Automark magazine sep 2015 by Mustafa Hanif

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

September-2015 edition Pakistanâ&#x20AC;&#x2122;s premier magazine on automotive, engineering & energy sector Volume 08, Issue 09

Monthly

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

Advisors

Muhammad Shahzad

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

Advertising Manager Tahir Siddiqui

Circulation Manager Shahzad Raza

Graphic Designer Mustafa Hanif Salman Hanif

Web Master Murtaza Hanif

CONTRIBUTING IN THIS ISSUE M. Yousuf Shaikh M. Hanif Memon Ali Hassan M. Laman Samo Kamal Haider (A PBC Member)

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

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

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

AUTO INDUSTRY POLICY 2015-20 A much-awaited five-year Auto Policy (2015-20) was once again blocked by the Economic Co-ordination Committee (ECC) of the Cabinet with the direction that further consultations be held, after Federal Board of Revenue (FBR) rejected the incentives proposed by Khawaja Asif-led committee for existing car assemblers., as per media reported. Khawaja Asif, sources said, said the sub-committee held threadbare discussions with all the stakeholders including the private sector, adding he is unable to understand why the policy has again being deferred. "Both Khawaja Asif and Muhammad Zubair expressed their reservations at the decision of Finance Minister who perhaps was not briefed properly," said one of the participants . EDB proposed a 10 per cent duty on import of both localised and non-localised parts for an initial period of two years thereafter it will be 35 per cent( proposed rate for last three years) on the parts not-localised as per localisation plan provided to the new investors of cars and LCVs. FBR did not agree with the single rate of duty for localised and non-localised parts. According to the auto policy ( still not approved) category A, B and C investors should be entitled to the following incentives (i) import of non localised parts at 10 per cent rate of customs duty and localised parts at 25 per cent duty for a period of four years in respect of passenger cars and LCVs from 800 cc and above category;(ii) import of 100 per cent parts at 10 per cent customs duty for a period of three years in respect of passenger cars below 800 cc category;(iii) import of parts at prevailing custom duty applicable to non-localised parts for a period of three years in respect of buses, trucks, tractors and prime movers and ;(iv) for motorcycle industry existing policy as approved by the ECC and notified by FBR to continue. The policy had proposed that the category B investor will be entitled to all incentives under SEZ Act. Auto sector analysts argue that an attempt by the MoI and the EDB to get approval from the ECC of the much illusive and now secretive ADP-II has once again met with failure as the ECC deferred a decision and referred it back for further consultation. Opening up of commercial Import of used car has found favor with FBR as is increasing age limit to 5 years for specialized vehicles. EDB has opposed the idea of commercial Import of used cars on the grounds that it will discourage new investment in the sector. FBR has favoured bracketing all specialized vehicles such as dump trucks that can be converted into trucks and buses in one category to have a better control and monitoring system. On the other hand EDB continues to favor import of dumpers designed for off highway use.

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

Exclusive Article on Bike Sector

AUTO INDUSTRY POLICY 2005–06 TO 2015-16

Since Last Three Govt’s No New Auto Policy (ONE DECADE - NO CHANGE) – PART - II

Ministry of Industry Government of Pakistan

The Govternment of Pakistan is going to maintain new records of Auto S ect o r man ufac tur er s t hro ugh Engineering Development Board (EDB), which has written a letter to the Association of Pakistan Motorcycle Assemblers, The Pakistan Automotive Manufacturers Association, the Pakistan Association of Automotive Parts and Accessories Manufacturers and to provide company-wise employment position in the sector. The EDB said it is compiling data on employment position in the automotive sector of Pakistan. The purpose is to ascertain and update employment position in the auto sector and utilize the same in policy-making, the EDB added. The Govt. requires company-wise employment position covering permanent, contractual and daily-wagers on priority basis, the letter

Car and bike-assemblers also claim to have provided huge employment directly or indirectly after achieving up to 70 per cent localisation component in cars and light commercial vehicles (LCVs), 90pc in case of bikes and tractors and 45pc in heavy vehicles. “The auto world has changed a lot and leading Pakistani assemblers stand at the same old position and were rolling out two to three decade-old bikes and cars,” Chairman APMA said.

said. Car and bike-assemblers also claim to have provided huge employment directly or indirectly after achieving up to 70 per cent localisation component in cars and light commercial vehicles (LCVs), 90pc in case of bikes and tractors and 45pc in heavy vehicles. “The auto world has changed a lot and leading Pakistani assemblers stand at the same old position and were rolling out two to three decade-old bikes and cars,” Chairman APMA said. After change in government in 2008, local rupee started to losing the strength against the various currencies especially the US Dollar, Japanese Yen and Chinese Yuan. Moreover purchasing power of people started declining. As a result, the Chinese bike assemblers failed to push up the rates due to intense competition among themselves. Less

Auto Policy

C. Vehicles

Cars Bikes Rikshaw www.automark.pk | September-2015 | Page 12

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

Monthly AutoMark International than 10 assemblers managed to succeed in the stiff competition while around 40 units have been struggling to survive while some had packed up their business. Due to lack of mass transport project in Karachi and other big cities consumers dependent on two wheeler and around 50 per cent buyers purchase bikes on installment basis. He hailed the Metro Bus Project introduced in Lahore and Rawalpindi Islamabad recently which would benefit hugely to the general public. He urged the government to introduce similar project or circular railway for Karachi city. Sabir Shaikh said he was much hopeful from the current government for being heard their grievances and suggestions in the policy making but the government maintained the same attitude which had been in vogue since 2006. “I guarantee if our suggestions are given due considerations in the auto sector then this will definitely end up corruption on imports t hrou gh smuggling of auto parts will also stop,’ he said adding that uniform policy will lure foreign and private investments and the industry will grow. What is uniform policy? One tax on CKD’s and Commercial Imports of Auto Sector and the other Tax on CBU’s. “The government has to end up the monopoly of Japanese car and bike assemblers in order to flourish the local industry otherwise the situation will remain the same,” Sabir said. For the import of CBU bikes, no separate policy had been announced for the last 25 years. This is a big segment which could generate more revenues for the government. Many assemblers are importing over 100cc bikes in 100 per cent CKDs and marketing their products as locally made products. Since 2010-11, when the last auto policy expired (2005-06 to 2010-11), the country’s third-largest taxpaying sector has been working without updated guidelines. The policy is said to be in the making. It is not clear how much more time the process will take, but according to high level sources, the policy draft has already been finalised and its summary has been forwarded for clearance to the Economic Coordination Committee (ECC). The chairman Association of Pakistan Motorcycle Assemblers, Muhammad Sabir Shaikh said that we have no

information about changing for motorcycle industry in upcoming Auto Policy, because no one invite us in last few meetings of new Auto Policy including August 07, meeting in EDB. An assessment report of the Competition Commission of Pakistan (CCP), released in the month of October 2014, confirmed the undesirable dominant market position of the assemblers, to the chagrin of car users in the country. In November 2014, the CCP had reportedly sought liberalised import of used cars and suggested increasing their age limit from three to five years to induct market competition. The leading carmakers, operating their plants round the clock, have failed to catch up with the pace of growth in domestic demand. In the absence of options, buyers pay higher for a vehicle that lags in quality and safety standards. Often, the cars are delivered up to four months after the payment. The said report noted that “the Pakistani automobile industry is inward-looking and tries to protect itself through the use of regulatory instruments. Pakistan needs to develop the au tomobile industry instead of protecting it, and in this regard imports will have a disciplinary impact on domestic firms”. Keen to get a foothold in Pakistan’s auto market, a delegation from German auto giant Volkswagen was in the country a few weeks back. The company’s spokesman, Christoph Adomat, told the press that while “Volkswagen is c o n s t an t l y e v a l u at i n g m ar k et opportunities on a worldwide basis, there are no decisions for an investment by the Volkswagen side in Pakistan”. “The industry is operating in a very

Sabir Shaikh said he was much hopeful from the current government for being heard their grievances and suggestions in the policy making but the government maintained the same attitude which had been in vogue since 2006. “The government has to end up the monopoly of Japanese car and bike assemblers in order to flourish the local industry otherwise the situation will remain the same,” Sabir said. He expressed his concern over the persistent delay in AIP whose exercise between the industry and the government got underway from October 2013 to August 2015. He urged the government to settle the dust by announcing the policy either in the Trade Policy or separately so that the industries could make further investment. challenging environment. It is wrong to counterpose the interests of the local automakers and the consumers. The perception of dearer, low quality vehicles is a myth. People must not forget that the tax component in a vehicle’s price is as high as 35pc. This means that a

www.automark.pk | September-2015 | Page 13

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

Exclusive Article - continued 1000cc car priced at Rs1m currently can be sold for Rs. 650,000 if the government foregoes taxes,” the same situation in motorcycle, the 70 CC bike assembled by a small assembler costs Rs. 38,000/= including the Tax amount of Rs. 10,000/=. It means the price of small 70 CC bike is Rs. 28,000/=. After the approval of finance bill 20152016 by national assembly, the new shape of SROs 656/2006, SRO 693/2006 and SRO 655/2006 also arrived. APMA Chairman, Muhammad Sabir Shaikh said the bike industry was highly hopeful from the current government that it would bring down the customs duty besides introducing unified customs duty coupled with reduction in sales tax by at least one to two percent. However, nothing was done

Monthly AutoMark International were basically following an anti localization policy and also against the industrialization and employment. Government should focus in the Auto Industry Policy on two types of duties – duty on spare parts (for OEMs, commercial market, assemblies, sub assemblies, components and sub comp onen t s) an d se cond l y on completely built up units (CBU’s). APMA strongly urged that issuance of various permissions through EDB such as importable lists; production certificates and IORC should be done away in coming auto industry policy. All over the country the dealers of auto sector and parts should be registered in the sales tax net. The committees formed by finance minister under FBR in which FPCCI and

The industry is quite stunned by the media report that AIDP II policy has been finalized without bringing all stakeholders on board and will be reviewed by Economic Coordination Committee (ECC) of the federal cabinet in the budget. He hoped that finance minister must be thinking to take some steps for the bike industry on the above issues. He expressed his concern over the persistent delay in AIP whose exercise between t he ind u stry an d t he government got underway from October 2013 to August 2015. He urged the government to settle the dust by announcing the policy either in the Trade Policy or separately so that the ind ustri es could make f u rther investment. APMA believes that FBR must understand that the government has to phase out auto sector SROs in the next two three months. Otherwise, two to three more years would again go in waste in understanding the issue. APMA the government wants direct impact of taxation measures to reach the end users. However, it is only possible when government introduces a uniform policy for both large scale and SMEs. There is a need to remove hurdles of IORC besides bringing uniformity in valuation system, removing the hurdles like production certificates and importable lists by the EDB etc. This will help the industries to introduce new models at affordable prices. All the policies and SROs made in the last 30 years were not in the interest of the country, not revenue-oriented and

some other chambers were the members is not enough as there is a need to induct more experts of the field including Motorcycle Industry of Pakistan. The government must give its due attention to the two wheeler segment this year especially and efforts should be made t o pressurize leadi ng assemblers to bring a change in the decades old 70cc models. Policy hurdles, if removed, would encourage assemblers to introduce new models in the country. The government should realize that the main stakeholders are motorcycle assemblers of Pakistani and Chinese domestic brands who are producing more than one million units of two wheelers annually for the last many years. The more than 50 approved units of two wheelers, out of 104 are produ cing Paki st an i bran ds in collaboration with Chinese assemblers. It seems that the AIP is being made at facilitating only three Japanese car and bike assemblers. Does the new auto policy really care about country’s revenue, industries, job opportunities, genuine localization etc? This is million dollar question and yet to be replied by the policymakers. The industry is quite stunned by the media report that AIDP II policy has been finalized without bringing all st akehold ers on board and

will be rev iewed by Economi c Coordination Committee (ECC) of the federal cabinet. They pointed out that ECC in its meeting on August 26, 2014 had deferred the decision on the policy with the direction that the policy draft should be shared with all stakeholders including relevant ministries and industries for review and comments. Later, the policy was sporadically discussed by the architects with some stakeholders only. The industry experts expressed concern that the EDB has hoodwinked the ECC and despite its direction to share the proposed long term AIDP and record their views, “neither Pakistan Association of Auto Parts Manufacturers nor Association of Pakistan Motorcycle Assemblers, and Including Japanese Assemblers body Pakistan Automotive Manufacturers Association has received any final draft of the Auto Policy,” the stakeholders said. They said EDB or the committee assigned to prepare the policy have the right to formulate it but they should share the final draft with all the stakeholders irrespective of the fact that the suggestions given by them are being incorporated or not. They said views of all the stakeholders should be part of the final draft and reasons for rejecting the suggestions of each stakeholder should be discussed and justified. The long term policies of any industrial sector are formulated with the main objective of protecting the domestic industry, they said, adding that the interests of consumers should also be given weight. Moreover, even in cases where vendors offer to delete some auto components, the new entrants fail to provide the drawings. The reason is that they procure parts of different manufacturers from the open market as because of very low volumes, an d d o n ot d evel op any au to components locally. In AIDP I (200611), only those entrants were allowed that produce at least 500,000 cars globally in a year outside Pakistan. “But, now even those that produce 5,000 units outside Pakistan are allowed to enter th e P aki st an mar ket on hu ge concessions,” the Auto Sector spokes person said....

www.automark.pk | September-2015 | Page 14

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

Press Release Peshawar Seminar

Monthly AutoMark International

Management Issues in Establishing Modern Air Compressor Installations SMEDA KPK Organises Seminar for Benefit of Industries in Northern Pakistan Peshawar 20TH August, 2015- A Seminar at Frontier Foundry on the theme “Compressed Air for Economy and Efficiency” was held to emphasize the importance of Compressed Air in the Industrial Sector. The speakers for the event were Imtiaz Rastgar (Ex. CEO, EDB) and M. Hussain (CompAir Expert) and National Service manger of Rastgar & Co’s Sakoon Premium Service. I mt i az Rastgar elaborat ed the Management Issues associated with Compressors and M. Hussain explained

Seminar Stresses That Results of Bad Decisions Take 3 Years to Appear and Investing in Non-Genuine and Second Hand Machinery Will Cost Far More with Every Additional Production Year. t he T echnical Si de of it . New developments in air technology, measuring and controlling techniques, available to today’s industrial managers were brought to the attention of the audience by the speakers. CEOs of several companies, who attended the Seminar, paid keen attention to what Imtiaz Rastgar said. “Results of a Bad Decision takes 3 years to appear”, said Imtiaz Rastgar. This is a wakeup call to those compressed air users, who do not put in the required initial thought process while buying a compressor. Second Hand Compressor is a common phenomenon among our industries. What several industrial customers don’t ponder on is why the compressors become “second hand” and is it really an economical choice to be investing in used, second or third hand compressors? In addition, using nongenuine parts also provides false economy, and in the long run leads to more cost per production year. A person, who opens up a company, wants to build a successful business, an

idea which should not be wasted through taking short cuts. A strong business is built on a choice of good machinery and latest available technology. Hence, when making the decision for buying compressors, it is important to look for the best quality compressors as well peripheral equipment that best suits the industry’s requirements. For users of Compressed Air, it is important to understand the available choices, from compressor, filters, drains, piping measurement and control devices as well as to energy conservation. Highlighting the Importance of Compressor Room Design and Selection, Mr.Hussain, National Service manager of Rastgar’s Sakoon Premium Service said, “The standard piping layout requires information about the size of the compressor room, piping material, placement of air receiver, filtration, exhaust and cross ventilation.” In addition, an AirAudit of the compressor system provides additional information about any leaks or wastage of air that causes an increase in the

manufacturing cost. With an AirAudit, a company can reduce air use per unit of production by more than 30%. “The Sakoon Premium Service contract of Rastgar Air Compressors provides scheduled maintenance including parts replacement and is handled by Gardner Denver trained service team”, he added. The companies which attended the seminar, which was co-sponsored by SMEDA KPK, included Libra Private Limited, Dawn Pharmaceuticals, MKB Pharmaceuticals, Master Food Industry, Murtaza F.C., Medicraft Pharmaceuticals, Dr. Raza Pharma, Poly fine, M/S M. Asim & Co. Pvt Ltd, Saydom Pharmaceuticals and Frontier Foundry Ltd who were the gracious hosts of the event in Peshawar. Over the past few years, Rastgar & Company has emerged as a “Full Service Provider” dealing with Compressor System, its planning, installation, Piping transmission and Audit, all of which are essential to a smoothly running compressor system. Equipped with German trained Service Team, Rastgar & Co’s 4-S Concept Provides Customers with Sales, Service, Spares and Solutions through Sakoon Premium Service Contract. Rastgar & Co is an authorized d ealer of Gard ner Denver and distributor for CompAir, Quantima, Hydrovane and Reavell compressors in Pakistan since the last 35 years. For more details visit, www.rastgar-co.com or tweet @airguru1

www.automark.pk | September-2015 | Page 15

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

Exclusive Article by M. Yousuf Shaikh

The Pakistani Consumers are tired of the same old version motorcycles (Part 2) This is the reason that Yamaha enjoy Pakistan market beyond their sell targets which is also landmark of opportunities for latest design motorcycle manufacturers This indicates that requirements for motorcycles have changed in the new market environment. Residents in tier1 and tier-2 cities purchase motorcycles because motorcycles represent a type of culture. The residents there use motorcycle for leisure and sports purposes. Nevertheless, residents in rural areas and counties use motorcycles mostly as a means of transportation. This phenomenon has been proved by

researches. In rich cities such as Karachi, Lahore, Multan and Islamabad, the demand on large-displacement motorcycles has been increasing by years. There, motorcycle club activities are actively organized. Nevertheless, the supply chain of components for motorcycle modification is inadequate. If this problem is resolved, motorcycle modification will be a new growth force to the motorcycle market. The motorcycle industry development

quality of Chinese large-displacement motorcycles is improving and the manufact urers have st ar ted counteraction in the market. I n a d d i t i o n t o s h i ft i n g f r o m transportation-oriented motorcycles to large-displacement motorcycles, Chinese motorcycle manufacturers must change their marketing approaches to meet new market requirements. Consumers of large-displacement

motorcycles having 150 cc or larger displacement. Chinese motorcycle manufacturers have been mainly focusing on markets in rural areas in a long period. Their products are cost-effective but they failed to pay e n o u g h at t e n t i o n t o p r o d uc t appearances and brands. This leads to insufficient innovation and R&D capabilities. As a result, they were in a negative position facing the new consumption trend. However, the launch of Chinese 150cc shows that the

At the start of commercial production by new entrants, localisation level shall be kept at a minimum of 25 percent. By the end of five years, localisation level shall reach a minimum of 85 percent. trend indicates that, transition to largedisplacement motorcycles is a necessary option. While the sales volume of motorcycles for transportation purposes decreases, the sales volume of largedisplacement motorcycles increases steadily. (In China& Pakistan, larged i s p l ac em en t mo t o r cy c l es ar e

motorcycles are completely different from consumers of small-displacement motorcycles in terms of education background, life style, consumption levels, consumption habits, and consumption psychology. However, researches reveal that the manufacturers adopted the same showroom sales approach for the two different types of p rod uct . In o verse as mark ets, manufacturers pay more attention to culture display and product experience for every large-displacement motorcycle model. Instead of launching advertisements that have poor message delivery effect, manufacturers tie brand value with services and influential public events such as club activities and motorcycle race sponsorship to generate culture recognition. PCMIC:Pakistan China Motorcycle Industry Council proposes to automobile manufacturers to avail themselves of investment opportunities in Pakistanâ&#x20AC;&#x2122;s auto industrial sector. The opportunities exist in setting up a new technology Motorcycle engines, New Design & new technology motorcycle, low price small car unit, manufacturing car sub-

www.automark.pk | September-2015 | Page 16

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

Monthly AutoMark International assemblies components presently imported and the setting up of a tractor assembly plant. The new policy regime more flexible for the new entrants and more flexible forn order to attract foreign investment as

exchange technologies and to display newly developed products in such a big market of motorcycle. The Pakistan China Motorcycle Industry Council would help strengthen economic relations between businessmen of the

The Pakistan China Motorcycle Industry Council would connect Pakistani entrepreneurs with leading global entrepreneurs and investors in Pakistan, who would be able to exchange experiences and discuss business trends, leading to investment in both countries. amended policy is announced. Pakistan’s motorcycle industry continues to see strong growth in terms of production and marketing are forcing the industry and investors to explore alternative opportunities, including working with international partners and expanding into research and development (R&D) services. The PCMIC should struggle and foster “embedded” linkages between the services cluster group, Assemblers, vendors, importers and banks as consortium that are willing to make the investment in mega project of new design and technology motorcycle with Chinese cooperation in Pakistan. The Pakistan China Motorcycle Industry Council (PCMIC) has also planning to set up a support programmed for Motorcycles and parts research and development under the industrial and services cluster group. This will enable specialized industries to have the capability to design and produce motorcycle engines and other parts which are still not indigenized in Pakistan. It will also help strengthen the niche market in the future and provide technology for design, production and engineering for Pakistan parts-makers in order to raise their capabilities. The PCMIC seeks the Strategic Planning Alliance in public private partnership that should targeted at stand-alone parts design and manufacturing. The project would intended to create an automobile platform for Pakistan that would be relayed to the private sector. The Pakistan China Motorcycle Industry Council invite the organizers of International Auo& Motorcycle Trade Exhibitions to organize events in the Pakistan in a bid to build skills of entrepreneurs, seek investment,

two countries. The Pakistan China Motorcycle Industry Council would connect Pakistani entrepreneurs with leading global entrepreneurs and investors in Pakistan, who would be able to exchange

R&D and manufacturing. The Motorcycle Industry Council will be an opportunity for the industry & government to work together on the long term strategic development of the sector. Pakistan China Motorcycle Industry Council to assist manufacturers in finding local partners for them, and the government was interested to promote competition in the auto sector; In order to make this happen, the Pakistan China Motorcycle Industry Council need an ever more strategic, collaborative relationship with the Government to work with supply chain and other stakeholders to achieve long term goals. We want the Council to help make that happen. The PCMIC expresses its willingness to assist investors with all the necessary clarifications as well as facilitating essential visits to the factories (if required). Interested investors are kindly requested to submit their inquiries to chairman PCMIC at pakchina.mic@gmail.com at their earliest.

Policy for new tech motorcycle Exclusive new low tariff Policy of Government of Pakistan for motorcycle industrial sector to

experiences and discuss business trends, leading to investment in both countries. The promotion of commercial activities was of supreme importance for achieving economic stability in any country. Global automobile manufacturers avail themselves of investment opportunities in Motorcycle Sector of Pakistan’s auto industry. PCMIC is decided to take an initiative proceeding and PCMIC intends to meet government official to speak about the possibility of Global motorcycle manufacturers to exploring the Pakistan Auto industry and taking forward the long term strategic agenda in press reports that highlighted Pakistan must raise its game to compete for Chinese investment in automotive

Muhammad Yousuf Shaikh, An Au t o I n du st r y Co n su lt a nt , Motorcycle Industry Expert, Motorcycle Designer, China Sourcing E xpert, Serial Entrepreneur and the Founder & Chairman of Pakistan China Motorcycle Industry Council (PCMIC), offers his analysis of the motorcycle trade & industry trends from Pakistan & China. The Chairman PCMIC working with motorcycle trade & industry for over two decades. For further details and fo r ass is ta nce pl ea se e mai l at pakchina.mic@gmail.com

www.automark.pk | September-2015 | Page 17

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

Monthly AutoMark International

Automotive News - Update

Pak Suzuki Motors introducing back CNG fitted cars in Pakistan It has been largely believed that the government banned installation of CNG kits in zero meter cars due to shortage of compressed natural gas. The shortage of CNG was seen largely because of the increasing prices of oil and people therefore opting for alternates. The unavailability of CNG due to the huge increase in demand forced the government to finally ban CNG kits in zero meter cars. Pakistani automakers had stopped booking of CNG versions of Mehran, Alto, Bolan, Coure and Corolla when government banned imports of CNG kits and cylinders in January-2012. Suzuki on the other hand has been trying to lift this ban and through sources it

produce newly developed new technology motorcycle in Pakistan New entrant would mean a potential assembler/manufacturer, whether local or foreign, bringing in new technology for the first time in Pakistan and have had no assembly/manufacturing of similar motorcycles in Pakistan in the past. Any existing player bringing in new technology would be eligible for tariff incentives to the extent of parts and components to new technology. New entrant policy for motorcycle of 100cc and above was notified by Federal Board of Revenue (FBR) vide SRO 09(I)/2013 on January 4, 2013 to encourage new investment and new techn olog y i n t hi s su b- secto r. As per decision of the economic coordination committee (ECC) of the Cabinet the tariff structure for motorcycle sector was defined as under which is applicable across the board and are subject to review after one year. The tariff rates have been notified by FBR by amending relevant SROs. Raw materials, 0 percent duty; sub components/ components 7.5 percent duty; sub-assemblies, 15 percent duty;

has been revealed that the automaker has been able to convince the government. To all those out there, it’s a good news as Suzuki is going to start providing CNG kits in their zero meter vehicles. Suzuki is the one who is going to benefit the most out of it as compared to Toyota and Honda for obvious reasons. Through sources it has been revealed that Suzuki is going to start installing CNG kits in Mehran which will later be followed by Cultus. About the Wagon CBU (all engine capacities), 57.5 percent duty; CKD kits not manufactured locally, 10 percent dut y and CKD kit s manufactured locally, 38.75 percent duty. The policy for new entrants was notified by FBR vide notification No SRO 09(1)/2013 dated 4th January 2013 stating that in line with summary on "Policy for New Entrants" submitted by Ministry of Commerce approved by the ECC of the Cabinet case No ECC135/14/2012 dated 23rd October 2012 which specifies that the additional customs duty leviable under this notification shall not be charged on subcomponents and components imported in any kit form by a manufacturer declared to be a new entrant approved by the new ent rant commit tee comprising representatives of Ministry of Industry, Ministry of Commerce and Board of Investment for the motorcycles of 100cc and above with new technology for a period of five years from start of commercial production subject to following major conditions. At the start of commercial production by new entrants, localisation level shall be kept at a minimum of 25 percent. By

R, Its showed that it’s not going to be provided anytime soon but you never know when there is a change of plan by the automaker. The allowance of CNG kits to be installed in zero meter Suzuki cars is a doubleedged knife, one showing that CNG is going to be available whereas the other edge gives a hint of increasing oil prices, not in the international market but in Pakistan only. The market sources said that consumers, who used to rely on factory fitted CNG vehicle, would now feel happy after the government decision to allow car assemblers to install company fitted CNG kits in cars, like CNG Mehran.

the end of five years, localisation level shall reach a minimum of 85 percent. The new entrant committee shall be chaired by Secretary Industries comprising representatives of Board of Investment and Ministry of Commerce that shall receive and approve requests of new entrants in motorcycle sector and extension of benefits under new entrant policy. The committee shall also be empowered to decide on proposals relating to introduction of new technologies b y the existing manufacturers as well as the localisation plan. The agreement template for new entrants, including the localisation plan, will be developed by EDB in consultation with the National Tariff Commission (NTC). The agreement would be designed in such a way that new entrant scheme is not misused. The Federal Board of Revenue will not charge additional customs duty on subcomponents and components, imported in any kit form by new entrants (manufactures) in the motorcycle industry. The FBR has amended SRO.693(I)/2006 dated July 1, 2006 through an SRO.09(I)/2013.

www.automark.pk | September-2015 | Page 18

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

Motorcycles Production Figures - Statistics

Monthly AutoMark International

www.automark.pk | September-2015 | Page 19

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

Pakistan Auto Policy 2015-20 Review

Monthly AutoMark International

Auto development plan

Government looks to enforce global safety, environmental rules

In order to avoid the threat to human life posed by low-quality locally assembled cars and improve e n v i r o n me n t al st an d a r d s, t h e government will adopt international regulations to address some of the consumers’ concerns. Under the proposed automotive development plan for the next five years, the government will also address the issue of safety and reliability of vehicles and enforce regulations to make it compulsory for the assemblers to introduce a vehicle recall system for faulty units and install immobilisers to curb theft. The policy underscores the need for phasing out technologically obsolete car models, but there is no proposal that could force the assemblers to phase out 20-year-old models. The policy, which is yet to be approved by the Economic Coordi nati on Committee of the cabinet, lacks firm timelines for the application of these global standards and there are concerns that the powerful assemblers will not introduce many of these initiatives. In the plan, the government has protected the incentive package given to the existing players including tax concessions despite the assemblers having failed to pass these benefits on to consumers in the last two decades.

Safety, environmental concerns The government has admitted that

Japanese vehicles lack global safety and environmental standards. This also highlights the role of successive governments that have failed to force the local assemblers to adopt the standards. The policy document also highlights flaws in the existing national regulations that are also not at par with global standards. In an attempt to address these concerns, the government will participate in the World Forum for Harmonisation of Vehicle Regulations under the United Nations/Economic Commission of Europe. It will also participate in the International Whole Vehicle Type approval scheme, known as WP 29’s IWVTA, besides enforcing global technical regulations. Under the plan, Pakistan will take membership of the WP 29 initially as an observer and subsequently initiate actions aimed at developing the regulations based on the UN module. The Engineering Development Board will take the lead role in developing and enforcing the regulations through the ministries concerned. However, the EDB has always been protecting the interests of assemblers at the expense of consumers. Under the policy, the government will also review the Motor Vehicles Ordinance of 1965, Motor Vehicle Rules of 1969 and National Highway Safety Ordinance of 2000 to bring them in line with global standards. The assemblers will be asked to develop and enforce safety regulations. It will be

compulsory for them to install immobilisers in cars. A product recall system will also be put in place keeping in view the global practices. Cars in Pakistan are prone to theft due to absence of safety measures like immobilisers. Despite agreeing to the need of phasing out old models, the policy is silent on this aspect. The government admitted that car assemblers had no model phaseout policy and as such, vehicle models older than 20 years were still being produced, whereas these had long been phased out globally due to obsolete technology. “Consumer welfare is ignored in terms of safety and quality,” stated the policy, adding there was general perception that the vehicles assembled in Pakistan had low quality and safety standards.

Advance payments At present, the consumers are required to pay the full amount at the time of booking whereas cars are delivered after several months. In case of any price escalation before the delivery, the amount is paid by the consumers. To stop this practice, the government has proposed that advance payment will be limited to half of the total price. Furthermore, the price and delivery schedule that should not exceed two months will be firmed up at the time of booking. Any delay will result in a discount to the buyer at the rate of Karachi Inter-bank Offered Rate plus 2%. Curtesy: The Express Tribune

www.automark.pk | September-2015 | Page 20

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

Pakistan Auto Policy 2015-20 Review

Monthly AutoMark International

Differences emerge over new auto policy Differences between two key ministers are apparently standing in the way of approval of the proposed new auto policy that has been designed to break the monopoly of existing players and encourage fresh investment in the industry. Water and Power Minister Khawaja Asif and Finance Minister Ishaq Dar were not on the same page in a meeting of the Economic Coordination Committee (ECC) held on August 12 that had the auto policy on the agenda. During deliberations, Asif made all efforts to persuade Dar to give the go-ahead to the new auto policy, stressing that nothing had been left untouched in drafting the document. However, Dar, who is also the ECC chairman, looked unconvinced and turned down the request. Differences between two key ministers are apparently standing in the way of approval of the proposed new auto policy that has been designed to break the monopoly of existing players and encourage fresh investment in the industry. Water and Power Minister Khawaja Asif and Finance Minister Ishaq Dar were not on the same page in a meeting of the Economic Coordination Committee (ECC) held on August 12 that had the auto policy on the agenda. During deliberations, Asif made all efforts to persuade Dar to give the goahead to the new auto policy, stressing that nothing had been left untouched in drafting the document. However, Dar, who is also the ECC chairman, looked unconvinced and turned down the request. Asif is heading the committee that has worked for two years to come up with a draft of the auto policy. It seems that Industries and Production Minister Ghulam Murtaza Khan Jatoi had also not been taken into confidence as he was not engaged in the entire discussion held on the policy in the ECC meeting. Apart from the finance minister, Federal Board of Revenue (FBR) Chairman Tariq Bajwa also opposed the auto policy, arguing there were no incentives to woo new investors. During the huddle, Industries Secretary Arif Azim gave a presentation and

outlined different categories of investors with major incentives to be offered to them. However, the FBR chairman countered that the incentives were not adequate enough to stimulate fresh capital injection. Replying to a query from the ECC chairman about the deletion programme under the proposed automotive development policy, the industries secretary acknowledged that the plan had no explicit provision for the deletion programme, which, it said, was not consistent with the World Trade Organisation (WTO) framework. However, he said, the objective of the deletion programme would be achieved indirectly through building tariff walls. Water and Power Minister Khawaja Asif re spo nded that P rivatisatio n Commission Chairman Mohammad Zubair and Board of Investment Chairman Miftah Ismail had been closely involved in the consultation process and nothing had been left untouched in the last two years of consultation. â&#x20AC;&#x153;The consultation process was extensive and no stakeholder was left out,â&#x20AC;? he remarked. The law, justice and human rights secretary asked whether all legal aspects had been considered while formulating the policy. The ECC chairman told the law secretary to look at the legal provisions and report it s f indings to the committ ee.

He also directed the secretaries of industries, revenue division and commerce division to review different issues and the automotive development plan in the next two weeks. He suggested that the draft plan should be made public to invite their feedback. The ECC had constituted a committee on October 2, 2013 comprising the minister of water and power, then Board of Investment chairman, industries se cr e t ar y, F BR ch ai rm an a nd Engineering Development Board CEO to finalise the draft of the automotive development policy for 2015-20 and submit it to the ECC. The committee held deliberations and co nsult ed t he st akeho ld er s t o understand the core issues and conflict of interests influencing the development and growth of the automotive sector. To achieve the policy objectives, the body proposed easing the entry condition for new investors, putting in place an enabling structure for development of the industry and rationalising the auto import policy. It also called for establishing regulatory and enforcement mechanisms for quality, safety and environmental standards and setting up the Pakistan Automotive Institute. Measures to ensure consumer welfare through the provision of quality vehicles with safety features were also part of the proposals.

www.automark.pk | September-2015 | Page 21

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

Monthly AutoMark International

Automotive News - Update

Belarus tractors production to start in Pakistan from January In a major development, the Belarus state owned company has conveyed to the government that it will start assembling Belarus tractors in Pakistan from January next year. An official source said the deal to start production of Belarus tractors in the country was finalised during the visit of prime minister to Belarus earlier this month. The company will initially assemble 500 tractors per year and with the increase in demand it plans to enhance production facility to more than 20,000 units per annum. The Minsk Automobile Plant is a staterun automotive manufacturer association in Belarus, one of the largest in Eastern Europe. It manufactures heavy-duty trucks, buses, trolleybuses, road tractors and semi-trailers for semi-trailer trucks, and cranes. The deal for Belarus investment was finalised in less than two years, as the Belarus government showed extraordinary interest for starting manufacturing operations in Pakistan, source said. Initially, the company plans to cater to

the Pakistani market but Belarus is interested to use Pakistan as a hub for reentry in the Middle East and North African market. Belarus had strong trade ties with Iran, Libya and Syria but after the Arab spring it lost its Arabian markets and now it wants Pakistan’s help to regain access in the Arabian markets, the source said. Currently, 24 tractor models are manufactured locally by two companies and prices start from Rs 650,000. Imported Belarus tractor costs Rs 1.4 million. The tractors sales crossed 50,500 units in the fiscal year 2012-13, but the production went down to half after i mp o s i t io n o f G S T. Th e l o c a l manufacturers cannot export their tractors to other markets and only Millat tractors are exported to Afghanistan and their numbers remain low to 500 units per annum. The entrance of new player in the market will enhance competitiveness in the market. Pakistan had one of the lowest motorization levels – eight vehicles per 1000 persons in Asia compared to India’s 11, Sri Lanka’s 25, and Malaysia’s 641.

Belarus' Adani to branch out into Pakistan The Belarusian company Adani will open a high-tech enterprise with an annual production of at least $10 million in Pakistan, Adani Director General, cochair of the Belarusian-Pakistani Business Council Vladimir Linev told media on 11 August. The Belarusian company supplies equipment for security systems to Pakistan. The next step is setting up a joint company to make high-tech products. “We started our cooperation with Pakistan several months ago. We have found partners in this country who expressed their intention and interest in manufacturing our products in Pakistan. We have already signed a roadmap of setting up such a company,” Vladimir Linev said. “We are talking about a serious project. I think we will work effectively on the Pakistani market,” he added. Founded in 1991, Adani produces medical X-ray equipment, security systems and instrument engineering. Today the company produces about 40 types of sci-tech equipment. Nearly 90% of it is exported to 45 countries. Source: Belarusian News

Belarus keen to cooperate with Pakistan in tractor industry On the invitation of Republic of Belarus, Minister of State/Chairman Board of Investment, Mr. Saleem H. Mandviwalla paid an official visit to Belarus. During the visit, the MoS/Chairman Board of Investment held a range of meetings with Belarusian Minister for Industry Mr. Dmitry Katsiarynich, Minister for Economy Mr. Nikolai Snopkov, Chairperson of the National Bank of Belarus Ms. Nadezhda Ermakova, Deputy Minister for Foreign Affairs, Deputy Minister for Agriculture and Director General of Belarusian Meat and Milk Company. In addition to these meetings, the MoS/Chairman BoI visited Belarus Tractor Manufacturing Plant where he had useful interaction with the Director General of Minsk Tractor Manufacturing Plant. Belarus Minsk Tractor Works has played

a key role in supplying tractor to Pakistan and establishing the tractor assembly plant in Pakistan. Belarus and Pakistan have also signed agreement s on tr ad e- econo mi c cooperation and investments protection. The two sides agreed to reach a MoU for this purpose in the near future. The Chairman also reviewed progress on the draft Bilateral Investment Treaty between the two countries which was signed in 1997. Moreover, the two sides agreed to establish further mechanisms for mutual investments. Reaching a Free Trade Agreement or a Preferential Trade Agreement also came up for discussion. Both the sides showed interest in this respect. Further, understanding was reached to establish a Pakistan-Belarus Joint Business Council to identify areas of cooperation. The possibility of currency swap arrangement between

Pakistan and Belarus was explored and establishment of bank branches in each other’s countries was discussed as well. Emphasizing the importance of the Inter-Governmental Commission for giving a boost to bilateral economic relations, the two sides looked forward t o t he me et i n g o f t he I n t er Governmental Commission to be held in Islamabad in the near future. The two sides also reiterated their commitment to enhance business and expert level exchanges. In this regard, the Belarusian Minister for Economy extended invitation to Chairman Board of Investment and Pakistani business delegation to attend Investment Conference in Minsk which is to be held in November this year. The Chairman thankfully accepted the invitation.

www.automark.pk | September-2015 | Page 22

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

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

Monthly AutoMark International

Agricultural Sector - Update

Farmers upset as provincial govts eat up tractor funds In 2012-13, Sindh government announced a plan to subsidize 3,000 tractors but provided subsidy for purchase of only 838 tractors Farmers’ representatives have resented the step-motherly treatment they are getting from Punjab and Sindh governments, which announce lucrative amount of tractor subsidies in every budget but end up releasing much lesser amount. “If we look at the track record of Punjab government, it allocated in its 2008-09 budget statement an amount to subsidize 10,000 tractors for small farmers, but at the end of the year it subsidized only 6,294 tractors,” one representative said. A subsidy of 200,000 per tractor is a substantial amount for a small farmer with land holding of 12.5 acres. However, the demand in the market is much higher as is evident from 59,968 tractors produced that year. He said around 2,706 farmers were denied subsidy despite budgetary allocation in this regard, adding that these small farmers could not procure the vital farm machinery, as they lack the resources to buy the machine at actual cost. The representative said in 2009-10, the numbers of subsidized tractors were reduced to 5,000 in the budget but actual subsidy was provided to only 2,507 farmers for buy ing tractors. In 2010-11, again a subsidy for 10,000 tractors was budgeted but actual subsidy was provided to only 4,501 farmers. He said this means that the subsidy target would be missed this year as well. The tractor manufacturing units operating in Pakistan are owned by the Pakistanis and they should be facilitated more than the foreign car manufacturers where 50,000 small taxis are not only being subsidized but also financed by the Punjab government. The provincial Sindh government has announced to provide subsidy for 5,000

tractors in 2009-10, but at the end of the year not a single tractor was subsidized. The allocation budgets for 2010-11 and 2011-12 were for 6,000 and 4,000 tractors, but again none were provided, he added. In 2012- 13, Si ndh government announced a plan to subsidize 3,000 tractors but provided subsidy for purchase of only 838 tractors. Similarly, Obaidullah pointed out that in 2013-14 Sindh government announced subsidy on 4,700 tractors but provided only 1,971 of them. Moreover, in last fiscal, the subsidy sanctioned in Sindh Budget was for 4,300 tractors, but it was provided for only 1,209 tractors. Unlike the Punjab government that gives farmers the choice to buy tractors from any of the registered local manufacturers, the Sindh government provides subsidy on Orient tractors only. The selection criterion is even more disturbing as unlike computerized balloting as practiced in Punjab, the subsidy is provided on first come first serve basis. “There is no mechanism to determine as to who applied first,” he said, adding

that it seems the subsidy announced is linked to the ability of the sole tractor manufacturer included in this scheme, “How the firm was selected and why were other excluded is not explained.” Abbas said in the automobile sector, the tractor manufacturers have kept the imports at bay as with around 92 percent localization of parts, this vital farm machine is 15-20 percent cheaper than comparable machines produced by China or India. Furthermore, Pakistan has the lowest number of tractors per hectare when compared with India and China. He said tractor is the first step towards mechanization of agriculture. Tractors serve the farmers in many ways, besides preparing land for cultivation. “They are used to haul inputs and agricultural produce from farm to market by attaching a trolley at the rear,” he said, adding that they are also used to make farmers a little more money by ploughing the adjacent farms at a price and also to transport the produce of other small farmers from farm to market.

www.automark.pk | September-2015 | Page 24

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

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

Automotive News - Update

Monthly AutoMark International

Current policy in Pakistan has no place for a German manufacturer: Audi Ali Khan, the Audi country manager for Pakistan and Bangladesh, said the current duty structure, which places imported vehicles in slabs according to engine size, needed to be revised. The Germans will not be able to build cars here since fuel emission standards, set by the European Union, are not being followed. The material, mostly aluminum, used in German cars is not present in abundance either. So completely knocked down (CKD) units is out of the question. No one likes being restricted especially when there are options available. Pakistani consumers, however, are when it comes to the automobile market. Dominated by Japanese brands, the auto sector – we speak of passenger sedan vehicles – offers a limited variety. This is where the segment of imported vehicles manages to make a mark and take advantage of the void. While the influx of imported used vehicles has grown over the years – market data shows 39,000 of them arrived in Pakistan in fiscal year 2015 – the surprising bit is that sales of locally assembled vehicles have increased during the same time as well. From 82,844 units sold in 2008-09 – according to the Pakistan Automotive Manufacturers Association – the number has jumped to 151,134 in 2014-

imported vehicles in slabs according to engine size, needed to be revised. “The system doesn’t work since cars have been divided in a wrong manner [in the duty structure],” Khan told The media. “When you speak to someone in the government ranks with regards to the auto policy, they say that we are working towards “Vision 2025” where they see more entrants. “But when you ask them who has been brought in to formulate the vision, the government says ‘their own experts’. No real expert from the advanced auto industries in other countries has been consulted. “I know that the government is bent on bringing in a European manufacturer come what may. They want to say that they were the ones who brought a foreign brand in Pakistan.

The system doesn’t work since cars have been divided in a wrong manner [in the duty structure],” Khan told The media. “When you speak to someone in the government ranks with regards to the auto policy, they say that we are working towards “Vision 2025” where they see more entrants. 15. It is simple enough to realise that the market is hungry for cars and choices. Given the air was buzzing with reports of a German manufacturer making its way to Pakistan, The Express Tribune spoke to Audi, the German automobile manufacturer that oversees it s operations in Pakistan through its exclusive importer Premier Systems (Pvt) Ltd. Ali Khan, the Audi country manager for Pakistan and Bangladesh, said the current duty structure, which places

“But I believe this is being done the wrong way. The Germans will not be able to build cars here since fuel emission standards, set by the European Union, are not being followed. The material, mostly aluminum, used in German cars is not present in abundance either. So completely knocked down (CKD) units is out of the question. “The argument will then come down to whether Pakistan can set up a facility for a German manufacturer where semiknocked down (SKD) units can be put together. But there is no policy that

makes such a provision. Therefore, it’s the policy that needs to be updated before a German manufacturer can be asked to come here. “Other countries in the region also import SKDs and have a clear-cut slab for it. They are then able to use the ‘made in’ label.” Asked what it would take for German manufacturers to set up their plants in Pakistan, Khan simplified that all the country needed was to make a provision for importing SKDs. “We asked them for a change in policy. Rumour has it that this auto policy will include the permission to import SKDs. If that happens, we would be the first ones knocking on their doors. In fact, Audi won’t be the only manufacturer to jump on this opportunity.” Pakistan a ‘success story’ Meanwhile, despite Pakistan being restricted to only importing the vehicle, its market was labelled a “true success story” by Audi Germany. “Pakistan is among the fastest growing markets in the region,” said Christine Bulang, sales manager for the South East Asia and Taiwan region, in an emailed response to media. “We definitely appreciate this development even the more since we are aware of the complexity of the market and its challenges.” But Bulang added that while “Audi is constantly evaluating new opportunities on a worldwide basis, there haven’t been any investment plans into a plant in Pakistan.” Curtesy: The Express Tribune

www.automark.pk | September-2015 | Page 26

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

Monthly AutoMark International

Automotive News - Update

Asian Development Bank approves $6b loan for Pakistan The Asian Development Bank has approved a five-year $6 billion loan for Pakistan to finance development of the nation’s infrastructure, particularly in energy and transportation sectors, though the actual disbursements of the loan will be linked to Islamabad’s ability to implement energy sector reforms and improve its public finances. Absent among the projects being funded is the $14 billion Diamer-Bhasha dam, for which the ADB has allocated just $15 million in technical assistance. The loan package, set to run through at least the end of fiscal year 2019, will provide the government with an average of $1 .2 b il li o n each y ear f o r infrastructure development and institutional reforms. Nearly two-thirds of the $6 billion will be a commercial loan, while the remaining third will be a concessionary loan. Disbursements are subject to the government’s ability to meet all the conditions attached to the loan agreement.

The Manila-based lender expressed concern over the government’s lack of anti-corruption mechanisms, a lack of confidentiality in its procurement processes, complex internal controls and bureaucratic setup, and a lack of professionalism and frequent transfers, highlighting these factors as risks to the implementation of reforms programme in the energy sector. The financial assistance package will target several sectors including energy, transportation, agriculture, natural resources, rural development, water, urban infrastructure and services, public sector management, and financial services. Over $2 billion will be spent on the energy sector for improving the crumbling state-owned distribution and transmission networks and ensuring the financial viability of the sector by reducing electricity subsidies and line losses due to theft. Transportation infrastructure will

receive over $1.7 billion, which will be allocated for improving the nation’s road network and building mass transit systems in Peshawar and Karachi. Another $500 million has also been earmarked for improving public sector management and its disbursement is linked with privatisation of four stateowned companies and restructuring of another three loss-making entities. The ADB has also approved a three-year Country Operation Business Plan, which suggests the sector-specific allocations. The 2015 Business Plan is already under implementation and in the current year, the ADB plans to lend $1.3 billion to Pakistan, including $400 million in budgetary support for the energy sector, $200 million for post-flood highways rehabilitation, $170 million for the construction of the Gojra-Shorkot highway and another $150 million for improving border services...

Auto sales up 129pc to 15,909 units Pakistan local car assemblers have started the new fiscal year with a positive growth of around 129 percent year on year (YoY), according to the data released by Pakistan Automotive Manufacturers Association (PAMA). During July 2015, the local vehicle sales including LCVs, Vans and Jeeps stood at 15,909 units. It is important to note that in July 2014, sales dropped abnormally due to increase in advance motor vehicle tax and imposition of advance income tax on transfer of motor vehicles in Federal Budget FY15, said Muhammad Tahir Saeed, an analyst at Topline Research. “Furthermore, anticipated new ‘Corolla’ model and less working hours due to R a ma d a n w e r e o t h e r f a c t o r s contributing to the historical low sales in last July,” he added. Overall healthy growth in auto sector is indicative of increase in per capita income, improved farmer economics and overall recovery of the economy. Car financing is also picking up gradually, currently estimated at 30 percent versus 5.0 percent few years ago. To recall, car sales in Pakistan grew at a 5-year (FY11-15) CAGR of 5.3 percent to 179,953 units while volumes

surged by 31 percent in FY15 on the back of a new model of Toyota Corolla, Taxi Scheme of Punjab government and an increase in car financing due to 42-year low interest rates in the country. “We forecast car sales to grow at 13 percent in FY16 to reach at 203,653 units,” the analyst added. Among individual companies, Pak Suzuki Motors (PSMC) sales increased by 119 percent YoY to 9,464 units in Jul 2015 pri maril y due to Punjab government’s Taxi Scheme. Volumes declined by three percent on Month-onMonth (MoM) basis due to extended Eid holidays. Indus Motors Company (IMC) sold around 4,259 units in Jul 2015 compared to 1,106 units in the same month last year. It is pertinent to note that customers were waiting for the new model of Toyota Corolla in the same month last year which was the main reason for such an abnormally low base. On MoM basis, INDU sales decreased by 22 percent from 5,458 units it sold in Jun 2015. Saeed attributed this decline to less working hours during Ramadan and extended Eid holidays. Just to highlight, Toyota’s new Corolla model is sold out

for next 3-4 months, according to the sources in the industry. HCAR sold 2,181 units in Jul 2015 compared to 1,505 units in the same month last year. On MoM basis, HCAR sales decreased by 12 percent in Jul 2015 from 2,488 units in Jun 2015. It is important to note that HCAR is consistently posting sales growth despite the new model of Toyota Corolla launched by its competitor Indus Motors. This indicates that overall market size of Pakistan automobile sector is growing. Millat Tractors (MTL) and Al Ghazi (AGTL) sales have been affected due to the floods. MTL sold 743 units in July 2015 compared to 1,703 units in the same month last year. On Month-on-Month basis, MTL sales decreased by 71 percent in July 2015 from 2,556 units in June 2015. AGTL sold 820 units in Jul 2015 compared to 1,056 units in the same month last year. On Month-on-Month basis, AGTL sales decreased by 40 percent in Jul 2015 from 1,375 units in Jun 2015.

www.automark.pk | September-2015 | Page 31

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

International Automotive News - Update

Monthly AutoMark International

Maruti Suzuki working on Swift DZire hybrid The company is also looking forward to launch the hybrid version of the Maruti Suzuki Swift DZire along with the Swift hybrid hatchback in India during this fiscal year or by the next year.

The Maruti Suzuki DZire hybrid will continue to rub its shoulders with the likes of Tata Zest, Hyundai Xcent, Ford Figo Aspire and Honda Amaze in the segment After the news of Maruti Suzuki Ciaz hybrid, the Indian carmaker is planning to launch hybrid versions of other models in its portfolio in the country. The company is also looking forward to launch the hybrid version of the Maruti Suzuki Swift DZire along with the Swift hybrid hatchback in India during this fiscal year or by the next year. Before that, the homegrown car manufacturer will launch the Maruti Suzuki Ciaz SHVS (hybrid technology) or the Ciaz Hybrid. The Ciaz Hybrid is likely to get the familiar Fiat-sourced 2.3-litre Multijet diesel motor that generates maximum power of around 90PS and churns out the peak torque of around 200 Nm.

Another Maruti Suzuki model that will come fitted with the new hybrid technology will be the Ertiga facelift. It is said that the company will launch the Ertiga facelift in October this year or around the festive season. Alongside the hybrid variant of the DZire sedan, the Indian auto marque will launch the Swift hybrid as well. It is expected that the hybrid duo will offer around 30km/l of fuel economy. Not just this, the recently spied images of the upcoming DZire reveal that the car manufacturer will equip the sedan with an AMT (Automa tic Manual Transmission) gearbox as well. This move by the automaker to offer both

AMT and hybrid technology on the DZire will boost the sales of the company as these days the preference of the Indian customers is gradually shifting from manual to automatic transmissions. The Maruti Suzuki DZire hybrid will continue to rub its shoulders with the likes of Tata Zest, Hyundai Xcent, Ford Figo Aspire and Honda Amaze in the segment. For now, the car manufacturer has not disclosed any further information about the upcoming hybrid models. More details are likely to be revealed in the coming months....

www.automark.pk | September-2015 | Page 33

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

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

International Automotive Industry - Update

Honda Malaysia spends millions for expansion Recently, Honda Malaysia recently added another module to its Pegoh Plant in Melaka. The place, dubbed PreDelivery Inspection (PDI) Yard 3, built on a 50-acre land across the road from the Pegoh Plant, has the capacity to hold up to 6000 Honda vehicles and will function as the centralized delivery centre for new vehicles. Just so that Honda won’t need to wait for traffic to clear before crossing to the other side of the road, the Japanese carmaker pumped in another RM7.1 million to contruct an Overhead Link Bridge that will, umm, bridge PDI Yard 1 to Yard 3. This overhead bridge is also the first in Alor Gajah. Managing Director and Chief Executive Officer of Honda Malaysia Mr. Yoichiro Ueno shared, “In January last year, we opened the No. 2 Line which puts us on the path towards achieving our midterm goal of doubling our production capacity to 100,000 units by 2016. In July 2014, we made a strategic decision to construct the new PDI Yard 3 in order to speed up the vehicle delivery process in support of the increase in production.

CEAT launches Motorcycle Radial tyres The seven day awareness ride which began from Mumbai via Surat, Agra, Delhi & Jaipur covered more than 2000 kilometres across varying terrain, spreading road sense and safety awareness messages along the way. Anant Goenka, MD, CEAT with the Yamaha FZ & Fazer owner's group. Leading Indian tyre manufacturer CEAT Ltd. on Tuesday announced the launch of their Motorcycle Radial Tyres. The event also marked the finish of their road safety awareness drive in association with Yamaha FZ & Fazer owner's group. The seven day awareness ride which began from Mumbai via Surat, Agra, Delhi & Jaipur covered more than 2000 kilometres across varying terrain, spreading road sense and safety awareness messages along the way. The riders conducted road safety activation's in CEAT Shoppes across 5 cities that conveyed the do's and don'ts of motorbike riding to various biking communities in each city.

Toyota's redesigned 2016 Prius hybrid exposed during photo shoot

Hints of Mirai fuel cell, Lexus LFA supercar styling Toyota’s redesigned Prius is still weeks away from its global debut, but new spy shots taken this week give the clearest look yet at the fourth-generation hybrid. Caught during a photo shoot Wednesday in Malibu, Calif., the latest shots reveal the dramatic front and rear design of the 2016 Prius, set to debut in Las Vegas on Sept. 8. As Toyota dealers and executives have been hinting in recent months, the front of the car has a sportier design, highlighted by sharply angled headlights reminiscent of those on the Lexus LFA supercar. At the back of the 2016 Prius, long vertical taillamps run down the side of the car (think Cadillac’s current Escalade

with a dash of Toyota’s Mirai fuel cell car mixed in). The new Prius replaces a model that’s been on sale since 2009, and it is the first Toyota car to ride on the automaker’s new TNGA modular platform. Toyota hasn’t released any details on what makes the new Prius tick, but has promised the lower center of gravity the platform allows translates into a much more fun-to-drive car. The Prius could see an auto show debut as early as Frankfurt, just a week after its global debut next month. Caption: The front of the revamped Prius has a sportier design, highlighted by sharply angled headlights reminiscent of those on the Lexus LFA supercar.

Yamaha launches YZF-R3 motorcycle in India India Yamaha Motor on Tuesday launched the YZF-R3 sports model at the Budh International Circuit, Greater Noida, at a price tag of Rs 3.25 lakh. It will be available at select authorised Yamaha dealerships in two colour schemes - racing blue and black lightning. "Yamaha Motor India Group has been the first company to launch superbikes in India in 2008 with the likes of YZFR1, FZ 1 and VMAX and was also the first company to introduce India's first sports bike in the 150cc category - The YZF R15," the company said in a statement. The all new Yamaha YZF - R3 mounts a newly developed 321cc, liquid-cooled, 4-stroke, in-line 2-cylinder, fuel-injected engine.

"With all-new engine and chassis designs, the YZF-R3 sports a solid combination of power and a lightweight body that achieves high levels of riding performance and styling worthy of the 'superbike' moniker. At the same time, it offers the nimbleness and easy-to-use character for daily use as well as riding excitement in a variety of usage scenes," the statement said. The YZF-R3 Sports Model boasts increased displacement and a lighter yet higher-performance chassis. The new product offers agile handling from the lightweight body, mass centralization measures, etc. It aims at achieving an excellent balance of both high performance and fuel efficiency and a riding position that is good for sporty riding and results in less rider fatigue.

www.automark.pk | September-2015 | Page 35

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

Subscription Form Monthly Automotive Magazine

www.automark.pk

The Circulation Manager

Please do not pay in any case

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

Name:

1800 (Valid for Pakistan only)

____________________________________ Job Title: _____________________________

Company: _______________________________________________________________________ Address: ________________________________________________________________________ ____________________________

Sig.,&Co. Stamp: ___________________________________

City: ________________________

Post Code: ________________________________________

Phone:

______________________ E-mail:

Fax: ________________________

Mobile No: _____________________

Date: _____________

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

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

Aug-2015

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

Monthly AutoMark International

Motorcycle sales drop further in Bangladesh Hike in Supplementary Duty blamed The country's motorcycle sales further dropped after Supplementary Duty was raised in the 2015-16 budget, industry insiders said. The sales of motorcycles have been continuously decreasing in last five years due to higher prices, manufacturers and dealers said. Almost all the motorbike brands in the market have increased prices by Tk 10,000 to 15,000 per piece after the 2015-16 budget added more 15 per cent Su p p l e me n t a r y D u t y o n C K D motorcycle. "We fear 20 to 30 per cent sales will be decreased due to the new SD addition from 30 per cent to 45 per cent in the budget. This has resulted in the increase of motorcycle prices by Tk.10,000 to Tk.15,000," said Ashequr Rahman, Head of Finance of Hero Honda. "The new prices have already gone beyond customers' buying capacity in rural areas", he added. The motorbike sales in Bangladesh have been declining since 2010 due to continuous fuel price hike, increased bike registration costs and overall economic slowdown, industry insiders identified. The volume of sales has been decreasing continuously since the 2010-2011 financial year from 255,000 pcs to 175,000 pcs in 2014-2015. The sales were 2,30,000 pcs in 2011-12, 2,20,000 pcs in 2012-2013 and 1,84,000 in 2013-2014. President of Bangladesh Motorcycle Assemblers and Manu factu rers Association Matiur Rahman said it is a matter of great frustration for the industry that having the world's one of the densely-populated country, the present market is for less than 200,000 units. For increasing SD in the budget, the tot al tax impact of motorcycle assembling industry has become 131 per cent. The impact of 131 per cent on CKD motorcycle is equivalent to the taxation level of a luxury car of 1500CC. "The proper and logical duty structure will help expand and flourish this assembling industry and many of the assemblers will be encouraged to convert themselves as manufacturers," he said.

Toyota ends production at eastern Russia plant amid weak economy Toyota Motor said on Tuesday that it had stopped making vehicles under a joint venture at an assembly plant in Vladivostok, eastern Russia, as a weak Russian economy weighs on the country's once-booming auto industry. Toyota Motor Corp said on Tuesday that it had stopped making vehicles under a joint venture at an assembly plant in Vladivostok, eastern Russia, as a weak Russian economy weighs on the country’s once-booming auto industry. The joint venture with Japanese trading firm Mitsui & Co and Russian automaker Sollers had been assembling Toyota’s Land Cruiser Prado sport-utility vehicle but production was discontinued in late June, a Toyota spokeswoman said. Toyota now exports about 1,030 Prados per month to Russia – about the same number previously assembled at the Vladivostok plant – from its plant in

Tahara, Japan, she said. Global automakers have been struggling to maintain sales in the once-promising Russian market. Vehicle sales have halved from their peaks in 2012-2013 as lower oil prices and Western sanctions over Moscow’s role in the Ukraine crisis fuel an economic crisis. General Motors Co said in March it would shut its St. Petersburg plant by mid-2015 to cope with a prolonged sales slump. Toyota, however, remains bullish, saying it has no plans to pull out of the country. It said its plan to double vehicle output to 100,000 units per year at its now sole Russian plant in St. Petersburg by the end of 2015 was still on track. “There will be waves in the (Russian) market but we as Toyota want to increase sales, not shrink,” the spokeswoman said...

China investigates auto industry for consumer rights violations China has launched a new investigation into the auto industry -- this time its consumer practices. It wants to identify possible infringements of consumer rights, dissemination of false or misleading publicity, violation of registered trademarks and bribery in commercial transactions. The investigation started earlier this month and will take until the the end of the year, according to a statement on the State Administration for Industry and Commerce website. It will look specifically at consumer complaints and media reports. Last year China introduced a new consumer protection law that increased the penalties for fraud and false advertising and added legislation on return policies for online purchases. These steps are in response to increased concern among China's growing middle class about everything from food and drug safety to air quality. Reflecting the increased orientation toward consumer rights, last March the state-run broadcaster CCTV highlighted in a program marking World Consumer Rights Day complaints that carmakers,

including Volkswagen Group, MercedesBenz and Nissan, had oversold repairs and spare parts to drivers, while Jaguar Land Rover had failed to handle an alleged gearbox fault p roperly. Up until now China's focus has been on anti-trust violations identified in the auto sector. It punished foreign automakers for the first time last year for price fixing. Officials fined both FAW-Volkswagen Automobile Co. Ltd., one of Volkswagen's two China carmaking ventures, for price fixing at its Audi sales unit and a sales unit of Fiat Chrysler Automobiles' Chrysler division. The companies paid a combined 288 million yuan ($46 million). China also found a dozen Japanese auto parts suppliers guilty of price fixing last year and handed out a total of 1.24 billion yuan ($775 million) in fines, the biggest antitrust penalties in the country since relevant rules came into effect seven years ago. Last April authorities in China's eastern Jiangsu province fined Mercedes-Benz 350 million yuan ($56 million) for a pricing monopoly there

www.automark.pk | September-2015 | Page 37

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

MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST 70cc Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

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

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

125cc Motorcycle No. Brand & Model Name 1. Crown CR-125 2. Super Star SS-125 3. Super Star SS-125 DLX 4. Honda CG-125 std Euro II 5. Honda CG-125 DX 6. Hero Prince 125 7. Ravi Piaggio Storm 125 8. United US-125 Euro 2 9. Yamaha YBR-125cc 10. Road Prince 125cc

Retail Price Rs. 65,000/= Rs. 59,000/= Rs. 67,000/= Rs. 102,900/= Rs. 124,000/= Rs. 96,000/= Rs. 112,000/= Rs. 69,500/= Rs. 129,400/= Rs. 68,000/=

Suzuki Motorcycle (Heavy Bikes) Sr./ No. 1. 2. 3. 4.

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

Retail Price

Sr./ No. 9. 10. 11. 12. 13. 14. 15.

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

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

100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.

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

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

Suzuki Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6.

Retail Price

Product & Model Name SD110 Sprinter ECO SD110 Sprinter ECO Del

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

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

Rs. 725,000/= Rs. 1,700,000/= Rs. 2,600,000/= Rs. 1,550,000/=

Price update: Sep-2015 www.automark.pk | September-2015 | Page 38

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

Car / Light Vehicle Price List

SUZUKI Model Model

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

APV 1.5L GLX MT (Petrol)

Car production 2014-2015

Price Price Rs. 869,000 Rs. 979,000 Rs. 1019,000 Rs. 635,000 Rs. 688,000 Rs. 1,271,000 Rs. 1,332,000 Rs. 1,468,000 Rs. 1,054,000 Rs. 1,059,000 Rs. 1,465,000 Rs. 695,000 Rs. 700,000 Rs. 666,000 Rs. 637,000 Rs. 642,000 Rs. 2,418,000

Suzuki 100,235

Toyota 51,392

Honda 24,271

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

HONDA Model Price Honda Aspire Manual 1.3L Rs. 1,652,000 Honda Aspire Prosmatec 1.3L Rs. 1,794,000 Honda City Manual 1300cc Rs. 1,522,500 Honda City Prosmatec 1300cc HYUNDAI Rs. 1,794,000 Honda Civic VTI Manual 1800cc Rs. 2,035,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,267,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,156,000 Honda Civic VTI Prosmatec SR (Oriel) Rs. 2,388,000 Honda CR-Z Sports Hybird Manual Rs. 3,286,000 Honda CR-Z Sports Hybird Automatic Rs. 3,366,000 Advance Withholding Tax For Filer Active For Non-Filer Non-Active Tax Payer Tax Payer City 1.3 L 30,000 City 1.3 L 40,000 City 1.5 L 50,000 City1.5 L Aspire 100,000 Civic 1.8 L 75,000 Civic 1.8 L 150,000 All Variants All Variants

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

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

Hilux Pickup 4x2 sc Model

Price

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

Rs. 1,859,000

Hilux Pickup 4x4 E Model

Price

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

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,129,500

AL-HAJ FAW MOTORS Price

Model

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

Monthly AutoMark Magazine - International

Rs. Rs. Rs. Rs. Rs.

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

Price updated Sep- 2015

Monthly AutoMark International

China Explosion - Review

Global automakers continue redirecting shipments following Tianjin explosions

Not only Toyota is looking to divert its shipments to Shanghai and other ports after the Tianjin massive blasts that took place last week, but its global auto competitors are joining in on this decision after the explosions interfered

for an unknown period of time up to this moment with China’s largest auto import core. Access to the areas has been limited by the authorities after a number of blasts took place at a hazardous chemicals

Tianjin warehouse explosion 2015 Two blasts ripped through the industrial Binhai New Area in the port city of Tianjin, China, late on August 12, killing 85 people - including firefighters - and sending shockwaves as far as 20 kilometres away. Hundreds were reported injured and swathes of buildings, apartments, vehicles and other infrastructure were burned or destroyed. State media said a shipment of explosive materials had ignited at a warehouse run by Tianjin Dongjiang Port Ruihai

International Logistics, which handles are sodium cyanide and the toxic toluene diisocyanate, and triggered two explosions that occurred within seconds of each other. The National Earthquake Bureau said the first blast's strength was equivalent to 3 tonnes of TNT and the second was the equivalent of 21 tonnes. President Xi Jinping himself ordered authorities to contain the disaster and secure the area.

warehouse which ended up with morethan 114 deaths. Even if the port c ont i nues t o o per ate , t he car manufacturers are looking to reach lots and warehouses in order to assess the damage made and also to clear thousands of scorched cars as to make the facilities usable again. Renault SA and Fuji Heavy Industries Ltd, producer of Subaru, announced that they will change the route for imports to Shanghai, while Hyundai Motor Co. said that it will send its shipment to Shanghai, but also to Guangzhou. Toyota is also taking into consideration changing the route for imports to Shanghai and Dalian, both of which have the necessary capacity to prevent any major logistical issues. A senior Beijing-based executive who preferred to remain anonymous stated that the “Port of Tianjin will likely be unusable for a long while, although I have no idea at the moment how long t hese di srup ti ons wou ld last .” Toyota has already suspended its two final assembly lines near the Chinese Tianjin port from Monday to Wednesday to assess the damage done by the blasts. The carmaker has produced 432,340 cars at these plants last year, and according to IHS Automotive, it will probably lose 2,200 a day because of the explosions.

www.automark.pk | September-2015 | Page 40

New Model of Motorcycle - Event Update

Monthly AutoMark International

A.S. Auto Industries Launches Bionic Motorcycle’s Model 2015-2016

www.automark.pk | September-2015 | Page 41

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

by Kamal Haider (A PBC Member)

Introducing Kamal Haider, a Rider & a Mountaineer

The Exploration of Hushe, Nangma, Charakursa and Nungbrokke Valleys 2015

Print Media Partner

These

valleys including Hushe are located in the Khaplu District of Baltistan and gateway to adventurous treks, most of which lead to the north side of Shyok River. This is an area that has been covered by very few trekkers. We decided to explore the main valley of Nangma in full length. Our aim was to focus on a discovery of a new pass to

cro ss the N angma Vall ey and downwards into Charakusa Valley near Driffiika Peak (6447m). Nangma valley is one of the best rocks climbing area of the Karakoram Baltistan and boast excellent area ranging from moderate to high altitude rock climbing. In this valley we have a variety of well-known and famous towers and peaks like Amin Brakk (5850m), Great Towers (5800m) also called SinguCharpa, Black Towers, King and Son Tower, Ibrahim Brakk, Nawaz Brakk, Changi Tower, Sotulpa, Korada Peak (5044m), Great K6, along with this some unknown towers and peaks too, that are still unclimbed. We (Mr. Naveed and me) were two members who took the burden of these

explorations under the banner of Pakistan Bickers Club. We hired two High Altitude Porters Ibrahim Khalil and Dawood and 6 low altitude porters from Kanday Village (2980m). The trek started in the early morning along the main Hushe Road. We crossed the main river over a wooden bridge and entered in the Nangma valley. The Nangma

www.automark.pk | September-2015 | Page 42

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

Monthly AutoMark International River is adjacent to north of the Khane Valley, and yes, it was flowing very fast. Trailing through zigzag up and downs and crossing green patches we reached MinguluBrakk (Shepherd Huts) after four hours and decided to camp there as we want to avail a best acclimatization process for onward high altitude target. At this 1st campsite, we took the first a p p e ar a n ce o f G r e at T o w e r s, SinguCharpa and Black Towers. From this campsite, the route goes to basecamp of Amin Brakk after a very steep ascent. We dropped the idea to go Amin Brakk from this side. Our aim was set to go Amin Brakk High Camp from another new route which leads from K6 Basecamp.

barrier, we reached high camp at 4500m. On the next morning, Major Abbas Ghuman returned to his campsite of K6 whereas we moved upwards and established a new campsite near Driffiika Peak. This was the first place where any Pakistani has established a campsite. Driffiika is located in Kharidas and Nangmah Valley, in Kanday village, district Ghanche Baltistan. On the next morning, we prepared a team and moved on to Driffiika and Chagma Glaciers with all technical gears. We made ascent to the main Chagma Glacier and reached top of the Glacier at 5170m which is the highest point of the valley. We were the first Pakistani group who reached there. We tried to

According to locals, we were first Pakistani team who explored these valleys in the depth. This trek is ideally suited for those who like to walk right into the heart of the unspoiled Karakoram expedition where the most of campsites have shady trees, lush green vegetation and wild flowers, dancing streams with a great chance of observing wild life species. On the next day, we reached Nangma Shepherd Campsite (4200m). It was a beautiful place where several towers and peaks are displayed closely. Next day we took start for basecamp of K6. After crossing a steep ascent we reached basecamp of K6 easily at 4400m. There was a great view of great K6 along Tagas, which is surrounded by those valleys of Hushe, Saltoro, Kondas, Lachit and Nangmah namely ranges northwards to the K6 massif from the Austrian Col (5200m) that shares the Nangmah and Lachit Valleys. Here, we learned from our High Altitude Porter that an American Team was already camped at 4600m f or attempting the K6. We went upside at their campsite where a liaison officer Major Abbas Ghuman welcomed us. The American Climbers had gone to establish the route for five days. However after a short meeting we were familiar with each other. We shared our plan and then he had a wish to go with us for Amin Brakk high camp. On the 4th day, we moved for high camp of Amin Brakk with an informal route from Changi Towers side. We found a very steep ascent near Amin Brakk Pass which was evaluated at 4800m approximately. After crossing this high

locate a pass but unfortunately there was no way to cross the valley from this side into Charakusa Valley. We decided to return from there and reached our campsite safely as there were many crevasses in this glacial system. On the next morning of day seven, we descended the valley almost 2000m and reached Kanday Village just in a day. On the next, day we moved for Hushe Village on a jeep for exploring the Charakusa Valley. The Charakusa valley is home of the some great mountains like K6 (7281m) is also called Baltistan Peak, K7 (6934m), Link Sar (7041m) Driffiika (6447m), Kapura Peak (6545m), Niza Peak, Namika Peak (6325m). We easily reached Siascho Campsite from Hushe on the same day with 4 hours trekking. Next morning, we reached Spangser Campsite after a hard negotiated with eight hours trekking throughout the boulders. The Charakusa is a narrow gorge valley where the Charakusa glacier is the most easterly of the five glacier systems which radiate the northern end of the Hushe valley. The overloaded Chogolisa Glacier push the Charakusa glacier as a result, due to this glacial change because of global warming, the formal campsite of

Spangser has now been complete demolished. Therefore, we camped over Chogolisa Glacier with a difficult way. The route onwards to K7 Basecamp has also disturbed so we visited till Anqam and when we reached near K7 basecamp, the weather changed abruptly so we decided to go back from there immediately. This was a very long day for trekking, we reached Hushe village at 8pm. Next day, we set off for exploration of another hidden valley of NungBrakk Valley located in Kanday region. The trek started from the main bridge over Hushe Road near Kanday Village. We reached base camp of Majrooh-La at 4200m. We covered 1220m ascend in a day. On the route, we saw an amazing view of Montting Peak 6600m lies in the Bandit Valley. The basecamp was situated among shepherd huts. This was the first camp where any Pakistani reached there. Next day, we started to climb for attempting the Majrooh Top (4950m). After climbing of four steep tops, we reached near the Majrooh Top but the time had been over. We hardly reached near the top about 4800m and decided to move downwards as if we move up further; it was not possible to reach at basecamp while we have no sleeping bag for open night. And due to steep descend it was also not conceivable to go down in darkness. A great snowy Nagjanpa Peak over 6000m was displayed from the beneath of the Majrooh top. The rear view of K2, G-I and G-II was overlooked due to heavy clouds on this side. Due to shortage of time, we immediate moved down and reached safely at base camp. On the very next day, we reached Kanday village till the mid noon. According to locals, we were first Pakistani team who explored these valleys in the depth. This trek is ideally suited for those who like to walk right into the heart of the unspoiled Karakoram expedition where the most of campsites have shady trees, lush green vegetation and wild flowers, dancing streams with a great chance of observing wild life species. A number of unattempted peaks and places are there waiting for any challenge. Allah Hafiz, Pakistan Zindabad and Pakistan Bickers Club Zindabad

www.automark.pk | September-2015 | Page 43

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

Monthly AutoMark International

Safe Driving!

SAFE MOTORING

“Accidents are caused, NOT just happend.” MOHAMMAD SHAHZAD S.A.E; D.M.P Automotive Engineer & Doctor of Motors

It’s in your hands

Driven to Distraction

Dangerous distractive driving is a leading cause of deadly accidents “A distraction is defined as the delayed response by the driver to recognize the information necessary to safely accomplish the task of driving.” The distraction can be an event, activity, object or a person inside or outside of the vehicle that compels the driver’s attention taken away from where they should be focusing their concentration — the driving task. Distracted driving also refers to anything that takes your eyes or mental focus off of the road. It can include but is not limited to cell/mobile phones, iPod, texting, reading, eating, drinking, changing a CD/DVD, fiddling with radio dials, talking to a passenger, reaching for something in the car, experiencing emotional distress, re-living an argument in mind or even daydreaming , minding children, personal grooming, looking at billboards or even other vehicles on the road. But the use of cellphonesortextingbehind the wheel has become the most critical cause of fatal accidents in recent years. With virtually everyone owning a cellphone, distracted driving has become a threat on the roads. Studies say that drivers using phones are FIVE times as likely to cause collision crash as other drivers. It's difficult to accurately assess the full extent of the root causes of road accidents. Still, accidents related to distract driving are the highest compared to other causes. And a high

percentage of those fatal accidents involved the use of a cellphone. I have conducted several studies that illustrate how texting and cellphone use impairs driving. In a recent study, it found that almost 80 percent of all crashes are caused by driver inattention. Another study found that physically dialing a phone while driving increases the risk of a crash as much as six times. A study of commercial truckers showed that texting behind the wheel is riskier, increasing the risk of a crash 33 times compared with no distracted driving.

iPod or Die Pot The reason is clear: Texting on or dialing a cellphone—or even scrolling through the menus of an iPod—forces you to take your eyes off of the road, leaving you virtually driving blind. That is exacerbated by the fact that the small buttons and screens and complex menus

of portable electronics aren't designed for use while driving, unlike the controls on a car's dashboard. The effect of a cellphone conversation study conducted by a well-known research organization was t hat participants who engaged in cellphone conversations missed twice as many simulated traffic signals as when they were not talking on a phone, and it took longer to react to signals they did notice. Other studies show similar results. T h e v a s t m aj o r i t y o f su r v ey respondents—90 percent—felt that texting while driving is very dangerous. About half considered using a handheld phone very dangerous. But while 60 percent of our respondents said they are very concerned about distracted driving, almost a quarter of all respondents reported that it hasn't led them to reduce or stop such behavior.

"It's only matter of a second or two" Even a moment's distraction can be dangerous. A second or two may not seem like much, but keep in mind, at 90 Km/hr speed, your vehicle covers nearly 90 feet per second and over 90% of driving decisions are based solely on your full attention and concentration on the road. A lot can happen in a second

www.automark.pk | September-2015 | Page 44

Monthly AutoMark International or two. Being distracted causes drivers to react more slowly to traffic conditions or events, such as another vehicle stopping to make a left turn, or pulling out from a side road or driveway. Distracted drivers fail more often to notice or recognize potential hazards, including pedestrians, bicycles or debris on the road. When drivers allow distractions to take their focus away from the seriousness of the driving task, they decrease their margin of safety and are more likely to take risks without even knowing it.

Use hands-free aids Take advantage of voice-controlled products such as bluetooth with audio controls on steering wheel as these features are now available on most new vehicles and other systems that help you keep your eyes on the road and hands on the wheel. Drivers can verbally send and receive calls, texts, e-mail, and more. The products are usually voice-controlled and can read incoming messages to the driver. But they don't eliminate any distraction caused by hands-free communication. This smart-phone app reads text messages and e-mail aloud and allows drivers to speak responses or verbally compose new messages. We found that the voice recognition didn't always work or it required commands to be repeated.

Controlling distractions starts with good planning Here are some things you can do before getting behind the wheel that will greatly reduce your distractions while driving. Eat/drink before you get in the car. It may not seem like much, but taking time to eat breakfast or a snack before you leave means you can concentrate on the road — and keep both hands on the wheel, where they should be. Finish your personal grooming before you leave home. Applying lipstick or tying your tie while driving is not only a two-handed distraction — it's also a good way to injure yourself! Before you start your car: Pre-program radio stations and/or fill your CD changer Radio/CD buttons are small and can easily be missed if you're trying to do two things at once. Take a few moments and pre-program the station you want to listen to, or load

the CDs you want into your changer before you start the car. Turn off your cellphone, so you won't be tempted to answer it. Avoid talking on your phone while driving takes your mind off the road, because you're concentrating on the conversation. Secure loose items on your dash, rear view mirror or vacant seats.If you can't secure these items, put them in your trunk, or leave them at home. Sharp turns or abrupt stops will cause these things to fly — creating a (noisy) distraction. Review maps and directions or set your GPS. If possible, ask a passenger to be your navigator so you can concentrate on the road while they read the map and watch for signs and landmarks. Prepare your children with everything they need for the trip.When you buckle

them in, make sure kids have easy access to any toys or snacks you want them to have on each leg of the trip. In-vehicle DVD players can be very distracting for the driver, but if you feel you must have one, have it installed out of sight of the driver and in a way that precludes operation by the driver while driving. If, during the drive, your young passengers begin to fight, cry, or ask for something, pull over at a safe time and place and tend to their needs while stopped. Check your mood.If you're angry, frustrated or very upset, wait until you've calmed down before you climb behind the wheel.

While you're driving: Keep the conversation light and to a minimum.If you're driving with a passenger, let them know their safety is your first priority, not your conversation. Don't smoke in the car.If you need a cigarette, pull over to a safe spot and take a break. The distraction of lighting a cigarette or having hot ash fall into your lap can be a dangerous distraction — in more ways than one!

Don't rubberneck.If you pass an accident on the side of the road, or a new billboard, remember to keep your eyes on the road — not what's happening beside it! Chances are other drivers are attracted by the same event, and may not be paying attention to where they're going. Monitor traffic conditions. If you must deal with a momentary distraction on the road, monitor traffic conditions before engaging in activities that could divert your attention away from driving.Avoid taking your eyes off the road to reach for an object on the floor or in the back seat As a motorist, there are elements within the vehicle that you can control to minimize the distractions to which you will be most susceptible while driving. Though some of these distractions may not seem threatening, remember a lot can happen in just seconds of distraction. As a passenger, you may not realize the impact you have on your driver. Intense conversation, pointing out the scenery around you and even offering a drink are all distractions that jeopardize the driver's safety, yours and the other road users around you. Ultimately, distracted driving is a behavior dangerous t o drivers, pas¬sengers, and occupants alike. Distraction is a specific type of inattention that occurs when drivers divert their attention from the driving task to focus on some other activ¬ity and cause critical collisionending with serious injury or death. Do not detour your deadly driving to death… Protect and prolong your life long lease…

You live only once, enjoy most out of your healthy and happy LIFE! Drive Safe...It all starts with you! This exclusive article on ‘ Driven to Distraction ’ has been written by Mohammad Shahzad S.A.E., D.M.P., specially for Monthly AutoMark Magazine - International. (Automotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not he si t a te t o co nt a ct h i m a t shah@brimelltoyota.com or automarkcanada@gmail.com

www.automark.pk | September-2015 | Page 45

Visit to Belarus

PM impressed by largest mining truck manufacturer Prime Minister Nawaz Sharif on Wednesday visited Belaz, the world’s largest mining truck manufacturer with the latest model capable of carrying over 450 tons, and was impressed with what the equipment could achieve in the mining sector. He said Pakistan could benefit from the company while he was shown around the plant that manufactures one in three of the dump trucks produced globally. The PM evinced keen interest and asked several questions about the various processes involved. The company produces majority of the components at the local plant. He was also briefed about the manufacturing facility and informed that the company had made it to the ‘Guinness Book of World Records’ and had no competitors. “I am very impressed to see the facility, the expertise and technological advancement and I am sure Pakistan will be one of the countries benefitting from Belaz trucks,” said Sharif. Belaz 75710 The Prime Minister was also shown the company’s showpiece – Belaz 75710 the biggest dump truck in the world, capable of moving 450 tonnes in one go. The 26ft (8.2 metres) high truck has a top speed of 40mph (64km/h) and can still travel at 25mph (40km/h) while

climbing a 10 percent gradient. The monster truck has a diesel-electric transmission system. Two 16-cylinder diesel engines drive generators which produce electricity to power four electric motors. The truck consumes an estimated 1,300 litres of fuel per 100km. The ‘Belarusian Autoworks’ is one of the leading producers of construction machinery and vehicles for open-pit mining. In 2013, the company rolled out the world’s largest mining truck with

carrying capacity of 450 tonnes and recorded a lifting capacity of over 503 tonnes. Since established, the company has designed more than 500 modifications of vehicles and manufactured over 135,000 huge trucks that are now being operated all over the world. Belaz branded equipment operates in 70 countries around the world. The company also manufactures road construction vehicles and mining and transport equipment service vehicles like loaders, bulldozers, concrete mixer trucks, scrapers and tow trucks. The Prime Minister was presented a model of the truck. The delegation also included Minister for Information and Broadcasting Pervaiz Rashid, Minister for Defence Production Rana Tanveer, Minister for National Food Security Sikandar Hayat Bosan, Minister for Commerce Khurram Dastgir and Special Assistant to PM on Foreign Affairs Syed Tariq Fatemi.

September-2015 | Page 46

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