October-2018 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 11, Issue 10
Monthly
AUTOMARK Magazine International Technical Editor
Editor-in-Chief Muhammed Hanif Memon
Muhammad Shahzad
Anwar Iqbal - Chief Correspondent COO, Khalid Mushtaq Motors (Pvt) Ltd.,
Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad
Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi
Engr. IHT Farooqui Chief Operating Officer Pak China Motors Karachi
Farhan Hafiz Director Marketing & Sales M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
Ghulam Faroq Executive Officer & Functional HeadSupply Chain Pak Suzuki Motors Karachi
Advertising Manager
Graphic Designer
Tahir Siddiqui
Salman Hanif
Circulation Manager
Web Master
Hasaan Mustafa
Mustafa Hanif Murtaza Hanif
Contributors in THIS EDITION Anwar Iqbal Aqsa Mirza M. Owais Khan M. Zahid Malik M. Hanif Memon Ali Hassan
Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Mobile: 0321-2203815
E-mail: automarkpk@gmail.com website: www.automark.pk Whatsapp & Wchat : +92 321 2203815 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 Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management
Auto Industry experts welcome the move as non-filers can now purchase vehicles In May 2018, the former government barred non-filers to purchase new motor vehicles manufactured in Pakistan or imported vehicles in order to make people register their names in the taxation office and increase tax filers in the country. Afterward, following the directions of the former government, the Federal Board of Revenue (FBR) had imposed a restriction on non-filers from purchasing new motor vehicles manufactured in Pakistan or imported vehicles, irrespective of engine capacity, from July 1, 2018. The decision was not welcomed by the auto industry and new entrants as they had invested millions to assemble cars and other vehicles in the next one to two years. One of the auto Industry experts told Automark that the ban on non-filers was one of the reasons that contributed to car sales downfall in the country. According to auto industry experts, the car sales fell six percent year-on-year to 39,006 units in the first two months of the current Fiscal year of 2018-19. It was the first time that auto sales declined in the first two months since the Fiscal year 2015. However, according to the latest move the Finance Minister of Pakistan Asad Umar, while presenting the amendments to the budget 2018-19, announced on 18th September that non-filers can purchase cars. The uplifting of the ban introduced a new wave of happiness among auto industry and car assemblers as they think this recent development will bring a significant impact on the sales of vehicles, which will lead to a hike in vehicles’ sales. A dealer while taking to Automark, lauded the government for reversing the policy of banning non-filers from buying vehicles. He said, “more then 80% of the population is non-filer. If we go on with the restrictions that barred nonfilers to buy new vehicles we will be discouraging new entrants. However, tax rates can be increased on non-filers and property tax should also be reviewed.” Another industry expert told us that the move to end the restriction on non-filers was a must step to support the industry. The government can increase the amount paid by non-filers to further give them the incentive to become filers.” CEO of Indus Motors, Ali Asghar Jamali also suggested that it is a good move to promote auto industry of Pakistan. He said I hope things work out well in favor of government and public. Nonetheless, it is indeed a great step by the government as it will give relief to both consumers and automakers, he further added.
Contents
October-2018
News / Event
Article / Review 20 23 28 38 36 44 47
Stiff competition starts between branded bikes; Honda posts impressive April-June result Exclusive by Owais Khan
26 30
Non filer issue for car buying looks more political rather than country’s core issue By Ali Hassan
32
Renault is Ready to enter in Pakistan market Exclusive article by Anwar Iqbal
41
Vision for SME Development in Pakistan A New Economic Era Exclusive written by Ahmad Usman
42
First automobile assembly plant in Pakistan received $66 million worth guarantee from World Bank Group by Aqsa Mirza
43
SMEDA Improved Production Systems at 50 Factories (APMs) with the Support of JICA
45
2019 Hyundai Elantra makes global debut – Toyota Corolla rival
Inside
50
United Bravo launched with price tag of Rs. 8.5 Lac in Pakistan Media Coverage by Automark Pakistan Road Safety Conference September, 5, 2018, Lahore Rugged Road performance test of “Mushtaq KY10” A travelogue Exclusive report by Anwar Iqbal Master Motor Participate IEMA Exhibition, Expo Centre Lahore 1-3 Sep-2018 Media Coverage by Automark PAAPAM Participates in Automechanika Frankfurt-2018 Press Release KORTA Karachi Trade Center Organized Autoparts Collabo 2018, held in Karachi by Aqsa Mirza Annual Dealer Conference by Ghandhara in Bangkok Pak Suzuki Motors held an award ceremony for its digital initiative #MySuzukiMyStory
News Updates 22 35 40 47
49
International Automotive News
Geely bets on bigger cars for growth with new plant
55
Motorcycles Price LIst
Proton’s first ever SUV X70 Details finally released in Malaysia
57
Vehicles / Car Price List
Motorcycles Production Fig. Year 2017-2018
Corporate News - Glimpses
Exclusive Review by Ali Hassan
Monthly AutoMark International
Stiff competition starts between branded bikes;
Honda posts impressive April-June result
Sabir said only four wheeler sector has been given importance in the last five years and again the PTI government also looks reluctant to take any measure on two wheeler which is a common man transport
After two decades, sales of bikes have started showing downward trajectory but market players said the real picture will be more visible in Dec-2018. Surprisingly, the sale of market leader Honda has been plummeting for the last few months amid market reports of both Karachi and Sheikhupura plants’ shut down for few days in a month which Atlas Honda Limited (AHL) has been rejecting. Market analysts are surprised as to why Honda’s sales are going down amid impressive agriculture growth while other players are enjoying quite brisk sales. Honda achieved record production and sales of 115,972 and 115,161 units in April 2018 and since then both production and sales volumes have been facing downward trend. In May 2018, sales fell to 105,283 units followed by 91,507 units in June 2018, 90,009 in July and 80,012 units August 2018. In view of declining trend, JulyAugust FY19 sales of Honda bikes crawled down to 170,021 from 187,249 units in same period last fiscal.
Contrary to falling sales as per figures of Pakistan Automotive Manufacturers Association (PAMA), the first quarter report (April to June 2018) of AHL showed a different picture. The Company posted its highest ever turnover of Rs. 22.1 billion, up by 25.1 per cent over the same period of last year. The positive performance primarily represented volume growth and a better sales mix. Gross profit (GP) for the quarter under review amounted to Rs. 2.1 billion, up by 9.1 per cent. However, the GP percentage experienced a decrease from 11.0 per cent of the corresponding period to around 9.6 per cent, due to increase in raw material prices and depreciation of Pak Rupee against Dollar and Japanese Yen. Sales and marketing expenses rose by 10.3 per cent to Rs. 481.5 million due to higher volumes and spending on promotional campaigns to support the core business. Administrative expenses rose by 6.7 per cent over the corresponding period primarily due to the increase in personnel cost and effects of
general inflation. Other income, net of financial charges, contributed Rs. 267.4 million to the bottom line, 14.4 per cent higher than the comparative period. The Company achieved profit after tax of Rs. 1.2 billion, up by 8.6 per cent. This translated into Earnings per Share (EPS) of Rs. 11.6 against Rs. 10.6 for the corresponding period last year. Bike sales are highly dependent on the growth of agriculture and stable rural economy. But Honda’s bike sales have been facing turbulence after April despite healthy growth in agriculture sector. Higher yields, attractive output prices and supportive policies have provided impetus to the growth. Major Kharif crops such as sugarcane and rice surpassed their production targets while cotton crop managed to exceed last year’s performance. However, shortage of water continued to pose a serious challenge towards the growth of the agriculture segment. Other components of the sector namely livestock, fishing and forestry are showing positive
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Monthly AutoMark International growth. Honda’s 125-150cc segments are in direct competition with its Japanese competitors like Yamaha and Suzuki but numbers of Honda is far impressive. However, buyers have shown interest in Yamaha and Suzuki in Karachi. However, Honda 125-150cc bikes are exposed to the threat of lifting and snatching rather than its rivals especially in Karachi. As a result, one can see Yamaha and Suzuki are plying in larger numbers than Honda 125cc and 150cc in the city. However, in this cut throat competition no assembler is ready to offer any relief to the heavy bike lovers. Consumers are unaware about the price of 125-150cc bikes in Pakistan if compared with international prices as these models are not available in world markets. Some 125cc models are at least three decades old while others are at least a decade old model. Here the customers are the losers by purchasing outdated models at higher prices. Suzuki and Yamaha did not suffer heavily in the previous months. Suzuki sales surged to 3,738 in July-August FY19 from 3,278 in same period last fiscal while Yamaha sales rose to 4,282 from 3,397 in the above mentioned period. The number two player United Auto Industries did not face any setback as its sales remained an average 34,000 units per month in the last few months. As a result, its overall sales in JulyAugust FY19 inched up to 68,858 from 67,023 units in same period last fiscal. The assembler of United bikes has recently launched an 800cc car namely Bravo in Pakistan to attract more consumers towards its platform. Road Prince bike sales stood at 28,181 in the last two months as against 43,395 while Ravi bike sales increased to 5,508 from 5,122 units. Chairman Pakistan Tajir Itehad Mohammad Sabir Sheikh recalled that six months back the situation in bike
market was totally different. For example, buyers of Honda bike models 70cc and 125cc were being asked for premiums by certain authorised dealers of Karachi despite record production by Atlas Honda Limited (AHL). In April 2018, production and sales were 115,000 units which fell to 80,000 units in August 2018, down by 30 per cent. However, Honda was planning to move over 125,000 units in a month, he said. Market is abuzz with reports that September 2018 sales of Honda bikes would near about 80,000 units but in October the sales may rose above 90,000 units due to cotton crop, he said. Aside from sales fall in recent months, bike production of APMA and PAMA members declined by 13 per cent to 2.825 million units in FY18 versus 2.500 million units in FY17. He said there was 0.10 per cent fall in arrival of completely knocked down (CKD) kits of bikes to $17.751 million in July-August FY19 from $17.768 million in corresponding period FY18. Total CKD kits imports in FY18 climbed to $106 million from $92 million in FY17 amid higher claim of over 92 per cent localisation.
In the last few days, many new bikes have been introduced in the market such as Benelli TNT 150, Benelli TRK 502, Super Power’s Sultan 250cc and Neon electric bike. Bike import (used and new) during 2017-18 rose by 59 per cent to $5.72 million from $3.6 million 2016-2017. However, July-August FY19 saw negative growth in arrival as imports stood at only $620,000 as against $1.8 million in same period FY18, down by 66.7 per cent. Sabir said only four wheeler sector has been given importance in the last five years and again the PTI government also looks reluctant to take any measure
on two wheeler which is a common man transport. Sabir said no policy has been made for the two wheelers. Currently four different policies exist for bike assembling – SRO 655 and SRO 656 for bike assemblers, zero per cent duty on raw materials for big assemblers, special SRO for Yamaha bike assemblers and Auto Industry Policy 2016-2021. He said no uniform policy for bike assemblers is available in Pakistan which is also evident from four time price increase made by bike assemblers from January to till to date in view or rupeedollar parity which shows that localization levels are still lower in two wheelers.
Some Chinese bike assemblers have pushed up prices of two-wheelers and auto rickshaw by at least three to four times, following persistent rupee devaluation against the dollar from January till to date and soaring prices of raw materials. Sabir Shaikh said two-wheeler prices would remain under pressure in case the rupee continues to lose its strength against the greenback. Bike sales would remain strong due to lack of effective public and private transport system. Whether petrol price goes up or down, bike sales would remain brisk. He said currently Honda bikes are easily available at even under cost due to lethargic demand in the market. Some dealers were ready to offer Rs 1,0002,000 discount to the customers. This situation has emerged after three years as Honda dealers were previously engaged in over charging, own money and black marketing due to demand and supply gap.
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Motorcycle Production Data - Update
Monthly AutoMark International
www.automark.pk | October-2018 | Page 22
Exclusive Article by Owais Khan
Non filer issue for car buying looks more political rather than country’s core issue Vendors are more worried than auto assemblers because one loss of job in auto assembly means lay off of at least eight to 10 new jobs in the vendor industry directly and indirectly. They said that auto assemblers will start importing CBU vehicles whenever they want but vendors cannot sustain the shock of closing down of their unit as it will affect employment chain besides affecting industrial base
It seems that the issue of allowing non filers to buy cars has become more politicized rather than becoming a serious issue after a sudden interference by acting president of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Waheed Ahmed. Lamenting the proposed measures to allow non fillers to buy property and vehicles, FPCCI acting president said it would defeat the prime objective of broadening the tax base and incentivize the fillers to become non-filers so that they may not be required to go through the hassle of audit and cumbersome process of filling of income tax returns. The issue has certainly lost its credibility as only FPCCI has showed concern while other trade bodies are silent. FPCCI is now under the influence of leadership that has a soft corner for PML-N which has barred non filers from buying cars from July 1, 2018. As a result, the acting FPCCI president without knowing its repercussions on auto sector took full advantage in lambasting the PTI government for r eversing the decision recently
announced in the Mini Budget. Adding fuel to the fire, Pakistan Business Council (PBC), led by Ehsan Malik, also jumped in by criticizing the move of allowing non filers to own cars. However, PBC does not have any members from the car, light commercial vehicles and heavy vehicle industries in its membership list that would have forced PBC to issue statement. Prior to Asad Umar’s changing mood towards non filer issue, Minister of State for Finance Hammad Azhar in a statement to a leading English daily had clarified government’s position by saying that the reversing a ban on non filers of tax returns to buy or sell new cars and property was not taken under any
p r e s su r e f r o m the a ut om o b il e companies or property developers. The State Minister was referring to the criticism of former finance minister of PML-N government Miftah Ismail who introduced the ban on the purchase of new automobiles and first registration imported cars by non-filers. Showing disappointment on lifting ban on non tax payer s by the PTI government, he tweeted that the PMLN government was under intense pressure from the auto companies and land developers but the government didn’t budge. “Automakers (and property developers) have won and Pakistani taxpayers have lost,” he tweeted shortly after the bill was moved in the Assembly in third week of September. Hammad Azhar said the step was taken because many in the government felt the ban violated Article 23 of the constitution. There was no pressure on us by any lobby, he said claiming that nobody from the auto sector or property dev elope rs even co nta cted t he government when this measure was
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Monthly AutoMark International
Senior Vice Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Mohammad Ashraf Sheikh said PAAPAM represents 400 auto parts manufacturers and their 600 Tier 2 suppliers. PAAPAM thanks the government for rectifying an anomaly regarding on non filers taken up. Article 23 of the constitution states “every citizen shall have the right to acquire, hold and dispose of property in any part of Pakistan, subject to the Constitution and any reasonable restrictions imposed by law in the public interest. He said plenty of case law exists where “reasonable restrictions” has been interpreted, and since the article spells out a fundamental rig¬ht, all these interpretations have taken a very narrow view on what can be considered “reasonable restrictions. Further, registration of properties is a provincial subject. Any restriction placed by a law passed by the federal government can be considered as an encroachment on the mandate of the provincial government, and thereby challenged in court. In addition, he said the ban, which was effected through Section 227C of the finance act passed by the PML (N) government as its departing budget p r ese nt ed pl en ty o f “ pr ac tic a l difficulties”, such as “differentiating between overseas Pakistanis, retired people, and younger people who might own a car but are not required to file tax returns”. “The law allows for a huge segment of people to not file returns,” he said. “The previous government did not think about that when they passed this ban. We are working on a mechanism that is workable and practical instead of a blanket ban to disincentivise non-filers,” Hammad said. He also pointed to reduced tax collections in the months of July and August of this fiscal year because of the ban.
When the State Minister had defended the move then why Finance Minister Asad Umar came out with a new twist of reviewing the issue of non filers? There must be some kind of pressure from a more powerful lobby than auto and property stakeholders which forced the finance minister to take a U-turn or change his stance. Surprisingly was Mr Umar not aware about what Mr Hammad had clarified? Many tax experts believe that the decision of restricting non filers to buy vehicles and property was a right and bold step taken by PML-N government towards documentation as this was the only solution to check income statement of a person. The restriction may prove effective in raising the number of non filers towards to pay tax if they are really sincere to their country. They believed that restriction would help in curbing speculative business in auto and property sectors. It is hard to say right now whether the PTI government will really be able to succeed in taking a final decision on non filer issue or will come out with additional measures and conditions for the non filers in order to at least lure them for becoming a filer. According to a print media analysis, one thing is unfortunate that all the government restriction towards non filers is for buyers of new locally assembled and imported cars rather used cars. Non filers can buy already registered used cars or unregistered imported used cars. Tax evaders should be discouraged for buying anything but the rule should be applied evenly on all cars that are registered for the first time in Pakistan.
Non-filers must be completely restricted from buying unregistered used cars. According to the previous law the nonfilers could buy even used luxury cars worth Rs 10-20 million. This government in the new finance bill though has limited the purchase of used cars by non-filers to Rs five million which is still higher than the price of any car produced in Pakistan. The government needs to clarify more things. Some buyers lease cars through banks. Banks are all tax filers and the car remains in the name of bank till the buyer pays the total amount in 3-5 years. Thus technically the non-filers can still get a brand new car which will be transferred in their name after the aforementioned period. The print media news analysis says if the government is serious in penalising the tax evaders it should ban the purchase of all vehicles that are registered for the first time in Pakistan. Auto vendors are more worried than auto assemblers because one loss of job in auto assembly means lay off of at least eight to 10 new jobs in the vendor industry directly and indirectly. They said that auto assemblers will start importing CBU vehicles whenever they want but vendors cannot sustain the shock of closing down of their unit as it will affect employment chain besides affecting industrial base. Senior Vice Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Mo hammad Ashraf Sheikh said PAAPAM represents 400 auto parts manufacturers and their 600 Tier 2
Former Chairman PAAPAM, Aamir Allawala said the potential increase of a few thousand NIL-filers as a result of restoring restrictions on auto purchases will be achieved at a huge cost to new foreign investment in auto sector and will lead to significant job losses in the industry while adversely impacting Government revenue collection on car sales www.automark.pk | October-2018 | Page 24
Article continued from previous page suppliers. PAAP AM thanks the government for rectifying an anomaly regarding on non filers. Vendors are proud to contribute to the government’s nation building efforts by saving precious foreign exchange (through import substitution to the tune of $1.5 billion annually), providing employment to 3 million Pakistani citizens, and generating tax revenues up to 2 per cent of GDP (as we are a fully documented industry), he said. He said PAAPAM fully supports the government’s endeavor to widen the tax net through conversion of non-filers to filers. However, the Association believes that cannot be achieved by taking away the legal rights of citizens to purchase assets and, at the same time, shutting down businesses of related industries. This matter should be resolved at the level of FBR as they have access to required data for pursuing non-filers. An act of not allowing non-filers will not lead to an increase in filers, rather purchase of a vehicle by non-filers makes them prone to accountability and bringing them into the net. Many of potential buyers affected under previous policy were for small cars, belong to rural areas and hence are not required to file returns being agricultural income earners. Overseas Pakistanis, widows with inheritance income and small businesses under threshold. Since the restrictions were imposed in M ay 201 8, futur e boo kin g s o f automobiles are continuously declining. Consequently, demand for local auto parts will also drop drastically, forcing the auto parts manufacturers to start considering layoffs of workers in their respective industries, he said. Former Chairman PAAPAM, Aamir Allawala said the potential increase of a few thousand NIL-filers as a result of restoring restrictions on auto purchases will be achieved at a huge cost to new foreign investment in auto sector and will lead to significant job losses in the industry while adversely impacting Government revenue collection on car sales Pakistan is one of the 40 automobile manufacturers in the country. The auto industry consists of 4 of the top 10 global car manufacturers (Toyota, Suzuki, Honda and FAW) along with 400 tier1 manufacturers of auto mobile components spread all over Pakistan. Since announcement of the 5-year auto policy (2016-21), the industry has
received tremendous response from several global automakers, he said. As of now, 12 companies have been approved as new entrants. The plants in advance stage of construction with investment of $850 million include world renowned brands such as Hyundai, KIA, Renault, Changan, Ghandhara Datsun, Foton and local companies such as United, Regal and Sazgar. Restrictions on non-filers and subsequent market shrinkage will be an extremely negative signal to these new investors in the country, he feared. The automobile industry is completely documented and is one of the top 3 contributors to government tax revenues. The industry’s contribution to national exchequer is expected to go beyond Rs 120 billion in the year 201819, he added. The industry provides direct and indirect employment to 2.5 million Pakistani workers, technicians, engineers and management professionals. Upto 70 per cent of parts used in vehicles assembled in Pakistan are produced by domestic auto parts manufacturers who create 90% of employment in the auto
sector. The total sales of locally produced vehicles in 2017 were about 240,000 units. An additional volume of 80,000 used cars were also imported into the country during 2017. Auto industry of Pakistan needs to accelerate this volume to the critical size of 500,000 vehicles per year as soon as possible in order to attract more investment from outside of the country, particularly from foreign auto parts manufacturers, Aamir said. Without development of auto parts industry, one cannot expect automobile assembly itself to be a “core Industry” in the country, similar to Korea, Thailand, Indonesia and India. As a result of restriction of auto sales to non-filers, a large chunk of potential c ustome rs we re excluded from purchasing automobiles. These included the entire agricultural sector, overseas Pakistanis and small businesses below tax threshold. Since the restrictions were imposed in
Monthly AutoMark International May 2018, bookings of automobiles, especially below 1000cc, declined by almost 40 per cent. Many of potential buyers for small cars, priced from Rs 700,000 to Rs 1,100,000, belong to rural areas and hence are not required to file returns being agricultural income earners. It is anticipated the once in-hand bookings are delivered by December 2018, sales of automobiles will drop by 30-40 per cent depending on models. Consequently, demand for local auto parts will also drop drastically, forcing the auto parts manufacturers to start considering layoffs of 30 per cent workers in their respective industries. The Government is the biggest beneficiary from the auto sector as it fetches an average of 32 per cent as various taxes from price of each automobile sold in the country. The slowdown in auto sales would have led to significant reduction in tax revenues creating a shortfall of almost Rs 40 billion in the current year, he anticipated. The auto sector has also been the biggest contributor to growth in Large Scale Manufacturing and national GDP. He said it is the FBR’s responsibility to increase the tax net. However, it is neither fair nor wise to penalize any private industry such as automobiles by restricting their market size. The CNIC and other details of each auto buyer are provided by assemblers on a monthly basis to the FBR, which can hunt down any non-filers and prosecute them. The following income tax exempt groups will be deprived of facility to purchase vehicles: Agriculture income persons not required to file returns. Families of overseas Pakistanis purchasing locally produced cars, widows with only inheritance as income and small business below threshold. As vehicle sales drop due to a large segment not purchasing vehicles, government revenues will drop followed b y r isi ng unem pl oymen t part s making units, shelving of future investment plans by OEMS and rethinking about investment in Pakistan by new entrants. He said the Industry should not be asked to enforce writ of government. Finally, it is against the law of the land to prohibit anyone from buying property or automobile, he added.
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United Bravo Launching Ceremony cover by Automark
United Bravo launched with price tag of Rs. 8.5 Lac in Pakistan
The United Motors has launched its first 800cc United Bravo passenger car in Pakistan. The launching ceremony was held on yesterday in a local hotel of Lahore where automobile dealers, motorcycle dealers of United Bikes, Government officials from EDB, president LCCI, different vehicles associations representatives of media and many other guest were present, while Chief Guest was Hafiz Mumtaz, Provisional Minister of Excise and Taxation. The hatchback automobile comes with a 3-cylinder water-cooled engine producing 40 BHP and 60 NM torque and a 4-speed manual transmission. The body type is 5 – door Hatchback. The seating capacity is 5 persons and fuel tank capacity is 30 L. For your comfort,
the car is also equipped with an air conditioned. United Bravo features a powered steering, powered windows, touch screen infotainment system, wooden exterior and interior, RPM, USB ports, defogger, alloy wheels and speedometer dials etc. Other features include rear parking camera, alongside seat-belt warning indicator and a remote keyless system. For safety, there is a seatbelt, back foor lock and steering lock. United Bravo comes with a price tag of 850,000. The car is available in three colours; White, Silver and Grey. While on sideline of the event MD of the United Motors Sana Ullah Chodhary told Automark that Car will be available at our 3S dealers across country within
next few days while more dealers are almost ready to receive Bravo cars actpss country. He hope that people will like this vehicle. There was a lot of hype and speculation has been created about this car, mainly because it was believed that United Bravo will break the monopoly of other companies by introducing a price affordable car in the country. United Auto Industries (Pvt) Limited is the 1st local brand and 2nd Largest selling brand of United Motorcycles in Pakistan. The Company received Green Field Investment status under new auto policy 2016-2021 from Ministry of Industry and Production in June2017.
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Monthly AutoMark International
Exclusive article by Anwar Iqbal
RENAULT IS READY TO ENTER IN PAKISTAN MARKET Renault has a huge automotive portfolio. They are abo utt o start vehicle production in Pakistan in 2020, Renault Automotive has started this project in partnership with Al-Futtaim Group, one of the biggest conglomerates of the United Arab Emirate. For setting up this automobile assembly plant, the company has already acquired 54 acres of land in Faisalabad, an industrial city situated in the province of Punjab. This would be Al-Futtaim’s second venture in Pakistan, where it also makes tractors and generators through its subsidiary Al-Ghazi Tractors.“Al-Futtaim is fully committed to the Pakistani market and to this project,” said Colin Cordery,
Renault expect that the factory will commence production in 2020.Renault has been trying to enter in the Pakistani market since last two years, they tried signing a deal with the two Pakistani companies, Dewan and Gandhara, but the negotiations didn’t go through. Renault sees great potential in the Middle East and India region, where it plans to increase its sales volume to more than 800,000 units by the end of its 2022 strategic plan. The company is well established in North Africa and India, and is developing rapidly in Iran; it currently does not sell any cars on the Pakistani market. However in late 50's and in mid 70's the following models
entered in India through a joint venture with Mahindra & Mahindra, it placed high hopes on its maiden product offering Logan - a m id-siz ed seda n launched in 2007. But the car with its dated looks and high pricing failed to strike a chord with Indian consumers. Such was the scale of the failure that it ended up killing the joint venture in 2010. Renault's brand name took a massive hit in India. Ironically, the Logan's failure laid the foundation for
Senior Managing Director of Al-Futtaim Automotive International. “We, together with Groupe Renault, are delighted to have completed the land acquisition, which is an important milestone in t he project. Once construction work is completed, the state-of-the-art assembly plant will have a total installed capacity of over 50,000 units per annum. Al-Futtaim and
were introduced in Pakistan. Unfortunately, against German, Birtish and Japanese cars Renault cannot make its place in Pakistan market in the past. Now Renault is very much inspired and encouraged with its success story in our neighboring country India, although Renault has exper ience d many upheavals in India. When Renault first
the success of Renault's compact sportutility vehicle (SUV) Duster. The Duster took the Indian market by storm. It fuelled the segment of compact SUVs and grabbed a 23 per cent market share within a year. The Duster's success was such that Renault had to triple production within months of its launch from seven per hour to 20 per
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Monthly AutoMark International hour. Similarly, Renault is expected to introduce latest vehicles and technology in Pakistan’s market in an attempt to break the monopoly of the three dominating Japanese assemblers – Suzuki, Toyota and Honda. Renault DUSTER may be the first model which would be assembled and launched in Pakistan.
Renault DUSTER Has a revolutionary new engine which is tuned perfectly to generate exceptional power and torque. But power is nothing if it’s not delivered dynamically. That’s why the DUSTER’s new petrol engine comes mated with a state-of-the-art X-tronic CVT
Current Scenario AlFuttaim Group, a large conglomerate operating in the United Arab Emirates, has decided to invest $230 million in Pakistan’s automobile sector through a joint venture (JV) with French carmaker, Renault. Officials of the Engineering
AUTO POLICY 2016-2018: Officials stated that the government has given 10 companies the status of ‘green field investment’, a type of foreign direct investment (FDI) where a parent company builds its operations in a foreign country from the ground up, while two companies have been given ‘brown field investment’ status, where a company or government entity purchases or leases existing production facilities to launch a new production activity. As per the documents available with this scribe, Regal Automobile Industries in collaboration with DFSK Motor have invested $10.71 million to assemble light commercial vehicles (LCV) and sports utility vehicles (SUV).
(continuously variable transmission). The DUSTER also comes with a powerful 1.5 litre diesel engine. Available in two avatars, the AWD variant is designed to adapt to any terrain while the 6-speed Easy-R AMT variant makes driving effortless even in the harshest conditions. With its astounding features, the Renault DUSTER truly lives up to the term, the true SUV. The mini-car segment is the toughest segment and very hard to break but Renault has plan to enter in this segment too. They have a model called Kwid, the Renault KWID comes with a host of thoughtful features, having an eight hundred cc engine. On the outside, the new Razor-edge Chrome Front Grille
highlights the Renault diamond logo, while stylish fog lamps further enhance the Renault KWID’s striking stance. On the inside, the new stylised chrome gear knob adds to the appeal while the new first-in-class rear 12V power socket ensures phones remain charged in the backseat too. Moreover, the new firstin-class Rear Armrest of the KWID CLIMBER makes for a more relaxed posture. Renault would be the second European automobile company who will start CKD operations in Pakistan. Italian car maker FIAT was the first European brand which started its CKD operations in Pakistan in late nineties but failed to attract the Pakistan customers.
Development Board (EDB) told media that Renault has formally given an application with regard to establishing an assembling plant in Pakistan. The company has acquired 54 acres of land in the Faisalabad Industrial Estate Develo pm ent and Ma nag ement Company (FIEDMC), the largest
industrial zone in the country. The latest technology-oriented cars of Al Futtaim-Renault are expected to hit the roads in 2020, officials said, adding that 12 automobile companies have made an investment of $746 million under the Auto Development Policy (ADP) 2016-21.
Similarly, United Motors (Pvt) Limited in partnership with Luoyang Dahe New Energy Vehicle and Yangste Motor Group have invested $19.05 million to assemble 800cc passenger cars, 1,000cc LCVs (pick up) and vans. Khalid Mushtaq Motors (Pvt) Ltd in a JV with Changan Kuayua Automobiles has invested $3.50 million to assemble LCVs. Kia Lucky Motors Pakistan Ltd, invested $190 million in the country’s automobile sector. Hyundai Nishat Motors (Pvt) Ltd., in a JV with Hyundai Motors will establish an assembling unit to manufacturer LCVs, electric cars and SUVs with an investment of $163million. In addition, Foton JW Auto Park (Pvt) Ltd in collaboration with Changsha Foton Vehicle Technology will invest
$11.45 million to manufacture LCVs and heavy commercial vehicles. Sagzar Engineering Works Ltd in partnership with BAIC International Development Company will make an investment of $31.01 million. Master Motors Ltd in a JV with Chongging Changan Automobile, Changan International Cooperation and IVECO will invest $101.52 million. Dewan Farooq Motors in partnership with Ssang, Kia and Kolao Group of South Korea/Laos will invest $145 million, and Ghandhara Nissan in a JV with Nissan Motor Cooperation Japan will invest $41.3 million to manufacturer LCVs, SUVs and passenger cars. Both the abovestated companies got the status of brown field investment.
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Glimpses of the Conference
Pakistan Road Safety Conference September, 5, 2018 at Avari Hotel, Lahore
Organized by Institute of Road Safety Traffic Environment Pakistan
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Monthly AutoMark International
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Exclusive Cover by Anwar Iqbal for Automark
RUGGED ROAD PERFORMANCE TEST OF “MUSHTAQ KY10” A TRAVELOGUE
Assembling vehicles and getting the public to buy them is a demanding and highly competitive business. Assemblers agonize over ways to make their cars, trucks, light commercial vehicles and SUVs even marginally better than another company's vehicles. To make sure their vehicles live up to the consumers' standards and one-up competitors, auto makers test their vehicles in all types of environments. While much testing can be done on closed tracks, real-world vehicle testing
needs to take place in real-world conditions. By combining data from the track with information gleaned from driving on public roads, automakers use testing to create vehicles that they hope will satisfy the market. This broad process covers everything from performance and comfort to reliability to load carrying capacity and safety. It also encompasses quality and appearance. The idea behind vehicle testing is that it allows manufacturers to work out all the kinks and potential problems of a model before it goes into full production. It's much cheaper to eliminate a problem with a product before you begin mass producing it than it is to discover problems and try to fix
them afterward. We at Khalid Mushtaq Motors are working on the same philosophy. We are about to launch our first light commercial vehicle "MUSHTAQ KY10” in first quarter of 2019. We tested MUSHTAQ KY10 on Pakistani roads. This test drive started from Karachi up to Pakistan China border at Khunjerab and back to Karachi. The Khunjerab Pass is the highest paved international border crossing in the world and the highest point on the Karakoram
Highway. The elevation 4,880 meters or 16,010 feet. The objective of this preproduction test was that we want to fix problems by ourselves, before consumers have a chance to experience any problems and complain. Our Chinese Principal M/s. Changan Kuayue Automobile Co.,Ltd provided us related performance test gadgets in which the most important wasDataloggers and Data Acquisition Systems. Dataloggers are an essential component
in data acquisition systems. They can scan a wide variety of measurement sensors, perform any programmed calculations, convert the data to other units of measurement, and store the data in memory. Dataloggers can also transmit the data for analysis, sharing, and reporting, as well as control external devices. It is instrumental in testing the following: General Testing, Chassis monitoring, Road noise, Vehicle speed, Climate C o nt r o l T e s t i ng , A m b i e n t a i r temperature, Supply air temperature, Solar radiation, Fan speed, Interior temperature, Time to comfort, A/C on and off, Refr igerant pressures,
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Suspension Testing, Strut pressure, Spring force, Travel, Mounting point stress, Deflection, Brake Testing, Line pressure, Pedal pressure/travel, Line/pad temperature, ABS, Engine M o n i t o r i n g , O i l pr e s s u r e, O i l temperature, Water pressure, Water temperature, Fuel injector timing, Crank position, RPM, Noise level, Heat detection, Catalytic converter, Cooling fan speed, Manifold pressure, Manifold temperature, Exhaust gas temperature etc. etc. During this whole performance test exercise two representatives of our principals Mr. Michaul Yu and Mr. Guo Wei were with us. They are highly
qualified professionals of their relevant field. Some 60 kilometres – from Naranlies the beautiful Lulusar Lake. The lake is visible from the road and is the source of River Kunhar. After the lake, the road continued its steep ascent passing through glacial spurs, until we reached the Babusar Pass. In January 2010, a massive landslide blocked the flow of River Hunza, causing a lake to form.The subsequent lake submerged several villages and parts of the Karakoram Highway, displacing thousands of people. It is now called Attabad Lake.Initially, boats were used for transport across the lake, but the
highway was eventually realigned and tunnels were built high up on the slopes of the mountain by Chinese engineers. Our road performance trip was started on 8th August, 2018 from Karachi where the altitude is 8 meter around 27 feet and the finishing point was Pak China Border at Khunjerab where the altitude is 16010 feet. The temperature in Karachi was 34 centigrade whereas 5 to 7 centigrade in Khunjerab. We came back to Karachi on 22nd August, 2018. This was the historical and most successful vehicle performance test trip so far.
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Monthly AutoMark International
Automotive News - Update
ABPL signs strategic partnership with Atlas Honda Pakistan
Al Baraka Bank Pakistan Ltd (ABPL) has recently signed a strategic alliance agreement with Honda Atlas Cars Ltd. Through this venture, Al Baraka aims to enhance customer experience and provide priority delivery of Honda vehicles to Al Baraka Carsaaz (Auto Finance) customers. This alliance will not only provide affordable Islamic financing solutions to customers but will also facilitate in ensuring timely delivery of their dream Honda cars, thus cementing the Bank's position as a dependable service provider. The agreement was signed by Ahmed Shuja Kidwai, CEO Al Baraka Bank Pakistan Ltd. and Amir Nazir, General
Manager- Sales & Marketing, Honda Atlas Cars (Pakistan) Limited. Other senior members present during the signing ceremony were; Amna Tahir Manager Corporate Sales Honda Atlas Cars, AkifImtiaz Head of Consumer F in an c e, Al B a r a ka Ba nk a n d Muhammad Hammad Waqar Regional Business Head, Al Baraka Bank. Speaking on the occasion, Ahmed ShujaKidwai, CEO Al Baraka Bank Pakistan Limited said "Al Baraka is committed to provide superior customer services to its consumers and this partnership will add value to the products and services offered to our customers."-PR
Tractors production grew by 33.2pc to reach 71,894 in FY2017-18 The domestic production of tractors during fiscal year 2017-18 witnessed growth of 33.20 percent as compared to production of the corresponding period of last year. During the period from July-June, 2017-18 about 71,894 tr actor s w ere manufactured as compared to the 53,975 tractors of same period of last year. On month on month basis, the local production of tractors also grew by 15.21 percent as it was recorded at 3,926 units in June 2017 to 4,523 units in June 2018. It may be recalled that the overall Large Scale Manufacturing Industries (LSMI) of the country witnessed growth of 5.38
percent during the year 2017-18 compared to last year. The LSMI Quantum Index Numbers (QIM) was recorded at 147.07 points during JulyJune (2017-18) against 139.55 points during July-June (2016-17), showing growth of over 5.38 percent. Meanwhile, the production of trucks witnessed growth of 5.76 percent by going up from the output of 608 units in June 2017 to 643 units in June 2018. The production of trucks also increased from 7,712 units last year to 9,187 units, showing growth of 19.13 percent while the production of tractors increased by 33.20 percent, from 53,975units to 71,894 units.
Honda Atlas launches ‘5S’ programme Honda Atlas Power Products and NizamuddinFaridulHaq Group have jointly launched "5S" the second series of the Honda's Nationwide Technical Service Training Program. 5S is the one the five pillars "Seiri" (Japanese word means putting things in order), "Seiton" (Japanese word means Tidying up), "Seiso" (Japanese word means Cleaning), "Seikestu" (Japanese word means Cleanliness) & "Shitsuke" (Japanese word means Discipline), a management concept implemented by the Japanese nation that made them become one of the gigantic economic powers of the world. The camps will be led by Kenji Tokuta from Honda Motor Co., Ltd. Japan. Tokuta is a seasoned trainer and has decades of applied experience on the Honda general purpose engines & power products. This unique format of training is being organized free-of-charge with the prime motive of uplifting the general skills of the technical staff related to sports fields, particularly the Cricket Grounds at school/university, clubs, and international level in Pakistan.-PR
DRIVE SAFE
Incentives for new entrants may hinder auto parts sector The auto parts sector may not benefit from the auto industry’s expansion, as a c c o r d i n g t o f o r m e r P a k i s t an Association of Automotive Parts and Accessories Manufacturers (PAAPAM) chairman Aamir Allawala, there are concessionary tariffs for import of CKD parts, which do not make it lucrative for new players to indigenise their production. According to a JS report, new entrants will invest $820 million in the aftermath of the Auto Development Policy 201621, which is expected to enhance the existing auto industry’s capacity by 60%. Total additional capacity from the new entrants has been estimated at 192,000 units in the report. The total auto
industry capacity of passenger cars, LCVs and SUVs of the country is expected to increase from the existing 280,000 units to around 465,000 units within the next two to three years. “Pakistan auto parts manufacturers have grown significantly as volumes have increased to around 230,000 vehicles last year,” Allawala told press media. Besides, it is to be kept in mind that 80,000 used cars were also imported through misuse of schemes meant for overseas Pakistanis, he added. “Hence, the total market size is over 300,000 vehicles per year.” He said that with the arrival of new players, there will be a wider choice available to consumers. “However, if there is no
economic growth leading to growth in automobile demand, all assemblers will see their volumes shrinking as total volume will remain the same,” he said. But the low motorisation rate of the country, which stands at 18 vehicles per 1,000 people, suggests that there is immense potential in the country. Moreover, some auto players even take half a year to deliver a car after a buyer has booked it. Allawala said that there are concessionary tariffs for new automakers in the country, which will hinder growth of local auto parts industry. “The new players have a concessionary tariff for import of CKD parts for a period of five years.
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International Automotive - Report
Monthly AutoMark International
Geely bets on bigger cars for growth with new plant The new capacity will enable Geely to produce roughly 250,000 more cars a year in Ningbo and add larger cars to its lineup, as well as ramp up launches at its new brand Lynk & CO, which Geely developed jointly with Volvo
China's Geely is building a new plant to produce a quarter of a million biggersized cars that it expects will power future growth and help meet its goal of selling more than 2 million vehicles by 2020, two people familiar with the matter said. Zhejiang Geely Holding Group, one of China's five biggest automakers and the owner of Volvo, is building the facility in the eastern port city of Ningbo where it already operates an assembly plant, as per the sources and information on a Geely-owned construction bidding procurement website. Once known for its cheaper, copycat designs and poor quality, Geely has assumed upmarket aspirations after the Volvo deal and has expanded sales significantly since 2016 by banking on smaller compact cars. T he pla nned c apac it y incr ease underscores its ambitions as well as the shift in customer preferences toward bigger vehicles such as SUVs and minivans in China, the world's biggest auto market. The new capacity will enable Geely to produce roughly 250,000 more cars a year in Ningbo and add larger cars to its lineup, as well as ramp up launches at its new brand Lynk & CO, which Geely developed jointly with Volvo. The plant will have two assembly lines. According to information on the Geelyowned website, the automaker plans to spend 3.4 billion yuan ($498.3 million) for one of them. The overall investment planned for the plant was no t immediately known. Geely unveiled two years ago its goal to produce and sell 2 million vehicles and become a major global automaker by 2020. It has made steady progress towards that, with sales of Geely branded vehicles forecast to reach 1.58 million vehicles this year. LMC Automotive's senior market
analyst, Alan Kang, says global automakers such as Ford Motor and Hyundai Motor are now losing market share to Geely in China with customers flocking to an array of compact cars Geely has developed by benchmarking Volvo technology and expertise. Those Geely vehicles, such as the Boyue SUV and Borui sedan, are priced at 100,000-160,000 yuan ($14,600$23,400) and 120,000-180,000 yuan ($17,600-$26,300), respectively. "But they need bigger, fancier cars to keep growing," LMC's Kang said. "Geely needs to do that to better compete with global brands." Geely also needs bigger cars to raise transaction prices to grow revenue.
Stretched resources?
Some question how much longer Geely would be able to sustain the break-neck expansion within China and globally. In addition to Volvo, Geely invested in a 49.9 percent stake in Malaysia auto manufacturer Proton and, through its
founder, bought almost 10 percent of German car maker Daimler. "No doubt Geely's resources are getting stretched thin, and that's testing the limits of management, engineering capability, marketing, and brands," said James Chao, an independent auto industry consultant. Geely's quality too has room for improvement. Buyers of Geely cars have complained on social media about engine lubricant oil leaks, wind noise and vibrations, rusting, suspension issues, among other gripes. For the Geely brand, the company plans to use the new capacity to add to its product offerings several midsize vehicles designed on a new platform called D-segment modular architecture. Among those midsize crossovers is a three-row, seven-seat SUV, similar in size to vehicles such as the VW Teramont and the Toyota Highlander, a category that is not represented in Geely's current product lineup. Geely also plans to leverage the planned new capacity to expand the product lineup of Lynk & CO. Among the new cars Geely plans to produce for Lynk & CO are a three-row, seven-seat crossover which has been designed by Lynk & CO using Volvo's platform for larger cars.
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Exclusive written by Ahmad Usman
Monthly AutoMark International
Vision for SME Development in Pakistan A New Economic Era
SME's
employ nearly 80% of Pakistan's non-agricultural work force; prosperity within this sector has huge upstream and downstream benefits. Since most of the large corporate giants and their upper management/owners have better access to corridors of power and hence policy influence, the on-ground voice of SME's is lost and seldom heard. Over the years, there has been a lack of focused attention from government leadership including a lack of vision and objectives, which define structural improvement in SME policy. Research, analysis, policy making and implementation must be driven from the very top of government. It is also discouraging to see that there is practically no representation or platform forhigh performing SME's to partake in the discourse on economic policy in Pakistan. This disconnect is evident in resultant economic performance indicators. The hard-hitting target of increasing industrial productivity must be approached from multiple directions by resolving a variety of issues in parallel. An increase in industrial productivity will result injob creation, rising incomes and higher spending/local demand oriented economic activity. This will
catalyze more efficient businesses that will naturally form competitive and comparative advantages through the free market and will become the bedrock of our export orientation and economic sustainability in volatile global environments.Tariffs and protection will only work to increase local manufacturing productivity if it is c o up l e d w it h i m p r o v e m e nt in manufacturing efficiency and skill development of workforce. Otherwise, in the long run, tariffs and protectionism only harms local industries in any country because it reduces motivation for businesses to improve, as they know they will always have a safety net and will be protected with tariffs to make imported goods more expensive. It is important to understand that this comfort zone actually harms the country and their own ability to be competitive. This lack of competitiveness will be evident in lack of exports or loss of local business if foreign companies decide to set up
operations in Pakistan. While protectionist policies have some short to medium term advantages, they must be part of a 360-degree approach to improving domestic productivity. Development strategies should also not focus simply on monetary and fiscal measures. They should focus on thought and mentality within SME’s, which will unlock and catapult a mindset of growth and entrepreneurship. Every large enterprise was once an SME at some point in its history and this will always be the same cycle, an economy should focus on its roots and the outcome will always be strong. Sometimes it is too easy for people to invest in non-business ventures and park their money in relatively safe investments. The government should make a conscious effort at encouraging people to start businesses and develop their thinking along the lines of need based business ideas and technology based businesses. As mentioned above, the need for skills development to enhance the productivity by mentality change of employees is essential. These programs should mainly be government run as private initiatives will never be able to roll them out at a scale that is needed, nor have cross industrial buyin that government machinery can achieve. It may also not be a lucrative return on investment for a private initiative. The above is in addition to the dire need of basic vocational training for the various industries in operation in Pakistan such as textile, plastics molding, sheet metal, casting, food processing, pharmaceuticals, sports foods, surgical goods, cloth weaving, furniture, etc. the list is endless. It is also important that this should be rolled out in the form of a short and basic curriculum in the public schooling system of Pakistan before FSC. This will in turn become a feeder for vocational training institutes for interested students. It is essential that students be given awareness and an opportunity of vocational skills at a young age to see the benefit of it out of their own interest rather than be forced
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Monthly AutoMark International
Automotive News - Update
Sindh ropes in $400m Chinese investment
A Chongqing-based Chinese industrial group is planning to invest $400 million in various projects in Hyderabad and elsewhere in Sindh. A memorandum of understanding (MoU) had already been signed in this regard, a representative of the Chongqing Federation of Industry and Commerce, Zhang Yang, told media persons here on last month. The MoU was signed between the federation and office-bearers of the Hyderabad Chamber of Commerce and Industry (HCCI) in China some time ago. Funds, Yang said at the HCCI, would be invested in steel, textile and clothing, real estate, agriculture, tourism, education and training, municipal and solid waste disposal sectors. “We have also declared Chongqing and Hyderabad as friendly cities,” he said. According to him, as many as 34 industries and investors from Chongqing would invest in joint ventures in Hyderabad and elsewhere in Sindh. “We are (already) maintaining a successful cooperation in the three-wheeled motorcycle industry. We will deepen this cooperation in the steel, textile, real estate and other sectors,” Yang said. He said Chongqing was home to China’s automobile and motorbike industry. “Hyderabad is a suitable investment destination. We will introduce advanced
technology. This is just the beginning.” Answering a question, he said that Hyderabad had been selected for investment in line with proposals submitted by the HCCI. “This MoU is part of the CPEC, These 34 Chinese companies will make direct investments in various sectors here,” former HCCI president Goharullah explained. HCCI’s vice-president Ziauddin, who signed the MoU, said the formal agreement would be inked between Hyderabad and Chongqing mayors in October this year. According to him, local companies would sign agreements when Chinese delegations visited Hyderabad soon.
Ziauddin said that HCCI had requested the mayor of Hyderabad Syed Tayyab Hussain to accompany them when they visited China recently, but he could not accompany because of his busy schedule. A sub-office of the Chongqing federation had been established in Hyderabad’s SITE area, which would also be inaugurated in October this year. Meanwhile, the Fateh Group of industries would launch its hybrid motorcycles under one of the first such joint ventures with a Chinese company
to take it up later due to lack of other opportunities. If the vocational skills training sector of Pakistan improves, the follow on affect of this is so huge, many people do not realize the benefits. There are whole industries currently formed out of uncertified skills such as electricians, plumbers, mechanics, etc.that exist in the market will not only become organized and skilled, they will be able to charge better prices for quality certified services. Steadily this will elevate the vast majority of our population in terms of education, skill and income and will create a wave of
new microbusiness owners. Pakistan is at the precipice of huge economic growth via our SME's. All potential for local productivity and technology improvements to reduce reliance on imports and export-oriented growth will come from businesses that are right now SME's, 40% of our GDP comes from SME's alone. There are multiple methods and strategies through which a comprehensive SME development plan can be devised with SMART (SpecificMeasureable-Actionable-Relevant-Time bound)objectives and result oriented
KPI’s. It is important to understand that SME businesses do not have tall and multilayered management hierarchies, there is a constant and direct connection between owners, employees, production challenges, quality issues, technology constraints, purchase and sale supply chains as well as daily administrative and government office interaction. An SME owner is at the true forefront of observing policy in action and challenges faced by the average Pakistani. Exclusive written by Ahmad Usman Director operations Plastech Autosafe
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International Automotive News - Update
Monthly AutoMark International
Proton’s first ever SUV X70 Details finally released in Malaysia Weeks away from the official launch of Proton’s first ever SUV, and a closeddoor viewing at the co mpany’s headquarters in Kuala Lumpur, finally revealed crucial details of the car, as well as the name, which is X70. The new model will be sold through qualified Proton sales outlets only. To start, there will be four variants on offer, starting with the base Standard 2WD, Executive 2WD, Executive AWD and Premium 2WD. All variants will feature a 1.8 litre TGDi turbocharged four-cylinder petrol engine producing 181 hp and 285 Nm of torque. Design-wise, it’s pretty much the same as we’ve come to expect, seeing the number of times the X70 has been leaked. Up front, it gets a unique winged grille design with three horizontal bars that converge into the Proton badge, and the entire piece is encased in thick chrome surrounds. Very little cosmetic changes have actually been made, because the bulk of work has been to convert it from left-hand drive to righthand drive – the Boyue is the first Geely model to be converted to RHD. Proton’s head of design, Azlan Othman, had earlier said the reason for the minor cosmetic tweaks is to speed up the X70’s market introduction, but more visual changes will come in the CKD version, which is slated for a mid-2019 arrival. For now, the X70 gets keyless entry (with active touch sensors on the front door handles) with push-start, electrically foldable wing mirrors, LED projector headlights with LED DRLs, LED fog lamps, 18-inch alloy wheels with Hankook Dynapro HP2 (225/60 R18) tyres, and dark-tinted LED tail lights. As with all recent Proton models, both the head- and tail-lights feature Proton lettering. Inside, again, things remain fairly similar to the Geely Boyue facelift, on which the X70 is based on. There’s brown Nappa leather on the seats, door card inserts and steering wheel (on the Premium model, Exec get black synthetic leather), automatic dual-zone climate control and a widescreen 8.0inch touchscreen infotainment system (1 , 9 2 0 x 7 2 0 p ix els) w it h 4G connectivity. Auto headlights and wipers
are also on. There’s also voice recognition support (designed with Malaysian English in mind), as ‘demonstrated’ by our premier Tun Dr Mahathir, as well as a fullydigital and configurable instrument panel, which is a first for the Proton brand. Decorative trim and material include brushed silver and wool inlays on the dash and silver grab handles. There’s also an Infinite Weave design element found on the door handles and speaker grilles. Elsewhere, there are rear air-con vents and a full-sized panoramic glass roof, but the latter is only available on the top variant. According to Yang Jun, VP of group engineering at Geely, the X70 will not be short on technology and equipment. Other features include a 360-degree camera, which shows a 3D view of obstacles surrounding the car, as well as a forward-facing camera at the top of the windscreen to enable the car’s driver assist systems. These enable functions such as autonomous emergency braking and adaptive cruise control. The X70 will also come with a blind spot monitor. Also on are the “Smartphone Remote Control” and “Smart Air Purifier” features, the latter in reference to the “Air Cleaner” system that can be found above the rear air-con vent between the front seats. A tyre pressure monitoring system is also on the equipment list, and safety kit will include six airbags. Other amenities include USB charging ports for the front passenger seat, two more at the back of the centre console, as well as another port behind the rear-
view mirror, for those who want to install driving video recorder (dashcam). On the top-spec Premium, the front passenger seats are powered with Toyota Camry-like shoulder controls to boot, while a rear subwoofer is present under the boot floor, sandwiched between the space-saver tyre. In terms of performance, the output seen on the 1.8 litre TGDi turbocharged four-cylinder petrol engine – which uses Shell oil as the recommended lubricant – is the highest tune available for the petrol-powered Boyue, and the mill is mated to a six-speed automatic transmission. There are front-wheel drive or all-wheel drive versions to be ha d. A c c o r d in g to the e ne rg y consumption label found on cars in China, combined fuel consumption for a TGDi front-wheel-drive Boyue weighing 1,690 kg is 7.8 litres per 100 km (12.8 km/l). So far, the available exterior colour options as we can tell are Flame Red, Snow White, Armour Silver, Jet Grey and Cinnamon Brown. As for the name, Proton adds that ‘X70’ was the most popular choice from almost 90,000 participants that voted in the company’s poll, accounting for 60% of the total votes. So far, the national automaker has 77 test vehicles in its fleet and has performed up to 300 vehicle tests and over 500 vehicle system tests on the car. Approximately 750,000 man-hours have gone into the making of this model, and the test mule has clocked over two million kilometres of reliability testing.
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Glimpses of the Exhibtion
Monthly AutoMark International
Master Motor Participate IEMA Exhibition, Expo Centre Lahore, 1-3 Sep-2018
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Monthly AutoMark International
Internation Exhibition - Press Release
PAAPAM Participates in Automechanika Frankfurt-2018
Automechanika Frankfurt-2018, in Germany Sep 11 - 15 is the world’s most successful B2B trade fair for the auto engineering industry of the world. The automotive aftermarket is of major economic significance, and Automechanika offers a shared platform for everyone involved. Visiting the platform is absolutely essential for anyone looking to keep up with the rapid developments in the automotive services sector. Automechanika Frankfut is where the leading companies and visionary firstmovers come to showcase their innovations, and it is where industry experts discuss the latest challenges facing the industry. About 133,000 professional visitors from 170 countries attended the show this year where 4,843 exhibitors from 76 countries presented their inno-
vations, products and solutions. This year 15 companies and dozens of businessmen from Pakistan participated in the mega event. The Former Chairman of PAAPAM Mr. Mashood verified that this year, due to the growth in the auto sector of Pakistan, companies were eyeing to create a liaison with the Pakistani companies. I have visited many associations from different parts of the world and this year their feedback was different then before. Following associations were given a detailed presentation on the future of Pakistan and the Industry: - Eastern Cape Development Corporation / South Africa - Argentina Association of Auto Parts - Automotive Components Manufacturers Association INDIA - Association of Small & Medium
Enterprises Singapore - German Trade and Investment - And many more Mr. Mashood was representing the Pakistan Association of Automotive parts & Accessories Manufacturers PAAPAM at the mega event, with the basic objective of trying to create a joint cooperation between two industries with cooperation through the association. We want to attract visitors, buyers and exhibitors from different parts of the world to come and see what Pakistan has to offer in the next Pakistan Auto Parts Show scheduled to be held in Karachi in April 2019. This exhibition is great opportunity to brand Pakistan as the next engineering destination and that is the Plan of the association to create an international footprint through its members.
Meeting with VDA the German Automotive Association of Germany. Representatives included members from thr foreign trade promotion and Development Policy Department
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Ongoing Cooperation JICA with PAAPAM
Monthly AutoMark International
SMEDA Improved Production Systems at 50 Factories (APMs) with the Support of JICA
Japan’s technical support has helped local auto parts manufacturers to get prepared for export market by improving quality and productivity of the ir pr oduc ts, as per worl d’ s requirements. It was stated by Mr. Mukesh Kumar, Provincial Chief Sindh, Small and Medium Enterprises Development Authority (SMEDA), while addressing a technical workshop held at a PAAPAM Skill Development Center (PSDC) Karachi Office, here on September 05th, 2018 to brief the second term activities of SMEDA-JICA joint project being run for technical support of the auto parts manufacturing industry in Pakistan. The program was also addressed by Yoshihisa Onoe- Senior Representative of Japan International Cooperation Agency (JICA) Pakistan Office, Hiroshi KANEKI-Chief of JICA Technical Team, Hiroshi SASAKI-Deputy Chief of JICA Team, Mr. Ikuta, Mr. Ishitaki, Mr. Sato (JICA Experts) and Muhammad Ashraf Sheikh, Senior Vice Chairman & Chairman PSDC Mr. Mashood Khan, Pakistan Association of Auto Parts and Acc ess ori es M anufactu rer s (PAAPAM). Mr. Kumar further added that Auto sector is one of the rapidly growing sectors in Pakistan. Its contribution towards the national economy in the form of technology transfer, employment and revenue generation is
visible. He told that there is need to furt her impr ov e quality, br ing innova tion and flexibility of manufacturing system which is being addressed with the support of JICA. Y o s h i h i s a O no e - t h e S e n i o r Representative of JICA, in his address, assured to continue the technical support for Pakistan’s industry to compete the world market in respect to technical know-how and the modern manufacturing techniques. H e a c k no w l e d g e d th a t J I C A ’ s collabor ation with SMEDA and PAAPAM has proved to be very useful for the local auto parts’ manufacturing industry in Pakistan. He was glad to note that productivity of the sector had increased to an optimal level, whereas, the rejection rates to be witnessed in the manufacturing processes had reduced to the lowest possible level. He said that the SMEs, engaged in auto parts manufacturing, had a great potential to compete the world market and assured to extend the fullest technical support of JICA to impart the best practices being exercised in auto sector of the developed world. Muhammad Ashraf Sheikh, Senior Vice Chairman (PAAPAM) appreciated SMEDA initiatives to get JICA’s technical cooperation for auto parts industry. He said that PAAPAM members had greatly availed of the assistance to increase their productivity
and reduce rejection rates in their manufacturing processes. He urged SMEDA and JICA to continue the program even after completion of the set period. Chairman PSDC Mr. Mashood Khan also spoke of the project which started 2 years ago with 12 companies from Karachi and 10 companies from Lahore were included, and now more than 30 companies Karachi & Lahore
Some of the Key Achievements of the SMEDA-JICA Project: • Productivity increased from 12% to 20% • Quality improvements within the companies different departments. • Lean Management, 5s, Production Control where thought and implemented. • Capacity building of Employees • Bottlenecks in production, supply chain, where addressed • Space in layout free at least 10% • Enhancement of business for local & export business • Skill manpower in PAAPAM members companies and SMEDA staff too The Association requested JICA to continue and enhance these training programmers for growth of the auto parts manufacturers.
www.automark.pk | October-2018 | Page 44
Conference Media Coverage
Monthly AutoMark International
Ghandhara Industries Limited Annual Dealer Conference 2018 at Renaissance, Bangkok on Sep 12, 2018
To celebrate our achievement and setting New Fiscal Year’s target, Ghandhara Industries Ltd had conducted an Annual 3S Dealer’s Conference 2018 held in Bangkok, Thailand. Being the market leader in truck segment, GIL and its team celebrated the same with their dealers. GIL ‘3S’ Dealerships, ISUZU Japan, Isuzu Motors International Operations Thailand, and Marubeni Corporation management were also invited to the event to review the past year’s performance, competitor’s challenge and device a sale strategy to accomplish business targets for the fiscal year 2018-2019. Participant also visited the Isuzu Motors Gateway Plant in Thailand during the Conference.
www.automark.pk | October-2018 | Page 46
Monthly AutoMark International
Automotive News - Update
Beetle: Volkswagen's iconic car comes to the end of the road
Volkswagen is ending production of its Beetle in 2019, closing the door on one of the world's most iconic car designs. The German company said output would end at its plant in Mexico next July after production of celebration models. The Beetle has its roots in Nazi Germany with the creation of a "people's car", but went on to star in a series of successful Disney films as a vehicle called Herbie. But sales, particularly in the key US market, have fallen in recent years. Consumers in the US have increasingly turned to larger cars such as crossovers and sports utility vehicles. Volkswagen, in the wake of the diesel emissions scandal and huge investment in electric vehicles, says it will look to slim down its model range with a greater focus on family and electric cars. The company say the final Beetle models will be available in both coupe and convertible styles. "The loss of the Beetle after three generations, over nearly seven decades, will evoke a host of emotions from the
Beetle's many devoted fans," said Hinrich Woebcken, chief executive of Volkswagen Group of America. The Beetle was originally designed in the 1930s by legendary engineer Ferdinand Porsche - a name now synonymous with fast cars - at the behest of Adolf Hitler, who wanted to see a cheap and practical mass-produced car made available to the German people. But the outbreak of war would stall its production, as military necessity took precedence. The plant would be severely damaged, then fell into the hands of allied forces - who were eventually to play a large part in its recommissioning. Production began to take off in the late 1940s, and by 1955 a million of the cars were driving on German roads. The design would find international fame in the 1960s and '70s in films featuring Herbie the Love Bug, a racing car with a mind of its own. It was also popular with the 1960s counter-culture types who extolled the Beetle's small, practical, but aesthetic
qualities. Production of the Beetle has ceased and then been revived several times over the decades, with the last of the original design rolling out of VW's Mexican factory in 2003. The "New Beetle" redesign, which was based on VW's Golf, stormed the US market in the late 1990s, selling more than 80,000 in 1999. The company is already thought to have reviewed a possible model revamp and options for electric versions in recent ye a r s , be f o r e d e c i d in g o n i t s abandonment. But Mr Woebcken didn't completely rule out that the model could one day be resurrected: "Never say never." Volkswagen sold 11,151 Beetles during the first eight months of 2018, down 2.2% from the same period a year earlier. US consumers looking for a small Volkswagen vehicle overwhelmingly prefer the Jetta sedan, or the Tiguan compact sport utility vehicle. Source: BBC
www.automark.pk | October-2018 | Page 46
Corporate Business Event Update
Monthly AutoMark International
www.automark.pk | October-2018 | Page 47
Monthly AutoMark International
Report by Aqsa Mirza
Pak Suzuki has finally decided to discontinue Suzuki Mehran from April 2019
Pak Suzuki manufacturer of suzuki cars in Pakistan, will discontinued both of its passenger car models of Mehran VX and VXR from April 2019. The news about discontinuation of Suzuki Mehran has been making headlines for a long time and now seems that Pak Suzuki Pakistan has finally taken the decision. According to our sources, the production of the model SB-308 (Mehran VX IM &
VXR IM) variant will be discontinued permanently from April 2019. Previously, in July 2018, media reported regarding the discontinuation of Suzuki Mehran model VX from November 2018 and company will not produce any VX model of Mehran after November2018. Pak Suzuki will produce 23,821 units of Mehran (VR & VXR) from September 2018 till March 2019 while they will
discontinued VX model from November-2018. As per our sources, company asks his suppliers to only provide the necessary amount of parts to avoid any surplus. Furthermore, the management requests its vendors to carry out effective material and production management for the smooth production of remaining vehicles and avoid any surplus inventory at the time of model discontinuation.
IMC decides to launch Toyota Vios in Pakistan Indus Motor Company Ltd (IMC) has finally decided to launch Toyota Vios in Pakistan after discontinuing the Toyota Corolla GLi, a company source said here on Monday. Media had reported on a study commissioned by IMC on the Yaris and Vios variants, when company officials had claimed that they were not going to discontinue the Toyota Corolla GLi and the XLi as they were the most popular brands of the company in the country.
A source in Indus Motors claimed, “The company has finally decided to launch Vios in place of Corolla GLi and its top management has given the final approval.” “The management has rejected ‘Yaris’ as it was not viable for Pakistan’s environment,” he claimed. According to the source, Toyota will launch the Toyota Vios by next year, most likely in December 2019. The company official declined to mention an exact date.
Toyota Vios is a compact-sized sedan powered with a 1.3L 4NR-FE petrol engine that produces 110 BHP having an option of 7-step CVT or a five-speed manual transmission. Indus Motor has largely depended on Corolla XLi and Corolla GLi models for the last 17 years in Pakistan since both the models have been remarkably popular among the auto motiv e customers.
www.automark.pk | October-2018 | Page 48
International Automotive Industry - Update
Monthly AutoMark
A Toyota-Made Suzuki soon in India
Honda recalls two more models in China due to engine issue Honda Motor Co will recall 22,702 Honda Jade cars and 27,554 Acura CDX sport-utility vehicles (SUVs) in China, market regulators said on Thursday, because of a cold-climate engine problem that has already forced the recall of hundreds of thousands of vehicles. A Beijing-based company spokesman said in total Honda will have to recall six models, affecting 591,055 vehicles because of the same engine issue. "The latest recalls are the last of (a) series of product call-backs," the spokesman said. The issue in some cases caused a strong odour of gasoline inside the car and in other cases the car's check-engine light came on, Honda has said. Both the Honda Jade car and the Acura CDX are produced in China by its joint ventures with local Chinese automaker partners. Acura is Honda's premium brand of vehicles. Honda said the problem does not affect the engine's performance and there have been no reports of accidents.
Toyota to replace side-view mirrors with cameras in new model Toyota Motor will introduce a digital alternative to side-view mirrors in a revamped Lexus sedan due out in late October, becoming the world's first automaker to adopt such a device in a mass-produced vehicle. The "digital outer mirror" system, announced, features small cameras in place of side-view mirrors and display monitors inside the vehicle on both sides. The cameras take up less space and therefore provide better forward visibility for the driver, according to Toyota. Wind noise is reduced for the same reason. The cameras offer an expanded view during turns or when backing up. They are shaped to keep water droplets from hampering the view, and embedded heaters prevent fogging on the lens.
Toyota Motor Corp. has agreed to produce Suzuki Motor Corp.’s cars to utilize the idle capacity at its Bengaluru factory, widening the alliance between the two companies in India. The decision was taken after discussions between the two Japanese auto makers, three people familiar with the matter said. If Toyota goes ahead with the plan, the company will be able to boost capacity utilization at its second factory, said the people cited above. That plant currently produces the Etios Liva and Etios cars, whose sales have remained lacklustre. Senior executives of both Toyota and Suzuki have visited each other’s factories in the recent past, they said. Executives
from Toyota have also visited plants of some of Suzuki’s major suppliers in India for quality checks, the people said. A deal would be an expansion of an agreement unveiled by Toyota and Suzuki in March to sell each other’s vehicles in India through a crossbadging arrangement. That tie-up entailed Suzuki supplying the Baleno premium hatchback and Vitara Brezza sport-utility vehicle to Toyota. In return, Toyota would supply its Corolla sedan to Suzuki. The cars would be sold by Toyota and Suzuki under their own brand names through their individual dealership networks.
Geely and Toyota in talks over hybrid tech Toyota and Geely are in talks over possible cooperation in the area of hybrid technology, the automakers confirmed Thursday to Reuters. The confirmation comes after media reports in China claimed the two were already working together on hybrid tech and were due to make an announcement soon. Partnering with Toyota, a leader in hybrid technology due to decades of experience with the Prius line, could enable Geely to get a jump start in the area of electrification. The Chinese automaker already has access to hybrid technology through its ownership of Volvo, which currently offers models with plug-in hybrid powertrains. It also has a 9.7-percent stake in Daimler, parent company of
Smart and Mercedes-Benz, which it could also tap. Electric cars may be all the rage right now but hybrid vehicles are expected to play a more important role in the coming decade as automakers look to reduce their emissions. This is especially the case now that many major automakers are in the process of transitioning to fully electrified lineups. Electrified cars include mild hybrids, regular hybrids, plug-in hybrids, electric cars and hydrogen fuel cell cars. For example, Toyota, which is the world's biggest automaker by volume, has an annual sales target of 5.5 million electrified cars, or roughly half of its total sales, by 2030. Of these, only about 1.0 million will be electric or hydrogen, with the rest to be hybrids.
Honda Cars India achieves 1.5 Million sales milestone
H onda Cars India has crossed the 1.5 million sales milestone since the company’s inception in 1998. Honda entered the Indian passenger car market with the City sedan, which is still the biggest contributor to company’s sales in India, followed by the compact sedan Amaze and Jazzhatchback. Currently, Honda’s has 8 models in its product portfolio in different segments. The Japanese car manufacturer has a strong sales and distribution network of 341 facilities in 231 cities across India. Honda car reached the first 5 Lakh sales mark in March 2012, whereas the
journey to the next 5 lakh sales was much quicker in October 2015 and the latest 5 lakhs have been the fastest in just 34 months. Honda is also planning to reintroduce the Civic sedan in India soon. Honda also achieved a cumulative growth of over 9 percent, where the company sold 79,599 units from April to August 2018, compared to the 73,012 units in the corresponding period last year. Honda is planning to launch 2 new product – Honda CR-V SUV, which is expected to make its launch in October and thereafter, Honda Civic in the early 2019.
www.automark.pk | October-2018 | Page 49
Suzuki #MYSUZUKIMYSTORY Event
Monthly AutoMark International
Pak Suzuki Motors held an award ceremony for its digital initiative #MySuzukiMyStory
Pakistan Suzuki Motors held an award ceremony to expand their digital initiative My Suzuki My Story at Pearl Continental Hotel, Karachi on 26th September. This was the first season of the digital initiative MSMS held by Suzuki Motors. It was a contest among Suzuki customers from all across Pakistan to share their love and affection for the brand and the best one would get a prize. In order to take part in the competition, Suzuki customers shared their love for Suzuki brand in the form of pictures, videos, poems and other formats on the official Facebook page of the company. A large number of participants took part in the competition and showed their attachment and passion for Suzuki brand however the top three participants
were awarded Suzuki Motorcycles.
1st Prize - GR-150 2nd Prize - GS-150SE 3rd Prize - GD-110S During the awarding ceremony, senior members of Pak Suzuki’s management were present, including Mr. Hideaki Tokuda (GM- Marketing & Sales), Mr. G.H. Agha (GM - MArketing), Mr. Takumi Takahashi (GM - Motorcycles), and Mr. Rashid Hameed Khan (GM Sales) along with Pak Suzuki Authorized Dealers. Mr. Ghulam Hussain Agha said, ‘’Through this competition, we have seen the power of the digital medium, how it helps us connect with our loyal customer base and create an even stronger bond.’’ He mentioned that Pak Suzuki is always working towards ‘’Customer
Satisfaction’’ and will ensure that the company will continue to provide its customers with innovative products and services. Those who missed the chance to share their love for Suzuki motors, don’t worry stay tuned for the second season. Pak Suzuki Motor Company (PSMCL) is a Pakistani affiliate of Japanese automaker Suzuki. It is the Pakistani assembler and distributor of cars manufactured by Suzuki and its subsidiaries and foreign divisions. Currently, Pak Suzuki is the largest car assembler in Pakistan with phenomenal sales number across its all variants. Suzuki has a unique space in the market and even the competition it gets from used imported cars isn’t enough to put a dent in its sales.
www.automark.pk | October-2018 | Page 50
International Automotive Industry - Update
Monthly AutoMark
Japanese car maker Suzuki decides to pull out from China market Hyundai to ship China-made cars to Southeast Asia amid erratic sales recovery SEOUL/BEIJING: Hyundai Motor Co plans to ship China-made cars to Southeast Asia, its China joint venture and two people familiar with the matter told Reuters, as a plunge in Chinese sales has left much of its massive local manufacturing capacity idled. Hyundai once ranked third by China sales alongside affiliate Kia Motors Corp. But just as it opened its fifth factory in the country last year, a diplomatic dispute saw Chinese consumers turn against South Korean goods, damaging Hyundai's sales and brand image.
Suzuki wants to sell India-made products to the world, sets sights on 5 million sales from Maruti Suzuki Motor Corporation, the parent company of Maruti Suzuki, India’s largest car maker, has called for a change in its 'way of thinking’ to achieve these targets
Suzuki Motor Corporation is keen to sell those cars to the world that are developed and made in India as the country assumes a bigger place in the Japanese company’s strategy till 2030. The parent company of Maruti Suzuki, India’s largest car maker, has called for a change in its 'way of thinking’ to achieve these targets. “We believe fulfilling India would lead to fulfilling other markets by globally expanding models developed for India. The management and every single one of our employees need to change their way of thinking and effectively distribute resources - people, goods and capital to more than double from our present size,” the company said in a report.
Firm's small car strategy did not keep pace with market development and saw sales decline from 2011 onward Suzuki Motor Corp. said Tuesday it will dissolve its joint auto production venture in China, exiting from the world's biggest auto market as consumers' appetite continues to shift away from compact to large vehicles. Suzuki sees little growth potential for the compact car segment in China, as more customers are looking to large vehicles with their rising incomes. The company also expects few business opportunities in the near future as the Chinese government is pushing for electric vehicles, a category in which the Japanese company has lagged behind its rivals. "Approximately 25 years ago, we launched the Alto in China, and since then we have made efforts to cultivate the Chinese market," Osamu Suzuki, chairman of the company, said in a release. "Due partly to a shift in the Chinese market to larger vehicles, we have
decided to transfer all equity to Changan Automobile." Suzuki sold 105,000 vehicles in China in the fiscal year ended March 2018, only a fraction of the 3.22 million vehicles it sold worldwide in the same fiscal year. Previously, there were rumours that Suzuki would withdraw from the Chinese market, though the company had repeatedly dismissed them. The Japanese car maker had two joint ventures in China, namely Changhe Suzuki and Changan Suzuki. In June of this year, Suzuki officially withdrew from Changhe Suzuki, which it had held for 23 years. The company said in a statement that, in addition to growing pressure from homegrown rivals, a change in Chinese consumer tastes away from Suzuki-style compact cars to larger SUVs had added to the company’s decline. Suzuki will now exit from its 50-50 joint venture with state-run Chongqing Chang’an Automobile Co.
India to become production hub for Hyundai’s compact EVs - Report Hyundai will start assembling the Kona Electric from CKD kits imported from South Korea in 2019. Further ahead, it plans to make the country a production hub for low-cost EVs for emerging markets. “It (India) is a compact car market and can be given regional responsibility for ex por ts, ” C hung Eui -s un, Vice Chairman, Hyundai Motor Group, told The Economic Times on the sidelines of the Global Automotive Summit last week. “This (India) is really an important market for an automobile player; we can test our EV cars here, make them and export to markets like South Asia.” “Compact” is a description used fast and loose here, for anything from the Eon to the Tucson. However, it is safe to assume from Eui-sun’s quote that Hyundai A- and B-segment cars (such as the Grand i10 and i20 respectively) will have a pure electric variant in the future. Unlike petrol and diesel vehicles,
electric vehicles attract a uniform GST (12%), irrespective of dimensions and body style. So, there are many opportunities with EVs. The Kona Electric is a sophisticated EV targeted at developed markets. In India, Hyundai expects to sell 50 units a month of this niche model in less than 20 cities, which will mainly serve as an imagebuilder. Volume sales will come from locally manufactured zero-emissions vehicles following later. Eui-sun has said that three “smart and economic” EVs are planned for India. To expand its line-up, Hyundai will need to add to its local production capacity. The Sriperumbudur plant in Tamil Nadu is operating at more than 95% capacity. Even if the company manages to relocate export production to an extent, it is unlikely to free-up capacity enough for the demand anticipated two years from now.
PAKISTAN AUTO SHOW-2019 12-14 April-2019 in Karachi
www.automark.pk | October-2018 | Page 51
Monthly AutoMark International
By Mr. Zahid Malik
The X-Factor Theory
Sometime there is a gap, which needs to fill to balance the life. In mathematics, we have to balance the equation and usually the missing value that is to be found to balance the equation is denoted by X. So, whether it’s math or our life the X factor plays an important role to fillthe gap. But one thing is sure, that in real life X factor helps you cover your deficiency on short term basis. Or it can help when you want to do something in very less time or want to make cosmetic changes/addition. Or when you realize that the real addition will need a lot of efforts, but you want to avoid the efforts and hard work. X factor in real life can be termed as Surkhi Powder Laga Kar Qom KoUllu Banana and it is applied when the product itself cannot satisfy the customer with it’s attributes. I will try to explain how this option is being used in general life and then in Two Wheels section of Pakistan. Now let me share some examples from our life (TV Ads). There is a biscuit brand whose Ad has almost full song(Meray Des Ka Biscuit). Some of the friends and relatives shared (and I noted myself too) that when this biscuit was good in quality, it did not have such Ads. Infact it did not needed such Ads due to it’s quality. Now, if we consider a liquid tea whitener’s Ad, it has the real dhamaka song with full time dance party. Infact it shares that when you use this product, your heart will ask to dance. Moreover, the word used for this purpose is “Dance Maarna” and while I did some research from some friends and relatives such slogan was not found to be decent enough, where everyone is watching. If, they have a product that has top quality, it might not even need a simple TV Ad. I personally think that for the sake of competition, a top quality product might need an Ad for a specific period of time. But, if the product does not have capacity to satisfy the consumer through it’s attributes, then it will need X factor for filling the gap or attracting
the customer or to be in the market. Why is all that needed? You don’t want to fight in the field of quality? Your product cannot compete in terms of quality?You need X factor to fill the gap? Now let’s move to Two Wheels section and try to find out that do the riders use X factor or not. I have been noticing riders who are using X factor to promote themselves. The X factor is required by them for their promotion. Because, as per thinking of the rider this promotion would have not been possible without X factor. I have heard a rider saying that he received a lot more likes at Facebook after using external factor (who was a female/ his wife). I want to ask those riders that what if you have not been using this X or Y or Z factor? Would you have been this much popular without that? You know thousands of riders are travelling with motorcycles in Pakistan but how much popular they are without X factor. If compared with you, they get just a few likes of their closed friends and relatives. Whereas, the X factor has taken you to the top. Now just imagine if you don’t add X factor, you will be like a biscuit or a tea whitener without taste and quality and you know that no one buys such products. So to be in market, you added X factor and you better know that this X has value of 2 or 5 etc but for a limited time. Moreover, I have heard about groups of
riders who have added such factor to get popularity in minimum possible time. They must consider that hundreds of groups of riders travel in Pakistan with motorcycles but they are not famous like your groups. This additional factor is used in different forms as per availability. You will find riders with their wives or even mother as a co-rider. The groups have female members. Not only this, organizers invite such people to create attraction to their events. Oh, you have an excuse against this X factor theory? Then I must tell you I am not against your co-rider, whether wife or mother or a female member in the group. But, I can’t accept X factor theory. Yes, I would appreciate if you don’t highlight the wife or mother or a female member of the group to make your photo or post a product of the market. Something that gets attraction easily. Something that earns you more likes. You start from home, travel on highways, move through mountains and reach home back. You satisfy the thirst of a rider or a traveler or promote tourism Pakistan and all this is possible if you don’t mention the co-rider in your photos or posts or atleast photos only. By using X factor approach you are just stopping many hard-workers who try their best. But they disappear under shadows of people like you. I request to please rec onsider yo ur p olic y. Now I would also like to make one thing clear to female solo riders, the girls who have worked hard and tried to prove themselves. I would like to salute them. Bravo ! For all those genuine female riders, who came out to stand against the storm. Infact I offer my every possible support, whenever they need it. Written specially for Automark by: Muhammad Zahid Iqbal Malik Founder and Head of Safe Riding – Road safety and International Relations Dept. Pakistan Bikers Club – Since 2007
www.automark.pk | October-2018 | Page 54
Rs. 41,800/= Rs. 43,800/= Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1
Retail Price Rs. 65,500/= Rs. 68,900/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 46,000/= Rs. 45,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=
125/150/200cc Motorcycle No.
Brand & Model Name
Retail Price
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Super Power SP 200cc Unique UD 125cc Unique UD 150cc Crazer Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed Infinity SR-150 Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G (2018) Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II Zxmco ZX-200cc
Rs. 110,900/= Rs. 130,500/= Rs. 109,400/= Rs. 172,000/= Rs. 70,000/= Rs. 67,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 2,00,000/= Rs. 70,000/= Rs. 165,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 119,900/= Rs. 139,900/= Rs. 134,900/= Rs. 65,000/= Rs. 71,600/= Rs. 2,45,000/=
Sr./ No. 13. 14. 15. 16. 17. 18. 19. 20.
Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Union Star Ms Jaguar MS 70 ( DREAM)
Zxmco ZX-70 Regular Leader LD-70
Retail Price Rs. 43,500/= Rs. 45,500/= Rs. 42,000/= Rs. 45,600/= Rs. 44,000/= Rs. 43,800/= Rs. 42,300/= Rs. 44,000/=
100cc/110cc Motorcycle No. Brand &Model Name 1. Honda Pridor 2. United US-100 Euro 2 3. Road Prince 110cc 4. Unique UD-100 5. Super Power SP-100 6. Hi-Speed Classic SR-100 7. Hi-Speed Alpha SR 100 8. Super Star SS-100 9. Crown CR-100 10. MS JAGUAR MS 100 11. Zxmco ZX-100-SS 12. Leader Classic LD-100
Retail Price Rs. 90,900/= Rs. 50,000/= Rs. 48,500/= Rs. 80,000/= Rs. 60,000/= Rs. 47,500/= Rs. 82,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/= Rs. 52,900/=
Suzuki Motorcycle
Sr./ Product & Retail Price No. Model Name 1. GS-150 SE Euro-II Rs. 170,000/= 2. GD 110S Self Start Rs. 145,000/= 3. GS-150 Rs. 150,000/= 4. NEW GR-150 Rs. 229,000/= 5. SD 110 Eco Rs. 119,900/= Heavy Bikes Product & Sr./ Retail Price Model Name No. 1. Inazuma GW 250 Rs. 599,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Bandit GSF650SA Rs. 14,50,000/= 5. Honda ADA CB250F Rs. 6,40,000/= 6. Super Power Sultan-250 Rs. 2,90,000/=
Prices update Sep-2018
www.automark.pk | October-2018 | Page 55
Automotive Event Coverage by Hanif Memon
Monthly AutoMark International
KORTA Karachi Trade Center Organized Autoparts Collabo 2018, held in Karachi
Korean Embassy with the collaboration of KORTA (Korea Trade-Investment Promotion Agency) organized the “Autoparts Collabo 2018”, conference and a B2B activity "GATEWAY TO COPROSPERITY" in local hotel, Karachi on 12th September 2018. The purpose of the activity was that Korean part auto parts manufacturer and machinery supplier are interested in collaborating with Pakistan's automotive industry and parts suppliers to set up Korean base parts supply chain in Pakistan. Business consultation , automobile industry cooperation forum , sample showcase , visit to factories , and B2B special business held only for the automobile industry . The conference was conducted in two sessions, during the first session the welcome address was given by Mr. Kwak, Sung Kyu Ambassador of the Republic of Korea to Pakistan, Mr. Uh, Jaesun (Director General, KOTRA Karachi) given the opening speech of the programme. Afterward, a keynote speech given by Mr. Ghulam Farooq, Executive Officer, PSMCL. Later, A MOU signing ceremony was held while in the second session, Fo reign Development & Automotive Development Policy was discussed by Mr. Jamil Ahmed Rathore, Director General Board of Investment. The event was concluded with the KoreaPakistan Autoparts Collaboration
Success Case discussed by Mr. Muhammad Naeem, CEO Fatima Industries. The event was sponsored by PAAPAM, Pakistan-Korean Econo mic and Friendship Council. The attendants included 20 Korean Companies and more than 40 Pakistani Companies. The potential participants from Pakistan included Pak-Suzuki, Indus Motor Company (Toyota), Kia Lucky Motors, Atlas Honda Cars, Hinopak, Al-Haj FAW, Ghandhara, Dehan Motors. Local parts suppliers (vendors) of OEM, members of PAAPAM, PAMA and Pakistan Board of Investment (BOI), etc. While from South Korea the potential participants were Korean Companies Participate Buhmwoo Chemical Industries, Daeshin Machinery, Eden International, Ingage Co., JTS Corp, Kyungshin Corp, Motrex Co, QJEN Mold Tech, Shin Sung Precision, Sungsin T&S, Taeyang Metal,Valeo Pyeonghwa International, YOUNG International DRB Holding, Kukdong Press, S&H Global, and Hyundai Global Motors. A B2B meeting session has been arranged with the Korean business delegation with Pakistani industry. Korea-Pakistan Auto parts Collabo 2018 provides a venue to explore and develop par tnerships w ith ma nage ment personnel and key staffs from South Korea’s leading auto parts suppliers as
well as industry experts or management personnel from Pakistan automotive sector that is the fastest growing industry in today’s Pakistan. Vice President of Hyundai Nyho motors ( Hyundai Motor's local manufacturing cooperation partner ) also exchanges opinions on how to enter into joint venture with Korean parts companies. A c c o r d i ng t o ne w A ut o m o ti ve Development Policy 2016-2021, Some 11 companies who got Greenfield status are KIA Lucky Motors, Hyundai Nishat, Sazgar Engineering, Regal Automobile, Khalid Mushtaq, United Motors, Topsun Motors, Pak-China Motors, United Motors, and JWForland Auto Park. Renault Al Futtaim, Master Motors, It means that Pakistan has succeeded in bringing in over one billion dollar investment in the auto sector alone through new entrants. Kia is a Korean automaker that is coming to Pakistan. Kia Motors is collaborating with Lucky Cement to assemble motor vehicles in Pakistan. Hyundai is another Korean company that is partnering with Nishat to launch cars in Pakistan. KIA and Hyundai have already tested their luck which later proved a bad luck for Korean auto giant as its local partner became defaulter resulting in the closure of local production. It will be interesting to see how Kia and Hyundai will manage to strengthen its position in their second chance.
www.automark.pk | October-2018 | Page 43
Car / Light Vehicle Price List SUZUKI Model Model WAGON-R VXR 1000cc Euro II WAGON-R VX 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR MT 1000cc NEW CULTUS VXL MT 1000cc NEW CULTUS VXL AGS 1000cc BOLAN VX 80cc EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2
SUZUKI MEGA CARRY 1.5 MT
SUZUKI CIAZ (A/T) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol) VITARA GL+ AT 1.6 VVT
Ex Factory Advance Tax Price Rs. 1144,000 Rs. 25,000 Rs. 1234,000 Rs. 25,000 Rs. 769,000 Rs. 10,000 Rs. 840,000 Rs. 10,000 Rs. 1,475,000 Rs. 50,000 Rs. 1,611,000 Rs. 50,000 Rs. 1,340,000 Rs. 1,461,000 Rs. 1,568,000 Rs. 834,000 Rs. 10,000 Rs. 800,000 Rs. 10,000 Rs. 756,000 Rs. 10,000 Rs. 1,499,000 Rs. 1,999,000 Rs. 1,859,000 Rs. 2,293,000 Rs. 2,418,000 Rs. 3,490,000
HONDA Model Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda
Price
BR-V i-VTEC 1500cc BR-V i-VTEC S 1500cc Model Civic i-VTEC 1.8L Civic i-VTEC Oriel 1.8L City 1.3L Manual City 1.3L Prosmatec HYUNDAI City 1.5L Manual City 1.5L Automatic Aspire Manual 1.5L Aspire Prosmatec 1.5L
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
2,263,000 2,363,000 Price 2,513,000 2,663,000 1,713,000 1,853,000 1,773,000 1,913,000 1,903,000 2,043,000
TOYOTA COROLLA
Model XLI VVT-i 1.3L M/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis M/T SR 1.8L (Grande CVT) Corolla Altis A/T SR 1.8L (Grande CVT) FORTUNER A/T 4x2 2694CC
Model
Price
K01 997CC, 2700mm K07 997CC, 6 Seater, AC/PS/PW C37 1500CC, 11 Seater,AC/PS/PW Prince Glroy 300 1499cc M/T Prince Glroy 370 1499cc M/T Prince Glroy 580 1499cc
Rs. 899,000 Rs.1,099,000 Rs.1,675,000 Rs.1,850,000 Rs.2,150,000 Rs.3,450,000
Price 1,944,000 2,149,000 2,224,000 2,374,000 2,614,000 2,519,000 2,799,000 6,099,000
Toyota Hilux Pickup 4x2 sc Model
Price
Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD
Rs. 2,574,500
Toyota Hilux Pickup 4x4 E
Model
PRINCE DFSK PAKISTAN
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Price
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model
TOYOTA REVO DAIHATSU Model & Price
Vigo Champ-V MT Revo G M/T 1GD-FTV 2755cc 4,380,000 Revo V A/T 1GD-FTV 2755cc Vigo Champ-G AT 4,955,000
Rs. 4,005,000
FAW MOTORS Model
FAW Carrier 1000cc FAW Carrier 1000cc (Flat Bed) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c FAW V2 1300cc M/T Monthly AutoMark Magazine - International Local Assembled
Price
Rs. 869,000 Rs. 859,000 Rs. 974,000 Rs. 102,4000 Rs. 1,204,000
Price updated Sep- 2018