Automark Monthly maagzine September 2012

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Monthly

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

Editor M. Hanif Memon Sub Editor Dr. Raja Irfan Sabir

Technical Editor Muhammad Shahzad

Advertising Manager Abdul Khaliq

Circulation Manager Tahir Siddiqui

Computer Operator MurtazaHanif

Web Master Mustafa Hanif

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

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center Director Industrial Lesion, NED University, Karachi Engr. IHT Farooqui General Manager Plant Karakoram Motors (Pvt) Ltd., Karachi J. Pereira Senior General Manaer After Sales Service and Parts Master Motor Corporation Ltd., Karachi

The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management. AutoMark REGD: SC-1330

Published every month by M. Hanif Memon Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.automark.pk E-mail: magazine@automark.pk automarkpk@gmail.com Tel : 021-32218526 Mobile: 0321-2203815

India allows investments from Pakistan India overturned a ban on foreign investment from Pakistan, the Indian commerce ministry said. According to reports reaching here, the move is aimed at building goodwill amid a renewed push for peace. Indian sources pointed out that the improved relations between the rivals stemmed from Pakistan’s decision to grant India ‘most favoured nation (MFN)’ status by the end of the year. In further progress, the neighbours opened in April a second trading gate along their heavily militarised border, boosting the number of trucks able to cross daily to 600 from 150. At a time when Pakistan was witnessing a plunge in foreign investment into the country and many local entrepreneurs were moving to set up industries in Sri Lanka, Bangladesh and countries in the Middle East and Africa, the opening up of another gateway to India was looked down upon as undesirable by several economists and industrialists. According to figures released by the State Bank of Pakist an, foreign investment in the country fell 65.6 per cent to $680.4 million in the year ended on June 30 from $1.98 billion the previous financial year. Hit by political instability and the energy crisis, local and foreign investors were also loathe to make new investment in industries in Pakistan. While everyone admitted that ‘free-trade’ regime was for the overall good, some economists like Sayem Ali at the Standard Chartered Bank thought it was a ‘smart move’ by India. Pakistan had already opened up its doors for 100 per cent ownership of businesses by foreigners and allowing them repatriation of capital and profit. There seems to be no value addition for


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CONTENTS

Monthly AutoMark R&D Projects in Public Private Partnership 11-14 to Help Pakistan Motorcycle Industry to Design and Produce its own Motorcycles Industry seeks new way forward Exclusive Article by M. Yousuf Shaikh, Founder & Chairman, PCMIC APMA supports move to open bike market for new entrants Exclusive Article by Ali Hassan PAC’s outburst on car makers fails to bring any results Exclusive article by M. Owais Khan

15-16

Pessanger Cars Production Figures for year 2011-2012

20

Government trying to lure new investors in bike segment price car parts in Pakistan Exclusive article by Ali Hassan

23-24

Tractor Sector - Update

24-25

The Water Car Saga Exclusive Article by Dr M.Asif (Glasgow Caledonian University, UK)

32-33

17-18

How to make a wise decision 37-39 to buy best used car part II Exclusive article by Mohammad Shahzad PAKISTAN – Motorcycle manufacturer looking for joint venture partner to enhance the production capability Exclusive Article by M. Yousuf Shaikh, Founder & Chairman, PCMIC

40-41

STEPNEY Automotive Article - by Haider Nawab Local Assembled/Imported car price

42

International Automotive News - update India & China Current Motorcycle price list

44-45

visit: www.automark.pk

41

48-49


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Exclusive article by M.Yousuf Shaikh

Monthly AutoMark Magazine

R&D Projects in Public Private Partnership to Help Pakistan Motorcycle Industry to Design and Produce its own Motorcycles Pakistan Chinese motorcycle manufacturers have an opportunity to make it possible themselves and to become manufacturer in the real sense. Long-term Policy needed for Motorcycle Industry by the government would naturally follow In recent years, we have witnessed that the industrialization of many Asian countries greatly depend on the development of their automotive industry consecutively motorcycle

Muhammad Yousuf Shaikh, the Founder & Chairman of Pakistan China Motorcycle Industry Council, offers his analysis of the motorcycle trade & industry trends from Pakistan & China. The chairman PCMIC working with motorcycle trade & industry for over two decades, Yousuf believe that R&D projects could help Pakistan to design and produce its own automobiles mainly motorcycles as the Chinese & Indian motorcycle manufactures design & produce their own products. Motorcycle Industry Require intensive investment & huge financial resources, PCMIC proposed public private partnerships and mergers & acquisition of existing companies is the only way forward for the Pakistan’s Chinese motorcycle in d us t ry. T he re su lt o f t h is development could have profound implications on the Pakistan’s motorcycle industry over the next decade. To reach him, email: pakchina.mic@gmail.com

industry. Similarly, motorcycle industry acted as a catalyst in the overall growth of the industry in China, India, Pakistan and Koreas and the consequent wellbeing of their citizens. It is indeed heartening that the motorcycle industry has smiled at Pakistan. Fortunately the last few years have witnessed phenomenal growth in the industry in terms of production and sale. Today the customers have choice to pick from a wide range of motorcycle brands at very competitive prices. The Pakistan motorcycle industry has been around for more than 50 years, and today is considered an industry that is highly important to the Pakistan economy. The motorcycle industry employs an estimated 100,000 people. The motorcycle sector of Pakistan’s auto industry produced over 2 million motorcycles annually, with 20,000 being exported. Pakistan is a large producer of small-displacement motorcycles but there is no thriving local development by motorcycle industries especially the PakChinese motorcycle assemblers as they simply doing trading of Chinese motorcycle parts with their Chinese counter part instead to invite them for local manufacturing of crucial parts here in Pakistan.

Major General M. Ovais Mustafa

M.Yousuf Shaikh Chairman PCMIC

"The Pak-Chinese motorcycle industry has entered a dead end as the sales competitions in Pakistan markets are fierce and currently the prices of Chinese motorcycle are much lower than the present cost of manufacture units the present cost of all brands Chinese 70cc motorcycle is about Rs.45000/ unit without any portion of R&D but old price about Rs.40000/unit is still valid in markets” because of accessibility of smuggling of motorcycle spare parts particularly engines in ckd condition on massive scale from China through Sust Border and Afghan Transit Trade, a flood of commercially imported / smuggled Chinese parts in the parts markets for replacement which acutely never replaced but imported for assemblers and also imports by Vendors under SRO 655. The majority of the motorcycles being manufactured in Pakistan are the 70CC motorcycles. Most of the parts used in the frame, suspension, engine etc are interchangeable, or can be used with minor adjustments. Over two million motorcycle assembling Pakistani companies should do the joint venture in public private partnership with their foreign counter part to manufacture the key parts of motorcycles such as the complete engine, carburetor, Drive

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Exclusive article by M.Yousuf Shaikh - continued

Monthly AutoMark Magazine

Meeting between Major General Muhammad Ovais Mustafa, Director General Military Vehicle R&D Establishment (MoDP) and M. Yousuf Shaikh, Chairman PCMIC, was scheduled on 30 Aug 2012 at Military Vehicle R&D in Karachi. Chain, hundreds of engine separate components ( Cylinder Head, Ring Piston Set, Bearings, Bushes, Timing chain, crankshaft, and many other components ) and also the Handle switches, Lock Set, Wheels Hubs & Breaks, Complete absorbers and speedometer movements instead of import as these parts are 90% imported through different system as there is no tr ue man uf actu re in Paki stan. The engine is a core part of the motorcycle, and the demands for motorcycle engines are highly related to the demands for motorcycles. Motorcycle engine market has great potential as a result of the booming motorcycle demands. The compound annual growth rate of motorcycle engine sales in China between 2003 and 2011 was 8.12%. Its sales reached 30.02 million units in 2011 but here in Pakistan not a single engine factory established as a result the engines are 100% imported / smuggled via afghan transit trade, sust border, imports under replacement parts in ckd and under SRO 655 for vendor to import parts in dismantle condition. Better performance motorcycle engines are needed due to the demand shift from ordinary two-wheeled motorcycles to leisure and recreational two-wheeled motorcycles. Motorcycle engines are in the process of upgrading to low emission, low vibration, low noise and low heat load e ngines with displacements over 125cc. Along with the sales of three-wheeled motorcycles in Pakistan, demands for their 200cc multipurpose engines are also growing fast. The compound annual gr o wt h r at e of t hr ee - w hee l ed motorcycles was 26.3% between 2005 and 2011. The three-wheeled vehicle (Auto Rickshaw) manufacturers in Pakistan also don't have the ability to produce three-wheeled motorcycle engines and many other parts, and technologies to produce such engines are different from those of two-wheeled motorcycle engine due to their exclusive features, so market demands will be satisfied by those engine manufacturers which have the R & D and manufacturer

abilities for three-wheeled motorcycle engines. In order to encourage the implementation of collaborative research and development (R&D) projects involving participants from the public and the private sector, financial support may be granted by the government to the companies involved and the EDB interact with PCMIC and all stakeholders to identify the common parts of 70cc,125cc motorcycle engines being manufacture in Pakistan and also make plan for remaining parts of motorcycle engine for localization of complete Pakistani engine, based on production figures the total OEM market for engines and these parts can be determined. The EDB & PCMIC should try and foster “embedded� linkages between the Assemblers, vendors, importers and banks as consortium that are willing to make the investment on made in Pakistan engines. The last hope of the Chinese motorcycle industry was taken away by unfavorable policies. People in the industry seem to be shy to talk about their profession. They no longer hold hope for the government and no longer complain about the unreasonable taxes and valuation of Chinese motorcycles parts as they are beaten by the harsh reality, and have lost their confidence. They begin to believe that Chinese motorcycle industry has become a sunset industry. Will the Chinese motorcycle industry have any prospects? Actually this is a brainless question as there's no industry that suffers a deficit but a company. This doesn't mean that an industry will never die, but its dying cycle is not this short. Product functions will be upgraded, so will an industry, in order to meet the certain demand of human beings. Motorcycles take care of one of the 'four basic necessities of life (food, clothing, shelter and means of traveling): travelling. Motorcycle has big market demands in Pakistan especially in Southern Punjab. Pakistan Chines e motorcycle manufacturers are not real producers in a sense, but assemblers. It may well be asked, which Pakistan Chinese

motorcycle manufacturer has a real R & D institution? Is there any motorcycle in Pakistan which is not influenced by Japanese motorcycle technology? Yamaha YD-100, Honda CG125, Honda CG125 Deluxe and Honda CD-70 all imitated by Pakistan Chinese motorcycle assemblers. The Pak-Chinese motorcycle industry still lives on the memory of its past prosperity, and doesn't notice any change in the market. Some motorcycle assemblers expressed their determination to go with the motorcycle business until the end, and would never invest a single penny in R&D. It's understandable that they were doing so to prevent terminal motorcycle assembler from withdrawing their capital from the industry. In my opinion, there's no need for doing this as seeking profit is the unique feature of all businessmen. It's better to do a refined operation demonstration than this. Meanwhile, although the auto industry may be a big earner, all four wheel vehicle manufacturers at present are foreign joint venture. Pakistan parts manufacturers depend on foreign technology and the country is still unable to design and produce its own automobiles even motorcycles. This makes it difficult for the industry to develop. Today automotive technology is changing quickly due to environmental concerns and the rising prices of fossil fuels.This have led auto-makers around the world to develop vehicles that have improved fuel economy and emission levels. Many have also introduced hybrid and electric vehicles, while developing fuel-cell vehicles for the future that would emit nothing but water vapour. Our motorcycle industry is divided into two markets. The mainstream market consists of manufacturers who are from overseas joint venture. The parts manufacture companies that are Pakistani-owned or have major Pakistan shareholders are who depend on design and production technology from abroad. The other market is the niche market, consisting of SMEs producing Chinese motorcycles & Parts. In this market,

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Exclusive article by M.Yousuf Shaikh - continued most of the companies are Pakistani and products are sold domestically, where there is little foreign competition but big competition within themselves. Most of the players have not been utilizing much technology in terms of design, manuf act ure a nd en gi n ee ri ng . PCMIC proposed to set up a support programmed for Motorcycles engines and parts research and development (R&D) under the industrial and services cluster group. "Our motorcycle industry is divided into two markets. The mainstream market consists of manufacturers who are from overseas. The parts manufacturing companies that are Pakistani-owned or have major Pakistan shareholders are who depend on design and production technology from abroad. The other market is the niche market, consisting of SMEs producing Chinese motorcycles. In this market, most of the companies are Pakistani and products are sold domestically, where there is little foreign competition. Most of the players have not been utilizing much technology in terms of design, manufacture and engineering. Due to the importance of the Pakistan motorcycle industry, the Pakistan China Motorcycle Industry Council (PCMIC) has planning to set up a support programmed for Motorcycles and parts research and development under the industrial and services cluster group. This will enable specialized industries to have the capability to design and produce motorcycle engines and other parts which are still not indigenized in Pakistan. It will also help strengthen the niche market in the future and provide technology for design, production and engineering for Pakistan parts-makers in order to raise their capabilities. The PCMIC seeks the Strategic Planning Alliance in public private partnership that should targeted at stand-alone parts design and manufacturing. The project would intended to create an automobile platform for Pakistan that would be relayed to the private sector. The second phase of the project would also initiate for automobile and parts manufacturers, and the PCMIC teamed up with various Government Departments like Military Vehicles Research & Development Establishment (MVRD E), MoS T , En gi n ee ri ng Development Board (EDB) etc. With

such a coordinated approach it will be possible to include, niche areas of interest to specialist Government Organizations in the development effort.

Three areas would be targetable:a. The Motorcycle Engine market, as large number of the population use motorcycles for daily transport and motorcycles are assembled locally but engines are 100% imported. b. Larger Sized Engines (200 cc and above) c. After Sales parts market In this connection a meeting between Major General Muhammad Ovais Mustafa, Director General Military Vehicle Research and Development Establishment (MoD P) and Mr Muhammad Yousuf Shaikh, Chairman Pakistan China Motorcycle Industry Council, was held on 30 Aug 2012 at Military Vehicles Research and Development Establishment (MVRDE ) Det Kci, Liaqat Barracks No1 Karachi, as a follow up on Mr. Muhammad Yousaf Shaikh’s article in Monthly Automark magazine. Military Vehicles Research and Development Establishment (MVRDE) is Defence Production organization which over the clock is involved in indignation of various military/ technology related equipment. The meeting was in reference to continuous efforts of MVRDE for indigenous production of automotives and allied equipment and PCMIC promising efforts in this regards. The agenda of meeting was deliberate on enhancing localization related to production of critical parts like engines etc.The Director General MVRDE Major General Muhammad Ovais Mustafa emphasized the need for localization of motorcycle engines up to 200cc and other parts. Pak-Chinese motorcycle manufacturers have an opportunity to make it possible by themselves and to become manufacturer in the real sense. Long-term Policy needed for Motorcycle Industry by the government would naturally follow. While commenting on the meeting with the DG MVRDE, I emphasize that in order to achieve large volumes and stable growth in the industry, it is extremely important for the government to support the auto industry with long-term policies. The meeting was held in a

Monthly AutoMark Magazine very cordial environment and DG vowed to work together to formulate a longterm policy for achieving volumetric growth for the economic benefit of the country. During the meeting, DG MVRDE and representatives welcomed the time taken out by the Chairman PCMIC to hold such an important meeting with the motorcycle industry. The meeting helped to assure all the stakeholders that the government was a facilitator and does not intend to harm the flourishing auto industry or disturb the equilibrium of employment opportunities that it generates for the people of Pakistan." Global Motorcycles, Scooters & Mopeds Market to Reach 75 Million Units by 2015. According to New Report by Global Industry Analysts, Inc., the global market for motorcycles, scooters & mopeds is forecast to reach 75 million units by the year 2015, driven by growing urbanization, rising population and government policies. Fuel efficiency, pricing and style are other factors powering growth in the worldwide twowheelers market. The global motorcycle, scooter, and moped markets measured in volume terms are undoubtedly going Asia’s way, with a massive chunk of the total market concentrated in the Asia-Pacific region. Developing nations in Asia and Latin America, which perceive two-wheelers as a basic mode of transportation, are expected to remain the most promising markets for scooters, light motorcycles and mopeds. The last two decades have comprehensively transformed the po were d t wo - wheel er i nd u st ry worldwide. Demand has often outgrown expectations, beating the industry’s calculation, with changing market pattern being the accepted norm. Regional markets play a significant role in market evolution, wherein the wave of consumerism across the globe overhauled the structure of the powered two-wheeler industry worldwide. Motorcycles and scooters emerged favorites with the male customers, while mopeds and small scooters found ready acceptance with the female customers. In developed countries like the US, Canada, Japan, Germany and Italy, motorbikes and scooters are considered a premium purchase to be enjoyed by the wealthy and riding enthusiasts. In contrast, developing markets such as

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Exclusive article by M.Yousuf Shaikh - continued China, India, Pakistan and other South East Asia view motorcycles, scooters and mopeds as essential modes of transportation. The Chinese motorcycle industry has emerged as a formidable force in the global motorcycle and scooters market. The region’s emerging leadership has ignited a fierce competition, threatening to erode the monopoly hitherto enjoyed by the Japanese majors. Price competitiveness, vis-à-vis power, quality and comfort are key differentials in today’s motorcycle and scooter industry. Replacement sales as well as components and accessories demand remains a major factor driving the two-wheeler market. Economic growth and rapid urbanization levels also propel sales in the two-wheelers market. Fuel efficiency/mileage, emission levels, design & style, demographics, transportation system and engine power are some of the other critical growth motivators. In addition, regulatory environment and government policy play an important role in determining the future direction of the industry. The global motorcycle, scooters and mopeds industry was significantly impacted by the economic crisis that severely restricted disposable income as well as low-interest credit. The world market experienced a decline in growth rate to 6.6% in 2008, from a healthy 10.6% pace witnessed in 2007. The situation worsened in 2009, with a sharp fall in the market demand by a substantial 6.7% for the year, and the trend is estimated to continue for 2010 as well. The impact of the recession was much more severely felt in developed and mature markets of North America, Japan and Europe, featuring high double-digit declines in 2008 and 2009. On the other hand, developing economies namely Latin America and Asia-Pacific fared relatively better, recording marginal fall in growth rates. Stocks of unsold inventory piled up in warehouses, as sales of motorcycles regarded as pleasure equipment in the Western region almost stagnated. Several dealers resorted to deep discount initiatives in order to overcome the scenario. Most of the 2-wheeler companies either reduced, canceled or postponed new product/model launches during the slowdown period. With the global economy beginning to turn around, there is demand for new models from customers, and motorcycle OEMs

face a challenging task of restructuring their old business models to suit present day needs. The Asia-Pacific market literally reigns over the other world markets, as stated by the new market research report on Motorcycles, Scooters & Mopeds. AsiaPacific, home to vast, untapped and fast growing markets of China, India, Indonesia, Taiwan, Vietnam, and Thailand presents a healthy picture for the global two-wheeler industry. AsiaPacific also continues to drive the future demand for motorcycles and scooters, projected to trail blaze ahead at the fastest growth rate through 2015. Rapidly evolving markets such as The Middle East, Latin America and Africa also offer tremendous growth potential in the near future. The Motorcycles segment comprises the largest and most popular category, accounting for a major share of the global two-wheelers industry. Demand for motorcycles far exceeds that of scooters and mopeds, the trend reflecting the highest compounded growth rate anticipated for the segment. The global market for motorcycles, scooters & mopeds is highly fragmented, with the players making continuous marketing efforts to sustain market shares and broaden their customer base. Key participants profiled in the report include Bajaj Auto, Jialing,Lifan, Hero Honda,Honda Motor,Honda Italia , Honda Motorcycle & Scooter India Kawasaki,Piaggio,Suzuki Motor, T r i u m p h Mo t o r c y c l e , Y a m a h a . Global demand to rise 7.6% annually through 2013 Global demand for motorcycles is forecast to rise 7.6 percent per year through 2013 to 114 million units, spurred by rising standards of living in poorer developing parts of the world, which are making motorcycles a more affordable alternative to walking, bicycling or using mass transit. Higher energy prices, along with a rebound in economic growth after a recessionary period that began in a number of nations in 2008, will also contribute to motorcycle market gains in both developing and developed areas. Product sales will expand at a slower pace in value terms, climbing 7.2 percent annually to $66.6 billion in 2013, because of an expected decline in salesweighted prices. Some offsetting support will be provided by the introduction of new models

Monthly AutoMark Magazine equipped with sophisticated emissions control systems and increased sales of machines with more features, boosting motorcycle dollar demand. Africa/Mideast, Asia/Pacific markets to grow the fastest The strongest market advances through 2013 will be registered by the Africa/ Mideast region. This will be due to several factors, including the fastest population growth of any region in the world, the lowest median age and the lowest (but climbing) per capita GDP. Population increases and higher standards of living will also help stimulate motorcycle sales in the Asia/Pacific region, which will post the second strongest gains, followed by Eastern Europe (rising from a very small current market base) and Latin America. China alone will account for 55 percent of all additional product demand through 2013, solidifying its position as the biggest national market by far for motorcycles. Growth is also expected to be healthy in lower volume markets such as Nigeria, the Philippines, Vietnam and Indonesia. Product demand will expand at a more moderate rate in developed countries, where automobiles and other light vehicles are the primary form of personal transportation, and motorcycles are generally considered to be luxury goods used for recreational purposes. Nevertheless, high energy prices, city center congestion (especially in Western Europe) and personal income growth will provide some impetus to motorcycle sales advances in these areas. Electric motorcycles to lead gains, ICE types to remain dominant Electric motorcycles will register the strongest market growth of any major product type. Demand for battery powered bicycles, scooters and other two-wheelers will be driven by their generally lower purchase prices, low cost of operation and lack of harmful emissions. However, ICE motorcycles will continue to account for two-thirds of all sales. ICEs are a proven, widely accepted motorcycle power plant technology, and improvements continue to be made in engine d esigns. In addition, ICE motorcycles can travel further before needing to be refueled, and larger ICE models are more powerful than most currently available electric motorcycles.

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Exclusive Article by Ali Hassan

Monthly AutoMark Magazine

APMA supports move to open bike market for new entrants PAMA, PAAPAM resent methods and tactics to lure new players

In a surprise move, the government’s various ministries held separate meetings with the bike assemblers rather than calling their representative bodies like Pakistan Automotive Manufacturers Association (PAMA) a nd P ak i st a n As so ci at i o n o f Automotive Parts and Accessories Manufacturers (PAAPAM). This is being done at a time when new trade policy (2012-2015) announcement is due this month. Instead of PAAPAM and PAMA representatives, the Bo ard of Investment (BoI), Secretary Ministry of Industries and Commerce Secretary held meetings with the Chinese and J apanese bik e assemblers o n September 5, 2012. The Ministry of Commerce sent the invitation for September 5 meeting separately to the stakeholders regarding “protection to motorcycle industry in Pakistan and a new entrant policy.” According to Commerce Ministry’s letter, the ECC is considering proposals to rationalize the tariff protection levels of bike industry and a new entrant policy f or invest ors in motorc ycle manufacturing. The ECC in this regard has set up a committee under the chairmanship of Mr Saleem H. Mandviwalla, chairman Board of Investment. The Committee would present its recommendation to the ECC in the next meeting. The purpose of holding separate meetings with the stakeholders is to take input particularly on eight points which are as follows: A) Existing trends of bike production, prices, technology, consumer choice,

quality issues, export potential, indigenization, smuggling, competition issues in Pakistan. B) Types/details of bikes being assembled. C) Rate of return and profit margins. D) Policy constraints for new entrants. E) Fixed cost estimates for new entrants F) Licensing and SRO related issues for new entrants. G) Optimum level of tariff protection across the value chain of bike and rationale for change/status quo and H) Incentives which the companies got at the start of operation in Pakistan. However, the a representative of a leading Japanese bike assembler presented his views in the meeting which can be termed as pro-industry but chairman Association of Pakistan Motorcycle Assemblers (APMA), the body of Chinese bike assemblers, Mohammad Sabir Shaikh gave a hostile view negating the views of Honda and other assemblers.

Chairman PAAPAM Syed Nabeel Hashmi had complained Saleem Mandviwala for ignoring the Association on September 5 meeting on the issue of new entrant. In a letter to Mandviwala, he said PAAPAM must be represented in all consultative meetings as being the representative body of vendors, it has a position on new entrants policy and is a major stakeholder.

Sabir Shaikh said he was invited as the Chief Executive of Sitara Auto Impex and not as the chairman of APMA. He said he fully supports the government’s plan to reduce the import duty on completely built up (CBU) bikes to 35 from 65 per cent which will certainly not prove devastating for the local industry. He claimed that the market demand for two wheelers in the country will remain stick to two million per annum and the cut in duty on CBU bikes will pave the way for import of only 30,000-35,000 units a year. “I think this little volume of import is unlikely to give a tough time to the local industry and certainly it will not result in eroding a big market share of leading bike assemblers’ sales,” he said while ruling out import of bikes to exceed 50,000 units a year. He said cut in duty will provide an opportunity for the people to purchase new innovative bikes which are popular in world markets. As for the parts problems for these bikes, he said rising volume will certainly lure people to import more parts while some people may set up vending industry for ensuring parts availability. He also supported the government’s plan of attracting new entrants through duty concessions and claimed that Chinese bike makers also support this move. This move will also provide an opportunity to the bike lovers to own top quality new design bikes. Meanwhile, the representative bodies

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Exclusive Article by Ali Hassan - continued of motorcycle manufacturers and the vending industry have strongly protested against what they termed “Stage Managing” of the consultative process by the sub-committee formed by the ECC to engage in a constructive process of consultation with the stake holders in the motorcycle industry and report back with specific facts. What the Committee with Saleem Mandviwala, Chairman BoI in chair, did was a class act in manipulation of the whole process of “consultation”. The ECC on Ministry of Commerce summary regarding additional and unprecedented concessions to a controversial new entrant and reduction in CBU import rates constituted a committee to consult with all stake holders. This was second such attempt as earlier a commit tee formed on same agenda met only Yamaha r e p re s en t at i v es an d ma d e i t s r ecommend at i ons in iso lat ion . The meeting chaired by Mandviwala once again tried to hijack the process of consultation ordered by the ECC in its meeting of August 16. Only two assemblers were called and the representative of Chinese bike assembler invited to complete the consultative process by the high powered Committee. With heavy weight bureaucrats like Shafqat Naghmi, Secretary Industries an d Mun ir Qu re shi, S ecret ary Commerce in attendance, the political appointees successfully managed the show to create an argument for themselves. It can now be reported that the industries point of view has been dovetailed into the proposal. The industry has reacted strongly. In letters written by separately by PAMA and PAAPAM, the representative bodies of OEMs and the vendors respectively, have now approached Dr Hafeez Sheikh, Minister of Finance, seemingly the sole sound head in the economic management committee of the Government, with strong worded protests. They have demanded that they may also be made a part of the consultative process. The industry has increasingly found itself being isolated from policy formulation as ‘behind the desk’ think tanks have hijacked the whole process. Proposals like promoting completely built up (CBU) units instead of manufacturing locally and promoting imports at the cost of local vending

industry has undermined investor confidence. A vendor said that it is very unfortunate that in Pakistan policy initiatives come as knee jerk reaction to situations. 'As a result most of the time policies

hurt, instead of supporting the growth of the industry and economy,' he said, adding that the motorcycle sector is a rare success story and it should not be made subject to such detrimental decisions. In addition to other losses to the local industry, this status would severely disturb the level playing field in the business market of Pakistan, hence to bring in a huge wave of unemployment. The controversy has sprouted from the demand of a blue eyed would be investor of BoI Chief who is out to get his proposal through the ECC at any cost – even at the cost of a rare success story industry that is the motorcycle industry. This particular proposal has been turned down from every quarter but has now become a symbol of dirty politics and maneuvering prevailing over logic and facts. Logics like ‘bringing down CBU rate of duty to 35 from the present 65 per cent will improve competitiveness of the industry’ and building policy on farce like ‘Pakistan does not make motorcycles over 70cc’ have had the industry

FROM

65% TO

35%

wondering what these policy initiatives really aim at Islamabad is rife with speculations that another scandal is fast maturing in the corridors of the Government. Another vendor said 'this is going to demoralize the motorcycle vending industry that supplies over 90 percent of t he bi ke part s to the local manufacturers.

Monthly AutoMark Magazine He was of the view that this step of appeasing a foreign company will bring nominal foreign investment and no new technology because some provisions of the status granting draft have been devised in such a way that the new entrant does not necessarily have to set up its own manufacturing facility here in Pakistan and may assemble bikes by renting any of the local existing facilities. So, a very important question arises here: are our honorable bureaucrats, involved in decision making, annoyed at the robust growth shown by local motorcycle industry during a period when the entire manufacturing sector remained in turmoil? No doubt, motorcycle production in Pakistan has increased by leaps and bound in past 12 years. In fact Pakistan has emerged as global leader in the production of 70cc motorcycles, and now 125cc bikes are also being exported. The industry developed with very heavy investment, has achieved more than 90 percent localization level at the uniform rate of 15 percent on CKD imports. One of the brands Honda is exporting motorcycles to Afghanistan and Bangladesh and looking at African market. This remarkable growth of the industry (presently, motorcycle production is 1.6 million per annum with 37 per cent growth over a period of last 10 years) has been achieved against the undue intervention by the g ove rnment i n the anno un ced Auto Industry Development Plan (AIDP). Despite the fact that this perilous move has been vehemently opposed by all the existing, over 100, bike manufacturers of the country as well as around 700 motorcycle parts vendors, the government is firm in its stance just to facilitate a particular investor at the expense of huge local investment. This issue has also created a quite visible line of difference between the important government departments. Ministry of Industries, Engineering Development Board and Federal Board of Revenue have been opposing this move, while Board of Investment and the Planning Commission are in support of it. Those departments supporting this move have deliberately ignored the fact t hat almost all the motorcycle manufacturers operating in Pakistan carved a share in the local market without any special concessions.

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Exclusive Article by M. Owais Khan on cars issue

Monthly AutoMark Magazine

PAC’s outburst on car makers fails to bring any results The last month PAC meeting holds a lot of importance in which car assemblers came under fire but Indus Motor Company tried to pacify the situation terming press reports of the PAC meeting as wrong. PAC was told that the car assemblers’ cartel is blocking the reduction in car prices. Though the meetings of public accounts committee (PAC) on various sectors does not produce any instant results, it is at least an effort to bring into limelight the corruption and malpractices of various government departments, industries and business houses to the print media for the information of general public. The Committee, which comprises d is ti nguished an d exper ience d parliamentarians, has the responsibility of oversight of executive. It has nine members from the opposition and the rest from the ruling party, coalition partners and independents. According to website of the PAC, the Committee examines the accounts showing the appropriation of sums granted by the Assembly for the expenditure of the Government, the annual finance accounts of the Government, the report of the AuditorGeneral of Pakistan and such other matters as the Minister for Finance may refer to it. The PAC, an important parliamentary body, ensures accountability and transparency in the financial matters of the government. This website is part of the efforts to bring in more transparency into our work, and therefore we invite citizens of Pakistan to give their feedback to help the Committee to fulfill its C onst it uti onal resp onsi bil it ies . However, an immediate action on the findings of the PAC can definitely bring a positive change in improving the efficiency of various departments and industrial sectors but unfortunately it was not happening due to various reasons like some political pressures. On many occasions after the PAC meeting, a committee or sub-committee is formed to discuss the issue at length and to come up with more material and feedback in next meetings. Sometimes delaying tactics are adopted in order to just fulfill an obligation of taking up the issue in the PAC and

leaving the issue for days and months whi ch later becomes obsolet e. For the last one and a half years, the automobile assemblers were the target of the sub-committee of the PAC where almost every member of the committee has been raising fingers on the auto makers’ cartel for their wrongdoings. But the outcome of these meetings have so far failed to produce any desired results for consumers regarding any cut in prices of cars, curtailing practice of charging premium on spot buying, deliberate move of slowing down production of cars despite having high production capacity etc. Not only the PAC, but the relevant ministries have been pressurizing the assemblers for reducing the cars prices for the last four years but they failed. Assemblers continued to push up the prices without any fear linking it to losing value of the Pak Rupee against the Yen and Dollar and high prices of raw materials. However, market people said that the government tried to punish the assemblers to some extent by allowing the used cars of five years old under various schemes thus eroding the market share of the power cartel of assemblers. It worked with the arrival of 55,000 used cars of various engine capacity in 2011-2012 as compared to 17,000 units in 2010-2011, but car sales also grew in the last fiscal year. On August 31, 2012, a Customs General Order (CGO) had taken the used car

dealers by surprise which has axed the legal, social and ethical right to obtain the depreciation at one per cent per month on used car imports. The depreciation was calculated from the date of registration abroad up the date of entry into Pakistan. Besides, the registration book/export certificate issued by the competent authorities of exporting countries proves genuine/authenticit y of vehicle throughout the world. The registration book/certificate was necessary to produce for the depreciation in taxes/import value at the time of clearance as per previous CGO. As per new CGO, there is no need to produce the registration book/export certificate for the clearance of used vehicles. It is feared that stolen, theft and polluted vehicles may find way into Pakistan due to no check/authenticity of vehicles.

All Pakistan Motor Dealers Association chairman H.M. Shahzad sought immediate withdrawal of this CGO and in case the FBR wants to amend it then the depreciation shall be allowed on old and used vehicles for the period between the first registration abroad and the date of entry into Pakistan. He said the date of first registration abroad shall be determined from the regist rat ion book or an export certificates issued in lieu of registration book. In case of the loss of the documents, the depreciation shall be calculated from the first day of January of the year subsequent to t he manufacture of the vehicle. The new CGO, as per H.M. Shahzad, will make the used imported cars costlier due to higher incidence of duty thus benefitting the local car assemblers. On the contrary, the car assemblers and their vendors are unhappy over the new

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Exclusive Article - continued

Not only the PAC, but the relevant ministries have been pressurizing the assemblers for reducing the cars prices for the last four years but they failed. Assemblers continued to push up the prices without any fear linking it to losing value of the Pak Rupee against the Yen and Dollar and high prices of raw materials. CGO saying that the industry will only benefit when the government will completely ban the import of used cars in the country, otherwise the new CGO holds no significance for them. To some extent, the CGO will definitely work for the local assemblers as buyers will shift towards locally assembled cars after witnessing increase of Rs 60,000100, 000 i n d if ferent used car models. The new CGO is a surprise move when the new trade policy for 2012-2015 is planned to be announced this month and the used car dealers and the government were holding negotiations on increasing the age limit of used cars to seven from five years, removal of 50 per cent regulatory duty on used cars above 1,800cc and allowing commercial import of used cars. In view of the timing of issuance of the new CGO, market people said that it has been issued to benefit a vested interest group only and may be taken back after 15-20 days when the vested interest group w ou ld ut il iz e the C GO . Coming back to PAC meetings, the last month PAC meeting holds a lot of importance in which car assemblers came under fire but Indus Motor Company tried to pacify the situation terming press reports of the PAC meeting as wrong. PAC was told that the car assemblers’ cartel is blocking the reduction in car prices. As per media reports, secretary industry ministry Shafqat Naghmi told the subcommittee of the PAC that a mafia and cartel in the auto industry was resisting all moves to reduce the prices of cars. The sub-committee, which met under its chairman Hamid Yar Hiraj, at the Parliament House, is tasked to formulate a policy for bringing prices at affordable levels. Hiraj observed that the premium charged on vehicles was the main curse and its elimination was essential to reducing the prices of cars. He revealed that in the past whenever the issue of lifting the ban on reconditioned cars of three years old came up for discussion, the local industry always struck underhand deals by providing five car quotas to parliamentarians.

He said the government purchased 50 percent of Toyota vehicles produced in the country, 35 percent of Honda cars and Suzuki vehicles and thus helped out the auto sector. The secretary industries opined that the supply of cars was deliberately restricted to earn premium, as only 12,000 Honda cars were supplied last year against the demand of about 20,000 while Toyota supplied 50,000 vehicles to the consumers against the demand of 55,000 vehicles. The representatives of car manufacturers told the sub-committee that in India there was 10 percent tax on cars while in Pakistan it was 50 percent. Officials of the ministry of industries told the Sub-committee that only 1.3 percent of the population owned cars in Pakistan, among the lowest in the world. The officials of the Engineering Development Board told the committee that due to maximum protection provided to vendors, the quality of spare parts was poor. Hamid Yar Hiraj directed the secretary ministry of industries to seek working papers from all sectors of the auto industry within 15 days and bring them to the next meeting so that a policy could be formulated. The next meeting of the sub-committee will be held this month. The agenda of the meeting was to prepare a policy for reduction of prices to affordable level for the general public including deletion programme related to production of cars, buses, tractors and motorcycle etc. Cars manufacturers sent their middle ranked representatives to attend the meeting, citing personal engagements on the eve of Eid-ul-Fitar. These middle ranked employees of the companies failed to give appropriate reply on questions raised by the public representatives especially on quality and giving bribe for unjustified benefits. Hamid Yar portrayed local cars assembles and importers as "Mafias" which heavily invest at top level including Parliamentarians to get po li ci es o f t hei r ben efi t s. No representative of cars' importers was p r e se n t i n t he me e t i n g. T he

representatives of Honda and Toyota did not respond to the allegations and preferred to remain silent. "As Minister of State for Commerce, I witness that Ministers and members of Parliament were given quota of cars when cars companies were charging 'on money' at Rs 100,000 to Rs 150,000 per car," he continued. According to him, 'on money' and delayed delivery of cars were the main reasons of opening second hand cars import. He enquired from the representative of Indus Motors Yasir Niazi that why his company has made the politicians corrupt. Indus Motors representative did not reply to this scary allegation. In a surprise move, the Indus Motor Company (IMC) spokesman welcomed the initiative of a sub-committee of PAC to consult the stakeholders regarding the challenges faced by auto industry. The spokesman said that the meeting was in fact held in a very cordial environment and all the stakeholders in the industry vowed to work jointly to formulate a long term policy for achieving volumetric growth for the economic benefit of the country. He said that the issue of malpractices in the industry was raised in the meeting but the auto industry representatives instantly clarified the issue in the meeting and PAC and other stakeholders were satisfied with their argument. While clarifying the disparity between the sales and capacity figures, the spokesman said that to keep the customer satisfaction the top-most priority, IMC gone extra mile by working extra hours and improving the production process which resulted in timely delivery of the orders and at times there were cars available at the floors of showrooms which was duly advertised in newspapers and TV Channels also. Yasir Niazi, Resident Director IMC, particularly hailed the suggestion of the chairman sub-committee who suggested that auto sector work jointly with the ministries of industries, commerce, and planning to deliver the best value proposition keeping the interest of the customer in mind.......

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Profits at Toyota’s Pakistan Affiliate Hit All-Time High in 2012 The company sold over 55,000 cars during the financial year that ended on June 30, 2012, its highest ever for a single year. Both revenues and profits were the highest in the company’s history in Pakistan. Global automobile giant Toyota’s affiliate in Pakistan announced that the 2012 financial year was its most profitable ever in the country, earning Rs4.3 billion in net income, a 57% increase over the previous year. Indus Motor Company – a company that is 37.5% owned by Japan’s Toyota – announced its annual results on last month. The company’s revenues rose by nearly 25% to reach Rs75 billion, largely on the back of increased car sales,

though higher prices were also a factor. The company sold over 55,000 cars during the financial year that ended on June 30, 2012, its highest ever for a single year. Both revenues and profits were the highest in the company’s history in Pakistan. Investors in Indus Motors are likely to be pleased by the management’s decision to announce a Rs24 per share dividend, bringing the total annual

Long-term policy needed for auto industry growth Indus Motor Company (IMC) hailed the statement of the secretary ministry of industries about the need to look at the impact of imported vehicles on the local auto industry. While commenting on the meeting of the public accounts committee (PAC), the IMC spokesman emphasised that in order to achieve large volumes and stable growth in the industry, it is extremely important for the government to support the auto industry with longterm policies. However, he rejected the claim that the meeting had taken place for the PAC and other stakeholders to criticise the local auto sector for malpractices in the auto industry. In fact, the spokesman said that the meeting was held in a very cordial environment and all the stakeholders vowed to work together to formulate a long-t erm policy f or achi ev ing volumetric growth for the economic benefit of the country. “The issue of malpractices in the industry was raised in the meeting, but the auto industry representatives instantly clarified it. Thus, the PAC and other stakeholders were satisfied with their arguments,” he added.

In view of the disparity between the sales and capacity figures, the spokesman said, “To keep the customer satisfied, which is the top-most priority of IMC, it has gone an extra mile by working extra hours and improving production that has resulted in timely delivery of orders.” The IMC hailed the suggestion of the subcommittee’s chairman, who said that the auto sector should work together with the Ministries of Industries and Commerce and plan to deliver highest value propositi on, keeping the customer’s interest in mind. The IMC had given assurance to the chairman that the government needs to work with the auto industry to abolish the phenomenon of ‘own money’. In this regard, a working paper is to be devised in consultation with the auto industry to fight this phenomenon. A failure on this account would be a failure of both the government and the industry. “We welcome the suggestions of the committee that all the industry’s stakeholders need to work for providing best value, good and fair competition, and fight mafias plaguing the industry,” the IMC spokesperson add ed...

payout to Rs32 per share. Given the company’s earnings per share of Rs54.74, that comes to a payout ratio of 58.5%. Indus Motors assembles the Toyota Corolla, easily the most popular sedan in the Pakistani market, made even more attractive by the company’s wide network of dealerships and aftersales service points, which help the car retain a high resale value. As incomes in Pakistan’s urban middle class have recovered after the 2008 financial crisis, sales of the sedan have bounced back to precrisis levels. Nonetheless, analysts point to several dangers to the company’s business. “Demand for new cars in Pakistan will decline, going forward,” said Atif Zafar, a research analyst at JS Global Capital, an investment bank. “Local car manufacturers are expected to remain under pressure from competition with imported used cars.” Nonetheless, sales figures for new cars have been improving, reaching a four year high of over 157,000 units in 2012, an almost 23% increase over the previous year. Indus Motors share of that is almost 35%. Officials at Indus Motors concurred with JS Global’s assessment that new car demand had slowed in recent weeks, largely due to an expectation among car buyers that the government will relax rules on the import of used cars. Low demand is forcing local manufacturers to cut back on production, they said. Indus suspended its production for four days in July and plans six offdays in August to offset the problem of slow demand. While car importers vow to double car imports this year, local carmakers are continuously pressuring the government to reduce the agelimit of used car imports from the current five years to three years. Pakistan imported 55,000 cars in fiscal year 2012, a massive increase over the 18,000 cars in previous fiscal year...

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Vehincle Productin Figures - Update

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note: only pama members

source: pama website

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Exclusive Article by Ali Hassan on Motorcycle Sector

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Government trying to lure new investors in bike segment On Euro II models, he said Pak Suzuki is the only company in Pakistan which has followed Euro II standards in all products effectively while other assemblers have not followed it. Atlas Honda has followed the Euro II standards but market sources said that Honda CD-70 does not compliant with Euro II specifications and standards.

A heating debate is going on between the government and stakeholders of bike industry regarding the old technology of 70cc bike. The government is making serious efforts to provide a change to the bike lovers by luring new investment. The recent meeting of Yamaha executives with Prime Minister Raja Pervez Ashraf and the government’s aim to provide a big relief to the investors had caused a lot of anxiety among the existing bike players especially the maker of Honda bikes. It seems the government especially the Board of Investment (BoI) looks determined to give a tough time to the existing bike makers. The government as well as many people believes that the 70cc bike model has become outdated as it does not exist anywhere in the world except Pakistan. Consumers are running the 1992 model of 70cc made by Honda Atlas which was further followed by the Chinese bike makers. Both Honda and Chinese bike assemblers have changing stickers of fuel tank, side covers, speedo meter design and indicators rather than giving a complete new look to the 70cc bike of 1992 model. Honda sales is mainly targeted in rural areas and some cities of Punjab where bike snatching and lifting is far low than in Karachi where Honda enjoys hardly 10 per cent of its total bike sales in Pakistan. Honda’s resale value has made

it a hot commodity for the snatchers. On the contrary, growers and farmers are not bothered over Honda’s high price but people in Karachi prefer Chinese bike due to low price which is Rs 20,000-25,000 less than Honda CD70cc. Some assemblers tried to change the fuel tank and side cover designs of 70cc but could not get a good response as the assemblers also increased the price of introducing a new design. However, the government has other plans to attract new investors in bike segment. In almost every forum and meetings with the government the existing bike assemblers are warning the government regarding total collapse of the two wheeler industry, vendors besides massive employment in case hefty duty concessions on CBU imports are offered to the new entrants. T he as sembl er s sai d t hat t he government should make all its efforts to attract foreign investment but it should not ignore the fundamental concept of a level playing field for all existing and new players. They believe that the government should avoid offering duty concession to a single player but it should consult properly with the stakeholders before making any drastic changes in the tariff which will ruin the existing bike industry. Pakistan is among the top 20 motorcycle manufacturing countries in the world producing quality two wheelers of international standards ranging between

70cc to 150cc based on modern technology. Over 72 two wheelers makers in Pakistan are producing quality bikes to not only meet local demand but also to export to some other countries. All the local motorcycle manufacturing companies in Pakistan are making motorcycles with carburetor based engines as they are easier and cheaper to maintain as compared to EFI based. The local motorcycle manufacturers criticized the misleading statements given by some quarters and said EFI too is not new technology. They pointed out that EFI technology is around 20 years old. They said EFI may offer slightly better emissions but it not only costs more initially but is also expensive to maintain, keeping it out of local buyers' reach. The issue is its high maintenance cost especially when the quality of fuel is not good. Even Yamaha is making carburetor based motorcycles in many parts of the world including Brazil and India. They also criticized statements that Pakistan is not making motorcycle of 100cc and 125cc saying around 300,000 bikes with 100cc and 125cc engines were manufactured in Pakistan in FY 201112 with a 30 to 35 per cent increase as compared to previous year.

APMA’s plus/minus views on 70cc bike Chairman Association of Pakistan Motorcycle Assemblers (APMA) offers a different view on various aspects and challenges the local industry is facing.

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Some 16 assemblers produce more than 10,000 units a year while 52 assemblers roll out less than 10,000 units a year in which some are producing less than 1,000 units. It also shows that motorcycle industry is surviving on only one model (70cc) which is the main reason of tough competition among the assemblers. Current position of bike industry in Pakistan Despite the fact that 1.6 million units each sold in 2011-2012 and 2011-2011 but according to Sabir Shaikh these figures cannot be termed accurate official figures as 500,000 units in each fiscal year were either missing or undeclared. Giving the reason, he said that for the last two fiscal years the cost of manufacturing of 70cc bikes is near about Rs 40,000 and the wholesale/ex factory price is also Rs 40,000. The industry was literally running on a very market competition due to huge number of players and many industries did not make handsome profit. Out of 1.6 million units, he claimed that sales of 70cc bikes plunged to 1.35 million units in 2011-2012 from 1.4 million units in 2010-2011 but it still shows that more than 80 per cent sales is based on 70cc units. It also suggests that localization and development in Pakistan was witnessed in only 70cc bikes. Over 72 assemblers are involved in manufacturing of 70cc bikes whose parts are interchangeable and only brand names are different. He also claimed that Pakistan is the only country where 70cc bikes are being manufactured while it is discontinued in other parts of the world. “The 70cc bike technology is actually 40 years old,� he added. Atlas Honda holds the top position in 72 assemblers with production of 588,106 units in 2011-2012 while three assemblers (Unique, Super Power, United etc) produce more than 100,000 units. Some 16 assemblers produce more than 10,000 units a year while 52 assemblers roll out less than 10,000 units a year in which some are producing less than 1,000 units. It also shows that motorcycle industry is surviving on only

one model (70cc) which is the main reason of tough competition among the assemblers. Besides, the issue of re-sale is also very important. People especially in rural areas and in Punjab prefer Honda because of quality and durability and high resale value while in Chinese bikes, only few models like Unique, Super Star, Super Power, Hi-speed, United etc hold good resale position. Many customers, who have purchased other than low resale value models, face problems when they try to purchase new bike as they do not get good price of their previous models.

Use of smuggled parts in bike assembling There is a lot of disparity in the price of complete bike engine. As per current parameters of Engineering Development Board (EDB) and the Federal Board of Revenue (FBR), a Chinese engines costs Rs 14,500 while engines arriving through commercial imports or smuggled costs Rs 11,000 only. Sabir said those bikes (undeclared) having smuggled engines also deprive the government from sales tax. The customers are actually the losers as they do not know whether the assemblers have put an original and full duty paid engine or they are paying high price for a bike having smuggled or undeclared engines. Market sources said that this kind of practice is not possible without the support of the government departments. On Euro II models, he said Pak Suzuki is the only company in Pakistan which has followed Euro II standards in all products effectively while other assemblers have not followed it. Atlas Honda has followed the Euro II standards but market sources said that Honda CD-70 does not compliant with Euro II specifications and standards. However, the consumers, who have already witnessed frequent increase in Japanese assembled bikes, are paying

the price of Euro II transformation especially in over 100cc models of Suzuki. One can easily purchase a used Suzuki FX at this price of over Rs 80,000 without Euro II and over Rs 86,000 on Euro II bikes.

Policy for bike industry The bike industry like other auto sectors were running under deletion programs prior to 2005 and in 2006 Tariff Based System (TBS) was introduced for five years. The TBS has has expired on June 30, 2011. Even its extension has also expired in June 30, 2012. Currently the bike industry and other sectors also are running on their own and there is no policy. There is a huge duty on import of CBU bikes in Pakistan which is 65 per cent while under TBS it should have been 40 per cent till June 30, 2011. Import duty on localized parts is 47.5 per cent which is very high but duty on non localized parts is very low at 15 per cent. Sabir Shaikh said there should be 25 per cent duty on both localized and non localized parts while CBU rate of duty should not exceed more than 35 per cent. Currently Pakistani bike market is 2 million and in case CBU duty is reduced then the market will remain at 2 million but import of two wheelers may reach 50,000 units. However, CBU duty cut will open new avenues for import of a variety of bikes and models and in case their demand goes up then investors will go for its localization.

He said there is a need to open the two wheeler market because checks and balance in the last 10 years have failed to boost localization which is evident from rising arrival of smuggled parts, full engine imports and thriving mis-declaration. The industry may flourish in case it is made free from duties and taxes. People will get variety of bikes.

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Tractor manufacturers using technology of 50s: EDB Government should gradually reduce protection given to the auto industry by reducing the tariff on Completely Built Units (CBU) to ensure availability of imported substitutes for consumers at affordable prices The Engineering Development Board (EDB) Chief Executive Officer Aitzaz Niazi has said that local tractor manufacturers are using technology of 50s, producing substandard and low quality tractors at very high prices in the country. “The EDB is considering to invite foreign companies including Belarus Tractor Company as new entrants in tractor manufacturing in Pakistan to facilitate the customers to get tractors of good quality at competitive rates,” Niazi told a meeting of the committee. As per official sources, the agenda of the meeting of the Public Accounts Committee (PAC), held recently in Islamabad, was to prepare a policy for reduction of prices of tractors, cars, buses and motorcycle etc to affordable level for the general public. Sources said that participants of the meeting criticised local tractors and cars assemblers and vendors terming them over-protected due to their unfair prices, substandard material and greasing palms at various levels for getting generous benefits. EDB CEO criticised local tractor and its vendor industry for manufacturing parts of low quality because of over protection. “Government has to eliminate over protection to vendor industry so that consumers could get international quality parts at competitive rates,” he added. During the meeting, Riaz Pirzada, federal minister for technical training, also criticised the local tractor manufacturers for selling substandard units, adding that Belarus tractors are more sustainable than local tractors. The participants of the meeting lamented that the cabinet had slashed the General Sales Tax (GST) on tractors from 16 to 5 per cent in order to enhance its production and to decrease the skyhigh prices of tractors in the country.

This revolutionary and pragmatic initiative in the favour of farmer and agriculture of the country was taken last year by the then Senior Federal Minister for Industries Chaudhry Pervaiz Elahi. But the benefit of huge cut in GST was not passed on to the customers, as no price of tractor was slashed. The participants were of the view that mechanisation of agriculture was the need of the hour as low-priced farm machinery attract more and more farmers to upgrade their old and inefficient farming techni ques. They said that Deputy PM had also directed the representatives of ZTBL to resume bank leasing of the tractors on easy installments to farmers, as suspension of bank leasing on tractors was also one of the reasons of drop in sales of tractors. The meeting was told that this decrease in GST could cut the prices of tractors by Rs60,000 to Rs90,000, boosting the sales of tractors and revenues of the Government. It is relevant to mention that the

government had imposed GST at 17 per cent on tractors in March 2011, which was implemented in April. Manufacturers claimed that the production of tractors since March 2011 had also declined drastically from over 72,000 units to around 20,000 units per annum. While expressing deep concerns over rising prices of locally made vehicles including tractors, participants urged the government to abolish protections for smashing powerful lobby of auto industry in a bid to reduce prices of vehicles. The y expr essed dismay over government’s slow move to abolish protections extended to the auto industry in order to bring down the prices of locally made vehicles. They said the abolishment of protections extended to the auto industry was essential for smashing the lobby of auto industry which was so powerful that even the government appeared unable to make a policy against their vested interests. “Government should gradually reduce protection given to the auto industry by reducing the tariff on Completely Built Units (CBU) to ensure availability of imported substitutes for consumers at affordable prices,” they told the meeting, adding that there was also a need to rationalise tariffs applicable on The representative of auto parts industry, contested the arguments by saying that Honda uses most of the local parts whereas the share of Toyota and Suzuki in using locally manufactured parts is less. According to them, the price of locally assembled cars would have been Rs3 million instead of Rs1.5 million in case local parts are not used.

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Automotive Sector - Update

Int’l buyers prefer import of Pak tractor parts Tariq Nazir, CEO of Fabman Engineering, while criticising the statement of EDB Chief Executive Officer who had said that local tractor manufacturers had been using technology of 50s and producing substandard tractors in the country, observed that tractor is a machine not a car, whose models are changed every year. In engineering sector, only tractor parts makers have managed to export their components throughout the world, including Europe, America, Africa, Sri Lanka, Bangladesh, Afghanistan and India amidst severe energy crisis, security challenges, political instability and world’s highest interest rate in the country, tractor industry representatives stated. Mumshad Ali, CEO of RK Gears pointed out that world’s renowned tractor manufacturing companies preferred to import parts for their tractors from Pakistan owing to their high standard and low cost to make cost effective tractors in world market. He said that Pakistan is currently exporting tractor parts, including gears, engine parts, transmission parts, rims and radiators. Appreciating the performance of local tractor parts makers, who have presently introduced new technology power steering, turbo charge engine, green engine, electronic display and power brake, said that several foreign companies have failed to compete with Pakistani tractor due to its less cost. For example, John Den, a US tractor company has flopped in Pakistan to compete local tractor makers, as they were not using domestic cheaper comp o nen t s. Th ou gh c omp any imported Chinese tractor parts at zero d ut y b ut s t i l l t he y re ma i ne d uncompetitive to operate. The EDB, which should be a bridge between the public and private sector enterprises, giving them guidelines to set-up industry and facilitating them regarding latest techniques, has absolutely failed to achieve its target, as its chief has no experience of industry. It is claimed that he is ignorant of local engineering issues, which has witnessed a co nsid erable growt h desp it e unfavourable business-doing conditions

in the country. Opposing the extension of Aitzaz Niazi, who is waiting for another term as Chief Executive Officer, Engineering Development Board (EDB), he appealed to the government to appoint a person from the engineering sector who should have enough knowledge of auto industry. On the other hand, EDB CEO criticises local companies for old technology but the board itself is main hurdle in innovation and research, as earlier it delayed approval of Al Ghazi tractor’s advanced model of 4/4 for at least one year for unknown reasons, Mumshad said. Saeed Iqbal, Director Sazgar Engineering, said that if Pakistan tractor industry is compared with the Indian industry, it is just 20 per cent of the India’s huge engineering sector but Pakistan’s tinny industry is producing tractor just for Rs 600,000 while the same product is being sold in Indian market at Rs1.2 million. “This shows that Pakistanis are manufacturing tractors at 50 per cent less price than India,” he reiterated. Tractor is a most economical agriculture tool in Pakistan as every successive government have given permission to import of tractors but every time it failed due to high price difference. Presently, there is no considerable import of tractor in the country despite the fact that tractors are being imported on zero duty, indicating that customers are availing the facility of cheaper and quality

tractors at their doorstep, he claimed. T ari q N az i r, C EO o f F ab man Engineering, while criticising the statement of EDB Chief Executive Officer who had said that local tractor manufact urers had been usi ng technology of 50s and producing substandard tractors in the country, observed that tractor is a machine not a car, whose models are changed every year. He said that world noted companies are still producing the 1960s model even in Europe. He said that in Pakistan landholding is not huge which requires heavy and modern technology tractors and owners can also afford it. He said that in Europe and the USA, the minimum landholding is 500 acres and their cultivators can afford the modern and costly tractors. Usman Malik, Kortech CEO, welcomed foreign companies including Belarus Tractor Company in Pakistan, saying that it is in the interest of vendors, as their production and sale will rise due to arrival of new OEMs in the country. Kortech CEO called for measures to overcome energy crisis, security challenges and political instability. He said that if these factors are not taken into account, they would continue to create problems for the economy in general and for the private sector in particular. He said that the availability of cheaper liquidity to the business community was need of the hour as in the last five years SBP’s tighter monetary policy stance in the name of financial discipline had failed to give any results. He said that the cut in discount rate will not only give boost to local investments because of ease in cost of doing business but foreign investors’ confidence will also go up and they would be willing to put their money in new ventures in Pakistan.......

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Automotive Joint Venture - Update

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Atlas group sign joint venture agreement with Denso Corporation Both Atlas Group and DENSO are renowned names in the manufacturing and marketing of auto products. Atlas Group is best known for manufacturing and marketing of motorcycles and cars in collaboration with Honda Motor Company, Japan.

T he A tl as Gr ou p an d D ENS O Corporation (DENSO) announced the agreement to establish a new Joint Venture in Pakistan. The agreement will strengthen the already close cooperation between Atlas Group and

DENSO with the goal to manufacture quality competitive motorcycle parts in

About Denso DENSO Corporation, headquartered in Kariya, Aichi prefecture, Japan, is a leading global automotive supplier of advanced technology, systems and components in the areas of thermal, powertrain control, electric, electronics and information and safety. Its customers include all the world's major carmakers. Worldwide, the co mp an y has mo r e t h an 20 0 subsidiaries and affiliates in 35 countries and regions (including Japan) and emp loys ov er 120, 000 peop le. Consolidated global sales for the fiscal year ending March 31, 2012, totaled US$38.4 billion. Last fiscal year, DENSO spent 9.5 percent of its global consolidated sales on research and development. DENSO common stock is traded on the Tokyo and Nagoya stock exchanges. For more information, go to www.globaldenso.com, or visit our me d i a w eb s i t e a t www.densomediacenter.com

Global DENSO Overview DENSO, a leading supplier of advanced

automotive technology, systems and components for all the world's major automakers. DENSO operates in 35 countries and regions. Approximately 120,000 employees are active in all aspects of the automotive business -- sales, product development and design and manufacturing -working in cooperation with regional car manufacturers and suppliers to provide the most suitable solutions to regional requirements. Global consolidated sales totaled US$38.4 billion for fiscal year ended March 31, 2012. At DENSO, there is no room for compromise when it comes to the quality of our products. Our focus with all our products is consideration for the environment, safety, comfort, and convenience. We invest approximately 9.5 percent of consolidated sales in R&D activities. Moreover, we go beyond our company walls to help our communities through employee volunteer activities and corporate philanthropy.

the country. The new company, Atlas Hitec (Private) Limited will be established in September 2012. The two Groups intend to launch the project with an initial combined equity investment of US $7.2 million. Commercial production is projected to start from October 2013. The motorcycle industry in Pakistan expects a strong growth. The new company will utilize Atlas Group's abundant business expertise in the country and DENSO's technologies for motorcycle parts, to produce products that meet the market needs in Pakistan. The signing ceremony was held at Atlas Group office, Federation House, Karachi where Mr. Yusuf H. Shirazi, the Chairman Atlas Group, and Mr. Michio Adachi, the Senior Executive Director of DENSO Corporation inked the agreement. Both Atlas Group and DENSO are renowned names in the manufacturing and marketing of auto products. Atlas Group is best known for manufacturing and marketing of motorcycles and cars in collaboration with Honda Motor Company, Japan. It also manufactures various hi-tech components in-house in technical collaboration with leading components manufacturers including DENSO. DENSO is the leading supplier of advanced automotive technologies, systems and components for the world's major automakers and two-wheeler vehicles and has operations in over 30 countries around the world. The venture marks a significant milestone in the collaboration between two Companies as it cements an already excellent co-operation between the two partners.

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Monthly AutoMark Magazine

Road Transport - Update

Improving road transport with India: from coolies to containers The past five years have been quite revolutionary for trade across the Wagah-Attari border using the road route. The rapid pace of developments over this relatively brief period would surely have left the naysayers across the length and breadth of the subcontinent pinching themselves in disbelief again and again. Not so long ago, trade along the said road was still being conducted using rather primordial technology. Until 2007, lorries from either country were not allowed to enter each other’s territory. Resultantly, trucks from both countries would stop short of the actual border, where a team of about 1,500 porters would manually lug goods across the border on their heads; and that too, without crossing to the other side. Only a limited number of items were allowed to be traded through this route: since 2005, Pakistan had allowed for the import of garlic, tomatoes, potatoes, onions and livestock from India, and only allowed the export of cement to India by road. In 2007, there was a groundbreaking bilateral agreement between India and Pakistan, whereby trucks from either side were allowed to cross the border of both countries to reach the customs posts, where they would be unloaded. There were still many problems, however: the border was only open for trade for five to six hours every day, after which trading activity had to be wrapped up, so that the theatrical border ceremony could be held. Trade in very few items was allowed. Furthermore, the Pakistani side often complained that India was still not allowing Pakistani trucks to cross the border, in spite of the agreement; while Pakistan was honouring its pledge by allowing 90100 Indian trucks into Pakistan every day. Arrangements for customs and warehousing also left a lot to be desired on both sides. Nonetheless, the agreement had a positive impact on trade using the road route. In 2007, annual Indo-Pak trade through this route was worth Rs.6.5 billion only. By 2010-11, this figure had risen to Rs 15 billion, which is a significant improvement.

Cue to 2012, and things have taken yet another turn for the better. In March 2012, Pakistan updated its list of importable items, allowing traders to import up to 137 items from India by road. Then, in April 2012, the Commerce Ministers of both countries launched the much-awaited Integrated Check Post (ICP) at the border, with dedicated passenger and cargo terminals and improved customs and immigration facilities. The new set up would allow for no less than 600 trucks to cross the border daily, as opposed to the earlier 150-200. This terminal would also remain open for twelve hours daily. This would definitely have a substantial impact on the extent of the trade. For instance, while 2,800 trucks crossed the border into Pakistan in April 2011, this had already jumped to 3,800 in April 2012; an increase of more than 35 percent in less than a month since the inauguration. The exact figures will become more apparent as the year pass es, b ut In d ian t hi nk- t ank ASSOCHAM has projected that the improved border crossing and Pakistan’s granting of MFN status to India will bring trade to $8 billion annually, from the existing level of $2.6 billion. While there remain concerns about the impact of trade liberalisation on Pakistan’s trade deficit, freer trade will undeniably allow Pakistan to save on the cost of imported raw materials, and also readily provide

a market of over a billion consumers for our competitive industries, such as textiles, cement, marble, leather, plastics and dry fruit. However, as with all developments, there remains room for improvement in the given transport system. I identify here three stages of improvement, which can be implemented in the short, medium and long terms: The short run: While India and Pakistan have gradually worked towards greater trade liberalisation, switching the much-maligned ‘positive list’ of allowed items for a more succinct ‘negative list’ of 1,209 disallowed items in March 2012, yet no more than 137 items may enter Pakistan through Wagah by truck. This is extremely unfortunate, because road transport is, as The Economist notes, just a third of the cost of shipping goods to Pakistan by sea – the usual route for almost all 6,000 items that are traded between the two countries. The medium run: The new ICP has improved the situation considerably, but some further glitches may be removed in the medium term. For instance, Pakistan’s cement exporters have complained of unfair restrictions on the entrance of more than 40 tons of goods in one vehicle. The long run: In the long run, both countries should seriously explore the possibility of allowing trade through more land routes. Pakistan’s provinces of Punjab and Sindh are located in close proximity with several industrial cities in India, such as Baroda, Surat, Ahmedabad, Mumbai, Pune, Ludhiana, Jaipur and Jaisalmer. There are some border crossings, such as at Fazilka and Hussaini Wala, which can be revitalised without much hassle and cost. Summarising the discussion above, with over 1.2 billion rupees having been already spent on the infrastructure development at the ICP by India, it is ev i d e n t l y p ur s u i n g t he t ra d e liberalisation process with Pakistan with extreme sincerity. Now, Pakistan is required to reciprocate the effort with the same commitment for its obvious advantages for the country...

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Monthly AutoMark Magazine

The Water Car Saga

The latest media reports suggesting that Agha Waqar is being provided government facilities to mature his water kit are upsetting to serious academic and scientific circles who believe that there is no justification for allocation of public resources to a project which is impracticable and is in clear contradiction with universally accepted laws of science. They are unable to understand if the government is supporting this apparently 100% unviable project on the basis of pure sentiments or naive political intere

The recent claim by Agha Waqar to have invented a perpetual motion self sustainable water kit/car is yet inconclusive and unconvincing. The claim that his invention is set to resolve Pakistan’s all energy problems very easily and cheaply has been taken up ext remely seriously by vari ou s stakeholders especially the government and media. It has been entertained by the government at the highest level as it has been discussed in cabinet meetings on several occasions and cabinet’s special committees have been formed to deal with it at the personal instructions of the Prime Minister. Electronic media has given the claimed invention an unprecedented coverage in talk shows and news bulletins where it has been endorsed by some of the most prominent scientists, officials head ing variou s scient if ic and e n g i n e e r i n g d e p ar t me n t s a n d organizations, politicians and opinion makers. Interestingly, this has happened to an invention that is totally unviable as per established laws of science. Quite expectedly this magical water kit was categorically denounced by serious academic and scientific circles and was labeled as a swindle. However, despite these critical voices, such has been the limelight given to this controversial water kit that it has taken an overwhelming majority of population into its grip. Interestingly, those who believe a radical positive change in their life is just round the corner, thanks to

the water, include not only the uneducated masses but also many who are actually quite educated. They are already dreaming of coming out of petroleum-age and running their vehicles and businesses on water just few months down the line. The latest media reports suggesting that Agha Waqar is being provid ed government facilities to mature his water kit are upsetting to serious academic and scientific circles who believe that there is no justification for allocation of public resources to a project which is i mpr act i cabl e and i s i n cle ar contradiction with universally accepted laws of science. They are unable to understand if the government is supporting this apparently 100% unviable project on the basis of pure sentiments or naïve political interest. It is important to analytically look into not only Agha Waqar’s claim but also the firm scientific and factual evidences that reject it. Although there have been discrepancies in Agha Waqar’s statements, however, in a nutshell he claims that he has invented a perpetually operated water kit that would resolve all energy problems of not only Pakistan but of entire world by eliminating the dependency on oil and gas. He claims that his water kit needs a very small amount of energy/electricity from a car battery to produce hydrogen on selfsustainable basis to run the car for hundreds of kilometers without needing any further energy. In simple words all

he needs to drive a car from Karachi to Islamabad or Peshawar is few liters of water and a charged car battery, with no need of any further energy (oil, gas or electricity) whatsoever. It means mankind has got rid of the troubling oil and gas age and now all it needs is bit of water to meet all its energy needs. In doing so, Agha Waqar has not only addressed all energy problems but also over 90% of world’s economic and environmental problems. If Agha Waqar’s claim is true it implies that he is gem of an inventor and scientist. He has redefined the laws of science. With this single invention he has superseded scientists like Newton and Einstein and inventors like Edison. He is set to become an entrepreneur greater than Steve Jobs and Bill Gates. Good luck Agha Waqar, a number of Nobel Prizes are waiting for you; hopefully it’s not a daydream! Now let’s do a reality check of the water kit/car claims.

First of all, in a real world, the demonstrations of this water kit/car as shown in various TV programmes do not prove anything. It is a very ambiguous display which lacks necessary details and transparency. Claims that it has been shown working to numerous experts are also worthless unless detailed scientific parameters of demonstration are made clear. Secondly, the most absurd bit of the claimed water kit is that it operates in a self-sustainable perpetual-motion basis t hus defyi ng the law of conservation of energy and the second law of thermodynamics. Conquering these laws that hold the foundation of the whole present day world is not as easy as Agha Waqar has assumed. Every now and then, people come up with charming perpetual-motion machine ideas across the world. However, the

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Monthly AutoMark Magazine

Water/hydrogen kit is not an invention of Agha Waqar. As a matter of fact the concept of water/hydrogen car dates back to the 19th century. Hydrogen cars using various technologies to produce and use hydrogen have been developed in various countries throughout the 20th century. Since 1990s hydrogen vehicles have received a renewed and vigorous interest, this time as part of a broader concept called Hydrogen Economy. history of last one hundred years tells us that all such ideas have only been sheer fantasies, which get floored at the initial stages of validation. The claimed invention of water-kit has so far neither offered transparency nor validation! One is innocent unless proven guilty, similarly, any claim of defying these laws of science cannot be believed unless it is independently and rigorously validated.

Thirdly, water/hydrogen kit is not an invention of Agha Waqar. As a matter of fact the concept of water/hydrogen car dates back to the 19th century. The concept of water/hydrogen car dates back to the 19th century. Despite numerous models of hydrogen cars been built and used -in different countries including Germany, Switzerland and Russia during the last century - the idea could never take off for various reasons. These cars used various technologies; onboard electrolysis as well as ammonia reformer; fuel cells as well as direct injection of hydrogen. Since 1990s hydrogen vehicles have received a renewed and vigorous interest, this time as part of a broader concept called H yd rog en Eco nomy . Hy dro gen Economy primarily aims to shift away from environmentally dangerous fossil fuels and to rely on environmentally friendly renewable technologies like wind power and solar energy to meet global energy needs. Here, Hydrogen is adopted as the energy vector to store, transport and utilize the energy produced from renewable resources without producing greenhouse gases. A l mo s t a l l m aj o r a u t o mo b i l e manufacturers have developed hydrogen vehicles and countries like Germany, Japan, USA and Canada having been using them on trial basis for several years. However unlike Agha Waqar’s magical claim, all these vehicles obey the laws of thermodynamics and operate at efficiencies between 15-45%. Also, these vehicles are still technically immature and financially far too expensive, hence decades away from t hei r commerci al e xplo it at ion .

which unfortunately TV anchors/hosts are not able to pick understandably due to their non-technical backgrounds.

Lastly, overall, it has been a bizarre

Fourthly, there are several ways to check the authenticity of the claimed kit. Let’s suggest a simple and quick experiment similar to what Agha Waqar has been showing to be vaguely demonstrating in TV programmes. All it needs is four items: the water kit, its associate car battery, a typical domestic generator and a 4-5kW load for example a typ ical commercial sized air conditioner. In a quick test the battery is to be connected to the water kit which in turn should be connected to generator coupled with load. It has to be made sure that there is no fuel involved what so ever which necessarily means the water kit should only have water in it and generator should be free of fuel. Now the water kit should be made to run the generator/load for a couple of hours to be on safe side though even half an hour’s run can be enough. It is noteworthy that this experiment is completely aligned with Agha Waqar’s claims and to further ensure his satisfaction, the experiment can be conducted under his own supervision and at a place of his choice but under watchful eyes of media and independent experts. If his water-kit manages to run the generator/load for a couple of hours his claimed kit is correct and is indeed a groundbreaking invention otherwise just a disgraceful hoax.

Fifthly, Agha Waqar’s own conduct has not been helping his cause. His arguments and scientific explanations as given in TV programs lack consistency and technical understanding. He has been observed radically changing his stances during the course of a discussion and making elementary level mistakes

issue that has lingered on for far too long purely on the basis of irrational claims making Pakistan a laughing stock in the world. It has exposed the lack of seriousness and dearth of t he knowledge-base in the country especially on the part of those who endorsed this controversial invention. The role of the top executive machinery of the country has been extremely peculiar an example of which is the excitement of the federal cabinet on this hypothetical water kit that is yet to be supported by appropriate and scientifically acceptable evidences. It also shows how easily the top policy and decision makers can be fooled. The p erformance of the concern ed government departments especially PCSIR has been extremely disappointing; they have failed to d e m o n s t r a t e c o m p e t e n c e an d professional integrity. Rather standing up to challenge the absurd claims of Agah Waqar and demanding a robust validation of his water kit they just went on to publically endorse it through various TV programs.

Similarly, some prominent media and scientific figures have also acted very irresponsibly by promoting this controversial invention without giving it due deliberation. If this issue turns out to be just a well planned hoax, as is the writing on the wall, all those who have endorsed it owe some explanation to the nation.

About writer: The writer is an Associate Professor at the Glasgow Caledonian University, UK and the author of Energy Crisis in Pakistan: Origins, Challenges and Sustainable Solutions. (dr.m.asif@gmail.com)

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September-2012


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

Monthly AutoMark Magazine

How to make a wise decision to buy best used car (Part II) Buying a used car can be risky, but it can be also very rewarding. The road that leads to any used car purchase decision is riddled with pot holes and in some cases, land mines or it could be smooth as airport runway. You can make it easy for yourself by doing some research in finding the right balance of value and risk before making a final decision. If you take some time to do the research first it can minimize your buying risk and maximize your satisfaction and peace of mind motoring. Please note, some of the used car buying tips may not apply fully in Pakistan, as Automark is an esteemed international magazine read in many countries... Here is an inspection list to help you to increase your odds of finding a safe and dependable car regardless of source where you buying from. None of these tips require any advance mechanical knowledge, just a willingness to spend a little time with patient before you handover you’re hard earned money.

Hands-on SPA inspection (SafetyPerformanceAppearance) If the car manages to pass preliminary test such as DOT safety certification and emission test, it does not mean that it has cover every eventuality, have it inspected by a mechanic you trust before you buy. For more details log on my TV program Safe Motoring 101 on TVONE Global Canada, Rogers Channel 857 Toronto or log on: http://www.youtube.com/watch?v=2 6sU8 2PON 3o &f eatu re= yo ut u .b e

SAFETY:

This is an extremely important factor when you buy used car, it is better to have a car that hard to start at driveway rather the one must stop at highway. Keep in mind that your safety should be your prime concern. Check all tires for, mismatch, size, ratings, tread depth, side wall crack, air leak, wear pattern and rim damage.

Uneven tread wear indicates poor wheel alignment or an accident. In front tires, uneven tread wear may spell serious suspension problem or damage. Grab the top of each front tires and shake it toward and away from you. If you fell play or hear a clunking sound, suspect loose or worn out wheel bearing or suspension. Check the gap between all tires and mud flap or lower fender end, if gap is uneven that may indicate frame damage avoid such cars, your car will suffer lumpy ride. Check brakes for firm feeling, spongy pedal is sign of excessive wear or fluid leak. Check parking brakes if sticky or too loose, it’s a sing of wear or rusty cables. Check for noise and pulling to side on road test. The car should stop

quickly and in a straight line. Unless the car has ABS, the pedal should not pulsate under foot. Check shock absorbers by pushing down hard at each corner of the car a few times to bounce it up and down and then letting go. If the car rebounds more than once before levelling off, the shocks are probably worn. Step back about 10 feet and see whether one side is lower than other. A lop sided car may need new springs or have suspension problem. Check Steering for smooth and precise operation without much free play, pulling, noise or vibration on high speed. Drive straight through a puddle, if possible or wet tires, so you can use the wet tire track to see whether the front and rear wheels travel precisely in line. Only two tracks should be visible, not four. If the car sidles along like a crab, an accident has probably bent the body or frame. Give up that car. If the car’s steering simply pulls to one side, due to uneven tire pressure or a wheel alignment may be save the day. In an open parking lot make a figure 8 and observe noise under stress on turning, this could reveal noise from CV drive axles, ball joints or bearings. Check all seat belts for proper operations and air bags for any sign of temperament

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Exclusive Article - continuted

If the car’s steering simply pulls to one side, due to uneven tire pressure or a wheel alignment may be save the day. gauges work? Any warning lights such as "check engine", "airbag", "ABS" stays on after the engine started? If the car has "check engine" or flushing "overdrive light" or any other warning light coming on while driving, have the proper diagnostic done before deciding to buy it; in some cases the problem could be very costly to repair

or damage.

PERFORMANCE:

All major c omponents should perform satisfactory. Engine is a heart of your car let’s start with engine first: Check engine it should start easily and pick up smoothly, without lurching, coughing, or making odd noises. Knocking may signal costly repairs or it could be cured with higher octane fuel or major tune up if sound like pinging. Monitor oil light timing, if it is taking too long to go off after start, this could indicate engine oil pressure problem. Check for smoke at tail pipe. Black smoke may means fuel injection system needs cleaning or adjustment or air filter is dirty. White smoke means coolant is getting into engine and may need head gasket. However, blue smoke is a pure sign of oil burning and engine will probably have to rebuilt or replaced, with these symptoms better stay of such car. Check the engine oil, if it is very dark, dirty, thick, low, has water at the tip of the dipstick, has gas odour or is over filled and dark sign of carbon buildup on dipstick or gum or sludge deposit inside filler cap or oil mist from exhaust, all these symptom means engine headache and migraine for your life. Rub a bit of oil between your fingers to feel for grit or take a few drops of oil on a tissue paper and place in front of headlight high beam, see deposits through light if it’s very dark with carbon deposit and or metal particles (you can use fridge magnet to separate metal) Extremely thick oil is sometimes used to muffle a noisy engine and hide leaks. These symptoms are sure sign of lack of maintenance and serious major problem. Under the bonnet/hood, have a look at overall condition of components. Look for cracked or worn belts. Green or pink residue on the radiator or hoses should signal a leak. Sludge, corrosion or off coloured coolant in the recovery tank indicates a lack of maintenance. Check for new gasket or sealers around engine parts, these are the sign of recent repairs you may ask sellers for the reasons. Turn on all electrical accessorises

APPEARANCE: Every one including a/c or heater, radio, wipers, high beam lights and now crank engine, if engine crank and start fine that means battery passed load test, it is important for cold start to have strong battery power. Battery should be clean and without white corrosion on terminals.

Auto Transmission: Test drive on a smooth road at variable speed and observe operation, it should shift smoothly without hesitation or slippage. It shouldn’t slam into gear or slip as you drive. A thump when engaging “drive” or a rhythmic clicking noise could signal worn parts. Check oil level and condition, too low or too dark is a sign of lack of maintenance, check oil condition with tissue test same as engine oil testing mentioned above and look for metal particles deposits in the oil, if found , you could expect expensive major transmission repairs., so walk away if you suspect problems. Manual Transmission’s clutch should have smooth shifting. The manual transmission shouldn’t make clicking or grinding noises or pop out of gear. If the clutch does not engage until the pedal is nearly all the way up, or if the pedal doesn’t have an inch or so of free play at the top, you could face an expensive clutch job. Check all lights including gauges on dash and warning lights such as brakes light. All must be confirmed in proper operations. Any light found inoperative could be due to burnt light bulb or fuse or wiring problem. Check A/C, heater, wipers, cruise, radio, CD and all equipped accessories for proper operations. Check the instrument panel: Do all the

love to have tidy, shiny good looking car but, Keep in mind that not very shiny thing is gold.

Body: Pick a sunny day, since bad weather or darkness can mask many flaws. Have a careful look at the condition of the car’s body. Stand in front centre of car and check and compare both sides such as lights, fenders etc. Nature has given you a hint, open your both hands and look at your fingers they all are very symmetrical, now bend one finger and see , you can spot right away something is not right between both hands. Car body is very symmetrical as our body any missing or uneven part can be spotted quickly. Apply the same approach when checking car body from front and rear end. Take a good walk around body, you can reposition car toward sun to check colour for defect. Is the entire car the exact same colour? Check complete body, pass your fingers on seam and joints, pay close attention to hood, trunk, doors, and fenders for any sign of; new or used body part, rippley body work, dents, chipped or fresh paint, over sprayed, miss-matched color, poor fit, missalignment, fresh weld, missing seals, uneven or too much gap; missing, loose, used or new hardware, all these sings indicate that this car had been in accident minor or major find out details from seller in writing. Any Front end accident has long term serious ripple effects on your auto wallet and migraine for life. (Walk out of the deal before spending more time) Open hood, trunk and all doors, check and compare as mentioned above. To check underneath you can slide an old mirror and with spot light you can check for any damage, body rust, rusty fuel and brake lines or

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Monthly AutoMark Magazine

Exclusive Article - continuted any oil leak from engine or transmission. Rust is a car skin’s cancer. Check for rust that can hide beneath blistered or peeling paint. If it eats through the car or trunk floor, wheel well and fenders, it can let deadly exhaust fumes inside. If left unchecked, it can compromise the structural integrity and safety of the body and suspension. Lift the front floor carpets and trunk carpet to check the condition of the sheet metal underneath. Inspect other vulnerable areas like wheel wells and rocker panels. A small magnet against those areas will reveal plastic putty patches over rust or accident damage. Have a close look at the inside bottom edges of doors, trunk and tail gates on vans or SUV. These areas have more rusty concerns. There is no way to cure rust permanently short of replacing the panel, so any rust at all will be a problem. Open hood, trunk doors, if it feels very heavy, it may have been replaced with aftermarket parts check all the stickers such as VIN on driver door and emission sticker under hood. For outer colour finish you may use ultra yellow colour spot light to find mismatched colour areas. Check interior for any damage, dash, trim and seats. Check all power accessorises pay close attention to doors and window for operation. Musty odours suggest a water leak, which may be hard to find and fix. Turn on radio at high volume and listen from outside with all windows closed, if you can hear very loud and clear chances could be loose seal or door misaligned due to accident, or jam a paper between door and seal, close and pull paper out, too easy means potential wind noise or water leak Check windshield for proper seal, stone chip dings or crack.

Vital Signs of heavy use and high mileage cars Under normal use a used car should have between 15,000 KM to 25,000 KM per year. But keep in mind that some time high mileage cars are better than low mileage, if maintained and driven with care. However, a very low mileage could be worst due to poor maintenance. So make your fair judgment based on facts. If a doctor can tell the age of a person by their dental condition, similarly, a smart auto/body tech can tell age and

mileage of car by observing certain c ri t i ca l wo rn - o ut p art s / ar eas . • Check odometer if not in line, it may have been tempered to bring down mileage. Check with ministry or dealer for past mileage record, if it is lower than past record, sure mileage has been altered or odometer tempered. Avoid such cars…period. • A saggy and loose driver‘s seat/belt means heavy use. All saggy seats and safety belts mean family use. Check all control switches, worn out means heavily used. • The badly worn or torn rubber pads on brake, clutch and gas/accelerator pedal and shoes heel deep down cut marks on driver side carpet are sure sign of high mileage. • Very shinny steering wheel around hand position and shinny arm rest are sure signs of long heavy use. • Shinny gear shifter means excessive use during short distance in city. • Loose ignition key & cylinder and driver door lock key like a knife means high mileage with heavy use for pick and drop. Loose trunk hinges means retired taxi. • Excessive stone chip on hood, discolour faded head lights and windshield shows long distance driving on rural roads conditions. • Soft and loose driver seat track means more than one driver drove the car. • Loose, all doors and seals mean that it has been a family car. • Hauling with trailer hitch means engine and transmission have suffered extra strain. • Discoloured carpeting, silt in the trunk, may be signs of flood damage. • Excessive oil and fluid leaks indicates components have been through heavy strain. • Blue smoke at tailpipe means engine life insurance has been expired. Has this car been driven by a single or married lady? Sure you can tell by identifying few vital,

visible signs and indications on selected areas of the car. Here are just a few indicators to probe a person behind the wheel. • Scratches due to long nails on outer driver door handle probably means that it is a lady-driven car. • Deep pointed indent on driver side carpet/mat below accelerator, brake and clutch pedal is a sign of a lady-driven car due to high heel sandal. • Scratches on steering wheel at left upper segment could be due to wedding ring’s scratch from left third finger and could be driven by a married lady. And a crescent shaped deep indent below accelerator, brake and clutch pedal on driver side carpet/mat could be a sure sign of car driven by man as the men’s shoe heel create crescent on the floor mat or carpet. To enjoy more details on this interesting topic log on my TV programme “Safe Motoring 101” on Global TVONE Canada channel 857 Toronto. http://www.youtube.com/watch?v=7 T_Rr7_Rb1Y

Finally… Buying a used car is like buying a sealed tin-food – there is no smell or taste until you open it! Do not trust the outer colorful label. Do not buy others’ leftover car problems. Think twice and do not sign any final sale deal until you are completely satisfied and make sure to invest your hard earned money wisely for trouble free saf e motoring.

Dr iv e S af e … Safety starts with you! This exclusive article on buying used car (par t- I I) has be en wri tt en by Mohammad Shahzad S.A.E., D.M.P. , specially for Monthly AutoMark Magazine. (Automotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not hesitate to contact him at shah@brimelltoyota.com or magazine@automark.pk

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Joint Venture offer by M.Yousuf Shaikh

Monthly AutoMark Magazine

PAKISTAN – Motorcycle manufacturer looking for joint venture partner to enhance the production capability We shall provide Land, Building, Infrastructure, Complete automatic motorcycle & auto rickshaw assembling cum manufacturing Plant with a wide range of developed products approved by the entire government departments as well as FBR,EDB, PSQCA and E&T. We are looking for investment from a local or foreign counterpart. We are majorly interested in the automotive related manufacturing industry as there is a lot of potential in Pakistan as well as exports from Pakistan keeping in mind quality consciousness & competitiveness.

We have an industrial Land at Sunder Industrial Estate in Lahore Pakistan. Where we shall recognized a joint venture company for enhanced the production & marketing of our existing manufacture vehicles. This is a state of the art industrial park of the country a n d f ul ly f u n c t i o na l w i t h al l infrastructures like power, gas, water etc. The land is located in the Lahore the capital city of Punjab. Please log on to Punjab industrial state website www.pie.com.pk for more details. We are looking for a partner with appropriate investment for increasing our manufacturing capability for our internal market or export. Pakistan can be an ideal location for export processing factory due to its large seaports and road network with south East Asian countries. The Sunder Industrial Estate has become an established central base for the automobiles and motorcycles

integrating vehicle production, parts manufacturing, sales and R&D.

facilitate the formation of a complete industrial chain with strong clustering effect and favorable economic benefits.

Sunder Industrial Estate advantages: 1) Superior geographical location

5)

Due to the low land cost along with aid obtained from the urban areas in terms of economy and technologies, the suburb of metropolis is the future trend of location choice for modern industrial development. Situated in the suburb of Lahore, Sunder Industrial estate Park is one of the ideal destinations for making investments and building factories.

2) Convenient transportation The convenient transportation regarding railways and highways makes Sunder Industrial estate Park competitive in terms of logistics costs. 3) Full range of infrastructure Sunder Industrial estate Park boasts a full range of infrastructure, including highways, railways, dry port, airlines, communication networks and supply of water, power and gas. 4) Complete supporting facilities Especially for the Automobile & Motorcycle at Sunder Industrial estate P ar k i n s u n d e r D i s t r i c t ha s accommodated many enterprises e ngage d i n t he p ro d uct i on o f automobiles and motorcycles, which will

The Punjab government is offering investors the opportunity t o e s t a b l i s h a m o t o r c y cl e manufacturing and assembly plant. Motorcycles are a popular mode of transport in Pakistan and the annual demand is around two million units. The federal government wants to increase the number of motorcycles manufactured and assembled locally. The project will involve the planning, design, construction, installation and operation of the f acility. Local communities will have to participate actively in the construction of the facility as well as in its operation.

Reasons to invest in Sunder Industrial Estate: Security: Sunder Industrial estate is one of the most peaceful states in Pakistan and investors will be able to do business without any security concerns. Incentives: The state government is committed to create an enabling environment for investment. Investors will be assisted in the areas of more land acquisition, financing, security, power supply and all other infrastructure requirements also be extended to

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Joint Venture offer - continued

investors. Market: Punjab has a ready local market for completed motorcycles and parts. Investors will also have access to the rest of Punjab 1500 million people as well as the south East Asian countries enjoy favorable trade agreements. Labour: The region has an abundant supply of skilled and unskilled labour.

COMPANY PROFILE We are happy to take this opportunity to introduce ourselves as an established Business house namely Moon Traders. We are engaged in the manufacture & trade of motorcycles & components. MOON TRADERS is a manufacturing & trading Company dedicated to the design, development and production of MoonStar & Winner brand motorcycles for the Pakistan market place. Our specialty is to understand the Pakistan motorcycle market and to design specific products to suit specific market segments for various cities & rural areas of Pakistan. We distribute our products t hr o ugh se l ec t ed p r o f e ss i o n al distributors and select components and test the products intensely before mass production. All of this allows Moon traders to design all of its cutting edge products and be involved in every step of the production process. We also supports a complete quality assurance, engineering staff, production controls, spare parts, publications and R&D group in Pakistan. We provide a backup service on all of our manufactured models that is second to no-one in Pakistan! All models come with the full back up of spares in stock, we believe this is the only way to operate and we have the history to backup this statement.

Our Mission: To offer high-quality transportation products with a modern design at affordable prices, backed by an excellent after-sales service. Our Vision: To become one of the most recognized brands in the Pakistan motorcycle industry by establishing a successful distribution network and OEM relationships exceeding all standards in quality, service and support. Our Karachi based mo torcycle manufacturing unit is engaged in the manufacture & supply of MoonStar & Winner brand motorcycles to the market in Pakistan as well as providing a wellestablished aftermarket network. As we have plans to set up a new plant in the Sunder Industrial Estate Lahore to manufacture motorcycles and four stroke CNG auto rickshaws for the growing motorcycle + Auto rickshaw market. We are looking for a technical co ll abor ati o n / Jo in t Ven t ur e partnership with investment based profit sharing patterns. You may be aware that the Motorcycle Industry in Pakistan is fast becoming an Export Hub as well as servicing the booming domestic market, with millions of motorcycles being manufactured in Pakistan. The opportunities for growth are enormous! We have plans to establish a Joint Venture Manufacturing company for

Monthly AutoMark Magazine

production & marketing of motorcycles & auto rickshaws with local or foreign collaboration and possible Buy-Back arrangements. We shall provide Land, Building, Infrastructure, Complete automatic motorcycle & auto rickshaw assembling cum manufacturing Plant with a wide range of developed products approved by the entire government departments as well as FBR,EDB, PSQCA and E&T. We are looking for investment from a local or foreign counterpart. We are majorly interested in the automotive related manufacturing industry as there is a lot of potential in Pakistan as well as exports from Pakistan keeping in min d quali ty consci ou sn ess & competitiveness. We intend to offer a 50-50% profit & loss sharing ratio depending upon the investments made by each of us, but are open to additional proposals also. We understand that you may be interested to take part in this opportunity to enter the motorcycle Industry scenario, if so please let us know your position so that we may proceed further with the exchange of more information on both sides. Thank y ou for y our ti me and consideration. Please do not hesitate to approach us, s ho ul d you ne ed mor e information.

Muhammad Yousuf Shaikh. Director. Moon Traders. (Motorcycle Trading & Manufacturing Co). Mobile #: +92 300 2613692 Email: yousufshaikh@hotmail.com


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Automotive Article - by Haider Nawab

Monthly AutoMark Magazine

STEPNEY Vehicle designers and manufacturers are now seriously thinking to discontinue provisioning of spare wheel because tyre technology has considerably improved and today’s tyres are more strongthan before and less prone to puncture. carriage of the light commercial vehicles & passenger cars such as:

The year 1886 was the birth year of four wheeler on the ground. The spare wheel was invented in the year 1904. Can you imagine without spare wheel how the users passed 14 years. Let us discuss about the word STEPNEY. May be, less than 5% of today ground vehicle drivers are acquainted with the title. Infact this word STEPNEY became very famous after the invention of SPARE WHEEL provided with the vehicle. Before invention vehicles were manufactured without spare wheels (How do you feel upon this situation?) The inventors walter and Tom Davies established a company “stepney iron Mongers” for the manufacturing & sales of wheels. Thereafter invention this powerful idea became an integral part of automobile unit from day one it took shape as “SPARE WHEEL” although some more developments appeared in the market at later stages relating to its design, weight, location & Quantity, cost, space saving , spare wheel size etcetc. History speaks that RAMBLER was the first car sold with spare wheel, this facility was much appreciated by car owners and subsequently adopted by other vehicle manufacturers, some of them started provisioning of two spare wheels per vehicles also.

LOCATIONS FOR STORAGE Just after the invention different designers of the 20th century provided many locations for storage of spare wheel (s) in side / out side / under

1. Inside Trunk / Boot 2. On the back door 3. On the roof 4.On the engine hood / bonnet 5. Front boot (rear engine / mid engine vehicles) 6.Engine bay (over the engine) 7. Between front bumber and Front Grill 8. Under rear of vehicles (on a cradle) 9. Behind front fender (Single side mounting) 10. Behind front fender (Dual side mounting) 11.Between rear bench seats of the station wagon 12.Various locations of heavy commercial vehicles

SPARE WHEEL WEIGHT & SIZE Designers give extra consideration to the weight, space required and cost for the spare wheel design. Few manufacturers make spare wheel for short distance use until necessary repairs are carried out, these wheels are named as space saver, Donut or compact wheels. Such spare wheels seems (low profile) smaller in dimensions and can be used at low speeds but being low in height and change of aspect ratio some electronically controlled systems and NON – ABS (Antilock braking system) type brakes will become ineffective until the replacement of original wheel due to height differential and less ground cont act area. Donut spare wheels (temporary use spare tyre) or TUST must not be used for longer distance or longer time The TUST have dissimilar performing characteristics and less durable if compared with normal wheels.

RUN FLAT TIRES In some vehicles run flat device or mechanism in each tyre is fitted to

perform well with puncturedtyre to recover vehicle up to short distance (5 ~ 10 km) However, spare wheel (rim with tire) of today carries a Haider Nawab l o n g hi s t or y o f development. Do you also call it

STEPNEY? Please do not forget to inflate stepney while inflating others.

NEWS Vehicle designers and manufacturers are n ow seri ou sly thi nking t o discontinue provisioning of spare wheel because tyre technology has considerably improved and today’s tyres are more strongthan before and less prone to puncture. Don’t worry if you buy a pre - designed vehicle without spare wheel you will get a small size air compressor and small tin of sealant for puncture repair (Do – It – Yourself) In case of tyre burst or other type of damages you have to call vehicle recovery company. The whole story of spare wheel is going towards end i.e 2012-1904=108 years.

About writer: Mr. Haider Nawab is working as advisor planning & development at Toyota Southern Motors & Toyota Defence Motors, he also in advisory panel at Monthly AutoMark Magazine - Pakistan

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Car / Light Vehicle Price List

SUZUKI Model Model

MEHRAN VX 800cc Euro II MEHRAN VXR 800cc Euro II SUZUKI SWIFT 1.3L DX SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS Efi VXRI Euro II CULTUS Efi VXRI (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) RAVI PICKUP VX Euro II RAVI PICKUP ST308R VX CNG BOLAN VAN VX Petrol Euro II SUZUKI VAN CARGO Euro II APV 1.5L JL SX MT (CBU) APV 1.5L JL DX MT (CBU) JIMNY JLX SX CBU (SN) JIMNY JLX DX CBU (SN)

HONDA Price Price Rs. 555,000 Rs. 607,000 Rs. 1,096,000 Rs. 1,176,000 Rs. 1,311,000 Rs. 965,000 Rs. 1,015,000 Rs. 1,332,000 Rs. 1,411,000 Rs. 582,000 Rs. 621,000 Rs. 634,000 Rs. 610,000 Rs. 1,999,000 Rs. 2,074,000 Rs. 1,974,000 Rs. 2,123,000

Karakoram Motors Model Chery Standard Petrol Chery Standard CNG Chery Deluxe Petrol Chery Deluxe CNG Gonow Victor Gonow Troy Standard Gonow Troy Deluxe Gilgit (Double Cabin) Pet. Gilgit (Double Cabin) CNG Kaghan XL Petrol Kaghan XL CNG

Price Rs. 7,20,000 Rs. 7,70,000 Rs. 7,70,000 Rs. 8,20,000 Rs. 1,499,000 Rs. 9,99,000 Rs. 1,049,000 Rs. 3,85,000 Rs. 4,20,000 Rs. 1,285,000 Rs. 1,375,000

Honda Honda Honda Honda Honda Honda Honda Honda

Model CRV Automatic 2400cc Japan Accord Automatic 2400cc Japan City Manual 1300cc HYUNDAI City Prosmatec 1300cc Civic VTI Manual 1800cc Civic VTI Manual SR (Oriel) Civic VTI Prosmatec 1800cc Civic VTI Prosmatec SR (Oriel)

Price 7,117,000 6,617,000 1,497,000 1,638,000 1,851,000 2,043,000 1,971,000 2,121,000

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

TOYOTA COROLLA Model Model XLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.6 A/T 1599cc Petrol XLI VVT-i 1299cc ECOTEC GLI VVT-i 1299cc ECOTEC 2.OD STD 2000cc 2.OD SALOON MT 2.OD SALOON SUNROOF ALTIS 1.6L Dual VVT-i MT ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT Cruisetronic ALTIS 1.6L Dual VVT-i AT SUNROOF Toyota Avanza (Standard)

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

Toyota Avanza (Up Specfication)

Rs. 2,160,000

Price Price 1,537,500 1,672,500 1,827,500 1,602,500 1,732,500 1,607,500 1,809,000 1,914,000 1,902,500 1,997,500 1,997,500 2,087,500 1,960,000

Hilux Pickup 4x sc Model

Price

Brand New Toyota Hilux Pickup, 4x2, Single Cabin, (Local Assembled)

Rs. 1,763,500

Hilux Pickup 4x4 D/C Model

Price

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

DAIHATSU

TOYOTA VIGO Price Model

Rs. 2,878,500

LAND ROVER Model

Price

Vigo Champ M/T Rs. 3,178,500 DEFENDER (WHITE ,BLACK,STRONG BLUE & SILVER ) STATION WAGON 90 Rs. 3,560,000 STATION WAGON 110 Rs. 4,260,000 Vigo Champ A/T Rs. 3,378,500 Soft Top 90 (N/A) (WHITE ,BLACK,STRONG BLUE & SILVER )

Price updated Aug- 2012


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India Automotive Industry - Briefs

Monthly AutoMark Magazine

Maruti Suzuki plans CNG version of Alto K10 hatchback The only diesel engine that Maruti Suzuki has in its portfolio is the highly acclaimed 1.3 Liter fiat Multijet turbo diesel engine, that Maruti fits in its cars, in two states of tune. However, Maruti Suzuki fits this engjne only on cars in and above the B+ hatchback segment. This means that Maruti’s big volume pullers like the Alto and the WagonR continue to motor on, with only petrol engines in the line up. While the WagonR does get an LPG-Petrol and CNG-petrol dual fuel variant, the Alto range is yet to get the LPG option. While there has been some talk about Suzuki developing a small capacity diesel engine, that option still seems a couple of years away. In the interim, Maruti Suzuki plans to do with the CNG option, which by being much cheaper than petrol, offers diesel like economy. The CNG–petrol dual fuel option is expected to be unleashed on the Alto K10, which is a top of the line model in the Alto

Ford India recalls 111,000 cars US auto giant Ford`s India unit said on Monday it was recalling at least 111,000 vehicles to check for potentially faulty parts that could cause breakdowns or fires. Ford India said it wanted to inspect certain batches of its top-selling Figo hatchback and Classic sedan models that rolled off assembly lines between January 2008 and February 2011 for possible problems. Ford in a statement called the recall `a voluntary and pre-emptive` action and said no injuries relating to the possible problems had been reported. The company said it would replace the power steering hose on some cars because of fears a possible oil leak could cause fire ` in extreme cases` . A Ford spokesman said 17,655 units of Ford Figo and Ford Classic would have their power steering hoses replaced and around 111,000 vehicles would be inspected for potential cracks in the suspension.-AFP

range, with a 1 Liter, 3 cylinder K-Series petrol engine. Maruti planning to convert the Alto K10 to run on CNG is quite an interesting proposition and here’s why. The 1 Liter K-Series petrol engine that the Alto K10 uses is also used by three other cars in Maruti Suzuki’s line up, in the form of the A-Star, the WagonR and the Estilo. So, once the Alto K10 gets the petrol-CNG dual fuel option, it is only a matter of time before the likes of the A-Star and the Estilo join the CNG party. So, that makes this development

quite an important one as far Maruti is concerned as the small car major has been hit hard with the sales slowdown that has affected its entry level car model range. Once the CNG-petrol dual fuel option is made available on the small car range, sales could perk up quite significantly. Expect the Alto K10 CNG to be launched in the nex few months, in the Indian car market. Currently, Maruti does offer the CNG option on two of its cars, the alto F8D and the SX4 sedan. With the arrival of the CNG option on the Alto K10, expect the floodgates to open for CNG variants in Maruti’s car range. Increasingly, car makers in India, are looking to CNG dual fuel options for their cars, as an alternate to the more expensive diesel engined variants. The Honda City CNG is due shortly and so is the Tata Nano CNG. Source TimesOfIndia

Indian Railways to use CNG for diesel unit

Hero MotoCorp slows down production

In its endeavour to use new technology and conserve environment, Indian Railways has taken the initiative of using compressed natural gas (CNG) as an alternate fuel on pilot project involving Diesel Power Car (DPC) of Diesel Electric Multiple Unit (DEMU). Presently, the power car of Diesel Electric Multiple Unit is being hauled with the help of diesel. Contracts for conversion of 50 DPCs have been placed on three different firms by Indian Railways Organisation for Alternate Fuels (IROAF) for Northern Railway Shakurbasti Diesel Shed homing DEMUs. Fitment of these kits is under progress. Cost of fitment on 50 DPCs is about Rs 55 crore and savings in fuel consumption can be assessed only where these kits are positioned.

Weak demand condit ions have prompted the world's largest twowheeler maker Hero MotoCorp to decide to lower production by 15-18 per cent in September over the first five months of fiscal 2013. The flagship model Splendor faces the biggest slash. A September 2012 production plan sent to vendors indicates that the twowheeler maker will produce a total of 4.48 lakh units against the production average of 5.25 lakh units in the first five months of the financial year. Wholesale average despatches to dealers of the Splendor, of 2.2 lakh to 2.4 lakh units since April, dropped to 1.73 lakh units in August 2012. According to the production plan, Hero MotoCorp plans to produce a little over 1.20 lakh units of the Splendor this month. "We have seen a slowdown in retail sales for the two-wheeler industry in July and August and it is expected to continue in September; so we are correcting production in order to avoid an inventory pile-up, said Pawan Munjal, MD & CEO, Hero MotoCorp....

Honda Motorcycle & Scooters India aims 30% sales growth this fiscal

Honda Motorcycle & Scooters India today said it expects sales to grow by 30 per cent this fiscal to touch 27.5 lakh units

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China Automotive Industry - Briefs

Monthly AutoMark Magazine

FAW Group R&D Center, Changchun, China, Design Complete First Automotive Works (FAW Group), China's leading vehicle manufacturer of quality passenger cars, commercial trucks, and buses, has approved SmithGroupJJR's final design plans for a new 422,400-square meter (4.5million square foot) research and development center in the Changchun Automotive Industry Development Zone in Changchun, Jilin, China. FAW's vision was to create a world-class facility reflective of the company's position as China's preeminent automotive enterprise. In response, SmithGroupJJR designed a contiguous complex consisting of a seven-story administration building; comprehensive research and development center, including design workshops, testing and evaluation laboratories, styling studio, and design dome; five-story project team office building; and two 2,500-vehicle parking structures. A central distribution center and 1,100-meter-long tunnel system will facilitate delivery of products

and services throughout the complex. Unique architectural elements include a 16,100-square meter atrium, 3.8hectare green roof, and 2.8-hectare reservoir. A separate three-story, 6,450square meter academic and training center sited east of the main complex will also house a 400-seat auditorium, breakout and conference rooms. Located on a 53.6-hectare site, the equivalent of 95 football fields, consolidating functions of the expansive facility under one roof will facilitate efficient ci rculation and foster collaboration among FAW's projected employee population, anticipated to number 7,000. The configuration will also address FAW's concern for employee safety and well-being during the region's harsh winters. Chinese Traditions, History Influenced D e si gn A p p ro achT he faci l i t y' s programmatic organization and orientation on the site were influenced in part by traditional Chinese planning

China panel OKs Ford's bid to end Mazda venture

Denso ties up with Chinese motorcycle parts manufacturer

Ford Motor Co. said it received approval from China's top economic planner to split its venture in China with Mazda Motor Corp., paving the way for the U.S. automaker to increase control of its expansion in the country. The National Development and Reform Commission approved an application for Ford to have a separate venture with Chongqing Changan Automobile Co. instead of the current three-way ownership structure with Mazda, Ford CEO Alan Mulally told reporters last month in Chongqing.....

Auto ownership in China soars to 20 times higher than a decade ago Vehicle ownership by Chinese families is 20 times higher than it was a decade ago, according to China's National Bureau of Statistics. In 2002, every 100 families owned 0.9 vehicles. By 2011, the rate had jumped to 18.6 vehicles. Like China's vehicle ownership rate, the country's retail vehicle sales also soared......

Denso Corp. announced July 4 that Chongqing Denso Co. and Kunshan Gongcheng Electric Equipment Co. integrated their businesses in June. The new joint venture by the two motorcycle equipment manufacturers is called Gongcheng Denso and has started production at two plants in China. "China has the world's largest gasolinepowered motorcycle market, and we look to increase our competitiveness in this market through this integration with Kunshan Gongcheng," said Masahiko Miyaki, senior executive director of Denso's Powertrain Control Systems business group. Gongcheng Denso is manufacturing ignition systems for carburetorequipped engines and will later add the production of ignition systems for electrically controlled fuel-injected engines, which are expected to grow in the market as emission control regulations are tightened. The new company has startup capital of 2.85 billion yen (about $35.9 million) and 690 employees as of June...

principles. This ancient approach aims to balance the flow of energies within a space to assure health and good fortune for its users. From a facility standpoint, designers took care to address the shape of the building's components, vehicular and pedestrian circulation paths, placement and number of entrances, views and sight lines within and across the complex, and the selection of materials. The principles also extended to the configuration of the surrounding natural environment, encompassing site grading, reservoir location, and placement of trees and plantings. Building materials selected for the campus echo Chinese history. The use of terracotta in the complex's façade is a symbolic reference to the entombed Terracotta Army, a collection of more than 8,000 life-size figures of soldiers and horses buried in front of Emperor Qin Shi Huang's tomb.

City of Beijing plans congestion levies China's capital city of Beijing plans to charge congestion fees on motor vehicles by 2015 to ease the region's worsening road congestion and pollution, according to the local government's urban transport development plan for 201015. To improve local traffic conditions, Beijing will enact a series of regulations over the next few years, including a rule allowing local authorities to collect congestion charges, the city government said in the plan released last week. Additional details on how the city will charge congestion fees were not released. The city of Beijing had a fleet of 5 million vehicles and some 20 million residents in 2011. To date, no Chinese cities have levied congestion charges. But to alleviate traffic congestion and to control vehicle exhaust emission, the city of Beijing last year started restricting new car sales to 20,000 units per months....

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Monthly AutoMark Magazine

Automotive Sector - Review

Toyota Corolla becomes world's most popular car with one sold every 40 seconds Global sales of 37.5million mean it replaces Ford's F-series truck as best selling vehicle of all time

Original: A first generation Toyota Corolla Record breaker: The humble Toyota Corolla has become the world's best selling car from 1966. Over the past 40 years one has been sold every 40 seconds. of all time. It'll never stir the passions like a Ferrari and you won't see its picture adorning the bedroom wall of the average adolescent teenage boy. But the venerable Toyota Corolla has overtaken Fords F-series truck to become the best selling vehicle of all time. The ultra-reliable, if perhaps rather dull, Japanese runaround has clocked up global sales of around 37.5 million since it was first rolled out in 1966. With its winning recipe of value-formoney, thrifty gas mileage and a huge dealer network, a Corolla has been sold on average once every 40 seconds for the past 40 years. Now into its tenth generation Corollas are manufactured in Japan, Brazil, Canada, China, India, Indonesia, Malaysia, Pakistan, Philippines, South Africa, Taiwan, Thailand, Turkey and Venezuela. However production in the US, based in Fremont, California, ended in March 2010. Sales of the car really took off during

the 1970s oil crisis as its frugal four cylinder engine offered great mileage, a feature that continues to add to its popularity today. It's success brings to an end an impressive 24 year run by Ford's F-series pick-up truck which, with sales of over 35 million, now pulls over into second place. In third place is the Volkswagen Golf having notched up sales of 27.5 million. VW's Beetle comes in at fourth with 23.5 million sold and Ford's Escort which has sold 20 million, is in fifth. Despite only being in eighth place over all in terms of total sales many experts still rate the Ford Model T as the most successful car ever. Nearly 17 million cars were produced between 1908 and 1927 - a period when car ownership was far less widespread than it is today. Like the Model T the Corolla succeeds because it is inexpensive to buy, inexpensive to operate, reliable and easy to repair. Early Corollas were rear-wheel drive

while later models were mostly frontwheel drive and some models were fourwheel drive. Although always regarded as sensible rather than sporty the Corolla has had some racing pedigree. In 1999 Toyota entered Corollas driven by Carlos Sainz and Didier Auriol into the World Rally Championship subsequently winning the manufacturers title. Despite concerns that the earthquake and Tsunami which hit Japan last year would seriously damage production, Toyota, which is Japan's largest vehicle manufacturer, has posted surprisingly upbeat sales predictions for next year. The firm lifted its 2012 domestic sales forecast to 1.63 million vehicles, up 6.5 percent from its previous prediction and 36 percent higher than 2011, after the government last month decided to reintroduce subsidies for fuel-efficient cars. It is expected to be among the biggest beneficiaries of such green car incentives and subsidies thanks to its broad line-

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Automotive Sector - Review up of hybrid vehicles, including the Aqua, its cheapest and most fuel-efficient hybrid to date, launched late last month. The company's forecast for 18 percent sales growth overseas was unchanged, bringing the global forecast to 8.58 million vehicles, up 21 percent on the previous year, excluding Daihatsu and Hino. That would be a record for the company, whose sales slipped 6 percent to 7.1 million vehicles in 2011, hampered by the massive earthquake in northeast Japan and Thai flooding. Earlier this week on a visit to the Washington Auto show President Barack Obama hailed the rebound of the U.S. car industry. Obama sat inside shiny new plug-in electric hybrids and burly trucks declaring, 'The U.S. auto industry is back.' As Mitt Romney surged ahead in Florida's GOP primary, Obama emphasised his administration's rescue of General Motors and Chrysler from the brink of collapse rival. The President told reporters it was 'good to remember the fact that there were some folks who were willing to let this industry die. Because of folks coming together we are now back at a place where we can compete with any car company in the world.' Obama sat inside shiny new plug-in electric hybrids and burly trucks declaring, 'The U.S. auto industry is back.' As Mitt Romney surged ahead in Florida's GOP primary, Obama emphasised his administration's rescue of General Motors and Chrysler from the brink of collapse rival. The President told reporters it was 'good to remember the fact that there were some folks who were willing to let this industry die. Because of folks coming together we are now back at a place where we can compete with any car company in the world.' Source: www.dailymail.co.uk


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MADE MADEIN INPAKISTAN PAKISTANMOTORCYCLES MOTORCYCLES PRICE LIST LIST RETAIL PRICE

70cc Motorcycle

Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.

Product & Model Name Aan AI-70 Asia Hero AH-70 Bionic AS-70 Crown Lifan CRLF-70 Challenger BA-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Hi-Tech MR-70 New Asia NA-70

Retail Price Rs. 42,500/= Rs. 42,500/= Rs. 42,000/= Rs. 42,000/= Rs. 41,000/= Rs. 42,500/= Rs. 49,000/= Rs. 41,500/= Rs. 45,000/= Rs. 42,500/= Rs. 46,000/= Rs. 47,000/= Rs. 42,500/= Rs. 67,500/= Rs. 43,000/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 44,800/= Rs. 41,500/=

Sr./ No. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45.

Product & Model Name Pak Hero PH-70 Raftar KM-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Sitara GT-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70

Price updated July-2012 www.automark.pk | Sep-2012 | Page 48

Retail Price Rs. 42,500/= Rs. 42,000/= Rs. 47,700/= Rs. 46,200/= Rs. 42,500/= Rs. 42,000/= Rs. 42,500/= Rs. 42,000/= Rs. 40,000/= Rs. 45,50/= Rs. 43,000/= Rs. 44,500/= Rs. 42,400/= Rs. 43,000/= Rs. 42,500/= Rs. 42,500/= Rs. 45,000/= Rs. 42,500/= Rs. 40,000/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/=


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MADE IN PAKISTAN MOTORCYCLES PRICE LIST

125cc Motorcycle No. Brand & Model Name 1. Habib HB-125 2. Sitara ST-125 3. Super Star SS-125 4. Super Star SS-125 DLX 5. Hero RF-125 6. Honda CG-125 std Euro II 7. Honda CG-125 DX 8. Metro MR-125 9. Ravi Storm-125 Euro II

Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,000/= Rs. 59,000/= Rs. 75,000/= Rs. 96,500/= Rs. 116,500/= Rs. 77,000/= Rs. 96,000/=

DYL Motorcycles Sr./ No. 1. 2. 3.

Product & Model Name YD100 Yama4 Janoon 100cc

Retail Price Rs. 77,600/= Rs. 73,700/=

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

Brand &Model Name Ghani GI-100 Habib HB-100 Honda CD-100 Sitara ST-100 Super Star SS-100 Super Power SP-100 Unique UD-100

Retail Price Rs. 55,500/= Rs. 55,000/= Rs. 80,500/= Rs. 55,000/= Rs. 55,000/= Rs. 55,000/= Rs. 60,000/=

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

Product & Model Name Suzuki Sprinter ECO Suzuki Sprinter STD. Suzuki GS-150 Suzuki Shogan

www.automark.pk | Sep-2012 | Page 49

Retail Price Rs. 72,900/= Rs. 76,400/= Rs. 95,500/= Rs. 85,500/=


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