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November-2018 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 11, Issue 11
Monthly
AUTOMARK Magazine International Editor-in-Chief
Technical Editor
Muhammed Hanif Memon
Muhammad Shahzad
Anwar Iqbal - Chief Correspondent COO, Khalid Mushtaq Motors (Pvt) Ltd.,
Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad
Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi
Engr. IHT Farooqui Chief Operating Officer Pak China Motors Karachi
Farhan Hafiz Director Marketing & Sales M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
Ghulam Faroq Executive Officer & Functional HeadSupply Chain Pak Suzuki Motors Karachi
Advertising Manager
Graphic Designer
Tahir Siddiqui
Salman Hanif
Circulation Manager
Web Master
Hasaan Mustafa
Mustafa Hanif Murtaza Hanif
Contributors in THIS EDITION Anwar Iqbal Aqsa Mirza M. Owais Khan M. Hanif Memon Ali Hassan Awais Khan
Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Mobile: 0321-2203815 E-mail: automarkpk@gmail.com website: www.automark.pk Whatsapp & Wchat : +92 321 2203815 AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada - L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management
Pakistan should have system of scrapping and recycling old vehicles Auto recycling is a common practice followed by the developed nations and is becoming increasingly popular in the developing nations as well. With rising concerns over global warming, countries are adopting various schemes to curb pollution by way of auto recycling. In fact, around 80 percent of a car can be recycled. Automobiles are the most recycled consumer product in the world today. Every year, around 30 million cars around the world are recovered for recycling. Over 25 million tons of heterogeneous material is recycled from old vehicles. India’s automobile industry has ushered in an explosive growth since 2000, with car ownership rising from 127 million to 204 million in 2015. According to an estimated average end of life deadline for a car is 10-15 years National Green Tribunal’s has rights to ban and deregister your car if it supersedes the 15-year mark. People in India have to follow a proper channel before scrapping and deregistering their old cars. First, they need to issue a letter to the RTO requesting that your vehicle is deregistered and then your car is scrapped to ensure that your vehicle or your registration isn’t used for nefarious or illegal purposes. The scrap dealer The auto sector of Pakistan has truly benefitted in the last five years, witnessing a phenomenal increase in sales that has invited fresh investments and expansion plans in the industry. Different international auto players like including Kia, Hyundai and SsangYong Motor Company, Germany’s Volkswagen, French carmaker Renault and Japan’s Nissan have all announced that they would assemble vehicles in the country. Pakistan’s auto industry is rising sharply but sadly unlike India and other countries, there is no such system of car scrapping and recycling. There is no such law introduced by the government and ministry to scrap the old cars as these are the major source of pollutant in the environment. Even today we see the decades-old, poorly conditioned and worn out cars running on the roads of Pakistan. In fact, some of the cars in Pakistan are imported from Japan and Europe and they need to be scrapped once they complete their suggested age limit. Similarly, many of these used and old cars emit high levels of pollution, which lead to negative health and environmental impacts linked to climate change and also respiratory conditions caused by breathing in pollution and particulate matter. Older cars are also more likely to fail safety standards and cause accidents. The government of Pakistan should take a strict step in this regard and introduce a legal system of car scrapping and deregistering to control the environmental hazards and recycle the auto parts and use them to recover steel and other useful products.
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Contents
November-2018
News / Event
Article / Review 23 26 30 34 40 41 43
CCP’s grilling of car makers fails to bring any relief for consumers Exclusive Report by Owais Khan
20 29
Bike users unhappy over heavy fines for not wearing helmets By Ali Hassan
33
Skoda is trying to enter in Pakistan’s Automobile arena Exclusive article by Anwar Iqbal
39
Suzuki to introduce locally assembled Alto 660cc variants in Pakistan by Aqsa Mirza
41
Master motors introduce Changan vehicles in Pakistan by Aqsa Mirza
44
Liaison with Embassy to invite Delegation in 12~14 April- PAPS 2019 Al-Futtaim awarded Greenfield investment status to manufacture Renault cars in Pakistan with investment of $300m by Hanif Memon
Inside
47
MAN Truck & Bus Customer Day 2018 Media Coverage by Automark Kumho Signs Technology Transfer Agreement with Century Engineering, Pakistani Manufacturer Arshad Gulraiz Butt Director Marketing of Phoenix Battery visit to different model shops in the country Corporate Meet Up in Karachi and Inauguration ceremonies of 3S dealerships across Pakisan Media Coverage by Automark Automotive Technican Training Programm by Prince Automobile
SOS TTI & Shell Tameer Programme Tools & Equipment Distribution Ceremony on 18th October 2018 Event Coverage by Mahboob Ur Rehman
Dice Energy & Water 2018 at Ned University - PR
News Updates 22 45 46 48
PM has approved the revival of Engineering Development Board (EDB) Local Automoitve News growth with new plant
Suzuki Ertiga ready for India launch
Automobiles get costlier as currency fluctuates
49
International Automotive News
53
Corporate News - Glimpses
55
Vehicles / Car Price List
57
Motorcycles Price LIst
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Exclusive Media Cover by Automark
MAN Truck & Bus Customer Day 2018
MAN Truck & Bus Customer Day2018 was held on September 29, 2018 at Local Hotel in Karachi. The highlight of the event was the induction of MAN Prime Mover in the liquid cargo segment. Asif Transport Company inducted six MAN Prime Movers in its fleet for Pakistan State Oil complying OGRA & ADR standards. There were more than 300 renowned customers from Liquid Cargo, Dry Cargo and some other institutions. The enthusiastic participation of customers in this event was a strong indicator of their Confidence & Trust in MAN. The event started off with welcome note, history and achievements of MAN by Mr. Imran Ghani Managing Director MAN Pakistan. Mr. Joerg Bauch (Areas Sales Manager
MTB Dubai) briefly told about the potential of Truck & Bus in Pakistan and the pragmatic solutions by MAN followed the product presentations of MAN Buses, MAN Trucks & MAN aftersales by Mr. Yaseen Hassan, Mr. Irfan Ali & Mr. Zulifqar Ali respectively. Chief Guest Mr. Ingolf Vogel (German Consular Economic and Political Affairs) appreciated the close working of German companies in Pakistan. Questions & Answers sessiongave an opportunity to the attendees to raise their queries which were duly answered satisfactorily by the expert MAN Team. An official from MIB Islamic (MCB Islamic) presented the financing solutions for MAN in light of the recently signed MoU with MAN Pakistan. Mr. Asif Jadoon was invited on stage where he expressed his gratitude and
Imran Ghani MD MAN Pakistan
The MD of MAN while talking to Automark said, MAN group is a part of Volkswagen company which is the largest commercial vehicle company in the world. MAN has a plan to enter Pakistan for a long-term and to set up an assembly line in Pakistan for commercial vehicles, he added. MAN group entered in Pakistan in 2008, It started with 01 employee and now it has150 employees working together to provide the cheapest yet best quality vehicles. We are selling cheapest trucks in the country and we have a data record to prove this fact. We also provide after sale services and maintenance as well. Our vehicles are compliant with the rules and regulations of OGRA.
satisfaction with MAN brand. Mr. Imran Ghani accompanied by Mr. Ingolf and Mr. Joerg Bauch presented the Truck Key to Mr. Asif Jadoon, followed by shield distribution session to current MAN fleet customer as a token of goodwill and acknowledgement for their continued confidence & trust in MAN. Later the guests were guided through the display area where two MAN trucks were exhibited. One was a TGS 33.360 6x4 Prime Mover with a 50K liters aluminumbowzermade by AUTOCOM which is first of its kind in Liquid Cargo Segment. The second one was a TGM 18.240 4x4 Fire Truck with factory fitted Crew Cab and superstructure made by MERAJ Limited.
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Monthly AutoMark International
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Monthly AutoMark International
Automotive News - Update
PM has approved the revival of Engineering Development Board (EDB) Auto industry welcome the decision of the PTI government The government of Pakistan Tehreeke-Insaf (PTI) has given the approval to revive the Engineering Development Board (EDB) by reversing the decision of the previous government which had closed the prime engineering board of the country. EDB, a wing of the industries ministry was shut down by the previous government in mid 2017 due to charges of corruption and malpractices. The shutdown decision was made in a meeting of the Cabinet Committee on Energy in 2017, which was chaired by former Prime Minister Nawaz Sharif. Ex-PM Nawaz Sharif gave approval for disbanding the EDB with immediate effect. During the energy committee meeting, he was informed that the EDB was not performing its duties and had failed to take appropriate steps to regulate and promote engineering
enterprises. He was told that EDB is creating hurdles in the way of investment of billions of dollars. Sources said new entrants in the green field area had reported to the PML-N government against the EDB for creating hurdles. The EDB also created problems in the implementation of Auto Development Policy 2016-2021 but later on government’s intervention the Board started favoring new players in the industry. The Pakistan Automotive Manufacturers Association (PAMA) through a letter had requested the government to review the decision of shutting down the EDB or announce its successor to take over the existing day to day affairs. In the letter written to the former Prime Minister of Pakistan Shahid Khaqan Abbasi, PAMA stated that the cabinet’s decision to dissolve the EDB will create
a vacuum as there is no mention of any successor to look after the ongoing affairs. The letter stated, “It has been the EDB, an arm of the Ministry of Industries, that provided support to the auto industry’s operations and also controlled and regulated the growth of the auto industry since the early nineties.’’ The cabinet was requested to review the decision regarding the closure of EDB as that step would adversely impact the industrial sector with damaging longterm consequences and collateral damage to the nascent national innovation campaign. It’s worth mentioning that the Engineering Development Board (EDB) is the only state-run organization on which the private sector has shown complete confidence.
Quarterly auto sales dismal as buying curbs on non-filers weigh Auto sales increased merely 1.14 percent to 51,221 units in the quarter ended September 30, 2018, against 50,640 units sold in the same period last year, as poor indicators and purchasing curb on non-filers dragged total volumes down. With the exception of passenger cars of 1000cc and above, all variants of cars, jeeps, tractors, pick-ups, trucks as well as motorcycles and three wheelers saw a decline in volumes during this period, as pe r P akis tan Automotive Manufacturers Association (PAMA) data released on Wednesday. A total of 26,650 cars of 1300cc or above category were sold in the quarter, up 9.5 percent against 24,343 units sold during the same period last year. Under the 1000cc category, a total of 12,718 units of Suzuki Cultus and Suzuki WagonR were sold in the quarter, up 16 percent against 10,970 units sold last year, PAMA data revealed.
An analyst said the increase in 1000cc cars was huge, as both WagonR and new variant of Cultus saw amazing success in the country during this period. “People like the new arrivals,” he said. “WagonR saw this increase, as it was mainly used in ride hailing services.” Analyst Syed Daniyal Adil at Topline Securities said, “We continue to expect significant demand contraction in auto sector du e to deteriorating macroeconomic environment, multiple prices hikes since December 2017, and impact of law requiring car purchasers to be tax filers.” Pointing to the expected rise in prices, he said, “Automobile prices are expected to rise further due to sharp rupee depreciation (eight percent) witnessed (on Tuesday). This further solidifies our stance on volumetric decline within auto sector as consumers’ affordability comes into question.” Sales of 800cc and below 1000cc cars,
Suzuki Mehran and Bolan, however, dropped 22.6 percent to 11,853 units from 15,327 units last year. A total of 2,005 buses and trucks were sold in July-September, down 18 percent against 2,446 units sold during the corresponding period last year. Farm tractors also saw a decline of 15 percent in sales to 13,731 units during this time, compared to 15,710 units during the same period last year. A total of 1,899 jeeps were sold during the quarter under review, down 33.7 percent against 2,863 units sold during the same period last year. Sale of pickups dropped to 5,231 units against 6,966 units sold during the same period last year. A total of 454,607 motorcycles and three wheelers were sold during JulySeptember FY19. The number is lower by 3.2 percent compared to 469,532 units sold during the same period in FY18, PAMA data showed.
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Exclusive Review by Owais Khan base on CCP Report
CCP’s grilling of car makers fails to bring any relief for consumers It seems that these types of reports are prepared just as a routine government’s office exercise and after few days or a month these reports on the auto sector disappear from the CCP website too
A mi d l i t t l e a p p r ec i a t i o n , t h e Competition Commission of Pakistan (CCP) has again grilled the car assemblers this time more harshly in its 32 page report based on the open hearing held in April 2018. The previous CCP reports on the auto sector based on consumers’ feedback and CCP’s own finding has failed to produce any desired results. It seems that these types of reports are prepared just as a routine government’s office exercise and after few days or a month these reports on the auto sector disappear from the CCP website too. One thing is certain that the CCP is aware of wrongdoings in the auto sector but it cannot bring any revolution. Some critics say that the CCP’s aim in preparing these reports is just to harass the assemblers which they later respond to these criticisms thus resulting in removal of report from CCP’s website. The government departments, who deal
with the auto sector, have not shown any interest to the CCP report. They do not move an inch to cross check the malpractices of the auto sector. It means that the whole exercise of CCP proves futile when other federal government departments either show lack of interest or are hesitant in cooperating with the CCP. Issues like long delivery times, prevalence of unofficial premiums to buy cars immediately, and lack of build quality and safety features in locally manufactured vehicles and frequent increase in prices are not new in these fresh and previous reports. These issues still exist with further deterioration as the auto sector continues to enjoy a free hand with a firm belief that no ministry can take them to task. The previous and current governments have never been able to check four to five times price hike made by the auto
assemblers every year blaming rupeedollar parity amid claims of higher localization. No ministry has ever checked about the slow pace of localization in decades old models which do not exist in the world but still rule the Pakistani roads. However, the new CCP report covering all concerns of the consumers has come under the PTI government with a hope that Prime Minister Imran Khan will take notice of the consumers’ grievances. Consumers hope that the government will seriously investigate over sky rocketing prices of locally assembled cars especially on those models which do not exist in the world and are being assembled with pride in Pakistan. The government should take action against Pak Suzuki Motor Company for keep rolling out 30 years old Suzuki Mehran, Ravi and Bolan which have no direct competition in the market. The prices of these vehicles continue to rise
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Automotive News - Update four times a year despite higher localization as claimed by its vendors and assembler. Consumers now pin hope that the CCP report under PTI government will bring results and the government would coordinate with relevant ministries to take up the matter seriously otherwise this CCP report would again prove a hollow exercise. According to CCP report, automobile manufacturers essentially assemble vehicles from parts sourced from within and outside the country. Manufacturers have achieved high percentage of locally sourced parts for high volume vehicle models, although precision parts and components (CKD) continue to be sourced from abroad. Indus Motor, Honda Atlas Motors, and Pak Suzuki claim that 60%, 68%, and 75% of parts for their Corolla, City and Mehran brands, respectively, are locally sourced. In the passenger car category subcompact, compact, jeeps, and SUVs are produced in the country. T axes are i mp o sed o n lo call y manufactured and imported Completely Built Unit (CBU) cars based on engine volume. As a result, automobiles, particularly in the passenger category, are popularly referred to in terms of engine capacity (800cc, 1,300cc, 1,600cc etc.). There are high import tariffs on new cars especially for 1,800cc and above. The government has just recently announced 50% reduction in duties on electric cars in both CBU and Completely Knocked Down (CKD) form. In 1985, the government introduced a Deletion Program for the auto industry in which local automobile manufacturers were to increasingly produce/source parts locally in exchange for protection from imports. To ensure compliance with WTO requirements this program was replaced in 2006 with a Tariff Based System which allowed assemblers to import non-localized parts on favorable duties. The automotive industry currently works on the pull model suited for markets with weak demand. Assemblers plan for and produce vehicles when they receive a confirmed order from customers. For the Japanese manufacturers, parts are ordered in a Just-in-Time model which helps in minimizing inventory pile up. Automobile dealers are essentially authorized agents of their principals and act as conduits between the assemblers
and customers. They are compensated by payment of p re- determi ned commissions. This model is increasingly becoming unsuitable for Pakistan due to higher demand for vehicles. A comparison with other countries clearly shows that prices of passenger cars in Pakistan are higher than other regional countries despite falling short in the overall features provided. Car prices by assemblers should not be increased on random basis, but in a more structured fashion such as in the beginning of a quarter. Across the world taxes are based on considerations such as carbon dioxide emission standards, whereas in Pakistan the same are applied on the cubic capacity of the engine. The tax structure should be modified as per European standards to encourage environment protect ion and lower fuel footprint/consumption. Each of the automobile assemblers has picked a particular segment of market for sale and continues to dominate it. The 800cc segment is dominated by Suzuki Pakistan, the 1,300cc by Toyota Indus Motors and the 1,600cc and above segment is split between Honda and Toyota. Owing to this market structure, automobile companies have not laid any emphasis on safety and value added featur es as are introduced internationally. Another symptom of this oligopolistic market is frequent increase in prices of cars across all segments of cars. The automobile assemblers have failed in implementing 'technology transfer' to the extent agreed upon with the Government of Pakistan at the time of launch of their businesses. Despite Pakistan being a signatory of the U.N charter of the car safety standards (UNECEWP 29), the local car assemblers have not introduced the compulsory safety features required by the charter, such as electronic stability control, frontal impact standard, pedestrian protection and airbags. Most of the models introduced in the local market are obsolete in the international market and lack the quality found in international models. For this reason, the local assemblers tirelessly lobby with the Government to increase taxes and maintain time limitation with respect to import of cars. Delivery of a booked vehicle from a local assembler usually takes up to six months, while cars are being hoarded
by investors that charge up to 300,000 extra for on-spot delivery. Exclusive dealers force customers to buy prepaid maintenance, insurance, extended warranty and registration from them which puts unnecessary burden on consumers. The prices of parts available with the authorized dealerships of the local assemblers are 200 to 300 per cent higher than those of parts available in open market, but the consumers opting for warranty have no option but to purchase the former at much higher prices or else their warranty is cancelled. Car manufacturers demand advance payments from customers which is a source of earning profits for the manufactures at the cost of customers. Car prices are rising due to the appreciation of the dollar rate. Although the provisional booking order allows a maximum of 5 per cent increase in price, it is only applicable in the event of any specification changes carried out in the vehicle ordered. The price increases carried out lately were imposed on the consumers when no value addition was made to the cars by the assemblers, and when the consumer could not cancel his/her order without significant financial loss. There is a problem with implementation of Automobile Development Policy 2016-21. Buyers have been unable to redeem KIBOR plus 2% on late delivery of vehicles and have not found any forum for redressal of this concern, owing to the absence of an overseeing authority in this regard. All over the world 25 years or older vehicles are classified as 'classic' cars. They are subjected to import tax not exceeding 5 per cent of the value declared by renowned vintage car clubs. In Pakistan the import of such cars is banned for no reason. Import of such cars can generate revenue of millions of dollars through employment in refurbishment activity and further export of such cars. Classic cars pose no threat to the local industry as it is a niche market. To curb the charge of premium on vehicles, a ban should be implemented on the ownership transfer of vehicle for a defined period of time from the date of first purchase. Premium charged by the investors and
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Monthly AutoMark International dealers on the sale of automobiles should be declared as criminal offense. The provision of partial payment facility for booking of vehicles encourages investors to book multiple cars and charge premium on them. Manufacturers are currently operating more than their capacities and are also investing in the capacity enhancement of their plants to meet the demand of automobiles. There should be mandatory policy on booking of cars through pay order from the customer’s own account rather than payment through third party to discourage premium money. Penalty should be imposed on the transfer of new cars if sold within 90 days of purchase. CCP believes that the following concerns can clearly be identified in the passenger car segment from the submissions made before and the concerns received by the Commission. a. Frequent and unjustified price increases by manufacturers b. Prevalence of premium (on money) for early delivery c. Excessively long delivery times for domestically assembled cars d.Low levels of localization of automotive precision parts e. Absence of consumer protection in the auto industry f. Substandard production, outdated car models, and lack of safety features g. Frequent changes in automobile taxation policy by the Federal Government. Inadequate incentives for fuel efficient hybrid or alternate fuel (electric) cars. These concerns can broadly be categorized into three major issues. The first relates to the inability of supply to meet existing demand in a timely manner. The second relates to the lack of a proper regulatory framework for safety and production standards, and consumer protection. The third relates to the prevalence of policy measures that do not sufficiently encourage innovation and growth. According to the government and industry estimates, Pakistan can become a 500,000 vehicle market by 2023-2025 out of which a majority will be passenger cars.7 To ac h i e v e t h es e n u mb e r s , au t o manufacturers will have to ramp up production quite significantly. Out of
the four existing players only Indus Motor and Atlas Honda have shown an indication to moderately (by 10-20%) increase their production capacities in 2018/2019. Indus Motor and Atlas Honda have both submitted that increasing capacity is a time and capital intensive process and investments take over one to two years to mature. While there have been efforts to marginally increase production in the past years, there is no indication that any of the existing manufacturers is considering a significant increase in production capacity in the next few years. The lack of any major expansion plans of existing incumbents is quite worrisome given the growing demand for cars. There is no doubt that a significant expansion will be costly and time consuming. Nevertheless, in a market that is slated to double in a few years, and in view of strong sales, there is plenty of incentive to make the investments. Currently one passenger car is produced for every 869 persons in the country. This ratio shows that there is great potential for development. The import of 65,000 to 70,000 used cars annually is further indication that there is adequate room for more local production. It is quite surprising thus that none of the manufacturers want to assemble and offer cars that can directly compete with the used cars being imported. The industry representatives explained that different cars have different levels of localization. For example, 60% of parts used by Indus Motors to produce the corolla are produced locally. For the Honda City, the extent of localization is 68%. Similarly, the localization for Suzuki Mehran stands around 75%. The contentions of the industry representatives are understandable. There is no denying the fact that the pace of localization of parts will depend on many factors including volumes of production, availability of finance, willingness of global partners to transfer technology, and the curtailment of counterfeit and smuggled goods. We also understand that some parts may never be produced in Pakistan as it will always be cheaper to import them from abroad, at least in the foreseeable future.
The ‘Regional Competitiveness Studies: Research Study on the Auto Sector’ is an excellent study on Pakistan’s automotive sector in relation to regional markets and talks extensively about issues related to part vendors. At the same time it is important to realize that Pakistani automotive part vendors have a lot of room to improve. Currently there are no tier 1 auto part vendors in the country who supply directly to regional or global OEMS. In order to develop the auto parts market, it is important that the government facilitate the availability of financing, encourage Research and Development (R&D), and curb sale of smuggled and counterfeit goods through the relevant law enforcement authorities. On the face of it, the price increases appear to be within or less than the degree expected due to the depreciation. However, as price is never only a function of cost, the actual ability of these manufacturers to raise prices essentially lies with their existing market power. In other words, these companies are able to raise prices comfortably without fear of losing market share as there is no sufficient competition in the market. This is likely to change if new players enter the market with vigorous business plans. Apart from the issue of raising prices, another complaint routinely received fr om con sumer s i s t hat these manufacturers apply these price changes even on those customers who have partially or fully paid in advance for their vehicles. Such consumers feel that they should be insulated from the increase. The Commission has been inundated with consumer complaints related to poor quality of vehicle production, high fuel consumption, lack of customer support in fixing new vehicle issues, delays in delivery, lack of safety features. Very often the problems encountered by consumers who have bought new cars encompass badly fitted or damaged car parts and the long process through which these problems are fixed. During the open hearing, participants frequently highlighted that they were unaware of the authority or organization mandated to resolve these issues. Given the nature of the complaints a look into the regulatory framework for this sector is important.
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Exclusive Article by Ali Hassan
Bike users unhappy over heavy fines for not wearing helmets Young Doctors Association of Pakistan is also going to the court in a bid to pressurize the local assemblers to fix wheel cover on both wheels to prevent children’s foot and ladies’ clothes entering into the wheels. Out of around 30 million two wheelers plying on the road some three million units came on during FY18. More than 70 per cent of bikes run on densely populated Punjab. In this scenario, the bike users as well as the dealers are now stunned over imposition of new rules by the Punjab government for bike users like making mandatory use of helmet and side view mirrors. As per media reports the Lahore High Court (LHC) has ordered compulsory driving license before registration of new purchase of two wheelers. Young Doctors Association of Pakistan is also going to the court in a bid to pressurize the local assemblers to fix wheel cover on both wheels to prevent children’s foot and ladies’ clothes entering into the wheels. They are demanding the assemblers to provide helmets to the buyers at the time of spot sales. Use of helmets all over the world is necessary for the safety of bike users but assemblers say that the way of its implementation in the country is bound to create problems for both the consumers as well as the assemblers. Chairman Association of Pakistan
Motorcycle Assemblers (APMA), Mohammad Sabir Sheikh said the traffic police recently kicked off a drive in the provincial capital by slapping heavy fines on motorcyclists for not wearing helmets. T raffi c wardens aft er intercepting bike riders made them stand in queues on the city roads for giving them fine tickets. Quoting a media report, he said the helmet rule was vigorously enforced on The Mall in Lahore, where motorcyclists without the safety gear were denied entry by the traffic police. As many as 32 points on The Mall the wardens were deployed with special instru ct ions to check ent ry of
motorcyclists without helmets, he said. As per traffic police figures, the wardens impo sed heavy fi nes on 5,315 motorcyclists on the first day of the crackdown, including 1,276 those who tried to enter The Mall without wearing helmet. More than 40 wardens were especially deployed on various city roads, in addition to regular ones to make the campaign successful. In the later phase the scheme would be replicated on five other major arteries of the city banning entry of motorcyclists without helmets, Sabir said quoting media reports. The campaign was launched after the traffic police got court directions to check traffic violations by motorcyclists without helmets, resulting in fatal accidents in the city. From 2013 to 2018 as many as 70,000 newly registered motorbikes, 520,000 cars and 207,000 motorcycle rickshaws started using the city’s roads, further aggravating the traffic situation in Lahore. Nearly 6,000 traffic accidents were taking place daily in the city, particularly involving motorbikes, claiming lives of many road users and leaving many
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Monthly AutoMark International
others disabled for life. The campaign was launched with a view to bring the toll down by declaring the use of helmets for motorcyclists mandatory. For the purpose, a summary requiring legislation and increase in fine amount had been moved by the traffic police to
activity for plastic hard hats sellers who were seen demanding up to Rs 400. During the drive, the traffic police issued fines worth Rs 1,000-2,000 on bike owners without helmets. According a media report, in one instance, a man was so enraged after being fined that not only did he give the traffic warden
He said the government is not realizing that a number of students, low paid employees in private sector and low grade government employees use bikes and any additional burden would badly affect their daily budget. Sabir said bike users themselves fix safe guard on the front of the bikes and rear
the inspector general of Punjab police through the Lahore capital city police officer for approval of the provincial assembly. Lahore Chief Traffic Officer (CTO) retired Capt Liaqat Ali Malik proposed that fine for motorcyclists should be increased from Rs 200 to Rs 1,000 and for cars and jeeps from Rs 500 to Rs 2,000. Due to increase in price of helmets to Rs 1,500 from Rs 500, many bikers were spotted wearing hard hats, plastic cartons and other paraphernalia to avoid being fined by the traffic police. Headgear demand also created business
a piece of his mind, but also chose to tear apart his own clothes. Further, the man threatened to commit suicide by jumping into a canal, saying he is a poor person and cannot possibly afford the fine. In a separate yet similar incident, a man set his motorcycle on fire when he was fined Rs 2,000. As a result, traffic wardens have started filming violators and sharing the footage on social media. However, Sabir said heavy fine amount would hit the motorcyclists thus putting additional burden on them financially as bike is considered as an economical mode of transport.
guard on the back of the bikes including ladies footrest plates. This advice is mainly for the family users of bikes. Another option is to fix safety grill on both sides of back wheel which will prevent children feet and ladies fabric into the tyres. He said out of three million on the road – some 50 per cent of bike owners do not wear helmets due to various reasons in which one of them was heat from 11 a.m. till sunset. Besides, carrying a helmet is also a problem as bikers do not want to put the helmet on bikes in fear of its stealing even it is locked. After a sudden imposition of compulsory
Sabir said the government is not realizing that a number of students, low paid employees in private sector and low grade government employees use bikes and any additional burden would badly affect their daily budget. He said that bike users themselves fix safe guard on the front of the bikes and rear guard on the back of the bikes including ladies footrest plates. This advice is mainly for the family users of bikes. www.automark.pk | November-2018 | Page 27
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Continued from Previous page wearing of helmet, the market does not have sizable stocks. As a result, buyers throng to the markets in larger number especially in Punjab thus creating shortage of helmets and leading to price escalation by up to 300 per cent. After two decades – a friendly government has taken control of the country. When the government has sought six to two years time to change the system then why six months time have not been given to the bike owners to buy a helmet and get a license from the licensing authorities of all the provinces. APMA Chief urged the government to extend the time of purchasing helmets and getting license up to March 31, 2019. In this connection, the government should give advertisement in the print media forcing consumers to comply with the government’s deadline. This would discourage black marketing of helmets besides curtailing harassment to the consumers by the Police. In the last six months sales of many assemblers have been depressed and after implementation of the above steps the market would further face drop in sales, he said. Immediate and anti consumers’ actions have so far brought a bad name for the government in public as the government should improve the system step by step rather than giving a straight jerk to the consumers who are already hard pressed after gas and power tariff hike, rising petroleum products followed by rupee devaluation against the dollar that has f ueled food inflati on, he said. Sabir said “the government should take step for the long run instead of any short term measures other it will prove d isastrous for t he end users. ” He suggested the government to take some measures like compulsory registration of all bike dealers and retailers in the Sales Tax Department of the Federal Board of Revenue, issuance of VIP cards to the regular tax payers (income tax and sales tax), fixation of age limit of bikes, restriction on running bikes on open letter, issuance of number
plats by excise and taxation departments of all the provinces, uniform taxation on two wheeler industry etc. The Engineering Development Board (EDB) has approved 124 assemblers in the last 15 years but only 40 units are in operation while others are either struggling for their survival or closed down after failing to face stiff competition in the market.
The government, he said, has not provided any incentives or new policy to the two wheeler segment as compared to four wheelers’ Auto Policy 20162021. Uniform taxation and incentives can revive the ailing units which would boost production, government’s revenue and open new jobs, he said. Bike assemblers have a total installed capacity of five to six million units per annum but the production for the last two fiscal years has remained static at 2.7 million units every year. Surprisingly, Pakistan with a population of over 200 million has 124 bike assemblers including three Japanese giants like Honda, Yamaha and Suzuki. Yamaha and Suzuki do not produce 70cc bikes while majority of assemblers mainly Honda produce 70cc bikes. Market is abuzz with reports that the government has given a go ahead signal to more than 20 assemblers in the last two years without realizing that existing assemblers have failed to produce bikes as per their plant capacities. The previous governments were also responsible in creating a mess as they allowed permission to huge number of assemblers whose capacity was just 1,200-8,000 units per annum. These assemblers were previously involved in other business and after making profit they entered into assembly of bikes without any experience and technical expertise. The result came in closure of
Monthly AutoMark International many units due to their lack of experience in running business in crisis, low profit margin and soaring competition. Influx of investors in two wheeler segment may have provided relief to those consumers due to low bike prices but assemblers’ focus had remained on 70cc instead of complete change in 70cc model. The Chinese 70cc is the exact replica of market leader Honda CD70cc. However, a vast difference exists in quality and prices between Chinese and Japanese 70cc. The Ministry of Industries should scrutinize to ascertain the actual reason whether the assemblers had deliberately closed down their units or they actually faced tough time in running their units. Sabir was of the view that 16 units in Karachi and Hyderabad are shut down followed by over 30 units in Punjab, seven in KPK and two in Azad Kashmir, leading to massive unemployment. Under current circumstances, the government should avoid allowing new assemblers as only 10 assemblers are really enjoying good sales. Valuation on import of parts by assemblers is higher than the valuation for import by commercial importers, resulting in increase in smuggling of bike parts from China. Smuggling of parts has surged manifold as a number of assemblers are using smuggled parts in bike assembling, Sabir claimed. Higher valuation of parts for assembling units has pushed up cost of Chinese assembled bikes by Rs 3,000-6,000. This is the main reason of shifting assemblers towards using of smuggled parts, he said. However, the issue of not wearing helmet has not yet started in Karachi so far but some traffic officials are seen taking to the task bike owners for not wearing helmets.In case the campaign in Karachi is launched aggressively then the prices of helmets will come under pressure at it was happened in the past but after few days the campaign was suspended.
From 2013 to 2018 as many as 70,000 newly registered motorbikes, 520,000 cars and 207,000 motorcycle rickshaws started using the city’s roads, further aggravating the traffic situation in Lahore. Nearly 6,000 traffic accidents were taking place daily in the city, particularly involving motorbikes, claiming lives of many road users and leaving many others disabled for life www.automark.pk | November-2018 | Page 28
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New Investment in automotive sector - Update
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Kumho Signs Technology Transfer Agreement with Century Engineering, Pakistani Manufacturer Kumho Tire Co. signed an agreement t o transfer its tire manufacturing technology to Century Engineering Industries of Pakistan. K u mh o ca l l e d t h e ag r e e me n t “monumental” for South Korea’s tire industry because it allows Kumho to enter into a developing country’s market. Under the 10-year agreement, Kumho will provide its technology to Century which also includes Kumho’s resources on design to quality control as well as education and problem-solving skills related to running a tire manufacturing business. Under the contract, Kumho will receive $5 million along with 2.5% of Century’s annual sales in royalties. A total of 28 tire products for passenger and commercial vehicles are subject to the deal, which will be renewable for another five years upon expiration. Century, a Pakistani-based battery manufacturer, has been committed to expanding its business portfolio by building a tire manufacturing line in Pakistan since May 2017. After Century’s r ese ar ch on g lo b al sc al e t i r e manufacturers, Century approached Kumho about its global business and technology with the hope of partnering with the tiremaker. Kumho said Century will improve upon Pakistan’s limited infrastructure for tire manufacturing by investing in a tire plant with hopes to expand its business in the automotive industry. Century forecasts it will manufacture a million tires per year and eventually aims to grow its annual capacity to 5 million units. “Kumho has enjoyed a good reputation as a technology powerhouse. The deal will eliminate concerns caused by some issues over the years such as its acquisition by Double star and prove
Kumho Tire CEO Kim Jong-Ho (Right) shakes hands with Century Engineering CEO Jawed Iqbal Siddique (Left) after signing a 10-year technology transfer agreement in Seoul, Korea on Sep 27, 2018
that Kumho’s quality and technology remain intact,” said Kim Jong-ho, CEO of Kumho Tire. “We will leverage this deal as a starting point to establish technology the transfer as a new revenue source and develop a variety of business models that build on our expertise in tire manufacturing in order to further enhance our business.” Pakistan’s battery market saw a phenomenal growth during last decade, as the long hours of electricity blackouts compelled people to use available SLI batteries in their home and office Uninterrupted power supplies (UPS). SLI
batteries are designed to provide high voltage current required at start an automobile for few seconds then they need to be charged. If exposed to long use- more than 40 percent of their total capacity-the thin lead plates start to break, making battery unusable. The disposable units are hard to repair. After the gradual increase in electricity production in recent years and availability of thick lead plate- long lasting – deep cycle batteries for solar and UPS use- the SLI batteries were restricted to automobile use mainly. Cutthroat competition, availability of modern alternate secondary storage units and improved regulations were other reason to seek diversification for the relatively new company. With robust network of existing battery sales force, the company is not eyeing new car entrants only but Suzuki, Honda and Toyota also in coming years, due to increasing bad quality perception of their existing vendor. Century is already supplying Phoenix batteries to Pak Suzuki Motors, Ghandhara Nissan cars and trucks, Al-Ghazi Tractors and Sazgar Rikshaw.
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Exclusive Article by Anwar Iqbal
SKODA IS TRYING TO ENTER IN PAKISTAN’S AUTOMOBILE ARENA In 2015, new Škoda chairman Bernhard Maier stated that the VW Group "is working on a modular, new electric platform and we are in the team", and that "there is no alternative to electrification." New Škoda corporate "Strategy 2025", which replaces the previous "Strategy 2018", aims to start production of a fully electric vehicle in 2020.
Haroon Industries Ltd, Became the sole distributor of SKODA in 1970 After a great success in India SKODA a European auto giant belongs to Czech Republic and now owned by Wolks Wagon Group is looking at Pakistan as a potential market. In the past Skoda entered two times in Pakistan market in mid 60’s and early 70’s. However Skoda could not make a firm position / reputation in Pakistan. In early 70’s Haroon Industries Ltd., became the sole distributor of SKODA cars in Pakistan. Haroon Industries was already an automobile industry giant in Pakistan at that time. They made plan to assemble SKODA vehicles in Pakistan, as a first step theystarted to develop a jeep of its own with the collaboration
of SKODA Motors. It was named SKOPAK. The prototype had been made, production was about to be started soon but in 1971 all the industries were nationalized and SKOPAK jeep project was died forever. On the other hand entry of Skoda in India was a big success,In 1996. A relatively unknown company to common Indian peoples in the middle of Czechoslovakia (now Czech and Slovak) took the bold decision of entering the Indian market. While their decision was "bold", what also made it something worth pondering over was its ability to build a new product. Skoda did a due deliberation of entering the Indian market with its all new Skoda Octavia (A4). They were looking at local assembly of the car. Initially they tried to enter in JV with a North India based Automotive group, but failed to do so as the 2 partners couldn't agree on the terms. Also quality levels that the VW group demanded couldn't be met by most of the ancilliary and accessory manufacturers within India. This delayed the Skoda Octavia's launch for another 5 years, even then it was launched as SKD. Late 2001, Skoda India launched the Skoda Octavia in the Ambiente trim in 2 engine versions. 1.9TDi and 2.0 MPFi. The 1.9 TDiengined Octavia to date is its largest selling car in the country and at one point in time constituted 95% of all Skoda Octavias sold in India. The 2.0 MPFi alas hasn't managed to make a mark in its segment. The initial response to the car had been fabulous. Starting off with nearly 300 cars a month, Skoda today sells more than 1000 cars on an average every month. This has been possible through the constant expansion of its dealer network and improvement in services, coupled with product
This Advertisement is Published in English Daily DAWN Karachi on 8th March, 1964 variants such as the Elegance, the L&K, the Rider and the RS, all launched with a span of the last two years. Today Skoda Auto India not only sells the Octavia, but has also launched the Skoda Superb, a D-segment luxury sedan with a 3.0 litre 190 bhp Petrol engine. Also since its launch, Skoda has shifted from being an SKD assembler to a CKD assembler since early 2003 and the Octavia today used 40% local content, testament to the fact that Indian suppliers have come a long way in terms of quality and delivery since 1996. Skoda, along with Mercedes and Peugeot, is one of the oldest car manufacturers in the world. Skoda has
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Monthly AutoMark International
its origins in the Czech city of MladáBoleslav, where Vaclav Laurin and Vaclav Klement set up a bicycle factory in 1895. Ten years later they started production of a revolutionary mode of transport: the car. After World War I the Laurin & KlementCompany began producing trucks, but in 1924, after running into problems and being affected by a fire on their premises, the company sought a new partner. As a result in 1925 the company was taken over by Skoda Pilsen, a huge engineering and manufacturing firm whose output included weapons, a munitions, locomotives, ships and machine parts. Škoda introduced a new line of cars in the 1930s which significantly differed from its previous products. A new design of chassis with backbone tube and allaround independent suspension was developed. While in 1933 Škoda had a 14% share of the Czechoslovak car market and occupied third place behind Praga and Tatra, the new system and development made it a market leader by 1936, with a 39% share in 1938. During the occupation of Czechoslovakia
in World War II the Škoda Works were turned into aparts components factory for military terrain vehicles, military planes, other weapon components and cartridge cases. The UK and US air forces bombed the Škoda works repeatedly between 1940 and 1945. The final massive air raid took place on 25 April 1945 and resulted in almost the complete destruction of the Škoda armament works and about 1,000 dead or injured. After world war II, by July 1945, the MladáBoleslav factory had been reconstructed, production of Škoda's first post-World War II car, the 1101 series began. It was essentially an updated version of the pre-World War II Škoda Popular. In the autumn of 1948, Škoda (along with all other large manufacturers) became part of the communist planned economy, which meant it was separated from the parent company, Škoda Works. In spite of unfavorable political conditions and lo s i n g c on t a ct w i t h t e ch n i cal development in non-communist countries, Škoda retained a good reputation until the 1960s, producing models such as the Škoda 440 Spartak,
445 Octavia, Felicia and Škoda 1000 MB. In the Cold War years the company operated under difficult circumstances; productivity was low as were the state investments needed to enable it to compete with Western European car manufacturers. Despite this, Skoda produced cars of relatively high technical quality, certainly as compared to other Eastern European carmakers such as Lada, Trabant and Wartburg. Whilst generating significant income for the state, there was no way Skoda could keep up with the competition from the West, where the rigors of the market ensured a constant drive towards
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Monthly AutoMark International innovation and efficiency. Eastern European cars, with their flimsy and often faulty parts, their unfashionable image and their engines and propulsion systems in the back, became a bit of a joke in the West. In the 1980s the absence of fresh state investments, an outdated management style and the fact that the 25-year-old engine no longer met the new European emission requirements brought Skoda to the brink of bankruptcy. The historic collapse of the communist block in 1989 can be considered Skoda’s salvation. One of the first decisions taken by the new government was to gradually privatize the carmaker. Renowned Western carmakers showed a surprising degree of interest in taking over the ailing Czech company, with BMW, GM, Renault, Volvo, VW, Ford, Fiat being but a few of the big names to step forward. This interest lay largely in the fact that Western carmakers saw this as an opportunity for expanding their market into Eastern Europe using Skoda as a bridgehead. But it also shows that Skoda was recognized as a relatively successful company, with a long tradition in car manufacturing. A carmaker with potential. In 1991, VW won the tender by being the candidate best able to make this latter point in its offer, as well as by showing respect for the prevailing economic circumstances in the Czech Republic. Skoda would continue to exist as a brand and the company was incorporated as a full member of the VW Group, which also comprises Audi and Seat, with its own R&D division and sales and purchasing departments.VW acquired 31 per cent of the shares, while the Czech state retained 69 per cent. VW was eventually to acquire all the shares, with the Czech government continuing to be represented on the Skoda board. However, it was also VW’s tremendously ambitious plans for the new Skoda that made the government’s choice an easy one. In 1991 Skoda was selling cars in 30 countries; in 2013 this had risen to over 100. Skoda has more than 10 models in production and is one of the few manufacturers with the ability to deliver a ‘customer-built’ car to the dealer within four weeks. Now Skoda Auto Group develops cars in the Czech Republic and in India and manufactures them in countries including China, Russia,
Slovakia, Ukraine and Kazakhstan. It employs 28,000 people around the world. In 2015, new Škoda chairman Bernhard Maier stated that the Volkswagen Group "is working on a modular, new electric platform and we are in the team", and that "there is no alternative to electrification." New Škoda corporate "Strategy 2025", which replaces the previous "Strategy 2018", aims to start production of a fully electric vehicle in 2020. Škoda announced a plan to produce five electric models across different segments by 2025. In 2017 Auto Shanghai, Škoda displayed its Vision E concept for an electric 300bhp coupé-SUV, with level 3 autonomycapability and 500 kilometers (310 mi) range that is planned to be on sale from 2020, and is based on the
Volkswagen Group MEB platform. Škoda Auto will also manufacture electric-vehicle batteries for the Volkswagen Group in its facility in the Czech Republic. A plug-in hybrid version of Superb and a small SUV model Vision X with a natural gas-electric hybrid powertrain developed by Škoda are to be available from 2019 and a hybrid Fabia from 2020. By March 2018, the electrification plan was expanded to ten electrified models for 2025: six fully electric cars and four plugin-hybrids. Out of these, five models are to be available by 2020. A fully electric version of ŠkodaCitigo is to be available from 2019. In 2018, the brand launched its largest-ever investment plan of €2 bilion over five years into its electrification.
The Author of this article Mr. Anwar Iqbal visited Skoda car plant in Mlada, Czech Republic in 2008. This picture was taken during the visit of Skoda museum established in the original production halls in which the company manufactured cars until 1928
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Dealership Visits Glimpse
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Arshad Gulraiz Butt Director Marketing of Phoenix Battery visit to different model shops in the country
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Automotive News - Update
Suzuki to introduce locally assembled Alto 660cc variants in Pakistan
Suzuki is all set to launch a new Alto 660cc in Pakistan. According to our sources, the car is expected to be on sale in the first quarter of the fiscal year 2019-20. Suzuki Alto will be available in three variants similar to VX, VXR (manual variant) and automatic variant. Both the manual and auto variant will come with a power steering. The anticipated price of Suzuki Alto will be around PKR 9 to 10 lacs; a manual model will be around PKR 900,000 and the top auto variant will be priced around Rs 10+ Lacs. Su z u ki A lt o wi ll be a l ocal ly manufactured/assembled hatchback. As per our sources initially, 40% of its parts will be produce by local vendors and variants will assemble at assembly plant
in Karachi. With the passage of time localized of parts will be increased. It’s a 8th Generation engine car which has fuel consumption around 20+ KM. The 660cc engine will be imported, but the transmission has been manufactured locally. Some people believe that Suzuki Alto will be an alternative to Suzuki Mehran which is literally not the case as Alto has been recently developed on latest Japanese technology, unlike 30 years
old Mehran which has been decided to be discontinued at the end of this year. According to Automark sources, Pak Suzuki has already assembled this car in Pakistan and three units of the car has been sent to Japan for testing and approval by Japanese engineers. Furthermore, Suzuki Pakistan has asked its vendors to stop the manufacturing of parts according to the company’s production plan for Mehran. After Mehran, Suzuki will be missing out its all-time top seller hatchback in Pakistan. To fill the vacuum, Suzuki Pakistan has decided to introduce new Alto 2019 with advanced features and latest technology.
Ready for departure at Karachi Airport to Japan for testing and approval www.automark.pk | November-2018 | Page 34
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JwForland networking activities
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Corporate Meet Up in Karachi and Inauguration ceremonies of 3S dealerships across Pakisan
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Report by Aqsa Mirza
Master motors introduce Changan vehicles in Pakistan Master Motors Ltd (MMC), in a joint venture partnership with Changan International, China’s top automobile maker, has officially launched a range of light commercial vehicles (LCVs) at their first authorised dealership at Bilal Automobiles in Lahore. The light vehicles include M9, a pick-up and a 7seater passenger van. The statement said Changan Bilal Automobiles, has initially put on sale Changan M9, a pick-up, and Changan Karavan, a passenger van. The statement said that with an ex-factory price tag of Rs919,000, Changan M9 is a 9×5 foot 1-ton pick-up with a class-leading C10 gasoline engine having 1000 cc 16-valve
dual overhead cam (DOHC). Similarly, Changan Karavan is a middle-sized, 7seater van which has 1000 cc powerful C10 engine and AC is present. It comes with a price tag of Rs999,000. Changan is a famous automobile producing brand in China known for making SUVs, small vehicles and cars. The company offers a wide range of vehicles including CS arrangement SUV, Raeton arrangement, Eado arrangement, and Alsvin arrangement; and Oushang, Honor, and Eulove MPV items. Bot h t he comp ani es, Chang an Automobile and Master Motors Corporation, signed an official
agreement on 29th June at Pearl Continental, Karachi. MMCL already purchased a land for an assembly plant in Karachi and Master Motors already stared of constructions of an assembly plant in Karachi. After ground breaking ceremony in March-2018. In the first phase, they have introduce Pickup and passengers’ van and provides after sales services as well. Their target market will be middle and higher income group. The car enthusiasts and deals have shown a great interest in both the vehicles and said they are satisfied over the design and prices of these vehicles.
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Media Coverage - Update
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Automotive Technican Training Programm by Prince Automobile
Road Prince - Product Launch Event
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Automotive News - Update
Liaison with Embassy to invite Delegation in 12~14 April- PAPS 2019
On 18 Oct , at Islamabad Embassy of The Republic of Turkey representative Mr. Demir Ahmet Sahin/ Commercial Counsellor
The Pakistan Association of Automotive Parts & Accessories met with the Embassies in Pakistan to start marketing and finding ways to create synergy between Countries with high end technologies to come to Pakistan and develop partnerships. Mr. Mashood Ali Khan has always considered the diplomatic offices to be a key resource in building the trust between countries and were the right link between the industries. We need to make things happen, and we start with foreign representatives present in this country. The former Chairman and head of the Auto Show scheduled to be held in Karachi in April 2019. Following were the members met TURKEY Embassy, KINGDOM OF THE NETHERLANDS, EMBASSY OF JAPAN, EMBASSY OF THE REPUBLIC OF INDONESIA, EMBASSY OF RUSSIA (TRADE REPRESENTATION OF THE RUSSIAN
At Indonesian Embassy Mr. Wisnu Suryo Hutomo, Minister Counsellor
Mr Philippe FOUET/ Head of the Economic Department Embassy of France
At Embassy of Japan, Mr. Yuji Tokita, Counsellor, Mr. AkinobuKuwamura, First Secretary
FEDERATION IN THE ISLAMIC REPUBLIC OF PAKISTAN, EMBASSY OF FRANCE IN PAKISTAN, All these meetings were centrally focused on foreign participation in PAPS 2019, Technology upgradation through JOINT V E N T U R ES & T E C H N O L O G Y COLLABORA TIO NS. Machinery makers, consultants, can make it big in this market. This will include partners for DDI Domestic Direct Investment. Also inviting RAW MATERIAL sources that provide auto grade in steel, PVC, Chemicals and rubber segments. Mr. Mashood emphasized on Assistance from the Embassy in creating liaison with relevant Associations & Business Sectors in the country, So Delegates/ Representatives can visit the exhibition. He also confiremd that the association can provide B2B meetings, visits of Factories, Assurance of business assessment opportunities.
Trade Representative of the Russian Federation Mr Petr V Kiselev / Consultant
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Investment in Auto Sector of Pakistan - Report
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Al-Futtaim awarded Greenfield investment status to manufacture Renault cars in Pakistan with investment of $300m
Ministry of Industries and Production (MoI&P) has awarded Greenfield investment status to Al-Futtaim to assemble Renault cars in Pakistan under automotive development policy 201621. Al-Futtaim Group is a joint venture with French car maker, Renault to run business in Pakistan. Greenfield investment is defined as the installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles of a make n o t a l r e ad y b e i n g a s se m b l e d /manufactured in Pakistan. Following the decision of Economic’s Coordination Committee’s of March 18, 2016, on Automotive Development Policy 2016-21, the government has given “Category A Greenfield Investment Status” to Al-Futtaim Automotive Limited for assembly and manufacturing of vehicles. In this regard, an agreement was also signed between the firm and the principal i.e Renault as per the
following conditions: • Al-Futtaim Automotive will strictly follow the conditions mentioned in the Notifications No. 2(9)/2013-LED-II, 2ndJune, 2016. • The company would enter into the agreement with the Ministry of Industries and Production to ensure compliance with the conditions of the ADP 2016-21, SRO 656(1)/2006. • EDB will issue the certificates only after confirming the assembly facilities established by the company are adequate to produce quality vehicles. As per sources company is willing to localize while maintains European standards from start of production and that is a unique factor when compared to other new entrants under new auto policy 2016-21, while Al-Futtaim hired very extensive background, local and international experience professional staff. French carmaker Renault will start vehicle production in Pakistan in 2020
with the partnership with the Al-Futtaim Group of UAE. For setting up an automobile assembly plant, the company has acquired 56 acres of land in the Faisalabad Industrial Zone M3. The plant will have installed capacity of 50,000 vehicles per year and initially, the company may roll out five vehicle variants. In November 2017, Renault and AlFuttaim officially declared that they have signed definitive agreements for the exclusive assembly and distribution of Renault branded vehicles in Pakistan. The company has reportedly inked a direct investment agreement worth $300 million to construct an automobile manufacturing plant in M3 Industrial Area Faisalabad, instead of Karachi. According to sources, company did not purchase land at discounted price as media keep reporting that “ Government of Punjab is offered cheaper land to French automaker to establish its plant in the province.”
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Entrepreneurs Event Coverage Mahboob Ur Rehman
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SOS TTI & Shell Tameer Programme Tools & Equipment Distribution Ceremony on 18th October 2018 18th October 2018 is a great day for girls, entrepreneurs of unprivileged area Rehrrig oath, Ali goath, Muzaffarabad colony, Cattle colony and surrounding areas because:SOS Technical Training Institute Had arranged a girl’s entrepreneur training program with the collaboration of Shell Tameer Programmeand after the successful training, Chief Guest Mr.Habib Haider, Country External Relation Manager, Shell Pakistan Limited Handed over Tools and equipment to the girls entrepreneurs as per their business plans. Principal SOS Technical Training Institute Commodore ® KhalidWaseem,welcomed the Chief Guest Mr.Habib Haider, Country External Relation Manager, Shell Pakistan Limited. Mu rt az a Mandv iwalla - CEO Mandviwalla Motors Pvt Ltd, Chairman SOSTTI Mr. Sanaullah Qureshi, COChairman SOSTTI Mr. Yacoobali
Chief Guest Mr.Habib Haider, Country External Relation Manager, Shell Pakistan Limited, awarding certificates of success to a girl entrepreneur Zamindar were present at the ceremony and distributed/handed over Tools and equipment to all passed out girls entrepreneurs. Chief Guest Mr.Habib Haider, Country
External Relation Manager, Shell Pakistan Limited appreciated the girls, entrepreneurs on their achievement and prey for their business success.
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Automotive News - Update
Ghandhara Nissan reports 91% surge in profit Ghandhara Nissan registered a profit of Rs1.35 billion in fiscal year 2017-18, up 91% from earnings of Rs0.7 billion in the previous year, according to a notice sent to the Pakistan Stock Exchange (PSX) on Wednesday. The profit went up significantly despite a decrease in revenues of the automobile manufacturer. Earnings per share (EPS) soared to Rs29.92 compared to last year’s EPS of Rs15.96, showcasing an increase of 87.5%. The better result has been mainly due to higher other income, which jumped to Rs861 million from Rs26 million last year. The company is reviving its idle manufacturing plant after receiving Brownfield investment status from the government in the aftermath of the Auto Development Policy 2016-21. Under the Brownfield category, Ghandhara Nissan will be allowed to import auto parts at lower rates of customs duty for three years. Earlier this year, the company disclosed its renewed collaboration with Japanese Nissan Motor Company for assembling Datsun cars by next year. Its capacity is expected to be 30,000 units. The company launched X200 pickup in April this year with a capacity of 5,000 units per annum on a single-shift basis. Revenues of the company dropped 24%
from Rs6.5 billion last year to Rs4.9 billion this year. Gross profit dipped considerably by 35% from Rs1.21 billion to Rs778 million. Ghandhara Nissan was set up on August 8, 1981 in Pakistan as a private limited company and was later converted into a public limited company on May 24, 1992. It started vehicle production in December 1996, but after about 14 years, production activities came to a halt. Its car assembly plant has remained inactive since 2010. In October last year, a Ghandhara Nissan delegation visited the Board of Investment (BoI) to meet its officials and discuss the possibility of reviving the company’s assembly plant under the new incentive-filled auto policy. A presentation was given to the BoI secretary on the manufacturing of Datsun cars in Pakistan by injecting a fresh investment of Rs4.5 billion in the first four years of operation. The project is expected to create 1,810 new jobs. The company will resume vehicle assembly with the purchase of auto parts and technical assistance from Japan’s Nissan Motor Company. Nissan currently manufactures vehicles in 20 countries around the world including Japan...
HACPL recalls for immediate replacement of Takata front airbag inflators Honda Atlas Cars Pakistan Limited (HACPL) has announced the range of Honda vehicles in Pakistan which require replacement of Takata front airbag inflators. HACPL strongly encourages its customers for immediate replacement of front airbag inflator at its authorized dealerships as a precautionary measure to ensure safety for its customers. The Takata front airbag inflator (in specified models) may have a probability of malfunctioning if deployed, which can result in a safety risk to vehicle occupants. The company is offering its consumers
free replacement of airbag inflators. Customers can visit nearest Honda authorized dealerships for free replacement/checkup of airbag inflators. HACPL has already sent SMS and direct notification letters to the affected car owners , urging them to contact any authorized Honda dealer nationwide to schedule an appointment or contact Honda Customer care at 0300-8402509 for a free replacement of the affected parts. The replacement of the affected airbag inflator under this campaign will be done free of charge and will require approximately an hour.
Rupee Depreciation; IMC Increases Car Prices After assessing the situation, IMC on last month has announced revised prices for vehicles on which bookings will resume from 17th October. Customers who have paid full payment for orders of Oct / Nov will get cars on same prices as company will absorb the added cost. However, customers who have made partial payments for Oct / Nov / Dec will have to give 50% of added cost. The statement said, “The recent depreciation in Pak Rupee’s value against dollar has resulted in substantial cost increase on account of C&F, Government Duties & Taxes, imported components and raw materials for local parts. It is extremely difficult for IMC to hold the current retail selling prices and therefore we are compelled to pass on a part of this exchange impact to the market.” For November to December, Corolla Prices have increased in the range of PKR 50,000 to 100,000 and the prices of IMV variants have been increased in the range of PKR 125,000 and 175,000. - PR
Atlas Honda launches 2019 CD-70 Dream with a brand new sticker! Once again, keeping its legacy of introducing bikes with a new sticker, Atlas Honda has launched 2019 CD-70 Dream with a brand new multi-colored sticker on with three different body colors; Black – Red - Silver It is to be noted here that as always, the company has not changed a single bolt in the machine and shipped the bike with only the change of sticker– a fact, which we are covering since the launch of every Honda bike. Honda CD-70 Dream has 70cc 4-Stroke OHC Air-Cooled engine same as its CD70 counterpart. However, the sticker is going to cost you extra money. The company on October 3rd 2018 bumped the price of the bike as well by PKR 1,000. The new price of the bike is PKR 69,900 (previously it was PKR 68,900). Without any major upgradation in its bike lineup, the sales of the company are still going strong, and in the last three months, it sold 266,029 units of bikes.
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Suzuki Ertiga ready for India launch
India's largest carmaker Maruti Suzuki is all set to launch the second-generation model of its Ertiga in India very soon. The updated Multi-Purpose Vehicle (MPV) is likely to be launched sometime next month and its bookings are expected to be announced in the first week of the same month. Some reports suggest that the company has already started production of the new Ertiga to fulfil initial demand with minimum lag. The model has already been launched in Indonesia and the Indian-spec version will look similar to it. While the wheelbase (2,740mm) remains unchanged, the updated model is both wider and longer than the existing version. It gets a fresh styling as well with new front grille, which is quite similar to that of the new Ciaz. The new features sleeker headlamps with projector option and LED daytime running lights, and wider wrap-around tail-lamps. The bumpers are also redesigned and so are the fog lamp
housings. The side profile looks fresh with new creases and alloy wheels. Inside, the new Maruti Suzuki Ertiga gets a revised cabin which is quite familiar to the new generation Swift and Dzire. The higher variants will also get the company's latest Smart play touch
screen infotainment system with a seven-inch display and connectivity options like Andriod Auto and Apple CarPlay. The seating configuration for seven remains the same. Alongside the Anti-lock Braking System (ABS) with Electronic Brake-force Distribution (EDB), the new generation is expected to get dual-front airbags and reverse parking sensors as standard. The rear parking camera, however, could same with the range-topping trim. The diesel variants of the new Ertiga are likely to continue with the existing 90PS, 1.3-litre Multijet engine, while the petrol versions will share the new 105PS, 1.5litre, four-cylinder mill with the new Ciaz. The new petrol engine gets Smart Hybrid Vehicle by Suzuki (SHVS) technology and claims to return a fuel efficiency of 21.56kmpl with a five-speed manual transmission. Like the Ciaz, new Ertiga will also get a four-speed automatic transmission option as well.
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Dice Energy & Water 2018 at Ned University
DICE Energy & Water 2018 event is a joint collaborative event of the DICE Foundation and NED University of Engineering & Technology Karachi to foster innovation, collaboration and entrepreneurship culture in the country on Energy, Water and its related themes. In this connection two days event called DICE Energy & Water arranged at NED University of Engineering & Technology premises on 10-11 October 2018. The event included Students Innovation Exhibition, Industrial Exhibition, Symposium and Tameer DICE Shark (pitching of innovative projects in front of Industrialists, CEOs and Venture Capitalists), and National Innovation Basket (NIB). There was a total prize money of Rs.250,000/- for innovative student projects in the competition. This was a timely effort especially under the present Energy and Water crisis situation prevailing in the country. It has also provided an opportunity to the academia and the industry to share innovative ideas and solutions to address the current energy scenario. The major objectives of DICE Energy platform are: to grow indigenous energy industry in Pakistan by providing a common platform for Academia, Energy Industry, Government and Expatriates to promote and collaborate on innovations related to energy sector, commercialization of innovations, energy engineering capacity building leveraging knowledge of expatriates around the world, providing access to
P akistan energ y industry to international markets leveraging extensive expatriate network and to help Government of Pakistan in energy policy making. The event was inaugurated by the chief guest, Mr. Imtiaz Ahmed Sheikh Provincial Minister of Energy for Sindh, D r. Sarosh Hasmat Lod i V ice Chancellor, and Dr. Khurshid Qureshi C hairman & Founder o f DIC E Foundation USA. Highly esteemed guests from industries and academia also attended the event. Out of more than 120 projects submitted by various universities of Pakistan, 40 projects were put on display. 15 projects were selected by a panel of judges as the top most projects for Tameer DICE Shark. Chief Guest of Event Mr. Imtiaz Ahmed Sheikh briefed about different projects running under his ministry and also other projects planned by government of Sindh to solve the current Energy and Water crises. He highlighted the issue of shortage of water in Thar, interior Sindh and Karachi and emphasized on the importance of dealing this problem with utmost priority. He shared the vision of Sindh government that it is not against building dames. The dames on which there is a mutual consensus of all provinces should be made as early as possible. He invited NED University of Engineering & Technology to work together with the Sindh government to solve the Energy/water crises. Professor Dr. Muhammad Tufail ProVice Chancellor-NED University,
delivered his welcome Speech. Dr. Sarosh Hasmat Lodi Vice ChancellorNED University informed that NED University has continuously been focusing on the promotion of research and accordingly providing facilities to the faculty and students relating to energy research. He also highlighted that the University has played a vital role in promoting and working for the development of renewable energy sources and methods. He added that NED-DICE Energy Innovation Center provides a platform to the students studying in any university to carry out research work in this Center and also emphasized research work needed for Battery in future. The two days of this national exhibition brought together renowned professors, scholars, industrial professionals and DICE representatives from all around the world who shared their research involving generation and distribution of energy, and how it could be applied to make Pakistan energy efficient with an increased economic growth. It was also agreed upon that further initiative must be taken to explore safe and renewable energy resources for future generations. It was further extended to ensure that undergraduate and post-graduate students should be provided platform, initiatives and funding to ensure a continuous research on industrial issues relating to energy.
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Automobiles get costlier as currency fluctuates With recovery in rupee value against the dollar after $6 billion bailout package offered by Saudi Arabia, Chinese bike assemblers have pushed up bike prices citing devaluation of rupee against the dollar. Country’s second largest bike assembler – United Auto Industries – has surged the price of its two wheelers (70-125cc) by Rs 3,000-4,000 due to the rising cost of imported raw material on account of rupee depreciation. The price of 100cc bike rickshaw has gone up by Rs5,000. The new prices would be effective from November 1, the company said in its circular to their dealers adding consumers offering full advance payment prior to October 31 can purchase bikes at the old rates. The maker of Road Prince bikes has informed its dealers regarding price hike in two wheelers by Rs1,000 from October 10. However, the company has decided to further raise the prices of its 70-125cc bikes by Rs2,000-3,000 from November 10. The maker of Hi Speed bike in its circular have confirmed a price jump of Rs3,000-7,000 in 70-150cc vehicles from November 5. New Asia Automobiles has pushed up prices of all its brands by Rs3,000 from October 15.
Ohad Motors has announced a Rs3,000 hike in Metro motorcycle from October 20. Kausar Automobile communicated its dealers on October 23 a price increase of Rs 3,000-10,000 in 70-200cc two wheelers from November 1, owing to uncertain conditions and losing rupee value against the greenback. Chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Sheikh said the prices are being raised due to the rising cost of imports of parts and kits in view of the recent rupee slide. “In case $1 comes to Rs125 in coming months, the assemblers may think of bringing down the prices,” he hoped. On October 10, rupee fell by 7.5 per cent while on October 24, it gained 1.5pc against the dollar. Due to stiff market competition and rising cost of production, only 40 assemblers are now in operation out of 124 in the last 10 years, he claimed, urging the government to sit with the stakeholders and work on a new policy for the two-wheeler segment. Recently, Honda Atlas Cars Ltd increased prices of various models owing to the negative exchange rate. The company informed its dealers that the prices had been raised by Rs50,000 for BR-V, Rs60,000 for City and Rs100,000
China launches new rail link with Islamabad China has launched a new rail and road cargo service linking Lanzhou, capital of northwest China’s Gansu Province, with Islamabad in Pakistan. The first train carrying 30 carriages of mechanical equipment, auto parts and daily necessities left a logistics centre yesterday in Lanzhou, bound for Kashgar in Xinjiang Uygur Autonomous Region. The goods will then be transported to Islamabad by a highway, China’s staterun media reported on Wednesday. According to Luo Zhe, deputy director with the management committee of the
International Land Port of Gansu (Lanzhou), the 4,500-km trip will take 13 days, around 15 days less than the traditional sea route. This was the second freight train service launched by Gansu to South Asia. In 2016, a rail and road cargo service op en ed bet w een Lan z hou a nd Kathmandu, Nepal. “I hope the new rail and road cargo service can set a good example for cooperation between China and Pakistan and encourage more countries and regions to join the Belt and Road Initiative,” Luo said.
for Civic for November and December deliveries. For January 2019 onwards deliveries, the company has raised prices further by Rs50,000 for BR-V followed by Rs65,000 for City and Rs110,000 for Civic. Indus Motor Company (IMC) also came out with price hike of Rs50,000175,000 for November and December deliveries and Rs100,000-350,000 for deliveries from January 2019 onwards. Car assemblers had jacked up prices four to five times during the current year in the wake of a depreciating rupee amid claims of higher localisation of parts and accessories. It is not clear whether assemblers would make downward revision in prices in case the rupee gains against the greenback in the next few months. “We cannot say anything right now with surety about lowering car prices on the back of rupee’s rise in future. In an uncertain environment we will ‘wait and see’,” a car assembler said. Courtesy: Dawn
IMC’S INITIATES ‘1 MILLION TREE PLANTATION’ DRIVE In line with the government’s ‘Clean and Green Pakistan’ programme, Indus Motor Company (IMC) has launched the ‘1 Million Tree Plantation’ - a drive aimed at reducing the carbon footprint of the company. It was initiated as part of IMC’s commitment to the protection of the environment and of the community in which it operates. An active signatory of the United Nations Global Compact (UNGC) and winner of UNGC Pakistan Network’s “Business Sustainability Award 2017, IMC strives to advance UN’s Sustainable Development Goals (SDGs). As part of this commitment, IMC has adopted Goal 11: Sustainable Cities as a guiding principle for its environmental initiatives.
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Renault’s Chinese e-SUV pops up in Paris Bajaj Auto reports 17 % rise in Sept sales at 502,009 units The company had sold 428,752 units in September 2017, Bajaj Auto said in statement. Bajaj Auto reported its highest ever monthly sales at 502,009 units during the month of September. The company had sold 428,752 units in September 2017, Bajaj Auto said in statement. Total motorcycle sales during the month increased 17 per cent to 430,939 units against 369,678 units in the year ago month. Commercial vehicles grew 20 per cent to 71,070 units in September compared to 59,074 units in the same month last year. The overall half yearly sales of the company also increased by 31 per cent at 2,566,085 units. Total exports last month stood at 190,506 units, up 30 per cent to 146,973 units in the year ago month. In domestic market, the company sold 1,493,310 units during April-September, registering an increase of 30 per cent. Last month, the company posted 11 percent increase in domestic market at 311,503 units during September 2018 as compared to 281,779 units in the same month year ago.
Yamaha Rolls Out 2019 Models New colors for the XSR700 and XSR900, status quo for the VMAX, V Star 250, and Bolt models New bike season is in full swing, and while many manufacturers have dropped enticing new products, others are just playing it cool with the rest of their ranges. Yamaha’s latest 2019 model announcements for its heritage line are pretty much in that category (for now, anyway). R3 notwithstanding, the bulk of the latest news covers Yamaha’s XSR Sport Heritage models, with the XSR700 and XSR900 getting a paint refresh for 2019. Yep, the Faster Sons philosophy, which combines vintage style with modern engine and chassis technology, continues on, though in this case, Yamaha doubling down on the vintage side of the equation.
Renault’s BEV credentials are rock solid, with the trailblazing Zoe (it debuted in 2012) having now shifted some 110,000 units. Within the Alliance, Nissan’s Leaf is on its second generation while many rivals race to bring their first BEV to market. And at the Paris motor show CEO Carlos Ghosn underlined Renault’s commit men t t o electr ificat ion, proclaiming it without doubt ‘the future of mobility’. In the near-future that further commitment extends to a new Chinesebuilt A-segment battery-electric SUV, the K-ZE – a collaboration between the Dongfeng Motor Group, Nissan and local manufacturers e-GT New Energy Automotive Co. Funkily styled, lavished equipped (by Chinese standards) and with a claimed 155-mile range, Ghosn was punchy on the car’s huge potential i n C h i n a. C o n si d e r ab l y mo r e sophisticated than the Chinese rivals the K-ZE will go up against, Ghosn insisted it would compete directly on price. And that potential is enormous when you consider nearly half a million pure EVs were sold in China last year alone. ‘Renault was a pioneer and is the European leader in electric vehicles. KZE is an affordable, urban, SUV-inspired electric model combining the best of Renault; our leadership in EV, our expertise in affordable vehicles and in forging strong partnerships’, said Ghosn. While describing the K-ZE as a global car, Ghosn was less confident about its European future – the business case may well stack up, but China comes first. Hybrid reinforcements
Previously all or nothing in its approach to electrification, Renault’s also announced hybrid versions of its volume sellers; Clio, Megane and Captur. Badged E-Tech and offering both hybrid (Clio) and plug-in hybrid functionality (Megane and Captur), the first E-Tech Renaults will arrive in 2020. The Paris motor show is underway, and we've compiled a list of all the new cars you need to know about. The 2018 Mondial de l'Auto is labelled as the world's biggest car show by visitor numbers; it is a biennial exhibition, alternating with the Frankfurt motor show in Germany. Highlights at the 2018 Paris auto show include the world debut of the new BMW 3-series, a raft of French concept cars, as well as our first look at the MercedesBenz A35, Audi e-Tron electric car and the cutesy new Suzuki Jimny off-roader. We're reporting on all these and more during the international media days of Tuesday 2 October and Wednesday 3 October 2018. The expo was first held in 1898 in the Jardin des Tuileries in the French capital and the last show in 2016 it attracted 1,072,697 visitors, including 10,000 journalists. It's massive, despite suffering a significant drop in exhibitor numbers this year. Read on for more details about the Paris motor show, which opens its doors to the public from 4-14 October 2018. We'll be updating this page with more news, world debuts and expected launches in the coming days as we report live from the 2018 Mondial de l'Auto.
China’s BYD invests in US bus plant Chinese electric vehicle manufacturer BYD has invested $5m in a 9,300 sq.m warehouse to free up space at its electric bus plant in Lancaster, California. The new building currently stores around 15,000 different parts and will further streamline the handling of materials and supplies into the 41,800 sq.m manufacturing plant, the company said. The facility is receiving on average 12 inbound deliveries a day, equalling 50 containers. The batteries for the buses are brought in from BYD Energy, which is located near to the bus plant, and stored in a dedicated unit.
The warehouse is the company’s fourth expansion on the site at Lancaster and brings total investment there to more than $53m. BYD has delivered more than 270 electric buses in North America to date wi th an ad di tio nal 80- pl us i n production, and 300 orders with options which could double that number. The company has capacity to produce up to 1,500 battery-electric buses a year. BYD has also purchased additional land near the Lancaster plant and is planning service and maintenance centres across the US.
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United Motors starts bookings for Bravo at Rs. 8.5 Lacs
The newly introduced 800cc United Bravo has been officially launched in Punjab region and booking has been started with PKR 200,000. Car delivery time is approximately 2 months that has been given to customers, as sources said. The car enthusiasts and the automotive industry are showing a great interest in the vehicle which was recently introduced to break the monopoly of other auto assemblers in the market. While company source also confirmed that dealers have an overcrowded response and they have booked all cars of the quota which they got from the company. United Motors appointed 6 3S dealers in Punjab region as United Bedian
Motor Engineers (Lahore), United Motor Experts (Islamabad), United Faisalabad Motors (Faisalabad), United Meer Motor (Faisalabad), United Jehlum Motors (Jehlum), SMR United Motors (Multan) and many more are in pipeline while they don’t have any dealer in Karachi. As per company policy, all dealers should have facilities of Sales, Service, and Parts (3S). Launched on 8th September, the 800cc car comes equipped with a 3-cylinder water-cooled Euro II engine with 30 liters fuel capacity, 4-speed manual transmission enabling 60 nm torque and 50 BHP. It also boasts of an electric power steering, inside fuel led opener, power windows, central locking, fog lights, rear-view camera, alloy wheels,
and interactive media panel with USB ports. The car comes with a price tag of 8.5 lacs. Its launch has made a bigger impact in Pakistan’s developing auto market and is expected to push other auto manufacturers to focus on delivering features at economical price instead of the conventional products that have been continuously sold locally. United Auto Industries (Pvt) Limited is the 1st local brand and 2nd Largest selling brand of United Motorcycles in Pakistan. The Company received Green Field Investment status under new auto policy 2016-2021 from Ministry of Industry and Production in June-2017.
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A game changer model for Proton–X70
RENAULT NISSAN BECOMES THE LARGEST AUTOMOBILE MANUFACTURER, ABOVE TOYOTA AND VOLKSWAGEN For long now, two aut omobile manufacturers who have always been on the lead when it comes to being the largest are Toyota and Volkswagen. But now that has changed as the RenaultNissan alliance with its sales of 5.26 million vehicles in the first half of 2017, has overtaken Toyota and Volkswagen who sold 5.12 million and 5.15 million units respectively. These three brands are leading over General Motors. The American automobile manufacturer, one of the world leaders in production, clocked a sales of 4.7 million units. It should be also noted that the other three brands mentioned above have individual shareholders and a single board. The Renault Nissan alliance has cross-shareholdings and also utilise each other's resources when it comes to technology development and marketing activities. The Renault-Nissan alliance managed to get the top spot over Volkswagen, Toyota and also the General Motors with its acquisition of Japanese automobile brand Mitsubishi, wherein Nissan got 34 per cent stake last year.
Honda recalls 1.4 million cars to replace air bag inflators Honda says it will recall 1.4 million U.S. cars to replace Takata front passenger air bag inflators. The company says the recall, which covers Honda and Acuravehicles, is part of an attempt to get ahead of a government mandated schedule of recalls on the Japanesemade air bags. The Honda recalls are the fourth part of a five-phase plan announced by the National Highway and Transportation Safety Administration in May of 2016. Honda says it is ahead of schedule with more than 77 percent of existing recalls repaired. The inflators have resulted in the largest series of auto recalls in U.S. history, covering 37 million vehicles and about 50 million inflators.
PETALING JAYA: Proton Holdings Bhd’s X70 sport-utility vehicle (SUV), which is set to be launched later this year, could just be the game-changer model that the struggling national car company has been waiting for to help turn it around. Response to the model has been promising, having received some 5,000 bookings within a week of being made available to the public – a good sign for a company that has, for years now, been striving hard to rebuild its brand loyalty and regain consumer confidence in its products. “The emergence of China’s Zhejiang Geely Holding Group Co Ltd as a foreign strategic partner was a milestone for Proton and will help provide the national carmaker wit h t he turn around opportunities it has been needing all these years,” said an industry observer. Geely completed its acquisition of a 49.9% stake in Proton in September 2017. Vehicles engineered with Volvo technology, such as its GC9 sedan and the Boyue SUV (the platform on which the X70 is based on) have been a hit in
China, the world’s biggest auto market. China-based vehicles have, for a long time, been getting a “bad rap” from customers and industry observers due to their quality. However, in recent years, the demand for Chinese makes has been on the rise. “Having models with Volvo-engineered technology has helped Geely grow by leaps and bounds,” said an analyst. “With proven technology and Europeanlike features, their models have been a hit in China; and it’s no surprise why the model will be a hit here as well,” he said, adding that the X70 could also pave the way for future Proton models. Another analyst said having a rebadged vehicle would also bode well for Proton, especially for parent company DRBHicom Bhd, which has a 50.1% stake in the national carmaker. “By having a rebadged vehicle, Proton will no longer have to incur huge development costs in developing new models, as the cost will be incurred mostly by Geely. This will definitely help boost the national carmaker’s bottom line.
Toyota Revamps Design, Manufacturing as Part of Restructuring
R&D facilities in Michigan Expand SALINE, MI – Toyota Motor Corp.’s research and development operations in southeastern Michigan have emerged as a key piece in revamping the au t o mak er i n N or t h A meri ca . The company announced its One Toyota plan for North America four years ago. Since then, it established a new $1 billion North America headquarters in Texas, absorbing functions that had been based in California and Kentucky. The Michigan R&D operation expanded as part of One Toyota. The automaker already had R&D complexes in Ann Arbor and Saline, MI. In early 2017, it opened a supplier center at Saline, part
of a $154 million expansion. There are also design and prototype facilities in Saline as well. The Michigan facilities are Toyota’s largest R&D operations outside of Japan. “The intent was to grow our engineering capability to support” Toyota’s North American operations, said Robert Young, a group vice president at Toyota Motor North America. His duties include purchasing, supplier engineering and cost planning. One major priority of the expanded Michigan R&D facilities is to have the automaker work closer with its suppliers.
Daimler and Geely form ride-hailing joint venture in China Geely Chairman Li Shufu took a 9.69 percent stake in Daimler earlier this year, rekindling fears in Germany about its highly-prized expertise falling into Chinese hands. FRANKFURT: Germany's Daimler is setting up a ride-hailing joint venturein China with Geely Group, in a sign the
Chinese firm is making progress in its drive for closer relations with the maker of Mercedes-enz cars. Geely Chairman Li Shufu took a 9.69 percent stake in Daimler earlier this year, rekindling fears in Germany about its highly-prized expertise falling into Chinese hands.
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Rs. 41,800/= Rs. 43,800/= Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1
Retail Price Rs. 65,900/= Rs. 69,900/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 46,000/= Rs. 45,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=
125/150/200cc Motorcycle No.
Brand & Model Name
Retail Price
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Super Power SP 200cc Unique UD 125cc Unique UD 150cc Crazer Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed Infinity SR-150 Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G (2018) Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II Zxmco ZX-200cc
Rs. 110,900/= Rs. 130,500/= Rs. 109,400/= Rs. 176,000/= Rs. 70,000/= Rs. 67,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 2,00,000/= Rs. 70,000/= Rs. 165,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 119,900/= Rs. 139,900/= Rs. 134,900/= Rs. 65,000/= Rs. 71,600/= Rs. 2,45,000/=
Sr./ No. 13. 14. 15. 16. 17. 18. 19. 20.
Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Union Star Ms Jaguar MS 70
( DREAM)
Zxmco ZX-70 Regular Leader LD-70
Retail Price Rs. 43,500/= Rs. 45,500/= Rs. 42,000/= Rs. 45,600/= Rs. 44,000/= Rs. 43,800/= Rs. 42,300/= Rs. 44,000/=
100cc/110cc Motorcycle No. Brand &Model Name 1. Honda Pridor 2. United US-100 Euro 2 3. Road Prince 110cc 4. Unique UD-100 5. Super Power SP-100 6. Hi-Speed Classic SR-100 7. Hi-Speed Alpha SR 100 8. Super Star SS-100 9. Crown CR-100 10. MS JAGUAR MS 100 11. Zxmco ZX-100-SS 12. Leader Classic LD-100
Retail Price Rs. 90,900/= Rs. 50,000/= Rs. 48,500/= Rs. 80,000/= Rs. 60,000/= Rs. 47,500/= Rs. 82,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/= Rs. 52,900/=
Suzuki Motorcycle Sr./ Product & Retail Price No. Model Name 1. GS-150 SE Euro-II Rs. 170,000/= 2. GD 110S Self Start Rs. 145,000/= 3. GS-150 Rs. 150,000/= 4. NEW GR-150 Rs. 229,000/= 5. SD 110 Eco Rs. 119,900/= Heavy Bikes Product & Sr./ Retail Price Model Name No. 1. Inazuma GW 250 Rs. 599,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Bandit GSF650SA Rs. 14,50,000/= 5. Honda ADA CB250F Rs. 6,40,000/= 6. Super Power Sultan-250 Rs. 2,90,000/=
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Car / Light Vehicle Price List SUZUKI Model Model WAGON-R VXR 1000cc Euro II WAGON-R VX 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR MT 1000cc NEW CULTUS VXL MT 1000cc NEW CULTUS VXL AGS 1000cc BOLAN VX 80cc EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2
SUZUKI MEGA CARRY 1.5 MT SUZUKI CIAZ (A/T) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol) VITARA GL+ AT 1.6 VVT
Advance Tax Ex Factory Price Rs. 25,000 Rs. 1144,000 Rs. 25,000 Rs. 1234,000 Rs. 769,000 Rs. 10,000 Rs. 840,000 Rs. 10,000 Rs. 1,475,000 Rs. 50,000 Rs. 1,611,000 Rs. 50,000 Rs. 1,340,000 Rs. 1,461,000 Rs. 1,568,000 Rs. 834,000 Rs. 10,000 Rs. 800,000 Rs. 10,000 Rs. 756,000 Rs. 10,000 Rs. 1,499,000 Rs. 1,999,000 Rs. 1,859,000 Rs. 2,293,000 Rs. 2,418,000 Rs. 3,490,000
HONDA Model Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda
Price
BR-V i-VTEC 1500cc CVT BR-V i-VTEC S 1500cc Model Civic i-VTEC 1.8L Civic i-VTEC Oriel 1.8L City 1.3L Manual City 1.3L Prosmatec HYUNDAI City 1.5L Manual City 1.5L Automatic Aspire Manual 1.5L Aspire Prosmatec 1.5L
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
2,399,000 2,499,000 Price 2,824,000 2,974,000 1,869,000 2,009,000 1,929,000 2,0693,000 2,079,000 2,219,000
PRINCE DFSK PAKISTAN Model K01 997CC, 2700mm K07 997CC, 6 Seater, AC/PS/PW C37 1500CC, 11 Seater,AC/PS/PW Prince Glroy 300 1499cc M/T Prince Glroy 370 1499cc M/T Prince Glroy 580 1499cc
Price Rs. 899,000 Rs.1,099,000 Rs.1,724,000 Rs.1,850,000 Rs.2,150,000 Rs.3,450,000
TOYOTA COROLLA Model XLI VVT-i 1.3L M/T XLI VVT-i 1.3L A/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis M/T SR 1.8L (Grande CVT) Corolla Altis A/T SR 1.8L (Grande CVT) FORTUNER A/T 4x2 2694CC
Price Rs. 2,049,000 Rs. 2,124,000 Rs. 2,304,000 Rs. 2,379,000 Rs. 2,579,000 Rs. 2,819,000 Rs. 2,869,000 Rs. 3,004,000 Rs. 6,407,000
Toyota Hilux Pickup 4x2 sc Model
Price
Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD
Rs. 2,914,500
Toyota Hilux Pickup 4x4 E Model
Price
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model
TOYOTA REVO DAIHATSU Model & Price Vigo Champ-V MT Revo G M/T 1GD-FTV 2755cc 4,865,000 Revo V A/T 1GD-FTV 2755cc Vigo Champ-G AT 5,095,000
Rs. 4,555,000
FAW MOTORS Model
Price
FAW Carrier DL 1000cc Rs. 919,000 FAW Carrier 1000cc STD Rs. 939,000 FAW Carrier 1000cc Rs. 929,000 (Flat Bed) Rs. 1034,000 FAW X-PV 1000cc Std Rs. 109,5000 FAW X-PV 1000cc A/c FAW V2 1300cc M/T Rs. 1,289,000 Local Assembled
Monthly AutoMark Magazine - International Price updated Nov- 2018
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