AUTOMARK MAGAZINE
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AUTOMARK MAGAZINE
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Editorial
MONTHLY
The Magazine for Pakistan Automotive Sector
November 2010 Vol 3, Issue 11 Editor : M. Hanif Memon Sub Editor : Dr. Raja Irfan Sabir Contribution Writers : Engr Khurram Mateen Omar Rashdi Asif Masood Mian Iqbal Hassan Advisor : J. Pereira Abdul Majeed Sheikh Imtiaz Rastgar Circulation Manager : Abdul Khaliq Designed By : Mustafa Hanif
Important Announcement The management of Automark magazine is pleased to announce that Mr. Imtiaz Rastgar has joined the Automark advisory panel from November 2010. He will now be advising and overlooking Automark magazine's key contents. Mr. Imtaiz Rastgar is involved with the Pakistan auto industry for a long time, he holds a Bachlors Degree in Business. His last assignment was as Chairman at Skill Development Council Currently. He is Chairman at Rastgar Group and Advisor at REC GP, He also the only local external expert at CBI in Pakistan. He was the CEO at Engineering Development Board in 2007. After him joining Automark as an advisor, the leading publication of the Pakistan automotive sector, he will contribute to further improve the already established quality of our prestigious publication, bringing at par with the international magazines of the automotive industry.
Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.pak-auto.com E-mail: magazine@automark.pk automarkpk@gmail.com Tel/Fax : 021-32218526 Mobile: 0321-2203815
IMF-dictated policies Industry gasping for survival The International Monetary Fund’s prescription of increasing interest rates, slashing development outlays, increasing taxes and power tariffs has dealt a crippling blow to the manufacturing sector. The higher interest rates failed to bring down inflation but ins tead it br oug ht the manufacturing sector to a grinding halt. IMF did not give such a harsh deal and prescription to the crisis ridden countries of Europe. We observed that the world was reducing interest rates, injecting capital into banks encouraging them to lend more, allowing major tax cuts to revive their economies. But we were asked to do things the other way round. Pakistan should immediately get rid of the IMF’s straitjacket and rely on its own resources and people. If the Fund is not playing fair with Pakistan an independent course should be adopted wherein IMF demand for rapid reduction in fiscal deficit should no longer be followed because it will keep the growth rate low and increase unemployment and poverty. We suggest that there was urgent need to strike a balance between fiscal consolidation and revival of growth and this was not possible if “we as a nation keep following the IMF pre scription”, which has so far totally failed to produce results. To resolve energy crisis big and small dams and water reservoirs should be constructed with consensus along with small units of hydroelectric power on rivers that would produce 50,000 MW to meet energy needs. The use of huge coal reserves for the production of electricity should also be made at the earliest so that ever rising POL bill could be curtailed and funds diverted to other pressing and capital intensive projects such as infrastructure, health, education and poverty elevation.
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CONTENTS The Mo nthly Magazine for Pakistan Automotive Sector
e-magazine Issue at our website
Your trust is our success
The Industrialized Countries has Created Alarming Situation in Global Environmental Exclusive Article on Environment by Mian Iqbal Hassan
8-9
CASE Construction Launches Backhoe in Pakistan Market - Corporate Event
10
Ravi Automobile Introduces Motorcyclesin Karachi Market - Corporate Event
11
2010-2011 Trade Policy and $50/motorcycle R&D support
13
PAAPAM worries over non-payment by manufacturers
14-15
Car sales up 10% in Q1FY11
16
IMC and Honda raises price
21
Automobile manufacturers EDB persuading companies into transfer of technology
23
Sustainable Development & Climate Change Exclusive Article on Environment by Asif Masood from Islamabad
24-28
Over Rs.50 billion invested in Pakistan’s Auto Industry
35
Multi-valve Engines - Exclusive Article by Omar Rashdi
visit: www.automark.pk
Local assembled car price list
43
Super Power Motorcycles Win the 34th FPCCI Export Trophy - Corporate Event
45
Elements for Improving Environmental Performance and Compliance - Exclusive Article by Khurram Mateen
48-49
Motorcycle price list
50-51
The only ONLINE automotive magazine in Pakistan
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Focus on Environment - Exclusive Article
by Mian Iqbal Hassan
The Industrialized Countries has Created Alarming Situation in Global Environmental Pollution and Global Warming The Earth’s average temperature has risen by approximately 1 degree F, and scientists believe that it could rise by 5 to 6 degree F over the next 50 to 60 years.
The Earth naturally absorbs in coming solar radiation and emits thermal back in to space. Some of the thermal radiation is trapped by certain so-called greenhouse gases in the atmosphere, which increases warming of the Earth’s surface and atmosphere; trap some of the thermal radiation. In recent years, carbo n dio xide (CO2) a natural ly occurring greenhouse gas, has been building up in the atmosphere the result of human activities burning of fossil fuels (coal, oil and natural gas) and deforestation Water vapor, methane (CH4) Nitrous oxide (N2O) and ozone (O3) are also naturally occurring green
house Greenhouse gases that are mostly human -made include ch lo ro fl u or oc a r b ons ( CF Cs ) hydrochlorofluocrbons (FECs), and sulfur-hexafluoride (SF6) Several nongreenhouse gases Carbon monoxide (CO), oxides of nitrogen (N2O) and nonmethane volatile organic compounds contribute indirectly to the greenhouse effect by producing greenhouse gases durin g chemical transformations. Since 1800, atmospheric concentration of CO2, CH4 and N20 has increase by 30% 145% 15 % respectiv ely. The increasing buildup is believed by many scientists to be the major cause of higher
AUTOMARK | November-2010 08
t h a n n or m a l a v e r a g e g l o b a l temperatures in 1990 / 1997 was the hottest year on record. Over the past century, the Earth’s average temperature has risen by approximately 1 degree F, and scientists believe that it could rise by 5 to 6 degree F over the next 50 to 60 years. This global warming could speed up the melting of the polar ice cape. It is generally expect that the sea levels are likely to rise by more than 3 m et e r s i n t h i s c en t u r y . T h e climatologists believe that population residing with in 40 miles from sea. Will go und er water the country like Netherlands, Bangladesh or Ice land Nations of the pacific are low-lying, how th ey wi ll r esp ond su ch forc es. In Dec, 1997, a United National summit on global warming was held in Kyoto, Japan , arrange d by industrial iz ed countries. Delegates from over 150 nations attended international treaty to set some limits on emission of CO2, CH4, HFC2, PFCs and SF6, The accord, known as the Kyoto Protocol. Called for an overall reduction in emissions of 5.2% bellow 1990 levels by the year 2021, significantly bellow the 15% reduction proposed by the European Union. Under the accord, the 15 EU nations agreed to reductions of 8% The U.S. to 7% and Japan to 6% the under developing countries were permitted to limit their emissions voluntaril y. The accord
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Focus on Environment - Exclusive Article environmental pollution as per EPA Washington U.S.A reports as under. The industrialized countries are exporting their waste by incineration process and pu mping in to the atmosp here.
1. U.S.A = 24% 2. Japan & Developed Eu. Nations = 26% 3. Eastern Europe and former USSR= 15% 4. China = 13% 5. India = 9% 6. Other developing nations = 13%
allowed high emissions nations to meet their targets by Purchasing pollution rights nations that have exceeded their goal, although the mechanism for buying and selling such emission permits were not worked out. According to this agreeme nt the industrialized countries agreed to provide 0.8% of their GDP which comes out to be 240 Billion US $ every year to the developing counties and their own industries to work for environmental protection. The industrialized countries are not full filling their commitments. About 7 Billion Metric Tons of carbon equivalent harmful greenhouse gases are omitted by industrialized countries every year. This quantity does not include carbon dioxide (CO2) absorbed by the forests. The Indu strialized countries are r e sponsi bl e f or 78% d ir e ct
The nuclear countries have about 28500 nuclear Arsenals with multi mega tons capacities which can completely destroy many earth size planets. The Industrialized Countries hav e installed nuclear power reactors for their economic benefits and put the global inhabitants in great danger which reads above 83 % of the world as under up till 30-06-2009. USA and UK in particular are creating hell of problems for Pakistan for nuclear power generation in collaboration with China. The Indu strial ized Cou ntries are transferring out-dated technologies / processes and equipments to poor developing countries, which do not fulfill their own environmental standards, resulting lot of pollution in those countries. Not only this, they are dumping their hazardous wastes in poor developing countries. Due to lack of education in developing countries, the industrialized nations are exp loitin g and trying to get th e environmental cost from them by various tactics and slogans i.e. Depletion
of Ozone lay er etc. Where in the industrial ized countries are mainly responsible for the environme ntal pollution, damage to Ozone layer and global warming. The CFC’s produced and m arketed by ind ustrialized countries like U.S.A. USSR, Japan European Union, Canada, Australia etc; has mainly damaged the Ozone layer. NASA has reported in 1995 that human produced CFC,s will continue depleting Ozone layer till 2020. They are not ready to pay its environmental damages cost w hich is in T rillion of dollars. It is suggested that in the larger interest of global peace and security / protection. The economic pollution may be first eradicated by financing the poor nations and bringing them to equal respectable level with out any discrimination of religion, color, race and region etc. Otherwise no one can protect the globe from nuclear disaster and other wars of terrorism. In the larger interest of global c l ea n l i n e s s t h e R E C Y C L I N G INDUSTRIES in particular should be promoted and the 21st century may be named as recycling century. To protect this Earth globe from environmental pollution, Technologies special grants and interest free financing, by international donor agencies should be provided all over the world w ith immediate effect on emergency basis for recycling industries.
About writer: Mian Iqbal Hassan, Ex-President, Board of management, Multan Industrial Estate. AUTOMARK | November-2010 09
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Corporate Event - Update
CASE Construction Launches Backhoe in Pakistan Market
Takes notice of Modern Trends in construction and exponential grow expected in Pakistan Construction Market. Karachi, Pakistan, 28th October, 20101: American Italian Giant of construction m ac h inery , CA SE Const ru ct ion launched its premium brand Backhoes in Pakistan market with full sales, service, spare parts an d train in g facilities. With the aim to boost the productivity of the construction and mining sector, CASE has launched , what it says , is the “Swiss army knife” of the constructio n industry. The multi purpose all-in-one machine has proved its success all over the world, providing
a productivity construction tool to small and big contractors who use it in municipal work, golf courses, cement plants, mines and quarries and housing projects. Pakistan faces an endless housing backlog and the market is ripe for progressive contractors who can run p rofitable operations wi th h igh productivity CASE Backhoes . this is also the correct time for Civil Engineering Graduates to become self employed and utilize modern construction machinery to quickly complete housing projects and make a place for themselves in this highly lucrative market, dominated mainly by traditional construction
AUTOMARK | November-2010 10
methods. Sp eakin g at th e occasion, CASE Constru ction Country Manager, Man soor Rizvi addre ssed a large audience of leading civil contractor, businessme n and consultants. He highlighted the importance which CASE Construction attaches to the Pakistan construction and agriculture market and its commitment to sell and service its m achi nes in Pakistan. Mr.Rizvi appreciated the efforts and organization of local distributors Rastgar & Co for their bold and professional approach and high reliability in providing after sales service to Pakistani customers.......
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Ravi Motorcycles in Karachi
Ravi Automobile Introduces STORM-125, PREMIUM R1 and HAMSAFAR-70 in Karachi
Recently appointed distributor and dealers was gather on the occasion of Soft launching ceremony of STORM125 c c, P REMI UM-R1 70c c and HAMSAFAR-70cc motorcycles by Ravi Automobile in Karachi last month. Most of the new dealers, technicians and other stakeholder attend ceremony, this is first time that Ravi launched his premium product in Karachi, dealers are fairly happy with ravi’s motorcycles specially with the Storm-125cc motorcycle which is an joint venture project between Piaggio of Italy and Ravi Automobiles. This time people of Karachi will get European automobile technology which would give a big boost to the motorcycle industry in the country. Asif Mahmood, manager technical gave a detail presentation about the STORM125cc motorcycle, in his presentation he
describe each and every aspect of bike including engine and assembly while he as gave a brief detail about lubricants. He also answers the technical questions asking by dealers and technicians. Afterward Muhammad Saeed Akthar, G.M. Sales & Marketing also present a detail introduction of Ravi Automobile’s company detail, background and future plan. He also present a motorcycle market survey and previous years sales analysis of different segment of the two wheeler, he prepare himself very well for this presentation, guest appreciated his speech. Newly appointed distributor M/s. Nippion’s CEO also speak for a short time to the gathering and share his views about Ravi Automobiles. While talking to Monthly Automark magazine, Saeed Akthar said that we are always behind the distributor and
AUTOMARK | November-2010 11
dealers, for this reason we have created a strong after sal es network across Karachi, regarding the spare parts availability he said that right now we are parts are available at our service center at reasonable rates and in later stage we will try to arrange some spare parts dealers to keep our product’s parts. He is very optimist regarding Ravi’s newly launch product and he hope that people of Karachi like the STORM-125cc motorcycle. On asking him about other city of Sindh about ravi products, he said after Karachi market we will think about the other area of Sin d to o. GOOD NEWS: Few days back representativ e of Automark magazine meet to main distributor’s CEO and he inform us that sec ond con sig nm ent of Ra vi ’s motorcycle going to reach in Karachi soon....
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Corporate event - Glimpse
Dealer’s get-together by Raazy Motors Industries in Karachi
AUTOMARK | November-2010 12
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Automotive Sector - Update
2010-2011 Trade Policy Government unlikely to revive $50/motorcycle R&D support Vice Chairman Pakistan PAAPAM Nabil Hashmi said this is the most regrettable decision of the government, as it would directly hit jobs of 15,000 engineering sector workers and loss of huge valuable foreign exchange to t he national exchequer. The government is unlikely to revive its $50 per motorcycle Research and Development support on bikes' export in the 2010-2011 Trade Policy, Federal Secretary Commerce Zafar Mahmud to ld press media. The ministry of commerce had withdrawn this support to motorcycle industry from July I, this year. Zafar Mah mud said thoug h th e Engineering Development Board of Ministry of Industries and production had recommended to the Commerce Ministry to include this facility in the new trade policy for promotion of bikes export, yet Finance Ministry has refused to accept this demand due to foreign exchange crunch. EDB sources told this scribe that export of motorcycles to various countries has been badly affected after withdrawal of government's support of $50 per bike under Research and Development, which was started in 2008 and in one year it led to 23 percent growth. They said Pakistan Motorcycle Exporters and Parts Producers had been exporting more than 4,000 bikes per month to Afghanistan, Bangladesh, Sri Lanka and Kenya during past year. They said though Pakistan had been facing a stiff competition fro m the Chinese and Indian motorcycle manufacturers yet the $50 per bike support had provided
an edge to the Pakistani exporters. EDB sources apprehended that increase in the export prices of Pakistan made motorcycles by virtue of withdrawal of RD support would enable Pakistan's competitors to capture markets of Afghanistan, Bangladesh and Sri Lanka that is why EDB had recommended to the government to continue its rebate facili ty to encou rag e exp or t of engineering goods. Vice Chairman Pakistan Association of Automotive Parts & Accessories Manufactur er s (PAAPA M) Nabil Hashmi said this is the most regrettable decision of the government, as it would directly hit jobs of 15,000 engineering sector workers and loss of huge valuable foreign exchange to th e national exchequer. He said th at PAA PA M h ad recommended to the government in its pre-budget proposals to continue the rebate facility for bike exporters and
AUTOMARK | November-2010 13
other exporters of the value added engineering goods. Hashmi said that government's energies and polices are focused on textil e industry only, which has only 6 percent share in the international export market as against 65 percent of the engineering manufactured goods." Unless w e diversify our exp or ts for wh ich Engineering sector had the brightest prospects, our annual foreign exchange earnings would remain stagnant," he added. He sai d t h at ou r tra ctor s and motorcycles manufacturing industries have achieved near 80 plus per cent localisation, therefore, these are firmly in a position to compete with China and India on price an d quality if the government provided adequate rebates on the exports of these value added products.
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Automotive Sector - Update
Punjab industrialists furious
PAAPAM Chairman Aamir A Allawia lamented that the auto vending industry was low profile business and do not make hue and cry on each and every issue and faces stress on its own sources but cutting of its energy sources tantamount to circumvent its pace. The manufacturers and trade bodies representatives have said discrimination in gas supply will push the Punjab industry to the wall, as the industrial sector is already facing huge problems owing to electricity shortage, high input cost, high mark-up and deteriorating law & order situation. They called for continuous supply of gas to all the industrial areas in Punjab as is being done in the other provinces. Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) has rejected suspension of three-day gas supply and new schedule of loadshedding in the country, and s t a t ed t h a t i t w o u l d c r e a t e unemployment and unrest in workers across the country. In a meeting held on last month, the PAAPAM managing committee has
expressed its distress over the decision by the SNGPL to suspend gas supply to the auto industry which will ultimately hit exports and supply chain of cars, tractors and motorcycles. Chairing the meeting, PAAPAM Chairman Aamir A Allawia lamented that the auto vending industry was low profile business and do not make hue and cry on each and every issue and faces stress on its own sources but cutting of its energy sources tantamount to circumvent its pace. PAAPAM Vice Chairman Syed Nabeel Hashmi said that prolonged load shedding would worsen the worries of cash strapped fund managers due to r evenue shortfall in ad dition to countrywide unrest resulting from largescale lay-off. He stressed early reversal of the decision-keeping wheel of the industry rolling......
PAAPAM worries over non-payment by manufacturers Motorcycle/rickshaw vendors Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Managing Committee has expressed its distress over the blocking of payments of motorcycle/rickshaws' vendors by Chinese brand Original Equipment Manufacturers (OEMs). The vendors lashed out at OEMs in the meeting chaired by PAAPAM Vice Chairman, Syed Nabeel Hashmi for blocking their payments amounting to millions throughout the country for the last six months. At an emergent meeting called for the purpose, members d i sc losed th a t t h ey ar e b ei ng blackmailed into continuing supplying components otherwise, their previous pending amounts are at risk. The meeting observed that the agreed payment period is 30 days, but it has b eco me a no rm o f so me motorcycle/rickshaw manufacturers to
withhold payments of their suppliers without any justification. It was revealed that a Chinese rickshaw/motorcycle assembler situated in Lahore has not paid vendors bills for the last three to four years despite receiving refund of input sales tax from FBR. On the other hand, vendors are paying interest to the banks on their stuck up amounts. Here also, cheques issued to the vendors c ont inu e to b ou nc e end les sly. On the occasion, Hashmi expressed surprise at the audacity of this particular rickshaw /motorcycle assembler to keep on paying havoc with the auto parts finance. Issuing bogus cheques is in itself a criminal offence, he noted. He, however, stressed to solving the matter amicably and hoped that the association will not have to intervene in the issue. He wished to have the matter resolved as soon as possible.
AUTOMARK | November-2010 14
Car sales up 6% in September More than 10,400 cars were sold in the month of September, up six per cent when compared with sales for the previous month (August). (Click here to view infographic on car sales figures) Demand for cars remains strong despite volatile market conditions on the back of major flooding in th e country. However, observers are still sceptical about the future of the automobile industry in Pakistan. “The growth is not encouraging as September’s sales figures are still seven per cent lower than average monthly sales for this year,” commented Furqan Punjani, analyst at Topline Securities. Car sales also increased by 12 per cent to 30,030 units in the first quarter of the current fiscal year when compared with the same period last year, according to data released by the Pakistan Automotive Manufacturers Association (Pama) on Tuesday. Punjani mainly attributed the growth in car sales to Indus Motor Company and Pak Suzuki, the major players in the market for passenger cars but warned that growth in Indus Motor sales may slow down as figures have already touched optimum levels. Meanwhile, sales of Pak Suzuki are expected to rise by 10 per cent on a yearly basis. Experts contend that another increase in interest rates appears likely in coming months and this could have a negative impact on demand for cars. It is interesting to note that auto sales in next-door China also picked up pace in September. Sales in the world’s biggest market for automobiles rose to 1.56 million units – marking an increase of 16.9 per cent from September last year, according to the China Association of Automobile Manufacturers. Sales were largely driven by passenger vehicles with 1.21 million units sold. It’s not just about cars “I don’t understand why everyone focuses on just cars,” commented Abdul Wa h eed Kh a n from Pa ma . He highlighted that while car sales were picking up, trucks and buses were not performing as well.
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Automotive Sector - Update
PAAPAM seeks MoI&P's input The only way to reduce the prices of cars is to increase the level of localisation and no localisation could take place unless it is given due protection of tariffs to create cost competitiveness for domestic manufactured parts.
Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) h as expre ssed serious concern over several issues relating to the implementation of Auto Industry Development Plan (AIDP). In a letter sent to the Secretary, Ministry of Industries & Production (MOI&P) on November 3, PAAPAM has highlighted nine issues which it has forwarded to the ministry and sought its review. Leading vendors told media, MOI&P appears to have relaxed its role in being 'custo dian of bal ance inte rest' for vendors and assemblers. It would not be correct to say that the local vending industry does not have capacity and capability to manufacture high-tech parts which include parts which have been localised even in Thailand where the domestic manufacturing of a single brand of car manufactured is less in n um b er th a n th e sam e b r and manufactured in Pakistan. Domestic industry, vendors say is quite capable to cater for the needs of named hightech parts through local manufacturing to contain the cost of cars in Pakistan which has remained focused of criticism a m ong st d ec isi on ma ker s and consumers. The only way to reduce the prices of cars is to increase the level of localisation and no localisation could take place unless it is given due protection of tariffs to cre ate cost competitiv eness for domestic manufactured parts. This is the concept which has been developed in the AIDP, notified on account to Economic Co-ordination Committee (ECC) decision whereby the import tariffs on local parts is suggested to be on the higher side so that the cost of sales of domestic parts becomes competitive and attractive. Vendors are concerned over the nonimplementation of AIDP which should h av e t a ke n p la c e d u r i n g t h e announcement of budget. In SRO 693, t h e p ar t rel at ing to AI DP implementation was not updated by Federal; Board of Revenue (FBR). They are of the view that there appears to be either resistance or influence of some
'big-wigs' which has prevailed upon the decision makers to enforce AIDP through SRO 693 whereby the agreed developme nt of domestic parts is protected through enhancement of im port tariffs on sim ilar part s. Vendors said that almost half of the year is gone since the announcement of budget but AIDP and its associated SRO has not been updated to force the car assemblers to honour the mutually committed position on import tariff placement against similar domestic manufacturing. They think that stability and growth of any sector like automobiles is subject to medium terms policies which in case of automobiles is AIDP bit "it is highly regretting to say that MOI&P has not lived up to its promised position that it would ensure implementation of AIDP. Several meetings with Engineering Development Board (EDB) and MOI&P resulting in drafting recommendations for budget which included the demand for updating SRO 693, has not yet been implemented. This is a sorry affair and vendors think that the statutory role of MOI&P appears to be diluted under the influence of car assemblers who are pleading the case of denting the stability of AIDP w hich was agreed and developed as consensus document for vendors and car assemblers. According to vendors car assemblers are i mp e din g an d re s is ti n g th e indigenization of high-tech parts which include engine and transmission parts. EDB is w ell awa re th at recommendations made by different committees on budgetary measures, earlier constituted by EDB still remain non-implemented. Car assemblers following post termination of Trade Related Investment Measures (TRIMS) had agreed with the government to continue with indigenization subject to providing them high tariff protection on impo rt of complete buil t units or complete cars. The other condition to agree to indigenization related to lower depreciation and lower number of years of cars for imports. Other conditions for further protection included putting
AUTOMARK | November-2010 15
regulatory duties of 50 percent, vide statutory regulatory orders. Vendors said that the present situation of such protection would speak as: cars from 1000-1500 cc attract import tariff of 60 percent, from 1500-1800 cc attract 75% and cars from 1801 and onwards in addition to higher rate of import duty of 100 percent, also attract 50 percent regulatory duty vide SRO 896(1)/2008 of August 27th, 2008 against a balanced interest of vendors to have chances of localisation through import tariffs of simil ar products for creating co st competitiveness and as well as cost containing of car price as constitute the d em and of pol ic y mak ers and consumers. Vendors explained that the government of Pakistan after the elimination of TRIMs through ECC gave an approval of a program namely AIDP, a predictable tariff policy for promising the safeguard of in vestme nts against co mmitted indigenization of parts from 2007-2012. The car assemblers during the tariff year 2009 and 2010 pressurised EDB and MOI&P to suspend the AIDP by allowing fr eez e on t h e d evel op ment of i n d ig e ni za t i on o f eng i ne a nd transmission parts. The cars assemblers with their heavy lobby prevailed upon the then finance advisor during 2009-2010 and get the AIDP suspended and as such absolved t h em o f a c cr u ed l ia b i l i t y of i n d ig e ni za t i on o f eng i ne a nd transmission parts in the year 20092010. The strength of summary referred to lower scale production volume. It is strange that localisation was supposed to be carried out by the weaker auto vending industry that were prepared to develop indigenization but the car a ssembl er s d idn' t w ant eng ine, transmission and other auto parts to go as per program of indigenization. No changes in tariff cascading during the freezing of indigenization were made. This facility of freeze was to the exclusive benefit of car assemblers who preferred to import the parts which were supposed to be ind igenised, vendors said.
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Automotive Sector - Update
Car sales up 10% in Q1FY11
Despite less working days due to Eid holidays, cars and LCVs’ sales increased by 6 percent month-on-month (MoM) to 11,663 units in the month of September 2010, latest data released by Pakistan Automotive Manufacturers Association (PAMA). However, the growth is not encouraging as September sales are still 7 percent lower than average monthly sales in 2010 year-to-date (YTD), according to the data by PAMA. Interestingly, during Q1FY11 (JulySeptember 2010), car sales grew by 10 percent to 33,496 units compared to 30,519 units last year. This is despite the fact that the outgoing quarter remained turbulent for manufacturing concern as both security issues and flood devastation restricted their business operation. “Thanks to Indus and Pak Suzuki that managed to sell 11,792 units and 17,820 units, up 13 percent and 8 percent, respectively”, Furqan Punjani, an analyst at Topline Research said. On the other hand, sales of Dewan Motors declined by 87 percent to 52 units primarily due to negative margins and financing issues.
Highest sales growth by Indus: The 1300cc market leader Indus Motor posted highest sales growth of 13 percent in the outgoing quarter. The company through its brand model
Corolla managed to sell 11,792 units as compared to 10,426 units last year. Sales of Corolla (88 percent share in overall company’s sales) stood at 10,371 units as compared to 8,951 units last year. On the other hand sales of Daihatsu Coure almost remained flat at 1,136 units. Thus, during 1QFY11, cumulative sales of the company stood at 11,792 units versus 10,426 units last year, impressive growth of 13 percent YoY.
Pak Suzuki sa les up 8 percent: Pak Suzuki; the most dominant player of lower end cars witnessed sales growth of 8 percent to 17,820 units during the outgoing quarter against 16,434 units during similar period last year. This lower-than-expected growth in company’s car sales is due to a little growth of 4 percent in Mehran sales, largest selling brand of Pak Suzuki with 23 percent share in company’s sales mix. However, sales of Suzuki Cultus and Suzuki Alto stood at 2,860 units and 2,819 units as compared to 2,852 units and 2,365 units last year. Furthermore h ig h er sa les nu mb er w as a lso attributable by the addition of new mod el Swift to th e product lin e. Car sales to reach 154,000 units in FY11, up 10 percent: Analysts expect car sales to reach at 154,000 units by the end of June 2011, up 10 percent YoY. Sales
growth of Indus Motors likely to cool down primarily due to sales figures already reached optimum level and higher base effect in coming months. Thus, analysts expect overall sales to grow by meager 4 percent to 50,000 units in FY11. On the other hand, they expect sales growth of Pak Suzuki to further increase and will end up with 81,082 units as compared to 73,993 units, up 10 percent YoY. Analysts’ estimates include the impact. Their estimates include the impact of hike in interest rates which could hamper sales going forward.
Other segments showed mix pe rforman ce : Oth er segments of the auto sector did not present a bright picture during the first quarter, as trucks sales during the said period remained down by 2 percent to stand at 725 units as compared to 744 units in the same period of last year. Production of trucks gone up by 8 percent. Similarly, sales and production of buses remained down by 16 percent and 28 percent respectively. Farm tractors sales remained up by 9.78 perce nt to stand 13,931 units as compared to 12,690 units last year. Motorcycles and th ree-w h eelers produced better numbers as sales and production remained up by 14 percent each respectively.....
ZTBL halts tractor loaning to flood-hit farmers Instead of extending a helping hand, the Zarai Taraqiati Bank Limited has added insult to injury of flood-hit farmers by halting tractor financing to them amidst destru ction of over 20 perc ent agricultural lands of the gro wers . Besides, the Bank’s loaning ratio is sharply declining, reducing to half the amount, but the authorities continue to hoodwink the customers and even the high-ups by constantly showing the amplified amount of loans through different means, including manipulation of data, sources said. According to documents available with media, all zonal chiefs of the Zarai Taraqiati Bank have been directed by
the head office not to entertain fresh tractor loan cases till further orders. A circular letter No CD/24/2010, dated 13-10-2010 issued by the ZTBL head office and addressed to all zonal chiefs, reads: “Tractors loan cases subsequent to April 17, 2010 will be referred back to the concerned zone and these shall be kept pending till further orders by the Credit Division an Head Office. Besides, no fresh tractor loan cases will be entertained by the branches till fu rther ord ers by Head Office.” Officials said that though the Bank had issued directions to stop financing tractors to the growers in mid-Oct, actually it halted the process of issuing
AUTOMARK | November-2010 16
loans in this regard in June this year. They said that tractor loaning has totally been stopped, which will badly affect the next wheat sowing targets. Besides, the ZTBL has so far not encashed around Rs 1 billion to the tractor manufacturers against the units already delivered. “Total agri loan provided to the growers in the country is usually Rs 207 billion and ZTBL share is almost 80-90 percent in the total amount. Instead of increasing the loan ratio to Rs 200 billion to facilitate the flood affectees, the figure presently hovers around Rs 30-40 billion,” said an official on condition of anonymity.....
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Automotive Sector - Update
Indus Motors Company raises price Long power outages hit vehicles’ production IMC Director Marketing Raza Ansari told media that the seven to eight hours loadshedding had caused a drop in per day production to 170 units (car and commercial vehicles) from 205 units. As car makers have been experiencing drop in daily production due to eighthour power outages, a leading Japanese car assembler on Oct 3, raised prices of some Toyota Corolla variants by Rs. 29,000 or two per cent. The Indus Motor Company said that it had not made any increase in Toyota Altis. The maker of Honda cars also pushed up Honda City price by Rs30,000. Car prices have been raised despite the fact that Prime Minister Syed Yousuf Raza Gilani had called for measures to reduce prices. On September 15, 2010, the IMC had raised the pries of Corolla variants by Rs 25,000 while Altis price was raised by Rs 35,000. From September to November 3, the company had raised prices by four per cent. On February 23, 2010, the company had raised prices by Rs20,000-Rs30,000. Meanwhile, Pak Suzuki Motor Company
Limite d (PSMC L) Se nior General Manager Marketing Ashfaq Hussain told media that the per day production of vehicles fell to 210-215 units from 350 du e to massive pow er failu res. He said it was now difficult to maintain production at normal level in view of surging car demand. He said so far the company had not raised the prices but it was difficult to sustain further in view of rising value of yen making imported parts costlier. IMC Director Marketing Raza Ansari told media that the seven to eight hours loadshedding had caused a drop in per
AUTOMARK | November-2010 21
day production to 170 units (car and commercial vehicles) from 205 units. Besides, the frequent increase in diesel price has also hit the sale of diesel cars. The company, which used to produce 350-400 units two years back, is now rolling out only 40-50 units per month. He said the sal es during OctoberDecember period always remained slow every year due to mindset of buyers to wait for new car registration year. However, he said that there was also a slowdown in orders from growers and the real picture would be evident in December-January when growers get the money of various Rabi crops. He said the company was forced to marginally increase its car prices with immediate effect. “Since January 2010, the rupee has depreciated by 15 per cent against the yen (from 0.928 to 1.066) while the local price of the product increased by around six per cent,” he said....
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Focus on economy - Report
SBP annual report Industrial sector grows by 4.9pc This suggests that the industrial sector is still working below its potential. The contribution of industrial growth to emerging inflationary pressure in the economy is so far limited,” said the SBP report. The State Bank in its annual report issued on last month said the domestic industrial sector recovered from the longest-ever slump in previous years, to record a decent growth of 4.9 per cent du ri ng financia l yea r 20 09 -10 . The report said the recovery came m a in l y du e t o s uppo r t i ve macroeconomic policies, relatively lower inflation, improved prospects of global economy and relatively better credit availability. The FY 10 growth was the fourth highest growth rate in the decade but was still below the 10-year average of 5.7 per cent. The report said the industrial growth during FY10 stemmed mainly from a rebou nd in ma nu fac tur ing and construction sectors as government reversed some taxes imposed last year. The State Bank said the resultant price adjustments were immediately followed by the pick-up in the domestic demand which coupled with available capacities ensured positive growth rate in the most sectors. The report said while manufacturing sector growth was driven mainly by a strong rebound in consumer durable industries, the growth in construction is explained mainly by lower building materi al p ric es tha t r ev italised construction activities in the private sector. The production in mining and quarrying
sector declined mainly on account of natural decline in some oil and gas fields. The report said the decline in these activities is a major source of disquiet at a time when energy shortages are already curtailing economic growth and the burden of import of major fuels has increased substantially. The slowdown in electricity and gas distribution arising from deteriorating financial conditions of energy related companies has further worsened the energy crisis, said the SB P report. Although production recovered in FY10 after a decline last year, it remained low compared with FY07 and FY08. “This suggests that the industrial sector is still working below its potential.The contribution of industrial growth to emerging inflationary pressure in the economy is so far limited,” said the SBP
AUTOMARK | November-2010 22
report. The growth in industrial sector had a sizeabl e effect on impo rts growth; however, most of its effects were offset by lower commodity prices compared to FY09, said the SBP. The increasing demandsupply gap of energy means that available energy supplies are insufficient to fuel even the low production levels of the industry. “This means that any demand-pull stimulus to the industry may not be sufficient to ensure a high growth unless the industry has ample uninterrupted energy supplies,” said the SBP report. Construction sector exhibited a strong 15.3 per cent growth in FY10 compared with 11.2 per cent in FY09. This remarkable performance was driven mainly by decline in building material prices, which were caused by the reduction of duty on cement sales, and decline in global prices of coal, iron and wood, said the SBP. The performance of mining and quarrying sub-sector worsened further as production declined by 1.7 per cent in FY10 on top of a fall of 0.2 per cent in the preceding year. The decline was mainly caused by lower quarrying of crude oil and coal during FY10. A part of decline was offset by slight gains in natural gas and a few other minerals, including limestone, gypsum and silica sand, said the report...
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Automotive Sector - Upate
Automobile manufacturers EDB persuading companies into transfer of technology Niazi said he was advising the Pakistani partners that the Japanese Toyota, Suzuki and Honda Cos. must set up plants for manufacturing auto parts/spares in Pakistan as it was a much bigger emerging automobile market than Thailand, Malaysia or Taiwan. The Engineering Development Board (EDB) is impressing upon the local car manufacturers /assembler to renegotiate agreements with their principals for complete deletion of their branded cars and transfer of technology in Pakistan., EDB CEO Aitezaz Niazi told media on last month. He said ever since he had taken over as Chief Executive Officer of EDB, he has be e n vis it in g th e cars/buses/trucks/tractors/motorcycle manufacturers to see their deletion p rogr amm e and l ocalisa tion of automobile parts so as to strengthen the engineering sector and integrate it with the world market to make it the driving force of economic growth. Niazi said personally he is against import of used cars but it all depends on what are the local industry's plans to boost car production capacity to half a million units, increase the GDP contribution of the automotive sector to 5.6 percent, reach an auto export target of $650 million by next year as stipulated by the government. It may be added that there are 500 autoparts manufacturers in the country that supply parts to original equipment manufacturers. Auto sector presently, c ontr ib u tes 16 per c ent to t h e manufacturing sector, which also is expected to increase 25 percent in the next 5 years, Vehicles' manufacturers directly employ over 192,000 people with a total investment of over $1.5
billion. Currently, there are around 82 vehicles' assemblers in the industry producing p as senge rs' cars, light commercial vehicles, trucks, buses, tractors and 2/3 wheelers. Government of Pakistan had undertaken two major initiatives in the form of National Trade Corridor Improvement Programme (NTCIP) and Auto Industry Development Programme (AIDP) for the development of the automotive industry in Pakistan. When reminded that there is no check on the automobile manufacturers to prevent them from frequent increase of cars prices and they were almost working as cartels despite government's repeated warnings, Niazi admitted that unless there was a healthy competition among the car manufacturers with compulsion of localisation of automotive parts and accessories and transfer of sophisticated technology, this problem would remain". The car manufacturers gi ve so ma ny rea sons suc h a s appreciation of Yen and dollar against Pak Rupee for increase in prices of their branded cars, he added. Niazi said he was advising the Pakistani partners that the Japanese Toyota, Suzuki and Honda Cos. must set up p lant s for ma nufa ctu r ing a ut o parts/spares in Pakistan as it was a much bigger emerging automo bile market than Thailand, Malaysia or Taiwan. Deletion, localisation and transfer of car
AUTOMARK | November-2010 23
manufacturing technology in Pakistan would provide jobs to millions of our technicians, engineers, electricians, vendors etc and boost our engineerings goods export, that is why I am against import of old or new cars, EDB CEO emphasised. It is worth mentioning that Auto parts manufacturing is $0.96 billion per annum. The demand for auto parts is highest in the motor cycle industry, which is 60 percent, then is for cars, which constitutes to 22 percent and the rest 18 percent is consumed by trucks, buses & tractors. This demand is met by Imports, which caters 22 percent, while the remaining 78 percent is supplied by the local manufacturers The Pakistan Association of Auto Parts and A ccessor ies Ma nufa ctu rer s (PAAPAM) and Pakistan Automobile Manufacturers Association (PAMA) in a presentation to the government have suggested various steps that should be taken by the government to arrest the slowdown in sales. They asked the government to place stringent checks on auto-parts imported commercially or as semi knock out kits. They proposed the introduction of non-tariff measures to curb the import of parts that are being manufactured in Pakistan as 50 percent duty has failed to stop the import of these parts as the import prices are easily man ipulate d by the importe rs.....
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Exclusive Article on Environment
by Asif Masood
Sustainable Development & Climate Change Only 60 per cent of urban solid waste is collected. No city in Pakistan has proper waste collection and disposal system for municipal or hazardous wastes, causing contamination of soil. Excessive use of pesticides has adversely affected biomass of agriculture land T h e g o v e r n m en t h a s s p e c i a l responsibilities with regard to ensuring sustai nab le management of th e environment and equitable allocation of benefits and costs of environmental protection measures in Pakistan. Developing countries themselves have the key role in tackling environmental problems but also for allocating resource s according to their own p ri or iti es a nd l egal m and a tes. Theoretically, there are two general strategies available for meeting these legal mandates. One is to cut back economic activity to a level where the pollution it generates falls within the standards. The second is to improve and reorganize how we produce economic activity so that higher levels of economic activity can go hand-inhand with better environmental quality. The role of public campaign also plays vital ro le in order to achieve the environmental objectives to attain sustainable economic growth without environmental degradation. The Plans and policies identify country specific priorities and address them within the framework of comprehensive national strategies for sustainable development.
The main objectives are: a. To identify and accordingly respond to environmental issues by initiating sustainable plans/ policies/ laws/ regulations/ projects and program b . T o int egr at e envir onm enta l considerations into the decision making process
c. To ensur e in a cr ed ible a nd transparent way that the environmental asp ects are fully integr ated into Pakistan’s economic and development plans and policies d. To ensure sustainable management of the environment an d equitable allocation of benefits and co sts of environmental protection measures e. To facilitate both regulatory and market-based approaches to natural r eso u rc es m an ag em ent a nd environmental protection
O ve rvi ew of Environment Sector in Pakistan Although, history of protection of forests and wildlife movement in Pakistan dates back to pre-independence period, efforts to address environmental concerns started gaining momentum after the Uni ted N ati ons Confer ence on Environment and Development held in S toc kh olm in 19 72 . In 19 75 , Environment and Urban Division was established in the Ministry of Housing Works and Urban Affairs. The first piece of leg isl at io n to c onsid er t h e environment as a wh ole w as the Environment Protection Ordinance of 1983, which sanctioned establishment of Pakistan Environmental Protection Council chaired by the Prime Minister, a Pakistan Environmental Protection Agency and provincial Environmental Protection Agencies. The integratio n of environmental
AUTOMARK | November-2010 24
considerations into n a t i o n a l development planning process was initiated at the time of the Seventh FiveYear Plan, 1988-93. In 1992, the National Asif Masood Conser vation Strategy (NCS) was formulated through a consultative process. NCS set out policies and measures in fourteen core areas for priority implementation and investment. Since the implementation of NCS commenced, considerabl e progress has been made in the following areas of the environment sector: a. Establishment of policy framework including formulation of conservation strategies for NWFP, Balochistan and Northern Areas as well as for a few districts formulation of Biodiversity Action Plan, adoption of the National Environmental Action Plan (NEAP) and preparation of the draft Forestry Policy and draft National Environmental Policy b. Establishment of legislativ e / regu latory fr amework inc lud ing n o t i fi c a t i on o f t h e N a t i o n a l Environmental Qual ity Standards, enactment of Pakistan Environmental Protection Act-1997 notification of supporting rules and regulations for the Act, establishment of environmental tribunals in Lahore and Karachi, and designation of civil judges as judicial magistrates c. Institutional strengthening/capacity building of environmental institutions
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The marine environment has been severely polluted by discharge of industrial and domestic sewage through the Malir and Lyari rivers and other sources, carrying in excess of 350 mgd of effluents. Oily discharge is also contaminating sea water at the Karachi port and harbor su ch a s P akist an Envir onment P r ot ec t io n A g en cy , p r o vi nc i a l Env iro nment Protection Agencies/Departments, Ministry of E nvi r on me nt a nd P la nn in g & Development Division as well as civil society organizations d. Signing of over a dozen international conventions and protocols in the areas of clim ate ch ange, biodiversity, c h em ic al s and d eser t if ic at io n. e. Implementation of various projects and programs aimed at improving the environmental situation in the country. One of the major initiatives in this context is the NEAP-Support Program which is being implemented with the aim of environmental sustainability and poverty reduction in the context of econom ic gr owth . Th e pr ogram proposes a wide range of technical, institutional , regulatory, social and economic interventions grouped under six sub-program Poli cy c oor d ina tio n and environmental governance Pollution control Ecosystem management and natural resources conservation Energy conservation and renewable Dry land management Support for grassroots initiatives The Mid-Term Review (MTR) of NCS, which was conducted in year 2000 concludes that achievements under the NCS were primarily awareness raising, institution building and strengthening of civil society institutions and their influence. In terms of investment NCS Mid-Term Review indicated that a total investment of Rs. 77 billion was realized in 9 years against Rs. 150 bil lion envisaged over a period of 10 years in the NCS.
Major Issues and C hal le ng es a he ad a. Pe r capita water avail abil ity in Pakistan has been decreasing at an alarming rate . In 1951 pe r capita availability was 5300 cubic meter which has now decreased to 1105 cubic meter just touching water scarcity level of 1000 cubic m eter. T he existing w ater resources are under threat due to untreated discharge of municipal and industrial wastes to river and other surface water reservoirs. Municipal water is treated only in two cities viz. Karachi and Islamabad though the capacity of these treatment plants is much less than the actual quantum of wastewater b. Our industries imports about 525 types of chemicals and dyes/colors for use in different processing industries. Their processing generates wastes and pose potential risk to public health c. Only 60 per cent of urban solid waste is collected. No city in Pakistan has proper waste collection and disposal system for municipal or hazardous wastes, causing contamination of soil. Excessive use of pesticides has adversely affected biomass of agriculture land d. ‘Fog’ seriously affects central, western and parts of southern Punjab during December and January every year this is due to coal bu rning in Ind ia e. Noise pollution is a major problem in mega cities like Lahore and Karachi f. Pakistan is heavily dependent on i m p o r t ed o i l . E ne r g y u se i n characterized by high degree of waste and inefficiency as we have one of the highest energy intensity ratios in the world. The spiraling energy costs continue to dampen the entire gamut of economic activity
AUTOMARK | November-2010 25
g. Siltation in Tarbela Reservoir is 27 mil lion acre feet (MAF) per year h. A high level of pollution of Indus waters, resulting collectiv ely from sediment load and effluent discharge, has caused about 80 per cent of riverine forest to disappear i. Desertification has affected 43 million h ec tares of land , wh ereas land reclamation program like the National Drainage Program would cover up to 2 million hectares only j. Forest cover could hardly be increased from 4.8 per cent in 1992 to 5.00 per cent in 2002-04 despite all efforts k. Less than 50 per cent of population has access to adequate sanitation l. The marine environment has been severely polluted by discharge of industrial and domestic sewage through the Malir and Lyari rivers and other sources, carrying in excess of 350 mgd of effluents. Oily discharge is also contaminating sea water at the Karachi port and harbor The above situation has arisen due to a number of factors including high population growth rate, lack of public aw are ne s s an d ed ucatio n , mismanagement of water and other natural resources as well as unplanned urban and ind ustrial expansion.
The major challenges ahead are: There is a need to strengthen the enforcement regime to effectively monitor and enforce the standards so that environmental conditions in the industrial sector could be improved and ind ustr y cou ld comp ete in th e environment friendly international market scenario Although the process of EIA/ IEE has been introduced in the country but this
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World Environme nt Day are al so regularly organized. Students from across the country participate in these co nte sts . Seve ral hu nd red environmental clubs have also been established in schools. M in is tr y of E nvi r onm e nt a nd Curriculum Wing of the Ministry of Ed u cat ion h a ve joi ntly star ted implementation of “Environmental Education Promotion at School and College Level Proje ct” under the umbrella of National Environmental Action Plan – Support Program. The project, which is being supported by the Swiss Agency for Development and Corporation, will result in integration of age-appro priate environmental concepts into relevant textbooks from grade one to twelve throughout Pakistan. It is being implemented over a period of four years and will target more than 200,000 educational institutions and 26 million students across the country. In parallel to the efforts for promotion of environmental education at school level, efforts have also been made to promote environmental education at the university level. Consequently, environment related courses have been infused in more than 20 programs including Botany, Chemistry, Physics, Zoology, Geology, Bioch em istry, Microbiology, Geography, Genetics, Ph ysiology, Freshw ater Biology, Economics, Sociology, Pakistan Studies, Social Work, Law, Archeology, Women St ud ies, Pu blic Ad ministr ation, E d uca t ion an d Ps yc hol og y. Furthermore, contents of the programs such as agricultu re , forestry and engineering programs, which already had a significant environmental c omp onent, h av e b een fu rt her reinforced . Specialized dip loma, bach elor, master and Ph D level programs on environment (such as environmental science, environmental engineering and environmental law) are also being offered in eighteen public institutions/university departments acr oss the countr y w hile many univ ersities have launched similar programs. Many environmental awareness specific initiatives have been or being taken by Government agencies, NGOs and C or p o r at e S e ct o r t o i n cr e a se understanding an d awareness of environmental issues through formal
and informal communication channels. The Ministry of Environment has also implemented a “Mass Awareness and Education Project” at a cost of Rs. 25.96 million. In addition, many ongoing or under processes projects, such as Mountain Area Conservancy Project, Fuel Efficiency in the Road Transport Sector Pro ject, Persistent Organic C om p o u nd s P r oj ec t , P a ki s ta n E nvi r onm ent P r og r am , and E st ab l is h m ent of Oz one Cel l, Implementation of WSSD in Pakistan, have significant components focusing on environmental awareness and communication. A “Green Library and Documentation Center” has been established in Pakistan Environmental Protection Agency with the objective of providing an efficient information network within the country. A “Resource Center” w ith similar objectives has also been recently set-up in the Ministry of Environment.
Issues
- Institute an award to be given annually to individuals and organizations for their efforts in promoting environmental education
-
Launch a devoted environmental edu cation website e.g. Paki stan Environmental Education Gateway for providing a platform for sharing of knowledge, ideas and experiences
- Support publication of a quarterly newsletter on environment
Public Awareness
-
Establish National Environmental Information Management System for ensuring availability of accurate data for decision making as well as enhancing ac cess of th e general p ublic to environmental information.
- Establish a national “Communication Roundtable on Environment” to achieve better coordination, correlations and c ollaborat ion of communicat ion activities.
T he ke y i ssues conc er ni ng environmental education and awareness in Pakistan include lack of coordination in the work of various agencies, lack of technical expertise, lack of trained teachers on environmental education, less focus on integration of environment in the informal education sector, lack of a comp rehensive ed ucation and communication strategy and lack of resource material on environmental education.
- Launch a project to raise environmental
Proposed
- Make environment related publications
A ctio ns
awareness of the general public as well as selected target groups including elected representatives at the union council, tehsil and district levels.
- Support establishment of district, tehsil and union council environmental / conservation committees.
- Support designation of environmental focal points in all relevant ministries and provincial departments.
The following proposes the interventions for promotion of environmental and awareness in the country:
such as NCS, Provincial and District Conservation Strategies available in the market for general public.
Environmental Education
R ese arc h Environment
-
Launch programs to integrate enviro nment in formal as well as informal education sector.
- Integrate environment in the curricula of teacher training programs as well as professional development programs such as NDC, NI PA, Civil Services Academy and PARD
-
Designate an existing institution as “National Center of Excellence in Environmental Education” and build its capacity to enable it serve as a premier environmental educatio n trainin g institute
-
Provide support to schools for establishment of environmental clubs
AUTOMARK | November-2010 27
on
Issues Research a ctiviti es focu sing on environment are being carried out under almost all the university institutions offering related programs as well as by public sector research organizations such as Pakistan Council of Research in Water Resources, Space and Upper Atmosphere Research Commission, Pakistan Forest Institute, Pakistan A to mic Energy Commission and Pakistan Council for Scientific and Industrial Research, Global Change Impact Studies Center, Pakistan Agricultural Research Center, PCRWR,
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National Energy Conservation Center (ENERCON) and National Institute of Oceanog rap h y. Alt h oug h a few universities and research organizations, which are well equipped in terms of equipment and manpower, produce high quality research output, the research base in environment remains narrow with most of the research activities dire cte d towards mo nito ring and si tuation assessm ent instead of technology development and innovation. The contributing factors to this situation include lack of qualified researchers, absence of well-equipped laboratories and limited availabil ity of financial support for research in environment. As a consequence of severe paucity of indigenous research, the environmental solutions are mostly imported, which create problems in full implementation to achieve required research. To address this , there is a need of effective coord inati on b et ween th e R&D institutions as w ell as academic institutions. The relevant research topics should be selected keeping in view the need and requirements of the target groups. The results as generated may then be made public through various means of communications. This process would of necessity, involve stakeholders from the public, private an d civ ic sections. One of the key to success of this system is in development of a national patent system.
Proposed Actions With a view to promote research on envi r onm ent, the f ollo wing interventions are proposed:
- Establish an exp ert grou p on environment to identify national research priorities - Provide grants to research institutions for undertaking need based research in priority areas
- Support research organization (s) for launching a peer-reviewed research journal on environment for promotion and dissemination of quality research
-
Su pp ort A JK and Kara ku ra n Universities in launching specialized degree programs on enviro nment
- Support research organization (s) for launching a peer-reviewed research journal on environment for promotion and dissemination of quality research
- Provide support to universities and research and development institutions fo r or g a ni z at i on of s ci e nt if ic conferences/seminars/symposia on environment
- Develop a database on environment related publications in Pakistan
-
Establis h National Institute of Biodiversity and Ecosystem Sciences
-
Arrange more publ ic awareness campaigns Enforcement of Environmental Laws The country has re sponded to its environmental problems by passing law s, establishing environmental p rot ect ion inst it ut ions a nd b y developing human resources and technical capacities through local resources and foreign assistance. The Pakistan Environmental Protection Act (PEP Act) was enacted in 1997 which p r o v i d e s f o r t h e p r o t e c t i on , conservation, reh abilitation and improvement of environment for the prevention and control of pollution and promotion of sustainable development. The Pakistan Environmental Protection Agency exists at the Federal level which has the overall jurisdiction to implement and enforce environmental laws in Pakistan. The Provincial EPAs exist in all the four provinces of Pakistan. The Federal Government has delegated powers under the PEP Act, 1997 to the provincial governments for enforcement of the requisite sections. However EPAs hav e meager staff responsible for implementations of various clauses of Pakistan Environmental Protection Act, 1997 and different rules and regulations. EPAs in Pakistan are presently facing difficulties such as: • Lack of human, technical and financial resources and trainings • Uncertain structure and position within the governments especially after the evolution of the devolution plan and its implementation • Insufficient compliance regulatory frameworks, compliance control procedures and enforce ment tools • Ineffectiveness of current compliance enforcement activities • Weak environmental monitoring system for ind ustr ial a ctivi ties Strategy/Actions to Ensure Enforcement of Environmental Laws • For the effective implementation of PEPA-97 the necessary amendments for
AUTOMARK | November-2010 28
vigorous enforcement/ financial implications are needed to be further worked out and financial provisions be made accordingly • The administering and implementation machinery is only partly in place is inadequate and demands immediate action for technically skilled human resource development • A monitor ing and evalu ation mechanism to review the environmental performance under the law • Implementation of Green Industry Program to ensure the compliance of NEQS • Institutionalize the procedures for IEE/EIA. Enhance capacity to review IEE/EIA • Creating a repository of all significant environmental information (including baseline data of all environmental sectors) of the country and making it accessible to all stakeholders, at least through electronic means • Undertaking awareness raising and advocacy on key environmental issues • Encouraging and supporting research on environmental issues • Finalize, notify and enforce all rules and regulations prepared under PEPA97 • Review and revive self assessment and pollution charge regimes • Highligh t environmental issues through media and other advocacy tools.
Conclusion It is an established fact that “NO” Environme ntal and Conservation campaign in any country can meet success unless all sections of the society extend their whole hearted support to this national cause. Every individual, every institution and every sector has to contribute to this National exe rcise .
About the writer: Mr. Asif Masood Chief Technical Officer at ENEROCON / ECF, Islamabad. He is regular contributes for Monthly Automark magazine Read this article at our website www.automark.pk
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Automotive Sector - Update
Reduction in car prices Government in no mood to press local manufacturers Secretary, Planning and Development Division, observed that the local market of cars had been distorted due to high rate of CBU and CKD.
The Federal Government is reportedly in no mo od to press the local car manufacturers to reduce prices despite Prim e Minister's directives th at measures be taken to bring car prices down, source s close to Secretary, Industries, told media. "We submitted the summary to the Economic Co-ordination Committee (ECC) twice or thrice, but the 'real players' did not take up this issue," sources said. The Minister for Industries and Production, Hazar Khan Bijarani, on a number of occasions told this scribe that personally he favours commercial import of used cars to bring down the prices of locally manufactured cars but, according to him, the ECC is the proper forum to take such decisions. "Our summary is going unnoticed by the Finance Minister, who is also Chairman of the ECC, which implies that someone is behind this move to block the proposal," sources added. They said that a meeting held under the chairmanship of Secretary Planning Division had discussed the issues of car prices and role and performance of Engineering Development Board (EDB). The representative of EDB gav e a detailed presentation on growth, sales and p rofits of th e th ree ma jor automobile players in the sector. The meeting was informed that 99.7 percent market share in the car segment is held
by Japanese car manufacturers. Being cost-effective, Pak Suzuki Motors has a major share of 48 percent in small cars market, while Indus Motors and Honda Atlas Motors remained at 39.33percent and 11.38 percent respectively during 2009-11. The Indus Motor Company's performance in terms of profitability was positive while Atlas Honda and Pak Suzuki showed negative trend during the period. The representative of EDB elaborated that the under-utilisation of capacity, high mark-up rate, yen-rupee parity, and price hike in the international commodity market account for a rise in car prices. He suggested that tariff reduction on Completely Built Up (CBU) and Completely Knocked Down (CKD), reduction in customs duty, deletion, indigenisation, extending age limit of imported used cars, and conducive environment for new entrants, etc would be helpful in reducing the car prices by Rs 40,000 -Rs 50,000. Secretary, Planning and Development Division, observed that the local market of cars had been distorted due to high rate of CBU and CKD. The tariff reduction and deletion was meant for localisation, which has not been done. It was further pointed out that in the absence of well established mechanism of consumers' rights protection, the reduction in tariff would be meaningless.
AUTOMARK | November-2010 33
It was also noted that t he qu a lit y of deletion items had positive impact on t h e lo c a l manufacturing units which resulted in the highest sale of Suzuki M ehr an c a r s Mir Hazar Khan Bijarani compared to others. He further suggested that local manufacturing of gear boxes and transmission system would provide enabling environment for cost reduction. For this purpose, Machine Tool Factory of Pakistan needs to be upgraded. The EDB suggested that the only way to compel the local car manufacturers was to allow import of used cars of 3-4 years' age, in case of small cars, and 3-5 years in case of big cars. The representative of National Tariff Commission (NTC) argued that import of used cars may be general ised, otherwise some specific people would take advantage of this facility, and the majority would suffer. However, the representative of Ministry of Commerce said that the meeting was to explore the avenues and to chalk out strategy about the reduction in car prices rather than developing a consensus on tariff reduction on import of cars.....
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Automotive Sector - Report
Over Rs.50 billion invested in past few years in Pakistan’s Auto Industry The current challenges include quality and timing of new model launches, current production quality targets, on-time delivery challenges from suppliers, and cost-competitiveness of suppliers. PAMA strongly feels that there is need for a stable policy to allow the auto industry to plan effectively for future models and expansions.
All automobile manufacturers and vendors have increased their capacities by making large investments of over Rs. 50 billion in the last few years to meet the growing demand in the country, according to figures. Of these, the thre e large original equipment manufacturers (OEMs)-Pakistan Suzuki, Honda and Toyota-alone have invested over Rs 20 billion during the last four years. This has resulted in capacity increase of the OEMs. Total capacity of Pak Suzuki, Honda and Toyota has increased by over 100 percent during the last five years, which has brought direct employment of over 5,500 persons by the OEMs. At
the same time, the industry also supports employment of over 1,392,000 persons--by vendors, suppliers and dealers. According to Pakistan Automobile Manufacturers Association (PAMA), Pakistan's automotive industry, which is represented by world-renowned au tomob ile manu fa ctu rers, like Hyundai, Honda, Suzuki and Toyota, is currentl y in the formative stage. There are about 400 Tier-1 auto-parts manufacturers (APMs), in addition to 1,600 other APMs supplying to Tier-1 u ni t s . M a n u f a c t u r e r s h a v e a countrywide outreach through network of over 12,535 dealerships. The industry is nurturing growth in the country through significant contribution to national exchequer and GDP, saving valuable foreign exchange through value-addition, employment generation (APMs 150,00 an d OEMs 5,000), transfer of technology through technical assistance agreements (TAA) and joint ventures (JVs), major investments and
AUTOMARK | November-2010 34
continued localisation. It is a strategic industry with mushrooming impact on economy. Figures provided by PAMA show that the auto market in Pakistan was stagnant from around 1989-90 to 200102 due to inconsistent p olicies, government changes, and slow economic growth. The market then witnessed a rapid growth phase until 2006-07 due to stable government, economic growth, availability of auto financing, long-term auto policy, workers' remittance, and infrastructure development. The market, however, then rapidly declined due to political change, law and order situation, economic growth slowdown, lower auto financing, inflation, and high input costs. On the challenges of a declining auto market, PAMA said that two continuous years of decline created enormous hardships for both the OEMs and the auto part suppliers. OEMs/suppliers had to resort to production cutbacks and workforce layoffs. Indus Motor Com p any (IM C) h ad 5 -6 nonproductio n days/month that were utilised for training and did not lay off any personnel. There was a layoff of more than 50,000 workers by the vendor ind ustry. There also was significant loss to exchequer, while suppliers faced extreme financial hardship after production cutbacks. Pakistan Economic Survey 2009-10 figures show that total revenue collection in 2009-10 was Rs 1,380 billion. Indus Motor contributed around 1.5 percent
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There are several major challenges faced by auto manufacturers, lead time for supply of CKD parts being a critical element in manufacturing process. The average lead time from the principals to fulfil any change in demand pattern is 60 days (in some cases 90-120 days). of total revenue collection in 2009-10 (Indus Motor share alone is around 56 percent of total collection from auto assembling industry during 2009-10). The government policy, as articulated in Auto Industry Development Program (AIDP), was essential for realisation of the long-term objectives. Tariffs and additional duties were imposed that impacted growth directly. Complete Knocked Down (CKD) rate of duty is 32.5 percent for passenger cars. However, if any item is on A-Max (parts localised by any OEM) then the OEM has to pay punitive 50 percent rate of duty. New cars of same engine capacity as locally produced cars are freely importable. Pakistan has the most liberal policy for used cars import in the whole region.
The AIDP objectives were: long -term investm ent, encourage growth, enhance domestic competition, stimulate innovation, used vehicles import policy be regulated so that growth of local industry is not impeded and consumer interest is p r o te c t e d , f u r t h e r en c o u r a g e indigenisation, and facil itate auto industry's integration into the global supply chain.
PAMA's view on used carscharacteristics of car imports and trading--is that this arrangement has short-term benefit with very little
employment and no technology transfer. It is pro ne to malpractices. Used imported cars have limited after-sale service and no warranties as it is roadside operation resulting in high maintenance an d spares cost. In addition, there is flight of capital and l itt le GDP revenu e. It h as no contribution to GDP and economic growth, and is dependent on foreign sources. There is no import substitution, no investment, and it supports the foreign auto industry. As against this, local car manufacturing has long-term benefits. It provides employment to over 400,000 people. There is transfer of technology to OEMs, vendors and dealers. There are fully documented transactions, significant contribution to GDP and economic growth, foreign exchange savings and substantial government of Pakistan revenues. It is an integrated industry with 35 dealerships giving full after-sales and warranties, resulting in low maintenance and spares costs. The setup is very capital-in te nsive, with significant import substitution, supports local auto industry, and is a move towards self-reliance. IMC is a joint venture of Toyota Motor Corporation, Toyota Tsusho Corporation and House of Habib. It produced auto parts worth approximately Rs 16 billion through 60 different local suppliers in fiscal year 2009-10. To-date, this is the
AUTOMARK | November-2010 35
highest localisation effort by any OEM, both in terms of volume and value. Large investments in localisation, coupled with streamlined output, helped IMC achieve record production of 50,557 units in 2009-2010, as compared to 34,298 units in the previous year. There are several major challenges faced by auto manufacturers, lead time for supply of CKD parts being a critical element in manufacturing process. The average lead time from the principals to fulfil any change in demand pattern is 60 days (in some cases 90-120 days). This industry has longer lead time levels for arrangements of par ts from principals as well as local vendors. Sometime s there can be delays in delivery. The supply chain to produce automobile is very complex and in many cases parts are received from Japan, Thailand, Malaysia, Indonesia, Taiwan and Vietnam. The vendors also have a very complicated supply chain for certain r aw materials. It is difficult to immediately react to changes in demand. The current challenges include quality and timing of new model launches, current production quality targets, ontime delivery challenges from suppliers, and cost-competitiveness of suppliers. PAMA strongly feels that there is need for a stable policy to allow the auto industry to plan effectively for future models and expansions. The government should not impose higher duty on the high-tech parts that cannot be localis ed due to nonavailability of technology and current low volume. Such an action would result in further incre ase in co st to the consumer. The go vernment should continue the ban on import of used vehicles that are more than three years old whil e maintainin g the current depreciation allowance.
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Piaggio and 2011 Motorcycles (U.S. Models) Piaggio Group Americas (PGA), the North American importer and distributor of Italy's Aprilia, Moto Guzzi, Piaggio and Vespa motorcycle brands, announced nine exciting new models that will ship to certified U.S. dealers over the course of 2011. Revealed at the EICMA 2010 Motorcycle Show in Milan, Piaggio will offer motor enthusiasts additional entries in the motorcycle, scooter and urban mobility sectors. Motorcycle models revealed at EICMA traditionally materialize in the U.S. six to twelve month s later.
Piaggio From two to three wheels, Piaggio scooters feature the latest technology with top quality mate rials, all at competitive prices. Joining Piaggio's three-wheel family is the Piaggio MP3 City, bringing all of the advantages of the MP3 to a compact 278cc scooter with light, agile and maneuverable lines. The MP3 City (introduced at EICMA as the Yourban but to be renamed the MP3 City in the U.S.) is ideal for urbancommuters as it zips in and out traffic while delivering unparalleled stability, road grip and parking ease. On the two-wheel side, longer-distance riders will appreciate the expanded under seat cargo capacity of the Piaggio BV 300. The BV 300 is an excellent companion on any trip - short or long. The MP3 City and the BV 300 will be arriving in the U.S. at the end of 2011. Making an appearance after a four year hiatus will be the fun, reliable and practical Piaggio Typhoon. The Typhoon will be back in the summer of 2011 with updated styling and a fourstroke 125cc engine.
Aprilia For riders with a need for speed and agility, Aprilia offers four new models
to its intense lineup of powerful motorcycles. Derived from the bike that won the coveted 20 10 Wor ld S up erb ike C h a m p i o n sh i p T r i p l e C r o w n ; Manufacturer's Title, Team Title and Rider Title with race pilot Max Biaggi, the RSV4, Aprilia unleashes the RSV4 Factory Special Edition (SE) with the exclusive Aprilia Performance Ride Control package (APRC), which offers su p e r bi k e r a c e t ec h n ol og y t o professional and recreational riders alike. Aprilia also applied its knowledge gained on the track to the Dorsoduro 1200, an explosively powerful and extremely agile, twin-cylinder motard, offering riders a balance of performan ce , precision and excitement. Both the RSV4 Factory SE APRC and Dorsoduro 1200 will be in dealerships in the spring of 2011. Aprilia also designed a bike that novice riders could enjoy, the RS4 125. It is the successor and most advanced evolution to date of the RS 125, the bike that dominated the 125cc sports class for years and remains the most highly sought after machine among riders competing in the Sport Production Category. The Aprilia RS4 125 introduces the highly advanced, al l-new 4 stro ke powerplant to the sports segment, while adopting styling and technical solutions inherited from the RSV4. The much anticipated Tuono V4R was also shown at EICMA and, along with the RS4 125, is planned for arrival in the U.S. at the end of 2011.
Moto Guzzi As is fitting with its heritage of classic Italian style and innovation, Moto Guzzi introduces the revamped and improved Ste lvio NTX to its model lineup. Based on the Stelvio 1200 - which acquired its name from the famous Alpine pass that connects Ital y' s Valtelline Valley to the Vinschgau Valley - the Stelvio NTX reaches a record range thanks to a new, 32-litre fuel tank.
AUTOMARK | November-2010 36
The Stelvio NTX's aerodynamically designed fairing , backed by Moto Guzzi's renowned V-shaped 90 degree transverse twin-cylinder engine, is perfect for short and long road trips, and will be available in dealerships at the end of 2011. Additionally, Moto Guzzi unveiled the Norge GT 8V, which features the latest variation of the Quattro valvole engine. New design elements include, revised suspension settings, new one-piece fairing, new Moto Guzzi customized side panniers and a new saddle shape. The Norge GT8V will be available in the U.S. in the first half of 2011.
Tata Motors to Raise Nano Price Tata Motors Ltd., will increase the price of its Nano minicar to partially offset the steep rise in input costs in the past two years. The car's price will be raised by about 9,000 rupees ($203) from Nov. 1, India's biggest auto maker by sales said. The latest increase will be the second for the Nano since its introduction in March 2009. Tata Motors raised the minicar's price by 3%-4% in July to offset higher input costs. The base variant of the Nano, the world's cheapest car, was launched at 123,361 rupees at showrooms in New Delhi. Caption: Newly manufactured Nano cars are seen at the new Tata Nano car manufacturing plant at Sanand in the western Indian state of Gujarat, June 2, 2010.....
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Exclusive Article
by Omar Rashdi from St. Patrick’s Technical Institute
Multi-valve Engines The advantage of 5-valve engine is still under questioned. Not only few car makers used it (VW group, Ferrari and the bankrupted Bugatti), but Formula One cars also no longer favour it. Multi-valve Engines are not new; we are using it since a long time. The main objective to use multi-valve is to increase engine’s power, efficiency, get better intake and exhaust efficiency. These two type valves (intake and exhaust) play a ver y im portant r ole in eng ine’s technologies. Intake valve opens in intake stroke when cylinder needs fuel mixture and exhaust valve opens when cylinder needs to put out all the burn gases. All the new technologies like VTI, VVT-i, VTEC, i-VTEC etc. are playing with valves and their time of opening and closing. In intake stroke when the piston goes down to BDC (bottom dead center), the vacuum take place over there, because of vacuum in cylinder fuel mixture get help to go into the cylinder through valve(s). So it would be better to give more valves to get enhanced performance. Sports track’s heavy bikes are mostly 250cc but they have 16-valves (4-valves in one cylinder), just because of more valves they have dynamic pickup. Normally when we walk, we take breath through nasal but when we run fast, we starting to take breath through nose and mouth both because that time we need more oxygen, similarly when the engine runs faster it needs more valves just like we do with our breathing system. All the new cam technologies have the same objective that they change the time duratio n of valve at high speed.
History Multi-valve engines started life in 1912, adopted by a Peugeot GP racing car. It was briefly used by the pre-war Bentley and Bugatti. However, it was not applied to production cars until the 60s - Honda S600 w as probably the earliest production road-going 4-valve car. In the 70s, there were several more 4-valve cars introduced, such as the Lotus Esprit (1976), Chevrolet Cosworth Vega (1975, engine made by Cosworth), BMW M1 (1979) and Triumph Donomite Sprint. The latter introduced the first singlecam 4-valve engine, using rocker arms to drive valves.
In the early 80s, when Ferrari had just adopted Quattrovalvole V8, Honda was in troducing 3-valve engines to its mainstream bread-and-butter models. In the mid-80s, both Honda and Toyota made 4-valve engines standard in virtually all mainstream models. The Western car makers did that some 10 years later!
Theory Improving breathing is one of the keys for power enha n ce me nt . Unquestionably, in the 2-valve era valves used to be the bottleneck, hence the need for more valves.
4-valve engines A typical 2-valve engine has just 1/3 combustion chamber head area covered by the val ves, but a 4-valve head increases that to more than 50%, hence smoother and quicker breathing. 4-valve design also benefits a clean and effective combustion, because the spark plug can be placed in the middle. 4 valves are better to be driven by twincam, one for intake valves and one for exhaust valves. Honda and Mitsubishi models prefer to use sohc, driving the valves via rocker a rms like th e aforementioned Triumph. This could be a bit cheaper, but intro duce more friction and hurt high speed power. Therefore the sportiest Honda and Mitsubishi still use dohc.
5-valve engines It is arguable that whether 5 valves per cylinder help rising engine efficiency. Audi claimed it does, but fail to provide evidence to support. In fact, its 5V engines are no more powerful and torque than its German rivals with 4 valves per cylinder.
AUTOMARK | November-2010 37
Originally, 5-valve des ig n does n’t guarantee covering more head area than 4 - v a l v e r . Nevertheless, if the head of combustion c ham be r is i n irregular shape like the picture shown, the valves may cover larger area. Ferrari F355 makes use of this to enhance high-speed breathing. Is there any disadvantage? Yes, faster breathing also harm low-speed torque if no counter measure is taken. Therefore it is more suitabl e to spo rts cars. The advantage of 5-valve engine is still under questioned. Not only few car makers used it (VW group, Ferrari and the bankrupted Bugatti), but Formula One cars also no longer favour it. Even the Ferrari F1 cars which were once famous for 5V engine has switched back to 4-valve design a few years ago.
Drawback and Solution Most early 4-valve engines were not good at low-to-middle speed torque, simply because the larger intake area resulted in slower air flow. Especially at low speed, the slow air flow in the intake manifold led to imperfect mixing of fuel and air, hence knocking and reduced power and torque. Therefore 4-valve engines were regarded as strong at top end but weak at the bottom end, until the te ch nology of variable intak e manifold became popular recently. Toyota introduced T-VIS (Toyota Variable Intake System) in the mid-80s. T-VIS accelerated low speed air flow to the man ifold. Later on companies starte d working on variable valve technologies (VTI, VVT-i, VTEC, i-VTEC etc). They found that one way to get better performance is to play with opening of valve time, that’s why companies are still using and working on it.
Drive carefully. It's not only cars that can be recalled by their maker . .....
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International Automotive - Update
Electric tuk tuks introduced to Europe The three-seat and cargo models are powered by a 72V motor for a top speed of 50 km/h (31 mph), while the stretched 6-seater "limotuck" tops out at 35 km/h (22 mph). Call them tuk tuks, auto rickshaws, mototaxis or any one of several other names, but they’re one of the world’s most ubiquitous vehicl es – threewheeled motorized rickshaws. They’ve been a fixture on roads in Asia, South America, Africa and Italy for decades, and have more recently made their way into the Netherlands, the U.K. and other countries. Given that they typically have quite small engines and are used mostly as runabouts, Dutch company Tuk Tuk Factory (TTF) decided to start making electric tuk tuks a few years ago and has now introduced them to the European market. TTF couldn’t sell gasoline tuk tuks direct from manufacturers in Asia, as the vehic les r ep ortedly d id n’t meet European environmental, quality or safety requirements. While some of the other brands of tuk tuks currentl y operating in Europ e h ave been retrofitted with compressed natural gas engines, TTF decided to have their vehicles built from scratch. “We took the biggest battery we could possibly imagine as a starting point, and then designed the vehicle around that battery,” said chief designer Dennis Harte. “A 15kWh lead acid battery drives the silent and maintenance free AC motor. The chassis has been designed
to carry the 400 kilos (882 lbs) of the humongous battery.” According to the company, the vehicles’ “humongous batteries” should see them through 70 to 80 kilometers (43.5 to 50
miles) of average city use on one charge. If the three new Europe-wide models are anything like those that TTF already sells in The Netherlands, the charge time is 10 to 12 hours, although an optional quicker-charging Lithium battery is also available. The three-seat and cargo models are powered by a 72V motor for a top speed of 50 km/h (31 mph), while the stretched 6-seater "limotuck" tops out at 35 km/h (22 mph). The electric tuk tuks are expected to sell for €11,000 to €14,000 (US$15,110 to $19,231), and will require a Class B driver’s license.......
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New Report by Global Industry Analysts
World Auto Parts and Accessories Market to Reach US$1.4 Trillion by 2015 Europe and Asia-Pacific together accounts for a major share of the world market, as stated by the new market research report on Auto Parts and Accessories
According to New Report by Global Industry Analysts, Inc. GIA annou nces th e release of a comprehensive global report on Auto Parts and Accessories markets. Although the depressed automotive industry and economic activity restricted growth opportu nitie s for auto parts, reemphasis on pro duct innovations, government subsidies and stimulus packages doled out is expected revive the battered automotive industry and in the process the market for auto parts and accessories, which remains a critical component in the automotive supply value chain. In light of anticipated economy recovery in the medium term coupled with recovery in automotive production, and rebound in sales, global market for auto parts and accessories is projected to reach US$1.4 trillion by 2015. The automobile industry has been one of the worst hit industries by the recession. Demand for cars witnessed hurting declines exacerbating the alread y existing woes of excess production capacities. With vehicle sales nose-divin g and resulting in plant shutdowns, shockwaves that ripped through the automobile industry was faithfully transmitted to the auto parts and accessories sector. The value and volume sales of auto parts decreased steeper than total vehicle sales as consumers traded down from highcontent SUVs and trucks to low-content passenger cars. Global Tier-1 auto parts manufacturer s faced challenging business environment in 2009 as the credit crunch and financing shortfalls d ro ve s eve ra l c om p a nie s in to bankruptcy. Production cuts, continuous trimming of manufacturing capacities, and elimination of value added features
to produce low-cost vehicles, have all been popular short-term strategies to cope with the recession. Governments al so exte nded economic stimulus packages to keep automotive industry af lo a t . Wh il e t h e n u m b er of bankruptcies in the auto parts industry may stabilize in the year 2010, the next two-three years will continue to remain difficult. Given the still prevailing uncertainty over the expected time frame for recovery, a slow, and gradual recovery is forecasted. Europe and Asia-Pacific to ge ther accounts for a major share of the world market, as stated by the new market research report on Auto Parts and Accessories. Stabilizing global oil prices and incentives offered by governments like scrappage schemes i.e. Cash-forClunkers, for replacing old cars with new, will help increase car sales and revive the auto parts sector. Also, scheduled development and roll out of new veh i cle mod els, inc lu d ing alternative vehicles, will create a need to rep lenish inventories. Future st rategies to em er ge ab ove the turbulence will essentially be skewed towards focus on making higher-end auto parts for luxury cars in order to enhance technologies and widen product mix. Segment wise, Mechanical auto parts will continue to remain the largest market worldwide. Globally, electronic content in automobiles is increasing at a rapid rate, although the segmental growth dynamics differ for regional markets. Mature markets such as the US, Japan, and the West European nations are moving towards the next phase of evolution characterized by a rising demand for communications, navigation, and entertainment systems.
AUTOMARK | November-2010 39
Niche market segments with best growth prospects include power electronics, advanced navigation and collision avoidance systems, and entertainment electronics. In the developing world however, emphasis is on inclusion of basic electronics packages aimed at improving auto motiv e safety an d efficie ncy. The growing trend of incorporating additional electronic features into the automobiles will continue to peg up sales of electronic auto parts and accessories in the post recession period. Major players in the marketplace include ArvinMeritor, Inc., Dana Holding Corp., Delphi Corp., Denso Corpo ration, J oh ns o n Co n t r ol s I n c ., L e a r Corporation, Magna International Inc., Robert Bosch GmbH, TRW Automotive Ho l d i ng s Co r p ., a nd V i s te on Corporation. The research report titled "Auto Parts and Accessories: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections (in US$) for major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, and Rest of Europe), Asia-Pacific (Australia, China, India, South Korea, Thailand, and Rest of AsiaPacific), Latin America (Argentina, Braz il , Mexico, and Rest of Latin America), and Rest of World. Product segments analyzed include Mechanical, Electrical, Electronic and Exterior and Structural Markets.....
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Research Report - Review
Research Report on Chinese Passenger Vehicle Market, 2009-2010 The report has a very high reference value on understanding the current development of Chinese passenger car market, its competition situation, the market and development trends and grasping investment opportunities. A passenger car is a car used for carrying passengers, their carry-on baggage, and temporary items in its design and technical characteristics. It has no more than 9 seats, including the driver seat. It also can draw a trailer. Thepassenger car covers the car, the minibus, and the light bus with no more than 9 seats. The passenger car can be subdivided into the basic pas senger car (car), the multipurpose vehicle (MPV), the sports utility vehicl e (SUV), the special pas senger car an d the cross-type passenger car. In 2008, the growth rate of Chinese passenger car market was obviously slower. The total sales volume was 6.7556 million, with a YOY increase of 7.27%. The growth rate fell by 14.41% over the same period last year. Among the main varieties of passenger cars, only the growth rate of cross-type passenger cars grew a little higher over the last year. The sales volumes of basic passenger cars and SUVs fell sharply. The demand for MPVs declined for the first time since 2005 and its market was especially sluggish. In 2008, the sales volume of Chinese basic passenger cars was 5.0496 million, with a YOY increase of 6.78%. The growth rate dropped by 16.68% over the same period of 2007. The sales volume of MPVs was 197,400, with a YOY decrease of 12.56%. The sales volume of SUVs was 447,700, with a YOY increase of 25.28%. The growth rate was dropped
by 24.81% over 2007. The sales volume of cross-type passenger cars was 1.0636 million, with a YOY increase of 7.67%. The growth rate rose by 0.05% over 2007. In 2008, the entire automobile market was sluggish, but cross-type passenger cars kept growing steadily and became the only vehicle type with the rising growth rate. In 2008, the accumulated sales volumes were 1.0636 million, with a YOY increase of 7.67%, accounting for 15.47% of the total sales volume of Chinese passenger carsand accounting for 11.34% of the total sales volume of vehicles. Following cars and trucks, the sales volume of cross-type passenger cars ranked the third. In 2 008, am ong main Ch inese manufacturers producing cross-type passenger cars, SGMW was still in front. The total sales volume was 545,200, with a YOY increase of 17.48% and accounting for 51% of the total sales volume of cross-type passenger cars. The sales volumes of Chongqing Changan (excluding Nanjing Changan) and Hafei ranked the 2nd and the 3rd re spectively. However, their sales volumes decreased over the last year by 222,400 vehicles and 108,400 vehicles respectively. The sales declined by 6.90% and 11.45% YOY. In 2008, the 3 enterprises mentioned above sold 876,000 vehicles in all, accounting for 82% of the total sales volumes of Chinese
AUTOMARK | November-2010 40
cross-type passenger cars. By the end of 2008, 447,700 SUVs were sold out in China, with a YOY increase of 25.28%. The growth rate was dropped by 24.81% over 2007 and higher than that of the passenger car industry by 18.01%. Among the main varieties of SUVs, the varieties below 2.0 L sell best with 213,400 vehicles, accounting for 47.67% of the total SUV sales volume. The sales volume of varieties between 2.0L and 2.5 L was the second best, which was 180,900, accounting for 40.41% of the total SUV sales volume. The varieties over 2.5 L didn’t have a large proportion. They were only the supplements for SUV’s segment market. Th e sales volu me w as 5 3,4 00 , accounting for 11.93% of the total SUV sales volume. Among the main SUV brands, in recent years, the metropolitan type SUV variety is more and more popular among clients. In 2008, CRV of Honda alw ays dominated the market. Its total sales volume was 80,600, increased by 76.4% YOY. However, the demands for Hover and Tiggo which sold well in 2007 decreased sharply. Source: China Research and Intelligence In 2008, the MPV market was sluggish. The total sales volume was only 197,400, with a decline of 12.56% YOY. Among the main MPV varieties, each series of products larger than 1.6L declined in varying degrees. Among them, the
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In 2008, the sales volume of Chinese basic passenger cars was 5.0469 million vehicles, with a YOY increase of 6.78%. The growth rate was dropped by 16.68% over 2007. vehicles (1.6L<emissions?2.0L) had a sal es volume of 50,900 veh icles, decreased by 3.54% YOY. The vehicles (2.0L<emissions?2.5L) had a sales volume of 99,300 vehicles, decreased b y 16 .83 % YOY . Th e veh i c les (2.5L<emissions?3.0L) had a sales volume of 28,800 vehicles, decreased by 26.31% YOY. Most of the MPVs with larger emissions were official vehicles and commercial vehicles, which were affected by the macro environment most obviously. The MPV with emissions less than 1.6L had a stark contrast with the dominant varieties mentioned above. Its market performed well. It had a sales volume of 18,400 vehicles, with an increase of 28.11%YOY. The market share was increased by 2.98% YOY over the last year. In 2008, the sales volume of Chinese basic passenger cars was 5.0469 million vehicles, with a YOY increase of 6.78%. The growth rate was dropped by 16.68% over 2007. Affected by the fluctuation of oil prices, the consumption tax reform, the sluggish stock market and other advers e facto rs, consumer’s enthusiasm for buying vehicles with large emissions was lower than last year. According to the statistics, among all varieties with emissions larger than 1.6L, only the vehicles with emissions between 2.5L and 3.0L kept growing; other varieties decreased in various degrees. The vehicles with emissions larger than 3.0L dropped most obviously. What should be mentioned is that the varieties with emissions less than 1.6L still dominated the market. The sales volume was 3.1059 million, with an increase of 14.01% YOY. The occupancy was higher than the last year. Besides, the varieties with the emission less than 1L finished its decreasing trends in the previous year and increased slightly. The sales volume was 258,300, with a YOY increase of 2.60%. In January of 2009, China’s State Council approved the policy on the promotion of automotive consumption.
According to the policy, from January 20th to December 31st, 2009, the vehicle purchase tax of passenger carswith emissions less than 1.6L would be r educ ed from 10 % to 5 %. Th is informatio n w il l greatl y promote Chinese auto consumption market. From January to July, 2009, 5.3664 million Chinese passenger cars were sold out. The YOY increase was 30.91%. Among them, the sales volume of basic passenger cars was 3.8455 million, with a YOY increase of 26.98%. The MPV sales volume was 120,100, with a YOY decrease of 4.75%. The SU V sales volume was 310, 200, with a YOY increase of 18.07%. The sales volume of cross-type passenger cars was 1.0906 million, with a YOY increase of 59.90%. The report lays emphasis on analyzing the current development of Chinese passenger car market. It involves the segment sub- in dustry markets of passenger cars. At the same time, the report introduces the operational status o f w el l- kn ow n p a ss en g er c a r manufacturers in China. Chinese enterprises can learn some experience and find some potential investment opportunities in it. The report has a very high reference value on understanding the current development of Chinese passenger car market, its competition situation, the market and development tr ends an d grasping investm ent opportunities.
Through the report, readers can acquire more information:
-Production status of Chinese passenger car industry -Sales status of Chinese passenger car industry -Development of sub-industries of Chinese passenger car industry -Import and Export of Chinese passenger car industry -Main enterprises and competition status of Chinese passenger car industry -Influence of the global financial crisis on Chinese passenger car industry -Merger and reorganization of Chinese passenger car industry -Predictions on the development trends of Chinese passenger car industry
Following persons are suggested to buy the report: -Manufacturing enterprises of passenger cars -Manufacturers of auto parts -Trading enterprises of passenger cars -Enterprises of automotive services -Investors concerning Chinese passenger car industry -Research institutes concerning Chinese passenger car industry -Other persons concerning Chinese passenger car industry Source: China Research and Intelligence
AUTOMARK | November-2010 41
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International Automotive - Update
New Report by Global Industry Analysts
Global Automotive Aftermarket to Exceed US$329.8 Billion by 2015 Automotive aftermarket is a crucial link in t he automoti ve valu e ch ain. Automotive aftermarket worldwide is highly competitive, dynamic and technology -sav vy. Th e secto r has managed to keep pace with trends in the ever-changing automobile industry. The increasing number of cars on the road each year directly translates into mounting replacement demand for auto compo nents. The penchant of car owners to turn their cars from a simple transportation machine to an ultimate status symbol by installing a range of electronic gadgets and accessories has and will continue to remain a traditional gro wth driv er in the aftermarket. The automotive aftermarket, especially for parts and components is relatively cushioned as compared to the OEM automotive market, primarily because parts and components like fan belts, exhaust pipes and brake pads are less discretionary spends, since replacement of worn parts is a necessity if the vehicle needs to be kept running. Although resilient to a degree, the market is not completely recession proof, and the
hypothesis that reduced spends on new cars results in high er spends on maintaining old cars often crumbles when disposable personal income, and gross domestic product (GDP) dip sharply and over a prolonged period of time, as is the case in the current financial crisis led world economic recession. The conventional wisdom that industries like aftermarket hold up well during recession because people spend more time repairing and servicing their existing vehicles rather than purchase new cars has therefore apparently failed in the present context making this recession different from earlier recorded periods of economic slowdown. This is because the unusually pronounced length, depth and magnitude of the current recession sent ripples of unrest across the entire automotive value chain including the afte rmarket. Lesser availability of credit, rising levels of unemployment, reduction in disposable incomes and household wealth and falling consumer confidence have all resulted in postponement of aftermarket
purchases of components, parts, and accessories. Reduced frequency of maintenance and repair, especially expensive repairs, is a direct fallout of weakening employment rates, consumer income and spending power. Volatile fuel prices have also resulted in reducing the average number of vehicle miles traveled thus reducing the need for replacements of mechanical, exterior and structural products. It's a mixed bag of opportunities and c h all eng es for t he au t omot iv e aftermarket industry. The sizable drop in retail sales of new vehicles will result in a sharp reduction in the number of c a r s / v e h i c l e s c ov e r e d w i t h i n manufacturers' warranty periods thus promising to create increased demand for af termark et part replace ments during th e post recession period. However, reduced sales of new cars will also result in reduced demand for invehicle telematics, entertainment and other intelligent electronic aftermarket automotive technologies and products. ....
Bajaj Auto Has Record Quarterly Profit on Indian Motorcycle Sales, Exports Bajaj Auto Ltd., India’s second- largest motorcycle maker, said net income in the second quarter rose 69 percent to a record as economic growth boosted sales. Profit in the three months ended Sept. 30 rose to 6.82 billion rupees ($154 million), or 23.6 rupees a share, from 4.03 billion rupees, or 13.9 rupees, a year earlier, Bajaj said in a statement today. Sales at the Pune, India-based company increased 50 percent to 41.8 billion rupees. Baj aj A ut o’s dom estic sa les of motorcycles including the Pulsar and
Discover rose 53 percent in the quarter as economic expansion and stock market gains spurred spending in the world’s second-largest two wheeler market. The company expects to boost overall sales of two- and three-wheel vehicles 40 percent to 4 million in the year ending March 31. Bajaj rose as much as 2.7 percent to 1,560 rupees in Mumbai trading, and changed hands at 1,548.5 rupees at 1:50 p.m. The stock has gained 77 percent this year. India’s economy expanded 8.8 percent in the quarter ended in June, the fastest
AUTOMARK | November-2010 42
pace in 2 1/2 years. The nation’s benchmark Sensitive Index gained 16 percent this year, the best performer among the world’s 10 biggest stock markets. Bajaj’s total sales, including exports, surpassed 1 million vehicles in the fiscal seco nd quarter, according to the statement. Bajaj’s margin on earnin gs before int er est, t ax, d ep reci ati on and amortization was 20.7 percent in the quarter, according to the statement. It expects the margin to be 20 percent for the fiscal year.........
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Car / Light Vehicle Price List
SUZUKI
HONDA
Model MEHRAN VX 800cc MEHRAN VX (CNG) 800cc MEHRAN VXR MEHRAN VXR (CNG) ALTO VX 1000cc ALTO VX (CNG) ALTO VXR ALTO VXR (CNG) SUZUKI SWIFT 1.3L PETROL CULTUS VXR CULTUS VXR (CNG) CULTUS VXL CULTUS VXL (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) LIANA 1.3L LXI MT PETROL LIANA 1.3L LXI (CNG) LIANA 1.6L Eminent AT RAVI PICKUP ST308R VX RAVI PICKUP ST308R VX CNG BOLAN VAN VX Petrol BOLAN VAN VTR PETROL BOLAN VAN VTR GL PETROL BOLAN VAN VTR CNG SUZUKI VAN CARGO
Price Rs. 443,000 Rs. 489,000 Rs. 495,000 Rs. 539,000 Rs. 564,000 Rs. 622,000 Rs. 643,000 Rs. 692,000 Rs. 1058,000 Rs. 837,000 Rs. 878,000 Rs. 886,000 Rs. 933,000 Rs. 1,140,000 Rs. 1,210,000 Rs. 1,191,000 Rs. 1,255,000 Rs. 1,256,000 Rs. 463,000 Rs. 514,000 Rs. 512,000 Rs. 522,000 Rs. 582,000 Rs. 635,000 Rs. 497,000
CHEVROLET Model CHEVROLET JOY CNG CHEVROLET JOY Petrol
Price Rs. 569,000 Rs. 539,000
NISSAN CARS Model Sunny Ex-Saloon 1.6L M/T Sunny Ex-Saloon 1.6L CNG S. Super Saloon 1.6L M/T S. Super Saloon 1.6L CNG S. Super Saloon 1.6L A/T NISSAN S. S. Saloon 1.6L A/T CNG
Price Rs. 1,225,000 Rs. 1,305,000 Rs. 1,370,000 Rs. 1,450,000 Rs. 1,470,000 Rs. 1,550,000
NISSAN DIESEL TRUCKS Diesel Truck PKB 211 Diesel Truck PKD 411H Diesel Truck PKD 411E Diesel Truck PKD CD 411 Diesel Prime Mover CWM 454
Rs. 3,000,000 Rs. 4,150,000 Rs. 4,260,000 Rs. 4,600,000 Rs. 5,500,000
Model ACCORD ACCORD CR-V CITY I-VETC MT CITY I-VETC AT CIVIC VTI Mt CIVIC VTI Mt Oriel CIVIC VTI Pt CIVIC VTI Pt Oriel
HYUNDAI
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Price 5,866,000 5,316,000 1,324,000 1,454,000 1,659,000 1,834,000 1,779,000 1,909,000
TOYOTA COROLLA Model XLi 1.3 VVT-i GLI 1.3 VVT-i 2.OD Std. 2000cc 2.OD SALOON M/T 2.OD SAL SUNROOF ALTIS 1.8 VVTi M/T ALTIS 1.8 VVTi A/T
Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Price 1,354,000 1,479,000 1,420,000 1,769,000 1,859,000 1,740,000 1,830,000
CHERY QQ Model
Price
CHERY QQ Petrol CHERY QQ CNG
Rs. 588,000 Rs. 628,000
LAND ROVER
DAIHATSU Model Price CUORE CX Rs. 7,00,000 CX ECO (CNG) Rs. 7,45,000 CX AUTOMATIC Rs. 7,30,000
Model DEFENDER (90 S/WJEEP STD) (110 S/W A/C) (90 Soft Top)
Price Rs. 2,269,431 Rs. 2,545,000 Rs. 2,150,260
MASTER Model Price Master Highland M-260 (1,5T) Rs. 625,000 Master Forland Super M-330 (3T) Rs. 699,000 Rs. 930,000 Master Econg M-390 (3.5T) Master Grande M-410 (4.5T) Rs. 11,30,000 Master Rocket Faw (7.5T) Rs. 12,60,000 Master Feng EQ 1032 Strip Chassis Rs. 832,000 Master Feng EQ 1061 Strip Chassis Rs. 832,000
Price updated November’ 2010
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November-2010
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Automotive Achievement - Update
Super Power Motorcycles and Auto CNG Rickshaw has Win the 34th FPCCI Export Trophy
N. J. Autos Industries (Pvt) Ltd., assemblers of Super Power Motorcycles and Auto CNG Rickshaw have been awarded with 34th FPCCI Export Tro phy. Haji Muhammad Younus Pirani, Chairman of Pirani Group of Companies has received this award from Honorable President of Pakistan, Mr. Asif Ali Zardari at the Governor House on Karachi October 08, 2010. This is the first time in the 34 years of history of FPCCI Trophy Award that any Motorcycle and Auto CNG Rickshaw Assembler has been awarded with this Trophy. Export of Pakistani Brand Motorcycles has been increased extraordinary in the financial year 2009-2010
Due to its quality which meets the international standard and low price due to availability of R & D Support of US $50 per motorcycle. Pakistani Brand Motorcycle and Auto CNG Rickshaw are competing with country like China and India in the International Market due to its quality and low price. Pirani Group of Companies is engaged in a ssemb ling of S up er Pow er Motorcycles and Auto CNG Rickshaw and one of the market leaders in this sector. Another Group Company is engaged in the assembling of Tractors in the name of Euro F and they are going to launch Trucks by end of this year. Th is g rou p i s also engag ed i n manu fac tu ring of Sh eet Metal ,
al uminum an d Plastic Auto Parts , Motor cycl e Engines and Sh oc k Absorbers. Mr. Naveed Usman Pirani Director marketing of the Group has stated to us that there is lot of demand/potential in International Market for Pakistan Brand Automobile and if Government support for Auto Rickshaw and Auto parts export which is the dire need to compete the international prices. Government should also address the issues of valuation of Auto Rickshaw in Bangladesh through its Commercial Counselors . If these supports are available to this sector export of this sector will cross the export of textile sector........
SUPER POWER DELUXE PLUS Four stroke Auto Rickshaw Super Power Motorcycles AUTOMARK | November-2010 45
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Workshop by TDPA & CBI
CBI & TDAP Workshop on Light Engineering in Karachi and Lahore
A group photograph of participant in CBI & TDPA workshop with Chairman TDPA with the trainer in Karachi TDAP and CBI the Netherlands (Centre for the Promotion of Imports from Developing Countries) conducted a free workshop on Market Research for light engineering sector in Karachi Marriot from November 2-3, 2010, while in Lahore at Avari Hotel, on November 56, 2010. It provided exporters with knowledge, skills and tools to collect and analyze data regarding EU markets target groups, EU restriction to export/trade, trade channels and trends. The w or kshop edu cated exporters/manufacturers to trade to EU
or to expand their exports to EU. CBI is an agency of the Netherlands, Ministry of Foreign Affairs which contributes to the equitable economic development of the selected developing countries with economies in transition by providing services aimed at TDAP and CBI the Netherlands (Centre for the Promotion of Imports from Developing Countries) conducted a free workshop on Ma r ket Rese ar ch for l ig h t engineering sector in Karachi and Lahore. It provided exporters with knowledge, skills and tools to collect
and analyze data regarding EU markets target groups, EU restriction to export/trade, trade channels and trends. The w or kshop edu cated exporters/manufacturers to trade to EU or to expand their exports to EU. CBI is an agency of the Netherlands, Ministry of Foreign Affairs which contributes to the equitable economic development of the selected developing countries with economies in transition by providin g services aimed at....
Workshop on costing and pricing Centre for Promotion of Imports from Developing Countries, Netherlands, Ministry of Development Cooperation (CBI) and Skill Development Council, will jointly hold a two days workshop in Lahore on Costing and Pricing for SME engineering sector firms on December 13 & 14,2010. SME engineering sector companies are always under stress and lack skills to workout the cost of a sub-contract part
or sub assembly. They need to be correct with the "right price" while still ensuring that the deal is profitable for them. Often the owners lack these skills and also do not have staff, which is trained. With ever in cre as ing energy costs and skyÂŹrocketing raw material prices, many vendor companies are unable to convince their custo mers on the genuineness of their claims to price increase.
AUTOMARK | November-2010 46
T he Skill Develop ment Cou nc il Islamabad have identified this skill gap and together with the CBI have put together a course for owner managers and executives of Engineering Sector SMEs from Auto parts, machine b ui ld in g , p ip e an d p r o ce s s manufacturing sector and sub contract manufacturers.....
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Corporate Event - Update
1st Global CEO Excellence Awards-2010 kicks off L.R. Pak’s CEO, Mr. Alberto Barbieri got 3 awards which is the highest number of awards given to any one participant on 22nd October . Mr. Alberto won the awards in the following categories:
· Visionary CEO
· Oil & Gas Sector · Outstanding Performance
Despite facing several challenges on the d o m e st i c f r o n t , t h e p r es e n t democratically elected government has been committed to provide ample business opportunities in the country for attracting prospectiv e local and foreign investors. These views were expressed by Federal Minister for Petroleum & Natural Resou rces Naveed Qam ar w hile speaking as the Chief Guest at ‘the 1st Global CEO Excellence Awards-2010’ organized by Global Media Links in collaboration with Better Pakistan Forum here at a local hotel. Chairmen and MDs of 23 leadin g
companies were conferred 1st Global C EO Ex c ell enc e A w a rd s -20 10 . About the CEO Excellence Awards, the Federal Minister said the organizers of the award ceremony, surely deserve praise and appreciation for successfully gathering some top-notch professionals from corporate, business, industry, and ph il anthropy secto rs on a single platform. “I’m confident that 1st Global CEO Excellence Awards 2010, in the coming years, would provide a platform for assembling in greater numbers, major names of corporate, business, industry, and service sectors”. He added: “Such events would act as a bridge
AUTOMARK | November-2010 47
between government and business and industrial sectors whose support is vital for achieving the dream of a better Pakistan”. A distinctive feature of Award ceremony was the Innovative Leadership Summit. Leaders of 16 eminent organizations addressed the summit and shared their innovative ideas about leadership with the participants. Later on Naveed Qamar distributed awards among the 23 winners, which includes; Landi Renzo Pakistan / LR Pak (Pvt.) Ltd., Byco Petroleum Pakistan Limite d, Shell Pakis tan Ltd, Asia Petroleum Ltd., SKF Pakistan (Pvt.) Ltd.
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Exclusive Article on Environment
by Engr Khurram Mateen
Elements for Improving Environmental Performance and Compliance The EMS should establish procedures to ensure that all personnel (including employees, on-site service providers, and contractors) whose job responsibilities affect the ability to achieve the EMS objectives and targets
T here are 10 elements that are compatible with many EMS models in use, including ISO 14001. This list is not meant to be a new or competing system. Instead, it is intended to provide a simple way of checking whether existing or planned EMSs include elements to help users meet public policy needs of r e g ula t or y c om pli a nc e an d environmental performance that moves beyond compliance. Each user would make its own decision as to the extent to which it needs to augment its existing or planned EMS by incorporating these elements.
1. Environmental Policy: The EMS should be based upon a documented and clearly communicated policy. This policy should set out the organization’s commitment towards a cleaner environment.
2. Environmental Requirements and Voluntary Undertakings: The EMS should provide a means to identify, explain and communicate all environmental requirements and voluntary undertakings to all employees, o n-s it e ser v ic e p r ov id e r s an d
contractors, whose work could affect the organization’s ability to meet those r equ irements and undertakings. Environmental requirements include s ta tu t es, r eg u la ti ons, p erm i ts, enforceable agreements. Voluntary undertakings include any environmental principles or industry norms that an organization may choose to adopt.
3. Objectives and Targets: EMS establishes specific objectives and targets. The EMS should establish appropriate time frames to meet these objectives and targets. These should be d oc u m e nt e d a n d u p d a t ed a s environmental requirements change or as modifications occur in activities and structures within organizations in a manner that affects environmental performance.
4. Structure, Responsibility and Resources: The organization should ensure that it is equipped with sufficient personnel and oth er resource s to meet the objectives and targets of its EMS. The EMS should spell out procedures and steps for achieving those objectives and targets.
5. Operational Control: The EMS should identify and provide for the planning and management of all the organization’s operations an d activities with a view to achieving the
AUTOMARK | October-2010 48
EMS objectives and targets. For example, facility maintenance may be an important aspect in achieving a nd m ai ntai ning c o m p l i a nc e a n d e n h a n c i n g e nvironmental performance.
6 . C o r r e c t i ve a n d Preventive Action and Emergency Procedures: The organization, through its EMS, sh ou ld est ab lish a nd m aint ain documented procedures for preventing, detecting, in vestigating, promptly initiating corrective action, and reporting (both internally and externally, in accordance with th e country’s applicable laws) any occurrence that may affect the organization’s ability to achieve the EMS objectives and targets. Such measures should pay particular attention to incidents that may have an effect on compliance with environmental r eq u i r e m e nt s a s w e l l a s on environmental performance in regulated and non-regulated areas. Examples of such situations include equipment malfunctio ns, operator errors an d accidental releases of hazard ous subs tance s. The EMS should also establish documented procedures for mitigating any adverse impacts on the environment that may be associated with accidents or emergency situations
continued on next page
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Motorcycle Sector - Update
N.J. Auto Industries Launch new model-2011 of Super Power Motorcycle
environmental requirements and voluntary undertakings affecting the organization.
and for ensuring that similar incidents are avoided. The EMS should include procedures for tracking any preventive and corrective actions that are taken. If the environmental violation or incident resulted from a weakness in the system, the EMS should be updated and refined to minimize the likelihood of such problems recurring in the future. The EMS should also, to the extent possible, provide for the testing of emergency procedures.
7. Training, Awareness and Competence: The EMS should establish procedures to ensure that all personnel (including employees, on-site service providers, a nd c o n t r a c t o r s ) w h os e j o b responsibilities affect the abil ity to achieve the EMS objectives and targets, have been trained and are capable of carrying out these responsibilities. In particular, the training should highlight means to enhance the ability of personnel to ensure compliance with
8. Organizational Decision-making and Planning: The EMS should describe how these 10 elements will be integrated into the organization’s overall decision-making and planning, in particular, decisions on capital improvements, product and process design, training programs, and maintenance activities.
9. Document Control: The EMS should establish procedures to ensure maintenance of appropriate documentation relating to its objectives and targets and should also ensure that those records will be adequate for s ub seq uen t e va l uat i on a n d improvement of the operation of the EMS. For example, it should document the organization’s state of compliance with environmental requirements as well as environmental performance relating to non-regulated aspects. All records should be maintain ed in accordance with relevan t laws for document retention and protection.
AUTOMARK | October-2010 49
10. Continuous Evaluation and Improvement: The EMS should require perio dic, documented and objective auditing of the organization’s perf ormance in achieving these objectives and targets and on how well the EMS assists the org anizati on in ach ieving th ose objectives and targets. The goal of the review should be to allow management to bring about overall improvements. The scope and frequency of the review should de pe nd upon the size an d complexity of the organization and other factors that are determined relevant in eac h or ganizati on and country.
References: 1. ISO 14001 Environmental Certification Step by Step by A.J. Edwards
About Writer: Engr Khurram Mateen Assistant Director International Affairs & Trainings Standards Development Centre PSQCA,Ministry of Science & Technology Government of Pakistan - Lahore
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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST
70cc Motorcycle
Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22.
Product & Model Name Aan AI-70 Asia Hero AH-70 Bionic AS-70 Crown Lifan CRLF-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Guangta GT-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Metro Hi-Tech MR-70 New Asia NA-70
Retail Price Rs. 42,500/= Rs. 38,000/= Rs. 38,000/= Rs. 38,500/= Rs. 38,000/= Rs. 45,300/= Rs. 38,000/= Rs. 39,500/= Rs. 41,000/= Rs. 38,900/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 62,900/= Rs. 40,000/= Rs. 40,500/= Rs. 37,500/= Rs. 38,500/= Rs. 38,000/= Rs. 38,500/= Rs. 42,900/= Rs. 38,000/=
Sr./ No. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44.
Product & Model Name Pak Hero PH-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Star DL-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70
Retail Price Rs. 42,500/= Rs. 47,000/= Rs. 43,000/= Rs. 38,000/= Rs. 39,000/= Rs. 42,500/= Rs. 39,000/= Rs. 40,000/= Rs. 39,000/= Rs. 39,900/= Rs. 41,500/= Rs. 42,400/= Rs. 39,500/= Rs. 39,500/= Rs. 40,500/= Rs. 45,000/= Rs. 38,500/= Rs. 38,500/= Rs. 41,000/= Rs. 42,000/= Rs. 38,000/= Rs. 40,500/=
Price updated Oct-2010
AUTOMARK | November-2010 50
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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST
125cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.
Brand & Model Name Habib HB-125 Sitara ST-125 Ghani GI-125 Hero RF-125 Honda CG-125 STD Honda CG-125 DX Metro MR-125 Ravi Storm-125 Euro II
Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,500/= Rs. 75,000/= Rs. 86,500/= Rs. 108,900/= Rs. 55,500/= Rs. 78,000/=
Yamaha Motorcycle Product & Sr./ Model Name No. 1. Yamaha YD100 2. Yamana Yama4 3. Yamaha YB100 Royale
Retail Price Rs. 73,300/= Rs. 69,900/= Rs. 70,000/=
100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.
Brand &Model Name Asia Hero AH-100 Ghani GI-100 Habib HB-100 Honda CD-100 Sitara ST-100 Super Star SS-100 Super Power SP-100 Unique UD-100
Retail Price Rs. 46,000/= Rs. 45,500/= Rs. 55,000/= Rs. 70,900/= Rs. 51,000/= Rs. 46,000/= Rs. 45,500/= Rs. 52,000/=
Suzuki Motorcycle Sr./ No. 1. 2. 3. 4. 5.
Product & Model Name Suzuki Sprinter ECO Suzuki Sprinter STD. Suzuki GS-125 Suzuki GS-150 Suzuki Shogan
AUTOMARK | November-2010
51
Retail Price Rs. 67,000/= Rs. 70,000/= Rs. 79,900/= Rs. 86,000/= Rs. 76,000/=
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Iinternational Racing Track
Formula One Alonso delivers a win for Ferrari Fernand o Alonso p ut h is Wo rld Championship aspirations back on track by winning the Italian Grand Prix on Ferrari's home ground at Monza. It was the Spaniard's third victory of the season. It was far from an easy win, however, as Alonso had to spend the first part of the race behind Jenson Button before passing the McLaren driver with a brilliant final lap before his pit stop. Button made a great start and muscled his way past pole sitter Alonso at the first chicane, w hile Alonso and teammate Felipe Massa got a little close through the first right/left but emerged intact. At the second chicane, Lewis Hamilton tried to dive down the inside of Massa. There appeared to be no room and the two made contact, breaking Hamilton's front right suspension. He carried on but at the next fast righthander, the championship leader ran off the road and into the gravel tr ap. It was Hamilton's third retirement of the season but the first time that he's lost poi nt s wit h a ser ious m istake. The first part of the race turned into a game of cat and mouse with Button and Alonso running together and Massa keeping an eye on them from third place. It was clear that everything would depend on the pit stops. McLaren knew that drivers who had already switched to a new set of harder tires had gone faster with them and decided that it was better to stop Button first in an attempt to outfox Ferrari. Button pitted on lap 36, and with clear air in front, Alonso was finally able to do one lap at his true pace before coming in for his own new set of tires. When Alonso emerged, he'd done just enough to slip ahead of the McLaren, and while Button tried to get back in front at the first chicane, it was too late. Once in front, Alonso edged slightly
away from Button while Massa kept the pressure on in third. There was plenty of action going on behind the leaders. From fourth and sixth on the grid the Red Bulls of Mark Webber and Sebastian Vettel dropped to ninth and seventh, respectively, and from there they were always going to have a tough job to recover a decent helping of points. W eb b er t h en p as se d Mi c h a e l Schumacher and began chasing Vettel, final ly getting past him when the German mysteriously lost speed for one lap. It turned out that the brake pedal on Vettel's car was not returning fully, but after it righted itself, he got back up to speed. When everyone else pitted Vettel stayed out, and ultimately the team decided to leave his compulsory tire change to the start of the last lap in an attempt to propel him up the order. The plan worked even better than expected, and after climbing to fourth before coming in for hard tires on the 52nd of the 53 laps, he was able to
AUTOMARK | November-2010 52
emerge still in the same position. He just beat Nico Rosberg, who had a great race but lost precious seconds with a mistake in the closing laps. Webber finished sixth, having lost a lot of track time stuck behind the Williams of Nico Hulkenberg. When Webber finally got by, Hulkenberg was demoted to seventh, while Robert Kubica, Schumacher and Rubens Barrichello co mpleted the top 10. Despite only finishing sixth, Webber has regained the championship lead with 187 points to Hamilton's 182 points. Alonso has moved up to third with 166 points, Button has 165 points and Vettel has 163 points.
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