General Meeting of the Association.

The newly-elected office-bearers stressed the need to overcome the numerous challenges faced by the auto industry and assured the members that they will continue working as a vibrant and active body, in spite of a very difficult economic environment and many hurdles faced by the industry...

Pakistan Auto Parts Show 2015 6-8 March-2015 www.automark.pk | October-2014 | Page 26

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive Technology - Review

Monthly AutoMark International

Making Innovation The hubs of advanced manufacturing will be the economic drivers of the future because innovation increasingly depends on production expertise Visitors to the Crosspointe Rolls-Royce facility in Prince George County, Virginia, have to don safety glasses and steel-tipped shoes, just as they would at any traditional factory. But then things start to look different. Past the cubicles filled with programmers and support staff sits a 140,000square-foot factory with spotless white concrete floors, bright lighting, surprisingly quiet equipment, and very few human beings.

Opened in 2011, Crosspointe is the kind of factory that makes a good backdrop to a political speech about advanced manufacturing, as President Barack Obama knew when he arrived less than a year later. It’s global: the U.S. operations center of a U.K. company, it uses titanium forgings from Scotland, Germany, or the United States; shapes them into fan disks; and, after milling, polishing, and testing, ships them off to England, Germany, or Singapore.

Once there, each disk will become one of 10,000 parts in a typical engine.

It’s also highly automated: $1.5 million machines made by DMG Mori Seiki do the initial milling of the disks, following steps directed by Siemens software with a minimum of human interference. On a day in early summer, eight machines were being monitored by three operators. Computer screens in front of the machine displayed instructions in pictures and text, flashing warnings when a part has not met specs or the machine needs to be serviced. Later an automated measurement machine with a probe on the end would spend eight hours inspecting 1,000-plus distinct dimensions of the part. For the next 25 years, Rolls-Royce will keep data on each part, starting with exactly how it was made. Sensors in the engine will track how the engine and it s part s are hold ing u p, and maintenance and flight data will be carefully recorded.

It’s not just pristine floors, scarce workers, and a global network that make Crosspointe emblematic of

manufacturing today. It’s also the ecosystem surrounding the facility. Just down the road is the Commonwealth Center for Advanced Manufacturing, a research center whose members include Airbus, NASA, and the University of Virginia.

There, Rolls-Royce staff who know the challenges and details of manufacturing work with researchers and suppliers to improve the factory and its products, says Crosspointe manufacturing executive Lorin Sodell. “Often a great idea for a new manufacturing process won’t ever make it into production because that connection is missing.”

Most of the advanced machining and other innovative processes in place at Crosspointe were developed and first tested at a similar research center near the company’s plant in Sheffield, U.K., called the Advanced Manufacturing Research Center. Sodell is already working with suppliers housed in the Virginia research center to diagnose and quickly address new tooling issues and any other problems that might arise.

To understand why manufacturing m at t e r s , w e m us t l o se s o m e misconceptions. First, manufacturing no longer derives its importance primarily from employing large numbers of people. As software drives more of the manufacturing process, and automated machines and robots execute much of it, factories don’t need as many workers.

Second, the idea popularized in the 1990s and 2000s that innovation can happen in one place (say, Silicon Valley) while manufacturing happens in another (such as China) is not broadly sustainable. If all the manufacturing is happening in China, these networks are growing there, meaning eventually all the innovation—or at least a lot of it— will be happening there too.

Manufacturing will make its most essential economic contribution as an incubator of innovation: the place where new ideas become new products. Thanks

to a dvanced manufa ctur ing technologies, that place can in theory be pretty much anywhere. Robots, software, and sensors work no matter what language is spoken around them.

In practice, however, advanced manufacturers thrive best in an ecosystem of suppliers and experienced talent. For this reason, specialized manufacturing networks have taken hold in many regions. Among the success stories highlighted in this report a r e C h i n a ’ s d o mi n a n c e a s a manufacturer of consumer electronics, Germany’s lead in precision tooling androbotics, the United States’ strength in aerospace and car manufacturing, and its role in pushing forward i mp o rt a nt ne w man uf ac t u ri n g technologies.

Innovative manufacturing today requires as its base that manufacturers and their suppliers build strong relationships and share knowledge extensively, says Mark Muro, a senior fellow at the Brookings Institution.

China’s achievement is especially significant. Today, it would be nearly impossible for any other region to replicate the country’s manufacturing prowess in electronics or the speed with which its companies can introduce new products, says Harvard Business School professor Willy Shih, a longtime executive at IBM, Eastman Kodak, and ot her mult inat ion al f irms who st udies the links between manufacturing, product development, and innovation.

It’s not a new idea that manufacturing and innovation are linked. Seventy percent of industrial research and development spending in the U.S. comes from the manufacturing sector. Some have been skeptical, however, that innovation requires manufacturing know-how.

Courtesy: MIT Technology Review

www.automark.pk | October-2014 | Page 31

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

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

RUST… A Bitter Enemy!

Your Car’s Skin Cancer There are countless additional benefits of rust protection; it also enhances the life of undercarriage hardware, brake and fuel lines.

Over time these expensive hardware seize-up and tend to break apart during removal or lose their useful life.

The bodywork on your car can be compared to your skin. If you don't apply suntan lotion, sunscreen or body oil to protect it from burning while enjoying tanning in the sun, you can run the risk of having skin cancer from the solar ultra-violet rays.

Similarly, your car’s bodywork can corrode leading to rust from elements due to wet environment such as rain, salty sea-breeze, if not treated properly to prevent it. The way you look after your body’s skin is similar to how you can prepare your car for weather conditions.

Rust protection and prevention is your best weapon in the war against rust. By the time you first see the rust appearing, rainy water/salty sea-breeze (especially in sea port city Karachi) has already done the damage and sometimes it can be permanent. In many cases rust can lead to making the car not roadworthy and unsafe due to body metal perforation. This can also lead to having carbon mono-oxide, a common poison exhaust gas, drawn into your car cabin.

This highly toxic dangerous gas can cause serious health hazard or even death. If you ever notice any exhaust gas leakages into your car cabin, open all the windows, stop driving at once and take it for complete inspection and body repair. Do not take any chances, especially when you are driving with closed windows.

What is rust?

Bef ore batt lin g wi th the rust ,

can stay one step ahead of the rust.

Pot holes… Pools and Puddles

understanding it is important. Rust is the substance formed when iron compounds corrode in the presence of oxygen and water. It is a mixture of iron oxide and hydroxides chemically known as ferrous-Oxides or Fe2O3.

Rusting is a common term for corrosion and usually occurs with steel metals.

The salt in the water/sea-breeze or acid rain speeds up the oxidation process by acting as a catalyst. The problem with salty water or sea-breeze is that once the water is gone, the salt in water lies in wait to restart the forming of rust once more when moisture is present.

Rainy Shower The joy or suffering effects of monsoon raining season may be over, but it has left visible and hidden long term ripple rusty effects on your car body especially in the flooded area of Pakistan.

Oddly enough, the worst time for rust is during the rainy season. Warm weather and wet rains reactivate rust, even after the rain has ended. While driving in rain is unavoidable, simple steps can be taken to keep rust under control. If you don’t give the rainy water a chance to take hold, you and your car

Potholes are created when water penetrates the top layer of asphalt through cracks in the road. After the moisture freezes and expands, sections of the pavement are forced up. The weight of vehicles going over this section of road breaks the pavement and the asphalt is forced out.

Potholes are also caused due to defective or poor quality material used in during road construction and these are more frequent in the spring and quite visible after the monsoon. But unfortunately, in Pakistan more than 60% roads network is with deep and danger potholes, especially in the rural areas.

After the rain, these pot holes turn into bath tubs for your car. This bitter chemical collected in the puddles cause splash and work their way up into the undercarriage/chassis of your cars and act as catalyst to rust process. This action promotes the insidious destroyer of iron and steel known as rust. The same splashing action can also cause a dirty splash to nearby pedestrians, so please respect road users and just slow down whe n y o u e nc oun t er p u d d le s.

Rust Protection Prevention

and

Most cars manufactured or imported in Pakist an are bui lt o n g eneral envi ronmental and climatically conditions. Nevertheless, all

www.automark.pk | October-2014 | Page 32

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Cars can be an expensive purchase. You need to revive its beautiful look by effective treatments that will increase the longevity of your major investment. Rust never sleeps and can happen anytime and anywhere. manufacturers provides some basic factory rust protection, but the need of ad dit ional rust p ro tect ion and prevention is based on your domiciled zone, (such as northern snow mountain areas or city like Karachi near sea), to help keep your car looking showroomnew.

There are many types of protection packages available. When shopping for a rust protection package, check for details such as material, chemical, tools, application process, warranty coverage and a yearly inspection with a touch-up and re-spray, before making your final decision.

There are countless additional benefits of rust protection; it also enhances the life of undercarriage hardware, brake and fuel lines. Over time these expensive hardware seize-up and tend to break apart during removal or lose their useful life. Since most cars are now built with 65%-85% computer controls systems, rust protection provides additional shield to safe these expensive electronics units and electrical circuit corrosion.

rainy seasons or apply rust remover, if needed, before applying any rust protection on undercarriage, hood, trunk, inside door and all outer body panels. Close attention should be paid to the fender wells and undercarriage, where there are plenty of nooks and crannies for salty water to get trapped in. Make sure to check that all of the drain holes under the doors are clear, so that the water collected during the wash can drain.

Environmental Elements Acid rain, the heat from the sun, bird droppings, tree sap, road salt & grime, rail dust, brake pads dust, industrial fallout and salty sea breeze are the prime root causes and sources related to ruining the look of the body of your car and the color finish. Keeping your paint in top shape is also a top line of defense against environmental deposits and rust

Wax Protection… An auto tan lotion for car’s skin care Rubberized undercarriage protection also provides a sound barrier from road noise and reduces your driving stress.

It also controls dust from being drawn into the car from body joints or seams with the rust inhibitor.

If your car is ever involved in an accident, make sure to reapply rust protection to new sheet metal body parts.

The best time to apply rust protection is before you take delivery of your new car. However, if you haven’t done so, it is not too late yet. Make sure to get a thorough complete power wash to remove all old mud and rust buildup into the rust motels during winter or

Everyone wants to drive a nice, clean and shiny car. Penetrating colour, higloss, immaculate finish and eyecatching sparkle are features that make your car look fantastic. Preserving these characteristics on your car is made possible with quality paint protection by sealing both paint and clear coat, blocking ultra-violet rays preventing fading and oxidation to maintain a great looking shine. A polished, glossy and shiny car body bounces back the hot sunny rays faster to keep cabin cool for your comfort.

Paint prevents rust by protecting the steel beneath it. A quality wax will keep the paint flexible and thorough enough

to deflect all that dust can throw at it.

Any paint chips due to stone or scratches that expose the underlying steel should be touched up immediately to prevent surface rust expansion. A clean shiny car also tends to reduce air drag, wind and friction noises in high speed and can provide a smooth ride.

Paint protection is designed to ensure your car's paintwork that will continue to shine and present itself in the true manner that first attracted you to the car.

Watch Your Intake A good set of rubber floor mats designed and recommended by your car manufacture can keep moisture or wet mud from getting through your carpet and causing expensive damage. Consider laying a plastic sheet to cover floor carpet, especially in a family van during the rainy weather.

Cars can be an expensive purchase. You need to revive its beautiful look by effective treatments that will increase the longevity of your major investment.

Rust never sleeps and can happen anytime and anywhere, yet it is easy to prevent it with a little extra tender loving care. Revive your car’s appearance to enhance safer motoring and rust free years, which will increase the resale value of your car, should you ever decide to sell or trade-in later.

Look after your car’s Look, and enjoy the look of your car as new!

Have a safe and sound motoring!

Next article: What to do, if your This exclusive article on Rust Protection has been written by Mohammad Shahzad S.A.E., D.M.P. , specially for Mo n t hl y A ut o Ma rk M ag az i n e .

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

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

www.automark.pk | October-2014 | Page 33

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Car / Light Vehicle Price List www.automark.pk SUZUKI Model Model

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

APV 1.5L GLX MT (Petrol)

HONDA Price Price Rs. 919,000 Rs. 1074,000 Rs. 1114,000 Rs. 635,000 Rs. 688,000 Rs. 1,321,000 Rs. 1,382,000 Rs. 1,518,000 Rs. 1,059,000 Rs. 1,465,000 Rs. 1,544,000 Rs. 695,000 Rs. 700,000 Rs. 666,000 Rs. 637,000 Rs. 642,000 Rs. 2,418,000

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

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

PM Auto Industries (Pvt) Ltd. Model Faw Truck Super 3 Ton (3200cc) Faw Truck Prime 2 Ton (2600cc)

Price Rs. 1,772,000 Rs. 1,914,000 Rs. 1,612,000 Rs. 1,763,000 Rs. 2,185,000 Rs. 2,417,000 Rs. 2,306,000 Rs. 2,538,000 Rs. 3,286,000 Rs. 3,366,000

Price Rs. 1,260,000 Rs. 1,034,000

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

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

Sokon - Mini Truck (1050cc) DFSK - Mini Truck 2700MM Deck DFSK - Mini Truck 2500MM Deck DFSK - Mini Truck (Double Cabin-AC) 1400MM Deck Introductory Price DFSK - Mini Truck (Double Cabin Non-AC) 1400MM Deck Introductory Price

Rs. 763,000 Rs. 731,000 Rs. 950,000 Rs. 900,000

Sokon - MPV 11 Seater (1300cc) DFSK - MPV 11 Seater (Without AC) Rs. 1,034,000 Rs. 1,084,000 11 Seater (Dual AC) 11 Seater (Dual AC-Power Steering) Rs. 1,134,000

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

DAIHATSU

11 Seater (Dual AC - Power Price Model Steering +Power Window)

Dual AC - Power Steering+ Power Window Sokon - Cargo Van 1050cc DFSK

Rs. 938,000 Rs. 840,000 Rs. 977,000 Rs. 740,000 Rs. 685,000

Tractor Euro Ford 85 HP Tractor Euro Ford 60 HP Tractor Euro Ford 50 HP Price List - Ex Factory (Hyderabad)

Rs. 1,859,000

Hilux Pickup 4x4 E

Rs. 1,145,000

Sokon - MPV 07 Seater (1050cc) DFSK Without AC Rs. 817,000 Rs. 887,000 With Dual AC Dual AC - Power Steering Rs. 928,000

Price

Model

Price

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

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,129,500

AL-HAJ FAW MOTORS Price

Model

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

Monthly AutoMark Magazine - International

Rs. Rs. Rs. Rs. Rs.

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

Price updated October- 2014

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

International Automotive News in Brief

Yamaha developing a street bike based on the R25 The new motorcycle will have traditional street bike styling and is expected to have design cues similar to the MTseries of naked motorcycles.

During the M125 launch, Yamaha had announced that it will launch a 250cc or a 300cc parallel-twin stree tbike offering in the European market. And the Yamaha R25 seems to be the ideal donor bike for this upcoming naked motorcycle.

Apart from the design changes, Yamaha will also fine tune the riding position to better suit to the street bike riding dynamics.

The Yamaha MT25 will dump the clipon bars for a more conventional single piece and wide handlebar that will endow the rider with an upright and comfortable riding stance. Providing firepower will be the same 249cc, parallel-twin, 8-valve, liquid-cooled motor as seen on the R25 that pumps out 36PS of peak power and 22.5Nm of max torque.

Dongfeng Nissan introduces first pure-electric car for China Dongfeng Nissan Company, a joint venture between Dongfeng Motor and Nissan Motors has introduced e30, its first pure-electric vehicle.

The car is available in normal-charge and quick-charge options. It can run 60km with five minutes of charging with an energy consumption of 0.146kWh/km.

The company claims that the running cost for the car will be one-seventh of gasoline models of the same range available in China.

Dongfeng Motor President Jun Seki said: "With Nissan Global's advanced technology, sales experience and knowhow of electric vehicle, the Venucia e30 has been locally developed through our careful studies about market situations and consumer needs in China."

The car will be available for $43,700 and Chinese customers will not have to pay purchase tax for the car, as it is eligible for tax exemption from the Chinese government, as part of its initiative to PROMOTE energy efficient vehicles.

Monthly AutoMark International

India has potential to become world's biggest car maker: Maruti Stating India has the potential to become the biggest car manufacturer of the world, country's top car maker Maruti Suzuki today hoped factors adversely af fec ting competitiveness of manufacturing will be removed quickly, in line with Prime Minister Narendra Mo d i ' s ca ll t o ma ke I n d i a a manufacturing hub.

"Costs of production in India increase because of various government policies, procedures, regulations and the way some of the laws are implemented," said Kenichi Ayukawa, Managing Director and CEO, Maruti Suzuki India Ltd, at the 'Make in India' campaign.

Stating that India is not the easiest country to do business in, he said, "We are fully confident that, under the Make in India programme of the Prime Minister, factors that adversely affect the competitiveness of manufacturing will now be removed quickly," he said adding India will then become one of the most competitive manufacturing countries in the world.

"Over 30 years ago, Osamu Suzuki, Chairman, Suzuki Motor Corporation, recognised the potential of India, both as a market and as a country where high quality manufacturing was possible," he said, adding globally, Maruti Suzuki is

the most successful venture of Suzuki group.

He said the cars Maruti Suzuki makes in India are lower in costs than similar products made by it in other parts of the world.

This enabled Maruti to start exporting cars in 1986 to several countries including western Europe. Suzuki Japan made India its manufacturing hub for compact car Zen in 1994 for export to European countries.

Since 1983, Maruti has been making special efforts to develop a vibrant component manufacturing industry in India. "This, along with the rapidly growing car production and demand, with high local content, and low costs, was largely responsible for all the major car manufacturers of the world establishing production facilities in India," he said.

India continues to be a major exporter of Suzuki branded cars. Other car manufacturers have also made India one of their manufacturing hubs for exports. Car exports from India have reached the levels of around six lakh units annually. "This has been achieved despite the well recognised fact that India is not the easiest country to do business in," he added....

Toyota recalls 320,000 cars from Saudi market The Ministry of Commerce and Industry has announced the start of the third phase of the compulsory campaign by recalling more than 320,000 Toyota cars in the Kingd om due to a malfunction in the brake smart stop system and addressing the problem of cruise controls.

The recalled cars include Avalon 2005/2010, Camry 2007/2010, Sequoia 2008/2010, Lexus LX 2008/2010, and Land Cruiser 200 LCD 2008/2011, the ministry said in a statement carried by the Saudi Press Agency on Tuesday.

The ministry had announced earlier the recall of more than 400,000 cars of 10 models of Toyota and Lexus.

Earlier this month, the ministry announced the recall of 151 Ford vehicles (models 2012 to 2014) in the Kingdom

due to a technical defect in the right shock absorber. The recalled models are Taurus, MKS, MKT, Flex, EDGE, MKX, and the cars of the Public Security (Police Interceptor Sedan).

Clients were advised to communicate with the local agent to make the necessary repairs free of charge.

The ministry is also continuing its monitoring campaign on commercials misleading consumers. Five car companies were detected publishing illegal promotional ads in the media, which included seasonal offers on cars without clarification of the details, or giving clear price offer. Fines were imposed on those involved and those responsible were summoned for investigation and legal procedures against them....

www.automark.pk | October-2014 | Page 35

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

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 D e v e lo p me n t , C o mm er ce , Communications and Industries.

Chairman Association of Pakistan Motorcycle Assemblers (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 and causing d elay i n issuing 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

www.automark.pk | October-2014 | Page 00

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

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 registration 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 keeping 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.

www.automark.pk | October-2014 | Page 00

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive Sector - Update

AUTOMECHANIKA 2014 FRANKFURT, GERMANY 17 PAKISTANI AUTO PARTS MANUFACTURERS PARTICIPATE AT AUTOMECHANIKA 2014, FRANKFURT New Exhibitor Record And 140,000 Visitors At Automechanika Great Interest In Tomorrow’s Technologies, E.G., Alternative Power Chains, Lightweight Construction And Energy Efficiency The 23rd Automechanika from 16 to 20 September 2014 was once again an outstanding showcase for innovations from the international aftermarket. This year, around 140,000 trade visitors from 173 countries, one in four of them from the workshop sector, took advantage of this opportunity to find out about the latest automotive products and technologies during the five-day fair[1].

On the exhibitor side, the fair set a new record with 4,631 companies from 71 countries. Detlef Braun, Member of the Board of Management of Messe Frankfurt: “The ratings given by exhibitors have been outstanding with a significant impetus coming from outside Germany. However, German companies also see the current economic situation in a more positive light than

in 2012.”

Notable Pakistani companies with a stable export performance were Infinity Engineering, Kortech Radiators, Thermosole, Rastgar Engineering, Darsons Rubber and MGA Industries.

New participants, developed through CBI’s Export Coaching Program consisted of Landhi Engineering, IPI, AN Engineering,LOADSand Mehran.

The new companies came well prepared for the fair and together, collected more than 500 trade inquiries, in addition to a wealth of knowledge about trends, competi tors and supply sources. CBI EXPERTS who assisted the ECP companies consisted of Mr. Jan O. Elferink and Mr. Imtiaz Rastgar.

The CBI Experts were of the view that

wi th a cl ear cut Sect or Export Development Plan and policy support, Pakistan’s automotive clusters at Karachi and Lahore can easily rise to US $ 5.00 Billion in exports.

The number of international visitors at the Automechanika, rose by five percentage points to 60 percent.

Particular interest was shown by visitors in subjects such as alternative power trains, fully automatic digital reception processes, energy efficiency, lightweight construction solutions with previously i mp os si ble l oad i ng cap aci t i es, accessories, customizing, car media and 3D printing. Detlef Braun: “More than ever before, Automechanika in Frankfurt has shown itself to be a platform for the presentation of important, future-oriented technologies

www.automark.pk | October-2014 | Page 38

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International as the key to tomorrow’s developments throughout the entire automotive aftermarket.”

The fair also presented the latest products and developments from the world market in the commercial-vehicle field. In this connection, Detlef Braun says, “sustainability and environmental compatibility also play an extremely important role in the commercialvehicle segment. For example, vans with previously unheard of loading capacities an d w ei g ht - o p t i mi se d e le ct r i c refrigerated vehicles were to be seen here for the first time.” Visitors were delighted by the great potential of exhibitors in the commercial-vehicle sector, which was to be seen under the ‘Truck Competence’ label on over 1,000 exhibition stands, and by the associated special shows revolving around ‘Truck Competence’. About this, Alexandra Sommer, Specialist Aftermarket Marketing, Knorr-Bremse SystemefürNutzfahrzeuge GmbH, said, “Our concept for the fair was given a very warm reception and resulted in a significant increase in the number of visitors to our stand compared to the previous fair. Our simulator fits perfectly in the ‘Truck Competence’ segment at Automechanika Frankfurt. We are already looking forward to the next edition of the fair in 2016.”

Particularly popular was the ‘Collision Damage Talk’, the best attended event in the Automechanika Academy programme with 600 participants. Key players from the insurance business, including HUK Coburg and the newly founded German Partner Workshop Association (Bundesverband der Partnerwerkstätten – BVdP) and Deutsche AutomobilTreuhand GmbH (DAT) also made presentations. The event was sponsored by p ai nt manufacturers who returned to Automechanika after an absence of 12 years. “We have regained our confidence in fairs as a marketing tool and meet the world in Frankfurt am Main”, said Cromax Sales Manager Frank Forst.

More than 50 alternative-drive-chain pioneers from 12 countries presented their mobility concepts in Hall 10.

Together with PrinsAutogassystemen and Neste Oil, the German Liquid Gas Association (Deutscher VerbandFlüssiggas e. V.) presented a bio version of LPG in a press conference on 16 September. Thus, ‘biopropane’ –

LPG made of biomass feedstock – will be available from 2016 and help further reduce CO2 emissions.

Another magnet for visitors was the Galleria with a wide-ranging choice of basic and advanced training choices.

For example, over 650 trade visitors from 36 countries attended the practiceoriented workshops on collision-damage management. As a participant reported, “T he w or ks ho p s e xce ed e d my expectations! Messe Frankfurt has created a platform that not only provides specific information on topical issue but also enables visitors interested in these subjects to familiarise themselves with practical aspects of new technologies in a very short time.”

That social commitment can also be demonstrated at a trade fair was shown by an initiative of the ‘TEILEne.V.’ (parts / share) association. Over 50 renowned companies from the independent spareparts market have joined forces for a good cause and donated € 250,000 to the Peter MaffayStiftung, a charity for deprived children. The popular German rock musician accepted the donation personally at the fair and proved to be another magnet for visitors from German workshops.

On the Friday and Saturday of the fair, visitors from the workshop sector made good use of the ‘Automechanika Workshop Days’ programme, which included a variety of technological presentations, workshop exhibitions and competitions organised, inter alia, by members of the Independent After Ma r k e t A s s o c i a t i o n ( V e r b a n d VereinFreierErsatzteilemarkte.V. – VREI), e.g., Schaeffler, ZF and Valeo.

Discussing the programme, VREI Chairman Thomas Fischer said, “Together with our members, we succeeded in arousing particular interest on the part of workshop visitors.”

The next Automechanika Frankfurt will be held from 13 to 17 September 2016.

Exhibitor statements: “At Automechanika Frankfurt, we can reach almost all our customers at the same place. We are very pleased with this year’s show and welcome the decision to change the timing of the fair from Tuesday to Saturday.” (José Gu ilherme F errei ra, Marketing Ma n a g e r , I n d ú s t r i a s M e t á l i c a s VENEPORTE S.A.) “This was our first time as exhibitors at Automechanika Frankfurt and it has

PAKISTANI COMPANIES DISPLAY AT AUTOMECHANIKA A total of 17 Pakistani companies displayed at the AUTOMECHANIKA. Out of these, five companies were part of the CBI’S current export coaching program and displayed on the CBI stand at hall 6.3; another five companies which displayed are previous beneficieries of the CBI export coaching program and displayed independently. The CBI'S contribution to Pakistan's a u t o p a r t s e x p o r t r e ma in s outstanding.

NOTABLE PAKISTANI COMPANIES with a stable export performance were Infinity Engineering, Kortech Radiators, Thermosole, Rastgar Engineering, Darsons Rubber and MGA Industries. New participants, developed through CBI’s Export Coaching Program consisted of Landhi Engineering, IPI, AN Engineering, LOADSand Mehran.

The new companies came well prepared for the fair and together, collected more than 500 trade inquiries, in addition to a wealth of knowledge about trends, competitors and supply sources.

CBI EXPERTS who assisted the ECP companies consisted of Mr. Jan O. Elferink and Mr. Imtiaz Rastgar. been a complete success. The fair is the perfect platform for presenting our company and reaching both existing and new customers. We will certainly be back again for the 2016 edition of the fair and are already looking forward to it.” (Armin Bolch, CEO, PETRONAS LUB RI C A N T S D E UT S C H LA N D GmbH) “For us, Automechanika Frankfurt was very successful. We were able to reach our customers and noted a very high level of interest among potential

www.automark.pk | October-2014 | Page 39

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive Sector - Update customers. For the whole team, this visit to Frankfurt was an extremely pleasant experience. The overall package is simply spot on.” (Wolf-Erik Schmitt, Mead of Marketing & IT, BlitzRotary GmbH) “Making a presentation at the fair is very important for us because this is where we meet existing and potential customers from all over the world. We are very pleased with the quality and the degree of visitor internationality.”

(Susana Oliveira Basílio, Sales Assistant, Jo?o de Deus &Filhos, S.A.) “As in the past, we are highly satisfied with the results of our presentation at Automechanika Frankfurt. The reaction of visitors was very good and the decision makers of the sector were in attendance over the last five days.”

(DrUwe Hartmann, VP Marketing Automotive Aftermarket, MANN+HUMMEL GmbH) “Expect more” was our motto this year and our customers say “more delivered”.

Therefore, we are very pleased with our successful presentation. In particular, the integration of our four product worlds – LuK, INA, FAG and Ruville – on the same exhibition stand proved very popular among both our customers and staff.” (Rouven Daniel, Director Marketing & Communications, Business Division Automotive Aftermarket, Schaeffler Automotive Aftermarket GmbH & Co. KG) “BIZOL has been represented at seven Automechanika fairs this year. From next week, we will begin preparing for Automechanika Shanghai and are already planning our presentation at Automechanika Chicago. From our point of view, the number and standard of pa rticipa nts and visitors a t Automechanika Frankfurt 2014 has been higher and better than in 2012.

This year, we took advantage of a new advertising service and two new press services and are very pleased with both.

Our thanks to the Automechanika 2014 Team for the excellent service and support.” (Marcello Assandri, Chief Marketing Officer (CMO), BIZOL) “From our point of view, this was our best exhibition stand. Automechanika Frankfurt 2014 has been very successful for us. Thanks to our past experience, we were able to prepare optimally for the visitor target groups here and have made and cultivated important contacts.

During the Workshop Days, we offered

a special programme for independent garages, which also proved very popular.” (Hans Peter Gorbach, Mar keting Manage r, MAH A MaschinenbauHaldenwang GmbH & Co. KG) “The primary goal of our presentation as a university was to inform the industry about our research projects.

A nd we succeeded in this.

Automechanika Frankfurt is the ideal platform for us in our capacity as the Chair for the Production Engineering of E-Mobility Components. For a relatively new subject such as e-mobility, RWTH Aachen and its pioneering projects have a key role to play.” (Ruben Förstmann, Scientific Employee, RWTH Aachen University – Chair of Production Engineering of E-Mobility Components) “People felt very much at home on our exhibition stand and we enjoyed a lively and constant stream of visitors. We were able to reach exactly those visitors who were especially interested in our products and are planning to exhibit again for Automechanika Frankfurt 2016.” (Karl-Walter Eberlein, CEO, GESPA GmbH) “Automechanika Frankfurt 2014 is the most important fair for us and was once again a complete success. We met many existing and new customers from fields relevant to us and received many p o s i t i v e co mme n t s ab ou t o ur presentation. Naturally, we hope to be able to continue in this successful direction at Automechanika Frankfurt 2016.” (Pernille D. Lund, Export Assistant, JP Group a/s) “For us, Automechanika Frankfurt is the core fair in the automotive sector and we are delighted to have been able to celebrate our 100th anniversary at the fair. We are very pleased with the customers we were able to reach here and have achieved our target.” (Matthias Hagedorn, Senior Manager Global Marketing Communication, Philips GmbH BC Automotive Aachen) “We have been very pleased with the large variety of international visitors.

The chance to meet both new and existing customers personally during Automechanika Frankfurt is very important.” (Liao Wang, Marketing Specialist Europe, Exide Technologies SAS) “For us, Automechanika Frankfurt is the most important trade fair for the sector. As a global player in the carwash

business, we also benefit from the positive image of Automechanika Frankfurt as the world’s leading trade fair for the automotive industry. We are very pleased with the standard of visitors, which we felt to be very high.

Naturally, this is vital because the fair is an important meeting place for the sector.” (Sonia Mañas, Corporate Marketing, ISTOBAL, S.A.) “Automechanika Frankfurt 2014 has been a complete success for us. Our products have attracted lots of attention and we were even chosen for the Automechanika Innovation Award. Our aim was to make contact with the sector’s decision makers and this we did.” (BjörnStrid, Event- & Sponsorship Manager, Thule Sweden AB) “Automechanika Frankfurt has always been an important event for us. The number of visitors to our exhibition stand was relatively constant throughout the fair. All were very professional. We are also very pleased that Messe Frankfurt not only provided a high standard of service but also ensured brilliant sunshine at the outdoor Car Wash City.” (Otto Christ, CEO, Otto Christ AG Wash Systems)

Background information on Messe Frankfurt Messe Frankfurt is one of the world's leading trade fair organisers, generating around € 545 million in sales and emp loyi ng so me 2, 000 peop le worldwide.

Meeting place for the automotive industry The World's Leading Trade Fair for the Automotive Industry Five days full of special shows, innovations and latest products from the fields of automotive parts, car washing, workshop and filling-station equipment, IT products and services, accessories and tuning.

A total of 4,631 companies from 71 countries showed their special offer to around 140,000 international trade visitors from workshops, industry and trade.

The next Automechanika Frankfurt will be held from 13 to 17 September 2016.

Automechanika Frankfurt trade fair impressions

Press Release by: Imtiaz Rastgar

www.automark.pk | October-2014 | Page 40

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ No. 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

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

Retail Price Rs. 46,000/= Rs. 47,000/= Rs. 69,900/= Rs. 73,500/= Rs. 43,000/= Rs. 46,950/= Rs. 45,000/= Rs. 39,000/= Rs. 42,000/= Rs. 44,500/=

125cc Motorcycle No. 1.

2.

3.

4.

5.

6.

7.

Brand & Model Name Super Star SS-125 Super Star SS-125 DLX Honda CG-125 std Euro II Honda CG-125 DX Honda Dream Ravi Piaggio Storm 125 United US-125 Euro 2

Retail Price Rs. 59,000/= Rs. 67,000/= Rs. 102,500/= Rs. 124,000/= Rs. 105,900/= Rs. 112,000/= Rs. 69,500/=

Suzuki Motorcycle (Heavy Bikes) Sr./ No. 1.

2.

3.

4.

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

Retail Price Rs. 725,000/= Rs. 1,600,000/= Rs. 2,500,000/= Rs. 1,500,000/=

Sr./ No. 9.

10.

11.

12.

13.

14.

15.

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

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

100cc Motorcycle No. 1.

2.

3.

4.

5.

6.

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

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

Suzuki Motorcycle Sr./ No. 1.

2.

3.

4.

5.

Product & Model Name SD110 Sprinter ECO SD110 Sprinter ECO Del

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

Retail Price Rs. 90,400/= Rs. 85,400/= Rs. 98,400/= Rs. 122,500/= Rs. 109,900/=

www.automark.pk Price update: Sep-2014 www.automark.pk | Oct-2014 | Page 41

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Subscription Form Monthly Automotive Magazine

www.automark.pk

The Circulation Manager

Please do not pay in any case

Mailing Address cash Active Communications D-68, Block- 9, Clifton Karachi E-mail: automarkpk@gmail.com Mobile: 0321-2203815 Tel/Fax: 021-32603371

Name:

1800 (Valid for Pakistan only)

____________________________________ Job Title: _____________________________

Company: _______________________________________________________________________ Address: ________________________________________________________________________ ____________________________

Sig.,&Co. Stamp: ___________________________________

City: ________________________

Post Code: ________________________________________

Phone:

______________________ E-mail:

Fax: ________________________

Mobile No: _____________________

Date: _____________

I enclose a demand draft or money order (not postal order) drawn on the karachi branch of a bank I enclose a cheque of Rs.________ payable to Active Communications Cheque sent from all other stations must include 300 rupees extra as bank charges

ONLINE TRANSFER Meezan Bank Ltd., “Active Communications”, A/c No. 0167-0101296066, Branch: Gizri, Karachi

October-2014

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

International Automotive Industry - Update

Toyota plans to develop mid-size sedan for India

To be global, it’s important to be a specialist,” says Rajiv Bajaj, managing director, Bajaj Auto. Rajiv Bajaj, who has steered Bajaj Auto from a scooter and motorcycle maker to a purely motorcycle company, is now working on realising the first part of his statement. “The motorcycle market outside India is double that of the Indian market. That means if Bajaj sells 100 bikes in India, eventually it must sell 200 bikes outside India,” Bajaj told Autocar Professional. Currently, the ratio is moving towards 1:1. For the fourmonth April-July 2014 period, Bajaj Auto exported 527,000 motorcycles and sold 615,000 units in local markets. To reach its ambitious export goal, Bajaj Auto will have to enter many more markets than it does now. Some key markets it is targeting next are China, Brazil and USA. In addition, Pakistan and ASEAN are on the radar. While a Pakistan entry will need the removal of its trade barriers with India, in ASEAN, Bajaj Auto is likely to replicate its successful overseas partnership model with Kawasaki which began in the Philippines a few years ago. Last year, Bajaj sold 95,000 bikes in the Philippines and both companies grabbed the leader position in the market. The Philippines is followed by Indonesia where Bajaj-Kawasaki have implemented the same business model.

Bajaj feels it should also be carried over to Thailand, Vietnam and Malaysia, “step by step.

General Motors to invest $14 billion in China US auto giant General Motors (GM) will invest a whopping $14 billion in China over the next five years and open five new plants to increase sales to nearly five million vehicles in the world's largest car market, its top executive said.

The company's plans for China also includes introducing 60 new models or refreshed vehicles, including nine new models from GM's flagship luxury brand Cadillac, GM CEOMary Barra said.

Toyota Motor is developing a mid-size sedan for the Indian market where it will likely take on rival Honda Cars India's City, the top-selling car in the segment.

The development work has already begun and the car is expected to hit the market at the end of 2016, three people with knowledge of the company's plans said. It will be based on the Etios platform and is internally code-named Etios C or Etios Core, they said.

The car will be positioned between Toyota's existing entry-level sedan Etios and the globally popular Corolla Altis.

The decision was made after conducting several feasibility studies over the past few years, these people said.

Toyota, the No. 1 auto-maker globally, hasn't had a good run in the sedan segment in India, though the Corolla has been a reasonable success. The Etios that it developed targeting India's priceconscious consumers didn't find many buyers.

Japan's Mitsubishi to build new plant in Indonesia Mitsubishi Motors Corp. says it will build a new car factory in Indonesia as part of its plan to raise production capacity in Indonesia from 160,000 to 240,000 vehicles per year.

Chief Executive Osamu Masuko said Tuesday the Japanese automaker will invest $600 million in the assembly plant.

Construction is expected to begin in May next year in Bekasi, a West Java town just east of the capital Jakarta.

Masuko said the plant would begin production of multi-purpose vehicles in 2017. The vehicles are also known as people carriers because they comfortably transport more people than regular cars.

The Associati on of Indonesian Automotive Manufacturers expects Indonesia's car sales to increase by 10 percent this year to 1.3 million vehicles, helped by sales of low cost green cars.

Maruti Suzuki says to recall 69,555 cars Maruti Suzuki India Ltd, India's biggest carmaker, said on last month it would voluntarily recall 69,555 diesel cars due to a faulty wiring harness, making this the company's third recall in less than a year.

In April, Maruti, controlled by Japan's Suzuki Motor Corp, said it recalled more than 103,000 vehicles to replace faulty fuel caps and in November recalled 1,492 cars to inspect the steering column.

While India does not have a standard recall code, the Society of Indian Automobile Manufacturers, an industry body, introduced a voluntary recall code

in 2012 which directs car makers to inform customers about any issues that would compromise their safety and fix it free of cost.

Toyota Motor Corp, Honda Motor Co, Ford Motor Co and General Motors Co have recalled vehicles in India over the last couple of years.

Maruti said on Tuesday it would recall 55,938 units of its Dzire compact sedan and 12,486 units of its Swift and 1,131 un i t s o f t h e Ri t z h at c hb ac k s manufactured between March 8, 2010 and Aug. 11, 2013 to inspect and repair wiring harness fitments.

Yamaha launches new Fazer FI motorcycle in India The new model comes with a newly designed air-cooled 149cc, singlecylinder fuel-injected engine which provides enhanced fuel efficiency and acceleration.

As part of consolidating its product portfolio, the company had recently launched new variants under the FZ series - FZ Version 2.0 and FZ-S Version

2.0.

"With the addition of new Fazer FI targeted at young men between the ages of 18-30, the company hopes to see a steep growth in the customer base in the deluxe segment, especially keeping in mind the mileage conscious target audience," Yamaha Motor India Sales said in a statement.....

www.automark.pk | October-2014 | Page 43

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.