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Contents
November-2017
News / Event
Article / Review 18 21 22 24
46
Installation of trackers in bikes Will it really solve Karachi’s law and order issue? Exclusive by Ali Hassan
Highlighting the Passenger Safety Risks of Public Transport in Pakistan Exclusive review by Sarim Raza
47 49
Black marketing of Honda bikes in depressed market: Planned or Good Luck Exclusive by Ali Hassan
Inside
50
The Horizon of world automobile industry will be totally changed by 2030 Exclusive Article by Anwar Iqbal
PAMA gave the farewell party to outgoing MD Pak Suzuki
Auto Industry Professionals from Lahore Get Together by Monthly AutoMark - International
Paapam Annual Dinner in Karachi Paapam elects Iftikhar Ahmed as new chairman Automark Exclusive coverage HEC 15 Years Celebration At NED University of Technology (Regional Showcasing of Students Projects)
News Updates 20 27 28 30
Indus Motor Company Denied any Discussions to Replace XLI and GLI Why? Motorcycle Production Data for year 2016-17 The 5 Biggest Electric Vehicle Manufacturers in BRICS Nations Pakistan awaits Japan’s response to pave way for FTA
35
International Automotive News
45
Vehicles / Car Price List
48 51
Motorcycles Price LIst Corporate News - Glimpses
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November-2017 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 11, Issue 10
Monthly
AUTOMARK Magazine International Editor-in-Chief Muhammed Hanif Memon Technical Editor
Advisors
Imtiaz Rastgar CEO, Rastgar Group & Advertising Manager CBI External Expert, Ex-chairman EDB Tahir Siddiqui Islamabad Muhammad Shahzad
Circulation Manager Hasaan Mustafa
Graphic Designer Mustafa Hanif Salman Hanif
Web Master Murtaza Hanif
Contributors in THIS EDITION M. Owais Khan Anwar Iqbal Ahsan Mirza M. Hanif Memon Ali Hassan Syed Sarim Raza Zahid Iqbal Malik
Anwar Iqbal Chief Executive Officer Silver Seal International Karachi Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi Engr. IHT Farooqui Chief Operating Officer Pak China Motors (Pvt) Ltd. Karachi Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
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 Whatsapp & Wchat : +92 321 2203815
AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada - L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon
Imported cars get even more expensive due to RD The Prices of imported and refurbished or used vehicle is most likely to increase nationwide due to the rise in Regulatory Duties imposed by the Government. In the recent years, sales of the imported and refurbished vehicles have increased drastically with almost 6000 units being sold on average monthly to the consumers which promote to Pakistan’s import bill and there is lower number of sales from our local manufacturers because of this. AKD securities analyst said the increase in levies on imported vehicles will prove to be a benefit for the Local Original Equipment Manufacturer (OEM). It will help Increase demand for the locally manufactured vehicles. Regulatory Tax has had a huge impact on the selling prices listed on the imported variants. As the prices on the imported vehicles rise due to additional RD the local manufacturers will have to face a higher demand for the OEM variants. Mehran and Wagon-R models offered from Suzuki, list under the range of 660-800cc engines where the Regulatory Tax is right around 65,000 PKR. With rising by 5 percent to 6 percent in the similar engine based competing variants of the imported market. When summarizing it onto the taking delivery prices adding (WHT) of PSMC’s models, the pricing difference between imported variants is almost upwards of 18 percent. Along with this the 1000cc/1300cc engine variants Cultus/Swift now are retailed for 12.2 percent to 12.4 percent discount to the comparative import variants which was actually 7.3 percent to 7.8 percent before the up rise. With similar engine specs, Corolla falls in the 1300cc category in the passenger car listing where the Regulatory Duty imposed is right around 85,000 PKR to 200,000 PKR. When compared to delivery prices of INDU models the pricing difference to the imports has increased to over 24 percent from the original 20 percent imposed before the RD increase. Whereas the Toyota Hilux and Fortuner now have been drastically discounted to the cost nearing the imported variants, making them impossible to be compared with at a similar price as stated by the analyst. Honda City, BR-V and Honda Civic which are the locally assembled models from Honda listed in the 1300cc and above category where the comparison of addition RD imposed shows that Honda City, Civic, BR-V now trade at differentials of +41 percent, -8 percent, +5 percent which in comparison was +37 percent, -11 percent -+2 percent before the RD increment. The prices speak for themselves, right now in the market there is nothing equally comparable to the Civic offered from Honda under the same price range. According to the analyst looking at the average pricing increment in the imported market from the added Regulatory Duty on competing with the imported variants ranges around 4-6 percent. This gives the OEM manufacturers to raise their prices on the variants.
Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management
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Transportation in Multan - Update
Monthly AutoMark International
CM Shehbaz inaugurates feeder bus system to bring people to stations in Multan The Punjab Chief Minister Shehbaz Sharif inaugurated the Speedo bus service in Multan on last month. In the first phase, a total of 100 air-conditioned buses will be run at 11 different routes in Multan, and an e-ticketing system has been introduced for travelling. While addressing the inaugural c er e mo n y , t h e ch i ef mi n i s t e r congratulated the people of Multan over the launch of the Speedo bus service and said that 100 Speedo buses have been provided for the service. The people will travel in an honorable way on metro and Speedo buses with a paltry sum of Rs 25 and the facility for physically challenged passengers has also been provided in these buses, he said. After Lahore, the city of Multan has been blessed with this state-of-the-art public transport system, he added. He said that the journey of development and prosperity initiated by the Pakistan Muslim League-Nawaz (PML-N) government in the southern Punjab has been unprecedented. The people used
to talk about the backwardness of region, but was there any other government in the history of the country that adopted any practical steps for the development of this area, he asked. He said that as much as Rs 85 billion have been spent on construction and rehabilitation of
Auto sector can be backbone of manufacturing base Auto industry of Pakistan has come a long way in the last two decades and has the potential to be the backbone of Pakistan's manufacturing base, an official said on Monday. At a farewell dinner hosted for the outgoing Pak Suzuki chairman Hirafumi Nagao, Saquib Shirazi, newly-elected chairman of the Pakistan Automotive Manufacturers Association (PAMA), and a large number of former chairmen and members appreciated the contributions of Nagao. “Apart from its contribution to the GDP and technology transfer, the sector has become one of the largest revenue generators and a significant provider of employment opportunities for the emerging youth,” said Shirazi. Nagao said, "PAMA has played a positive role in strengthening the auto sector of Pakistan by engaging proactively with
the government on policy matters.” “Of the many initiatives, the current AIDP had already started delivering. Production of cars, tractors, LCVs and motorcycles have reached new heights and, given Pakistan's population, the potential is bright.” “On the back of stable economic policies, the sector can grow and attract more investment," he added. Ali S Habib, an industry leader and former chairman of PAMA, also praised the efforts of Nagao, who has served in Pak Suzuki for nearly 20 years and contributed heavily to the development of the auto industry. “Services of Mr. Nagao to the auto industry of Pakistan will always be remembered, especially for his efforts towards localizstion and ongoing vendor development, which is turning out to be the launch pad for the sector's growth,” he added.
farm-to-market rural roads programme. Similarly, thousands of kilometrees long rural roads have been constructed and repaired, and this initiative has brought new revolution in the rural economy. He said that a mega programme of providing clean drinking water is being started from southern Punjab and the contracts will be awarded at the end of this year. He said that the development works in the region are not a manipulation of works or a fictional story; people can see them materialising with their own eyes. He further said that Multan is a historic and densely populated city and the motorbikes ambulance service, which has been started in Lahore, will also be introduced in Multan in the next few weeks to provide first-aid to the people of congested localities and other areas in case of any emergency. This service will be extended to all nine divisions, as well. The CM congratulated the people over the start of the speedo bus service in Multan. He pointed out that such a gigantic project has not been established in Karachi or in Peshawar or anywhere else in the country. He further criticised the detractors of development projects in Lahore including the metro bus project.
www.automark.pk | November-2017 | Page 17
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Exclusive Report by Ali Hassan
Installation of trackers in bikes Will it really solve Karachi’s law and order issue? Sindh govt tests bike tracker gimmick after flop helmet drive
In the last three years, apex committee of the Sindh government and many ministries had been discussing installation of tracker on two-wheelers plying on the roads of Sindh and also on new bikes. However, the previous meetings to implement tracker installation have so far failed to become a practical reality owing to stakeholders’ reservation. In Pakistan – two kinds of bikes are being assembled – one is branded and others are replicas of branded bikes. Are the branded companies like Honda, Yamaha and Suzuki ready to fix trackers at the assembling stage? This is the main issue. Besides, a big competition among replica bike assemblers exists. Due to this quality of electrical parts being used in bikes like wiring harness, battery, charger, magneto coil, starting coil, flasher and lights are not up to the required standards that can match with the tracker requirement. Sub-standard wiring catches fire quickly. More than 85 per cent of buyers are using 70cc bikes and many of them
owing to limited income resources still feel a big pressure on purchasing Rs 40,000 bike. If one adds a tracker then the bike will cost extra Rs 3,500, annual activation charges Rs 1,500 and minimum smart phone cost Rs 10,000 with 3G/4G mobile connectivity which would cost additional Rs 1,000-1,500 monthly. The cumulative bike cost will swell to Rs 55,000 from Rs 40,000 coupled with monthly charges. In October, the Sindh government was all prepared to make it mandatory for bikers to install tracking devices in their motorcycles by introducing necessary legislation — a decision which many stakeholders believe is “ambitious” and “technically impossible” for a host of reasons. The Sindh government believes that tracker in bikes is now a dire need and the government is committed to implement it at any cost. Officials said Home Minister Sohail Anwar Siyal in a follow-up meeting in October with motorcycle manufacturers, chief of the Citizens-Police Liaison
Committee (CPLC) and senior officials from home, excise and taxation, and transport ministries hinted that the government was seriously mulling over drafting a piece of legislation to curb increasing street crimes. The Sindh government believes that motorcycles are being used in 95 per cent of all crimes in the entire province. So far only one company – Moto Track – has been in forefront for the last few years making serious efforts to get its tracker device installed in two-wheelers. Market sources said that it is not clear as to why only one company had been seriously involved in marketing of tracker devices and for this it had held several meetings with the Sindh government's higher ups and the bike assemblers. Sources said in case tracker device is made mandatory then the Sindh government has to make it open for more companies to introduce tracker otherwise giving the contract to a single company means complete monopoly of
APMA chief said perhaps the Sindh government may not be aware that last year the country produced 2.5 million bikes in which one million units are Japanese branded bikes while the rest are Chinese assembled bikes. “The point of view of Chinese bike makers hold equal importance like Japanese bike assemblers,” he added. www.automark.pk | November-2017 | Page 18
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Monthly AutoMark International Moto Track in case it is selected for tracker implementation. It may be noted here street crimes in Karachi has alarmingly remained high despite Rangers-led operations. This is perhaps the only reason that Sindh government looks serious to control street crimes. It should be appreciated that Rangers’ presence and its operations in the city has significantly curtailed major crimes like kidnapping and target killing. During the meeting, officials quoted Mr. Siyal as saying that the decision to legislate for curbing street crime was taken on the recommendations of the apex committee. The Sindh government had decided to amend the laws dealing with street crimes. The provincial government would also contact judiciary and legal fraternity to draft the anticipated legislation, official in Sindh government said. However, installing tracker on a motorcycle appears a gigantic task for the Sindh government and it can only be done when stakeholders and the customers are mutually agreed. However, the Sindh government would make sure that people should not spend heavy sums on the purchase of the tracking device. Some key stakeholders both Japanese and Chinese bike assemblers give certain technical and realistic reasons which show that it would be very difficult to get the plan implemented. More than five million motorcycles are being used in Sindh with more than three million only in its sprawling capital, Chairman Association of Motorcycle Assemblers (APMA), Mohammad Sabir Shaikh said adding out of more than three million motorcycles in Karachi, some 2.5 million were registered with the city while the rest were registered with other districts of the country. He said almost 90pc of the motorcycles being used in the country were of 70cc which had its drawbacks. “It has poor wiring and a battery which cannot support the tracking device. The government should know this fact before making any future legislation,” he added. APMA chief along with Japanese bike assemblers believe that installing trackers in the motorcycles to counter misuse of bikes by anti social elements in crimes in Karachi is not a practical
Sabir Shaikh expressed surprise that the main stakeholders of Chinese bike assemblers had not been invited in the last two meetings and only Japanese bike assemblers were invited. solution. The assemblers said the industry cannot install tracker at the manufacturing end. However, the industry has given some short term solutions to the Sindh government which is willing to counter law and order challenges. In one of the solutions, bike assemblers have informed Home Minister Sindh, Sohail Anwer Sial that at the time of purchase, bike dealers would deliver original documents to tracker company instead of the customer. Tracker company may then handover documents along with tracker fitting certificate in bike to customer or the registration authority after installation of tracker in the bike. This system would address the concern of the Sindh government that non-tracker fitted bikes may be plying on the roads. Bike makers said registration of Excise and Taxation Department may be made subject to provision of original tracker installation certificate along with registration documents to Excise and Taxation Department. Tracker company may be made responsible to provide warranty and after sales service to the customers. They may be asked to open sale and service centres in different parts of Karachi to make the operation a success. Monthly Sale of bikes in Karachi city alone hovers between 16,000-18,000 units. The most practical solution will be the adaptation of Automatic Number Plate Recognition System (ANPR). This technology is currently in use in many countries of the world for law enforcement is based on using the available surveillance cameras on the streets and with a hardware requirement as simple as one available for the home PCs to recognize and record date of different kind of vehicle number plate. This data is digitized and can be processed to investigate and counter organized crime, street crime or terrorist activities. The system is already successfully being used for meeting law enforcement challenges.
"Installation of tracker is not only a huge one-time expense from the perspective of a low price Chinese bike customer but the annual subscription charges will place the motorcycles out of reach of most of our customers" he said. The scheme would be a big dampener for the industry without adding the benefits the governments is looking for, he added. Industry sources said in the last meeting with Home Secretary Sindh, the Sindh government appeared to have dragged its feet back on the issue of installing tracker in the bikes. The Sindh government is reported to have informed the stakeholders that the government has postponed the tracker installation by the assemblers asking the stakeholders that it will review the decision and take proper feedback from the assemblers so that the interest of consumers as well as assemblers are not hurt. Sabir Shaikh expressed surprise that the main stakeholders of Chinese bike assemblers had not been invited in the last two meetings and only Japanese bike assemblers were invited. He said the Sindh government should ensure APMA its proper participation in the meetings with stakeholders so that a unanimous decision can be taken. APMA chief said perhaps the Sindh government may not be aware that last year the country produced 2.5 million bikes in which one million units are Japanese branded bikes while the rest are Chinese assembled bikes. “The point of view of Chinese bike makers hold equal importance like Japanese bike assemblers,” he added. Chairman Citizen Trust Against Crime, Mr Nazim Haji in a “Letters to the Editor” section of a leading English Newspaper has said that CCTV and automatic number plate recognition (ANPR) cameras should be the next step as part of the safe city project, he said. Regarding the irregularity/delays in the issuance of registration plates, the CTAC has offered the Sindh government to es t ab l i sh a r eg i st r at i on p la t e manufacturing plant as a voluntary contribution within the central or Malir jail premises. Regretfully, there is no response, Nazim said. The project will ensure the timely delivery of registration plates and, at the same time, provide income to prisoners, he said.....
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Monthly AutoMark International
Automotive News - Report
Indus Motor Company Denied any Discussions
to Replace XLI and GLI Why? Toyota is known for its reliability and practicality with their reasonable pricing all around the world. In fact, it is one of the most successful cars to ever leave the production line and without a doubt, it is the most sold car in the world. In Pakistan, Toyota Corolla is delivered in 4 variants, XLI which is the base model with the least options and a 1.3 liter, GLI which is also a 1.3 but loaded with other features and then you have the Altis 1.6 and 1.8 variant they all use the same inline-4 cylinder engine. The XLI and GLI variant is the most sold car in Pakistan. However, the production of these two models is most likely to be discontinued by the year 2019 with the replacement of a new 1300cc engine vehicle from Toyota for the two best-sold models. Although the assembler of the corolla, Indus Motor Company (IMC) denied any such decisions of the discontinuity or the replacement of the models. But multiple vendors for the Indus Motors who’s p ersonal inf o rmat io n i s confidential have confirmed as per their Global Policy Toyota Japan will keep the above 1300cc models in production to compete with its fellow rival from
Honda the model civic which is a tough competitor based in a similar price range. Toyota will, however, replace XLI and GLI with a new 1300cc model by 2019 to compare with the Honda City. Toyota Vios is most likely to be the replacement for the 1300cc models of Corolla. The vendors reported Indus Motors is discussing pricing of parts and has shared concept drawings of the coming new vehicle. They believe the replacement for Toyota Corolla will take around one and a half year to roll off the production line. The Company still claims there is nothing new to be in the discussion for the changes of models in the upcoming
years. Indus Motors CEO Ali Asghar Jamali stated “We keep discussing changes and new models with our principles. However, there is nothing concrete right now. If there is any material news the company will inform the public accordingly” Nearly all the companies around the Globe market their cars and proudly present their new upcoming models and concepts even 7-8 years ahead many of those which never even go into production whereas Toyota in Pakistan is even hiding its upcoming confirmed model which is to be put into production very soon. In our opinion, it might be because of the clash. Even though Toyota is to replace this 1300cc model with Vios but they just came out with a beautiful facelift of the corolla in 2017 which everyone loving by far and they might not be sure if they will hit the same success with the Vios adding to this if they announce the replacement right now the sales of 1300cc corolla variant would drop since it would be difficult to find parts and it’ll be a discontinued car and they depreciate in price really fast then.
Trade deficit turns out to be blessing for local car assemblers It seems as if the government has paid full heed to decade-old demands of the existing car assemblers in the country. As the dust settled on the issue of regulatory duty on new and used car imports, industry stakeholders realised they were in for a bigger shock than what they had earlier imagined. According to latest details, regulatory duty has not just been enhanced on used vehicles over 1,800cc, but across all engine categories – on new and used vehicles – by 15%, effectively making all foreign cars expensive. The import of used cars has come to a complete halt after the recent changes. While the changes were made due to the increasing trade deficit, it has, ironically, given a major boost to the local industry
that has long been criticised for being a cartel that hinders entrants and disrupts free market competition. Also, according to the new rules, owners of all new and used vehicles will now need to pay duties and taxes themselves or by local recipients supported by a bank encashment certificate showing conversion of foreign remittances to the local currency. “The government cannot afford to kill this industry as it generates Rs70-80 billion in revenues annually,” All Pakistan Motor Dealers Association (APMDA) Chairman HM Shahzad said. “We have been following these same procedures for over 50 years and the government knows it well.” Car importers have been importing used
vehicles through three major schemes; personal baggage, transfer of residence, and gift scheme for decades. But changing dynamics of the economy, which have seen the country’s foreign exchange reserves decline drastically, have meant that the government has been forced to take action. On last week of previous month, APDMA wrote a letter to Prime Minister Shahid Khaqan Abbasi urging him to intervene and save the industry from collapse. Shahzad, who represents the powerful lobby, is confident that he would succeed in taking time from top government officials in Islamabad on week.
www.automark.pk | November-2017 | Page 20
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Exclusive article by Syed Sarim Raza
Monthly AutoMark International
Highlighting the Passenger Safety Risks of Public Transport in Pakistan
In the world of digitalization where the concepts of connectivity and resourcefu lness hav e become int egral components of almost all major areas of life, public transportation st il l d emand s mo re at t ent i on, particularly in the developing countries like Pakistan. Pakistan has shown meager growth over the years in the public transport sector because of a number of reasons. New transport projects including the Metro Bus Service, Orange Train, Speedo Busesand many others that have been launched or planned to be launched by provincial governments have slightly changed the outlook of public transport in few big cities of Pakistan but haven’t yet taken the whole transport system out of the woods.The overall situation of public transport system in Pakistan is still terrible and passenger safety situation has only deteriorated over the years. The poor administrative handling of the transport system, lack of resources and absence of potential investments to improve the quality of the whole system are the fundamental reasons why public transport is not safe in Pakistan and why we see a number of road accidents occurring on a regular basis in the country.
Safety Hazards of Public Transport in Pakistan Public transport is one of the most fundamental means of commuting in the urban life. This is also considered as the safest type of commuting in most parts of the world, but not in Pakistan because of a number of factors that have played a part in deteriorating the transport system. The buses, trains and other vehicles used
in public transport have either passed their safety limit or they haven’t been maintained well to satisfy the global benchmarks of passenger safety. These are the fundamental reasons why big lorry buses carrying more passengers than their capacity catch fire,or face a sudden breakdown that puts road safety at a serious risk for all commuters including everyone inside the bus, passengers in vehicles crossing by and even the pedestrianson the road. Unfortunately, the bus driver and conductor are never trained to deal with such emergency situations, hence what could just have been a minor accident turns into a massivetragedy and the death toll mounts. The absence of even the basic safety equipment such as a fire extinguisher adds fuel to the fire, which leads to fatal consequences. This is the everyday story of public transport system in Pakistan and only a handful of such incidents are reported in the media because of external pressures and lack of coverage in the remote areas where these incidents regularly occur.
How Can the Safety Situation of Public Transport be improved in Pakistan? While the Government of Pakistan has offered multiple incentives to foreign investors to gain their interest in the private vehicles segment of the automotive industry, there is hardly any emphasis laid on the improvement of transp ort sy stemthrough t hese incentives. New car manufacturers are being welcomed to launch their new cars in the private cars segment but no substantial investment can be seen in the segment of passenger vehicles. This
is where the Government needs to give more attention and transport bodies must look into the matter ofintroducing new and safer vehicles for public transport so that the safety situation for passengers can improve. Listed below are the much-needed improvements that must be made to the public transport sector of Pakistan without any further delay: • Vehicle that are too old and are vulnerable to breakdowns must not be used to carry passengers anymore. • The transport bodies must monitor the condition of passenger vehicles on a regular basis and vehicles owners must be advised to keep their vehicles wellmaintained. • The drivers and the support staff in public buses must be trained to handle emergency situations and drivers must go through rigorous trainings to handle difficult driving conditions effectively. • Public vehicles must have basic safety equipment including seatbelts and fire extinguishers so that the life loss can be reduced to a bare minimum in the event of a dangerous accident. • The infrastructure of roads must be improved over a period of time so that public transport can gradually become safe for commuting. • Passenger vehicles must not carry passengers above their capacity. • The monitoring of public transport must be improved with advanced surveillance devices and increased patrolling of roads by traffic Police. No one can expect any overnight change in the public transport sector of Pakistan, but if all the above-mentioned practices are adopted by the concerned authorities over a period of time, the safety situation of passengers in public transport can improve for the years to come...
www.automark.pk | November-2017 | Page 21
Exclusive Article by Ali Hassan
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Black marketing of Honda bikes in depressed market: Planned or Good Luck All Chinese-based bike assemblers have been under pressure for the last two and a half years as strict competition is eroding their profitability. Out of 125 approved assemblers – some 50 units are active while 75 assemblers have closed down their assembly lines. Chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Sheikh said out of 50 active units – some 10 Chinese and three Japanese assemblers enjoy good position. In such a scenario where majority of assemblers are out of the market and the existing units are feeling unhappy – Honda bikes are enjoying a cool ride. Is it a planned marketing strategy or it can be called a good luck. “Premium or on money” – the most popular jargon in car sector now also clings to the two wheeler segment where impatient buyers pay hefty premiums to the authorized dealers of local assemblers for getting instant delivery instead of waiting for three to five months delivery time of four wheelers after booking. Still the black marketing in cars continues unchecked despite increase in production capacity by the local assemblers, he said. For the past two and a half years premium on Honda bikes have hit the headlines of newspapers due to artificial demand and supply gap created by the dealers. Sabir said some 15 authorised dealers of Atlas Honda Limited (AHL) in Karachi city are making hefty money by black marketing Honda bikes mainly 70cc, CG125cc and newly launched 150cc. The black marketing of bikes by Honda dealers can be proven from the advance
booking of Honda bikes by the dealers to Atlas Honda Limited (AHL). Market sources said billions of rupees are deposited by the dealers to its principal for the delivery of Honda bikes. He said customers are getting delivery of bikes in 15 days to 30 days time after depositing full amount to the dealers. If the buyers show some signs of hurry then the dealers manage the bikes on spot by taking Rs 8,000 to Rs 10,000 on 70cc and 125cc and Rs 20,000 extra on 150cc. Atlas Honda Limited has neither taken any serious action against its authorized dealers nor suspended dealership of its dealers who are involved in illegal business of bikes for the last two and a half years. It means that the dealers’ mafia has got full support of the company which is evident from no serious action against the dealers so far. Sources said dealers are making extra buck in connivance of the company. Buyers of Honda bike models 70cc and 125cc are being asked for premiums by certain authorised dealers of
Karachi for despite record production by AHL. Some authorised showroom owners of Honda at Akbar Road have these bikes on display but are refusing buyers to sell these for cash on spot and are taking at least 15-30 days in delivery to the prospective buyers after booking. However, some dealers are totally denying having any stock of both these models and also refusing to accept advance booking payments, citing that the company is providing limited stocks which cannot compete with soaring demand. Some dealers have resorted to black marketing of these bikes, demanding Rs120,000-121,000 (including Rs4,500 registration and taxes) for CG-125cc while its actual price is Rs106,500, plus Rs4,500 for registration and local tax. Similarly, Rs70,000-72,000 (including Rs4,000 for registration and taxes) are being demanded for Honda 70cc from customers while its original price is Rs63,500 plus Rs4,000 registration and taxes.
Chairman APMA, Mohammad Sabir Sheikh said out of 50 active units – some 10 Chinese and three Japanese assemblers enjoy good position. In such a scenario where majority of assemblers are out of the market and the existing units are feeling unhappy – Honda bikes are enjoying a cool ride. Is it a planned marketing strategy or it can be called a good luck. www.automark.pk | November-2017 | Page 22
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Monthly AutoMark International
In May, the newly launched Honda CB150F bike costing Rs 159,000 had also become short in supply at the authorised showrooms of Karachi and dealers offered buyers to book the bike and take delivery in 45 days, tentatively. At that time some dealers demanded Rs180,000 for this 150cc bike. Honda dealers attribute this situation to the manufacturer’s decision of shifting its bulk supplies towards rural Punjab and Sindh where liquidity position of growers of cotton, sugarcane, rice, wheat etc have improved due to better harvest of these cash crops. AHL official said it has ensured availability of 70cc and 125cc bikes at some other spots in the city where these bikes are easily available without any premium. For face saving or to show how sincere the company is, the AHL has conveyed that it is taking strict stance against this artificial shortage being created by a cartel of its dealers at Akbar Road who are now transferring the bikes to the interior of the province through wholesale operations. AHL said the supplies of motorcycles to the dealers have been limited to agreed quotas based on their historical sales trend and growth rate. Mr. Shaikh said good quality of Honda CD-70cc bikes and its stagnant price for the last two and a half years have been giving a tough time to the Chinese bike makers who are unable to compete with their Japanese counterpart. He said that trucks carrying Honda bikes arrive at night and offload only 10 per cent of their cargo at the authorised showrooms in Karachi while the remaining 90pc of bikes are shipped to the interior of Sindh. The government and the relevant ministries have so far played a role of silent spectators in both the car and bike case where heavy premiums are being charged openly by the authorized dealers. No action has been taken by the government against the assemblers. Chinese and two leading Japanese bike assemblers have raised the prices of twowheelers by Rs500 to Rs5,000. Pak Suzuki Motor Company Ltd has issued a letter to its authorised dealers regarding retail prices effective Oct 1. However, the company has not given any reason for the price hike. According to a dealer, the company has
increased the price of its model GS150 by Rs5,000 to Rs138,500 from Rs133,500. A dealer said the company had enhanced the price of SD110 Sprinter ECO to Rs103,400 from Rs98,400. Atlas Honda Ltd (AHL) had made a paltry rise of Rs500 in CG125 model from September 18, 2017. A dealer said the company had kept the price of its most popular CD-70cc intact at Rs63, 500 for the last two-and-a-half years. However, a price difference of Rs20,000 exists between Honda CD-700cc and Chinese made CD-70cc but this could not help the Japanese bike assembler
2016. The share of Chinese assembled bikes in country’s total production inched up to 1.302 million units in 2016-2017 from 1.210 million units in 2015-2017. The share of Japanese bike in total production climbed to 006,612 units from 848,001 due to positive growth shown by Honda for maintaining the hi ghest prod uct io n amid ti ght comp et ition with Chinese bike assemblers. Honda being the costly bike rolled out 964,640 units in 2016-2017 as against 811,044 units while in contrast some 13 leading Chinese players assembled 1.302 million units in the last
“For face saving or to show how sincere the company is, the AHL has conveyed that it is taking strict stance against this artificial shortage being created by a cartel of its dealers at Akbar Road who are now transferring the bikes to the interior of the province through wholesale operations. AHL said the supplies of motorcycles to the dealers have been limited to agreed quotas based on their historical sales trend and growth rate” to beat its Chinese rivals in Karachi. The dealer said AHL’s overall sales of bikes in Lahore alone hovers between 14,000-15,000 units per month but in Karachi the company is struggling to meet its sales target despite improved law and order situation. Sabir Shaikh said bikes sales would remain brisk in the future as people in major cities and rural areas still lack effective transport system especially in Karachi. “A buyer pays few thousands in advance and lifts the bike on easy monthly installment despite the fact it costs higher due to high interest being charged by the dealers,” he added. Chinese bike makers have also come out with new price hike by Rs500-1,500 in 70cc to 125cc bikes. APMA chief attributed the price hike to an increase in the cost of assembling on account of the jump in raw material (steel, iron sheets and plastic) prices globally, surge i n cust oms valuati on o f some components and increase in Chinese parts. He said some other factors which also caused a price rise was the rupee devaluation against the dollar, while Chinese currency has become strong. Pakistan’s total bike production has swelled to 2.413 million units in 20162017 from 2.058 million units in 2015-
fiscal. Chinese bike maker United Motorcycle remained the second highest bike assembler by rolling out 326,731 units versus 262,779 units while Road Prince made 207,224 units as against 166,836 units. Production of Unique, Super Star and Super Power also rose to 178,256, 117,071 and 111,714 units as compared to 148,818, 95,698 and 94,358 units respectively in 2015-2016. Production of HI-Speed bikes, Crown, ZXMCO, Metro, Union Star, Ravi and Rohi stood at 77,968, 75,176, 46,337, 29,001, 27,857, 21,971 and 13,145 units as compared to 56,287, 64,110, 36,501, 17,519, 17,935, 21,797 and 9,118 units respectively. Rising bike production has soared import bill of completely and semi knocked down kits (CKD/SKD) kits to $26 million in the first quarter of 20172018 from $18 million in same period last fiscal. However, import bill of CKD/SKD kits during 2016-2017 slightly crawled down to $92 million from $94 million in 2015-2016. Higher import bill of parts and accessories expose tall claims of local bike assemblers of achieving over 94 per cent localization in two-wheelers.
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THE HORIZON OF WORLD AUTOMOBILE INDUSTRY WILL BE TOTALLY CHANGED BY 2030 It appears the death of the internal combustion engine is finally happening. The only question now is ‘when’, not ‘if’
Why has this moved so quickly from the possible to the inevitable? Because the question marks surrounding cost, range and charging have all now been answered. Battery costs are plummeting, and Bloomberg New Energy Finance predict that electric vehicles (EVs) will be cheaper than petrol cars by 2022. A Nissan Leaf can already receive a 80% charge in 30 minutes, and that will only improve. There are electric buses that have achieved 600 miles on a single charge. ‘Range anxiety’ will soon be a quaint historical term. Americans bought more electric vehicles in September than any other month this year. According to Inside EV's monthly sales report, 21,325 battery EVs and plug-in hybrid EVs found homes last month. That's 20 percent more than this time last year and the second highest number ever. 2017 looks like it will be
a record year; a total of 159,614 EVs were sold, a figure that should easily be eclipsed by the end of October. BMW has already said it will electrify its entire range, as has Volvo. Volkswagen plans to introduce 20 new all-electric cars by 2020, with a manufacturing plan capable of building “2 to 3 million all-electric cars a year by 2025”. Norway and Holland have declared intentions to ban emissionsproducing vehicles by 2025, and in October Germany’s Bundesrat passed a resolut ion to ban the internal combustion engine starting in 2030. India’s Road Minister also recently announced an ambition for the country
to become a “100 p e rc e n t el e ct r i c nation” by 2030. Britain’s plans match a similar pledge made this month by France, and are part of a growing global push to curb emissions and fight climate change by promoting electric cars. Carmakers are also adjusting, with Volvo notably saying recently that it would phase out the internal combustion engine in the coming years and BMW deciding to build an electric version of its popular Mini car in Britain. Once customers have the right range and price, and they can charge at home so they never need to go to a petrol station again, why would they will buy a petrol car? In order to meet air quality targets, every city could go electric for public transport within the next ten
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Monthly AutoMark International years. For car companies it means the biggest disruption since the internal combustion engine itself. There will be a reshuffling of the pack in terms of winners and losers, but it’s a transition that ’s defi nitely achi evable. Infrastructure also needs to keep up with, or ideally stay ahead of, demand. The entire market for land transport will switch to electrification, leading to a collapse of oil prices and the demise of the petroleum industry as we have known it for a century. Surprisingly the market leaders in electric car segments are having no long historical background of automobile industry. They are relatively new entrants in the world of automobiles. The BYD Auto from China is top selling plug in electric car manufacturers. It is also very amazing in the global history that China is leading this ultra high technological segment, American, European, and Japanese are runners up and behind China. The number one company in electric vehicles is BYD China and number two is Tesla U.S.A. BYD Auto Co., Ltd. is a Chinese automobile manufacturer based in Xi'an, Shaanxi Province, and a wholly owned subsidiary of BYD Company. It was founded in 2003, following BYD company's acquisition of Tsinchuan Automobile Company in 2002. Its principal activity is the design, dev elop ment, manuf act ure and distribution of passenger cars, buses, forklifts, rechargeable batteries and trucks sold under the BYD brand. It also has a 50:50 joint venture with Daimler AG, Shenzhen BYD Daimler New Technology Co., Ltd., which develops and manufactures luxury electric cars
sold under the Denza brand. BYD Auto sold a total of 506,189 passenger cars in China in 2013, making it the tenth-largest selling brand and the largest selling Chinese brand. In 2015, BYD Auto was the best selling global electric vehicle brand, ahead of Luxgen. For a second year running, BYD was the world's top selling plug-in electric car manufacturer with over 100,000 units delivered in 2016. In October 2016, BYD Auto became the all-time largest global plug-in car manufacturer. In 2008, BYD Auto began selling its first mass-produced, plug-in hybrid vehicle, the BYD F3DM. China subsidizes oil (an incentive for the State to encourage use and manufacture of electric cars), and Chinese automakers see opportunities in less mature electric vehicles because Western companies have yet to develop much of a lead in the technology. In late December 2008, Warren Buffett spent $230 million on the acquisition of a 10% stake in BYD Auto's parent, BYD
Company. In 2009, the company sold 448,400 cars in China, and two-thirds of sales were its BYD F3 model. In the same year, BYD began the export of its cars to Africa, South America, and the Middle East. Some of its first all-electric vehicles were offered via fleet sales to government buyers in China. The BYD Qin plug-in hybrid, launched in the Chinese market in December 2013, ranked as the top selling plug-in electric car in China in 2014. The car also ranked seventh among the world's top 10 best selling plug-in cars in 2014. In 2015, the Qin remained as the top selling passenger new energy vehicle in China. The BYD Qin was the world's second best selling plug-in hybrid car in 2015 and also ranked fifth in 2015 among the world's top selling plug-in electric cars. Three BYD Auto models topped the Chinese ranking of best-selling new energy passenger cars in 2016. The BYD Tang plug-in hybrid SUV was the top selling plug-in car with 31,405 units delivered, followed by the BYD Qin (21,868), and the BYD e6 (20,605). As of December 2016, the BYD Qin, with 68,655 units sold since its inception, remained the all-time top selling plug-in electric car in the country. Cumulative sales of 250,000 plug-in cars since 2008, BYD ended 2015 as the world's top selling manufacturer of highway legal light-duty plug-in electric vehicles, with 61,772 passenger vehicles sold, mostly plug-in hybrids. Accounting for heavy-duty vehicles, BYD total sales rises to 69,222 units. BYD continued as the world's top selling plug-in car manufacturer in 2016 with over 100,000 units sold, up 64% from 2015. BYD sold
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more than 100,000 new energy passenger cars in China in 2016. The BYD Tang was the top selling plug-in car in China in 2016 with 31,405 units delivered. The runner up in electric vehicles segment is Tesla, Inc. (formerly named Tesla Motors). The company was incorporated as Tesla Motors in July 2003 by Martin Eberhard and Marc Tarpenning who financed the company until the Series A round of funding. The founders were influenced to start the company after GM recalled and destroyed all of its EV1electric cars in 2003. Tesla's early primary goal was to commercialize electric vehicles, starting with a premium sports car aimed at early adopters and then moving as rapidly as possible into more mainstream vehicles, including sedans and affordable compacts for the mass market. Now the company renamed as Tesla Inc., registered as an American automaker, energy storage company, and solar panel manufacturer based in Palo Alto, California. The company specializes in electric cars, lithium-ion battery energy storage, and, through their SolarCity subsidiary,esidential solar panels. Tesla first gained widespread attention following production of the Roadster, the first mass-produced electric sports car, in February 2008. The company's second vehicle, the Model S, an electric luxury sedan, debuted in June 2012 and is built at the Tesla Factory in California. The Model S has been the world's bestselling plug-in electric car for two years in a row, 2015 and 2016. Its global sales achieved the 150,000 unit milestone in November 2016, four years and five months after its introduction. As of
December 2016, the Model S ranks as the world's all-time second best-selling plug-in after the Nissan Leaf. The Model S was then followed in September 2015 by the Model X, a crossover SUV. Tesla's fourth vehicle that is designed for the mass-market is the Model 3, which was unveiled in March 2016 and its production started in July 2017 with a base price of US$35,000, before any government incentives. Tesla global sales passed the 200,000 unit milestone in March 2017, making the carmaker the second largest global pure electric car manufacturer. For two years running, 2015 and 2016, Tesla ranked as the world's second best selling manufacturer of plug-in electric cars after BYD Auto. Musk, the CEO, has said that he envisions Tesla as a technology company and independent automaker, aimed at eventually offering electric cars at prices affordable to the average consumer. Tesla is named after a Serbian electrical engineer and physicist, Nikola Tesla. The Tesla Roadster uses an AC motor descended directly from Nikola Tesla's original 1882 design. The Roadster, the company's first vehicle, was the first production automobile to use lithiumion battery cells and the first production EV with a range greater than 200 mi (320 km) per charge. Between 2008 and March 2012, Tesla sold more than 2,250 Roadsters in 31 countries. In December 2012, Tesla employed almost 3,000 fulltime employees. By December 31, 2015, this number had grown to 13,058 employees, and to over 30,000 (of which 25,000 in US) after acquiring Grohmann and SolarCity in late 2016. Global sales of the Model S achieved the 150,000 unit milestone in November
2016, just eleven months after passing the 100,000 unit mark. As of November 2016, the Model S ranks as the world's second-best-selling plug-in electric car in history.
Could electric cars be introduced in Pakistan as well? Electric cars require charging stations. Unless there are enough charging stations across the country, like petrol pump s, consumers cannot feel comfortable enough to purchase an ecar. With load shedding a norm in the country, the existence of charging stations cannot be enough either. Even if investment in setting up the infrastructure (perhaps even in greater renewable energy) is made, and consumers can get behind adapting the technology in terms of its unique functioning, there will remain the matter of price. Will the new electric cars that may be introduced meet a price point advantage over traditional cars? It seems unlikely. However electric cars can bring the import bill down considerably in Pakistan as oil imports continue to overpower the current account. These cars also run on a single electrical motor, not requiring additional costs of oiling and other costs associated to the engine. The long term advantages of electric cars are many, but the investment required for these cars to kick off in the market are significant, both on the part of manufacturers and t he government. Will Pakistan see a rise in electric cars over the next five years? Only time will tell.
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The 5 Biggest Electric Vehicle Manufacturers in BRICS Nations Electric vehicle manufacturers to rise with the tide Electric vehicles (or EVs) continue to grab headlines as various governments worldwide continue to announce new legislation and strategies to reduce vehicles powered by gasoline and diesel engines. Indeed, Bernstein research predicts that EVs could represent 40% of auto sales and 30% of the global car market in 20 years. UBS Group (UBS) believes that a growing global electric vehicle fleet will begin to be disruptive to gasoline demand by 2031. Surprisingly, emerging markets (EEM) (VWO), are in many cases keeping pace with their developed market peers in the drive away from traditional auto engines. Tracking new technology and related products in these markets is an investment theme set to attract major fund flows.
The 5 biggest electric vehicle manufacturers in BRICS We ran a filter on all the automakers currently selling products into the electric vehicle space, and originating from the BRICS nations (being the prominent area of focus within the emerging markets due to size and scale), to arrive at 5 largest automakers in the EV space. Here’s the list of the five biggest auto manufacturers (by revenue) from BRICS nations (Brazil (EWZ)Russia (RSX)-India (EPI)-China (FXI)-South Africa (EZA)) that are currently cashing in on growing demand in the electric vehicle space: As is evident from the table above, all of these firms have delivered strong returns to investors so far this year. Maruti Suzuki’s stock is up about 55%, while SAIC Motor and Hero Motocorp have delivered over 36% and 31% returns to investors, respectively.
SAIC Motor Corp (600104.SS) SAIC Motor Corp is China’s largest
automaker. With over $341 billion in market capitalization, the company’s stock is listed on the Shanghai stock exchange under the ticker 600104. The stock has returned 36.6% YTD (as of September 21) and currently trades at a P/E of 10.4. The company is keen on the plug-in hybrid electric vehicle (PHEV), electric vehicle (EV) and fuel cell technologies. Its electric drive unit (EDU) was awarded first place at the 2016 China Automotive S&T Award Ceremony. In 2016, sales of new energy vehicles under SAIC’s self-owned brands increased 84% year-on-year to surpass 25,000 units. In 2017, SAIC Motor plans to launch more new brands to improve the sales of new energy vehicles to over 80,000 units. The company has founded the Global Car Sharing & Rental Co Ltd to offer timeshare leasing of electric cars. In 2016, the car-sharing company launched 8,400 new energy cars and built 2,800 charging stations in 20 cities. The service is scheduled to cover 100 cities in 2020, with 300,000 vehicles.
Mahindra & Mahindra Ltd. (M&M.BO) (MAHMF) Currently, Mahindra & Mahindra is the only manufacturer of electric cars in India (INDA) (INDY). The company’s stock is listed on the Bombay Stock Exchange with the symbol M&M and also on the NYSE’s OTC market under the ticker MAHMF. With $802 billion in market capitalization, the India-listed stock of the company trades at a P/E of
18.8 currently. The stock has returned 10% to investors YTD. Mahindra Electric, the company’s electric vehicles division, has the e20plus, eVerito and eSupro in its stable. The company expects EV sales to triple in 2017. It has already partnered with shared mobility platforms, rental firms (such as Zoomcar) and cab aggregators to promote the usage of electric cars. The company has a current capacity to make 400-500 EVs/month and seeks to increase this capacity to 5,000 vehicles a month over the next 2 years. Mahindra is also working on a high-end electric powertrain technology, which will allow cars to run for 200-300 km with a single charge from the existing range of 100-140 km. A luxury electric sedan could also come from the M&M stable, targeting international markets. The company has also entered into a partnership with Ford Motor Co. (F) to cooperate in areas including driverless and electric cars. For M&M, there’s money to be made in a nascent EV sector. “This is not a trade-off. This is the single biggest business opportunity for the next couple of decades,” said Anand Mahindra, the company’s chairman on clean technology, at the Bloomberg Global Business Forum in New York on September 20. The company is also currently looking for a joint venture partner in the world’s biggest EV market, China (YINN).
Maruti Suzuki India Ltd. (MARUTI.BO) (MRZUY) This Indian automaker’s stock is listed on the Bombay Stock Exchange with the symbol MARUTI and also on the NYSE’s OTC market under the ticker MRZUY. The company boasts of a $2.5 trillion in market capitalization on the Indian exchange. The stock is expensive at a P/E of 32.5 currently. However, the stock has returned 54.6% to investors YTD. While the company currently does not offer a pure electric vehicle, its product
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Honda Atlas posts highest growth again, Suzuki follows Sales of locally assembled vehicles, including jeeps and light commercial vehicles, jumped to 18,798 units in September 2017, up 17% compared with 16,060 units in the same month of 2016, according to the latest data released by the Pakistan Automotive Manufacturers Association (PAMA). Sales figures for September 2017 depict a 15% decline when compared with 22,094 units sold in August 2017. Cumulative industry sales during the first three months (July to September) of fiscal year 2017-18 exhibited a 27% growth to reach 60,470 units. The report said that the first three months’ sales are on-track in terms of reaching the predicted 236,000 unit sales in the current fiscal year. Looki ng at ori ginal equ ipment manufacturers (OEMs) individually, Honda Atlas continued to outperform
peers with sales increasing 24% yearon-year in September due to success of the new models of Civic and BRV. On a month-to-month basis, however, sales lagged by 27% as Honda’s plant was shut down for a longer period (compared to others) due to clumping of Eid and Muharram holidays. In first quarter of fiscal year 2018, Honda’s sales grew 56% to 12,606 units. Pak Suzuki’s sales increased 22% yearon-year for low-price models Mehran (+43% year-on-year), WagonR (+60% year-on-year), and Cultus (+33% yearon-year) all exhibited healthy growth, with cumulative first quarter sales of 32,777, up 30% year-on-year. Indus Motor, the makers of Toyota Corolla, lagged behind peers with a meagre 4% year-on-year growth in September 2017 and 5% growth in first quarter of FY18 due to production
constraints. Overall, the company sold 15,087 units in the first three months of FY18. Tractor sales continue to exhibit an upward trajectory with sales growing by 74% year-on-year in September 2017. Lower General Sales Tax (GST) on tractor purchase, fertiliser cash subsidy and Rs2 billion subsidies for farmers on tractor purchases announced by Sindh are expected to support tractor sales in coming months, the report added. Truck and bus sales of PAMA member companies in September 2017 remained strong, growing by 37% year-on-year while first quarter sales rose 23% yearon-year. This trend may continue due to on-going major infrastructure projects under the China-Pakistan Economic Corridor (CPEC) that are expected to improve road connectivity in the country.
offerings include hybrid cars – Ciaz SHVS and Ertiga SHVS. These smart hybrid vehicle offerings of the company have record cumulative sales of over 100,000 units a month and participate in the government of India’s FAME India* scheme, which aims to promote Faster Adoption and Manufacturing of Hybrid and Electric vehicles in India.
vehicles over ten years ago which resulted in the first electric scooter products launched in the Indian market in 2007. Since then the company has sold over 100,000 vehicles in India. With over 50% market share in the electric scooter market, the company is the dominant player in India’s electric two-wheeler market. The company has also been very active in promoting the electric vehicle industry through the formation of an industry association and by approaching the government to provide subsidies of up to 20-25% on all electric scooter sales.
Lada Vesta. The company’s stock trades on the MICEX exchange under the ticker AVAZ, commanding a market cap of $48.5 billion. The stock has returned 13.8% YTD.
Hero Motocorp (HEROMOTOCO.BO) (HRTQY) Hero Motocorp is a leading motorcycle and scooter manufacturer based in India. The company’s stock is listed on the Bombay Stock Exchange with the symbol HEROMOTOCO and also on the NYSE’s OTC market under the ticker HRTQY. With $770 billion in market capitalization, the India-listed stock of the company trades at a P/E of 21.1 currently. The stock has returned over 31% to investors YTD. The company currently offers a range of electric 2-wheelers and 3-wheelers. Hero Electric began developing electric
Avtovaz PJSC (AVAZ.ME) AvtoVAZ is the Russian automobile manufacturer formerly known as VAZ: Volzhsky Avtomobilny Zavod, but better known to the world under the trade name Lada. The VAZ factory is the largest car manufacturer in Russia, and one of the largest in the world. The company is the single Russian company pursuing electric cars, with their electric
Tata Motors (TTM) While the above five top the list of BRICS automakers that have forayed into electric vehicles, the overall biggest automaker BRICS nations by revenue, Tata Motors (TTM), is set to zoom into the electric vehicle space as well. There’s talk of Tata Motors launching an allelectric Tiago. The UK-based subsidiary Tata Motors European Technical Centre (TMETC) hinted that the Tiago EV might deliver 100 km on one full electric charge, will accelerate from 0-100 kmph in about 11 seconds in sports mode, and would be capable of a top speed of 135 kph.
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Pakistan awaits Japan’s response to pave way for FTA The trade balance witnessed peak in last fiscal year, when Pakistan’s exports fetched $246 million and imports stood at $1.986 billion with Japan, registering negative trade balance of $1.740 billion. Pakistan awaits a response from Japan to finalise an early harvest programme to pave the way for a free trade agreement (FTA) between the two countries, a minister said on last week. Federal commerce minister Mohammad Pervaiz Malik held a meeting with Japanese ambassador Takashi Kurai on Tuesday, and said Japan being the 6th largest import destination was an important trading partner of Pakistan. “There exists tremendous potential between the two countries to increase bilateral trade.” The minister said despite GSP Plus status and an average 1.4 percent less duty than developed countries, the tariff imposed on Pakistan’s textile exports was on average 5.36 percent higher than that being faced by competitors like India, Bangladesh, and ASEAN countries. The commerce minister said Japan was also a ve ry p romi sing mark et for Pakistan’s leather products but in this sector as well Pakistani products faced an average tariff of 16 percent, along with tariff rate quotas which were
higher than that offered to India and Bangladesh. This was rendering Pakistan's leather products uncompetitive. “We want a level playing field,” the minister said. Pervaiz Malik informed the Japanese A mbassad or t hat Pakist an has framed terms of reference (TORs) for an early harvest programme leading to a FTA, and shared those TORs with the Japanese side. He added that both sides have notified their respective joint trade committees (JTC). Japanese ambassador Takashi Kurai informed the commerce minister that internal consultation was still being carried out and the outcome would be disclosed by the next JTC which may be held in Japan. He assured the commerce minister of full support of the Japanese government and said more and more interaction of the governments and private sectors of both the countries was required to boost bilateral trade. The first meeting of the JTC was held on July 24, 2017 in Islamabad. During the meetings, the Pakistan side
had raised the issue of pending TORs and final decision on the proposed early harvest programme. The trade balance has been in favour of Japan, as Pakistan’s exports stood at $40 million and imports $533 million, registering negative trade balance of $493 million in the first three months (July-Sept) period of the current fiscal year 2017-18. The trade balance witnessed peak in last fiscal year, when Pakistan’s exports fetched $246 million and imports stood at $1.986 billion with Japan, registering negative trade balance of $1.740 billion. Pakistan’s major exports to Japan included cotton fabrics (woven), cotton yarn, fish and fish preparations, made up articles of textile mat, medical/surgical instruments, baby carriages and sports goods and hosiery. The major imports included road vehicles and their parts, machinery (all sorts), iron and steel manufacturing thereof, chemical material and products, chemical element and compounds, paper and paper board, ship and boats.
Italian automobile companies keen to invest in Pakistan Italian automobile companies are keen to invest in Pakistan. In this regard, President of Ansaldo Energia, world fourth largest engineering company Giuseppe Zampini held detailed discussion with Federal Minister Industries and Production Ghulam Murtaza Khan Jatoi. Giuseppe Zampini told the Minister A ns ald o E ner gi a i s a l ead i n g international player in the power generation industry to which it brings an integrated model embracing turnkey power plants construction, power equipment (gas a steam turbines, generators and micro turbines), manufacturing and services and nuclear activities.
Speaking on the occasion the Minister said that Pakistan is looking for strengthening of relations with Italy. He said that the economy of Pakistan is progressing and initiatives taken by the present democratic government have creat ed inv estmen t friendly environment in Pakistan for the international community get invest especially in Industries, Production and Infr as tr uctur e deve lopments. ‘’Industrial corporation mutual trade and people to people contact may be increased for strengthening of bilateral relations’ ‘he added. The automobile industry was also discussed in the meeting and the Ambassador shared with the Minister
the promotion of Italian auto companies in Pakistan. The Minister explained how they are necessary to give companies incentives and tax relaxation for foreign companies who want to set up industries in Pakistan. The Minister said that industries for new technology can be set up in Pakistan. Pakistan with an investmentfriendly atmosphere, offers attractive opportunities for foreign investment including joint ventures, there is a tremendous potential for foreign investments. The ambassador apprised about the friendly relations Pakistan and Italy are enjoying at various levels.
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Toyota, Honda among Japan carmakers checking inspections In wake of Nissan news, government seeks 2017 Honda CBR 650F reports this month Launched in India; TOKYO -- With Nissan Motor under fire had carried out inspections in some Prices Start at Rs 7.30 Lakh for inappropriate vehicle inspections in cases. Honda Motorcycle and Scooter India has launched the 2017 Honda CBR 650F in the Indian market at a price of Rs 7.30 lakh (ex-showroom, Delhi). The facelifted version of the motorcycle features several cosmetic changes and a few mechanical changes. The 2017 Honda CBR 650F retains the basic design of the previous model and hence has the same basic outline. Styling cues from the CBR 1000RR Fireblade have now made the motorcycle look more aggressive. The motorcycle features a new LED headlamp which looks distinctly different thought the design remains nearly the same. The way it is housed makes the difference, as the motorcycle is now sharper-looking. Also helping in the looks department are the new colours - Millennium Red & Matte Gunpowder Black Metallic. Powering the 2017 Honda CBR 650F is a liquid-cooled, 649cc, inline fourcylinder DOHC engine which develops a maximum power output of 86bhp and a peak torque output of 60Nm (A decrease of 2.4Nm). The engine is mated to a new 6-speed short ratio gearbox which according to Honda has made the mid-range of the motorcycle even stronger. The engine on the Honda CBR 650F has always been a great motor, especially for sport touring, however, it lacked the exhaust note that one would expect from a 4-cylinder engine. That has now changed with the new model, as it features a dual-pass internal structure in the exhaust system as opposed to the older triple-pass system.
Honda repatriating popular motorbike production from China Designed by the company's founder, Super Cub has sold almost 100 million units to date Honda Motor is set to shift production of its mainstay Super Cub motorcycle back to Japan from China after five years, as the cost advantage in China is wearing thin amid rising wages.
Japan, automakers in the country are checking their own systems in response to a government directive. The transport ministry has asked carmakers to furnish a report of their findings by the end of this month. The ministry is not aware of other violations, but is stepping up scrutiny to ease consumer skepticism. The inspection in question happens at the very end of the manufacturing process, with only qualified workers allowed to conduct it under law. At Nissan, the qualification can be obtained after at least three months of training. But probes by the ministry found that employees with just a month of training
Toyota Motor has periodically checked to make sure that only qualified workers are conducting inspections, never finding a problem, the company says. But it is now checking the status at all of its plants. Honda Motor also says there is no problem with inspections at its plants, with only qualified workers doing the work. The company will check its records to confirm that past inspections were carried out appropriately. Mitsubishi Motors, which joined the Nissan group after a 2016 fuel-economy scandal, is also looking into its inspection practices, as are Subaru and Mazda Motor.
Kobe Steel’s Falsified Data Is Another Blow to Japan’s Reputation TOKYO — Big manufacturers of cars, aircraft and bullet trains have long relied on Kobe Steel to provide raw materials for their products, making the steel maker a crucial, if largely invisible, pillar of the Japanese economy. Now, Kobe Steel has acknowledged falsifying data about the quality of aluminum and copper it sold, setting off a scandal that is reverberating through the global supply chain and casting a new shadow over the country’s reputation for precision manufacturing. The fallout has the potential to spread to hundreds of companies. Big multinationals, including automakers like Toyota Motor, General Motors and
Ford, as well as aircraft manufacturers like Boeing and Mitsubishi Heavy Industries, are investigating. The companies are trying to determine if substandard materials were used in their products and, if so, whether they present safety hazards. It is a daunting task, since multinationals source from various suppliers and producers. The scandal hits a tender spot for Japan. The country relies on its reputation for quality manufacturing as a selling point over China and other countries that offer cheaper alternatives. But its reputation has been marred by a series of problems at some of Japa n’ s bigges t manufacturers.
The Trucking Industry Is Gradually Embracing Autonomous Vehicles If you saw the recent X-Men movie "Logan," you probably remember one startling scene that showed driverless robotic trucks hurtling down the highway in the year 2029. That futuristic vision isn't here yet, and experts say there are significant technological and regulatory challenges that would have to be overcome before
autonomous trucks dominate our hi gh w ay s . But a l re a d y , t r u c k manufacturers have been making significant strides toward automating much of the work human truck drivers currently perform — and those advances eventually may lead to future fleets of big rigs that transport their loads safely without a person behind the wheel.
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Transportation in Karachi - Review
The wheels of Karachi’s buses grind to a halt According to sources, the federal government took notice of the lack of public transport in Karachi in 2009 and allocated Rs2.5 billion for the introduction of 4,000 CNG buses. This project was supposed to be implemented on the basis of public-private partnership.
For the past 15 years the people of Karachi have been facing an acute shortage of public transport vehicles. Many have been forced to climb on to the roofs of dilapidated buses to get to work. It is a common sight to see people hanging off the sides of buses, heading to their destinations in great discomfort. This situation leaves them prone to accidents and puts their lives at considerable risk. Due to a shortage of buses, even women and female students have been facing severe difficulties. Rickshaw and taxi drivers capitalise on this situation to charge fares of their own choice. The city has witnessed the closure of 269 public transport routes. Adding to the citizens’ misery, more than 10,000 vehicles have been scrapped, converted into loading trucks and contract carrier buses or moved out of the city. For the past many years, no new bus scheme has been introduced in the city. According to an estimate, there are only 4,500 public transport vehicles plying on the city’s roads. However, the provincial transport and mass transit department claims there are 6,176 buses,
mini buses and coaches operating on 165 routes in Karachi. With a population of more than 20 million people, the city desperately requires 8,000 large buses to provide reasonable transport facilities to its residents. The federal and provincial governments have failed to improve the transport system and add new buses in the financial hub of Pakistan, which provides 70% of the nation’s revenue. For the past three decades, the poor law and order situation in the city along with frequent strikes and protests during which transport vehicles were burnt have taken its toll on the transport system. These factors along with the CNG crisis, arrival of illegal qingqi rickshaws and other issues have all contributed towards the declining number of buses, mini buses and coaches in the port city. Of the 6,176 buses, mini buses, and coaches the provincial government claims are operating in Karachi, 653 are large buses, 2,926 mini buses and 2,391 coaches. Under the auspices of the Karachi transport society, 160 buses are operating, while the urban transport
scheme has 10 buses under its banner. An additional 36 CNG buses are o p e r a t i n g u n d e r t h e K ar a c h i Metropolitan Corporation. A survey conducted by Express News showed that the provincial government’s statistics were skewed. The city has around 4,500 buses, mini buses and coaches plying on its roads. Many transporters have been issued route permits but their vehicles are nonfunctional. Owing to a loss in business or for other reasons, they are operating vehicles outside the city or have converted them into loading trucks or contract carrier buses. Transporters try to obtain route permits so that they can establish their hegemony over these routes and also get the chance to bring their vehicles back if they desire. No survey conducted by the Sindh government on this issue could be found. The data has been collected based on registration and route permits. The Express News survey has revealed that the transport system is on the brink of ruin. There is a mass transit system with large buses in all the major cities of the world. At one time, the city of
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Monthly AutoMark International
Karachi, under the supervision of the tramway system, circular railway and Karachi Transport Corporation was providing standard and cost-effective traveling services but this has now been replaced with 50-year-old public transport vehicles plying on dilapidated roads. From 1970 onwards, the authority of the government over the public transport system started to diminish. After that, the elite officers of both the civilian and military governments played roles in the ruin of the transport system. The tramway met its end due to its sluggish operations and the increase of vehicles on the road but the termination of the Karachi Circular Railway and Karachi Transport Corporation was the result of corruption and negligence of officials. The tramway saw its demise in 1975 while the circular railway and Karachi Tr an sp o r t C or p or at i o n ce ase d fu nct ion ing in 19 99 and 199 7 respectively. According to records of the regional transport authority, there were 60 bus routes in the city of which 30 routes have been closed in the past 15 years, leaving only 30 routes operational. Mini buses had 236 routes of which 137 have been shut down and only 87 remain in operation. Coaches had 75 routes of which only 40 are operational while the rest have been shut down. Only seven of the 53 routes of the Karachi public transport society remain operational. The urban transport scheme has witnessed a sharp decline with only one operational route out of its former 22 routes. Overall, out of the 446 routes of public transport in the city, 269 routes have been closed. Some of the well-known routes of large buses that have been closed include 8D, 1C, 5, 5D, 5E, 11A, 1F, 72, 72A, 5A, 5B,
4M, 4H, and 6B. Some of the routes of mini buses that have been closed are A, A1, A2, B1, D2, F3, F4, G, G1, K, K1, M, M3, N2, N3, P2, P6, S, S1, U2 and U3. Among the coaches that are no longer functional are the Mehfooz coach, Umar coach, National Pakhtoon coach and New Ghazi coach. According to transporters, this business requires a lot of guts as in the past, numerous transport vehicles have been burned down during strikes. Nevertheless, the transporters somehow managed to continue with business one way or the other. However, with the arrival of the motorcycle Qingqi and CNG Qingqi rickshaw services that seat between nine and 12 passengers, the backbone of the transport system has broken. During this time, many large buses were scrapped and mini buses were either converted to loading trucks or carrier buses. Owing to the Qingqi rickshaw services, the number of public transport vehicles was reduced to 4,500. The high court’s decision to ban this illegal business in 2015 put forth some glimmer of hope and public transport managed to resurrect itself to a certain extent. Some of the closed routes were opened once again and the vehicles returned too. However, the overall situation is still in dire need of attention. Due to the indifference of the federal and provincial governments towards the transport system, the city government’s urban transport scheme introduced in 2004 failed. Under this scheme, 250 new large buses were introduced but, due to various reasons including lack of subsidies and terminals, the scheme came to an end. Now the city only has 10 buses functioning on the UTS-12 route. The former city government, under a second scheme introduced in 2009, initiated
the operations of 75 new CNG buses on two different routes. For some time, these vehicles were managed efficiently but later this scheme was also closed down due to lack of funds and political interference. Four buses of this scheme were donated to the Karachi Medical and Dental College and two to the National Institute of Management. Another two vehicles were burnt. Only 36 buses in working condition are operating from Gulshan-e-Hadeed to Tower, while the remaining 31 nonfunctional buses stand useless at the Surjani depot. According to sources, the federal government took notice of the lack of public transport in Karachi in 2009 and allocat ed Rs2.5 billion f or the introduction of 4,000 CNG buses. This project was supposed to be implemented on the basis of public-p rivate partnership. The transporters were supposed to invest 20% in the project while the remaining 80% was to be provided by banks in the form of loans. An advance payment of Rs300,000 and subsidy on the loan interest were supposed to be paid to the transporters from the allocated government funds. The federal government had also paid the first installment of Rs300 million to the State Bank. However, the private banks refused to provide loans to the transporters. Later, due to lack of interest from the federal and provincial governments, the project never materialised. Different studies of the Karachi mass transit system have concluded that as many as 70,000 passengers utilise the public transport in Karachi on a daily basis. However, due to a severe shortage of vehicles, the public is forced to travel on the roofs of these vehicles.
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International Automotive News - Update
Monthly AutoMark International
Tesla eyes Shanghai factory as electric car company looks to expand manufacturing base
E
lon Musk’s Tesla electric car company is reported to have struck a deal with Chinese authorities to build a factory in Shanghai, opening up the world’s largest automotive market to the fast-growing business. Tesla is reported to have agreed to set up a plant in the city’s free-trade zone. This will be a first for Western manufacturers who have so far had to partner with a Chinese business to establish manufacturing operations in the country. Billionaire Mr Musk has previously hinted that building Tesla cars in China could reduce their price by a third, with local taxes and shipping costs meaning they cost up to 50pc more than identical vehicles sold in the US, where the company currently has its only production line. Such a deal would likely reduce Tesla’s manufacturing costs, though it would still have face the 25pc import tax levied on foreign vehicles sold in China. However, it would allow Tesla to maintain control of profits and crucially its electric car technology and manufacturing processes, without the worry that proprietary information
could leak out into Chinese industry. China is the world’s fastest-growing market for alternatively fuelled vehicles (AFVs) – a category which includes Tesla’s battery-powered cars – as the Beijing government looks to reduce pollution in the country’s smoggy cities. Last month the Chinese government said all car manufacturers in the country will have to produce some electric vehicles by 2019, with the state offering s u b s i d i e s t o e n co ur a g e t he i r development. Some forecasts suggest demand for AFVs in China could hit between 6m and 7m a year by 2025, with two-thirds of these being all-electric. The country is already the world’s largest automobile market with 25.5m cars and light commercial vehicles sold there in 2016, out of global total of 84.2m. Tesla refused to confirm that it would build a factory in China, saying only that was “working with the Shanghai municipal government to explore the possibility of es tab lishing a manufacturing facility in the region to serve the Chinese market”. The company has previously said it “expected to more clearly define our plans for production in China by the end
of the year”. Tesla said it was “deeply committed to the Chinese market” and continues to look at opportunities "to establish manufacturing sites worldwide to serve local market". In a nod to the financial advantages of establishing a Chinese factory, a spokesman for Tesla added: “While we expect most of our production to remain in the US, we do need to establish local factories to ensure affordability for the markets they serve.” The company produced fewer than 100,000 vehicles last year and is a relative minnow in the sector, especially when compared to giant such as Ford which delivered 6.6m vehicles over the same period. Despite its small size – and massive losses – Tesla is an investor favourite and seen as likely to be a winner in the industry which is facing more change over the next few years than in the past century thanks to technology such as electrification and self-driving systems. For this reason Tesla has a market value of $57.6bn (£43.6bn), compared with Ford at $48bn.
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International Automotive Industry - Update
Monthly AutoMark
Honda to start mass recall in China over Takata air bags China rolls out first pure electric buses in Beijing Each of the 18-metre-long vehicles contains a highly safe and stable lithiumtitanate battery pack which can run for a maximum of 130 kilometres on just a 15-min charge The first batch of ten completely electric buses, complete with automatic PM 2.5 filtration equipment, has taken to the roads of Beijing. Developed by the Beijing Public Transport Group, each of the 18-metrelong vehicles deployed on Beijing’s Bus Line 1 contains a highly safe and stable lithium-titanate battery pack which can run for a maximum of 130 kilometres on just a 15-minute charge, the Ecns.cn reports. Noticeably, the buses all have blended bionic dolphin modelling as part of their exterior design, which is designed to increase energy efficiency, and PM2.5 purifiers that are able to greatly enhance air quality within the vehicles.
Shell Buys EV Charging Station Company The company operates more than 30,000 private electric charge points. Oil company Shell has signed an agreement to buy electric vehicle charging firm NewMotion. It did not disclose terms. The company, which will become a wholly owned subsidiary of Royal Dutch Shell, operates more than 30,000 private electric charge points for homes and businesses in the Netherlands, Germany, France and the U.K. Shell's Vice President for New Fuels, Matthew Tipper, says Thursday that the deal will give customers "flexibility to charge their electric vehicles at home, work and on the go." Shell has insisted it is planning for the day when demand for oil starts to fade. CEO Ben van Beurden has promised to look at "very aggressive scenarios" to remain competitive in a world that gets more of its energy from renewable sources and less from crude oil.
Honda will recall more than 245,000 vehicles in China over concerns about air bags made by troubled Japanese giant Takata, Chinese authorities said Sunday, dealing another blow to Takata's largest client. The Japanese carmaker and its Chinese joint venture partner Guangqi Honda will start withdrawing vehicles fitted with the potentially faulty air bags beginning Oct 23 and will include Accord, Fit, City, Crosstour and Everus S1 models, China's top consumer watchdog said. They will replace the faulty air bags for free. Takata has recalled some 100 million air bags produced for some of the world's largest automakers, including about 70 million in the U.S., because of the risk that they could improperly inflate and rupture, potentially firing deadly shrapnel at the vehicle's occupants. The problem has been linked to a number of deaths and injuries worldwide. In China, the defect involves more than 20 million vehicles, most of
which have already been recalled. Last month, Honda reached a $605 million settlement in a lawsuit over defective air bags in millions of cars on American roads. Honda joins Nissan, Toyota, BMW, Mazda and Subaru in agreeing a deal to settle a lawsuit, replace the defective air bags from now-bankrupt Takata, and to compensate car owners. Multiple Honda models are affected by the case, including Civic, Accord and CR-V, dating back to 2001. The air bag defect has been linked to 16 deaths and scores of injuries worldwide, as the safety devices can inflate with excessive force, sending shrapnel from the inflator canister hurtling towards driver and passengers. The issue led to the biggest car recall in history of about 100 million vehicles worldwide. The bankruptcy could mean the major automakers may find the air bag producer will not reimburse them for their costs, despite an $875 million fund created by Takata in January.
Honda engine production in Ohio reaches 25 million milestone Associates at the largest Honda engine plant in the world celebrate milestone engine and continued investment Associates at Honda’s Anna, Ohio engine plant, the largest Honda engine plant in the world, today celebrated the 25 millionth engine produced since Honda of America Mfg., Inc. opened the facility in 1985. Honda recently invested $47 million in the Anna Engine Plant for the introduction of the new engine lineup for 2018 Honda Accord, including two new, direct-injected VTEC Turbo 4cylinder engines and the 2.0 i-VTEC Atkinson Cycle engine for the Accord Hybrid. Total investment at the plant now exceeds $2.7 billion. “Building 25 million engines is not just a major production milestone, but s y mb o l i c o f t he p as s i o n an d commitment invested by our associates, past and present, to satisfy 25 million customers,” said Paul Dentinger, plant manager of the Anna Engine Plant. “We continue to invest in our plant and our
people to build a new generation of Honda engine products for customers here and around the world.” The 25 millionth engine, produced on Line 4, was a 1.5-liter turbo that will be installed in an all-new 2018 Accord, assembled 45 miles to the east at the Marysville Auto Plant. The Anna Engine Plant also makes the turbo engine that powers the Civic Type-R built in the U.K., the most powerful engine ever offered in a Honda production vehicle in the U.S. The Anna facility supplies engines and components for 14 Honda and Acura products made in Ohio, Indiana, Alabama, Canada and other locations across the globe. The Anna Engine Plant has four assembly lines and two casting operations. The Anna Engine plant reached its milestone 32 years after it opened. At its current production rate – 1.18 million engines annually – it will take only 21 years for Anna to build another 25 million engines.
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Exclusive Review by Syed Sarim Raza
Monthly AutoMark International
FBR Pakistan Announces New Regulatory Dutiesfor Imported Vehicles The Federal Board of Revenue in Pakistan has announced new regulatory duties on 356 essential and luxury items which also includes imported cars. The regulatory duty has witnessed an increase of 350% on imported items and a drastic increase in the regulatory duty of imported vehicles has also been implemented after a long time. The Government has approved the increased regulatory duties on imported vehicles, which will mean that importingnew and used cars will become tougher for the importers. According to a rough estimate, the prices of large imported vehicles such as Revo and Prado Land Cruiser will receive a hike of 10 to 20 lacs while the prices of small cars and hybrid vehicles will receive a hefty increase of 1 to 5 lacs in their prices.
Details of the New Regulatory Duties on Imported Vehicles in Pakistan It bears critical importance that car enthusiasts in Pakistan are provided with the most authentic information so that they can make a practical car buying decision based on the current market tr end s and amen dment s i nt he automotive policies. There were many speculations made about the new regulatory duties imposed on imported vehicles before the FBR made its official announcement to clear all the doubts.
Listed below are the new regulatory duties on imported vehicles as per the announcement of FBR: • New cars including the hybrids will face a regulatory duty of 15%. • A regulatory duty of 15% has also been imposed on new mini buses and vans.
• The regulatory duty on new sports cars has been hiked from 60% to 80% of the import value. • The duty on the import of used cars has been increased from 50% to 60%. • A massive increase has been observed in the regulatory duty of all-terrain vehicles. The duty on these vehicles has been increased from 50% to 80% of the import value. It means that all types of vehicles whether new or used will be covered under the new regulatory duties announced by FBR in Pakistan. The importers will have to pay more to import luxury vehicles in Pakistan and buyers will have to pay extra money to purchase these vehicles, which is expected to decrease the market demand for imported vehicles.
How will the Increased Regulatory Duties on Imported Cars Impact the Car Market? The trend of importing luxury vehicles inPakistan had observed its new heights in recent years, which mounted immense pressure on local car makers to maintain their stronghold in the market. However, the increased regulatory duties on new and used cars will now make it tougher for the importers to import new or used luxury vehicles.
This initiative has been taken to boost the local car market and minimize the import of used and new vehicles. As a result of this impact full initiative, the demand for locally manufactured and assembled cars has increased and the local car makers have increased the “ON rate” on the purchase of new vehicles. The demand of Toyota Fortuner, Camry and Grande has increased considerably after the announcement of increased regulatory duties. The demand of locally assembled hybrid cars has also increased in the local car market. There are also hearsays of the expected launch of 4500cc Fortuner and a new hybrid model of Camry in the market to lure the potential car buyers who were earlier looking to buy the imported Prado Land Cruiser or luxury hybrid vehicles. This initiative by the Government can prove to be a big game changer in the automotive industry of Pakistan, which had clearly observed a serious comp etit ion bet ween loca lly manufactured vehicles and imported vehicles in recent times.
Car Buyers Must Make a Rational Decision while Buying their Next Car With increased regulatory duties on imported cars, car buyers will have to pay extra amounts to buy an imported vehicle. The increase in regulatory duties is expected to lower the demand for imported vehicles in the market so it can also impact the resale value of these vehicles in the longer term. On the other hand, the local car manufacturers are now looking to improve the standards of their vehicles to capitalize on this golden opportunity and lead the local market convincingly again. In the present scenario, it has become critical for car buyers to weigh the potential of all options available and make a rational decision while buying their next vehicle.
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Car / Light Vehicle Price List SUZUKI Ex Factory Price
Model Model
WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR NEW CULTUS VXL BOLAN VX EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2
Rs. 1029,000 Rs. 1069,000 Rs. 650,000 Rs. 720,000 Rs. 773,000 Rs. 1,327,000 Rs. 1,463,000 Rs. 1,250,000 Rs. 1,391,000 Rs. 725,000 Rs. 696,000 Rs. 667,000
Advance Tax
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
25,000 25,000 10,000 10,000 10,000 50,000 50,000
Rs. 10,000 Rs. 10,000 Rs. 10,000
SUZUKI IMPORTED VEHICLES SUZUKI CIAZ (A/M) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol)
Rs. Rs. Rs. Rs.
1,839,000 1,699,000 2,142,000 2,418,000
TOYOTA COROLLA Model XLI VVT-i 1.3L M/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis A/T CVT-I (1.8 ltr) GRANDE 1.8L S.R. M/T GRANDE 1.8L S.R. A/T FORTUNER 2.7L A/T Petrol
HONDA Honda BR-V (i-VTEC) 1.5 Rs. 2,241,000 Honda BR-V (i-VTEC S) 1.5 Rs. 2,341,000 Model Price Honda Civic 10th Generation 1.8L Oriel Rs. 25,41,000/=* Honda Civic 10th Generation 1.5L Turbo Rs. 29,11,000/=* Honda Aspire Manual 1.3L Rs. 1,663,000 HYUNDAI Honda Aspire Manual 1.5L Rs. 1,683,000 Honda City 1.3L Manual Rs. 1,553,000 Honda City 1.3L Automatic Rs. 1,674,000 Honda Civic VTI Manual 1800cc Rs. 2,053,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,285,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,174,000 Honda Civic VTI Prosmatec SR (Oriel) Rs. 2,406,000 * Ex-Factory prices, Advance income tax, freight & insurance will be added as per destination Price will be charge at the time of deliver what-so-ever
DFSK PRINCE PAKISTAN Model
Price
K01 997CC, 2300mm, A/C PS K01 997CC, 2700mm K07 997CC, 6 Seater, AC/PS C37 1500CC, 11 Seater, AC/PS
Rs. 799,000 Rs. 799,000 Rs. 9,99,000 Rs.1,550,000
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Price 1,672,500 1,817,500 1,892,500 2,047,500 2,147,500 2,272,500 2,307,500 2,457,500 5,085,500
Toyota Hilux Pickup 4x2 sc Model
Price
Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD
Rs. 2,063,000
Toyota 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. 3,324,500
FAW MOTORS Price
Model
Vigo Champ-V MT Rs. 3,598,500 FAW Carrier 1000cc (WHITE ,BLACK,STRONG BLUE & SILVER) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c Vigo Champ-G AT Rs. 3,798,500 FAW Sirius S80 (WHITE ,BLACK,STRONG BLUE & SILVER) Grand 1500cc EFI Pet FAW V2 1300cc A/C EFI Petrol CBU
Monthly AutoMark Magazine - International
Rs. 749,000 Rs. 849,000 Rs. 899,000 Rs. 1885,000 Rs. 1069,000
Price updated Nov- 2017
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Farewell party to outgoing MD Pak Suzuki
Monthly AutoMark International
Auto sector can be backbone of manufacturing base
All Pakistan Auto Manufacturers Association (PAMA) gave the farewell party to Japanese MD of Pak Suzuki at local hotel. In which all leading, prominent and welknown personalities of Auto sector Mr. Saqib Shirazi san, Mr. Ali Habib san Mr. Sohail Bashir Rana and also owners, MD's, CEO's and also popular people of Auto industry participated Auto industry of Pakistan has come a long way in the last two decades and has the potential to be the backbone of Pakistan's manufacturing base, an official said on Monday. At a farewell dinner hosted for the outgoing Pak Suzuki chairman Hirafumi Nagao, Saquib Shirazi, newly-elected chairman of the Pakistan Automotive Manufacturers Association (PAMA), and a large number of former chairmen and members appreciated the contributions of Nagao. “Apart from its contribution to the GDP and technology transfer, the sector has
Yao Jing new Chinese Ambassador to Pakistan
Yao Jing has been appointed as new Chinese Ambassador to Pakistan, an official of Chinese Ministry of Foreign Affairs said on last week. Yao Jing, who has served as Chinese Ambassador to Afghanistan, will soon assume his new assignment, he said in a statement issued here. Yao Jing, replaced Sun Weidong, who served as China's Ambassador to Pakistan for three years and recently returned to his country.
become one of the largest revenue generators and a significant provider of employment opportunities for the emerging youth,” said Shirazi. Nagao said, "PAMA has played a positive role in strengthening the auto sector of Pakistan by engaging proactively with the government on policy matters.” “Of the many initiatives, the current AIDP had already started delivering. Production of cars, tractors, LCVs and motorcycles have reached new heights and, given Pakistan's population, the potential is bright.” “On the back of stable economic policies,
the sector can grow and attract more investment," he added. Ali S Habib, an industry leader and former chairman of PAMA, also praised the efforts of Nagao, who has served in Pak Suzuki for nearly 20 years and contributed heavily to the development of the auto industry. “Services of Mr. Nagao to the auto industry of Pakistan will always be remembered, especially for his efforts towards localizstion and ongoing vendor development, which is turning out to be the launch pad for the sector's growth,” he added.
RENAULT SIGNS MOU WITH PAKISTAN TO SET UP CAR PRODUCTION PLANT
Renault signs MoU Pakistan Majid Al Futtaim to set up car production plant in Pakistan It turns out that famous French automobile company Renault is not letting go of its dream to set up a vehicle production plant in Pakistan. According to a foreign media outlet, the French automaker is in talks with UAE’s Majid Al Futtaim—an Emirati shopping mall company to set up a factory in Pakistan to produce vehicles Renault and Majid Al Futtaim has also signed a Memorandum of
Understanding (MoU) for this purpose. Both the companies are planning to build the production plant in Karachi in its industrial area and are committed to producing as many as 50,000 Duster SUV vehicles a year. It would be worth mentioning here that Duster SUV is one of the most significant commercial success of Renault. And in my opinion, the company with Duster SUV is planning to take local Pakistani car manufacturing market by storm. The French automaker has been trying to enter the Pakistani market for quite some time now, they previously tried to negotiate with local companies, Dewan and Gandhara, but it feels the talks failed in midway.
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Monthly AutoMark International
By M. Hanif Memon
Auto Industry Professionals from Lahore Get Together On the 15th of October Automark Magazine held an informal get together of professionals in the region of Lahore and its nearby places. Me being the part of Automark Magazine as the Editor-inChief along with some other guests from Karachi and Hyderabad went exclusively to attend the event in Lahore. No any sponsorship were used to host the event or help out in funding expressing the teamwork and passion of the group showing that it can be done even without much resources. It was held in one of the city’s finest hotels and group members enjoyed the roof-top restaurant location. The Guests who are members of the Automark WhatsApp group were
invited, along with the executives and professionals from several organizations. After the Karachi get together this was probably the second time Pakistan’s best Automobile and Autoparts industry competitors sat down together to discuss general matters and conduct decisions for the potential of automotive industry growth in Pakistan. The gathering was a success; it went on for 3 hours. All the members appreciated the efforts and initiatives taken by Automark to gather different companies to sit together and interact, Majority
suggested that it should be held more often under the umbrella of Automark. I would like to thanks are group friends for their warm welcome for me in Lahore and I appreciate all members for joining this gathering specially to Faisal Mufti and Imran Khalid sahib. We really missed the other friends who couldn't join us due to their busy schedule with the hope to meet them in our next gathering soon in near future InshAllah. Our team highly appreciates the support from our readers, we’ll strive to make Auto industry in Pakistan better and many more get together will be held in the coming years. Stay tuned!
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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST Rs. 41,800/= Rs. 43,800/=
70cc Motorcycle Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1
Retail Price Rs. 44,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 45,000/= Rs. 44,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=
125/150 cc Motorcycle No.
Brand & Model Name
Retail Price
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.
Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP Twister 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Unique UD 125cc Unique UD 150cc Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed Infinity SR-150 Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II
Rs. 106,500/= Rs. 125,000/= Rs. 107,500/= Rs. 159,000/= Rs. 70,000/= Rs. 67,000/= Rs. 108,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 70,000/= Rs. 170,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 115,900/= Rs. 133,900/= Rs. 129,900/= Rs. 65,000/= Rs. 71,600/=
Sr./ No. 13. 14. 15. 16. 17. 18. 19.
Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Ms Jaguar MS 70 Euro- II Ms Jaguar MS 70
( DREAM)
Zxmco ZX-70 Regular
Retail Price Rs. 43,500/= Rs. 45,500/= Rs. 42,000/= Rs. 45,600/= Rs. 41,800/= Rs. 43,800/= Rs. 42,300/=
100cc/110cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Brand &Model Name Honda Pridor United US-100 Euro 2 Road Prince 110cc Unique UD-100 Super Power SP-100 Hi-Speed Classic SR-100 Hi-Speed Alpha SR 100 Super Star SS-100 Crown CR-100 MS JAGUAR MS 100 Zxmco ZX-100-SS
Retail Price Rs. 86,000/= Rs. 50,000/= Rs. 48,500/= Rs. 80,000/= Rs. 60,000/= Rs. 47,500/= Rs. 77,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/=
Suzuki Motorcycle Sr./ Product & Model Name No. 1. SD110 Sprinter ECO 2. GS-150 SE Euro-II 3. GD 110s Euro-II 4. GS-150
Retail Price Rs. 103,400/= Rs. 158,500/= Rs. 131,000/= Rs. 138,500/=
Heavy Bikes Sr./ Product & Retail Price No. Model Name 1. Inazuma GW 250 Rs. 599,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Zxmco ZX-200cc Rs. 2,45,000/= Bandit GSF650SA 5. Rs. 15,50,000/= Super Power SP 200cc 6. Rs. 1,90,000/=
www.automark.pk | November-2017 | Page 48
Price update: Nov-2017
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Paapam Annual Dinner in Karachi
Monthly AutoMark International
Paapam elects Iftikhar Ahmed as new chairman Iftikhar Ahmed has been elected chairman Pakistan Association of Automotive Parts & Accessories Manufactures (PAAPAM) for the year 2017-18. Muhammad Ashraf Shaikh and S y e d Mi s b ah ud d i n w e r e a l s o unanimously elected Senior Vice Chairman and Vice Chairman of the Association respectively. Mu hammad As lam Mali k, Rana Mansoor Qadir,Adil Jawaid Mansoor,Mr. Faheem Anwar, Usman Aslam Malik, Engr. Azhar Ali, Basharat Javed Awan, Wajihuddin Siddiqui, Syed Tahir Abbas, Zain ul Abidin Shariq,
Shujaul Haq Siddiqui, Muhammad Ahsan Khan and Abdul Rehman were elected as members of the Executive Committee. Muhammad Saleem Chief Election Commissioner announced the final result of the election of members of executive committee and office bearers at Annual General Meeting of the Association. The executive committee and members of PAAPAM congratulated Iftikhar Ahmed and hope that being a veteran, seasoned and experienced person he will fully exploit his potentialities to resolve the problems being confronted
by the automotive vending industry. Later, traditional annual dinner was held at a local hotel. Honorable Ms. Naheed Memon, Chairman, Sindh board of investment (SBOI) graced the event. The function was held to bid farewell to the out going Chairman Mr. Mashood Ali Khan and welcome the incoming Chairman, Outgoing chairman and incoming chairman in their speeches highlighted the challenges being faced by automotive industry.
www.automark.pk | November-2017 | Page 49
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Monthly AutoMark International
Higher education Commission
HEC 15 Years Celebration at NED University (Regional Showcasing of Students Projects) NED University of Engineering and Technology was honorably bestowed the responsibility of hosting a Regional Showcasing Event in collaboration with HEC’s Regional Center on 27th September 2017, at Main Auditorium. The purpose of this showcasing event is to highlight the strong impact R&D activities bring about in Higher Education within Pakistan. The development of the society’s economy has been significantly impacted in the positive by these R&D activities at HEI’s. Higher education Commission since its establishment back in 2002 has achieved various milestones mainly it has strived to promote higher education in Pakistan through equitable access to quality education of international standard, technology readiness and ad van cement i n Rese ar ch and Development. With tremendous hard work during these fifteen years, HEI’s in Pakistan have attained excellence in leadership, governance and management. It was through the strengthening of Research, Innovation and Commercialization that a cultural transformation came into bei ng . The res ul ts led to t he implementation of a Modern University Management System. Vice chancellor of NED University of Engineering and Technology Dr. Sarosh H. Lodi welcomed Chief Guest , Guest of Honor, Vice chancellors ,faculty
members and students of prestigious universities of Karachi. Session was Chief Guested by Governor of Sindh Mohammad Zubair who highlighted the efforts taken by the government in the education sector in Sindh region. Guest of Honor of the ceremony , the Acting Executive director of Higher Education Commission of Pakistan Dr Raza Bhatti also mentioned that the today’s success of Higher Education Commission of Pakistan is the results of immense hard work practiced by all HEI’S during past fifteen years and the journey will be continue to pursue excellence in relevant fields. Dawood University of Engineering and Technology, Iqra University, Sir Syed
Univ ersi ty of Engineering and Technology, Sindh Madrassutul Islam University, Dadabhoy University, DHA Suffa University, Bahria University and NED University of Engineering and Technology, participated in the event and showcased more than one hundred and fifty projects in the exhibition. The event also marked the presence of high no. of representatives from industries including judges from PakChina Motors, Streit Pakistan Pvt. Ltd., Se nofe ng, and Phoe ni x Saf et y Consultants. The shortlisted projects will participate in the HEC celebration of 15 years completion in Islamabad representing their universities.
www.automark.pk | November-2017 | Page 50
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Auto electrician and retailers mini convention Faisalbad region by Exide
IP Chairman PAAPAM Mashood Ali Khan, during his last month in trip to Thailand visited and met Association Director Mr. Pattharapon Panyajaray and Trade & Exhibition representative and discussed areas of mutual cooperation
Lahore Main dealers get to-gather
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