Contents
September-2018
News / Event
Article / Review 20 24 25 35 36 47
19
Retailers’ sales tax registration must to bring out country from hot water Exclusive by Owais Khan Malaysian car Proton reaching high hope after stake sold to Chinese automotive Geely By Aqsa Mirza / Hanif Memon New entrants, new models to check their luck under Imran Khan's government By Ali Hassan
23 28 30 37
Kia Motors to take on Maruti, Hyundai with premium hatchback, sedan First automobile assembly plant in Pakistan received $66 million worth guarantee from World Bank Group by Aqsa Mirza
Inside
48
2019 Hyundai Elantra makes global debut – Toyota Corolla rival
ALHAJ Group signs agreement with Proton Motors in Malaysia Exclusive Report by Automark Master Motor Handed Over OGRA Compliant Vehicles to PSO for petroleum Transportation Super Power introduce Sultan 250cc heavy bike in Pakistan Media Coverage by Automark Pakistan Auto Show 2019 Launching Ceremony Media Coverage by Automark Setting A New benchmark OLX and CARFIRST launched Pakistan’s first live auction platform for used cars in Pakistan Media Coverage by Automark United Bravo to roll out its first car in Pakistan from September 2018 by Hanif Memon
News Updates 29 39 42
Industries ministry hopeful about EDB’s revival
46
International Automotive News
49
Corporate News - Glimpses
59
Baleno to be the first Maruti Suzuki car to be sold as Toyota Vehicles / Car Price List Motorcycles Price LIst
We welcome Ghulam Farooq Sahib in advisory board of Automark Mr. Ghulam Farooq is a well known personality in the automobile industry having experience of more than two decades. By profession, he is a Mechanical Engineer graduated from NED University of Engineering & Technology in 1996. He was born in Karachi and is currently working in Pak Suzuki Motor Co., Ltd. as Executive officers - Supply Chain and looking after Procurement and Development divisions. He joined Pak Suzuki in 1997 as Management Trainee. Apart from current assignments, he has vast experience in the fields of Production operations, Quality and Production Planning.
Ghulam Farooq
September-2018 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 11, Issue 09
Monthly
AUTOMARK Magazine International Technical Editor
Editor-in-Chief Muhammed Hanif Memon
Muhammad Shahzad
Anwar Iqbal - Chief Correspondent COO, Khalid Mushtaq Motors (Pvt) Ltd.,
Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad
Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi
Engr. IHT Farooqui Chief Operating Officer Pak China Motors Karachi
Farhan Hafiz Director Marketing & Sales M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi
Ghulam Faroq Executive Officer & Functional HeadSupply Chain Pak Suzuki Motors Karachi
Advertising Manager
Graphic Designer
Tahir Siddiqui
Salman Hanif
Circulation Manager
Web Master
Hasaan Mustafa
Mustafa Hanif Murtaza Hanif
Contributors in THIS EDITION Aqsa Mirza M. Owais Khan Syed Sarim Raza M. Zahid Malik M. Hanif Memon Ali Hassan
Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Mobile: 0321-2203815
E-mail: automarkpk@gmail.com website: www.automark.pk Whatsapp & Wchat : +92 321 2203815 AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada - L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management
Expectations of Auto industry from the new government Pakistan’s auto industry has a massive potential. Global auto giants are doing investment in Pakistan and introducing new models. Hyundai-Nishat is setting up car assembly plant in Faisalabad. Renault has signed a contract with AlFuttaim to start producing cars in Pakistan. KIA already open three dealership in Pakistan started selling it’s imported cars while assembly plant is under construction. Comparatively, our neighbors are ahead of us in the auto sector with China is the largest producer of automobiles in world and India being the 6th. Auto Industrialists are looking forward towards new PTI government lead by Imran Khan to ease taxes on new car production units as well as on-road pricing which includes VAT and Income Tax which will increase in demand of new cars as well as people taking chances to buy newly introduced brands and models. Auto experts are pinning hopes from PTI government to open new assembly plants in different cities of Pakistan to manufacture vehicles locally. Industry professionals are expecting that the Pakistani rupee would be stable against the US dollar which will put vehicles prices at an economical rate. New PM’s intention is to bring up economy of Pakistan, so whatever measures his Government will take, it will for sure bring revolution in industrial growth. Now the thing is how fast or smartly they start interaction with businesses. At the moment selection of advisor for commerce and industries is in the right direction. And one step from industries is also required, to reach his policy makers with concrete and workable proposals, which can bring; 1) Jobs 2) well being of existing work force 3) improvement in society 4) customer friendly products 5) earning for government 6) investments from abroad 7) investment from existing players in existing industries and for new projects 8) increase in exports. At present there is a big vacuum in Auto manufacturing and engineering sectors. Policy for use of cars by government employees is also expected to be overhauled. A ban on the purchase of cars and return of all vehicles to the Federal / Provincial pool is expected. Only 1000cc cars like Suzuki Cultus will be allowed to government officers from BPS- 17-22 will be allowed. All other vehicles and SUV's misused will be auctioned. Recruitment of drivers will also be halted. It is probably a law will be made to bring shame on the names of those illegally using vehicles and staff at residences. Government vehicles in bazaars and outside schools and at residences to be photographed and reported for seizure.
Another milestone achieved by AlHaj Group
Monthly AutoMark International
BREAKING NEWS
ALHAJ Group signs agreement with Proton Motors, in Malaysia ALHAJ MOTORS
Pakistan’s Alhaj Automotive Private
Limited (a new company of ALHAJ Group) have signed an agreement with Peru sa haa n Ot omo bi l Nasi onal (National Automobile Company) aka PROTON on 29th August as the Exclusive Authorized Distributor and Assemblers of Proton Vehicles in Pakistan. Agreement signing ceremony was held at Proton Motors Head Office in Kuala Lumpur by Mr. Hilal Khan Afridi, along with the Alhaj Group Chairman Mr. Haji Shah Jee Gul Afridi, Mr. Nadeem Ahmed Salmi and Mr. Farhan Hafiz representing ALHAJ GROUP while Mr. S t e v e n XU Y u a n, D i r e c t o r o f International Sales Division, Proton was present at the occasion. As per the initial information available ALHAJ plans to introduce modern and high tech vehicles in different categories including entry level sedans, Mid level Sedans, Crossovers/ SUVs, MPV and Hatchbacks to of entry-level like Sedan, Midsize Sedans, Crossovers/SUV, MPVs, and Hatchbacks in Pakistan. The vehicles will be equipped with the latest and state of the art technologies. Automark heard that Al-Haj Motors, already acquire land for a separate assembly plant for Proton cars near-by Port Qasim area in Karachi. Al-Haj Group is a leading Business Group involved in Transportation, Oil, Tires and are also the Authorized Distributor/Assemblers of FAW
P r o d u ct s a n d H y u nd a i H e a v y Commercial Products in Pakistan which means that they have a very diversified experience especially in Automobile Sector of Pakistan with an equally diversified team of professionals. 'Proton' is the Malaysian based automobile manufacturer which holds a major share in the Malaysian automotive industry. Established in 1983, it was a symbol of national pride and a country mo ving towards industrialization. On last August, The Chinese owner of Sweden's Volvo Cars Zhejiang Geely Holding Group signed an agreement to acquire a 49.9-percent stake in Malaysia's carmaker Proton. Zhejiang Geely Holding Group, which controls Hong Kong-based Geely Automobile and Sweden’s Volvo Car Group, acquire 49 percent of Proton, the sources said. Proton also controls British sports car maker Lotus.
The deal gives Geely a distribution network in Southeast Asia, where non-Japanese brands have struggled. Proton gets a financially strong partner and possibly more advanced technology. Geely is one of China's biggest independent auto brands. Founded in 1986 as a refrigerator manufacturer, it started producing motorcycles in the 1990s and launched its first car in 2002. It bought Volvo from Ford Motor Co. in 2010. Zhang suggested a possible strategy might be to manufacture Geely's latest models under the Proton name. "The current Geely models are much better than the current Proton models," said Zhang. "The Protons are basically some old Mitsubishi products, very old." We will keep our reades updated once we find more about this ALHAJ-PROTON Partnership.
www.automark.pk | September-2018 | Page 19
Exclusive Article by Owais Khan
Retailers’ sales tax registration must to bring out country from hot water
PTI Govt must cut GST to 15% from 17%
P
akistan is facing approximately Rs 5.5 trillion sales tax evasions annually due to non registration of retailers, dealers, wholesalers and shopkeepers who sell imported goods, claims Mohammad Sabir Sheikh Chairman Pakistan Tajir Itehad (TajirPTI). “Who will check whether manufacturers, importers, wholesalers, suppliers etc are paying 100 per cent sales tax amount to the national exchequer on their locally produced or imported goods supplied by them to the trade and business because majority of the retailers are not
registered in the sales tax net,� he said. Tax evasion cannot be curbed or checked unless all the retailers and dealers are brought into the sales tax net, He said adding registering retailers under the net is not a difficult task as the previous government had not taken this issue seriously. Sabir Sheikh said FBR should improve
its sales tax collection system with the registration of all the retailers all over Pakistan and this task can be achieved easily by taking feedback from retailers w ho w an t to su ppo rt r ev en ue generation. Previous meetings in the past on sales tax collection issue were held with those representatives of trade bodies who were not directly involved with the sales tax system, he said. After bringing retailers into the sales tax paying system, he said the manufacturers and importers would fail to evade sales tax besides it would control misdeclaration and under invoicing. Thirdly, the retailers would fail to produce receipt of smuggled goods and as a result they would be apprehended. For improving sales tax recovery, the government should reduce sales tax from 17 per cent to 15 per cent in first two years of their tenure and further cutting it by another two per cent in the next two years in order to get fruitful results. Cut in sales tax would encourage retailers to come under sales tax net, Sabir Sheikh said. There is no need for slashing sales tax of 20 per cent on unregistered retailers and firms. In case retailers and dealers do not register them with sales tax net it means that they are evading sales tax as profit margin in the market is not more than two per cent. How the
www.automark.pk | September-2018 | Page 20
Monthly AutoMark International
Sabir said the business community has also supported restructuring of the FBR as highlighted by Prime Minister Imran Khan in his first-ever speech after victory in the elections. He added reduction in tax rates is needed to expand the tax net and increase tax collection
retailers would pay additional five per cent sales tax due to non registration. Sabir said the business community has also supported restructuring of the FBR as highlighted by Prime Minister Imran Khan in his first-ever speech after victory in the elections. He added reduction in tax rates is needed to expand the tax net and increase tax collection. Bringing back plundered public money from abroad will resolve half of the country’s economic crisis, he said adding most encouraging statement from Imran Khan came that “he will save public money.” Of the country’s 200 million population, just eight million paid taxes. Prime Minister believes that besides restricting FBR there is a dire need to expand the tax base. Taxing the privileged class was a logical option, instead of overburdening the salaried class. He said everybody now eyes next 100 days of PTI government as highly crucial for the new government in which many strict actions would be taken but the government should avoid taking any steps that would hurt local industry,
traders and common men. He hoped that the Prime Minster’s new measures would prove in right direction helping country’s economy to come on right development track. Development oriented policies from the new government would restore confidence among businessmen thus encouraging them to invest in their country. Pro industry policies and stable exchange rate would also lure foreign investors. He said the local industry is operating under tremendous pressure due to soaring production cost on account of uncertain exchange rates due to which exports and imports are equally
disturbed. There is also a need to improve infrastructure. FBR has provisionally collected over Rs 3,751 billion during 2017-18 against annual target of Rs 3,935 billion, showing a shortfall of Rs 184 billion. The figures do not include Rs 90 billion received on account of foreign and domestic amnesty schemes. After adding Rs 90 billion of amnesty scheme in total collection, the total collection would reach Rs 3,841 billion. The FBR during 2017-18 has recorded a provisional net revenue collection of over Rs 3,751 billion as against Rs 3,368
Finance Minister Asad Umer has said improving the living standard of people and economy was the mission of Pakistan T e hr e e k - e - I n s a f ’ s ( P T I ) de m o cr a t i c al l y e l e c te d Asad Umer said it was a big challenge for PTI government to ensure provision of all basic amenities of life to the masses. “We will have to create job opportunities for unemployed youth,” he said. “We will improve the economy and Pakistan according to the wishes of the masses,” he said. No nation could make progress without a strong economy, he added.
www.automark.pk | September-2018 | Page 21
continued on next page
Article - continued from previous page billion collected during the previous fiscal year, excluding collection on account of book adjustments for June 2018. The FBR has also recorded an increase of around 11.37 per cent over the revenue collected during last fiscal year. FBR has also released Rs 45 billion more refunds than the previous year. Annual assigned revenue targets for Inland Revenue Service and Customs Duty were Rs 3,335 billion and Rs 600 billion, respectively. Whereas, Customs Duty has surpassed its target by Rs 6 billion, Inland Revenue fell short by Rs 190 billion. Tax-wise break-up of revenue collected revealed that the FBR collected Rs 1,441 billion as income tax against the assigned target of Rs 1,562 billion, showing a shortfall of Rs 121 billion. Sales tax collection was Rs 1,488 billion against the target of Rs 1,541 billion, reflecting a shortfall of Rs 53 billion. Federal Excise Duty collection remained Rs 216 billion against target of Rs 232 billion, reflecting a shortfall of Rs 16 billion. FBR has described excessive refund adjustments, suspension of Intelligence and Investigation Inland Revenue (I&IIR) powers, reduced rates of withholding taxes on telecom companies, sales tax refund payments and less profit of banking sector as some of the major reasons behind shortfall of Rs 184 billion in revenue collection during 2017-18. The FBR has witnessed negative impact of Rs 45 billion due to payments of sales tax refunds in 2017-18. Against Rs 26 billion refunds issued in the fiscal year 2016-17, the refunds stand at Rs 71 billion (impact of Rs 45 billion) in the fiscal year 2017-18. Other reasons for revenue shortfall included excessive refund adjustments having revenue impact of Rs 19 billion during July-June 2017-18. The advance tax/ demands from taxpayers are adjusted against pending refunds leading to short realization of actual tax. This resulted in revenue impact of Rs
19 billion. The FBR said that the government intervention in power production (IPPs) led to decreased consumption of furnace oil thereby giving negative impact on revenue to the tune of Rs 19 billion during the period under review. The FBR has suffered adverse revenue impact of Rs 11.2 billion due to suspension of Intellig ence and Investigation Inland Revenue (I&I-IR) operations & SRO 116 & 117(1)/2015 & SRO 611(I)/2016. The operations of Intelligence & Investigation Wing (IR) were suspended leading to a decline of revenue from Rs 12.4 billion in fiscal year 2016-17 to Rs 1.2 billion in FY 201718. This had extremely negative impact on revenue collection to the tune of Rs 11.2 billion. About the collection of withholding taxes
Monthly AutoMark International The FBR said that the sales tax from fertilizer and pesticides sector has revenue impact of Rs 8 billion during July-June (2017-18). The decrease in rate of sales tax from 17% to 5% in these sectors resulted in excessive input tax leading to a decline in revenue registered (Rs 8 billion). The FBR has analyzed the collection from auction of 3G/4G licenses in 201718. In fiscal year 2016-17, windfall collection from auction of 3G/4G licenses was received which is missing in FY 2017-18 to the tune of Rs 7.2 billion. The decline in local sale of sugar and increase in exports of this commodity due to government policies (subsidized exports) caused revenue impact of Rs 5 billion in 2017-18. The decrease in federal excise duty
There is no need for slashing sales tax of 20 per cent on unregistered retailers and firms. In case retailers and dealers do not register them with sales tax net it means that they are evading sales tax as profit margin in the market is not more than two per cent from telecos, the FBR witnessed revenue implications of Rs 8.6 billion in 201718 due to different reduction in taxes within the telecom sector. The FBR said that the rates of withholding tax under section 236 of the Income Tax Ordinance were reduced from 14% to 12.5% with estimated impact of Rs 5 billion in 2017-18. However, actual revenue impact during the last fiscal year came to Rs 9.6 billion i.e. an additional amount of Rs 4.6 billion in 2017-18. So far, the impact of judgment of Supreme Court of Pakistan dated 11.6.2018 remains Rs 4 billion. The FBR has said that the decline in collection under section 147 (5B) i.e. advance tax on capital gains on securities was Rs 8.3 billion. The amount is collected by the National Clearing Company of Pakistan Limited (NCCPL).
(FED) on natural gas due to lesser supply of natural gas has negative impact of Rs 3 billion on revenue collection during 2017-18. In case of petroleum prices, sources said that the offsetting POL prices against tax led to decline in revenue from petroleum sector. The FBR new policy initiatives for i nc r ea si ng c o l l e ct io n i n cl u d e d liquidation of revenue stuck in appeals; restoration of SROs relating intelligence & Investigation wing; expansion of broadening of tax base (BTB) network; disposal of huge pendency of audit; further enhancement of revenue collection through own efforts; enhanced role of ADRC; redistribution of work load/jurisdiction and outreach to district level for better facilitation.
The FBR has suffered adverse revenue impact of Rs 11.2 billion due to suspension of Intelligence and Investigation Inland Revenue (I&I-IR) operations & SRO 116 & 117(1)/2015 & SRO 611(I)/2016. The operations of Intelligence & Investigation Wing (IR) were suspended leading to a decline of revenue from Rs 12.4 billion in fiscal year 2016-17 to Rs 1.2 billion in FY 2017-18. This had extremely negative impact on revenue collection to the tune of Rs 11.2 billion www.automark.pk | September-2018 | Page 22
Handing Over Ceremony - Media Coverage by Automark
Master Motor Handed Over OGRA Compliant Vehicles to PSO for petroleum Transportation Master Motor Corporation Ltd. (MMCL) in pursuit of its commitment to s a f e transportation of petroleum products has developed vehicles in compliance with standards set by Oil and Gas Regulatory Authority (OGRA).” Managing Director of MMCL Nadeem Malik said this at an event recently held in Karachi. While handing over the keys of a fleet of more than 40 vehicles to contractors of Pakistan State Oil (PSO), he commended the efforts of PSO and OGRA for their efforts to ensure the safety of transporters, transportation vehicles and the common commuter. He said that Master Motor strictly follows the standards and regulations set by OGRA and addition of our trucks to PSO fleet is a proof of our commitment. “MMCL has a vision to serve the transport industry of Pakistan with the highest quality products and after sales services. We are the first company to offer complete range of products to facilitate the complete commercial vehicle segment,” he added. MMCL’s growth in the past fiscal year was the highest in the automotive
industry with a year on year growth rate of 63 percent. “This significant increase in production and sales is a sign of customers’ trust in quality of our products and after sales services network which is one of the largest such networks in the country catering to more than 10,000 master vehicles already plying on road,” said Nadeem. “PSO as nation's largest energy company has been striving to help national economy by building and enhancing a wide-spread retail network with the support of a well-established storage and supply infrastructure,” said Managing Director PSO, Sheikh Imran ul Haq. “Addition of vehicles manufactured by Master Motors as per the OGRA guidelines to our fleet of over 8000
vehicles will boost the performance and safety of our POL transportation network,” he added. It is worth mentioning here that MMCL is also an authorized assembler and dealer of world’s renowned brands like Mitsubishi Fuso, Foton Daimler, IVECO. MMCL follows OGRA rules and guidelines that covers German National Standards, EEC standards for European co mmunities, “NEQS” National Environmental Quality Standards prescribed by the Environmental Protection Agency of Pakistan, National Highway Authority, standard for truck chassis, AD R – Associati on of Dangerous goods road transportation, Fire Extinguisher etc which ensures safety factor.
www.automark.pk | September-2018 | Page 23
An Exclusive review by Hanif Memon
Monthly AutoMark International
Malaysian car Proton reaching high hope after stake sold to Chinese automotive Geely
History of Malaysian 'Proton'
'Proton' is the Malaysian based automobile manufacturer which holds a major share in the Malaysian automotive industry. Established in 1983, it was a symbol of national pride and a co untr y moving towards industrialization. In Britain, it sold 10,300 units in its first year, far above expectations. By 1998 and thereafter, Proton grabbed some 80% of the passenger car market. However, Proton never picked up speed, having been overtaken by foreign competitors and subsequently and struggled over its future direction. Proton was set up by the Government in 1983 and started building cars two years later in association with Mitsubishi of Japan, which took up a 30% equity interest. The new millennium was a difficult one for Proton. The launch of GEN.2, which saw the first Proton model that featured the company’s proprietary Campro engine, did not meet expectations. By March 2004, Proton ended its long-time association with Japan’s Mitsubishi and was left to chart its own future.
Chinese Geely buys shares of 'Proton'
In May 2017, Zhejiang Geely HoldIn May 2017, Zhejiang Geely Holding
Group and DRB-Hicom signed a deal according to which Zhejiang Geely Holding Group bought a 49.9% stake in Proton Cars. Under this deal, Geely Holding Group was committed to seeing a full revival of Proton Cars to being the number one Malaysian domestic brand and the leading brand in South East Asia. On 3rd August, China's Zhejiang Geely Holding Group signed an agreement to acquire a 49.9-percent stake in Malaysia's carmaker Proton, 30 days after an initial deal was reached between Geely and DRB-Hicom, the Malaysian conglomerate that owns 100 percent of Proton. The deal was valued at 460.3 million ringgit (108 million U.S. dollars), including a cash injection of 170.3 million ringgit into Proton by Geely, and a sports utility vehicle platform that is worth 290 million ringgit, DRB-Hicom Managing Director Syed Faisal Albar told a press conference following the signing ceremony.
'Proton' launched in Pakistan in 2006 but unsuccessfully left
Proton launched in Pakistan back in 2006 with a hope of development and expansion. Launching ceremony which was held on Friday 15th September 2006 was honored by the then Chief Minister
of Sindh Mr. Arbab Ghulam Raheem. Four models were introduced namely the Impian 1.6, Gen-2 1.3 & 1.6, Wira 1.5 and Saga 1.3. Most of the Proton vehicles were based on Mitsubishi’s technology as Proton had a technical collaboration agreement with the Japanese manufacturer. The vehicles entered in Pakistan being CNG equipped and were priced quite economically but sadly probably due to the lack of vision and finances of the local distributor in Pakistan Proton vehicle could not get the attention it deserved and thus was discontinued very soon. However, we can still see few Proton cars running on Pakistani roads. The public stopped relying on this new venture due to some obvious reasons such as no after sale services and incompetent mechanical services provided by the local company representing Proton in Pakistan. Undoubtedly, Pakistani automobile industry has a lot of potentials and it is rapidly growing but the consumer pattern is quite divergent here and which was the reason why Proton did not have a success story in Pakistan. Some customers would prefer resale, while others would go for the most unique car with best features. Some would prefer fuel economy, the other would want a gas guzzling V8s; just to flaunt it to the public. Therefore, it would be wrong to say that resale was the only reason to the Proton’s end.
Future Prospects
Looking at the number of used imported cars on the road, it seems that if Proton had improved on their after sales and quality of labor, they could have been a great company. We are hopeful that Malaysian 'Proton' would come back soon in Pakistan enriched with innovative and modern features with the backing of Geely/Volvo Technology, Safety and reliability along with the complete backup support and reasonable priced vehicle.
www.automark.pk | September-2018 | Page 24
Exclusive Review by Owais Khan
New entrants, new models to check their luck under Imran Khan's government
A
major policy initiative by the PML-N government to announce new Auto D ev elo pment P o licy 2016-2021 will materialize under the tenure of new Prime Minister Imran Khan of Pakistan Tehrik-e-Insaaf. Auto consumers are anxious to see a galore of models from new entrants like Hyundai, KIA, Renault, Nissan, etc vehicles. Not only new jobs will open but the economy will also strengthen. Around 300,000 units of additional capacity in cars, light commercial vehicles, light trucks and buses from new automobile entrants will come up in the next one to two years as 11 players got Greenfield status followed by Brownfield status awarded to two companies while Greenfield status for two companies is under approval. Some 11 companies who got Greenfield status are KIA Lucky Motors, Renault Al Futtaim, Hyundai Nishat, Sazgar Engineering, Regal Automobile, Khalid Mushtaq, Master Motors, United Motors, Topsun Motors, Pak-China Motors and JWForland. Ghandhara Nissan and Daehan Dewan fall in Brownfield category while as per market reports two companies – Cavalier Automotive and Habib Rafiq have also applied for green field status and waiting for approval. It means that Pakistan has succeeded in bringing in over one billion dollar investment in the auto sector alone through new entrants.
One of the key players aiming to cash their luck in Pakistan is KIA Lucky Motors which aims to produce 25,00030,000 cars, SUVs, MPVs and LCVs per year at Bin Qasim Industrial Park. All eyes are set at Hyundai Nishat having plant capacity of 30,000 vehicles per annum to produce over 6,000 cars, LCVs and SUVs at Faisalabad plant. Lahore-based Sazgar has plant capacity of over 20,000 vehicles per annum to produce cars, SUVs and LCVs. United Auto Industries almost ready to roll out cars and LCVs in its Lahore plant while Khalid Mushtaq, having annual plant capacity of 1,200 vehicles per annum, will make vehicles at Nooriabad Industrial area. With plant capacity of 30,000 units per annum, Master Motors in its Port Qasim plant will assemble cars and LCVs. At an annual capacity of 32,000 vehicles per year, Ghandhara Nissan will make cars, LCVs and SUVs at its Port Qasim plant. So far everything looks good but one thing must be causing some anxiety among new entrants and that is unstable exchange rate and government’s future policy on used car imports. These two things pose a serious threat to the new players. It is premature to predict a stable or a difficult future of new players but one thing is clear that Chinese cars especially may take a lot of time to create a niche in Japanese dominated market. It is observed that people do not have trust on reliability and quality of Chinese cars
mainly. KIA and Hyundai have already tested their luck which later proved a bad luck for Korean auto giant as its local partner became defaulter resulting in closure of local production. It will be interesting to see how Kia and Hyundai will manage to strengthen its position in their second chance. Kia and Hyundai vehicles in the last few years in other countries have emerged as strong challenger to Ja panese and E ur o pea n r iv a ls but Pakistan is totally an uncertain market. Nissan has also tested its Sunny but it did not succeed due to multiple reasons. Now Nissan with its local partner will again test their luck through Datsun models. Lets see how Datsun will be able to compete with imported 660cc vehicles and upcoming locally made Alto 660cc. The road ahead is quite bumpy for Nissan. Some existing Japanese players are excited keeping in view of their future plans. Pak Suzuki is coming out with Alto 660cc car either in first or third quarter of next year, replacing iconic Mehran VXR. Pak Suzuki has already decided to stop production of VX models from November 2018, thanks to Pak Suzuki. As per market reports the Indus Motor Company (IMC) is planning to launch Vios in December 2018 by replacing XLI and GLI models. IMC may launch four to five models of Vios with 1,300-1,500cc both automatic and manual transmissions. Ghandhara Industries had launched
www.automark.pk | September-2018 | Page 25 continued on next page
Continued from previous page imported D-Max SUV model but later it will be produced locally. New entrants will avail the benefits of low rates of duties for importing their parts as completely knocked kits (CKD) for three years. The new players may give tough competition to the existing Japanese assemblers. Barring Honda Cars Limited (HACL), Pak Suzuki Motor Company Limited (PSMCL) has been notorious in maintaining its outdated and obsolete technology for 30 years especially in the case of Suzuki Mehran, Ravi and Bolan. The competition between new and existing players is set to become tougher than ever and consumers will have choices to purchase cars as per their desire. However, it is feared that a new cartel will emerge to join hands with the existing cartel of Japanese assemblers leaving the consumers helpless again who may witness three to four times price hike in a year on excuse of rupeedollar parity. However, one bad news appears in the local media regarding shelving of plan of Honda Brio by Honda Atlas Cars Pakistan (HACP) recently due to volatile exchange rates making the cost of vehicle unfeasible. The management HACP has deferred the introduction of a new locallyassembled car owing to the country’s uncertain economic condition. The company had already given the drawings of dies, tools and moulds to local vendors some six months back. HACP has now asked local vendors to cancel their activities for parts development, vendors for Honda cars said adding the company has also asked the vendors to give back the drawings. The car assembler became skeptical when the rupee lost the value by five per cent few months back. Now the currency situation is highly volatile, making the cost of vehicle unfeasible. HACP was considering introducing locally assembled 1,200cc Brio by 2019 which could add more than 3,000 units in company’s total production. The reason given by the company to suspend local assembly is hard to stomach when other existing and new assemblers are already taking a high risk to come out with new models despite the fact that their stakes are definitely in other auto businesses like
two wheelers and are certainly not well organized in big vehicle segments. It is time that Pakistan should move forward and for this purpose the Ministry of Science and Technology has already alarmed the local assemblers to gear up for future challenges. As per Science Ministry, technology requirement is globally raised by an automaker (OEMs) to meet a market need or enhance competitiveness. The R&D must be carried out with the firm or in a university or by an auto part maker (APM), in conjunction with the OEM. In Pakistan there is no local auto maker, the R&D is carried out back home by the foreign partner and the local OEM and the APMs all make to print, having been provided the design, drawing, technical data and standards. Additionally technical support through technical man power, training and visits is provided. However design parameters and testing details and procedures are not provided, so technology is not wholly transferred. Technology Foresight 2017-2025 in this environment is challenging, especially when the automotive industry is in transition facing challenges daily of revolutionary technologies shaping and de-shaping. The Ministry said Pakistan’s automotive industry had its beginning soon after the birth of the country. It did not inherit anything in the automotive field and little else in other industrial sectors too. General Motors started assembly of Bedford trucks in 1949 from semi knocked down kits. They later became Ghandhara Motor and introduced CBU Vauxhall cars, whilst indigenization of Bedford trucks continued steadily. Even an engine assembly plant for the truck called Bela engineers, was set up as separate company in the beginning of 70’s. In the 60’s American Motors Jeep began to be progressively manufactured, but car manufacturing came into its own only when Suzuki tied up with Pakistan Automobile Corporation (PACO) and in early 80’s the first Suzuki FX was rolled out, followed later by Toyota and Honda in early 90’s. Nissan came in the same decade but played a very short innings.
Chevorlet came and went at about the same time, with its Daewoo’s small car, Matiz, Hyundai LCVs came later, as well as their Santro Car. The LCV became very popular but due to dispute within the sponsoring family could not sustain. KIA also came and went as a shooting star because the local sponsors ran into problems with the government. Pakistan has had many false starts in indigenous manufacturing of vehicles. In late 70’s Pakistan produced the first indigenous 4x4 vehicles called Nishan based on American Motors Jeep being manufactured by Naya Daur Motors. This was led by the armed forces at the behest of the head of government. The project had a very short life. In 80’s the first local LCV called proficient based on Suzuki Pick up, was launched, in the 90’s the first local truck Yasoob came and later in the first decade of the century a local car REVO was introduced as well as Zabardast truck and Zabardast 4x4. The LCV and the car plus the Zabardast brand of Vehicles, died because of paucity of working capital whilst the truck was killed by the armed forces, who had helped give it birth. Pakistan is ranked 33rd by volume amongst the auto manufacturing countries. It produces all kinds of vehicles under collaboration but currently has no local manufacturer of any indigenous 4-wheeler. In 2007, the government launched the Auto Industry Development Programme (AIDP) - as policy interventions to enco ur ag e O rig inal Eq uipm ent Manufacturers (OEMs) / vendors / new investors to make medium to long term decisions to develop critical components and acquire technology transfer. AIDP aimed to facilitate the auto industry a s a f e t r an s i t i o n f r o m d e l e t i o n programmes, not allowed under TRIMS to the Tariff-based system environment and also assist in planned expansion of the capacity of OEMs and Vendors, achieve competitiveness, encourage technology enhancement, and achieve further localization and possible integration with the global value chain. However, AIDP did not yield desired results due to lack of implementation in letter and spirit. Some of the salient reasons were; lack of government funds
www.automark.pk | September-2018 | Page 26
Monthly AutoMark International to meet the programme parameters, as Technology Assistance Funds, HR development funds, machinery funding were not provided. As many as 49 fiscal interventions were made during the period inducing uncertainty conditions laid down for new investors in new investor’s policy were not attractive. Even the suggested tariff rates in the plan were not implemented on one pretext or another. The Economic Coordination Committee of Cabinet constituted a committee entrusted to formulate Automotive Development Policy. As a result of deliberations of committee members from academia, industry, government representatives and community / consumer, the Automotive Development Policy (2016-21) was formulated in 2016 which envisaged development plans for the automobile Industry in Pakistan to facilitate higher volumes, attract investment, ensure a level playing field for competition and offer higher quality in-line with emerging opportunities within the country and in the region. The policy as finalized by the PML-N
government approved and notified, was discriminatory against the existing OEMs in the country and did not offer anything to APMs. The provision of Funds for Technology Assistance and HR development were also withdrawn. The enunciated objective of the policy is to create a balance between industrial g r o w t h a nd t a r i f f s t o e n s u r e sustainability for all stakeholders whilst at taching pr ime importance t o consumer welfare. The policy provides consistency and predictability for new investors with a mid-term policy review mechanism to cater to emerging developments to increase production of automotives by the year 2021. The main Goals of the policy are; Automotive industry contributes 2.8 per cent of GDP; the industry is contributing over Rs 120 billion to national exchequer; over 2.4 million Pakistanis are employed because of auto and allied industries, supporting minimally 12 million people. It is the count of road motor vehicles per 1000 inhabitants. Motorization Index of Pakistan and has been calculated using statistics of Passenger
cars, Jeeps, station wagons, and taxcabs as given in Pakistan’s Statistical Year Book 2015 excluding two and three wheelers. It shows an increasing trend. Pakistan has 15.6 vehicles/1,000 persons, India 18, Philippines 30, Indonesia 69, Thailand 206, and Malaysia 361. Thus the potential for growth and ameliorating the economy is very large. This is called the Motorization Index. Due to lower per capita, only 16 out of 1,000 people in Pakistan currently own a vehicle, which is significantly lower than other regional countries. It is obvious that the potential for growth is huge which will substantially ameliorate the economy of the country. In the era of globalization, the key to economic success lies in continuous innovation to achieve ever-higher productivity and thus enhanced competitiveness. Higher productivity calls for new technologies. Thus, technology innovation is decisive for increased competitiveness and economic and social development.
www.automark.pk | September-2018 | Page 00
Launching Ceremony - Media Coverage
Monthly AutoMark International
Super Power introduce Sultan 250cc heavy bike in Pakistan
N.J. Auto Industries, launched Super Power Sultan 250cc (SP 250) motorbike in Pakistan on 26th August 2018. Group Chairman Haji Muhammad Younus Pirani, Director Marketing & Sales Naveed Pirani, Kashan Pirani and team of Super Power were present at the occasion. Prominent dealers and media attend the event. Captain of Pakistani cricket team Sarfraz Ahmed was the chief guest for this launching ceremony.
Sultan 250cc Specs and Price in Pakistan This 250cc motorbike is actually Loncin GP 250cc from China, earlier in 2016 Loncin 250cc was launched in Russia and in January 2018 in Bangladesh. Super Power Motorcycles are known to bring different motorbikes in Pakistan such as Archi 150cc and Leo 200cc now keeping the youth in mind Super Power Sultan 250 is finally here.
Super Power Sultan 250cc Features
Super Power Sultan 250cc has Projector headlamp with daytime running LED lights which appears to be good enough for visibility at night and gives a robust look during daytime. Super Power Sultan 250cc uses front and rear Disc Brakes which provide ample stopping power even at high speeds unlike Super Power Leo 200cc which has rear drum brakes. Super Power Sultan 250cc (SP250) has a 250cc single cylinder overhead cam (OHC) engine which is better than the overhead valve engines (OHV) giving a smoother powerband and less vibrations and a better fuel economy with good
power. Super Power Sultan 250cc has a digital LCD meter which provides good visibility at night and has a digital speedometer an analogue tachometer gear shift indicator and a digital fuel gauge. Super Power Sultan 250cc has a sporty free flow exhaust system giving good performance and heavy sports type sound which opens up at around 5000 RPM. Super Power Sultan 250cc (SP 250CC) features a stylish and sporty seat like that of a Yamaha YBR 125 which gives you good support for a spirited ride with enough space for a pillion. Super Power Sultan 250cc has a high capacity fuel tank which can hold upto 12 liters of fuel which gives 24-26 kilometers per liter average. Super Power Sultan 250cc (SP 250CC) has Indicators in the front fairing with daytime running LED lights which makes the motorbike stands out from the crowd. Super Power Sultan 250cc (SP 250CC)
has a stylish and functional LED tail light instead of a halogen bulb which gives more visibility at night and offers an attraction of MOTO GP Bikes.
Super Power Sultan 250cc (SP250) Price in Pakistan
The price of Super Power Sultan 250cc (SP250) in Pakistan is PKR 290,000. There are two colours available in the market of the Super Power Sultan 250cc (SP250) White and Black. The company Super Power claims 105 kilometer s per hour to p speed meanwhile in a video below you can see the rider easily going at 125 kilometers per hour. More of a fun commuter bike with good styling, comfort and short runs. It is a lightweight motorcycle made for fun and spirited rides in no way it’s a straight line to p speed mot or cyc le but nonetheless a fun motorbike to ride on twisty roads with good grip and braking power it gives the rider more confident.
www.automark.pk | September-2018 | Page 28
Monthly AutoMark International
Automotive News - Update
Industries ministry hopeful about EDB’s revival The shutdown decision was made in a meeting of the Cabinet Committee on Energy in 2017, which was chaired by former prime minister Nawaz Sharif. An official revealed that a prominent businessman from Lahore, who was setting up an auto plant under the new auto policy, had complained to the then premier that the EDB was creating hurdles in the way of taking necessary approvals
The Ministry of Industries and Production is set to present a case before the government of Pakistan Tehreek-eInsaf (PTI) for reversing the previous government’s decision of shutting down the Engineering Development Board (EDB). EDB, a wing of the industries ministry, was dissolved for alleged involvement of it s st af f in co rr upti on a nd malpractices as well as for creating hurdles in the way of investment of billions of dollars. The shutdown decision was made in a meeting of the Cabinet Committee on Energy in 2017, which was chaired by former prime minister Nawaz Sharif. An official revealed that a prominent businessman from Lahore, who was setting up an auto plant under the new auto policy, had complained to the then premier that the EDB was creating hurdles in the way of taking necessary approvals. According to the official, the EDB was required to implement the new auto policy, but it created obstacles that discouraged potential new entrants, who had already done 80-90% work and imported machinery for setting up manufacturing plants in Pakistan. The EDB’s reluctance to give the go-ahead prompted the new players to lodge a complaint with the government. The government had unveiled the new auto policy to stimulate investment in the vehicle manufacturing industry in an attempt to break the monopoly of existing three major players, which were
marketing vehicles at higher prices and counting on obsolete technology. Sharif gave approval for disbanding the EDB with immediate effect. During the energy committee meeting, he was informed that the EDB was not performing its duties and had failed to take appropriate steps to regulate and promote engineering enterprises. It was also noted that malpractices had been widely prevalent in the engineering board and businesses were being exploited by its staff – a norm in dealing with the enterprises. The meeting was told that the EDB had become a major impediment to improving the ease of doing business and creating an enabling environment for industrial expansion and economic development. After comprehensive discussions, it transpired that the EDB was not serving any useful purpose and had rather become a stumbling block to good governance. Therefore, Sharif decided to close the board with immediate effect. The Ministry of Industries and Production again tabled a case before the cabinet chaired by then prime minister Shahid Khaqan Abbasi in April
this year, seeking withdrawal of the decision of closing down the EDB. The ministry emphasised that there was a dire need to have an entity designed to foster technological development, promote R&D and create enabling environment with quantifiable and empirically observable metrics based on key performance indicators. The ministry stated that by virtue of the board’s technically proven background, it possessed a cutting edge capacity to augment and enhance the engineering base of Pakistan. The board was designed not only to serve as the regulatory arm of the ministry, but it was also tasked with examining and scrutinising all the memoranda of understanding (MoUs) related to trade policy, engineering practices and knowledge sharing for the ministries of commerce, foreign affairs, defence and the Board of Investment (BoI). The cabinet was requested to review the decision regarding the closure of EDB as that step would adversely impact the industrial sector with damaging longterm consequences and collateral damage to the nascent national innovation campaign. However, the cabinet turned down the plea and upheld the decision of shutting down the EDB. The official said the Ministry of Industries was now hopeful that the new government would review the decision. Published in The Express Tribune, August 16th, 2018.
www.automark.pk | September-2018 | Page 29
Pakistan Auto Show from 12 - 14 April-2019
Monthly AutoMark International
Pakistan Auto Show 2019 Launching Ceremony RISING PAKISTAN
The 15TH Edition of the mega event PAKISTAN AUTO SHOW 2019 scheduled to be held from 12th -14th April2019 with the theme ‘RISING PAKISTAN’ has being launched at Movenpick Hotel on Saturday 11th 2018, the Show is already 50% sold out. The launching included members from the industry (PAAPAM MEMBERS), OEMs, Government Organizations, Foreign Consulates including the, 1. Consulate of People Republic of China (a) Mr. Guo Chunshui, Counsellor (b) Mr. Qin Xuiqian, Councillor Attache 2. Consulate of Japan (a) Mr. Kazuo Tsukada, Deputy Consul General 3. Consulate of Germany (a) Mr. Eugen Wollfarth, Consul General 4. Consulate of Russia (a) Mr. Ruslan Aliev, Consul General Academia(NED, Sir Syed & NUST), Allied industry etc. Speeches were held by the Senior Vice Chairman Mr. Ashraf Shaikh, Vice Chairman Syed Misbahulhaq and the Chief Organizer of the mega event and former chairman of the association Mashood Khan. The Senior Vice Chairman Mr. Muhammad Ashr af started the pr oce edings by w elc omi ng the distinguished guests. Convener PAPS 2019 , Mashood Khan said praised the new entrants and also emphasized on indigenization and following the outline of the green field investment. Pakistan International Auto Show 2019 is a combina tio n of local an d international players in the automotive industry. As the exhibition has grown rapidly every year, now it welcomes a large number of exhibitors and visitors from all over the world and is known as an annual meeting place for
all those involved in automotive industries. With exhibitors that will depict the local potential the country’s major players including, TOYOTA, HONDA, SUZUKI, ALHAJ FAW, JW Foton INDUSTRIES ROAD PRINCE and many more have Shown great Interest and Enthusiasm to participate, as well as exhibitors and visitors from Europe, Africa, Taiwan, China and many more, PAPS 2019 is going to be the single largest auto sector gathering of Pakistan historically to be held in Karachi ExPO Centre in April. This year, the show will act as a plat form for New Companies like Hyundai, Renault and KIA to showcase their products that will be coming into the Pakistani Market soon. The association will be targeting all the new entrants entering in the Pakistan Arena under green and brown field Schemes. The Show has the same Objectives but we want to focus on Joint Ventures and Technology Collaborations this year. We also want to introduce different EV areas for the Industry. Following are the Fundamental Objectives: - Showcase the Potentials of the industry through APMs, OEMs, Aftermarket for Policy makers. - Increase the International Presence of the event through depicting different Technology manufacturers, and raw material providers. - A platform to make feasibilities for Local and International Joint Ventures.
- Exports has always been a key point for the local APM industry, and this year, we will do much more to increase the footprint of international buyers from all over the world, especially, Europe, Turkey , Africa and Russia. The exhibition will showcase topics and discussions that are the latest trend in the international Auto Parts Industry. Dif fere nt c onfere nc es cove ri ng important topics in the automotive industry such as Technical upgradation, How to Export your products? Seminars on innovation and ideas the Pakistani Auto Industry is working on will be held parallel in the conference hall of Karachi International Expo Center. A strong Academia Industry linkage will be depicted at the event. Rising Pakistan will be the main Theme of the exhibition, with a focus on upgrading the technology level of the in du st r y to c o mpe t e w it h the international benchmarks. Large delegations of local and foreign visitors are scheduled to visit the show for increased business orientation and a chance of Joint Ventures and Technology Collaborations. We want the business of our members to increase in the local and export market. This year Pakistan Auto Show is scheduled to be the largest edition so far. Auto Industry of Pakistan has the potential to become the backbone of this economy.
www.automark.pk | September-2018 | Page 30
Exclusive Report by Hanif Memon
Monthly AutoMark International
First automobile assembly plant in Pakistan received $66 million worth guarantee from World Bank Group The Multilateral Investment Guarantee Agency (MIGA), a subsidiary of the World Bank Group, has approved guarantee worth $66 million for the construction and operation of a vehicle assembly plant of Hyundai-Nishat M otor s in M 3 Ind ustria l Cit y, Faisalabad. A representative of Sojitz Corporation in Pakistan, while talking to Automark said this is the first time in the history of Pakistan that this type of agreement was signed between any automobile company and World Bank. This type of guarantee (insurance) is normal in African countries where the situation is not favorable due to the poor performance of their economy and security conditions. The guarantees include investments and loans provided by Sojitz Corporation of Japan, a trading company, to HyundaiNishat Motors, which is a joint venture between South Korea’s Hyundai Motor and Pakistan’s Nishat Group, one of the largest conglomerates with their business spanning from retail to hotel and textile to banking. The plant is expected to start operation in the year 2020 and will have estimated annual production capacity of 30,000 vehicles approximately. The plant will assemble a range of Hyundai brand vehicle models from passenger cars to lig ht pic kup tr u ck s ai med f or
generalpublic, SMEs and other fleet running businesses. Total cost of the project is around $230 million. The guarantees, which are for 15 years, protect from the risk of restriction on transfer, acts of expropriation, war and civil disturbance. The Hyundai-Nishat Motor state-of-the-art assembly plant will be started to provide the best-inclass Hyundai vehicles to Pakistani consumers through a nationwide dealership network. Hyundai Nishat Motor’s assembly plant is joint venture between Nishat Group 60% and Sojitz (Japan) Corporation 40%, total costs around $230 while a TLA and Distributor agreement with Hyuandi motors Korea, later Millat acquire 18% of Nishat shares.
The project will be started by installing contemporary hardware, software and skills enhancement programs to develop a quality workforce with the help of technology principals by Hyundai. The project is expected to boost economic activity through the creation of tho usa nds o f jo bs and impo rt substitution. Furthermore, the project is meant to localize a substantial number of automotive parts with the support of local vendor industry which will also benefit fro m the latest Kor ean technology. It will also create another option for end-users who wants to buy a local car other than manufactured by the trio Pak Suzuki, Atlas Honda Cars and Indus Toyota Motors.
Motorcycle production up 15.44pc to over 2.650 million units The production of motorcycles during the first eleven months of fiscal year (2017-18) increased by 15.44 percent as against the corresponding period of last year, Pakistan Bureau of Statistics (PBS) reported. As many as 2,650,233 motorcycle were manufactured during July-May (201718) against the output of 2,295,846 during July-May (2016-17), showing growth of 15.44 percent, the latest PBS production data revealed. The production of cars and jeeps witnessed 20.10 percent increase during the period under review as 214,904 jeeps and cars were manufactured during July-May (2017-18) against the
production of 178,944 units during JulyMay (2016-17). The production of light commercial vehicles (LCVs) witnessed an increase of 18.54 percent in production during the period under review by growing from 22,927 units last year to 27,178 million during 2017-18. The production of tractors also increased from 50,049 units last year to 67,371 units, showing growth of 34.61 percent while the production of trucks increased by 20.27 percent, from 7,104 units to 8,544 units. However, the production of buses during the period under review witnessed negative growth of 31.54 percent by
going down from the output of 1,043 units to 714 units. Meanwhile, on year-on-year basis, the production of motorcycles increased by 14.57 percent by growing from the output of 231,295 units in May 2017 to 264,984 units in May 2018. The production of tractors also witnessed upward growth of 19.56 percent by growing from 5,746 units in May 2017 to 6,870 units in May 2018. The production of jeeps and cars increased by 0.74 percent as the country manufactured 18,227 jeeps and cars during May 2018 against the production of 18,094 units during May 2017, the PBS data revealed.
www.automark.pk | September-2018 | Page 36
International Automotive News - Update
Monthly AutoMark International
Kia Motors to take on Maruti, Hyundai with premium hatchback, sedan
The Kia hatchback will compete with Hyundai Elite i20 and Maruti Suzuki Baleno, the Kia sedan will take on the Maruti Suzuki Ciaz facelift and Hyundai Verna Kia Motors Corp. is developing a hatchback and a mid-size sedan for India in a product offensive as it seeks to challenge established rivals Maruti Suzuki India Ltd and Hyundai Motor India Ltd, among others, in this growing market. Kia Motors, which is owned about a third by Hyundai, plans to start selling the two cars within a year of introducing its first product, a sportutility vehicle, in India, two people with direct knowledge of the development told Mint. Kia has already discussed its plans to develop the two products—codenamed KP1 and KP2—with its vendors in India after receiving an approval from its headquarters in South Korea, said the people cited above. “The hatchback that Kia is planning to bring into the Indian market will compete directly with Hyundai Elite i20 and Maruti Suzuki Baleno. This (strategy) makes sense since these are
Kia Motors is likely to introduce its SUV in the second half of next year. Photo: PTI the segments that are doing well and will continue to attract customers in the future as well,” said one of the persons cited above. “In the midsize sedan segment also, the company will throw a challenge to the Maruti Suzuki Ciaz facelift and Hyundai Verna as the quality of the products will be good and the management of Kia both in India and Korea know the India mar ket well eno ugh ,” h e said.
How the 2019 Kia Sorento Changed for the New Model Year
Don’t look now, but the Kia Sorento midsize SUV is the Korean brand’s bestselling vehicle in America. With the boxy Soul, Optima sedan, and compact Forte all seeing double-digit slumps in 2018, Sorento’s 8% surge makes it even more important for the automaker. That’s a good place to start when looking at the updated model already hitting dealerships for the new model year. With consecutive J.D. Power Initial
Quality awards under its belt and a solid fuel economy rating in place, you might say Kia’s job here was to not mess too much with a good thing. The tweaks you’ll find in the new edition mostly achieve that. Meanwhile, there’s also a mpg bump and new safety award for the automaker to feature when comparing itself to the competition. Here’s what’s you’ll find new in the Sorento for the 2019 model year.
A spokesperson for Kia Motors India didn’t respond to an emailed request for comment. The domestic passenger vehicle market mainly comprises hatchbacks, sedans and compact SUVs. All the segments are dominated by Maruti Suzuki and Hyundai, the country’s first and the second-largest car maker. SUVs have outpaced car sales growth in the past few years. To capitalize on this robust demand, Kia Motors will introduce a SUV based on its SP Concept, which made its global premiere at the Auto Expo in February. The company is building a factory in Anantapur district of Andhra Pradesh with an initial capacity of 300,000 vehicles a year. The factory is scheduled to open next year. Kia is likely to introduce its SUV in the second half of next year, coinciding with Diwali when demand for consumer goods traditionally peak.
www.automark.pk | September-2018 | Page 35
Used Car Auction - Media Coverage
Monthly AutoMark International
Setting A New benchmark OLX and CARFIRST launched Pakistan’s first live auction platform for used cars in Pakistan
Karachi, 12th AUGUST 2018: OLX – the No.1 App in auto classifieds and CarFirst, a leading used-car trading platform, launched Pakistan’s first ever ‘Used Car Live Auction Platform’ at Expo Center Karachi on the 12th of August 2018. Attendees were able to trade their used cars in the most secure, convenient, and transparent manner. Car owners were able to sell their used cars hassle-free, while car buyers got access to CarFirst Partner Dealer inventory to drive home a Certified Used Car. Car owners could also pre-book free inspections and appointments to sell their car at www.carfirst.com. Joining CarFirst’s commitment to better the used car trading, OLX and CarFirst had PSO as their title sponsor, as well as other partners such as UBL Insurers Limited, Adamjee Insurance, and Suzuki Margalla Motors. The OLX CarFirst Car Bazaar provided amazing financing and insurance deals, fun outdoor activities, food stalls, and special giveaways for families, while car sellers also qualified for a chance to win CarFirst certified Daihatsu Mira. Raja Murad Khan, CEO, and CoFounder of CarFirst said, “We are extremely grateful and overwhelmed with how well Karachi responded to the first OLX CarFirst Car Bazaar. We have already received a number of queries about bringing the OLX Car Bazaar to other cities from buyers, sellers, dealers and potential sponsors.
We would like to thank our current sponsors for joining our commitment to better used car trading in Pakistan. We are confident that our latest innovation ‘Used Cars Live Auction’, will add immense value to the car trading process.”, said Raja Murad Khan, CEO and Co-Founder of CarFirst.” He also added “I would especially like to thank my team who have worked tirelessly for weeks on end to bring to you our Car Bazaar and the first used car live auction to Pakistan.” Bilal Bajwa, CEO of OLX Pakistan said, “OLX and CarFirst are revolutionizing the way people buy and sell cars in Pakistan whether it is online or offline. A few months ago OLX announced a major investment in CarFirst and we are proud to bring you Car Bazaar! Car Bazaar was a fantastic fun-filled event for anyone interested in buying/selling cars. There was a live auction for sellers interested in getting the best price for their car - this was the first time a live auction of such nature took place in Pakistan. For buyer, there were many certified cars on display for purchase. In addition, people availed amazing financing and insurance deals at the event.” CarFirst is a first of its kind used-car online auction and trading platform, with a nationwide network of purchase centers and warehouses. CarFirst was founded in 2016 and has been the recipient of the largest Series
‘A’ investment in Pakistan from FCG, and the largest Series ‘B’ investment from OLX Group. CarFirst aims to revolutionize the way cars are traded in Pakistan by offering comprehensive solutions for all things related to cars, such as evaluation, certification, financing, insurance, live auctions, and many more. We aim to keep adding value across the customer’s journey, improving efficiency and transparency at every milestone of the car trading process. OLX is the world’s largest online buying and selling platform powered by a team of 5,000 people, working on 17 brands, from 35 offices across five continents and 40 countries. In Pakistan, OLX is the No.1 Marketplace across 14 different categories. OLX gets more than 150,000 car listings every month/5000 in a day; which is 10 times bigger than any other player operating in Pakistan making it undisputed market leader. OLX generates more than 20 Million page views in a day having 5 million App downloads. Over 50,000 conversations take place daily on OLX with an ad being posted every 2 seconds a research study by Nielsen stamps this fact by indicating 87% awareness and preference level of OLX in comparison with any other tech company operating in classifieds and shopping catego ry of Pakistan. According to SimilarWeb, OLX is Pakistan’s No.1 web platform (local domain/Engagement/Traffic).
www.automark.pk | September-2018 | Page 37
Monthly AutoMark International
by Michael Kleeman
The foreseeable future: How the next generation of mobility will affect cities
In 1913, the first mass-produced automobiles went down the Ford assembly line in Highland Park, Michigan. The large-scale introduction of motor vehicles triggered changes in a large and complex system that ultimately transformed not just transportation, but our sense of geography, the urban and ultimately, suburban, landscapes, manufacturing, agriculture, medicine, politics, education and most other elements of society. We stand at the cusp of another revolution in mobility, and with the introduction of new forms of vehicles, power, control systems and business architectures, the changes are likely to be as large and dynamic as those of a century ago. Identifying, studying and putting these complex forces into a perspective that can help inform the actions of the numerous elements of this system will be critical to maximizing the societal benefits of this revolution. These changes are likely to be as unprecedented as those caused by the first wave of technologically enabled mobility, and likely as disruptive. Two things can be predicted, but they are not the things most technologists would like to be able to predict. First, nothing is certain in any complex adaptive system; the changes are dynamic and non-linear. Second, "progress" will be defined more by the economics of time and money; both in the movement of people and goods, than by any technological breakthrough. With so much excitement about nextgeneration mobility focusing on forms of autonomous vehicles, the future will be defined by much more than who, or what, is behind the wheel. Let’s take a look at some possible futures.
Land use
Largely shaped by the private auto, land use is likely to change. Over 50 percent of the land in Los Angeles is dedicated to the automobiles. Following are some thoughts on the big transportation questions at hand. 1. Today, roads, freeways, parking lots and driveways dominate the space. Will parking be needed as much or at all in the next generation of mobility? There are options here, but it is likely that parking will be clustered and out of high value areas. Plus, auto ownership likely will drop, reducing the need for up to 50 percent of urban parking.
2. Will end-to-end transport mean single user vehicles or multi-modal systems? In core urban areas, you will see multimodal systems and for longer distances, it will be a mix of high efficiency interconnected multi-modal systems. 3. What role (and space) will be given to non-motor vehicles like bicycles and pedestrians in a new mobility system? Both by desire and by policy, such transit modalities will be part of core planning and integrated into the multi-modal system. 4. As demand for on-street parking and parking lots drop and pickup and drop off or multi-modal exchange areas increase, how will urban planning respond? The current models of subsidy for parking will be replaced with usagebased pricing. 5. And how will homes change if we no longer need parking garages for cars (although more than half of home garages do not house cars even today)? There will be a fundamental change in home architecture as driveways and garages are not needed for cars, freeing up to 500 square feet. Even residential streets could see a makeover in design. 6. If traffic is lessened and the time and monetary costs of driving drop, will the move from the suburbs be slowed or reversed? This is an interesting question as we see that Uber and Lyft end up adding vehicles to dense urban areas, worsening traffic. But if overall transit is easier and less time-consuming, we could see a rejuvenation of suburbs.
Economics
Not often discussed are the current economics of mobility and how these are likely to change. The cost of vehicular ownership and use (including expenses such as parking) together with the societal investment in roads, parking lots and other infrastructure are in the trillions of dollars. The current funding mechanisms for public assets such as roads will have to change with ownership and fuel. The costs, in dollars and human suffering and death, from vehicular accidents is likely to be reduced, and at the same time the issue of liability is likely to shift from the driver to, well, who — the manufacturer, the software developer, the sensor developer, the network operator, the
financing firm for shared vehicles? And anytime that billions of dollars shift in their allocation or source, you can be certain there will be economic dislocations (fewer repair shops, fewer ER admissions and fewer garages and maybe car dealers as maintenance revenues drop). Oh, and with all financial shifts, you usually will find legal issues arise.
Social equity
Here the impacts are both uncertain and very important. How costs are allocated for access and vehicular use may have a major net increase in the costs for poorer users as we go from ownership to leases and fees. In a multi-modal environment, who will decide which mobility resources are allocated and where?
Virtual vs. physical
Mobility is not about a car or a bus, it’s about accessing the resources we need in a timely manner or being in contact with people we want to interact with, for any number of reasons. We already have seen how technology can enable remote access to information and some basic medical care, how people can work remotely from an office base or enable a web of delivery services to avoid the need for individual transport to and from a location. New technologies, both those we label as mobility and those we call internet-based, will continue to evolve and further alter what we think of as mobility.
Complexity
We began this brief essay talking about complex systems and the lack of predictability of change. Each area of change discussed above will interact with the others, as well as more that have not been discussed. Some of these others, such as human psychology and social dynamics, will have major impacts. All dimensions of mobility will alter, and continue to alter, over time. And our future is as uncertain today as it was in 1913 when the first Model-Ts left the assembly line. As the head of strategy of a major mobility manufacturer said recently, "Future mobility is much more than autonomous vehicle — everything will change." We will have to see not if this is true, but in what ways and scale the change in virtually everything manifests in our world.
www.automark.pk | September-2018 | Page 38
International Automotive Industry - Update
Monthly AutoMark
Malaysia’s Third National car project could get RM 41 Billion funding from China Suzuki will dissolve last remaining China JV, report says Suzuki Motor will dissolve its last remaining automobile manufacturing partnership in China, Nikkei Business reported. Suzuki and Chongqing Changan Automobile will disband their joint venture, with the Japanese company s e l l i ng it s s t a k e t o t he l o c a l manufacturer. The process will start upon approval from Chinese authorities and could be completed by year end, with Changan continuing to make Suzuki-brand vehicles under license, according to Nikkei. Suzuki spokesman Satoshi Kasukawa declined to comment specifically on the report but said Suzuki's stance has not changed and it continues to discuss with Changan about future growth of the partnership.
Suzuki Motorcycles’ Electric Scooter, motorcycle in India by 2020: 70 km electric range expected The root cause of this announcement can be traced back to the meeting between Suzuki Chairman Osamu Suzuki and Indian Prime Minister Narendra Modi in 2017, after which they announced plans for Suzuki to invest Rs 1,700 Crore in India along with Denso and Toshiba to manufacture Lithiumion batteries in India. Suzuki Motorcycle India will be joining the ranks with its four-wheeled siblings in an electric avatar with the launch of an electric two-wheeler in India by 2020. T h e t ime - fr am e a s per r ec en t announcement will see them launching their electric motorcycle to coincide with the launch of Maruti Suzuki’s first electric car. The root cause of this announcement can be traced back to the meeting between Suzuki Chairman Osamu Suzuki and Indian Prime Minister Narendra Modi in 2017, after which they announced plans for Suzuki to invest Rs 1,700 Crore in India along with Denso and Toshiba to manufacture Lithium-ion batteries in India.
After Tun Mahathir voiced his intention of wanting a third national car, two companies from China have shown interest by proposing to invest RM 41 billion in the project and to construct a regional hub in southern Perak. The companies - GSR Capital and Envision Energy, both Chinese EV manufacturers, submitted their joint proposal to the government during the Prime Minister’s visit to China recently. The joint proposal with Concept Fields Sdn Bhd also sees the participation of Nissan. Envision Energy currently holds a 75%
stake in Automotive Energy Supply Corporation (AESC), Nissan’s lithiumion battery unit. Envision will bring in AESC to partner with GSR Capital to set up a regional EV manufacturing base in Perak. The RM 41 billion project will spread over a five year period and will include the production of EV batteries. Elsewhere, Geely has also shown interest to participate in the third national car project. According to sources familiar with the matter, Geely plans to upgrade its operations here in Malaysia.
Mazda, Suzuki and Yamaha admit conducting improper emissions tests Half of Japan's 8 passenger carmakers known to have fudged final vehicle checks Mazda has been implicated for the first time in a series of emissions testing scandals at Japanese automakers, while Suzuki was one of the first companies found to have falsified data. This is the latest in a growing list of compliance scandals in the country's auto industry, and was confirmed by the Ministry of Land, Infrastructure and Transport on last month. The three companies submitted reports on the findings to the ministry in response to a request for all domestic automakers to investigate compliance procedures after Nissan Motor and Subaruwere found to have falsified testing data earlier this year. The suspect tests were performed on samples of manufactured vehicles selected during the quality assurance process. Samples were found to have been tested under incorrect driving conditions. Suzuki unearthed improper tests on 6,401 units out of 12,819 since 2012. Mazda detected inappropriate testing on 72 vehicles out of 1,875 since 2014, while Yamaha found seven instances out of 335 since 2016. Suzuki President Toshihiro Suzuki apologized for his company's actions at a news conference on Thursday afternoon. "It is a significant fact that such a large number of our products were improperly processed, and we take it seriously," he
said. "We failed to educate our staff in an in-depth and extensive manner." The automaker is not considering product recall at this moment, he added. The transport ministry will change its ministerial ordinance to request automakers save test results of manufactured vehicles and take measures to prevent alteration of results. "It is extremely regrettable that this situation makes users anxious over the quality of vehicles and the quality control operations of carmakers," said Transport Minister Keiichi Ishii. "Stock prices suffered at carmakers where cheating was found. The stocks of Yamaha were also on a downward trend," said one analyst. Masataka Kunugimoto, managing director at Nomura Securities, said the impact on business performance would be "very minor if any." "It seems that foreign customers do not mind these incidents as they do not really affect the performance of the car itself," he said, citing similar previous cases. Additionally, both Subaru and Nissan used unqualified inspectors to perform final vehicle checks. There is no indication that Toyota Motor, Honda Motor or Daihatsu Motor have carried out improper final vehicle inspections. Howev er, the new revelations mean that four of the eight passenger carmakers in Japan have been exposed for the practice.
www.automark.pk | September-2018 | Page 39
Corporate Business Event Update
Monthly AutoMark International
Founder PBC presented PBC Tourist Banner to Mr Kamal Haider (a famous mountaineer) and Prof Shumail (Solo Rider) in the presence of Senior Rider Mr Farid Dogar
PAKISTAN AUTO SHOW-2019 www.automark.pk | September-2018 | Page 42
International Automotive Industry - Update
Monthly AutoMark
Renault Nissan becomes the largest automobile manufacturer, above Toyota and Volkswagen
Toyota to sell entire stake in Isuzu Toyota will dissolve its capital tie-up with Isuzu by selling off its 5.89 percent stake in the latter; carmakers to continue collaborating on projects. Toyota Motor Corporation will be selling its 5.89 percent in Isuzu Motors in the future, thus dissolving their capital tieup. However, the two companies will continue their strong relationship through ongoing joint development projects related to basic technologies and will remain open to the possibility of future collaboration. In November 2006, Isuzu and Toyota signed a basic agreement to utilise each other's operational resources in the fields of development and production focusing on diesel engines, to provide mutual technical assistance and to create a framework capable of capitalising on the resulting synergistic effects, and to examine the feasibility of collaborative projects. At the same time, Toyota also agreed to obtain a stake in Isuzu. However, with changes in the market environment prompting the companies to suspend some of the originally considered projects and little specific progress achieved in other collaborative efforts, Toyota and Isuzu have agreed to re-examine the capital relationship based on the current business situation. As the automotive industry faces sweeping changes, Isuzu and Toyota intend to accelerate their efforts to improve competitiveness in the commercial and passenger vehicle markets, respectively.
BMW has good reason to take driver seat in China
BMW will give careful consideration to the possibility of raising its stake in its Chinese joint venture, China's official Xinhua news agency reported on Aug. 20, citing a company executive. The German auto group may raise its stake in its Chinese JV, after the state moved to scrap foreign ownership rules. Spending $3.6 bln now would boost margins and give it a greater share of profit from China-made cars. That's particularly valuable given U.S. trade tensions.
Fo r long no w, two automobi le manufacturers who have always been on the lead when it comes to being the largest are Toyota and Volkswagen. But now that has changed as the RenaultNissan alliance with its sales of 5.26 million vehicles in the first half of 2017, has overtaken Toyota and Volkswagen who sold 5.12 million and 5.15 million units respectively. These three brands are leading over General Motors.
The American automobile manufacturer, one of the world leaders in production, clocked a sales of 4.7 million units. It should be also noted that the other three brands mentioned above have individual shareholders and a single board. The Renault Nissan alliance has cross-shareholdings and also utilise each other's resources when it comes to technology development and marketing activities. The Renault-Nissan alliance managed to get the top spot over Volkswagen, Toyota and also the General Motors with its acquisition of Japanese automobile brand Mitsubishi, wherein Nissan got 34 per cent stake
last year. The two models that have worked really well for the alliance in Europe are the Renault Zoe and the Nissan Leaf along with the Mitsubishi Outlander plug-in hybrid. The alliance has sold over 4.81 lakh units of EVs making it the highest from any automobile group in the world. Meanwhile in India, Renault India recently launched the updated-for-2018 Kwid in the country, at a price of Rs 2.66 lakh (ex-showroom) for the base Standard trim. The new Kwid also packs in new features including integrated reverse parking camera, rear seat armrest, and a 12V socket. In terms of safety, Renault India has also added emergency locking retractors (ELR) for the rear seatbelts, which allows the rear seat belt to freely extend and retract with occupant movement, yet locks the belt during a sudden stop or upon impact. The Nissan Kicks crossover SUV has been spotted testing under camouflage for the first time in India ahead of its launch in early 2019.
Toyota to increase production in China by 20% Japan’s Toyota Motor will build additional capacity at its auto plant in China’s Guangzhou, a company source said, in addition to beefing up production at a factory in Tianjin city by 120 000 vehicles a year. A person close to the company said Toyota will build capacity at the production hub in the south China city of Guangzhou to also produce an additional 120 000 vehicles a year, an increase of 24 percent over current capacity. Altogether, between the eastern port city of Tianjin and Guangzhou, Toyota will boost its overall manufacturing capacity by 240 000 vehicles a year, or by about 20 percent. Toyota’s production capacity in China is 1.16 million vehicles a year. Reuters reported earlier this week that Toyota plans to build additional capacity in Tianjin to produce 10 000 all-electric battery cars and 110 000 plug-in hybrid electric cars a year. China has said it would remove foreign ownership caps for companies making fully electric and plug-in hybrid vehicles
in 2018, for makers of commercial vehicles in 2020, and the wider car market by 2022. Toyota’s planned additional capacity in Guangzhou is also for electrified vehicles, said the company source, who declined to be named because he is not authorized to speak on the matter. The source did not say how much the additional capacity would cost. The Tianjin expansion is likely to cost $257 million (R3.8 billion), according to a government website. The planned capacity expansions in Guangzhou and Tianjin are part of a medium-term strategy of the Japanese automaker that aims to increase sales in China to two million vehicles per year, a jump of over 50 percent, by the early 2020s, according to four company insiders with knowledge of the matter. The plans signal Toyota’s willingness to start adding significant manufacturing capacity in China with the possibility of one or two new assembly plants in the world’s biggest auto market, the sources said. - REUTERS
www.automark.pk | September-2018 | Page 43
Automotive News - Update
Monthly AutoMark International
Maruti Suzuki Baleno will undergo some minor changes in its exteriors and interiors before being re-badged as a Toyota Suzuki Motor Corp. is likely to supply as many as 25,000 Maruti Suzuki Baleno premium hatchbacks each year to Toyota Motor Corp. as the car gets set to become the first cross-badged product of the auto makers, said two people with direct knowledge of the matter. Toyota will start hawking the Baleno through its own dealership network from the first quarter of next fiscal year, the people who didn’t want to be named said. To start with, Suzuki will supply 20,000 to 25,000 Baleno cars each year to Toyota’s local unit, the people said. The vehicle, which is currently produced at Suzuki’s factory in Gujarat, will undergo some minor changes in its exteriors and interiors such as head lamps, tail lamps and front grill, they said. “The decision has already been taken by both the headquarters in Japan and the first vehicle to be launched will be Baleno,” said the first person cited above. “The changes to be made have
Suzuki and Toyota will have a task on their hands as cross-badging as a concept in India hasn’t set the sales charts on fire. For Toyota, the Baleno will give it a deeper presence in India’s high-volume but most-competitive hatchback segment. Toyota currently makes the Etios Liva hatchback in India. “Toyota anyways doesn’t have any major investment plans in India until 2020 and Baleno is a product which is being exported to other countries including Japan hence there will be no issue regarding quality,” the second person said. Puneet Gupta, associate director at IHS Markit said choosing Baleno makes sense for both the companies, especially Toyota, which would need a smaller gasoline engine car to meet new corporate average fuel efficiency norms. “Baleno is a well-accepted product in India now and it is expected that adding a product like that will help Toyota in getting volumes in a segment where they are not present,” Gupta said.
Baleno to be the first Maruti Suzuki car to be sold as a Toyota
already been approved as well and both the companies have already decided on the number of vehicles to be supplied.” Spokespeople for the local units of Suzuki and Toyota—Maruti Suzuki India Ltd and Toyota Kirloskar Motor Pvt. Ltd—declined to comment. Since its launch in 2015, the Baleno has turned to be a chartbuster Maruti Suzuki product with average monthly sales of 15,000 cars. The sourcing of the Baleno follows a pact between Toyota and Suzuki in March this year for the two Japanese companies to sell each other’s vehicles in India. Suzuki will later also supply its compact sport-utility vehicle Vitara Brezza to Toyota. In return, Suzuki would source Toyota’s Corolla sedan and sell it through Maruti’s dealer network.
www.automark.pk | September-2018 | Page 46
International Automotive News - Update
Monthly AutoMark International
2019 Hyundai Elantra makes global debut – Toyota Corolla rival Expected to be launched in India later next year, the all new 2019 Hyundai Elantra executive sedan has been unveiled
2019 Hyundai Elantra has been showcased with a mid-cycle refresh, and a new look. What’s surprising is gathered media were readying for a Santa Fe first drive, and were in for a surprise – global reveal of refreshed 2019 Elantra. Yes. Even the media present at the venue had no idea that there was a global reveal of the all new Hyundai Elantra. In markets where Hyundai Elantra has fared well, it’s proven to be an important car. Introduced in its newest avatar two years ago, Elantra is the best-selling car in Korea and 7th best selling sedan in US at present. 2019 Hyundai Elantra in its new design is a much sportier looking car, and features a host of safety systems. The front fascia lends to its sporty outlook with a new grille. The rectangular LED daytime running lights are new. Matching it toe to toe are the redesigned hood, trunk, bumpers, and taillights. Wheel choices begin at 16-inches. Top end variants will have the choice of 17 or 18-inch wheels. Nothing has changed under the hood. Engine and transmission choices continue to range from three 4-cyl motors offering between 128 hp to 201
hp mated to a 6-speed manual/6-speed automatic/7-speed dual-clutch gearbox. A new 8.0-inch high-res infotainment touchscreen features and is compatible with Apple CarPlay and Android Auto. It’s on offer as an option on Limited and Sport variants. Other variants are fitted with the previously used 7.0-inch Hyundai unit. With the exception of the Elantra SE base variant, all new 2019 Hyundai Elantra sedans are high on safety features with blind-spot monitors, lane
departure warning with active lane control, and forward-collision warning with automatic emergency braking, among other features. Hyundai is certain that upward of 75 percent of new Elantras sold will feature life-saving safety tech. Hyundai Elantra has been having a decent run in India. Expect the new Hyundai Elantra to be launched in India by Diwali next year. Once launched, it will be a perfect rival to Toyota Corolla.
www.automark.pk | September-2018 | Page 47
Exclusive Report by Aqsa Mirsa
Monthly AutoMark International
United Bravo to roll out its first car in Pakistan from September 2018
United Bravo, another new Pakistani car assembler of Chinese made vehicle in Pakistan is going to roll out its first car 800cc Bravo on 8th September in Lahore and inauguration ceremony will be held in local hotel of Lahore. United Auto Industries (Pvt) Limited, 2nd Largest selling brand of United Motorcycles in Pakistan. Company received Green Field Investment status under new auto policy 2016-2021 from Ministry of Industry and Production in June-2017. In this regard, a lot of hype and speculation has been created about this car, mainly because it is believed that United Bravo will break the monopoly of Suzuki Mehran by introducing a price affordable car in the country. The
estimated price of United Bravo in Pakistan is expected to be Rs. 7 million but company representative did not confirm with talking with Automark.
The expected features of the car are: – Affordable Price – An alternate to Suzuki Mehran, the best option for middle-class – Easy availability of spare parts – Low maintenance cost (expected) The car will have 3 cylinder engine and a 4-speed manual transmission. Front disc and rear drum will be exactly like currently available model of Japanese brand.
The features yet known of the car include power steering, air conditioning system, back view camera, USB ports, defogger, manual transmission, wooden interior, lens headlights, LED brake lights, anticollision, RPM & speedometer dials, a s e a t - b e l t w a r n i ng f e a t u r e , a n infotainment system, fog lights, alloy wheels and a remote keyless system. The fuel consumption of United Bravo car is expected to be good enough, 20 to 25 km per liter. The launch of United Bravo will actually be the launch of the second Chinese affordable car in Pakistan after FAW. To the customers, it will open doors, give them another option and bring a breath of fresh air in the auto sector of the country.
www.automark.pk | September-2018 | Page 48
Car / Light Vehicle Price List SUZUKI Model Model WAGON-R VXR 1000cc Euro II WAGON-R VX 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR MT 1000cc NEW CULTUS VXL MT 1000cc NEW CULTUS VXL AGS 1000cc BOLAN VX 80cc EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2
SUZUKI MEGA CARRY 1.5 MT
SUZUKI CIAZ (A/T) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol) VITARA GL+ AT 1.6 VVT
Ex Factory Advance Tax Price Rs. 1144,000 Rs. 25,000 Rs. 1234,000 Rs. 25,000 Rs. 769,000 Rs. 10,000 Rs. 840,000 Rs. 10,000 Rs. 1,475,000 Rs. 50,000 Rs. 1,611,000 Rs. 50,000 Rs. 1,340,000 Rs. 1,461,000 Rs. 1,568,000 Rs. 834,000 Rs. 10,000 Rs. 800,000 Rs. 10,000 Rs. 756,000 Rs. 10,000 Rs. 1,499,000 Rs. 1,999,000 Rs. 1,859,000 Rs. 2,293,000 Rs. 2,418,000 Rs. 3,490,000
HONDA Model Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda
Price
BR-V i-VTEC 1500cc BR-V i-VTEC S 1500cc Model Civic i-VTEC 1.8L Civic i-VTEC Oriel 1.8L City 1.3L Manual City 1.3L Prosmatec HYUNDAI City 1.5L Manual City 1.5L Automatic Aspire Manual 1.5L Aspire Prosmatec 1.5L
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
2,263,000 2,363,000 Price 2,513,000 2,663,000 1,713,000 1,853,000 1,773,000 1,913,000 1,903,000 2,043,000
TOYOTA COROLLA
Model XLI VVT-i 1.3L M/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis M/T SR 1.8L (Grande CVT) Corolla Altis A/T SR 1.8L (Grande CVT) FORTUNER A/T 4x2 2694CC
Model
Price
K01 997CC, 2700mm K07 997CC, 6 Seater, AC/PS/PW C37 1500CC, 11 Seater,AC/PS/PW Prince Glroy 300 1499cc M/T Prince Glroy 370 1499cc M/T Prince Glroy 580 1499cc
Rs. 899,000 Rs.1,099,000 Rs.1,675,000 Rs.1,850,000 Rs.2,150,000 Rs.3,450,000
Price 1,944,000 2,149,000 2,224,000 2,374,000 2,614,000 2,519,000 2,799,000 6,099,000
Toyota Hilux Pickup 4x2 sc Model
Price
Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD
Rs. 2,574,500
Toyota Hilux Pickup 4x4 E
Model
PRINCE DFSK PAKISTAN
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Price
Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model
TOYOTA REVO DAIHATSU Model & Price
Vigo Champ-V MT Revo G M/T 1GD-FTV 2755cc 4,380,000 Revo V A/T 1GD-FTV 2755cc Vigo Champ-G AT 4,955,000
Rs. 4,005,000
FAW MOTORS Model
FAW Carrier 1000cc FAW Carrier 1000cc (Flat Bed) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c FAW V2 1300cc M/T Monthly AutoMark Magazine - International Local Assembled
Price
Rs. 869,000 Rs. 859,000 Rs. 974,000 Rs. 102,4000 Rs. 1,204,000
Price updated Sep- 2018
Rs. 41,800/= Rs. 43,800/= Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1
Retail Price Rs. 65,500/= Rs. 68,900/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 46,000/= Rs. 45,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=
125/150/200cc Motorcycle No.
Brand & Model Name
Retail Price
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24.
Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Super Power SP 200cc Unique UD 125cc Unique UD 150cc Crazer Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed Infinity SR-150 Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G (2018) Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II Zxmco ZX-200cc
Rs. 110,900/= Rs. 130,500/= Rs. 109,400/= Rs. 172,000/= Rs. 70,000/= Rs. 67,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 2,00,000/= Rs. 70,000/= Rs. 165,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 119,900/= Rs. 139,900/= Rs. 134,900/= Rs. 65,000/= Rs. 71,600/= Rs. 2,45,000/=
Sr./ No. 13. 14. 15. 16. 17. 18. 19. 20.
Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Union Star Ms Jaguar MS 70 ( DREAM)
Zxmco ZX-70 Regular Leader LD-70
Retail Price Rs. 43,500/= Rs. 45,500/= Rs. 42,000/= Rs. 45,600/= Rs. 44,000/= Rs. 43,800/= Rs. 42,300/= Rs. 44,000/=
100cc/110cc Motorcycle No. Brand &Model Name 1. Honda Pridor 2. United US-100 Euro 2 3. Road Prince 110cc 4. Unique UD-100 5. Super Power SP-100 6. Hi-Speed Classic SR-100 7. Hi-Speed Alpha SR 100 8. Super Star SS-100 9. Crown CR-100 10. MS JAGUAR MS 100 11. Zxmco ZX-100-SS 12. Leader Classic LD-100
Retail Price Rs. 90,900/= Rs. 50,000/= Rs. 48,500/= Rs. 80,000/= Rs. 60,000/= Rs. 47,500/= Rs. 82,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/= Rs. 52,900/=
Suzuki Motorcycle
Sr./ Product & Retail Price No. Model Name 1. GS-150 SE Euro-II Rs. 170,000/= 2. GD 110S Self Start Rs. 145,000/= 3. GS-150 Rs. 150,000/= 4. NEW GR-150 Rs. 229,000/= 5. SD 110 Eco Rs. 119,900/= Heavy Bikes Product & Sr./ Retail Price Model Name No. 1. Inazuma GW 250 Rs. 599,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Bandit GSF650SA Rs. 14,50,000/= 5. Honda ADA CB250F Rs. 6,40,000/= 6. Super Power Sultan-250 Rs. 2,90,000/=
Prices update Sep-2018 www.automark.pk | September-2018 | Page 51
Monthly AutoMark International
Report by Aqsa Mirza
Honda postpone its plan to launch locally assembled car 1200cc Brio in Pakistan
The management of Honda Atlas Cars Pakistan (HACP) has decided to delay the launch of a new locally-assembled car due to the country’s uncertain economic condition. The pre-planning of the car had already begun. Honda had given the drawings of tools, molds and design to the local vendors around six months back. According to the latest reports, vendors have also been asked to return the drawings that were given to them by Honda Atlas. A Honda vendor went on record and claimed that: "HACP has now asked local vendors to cancel their activities for parts development. They also asked for the drawings to be handed back to the company.” Honda has taken this important step due to car assembler’s concern of rupee losing its value by over 5% in the past few months. The car assemblers claim
that the cost of the vehicle becomes expensive due to the weak currency’s situation, which is highly unstable at the
Honda to recall 96,900 SUVs in China, runs checks on two models Honda Motor Co., on last month said it will recall 96,900 Avancier sport utility vehicles (SUVs) in China, due to a coldclimate engine problem that has already led to hundreds of thousands of its vehicles being recalled earlier this year. The midsize Avancier is produced and sold in the world’s biggest auto market by one of Honda’s two local joint ventures. Honda said it was looking at two other models in China to see if they were facing the same problem. The recall is linked to a problem caused by an unusual amount of un-combusted petrol collecting in the engine’s lubricant oil pan. The issue in some cases caused a strong odor of gasoline inside the car and in other cases the car’s check-engine light came on, Honda has said. This does not affect the engine’s performance and there have been no reports of accidents because of this particular issue, the automaker added.
Earlier this year, the cold-climate engine issue prompted the Tokyoheadquartered automaker to recall 130,000 of its popular CR-V SUV models and 294,500 Civic cars in China. The company is currently studying to see if the same issue is affecting the Honda Jade car and the UR-V crossover SUV, Honda spokesman Zhu Linjie said. “If it is so determined that these models are also being affected by the same engine issue, Honda will announce measures to deal with it,” Zhu told Reuters. The quality issue has led to a slump in Honda’s business in the country. Its sales fell for a sixth straight month in July, down 7.8 percent from a year earlier to 105,960 vehicles. During the first seven months of 2018, Honda’s sales volume in China fell 6.6 percent from a year ago to 715,060 vehicles.
moment. It is said by the stakeholders that work started on a new model almost 1.5, 2 years before it is actually launched. But when the rupee devalued against the dollar the automaker decided to halt the production of a new car. Vendors said, “Economic conditions, uncertain rupee-dollar rates, reports of imposing additional regulatory duties on raw materials, etc have compelled the company to defer the plan to roll out a new model.” It was reported that Honda Atlas is planning to launch locally assembled 1,200cc Brio in Pakistan by 2019. It could have added 3000 units in Honda’s total production. But as per the sources, it is not happening anymore. The company has deferred the plan. On the other hand, a HACP official said,“Its (Honda Brio) launch is neither final nor dropped. It is yet to be finalized for entry into the Pakistani market. It is in the planning phase.” In Pakistan, Honda Atlas sold 42,810 units of its iconic cars Civic and City is the fiscal year 2018 compared to 37,004 units in the fiscal year 2017. Similarly, 8,684 units were sold of Honda BR-V is the fiscal year 2018 compared to 2,159 units from April to June 2017.
www.automark.pk | September-2018 | Page 58