Sep 2016 by Mustafa Hanif

Generated by Foxit PDF Creator Â© Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Contents

September-2016

Company Article / Review Profile 14

43 44 46

Honda Bike Prices raised Car sales surge 19% to 180,000 units in FY-2015-16 Duty on auto parts increased by one percent Exclusive Article by AM Team CNG Sale in Liters in Pakistan is Economic Disaster Exclusive article on Energy Sector by Asif Masood

Before you can stop well, you need to go through some thoughts in the past (The Science of Motorcycle Braking) Exclusive article by Team PBC

Inside

News / Event 18 35 38 42

Hinopak Motors Limited 30th Anniversary Hinopak Motors Ltd., - Milestone

“KARACHI Youth Workforce Development Program “ at AMANTECH on Aug 17th, 2016 Career Counselling and Motivational Speech Freedom Drive Motor Club of Pakistan Independence Day Celebrations

PM launches Pak Navy's warship fleet tanker

News Updates

Corporate News - Glimpse

25 China-Pakistan Economic Corridor (CPEC) A monument of century A Review on CPEC

Auto Policy 2016-21 - An Analysis Exclusive written by Anwar Iqbal

Khalid Mushtaq Motors applies for approval of vehicle assembly plant in Pakistan

Price List 36

Vehicle price list

Motorcyclcle Prince List

Only accredited automotive magazine from Pakistan for IAA Commercial Vehicles Exhibition September 22-29, 2016 Hannover - Germany

DFML to revive manufacturing plant

32 37

Meezan Bank to provide Islamic finance to Yamaha motors cycles

Karachi Green Line bus project to be completed by Dec 2017 International Atuo News

Only accredited automotive magazine from Pakistan for automechanika Frankfurt 2016 from 13-17 September-2016 Frankfurt - Germany

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

September-2016 Pakistanâ&#x20AC;&#x2122;s premier magazine on automotive, engineering & energy sector Volume 09, Issue 09

Monthly

AUTOMARK Magazine International Editor-in-chief Muhammed Hanif Memon

Government optimistic about new entrants in auto sector

The Volkswagen, Europe's largest auto maker, will Imtiaz Rastgar likely to introduce one of its car brands in Pakistan Muhammad Shahzad CEO, Rastgar Group & soon. Good developments take times and go Advertising Manager CBI External Expert, steadily, since Volkswagen is keen to invest in Ex-chairman EDB Tahir Siddiqui Pakistan so entry of new players in Pakistani auto Islamabad market is a viable prospect and it will be Circulation Manager materialized soon. Engr. IHT Farooqui Shahzad Raza Chief Operating Officer Global action and events often drive the investment Karakoram Motors (pvt) Ltd. Graphic Designer perspectives of multinational conglomerates while Karachi Mustafa Hanif Pakistan has huge potential for international Salman Hanif investors and the other auto giants like Audi are Muhammad Yousuf Shaikh Founder & Chairman also showing interest in Pakistan's auto sector', Web Master Pakistan China Motorcycle Volkswagen is considering that what kinds of Industry Council Murtaza Hanif Karachi brands to introduce first in Pakistan with local partner. CONTRIBUTING IN Syed Mansoor Rizvi New auto policy is already proving to be fruitful THIS ISSUE Principal Officer M. Zahid Malik and country will have strong competition in auto M/s. CNH Services (Pvt) Ltd. Asif Masood market in the offing as incentives to new entrants Karachi Razi Nayyer with tax and duty benefits will yield. Mohammad Laman Nadeem Ahmed Salmi However, on the other hand , sources claimed that M. Hanif Memon Executive Director Operations Volkswagen and French car giant Renault raised M/s. Al-Haj Faw Motors (Pvt) Ltd. serious concerns over Pakistan' three years old Karachi used car import policy due to which international car makers are indecisive over joint venture investment in Pakistan. Sources said that Volkswagen has asked the Active Communications government of Pakistan to revisit its used car Mailling Address: import policy. They added that the manufacturers D-68, Block-9, Clifton, Karachi of German's Pride Volkswagen and French's dignity Tel : 021-32603371 Mobile: 0321-2203815 Renault were inclined to make joint ventures E-mail: automarkpk@gmail.com investment in Pakistan, but the used car policy website: www.automark.pk was the main reason to hinder the progress. AutoMark Canada Office It is important to mention here that, earlier this Managing Editor year; the German premium automobile brand Audi Mohammad Shahzad S.A.E. D.M.P. AG signed a mou with the BoI in order to start a 41 Jordana Drive feasibility study to assemble their vehicles in Markham (Toronto) Canada Sindh,Pakistan. L3S 3N8 In neighboring country, India, the Volkswagen is Phone: 905-472-8282 represented by five brands including SKODA, Email: automarkcanada@gmail.com Volkswagen, Audi, Porsche and Lamborghini while AutoMark REGD: MC-1330 the Volkswagen is globally represented by 12 Published every month by M. Hanif Memon brands from 7 European countries, 11 automotive The views expressed by contributing brands including Volkswagen passenger cars, Audi, writers and comments do not Bentley, Bugatti, Lamborghini, Porsche, Scania, necessarily reflect the views and SEAT, SKODA, Volkswagen Commercial Vehicles policies of the Monthly AutoMark (Volkswagen Nutzfahrzeuge) and MAN and 1 magazine's management motorcycle brand Ducati. Technical Editor

Advisors

Generated by Foxit PDF Creator Â© Foxit Software http://www.foxitsoftware.com For evaluation only.

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

An Exclusive Article by AM

Customs Team Visited China EDI, Imports of Auto Parts, CBU Units Surge, Customs still not settled Valuation Issue of Auto Parts Ministry of Industry Government of Pakistan

Association of Pakistan Motorcycle Assemblers (APMA) Chairman Mohammad Sabir Shaikh said the PBS data also has a category of parts and accessories imports, which rose to $337m in 2015-16 from $320m a year earlier. The combined imports of SKD/CKD units and parts and accessories (after market) come to $1.17 billion in 201516 compared to $1.09bn in 2014-15. He said hi-tech parts were not produced in Pakistan despite rising sales, especially of motorcycles. Rising imports of parts suggested local vendors were unable to meet demand and the industry was buying it from the commercial importers.

A delegation of Pakistan Customs headed by Chief Collector Appraisement South Abdul Rasheed Shaikh has visited China where they singed memorandum of understanding (MoU) for the implementation of electronic Data Interchange (EDI). The delegation headed by Abdul Rasheed Shaikh includes Director Reforms & Automation Dr. Fareed Iqbal Qureshi and Senior Managers of PRAL Chaudry Riaz and Azeem Afzal. Pakistan Customs had issued a tender for the installation of enterprise services buzz; M/s. Systems Limited would install the IBM software. Sources in FBR informed that, the EDI is passing through the testing phase. Additional Director Saadia Sheraz is supervising this testing of the system. The automation of I-Forms and data inter-change with China would eli minate und er- invoicing to a maximum extent. FBR has its focus on revision and streamlining of customs values as well as data interchange with the exporting country to eliminate under-invoicing. Sources said that the delegation of Pakistan Customs would also hold meetings with Customs of China to discuss issues pertaining to the trade related aspects under China-Pakistan Economic Corridor (CPEC). The import bill of parts and accessories used in assembling vehicles locally rose

8.5 per cent year-on-year to $841 million in the last fiscal year, even higher than $537m spent on imports of completely built-up (CBU) units. According to the Pakistan Bureau of Statistics (PBS), imports of completely knocked-down (CKD) and semiknocked-down (SKD) kits was $775m in the fiscal year 2014-15 and that of CBU was $406m. Rising imports of auto parts suggest better sales of locally assembled vehicles in the future as the industry imports kits and accessories based on advance booking orders and increased demand for vehicles. Except for tractors, the auto sector has performed well with rising sales of cars, heavy vehicles, bikes, light commercial vehicle (LCVs), etc. In the imports of auto parts including CKD’s and commercial imports of cars, motorcycles, LCV’s, heavy commercial vehicles and tractors massive mis declaration and under invoicing by the importers and assemblers of different categories and in different dry ports is one of the famous story in Tax evasion history of FBR in Pakistan. For example if the importer, importing safety helmets of bikes ranging between Pak Rs. 600 to Pak Rs. 4500 they are paying custom duty on under valuation ruling for motorcycle helmets at the rate of USD 2.55/Pc. No one checking the true value of safety helmets available in

www.automark.pk | September-2016 | Page 14

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

all big cities of Pakistan. At the same time, however, imports of used vehicles also skyrocketed in the fiscal year 2015-16, much to the chagrin of the local car industry. According to figures provided by local vendors, imports of used vehicles surged 67pc to 53,603 in 2015-16 from 32,074 units a year ago. In contrast, the PBS figures showed a jump of 33pc in imports. Higher import bill of parts and accessories suggests that the localization targets given by the government have not been met. But the industry claims to have achieved local content of up to 70pc in case of cars and LCVs, 90pc in motorcycles and tractors and 45pc in heavy vehicles. Sources said the industry is importing hi-tech parts not manufactured in Pakistan while auto-parts makers are also importing finished parts, castings, sub assemblies, sub components and raw material, mis using the SRO 655/I2006. “Moreover, imports of used cars have a negative impact on job creation in the industrial sector, industrial sources informed and adding that the auto industry provided direct and indirect jobs to almost one million people — including workers, technicians, engineers and management professionals — compared to around half million jobs created by used-car importers to many workshop mechanics, showroom staff, drivers, guards & many brokers of car markets in nine big cities of Pakistan under the schemes meant for overseas Pakistani nationals. Based on the import figures of $841m for CKD/SKDs and $537m for CBU units in FY16, a total of 216,000 units were

assembled, including cars and LCVs, the former Paapam chairman said. In contrast, imports of used cars were more than 50,000 units in same fiscal year, he said. Association of Pakistan Motorcycle As sembl er s (A PMA ) C hai rman Mohammad Sabir Shaikh said the PBS data also has a category of parts and accessories imports, which rose to $337m in 2015-16 from $320m a year earlier. The combined imports of SKD/CKD units and parts and accessories (after market) come to $1.17 billion in 2015-16 compared to $1.09bn in 201415. He said hi-tech parts were not produced in Pakistan despite rising sales, especially of motorcycles. Rising imports of parts suggested local vendors were unable to meet demand and the industry was buying it from the commercial importers, he said. “There is a need to form an independent audit team which can check the actual localization levels achieved by the industry in various auto segments,” he said, adding that despite high sales of bikes, nobody from Pakistan had made serious effort to set up a carburetor plant. “We are still an assembly-based industry as major parts come from abroad.” The Chairman Association of Pakistan Motorcycle Assemblers – APMA, Muhammad Sabir Shaikh said over all sale of bikes showed mixed performance. A total of 811,034 units of Honda bikes were sold in FY-2015-16 as compared to 653,193 units in FY-2014-15. This is the highest sales of Atlas Honda Ltd’s history of fifty years in Pakistan. Sale of Pak Suzuki Motor Co. Ltd’s bikes declined to 17,456 units in FY-2015-16 from 22,703 units in FY-2014-15. A newcomer Yamaha Motors Pakistan Ltd. managed to sell 16,109 units in FY2015-16. In Chinese Assemblers Pakistan’s largest Chinese bike maker United sold 262,773 units in FY-2015-16 as compared to 230,999 units in FY-2014-15. Total 81 Chinese based assemblers still are in production of replica of CD-70, 100 CC and CG125 CC and produced more than one million units of replica of Honda Models in the year of 2015-16. Locally-assembled car sales surged 20 percent to 210,000 units during FY2015-16 compared to 151,134 units in

Sabir Shaikh argue that if the government starts intervening in the auto policy from day one, the fate of new auto policy will not be different from the previous policy and new investors will stay away from Pakistan. "I feel imposition of one per cent additional duty on auto sector components is an attempt to discourage new investment in this sector," A " Greenfield Investment" for a period of five years for cars and LCVs and three years for prime-movers, buses and tricks and under category-B" Brownfield Investment " for a period of three years for assembly or manufacturing of the vehicles excluding agriculture tractors, 4stroke auto rickshaws, 3wheelers cargo loader, vehicles of PCT heading 87.11 (except motorcycle rickshaw of PCT heading 87.3020 and motorcycle rickshaw of PCT heading 87 11.3020). In Chinese Assemblers Pakistan’s largest Chinese bike maker United sold 262,773 units in FY-2015-16 as compared to 230,999 units in FY-2014-15. Total 81 Chinese based assemblers still are in production of replica of CD-70, 100 CC and CG125 CC and produced more than one million units of replica of Honda Models in the year of 2015-16. Locally-assembled car sales surged 20 percent to 210,000 units during FY-2015-16 compared to 151,134 units in FY-2014-15.

www.automark.pk | September-2016 | Page 15

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

An Exclusive Article by AM - continued

Due to tough competition between bike assemblers some assemblers are in a precarious position owing to which they are failing to pay the outstanding amount on received parts for production from their vendors. Consumers have failed to get any benefit from the huge lot of assemblers as they have been producing more than three decades old replica of CD-70, 70cc models mainly and due to competition they are decreasing the quality of products. FY-2014-15. Heavy vehicle segment also posted positive growth with sale of trucks rising to 5,550 units from 4,111 while total bus sales went up to 1,017 from 569 units. According to Sabir Shaikh, increase in car sales to Punjab Government’s Apna Rozgar Scheme of 50,000 units, full year impact of higher Corolla sales in addition to growing income levels and easy car financing by the commercial banks. He said rising economic activity and easing financing have also revived Heavy Commercial Vehicles. Though low interest rates, growing economic activity an d ri si n g c o ns u me r d em an d /purchasing power would keep providing support, he expected about 9% lower car sales next year due to absence of any subsidy on cars. Margins scenario has also become tough due to recent Japanese yen appreciation and feared rupee depreciation. Pak Suzuki Motor Company Ltd. also going to change its credit policy with sales dealers from 1st August 2016, which also hurt sale of Suzuki cars and bikes in current financial year. He said higher tractor sales are expected due to government’s focus towards agriculture and reviving tractor exports by Millat Tractors. Sabir said, besides Punjab’s Taxi Scheme for Suzuki Bolan and Suzuki Ravi --

improving law and order situation, macroeconomic growth and monetary easing leading to record low interest rates contributed towards growth in car segment. He said farmers had resumed regular purchases due to uncertainty in subsidy scheme. This year’s budget is full of incentives to the agriculture sector,

including reduction in urea prices and financing rates. This should help improve liquidity with farmers resulting in better off-take of tractors, he added. Federal Board of Revenue (FBR) has increased duty on auto parts by one percent over and above the duty structure approved in the Auto Development Policy (ADP) 2016-2021, the 1% increased in Custom Duty already implemented from July 2016 under SRO 693/2006. The government had approved a complete tariff structure for each component including parts and CBU in the ADP 2016-21. Duty on locally manufactured parts was reduced from 50 percent to 45 percent whereas 35 percent duty on parts remained unchanged. Duty on non-local parts was reduced in accordance with vehicle's category and 15-30 Regulatory Duty (RD) is already imposed on steel co m p o n e n t s u se d i n v eh i c l es manufacturing. Engineering Development Board (EDB), sources said, EDB has written a letter to the FBR, saying that "we have gone through the wordings of amended SROs 655(1)/2006, 656(1)/2006 and 693(1) 2006 and observed some deviation in customs duties approved by the ECC in ADP. EDB, has opposed one percent

Engineering Development Board (EDB), sources said, EDB has written a letter to the FBR, saying that "we have gone through the wordings of amended SROs 655(1)/2006, 656(1)/2006 and 693(1) 2006 and observed some deviation in customs duties approved by the ECC in ADP. EDB, has opposed one percent additional customs duty on the items approved under ADP (2016-21). EDB maintains that the proviso added to SROs reveal that category-A " Greenfield Investment" is applicable for five years for all vehicles but as per ADP( 2016-21) it will only be applied in case of cars and LCVs whereas for other vehicles i.e. trucks, buses and prime movers the Greenfield facility is for three years. www.automark.pk | September-2016 | Page 16

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Customs department increased valuation on motorcycle items or parts for local assemblers, which commercial importers import from China on lower valuations. Thus, smuggling increased manifold with 124 assemblers out of which 80 assemblers are active in the country now using smuggled parts in the motorcycle assembling industry additional customs duty on the items approved under ADP (2016-21). EDB maintains that the proviso added to SROs reveal that category-A " Greenfield Investment" is applicable for five years for all vehicles but as per ADP( 201621) it will only be applied in case of cars and LCVs whereas for other vehicles i.e. trucks, buses and prime movers the Greenfield facility is for three years. Accordingly, EDB submitted wording of revised proviso which is as follows: "provided further that in line with ADP 2016-21 approved by the ECC on March 8, 2016 duly notified by the Ministry of Industries and Production on June 2, 2016, the additional customs duty livable under the notification shall not be charged on sub-components and components, imported under category A " Greenfield Investment" for a period of five years for cars and LCVs and three years for prime-movers, buses and tricks and under category-B" Brownfield Investment " for a period of three years for assembly or manufacturing of the vehicles excluding agriculture tractors, 4-stroke auto rickshaws, 3wheelers cargo loader, vehicles of PCT heading 87.11 (except motorcycle rickshaw of PCT heading 87.3020 and motorcycle rickshaw of PCT heading 87 11.3020). Sabir Shaikh argue that if the government starts intervening in the auto policy from day one, the fate of new auto policy will not be different from the previous policy and new investors will stay away from Pakistan. "I feel imposition of one per cent additional duty on auto sector components is an attempt to discourage new investment in this sector," said Muhammad Sabir

Shaikh. Pakistan’s Motorcycle assemblers have a total installed capacity of 4 million motorcycles per annum but the production for the last fiscal year was record two million units. Due to tough competition between bike assemblers some assemblers are in a precarious position owing to which they are failing to pay the outstanding amount on received parts for production from their vendors. Consumers have failed to get any benefit from the huge lot of assemblers as they have been producing more than three decades old replica of CD-70, 70cc models mainly and due to competition they are decreasing the quality of products. He said there was no need to allow more bike assemblers as most of the existing Chinese assemblers are already facing stiff competition and only 10 units are enjoying relatively good sales as compared to their competitors. In order to revive the production of closed units, Sabir said the current government has to fix sale and production quota of every assembler keeping in view last five years production and sales. Otherwise the government must close approval of new units for assembling 70cc bikes. If the government did not experiment the above, the industry would fail to produce quality two wheelers. Atlas Honda despite being its high price and producing same 70cc as Chinese are producing is enjoying good sales due to high quality. The difference in valuation of the import of motorcycle parts between commercial importers and assemblers – valuation for assemblers is mostly higher – is

leading to an increase in the smuggling of motorcycle parts from China, industry officials said. Cust oms d epartment i ncreased valuation on motorcycle items or parts for local assemblers, which commercial importers import from China on lower valuations. Thus, smuggling increased manifold with 124 assemblers out of which 80 assemblers are active in the country now using smuggled parts in the motorcycle assembling industry. Commercial importers are those who impor t motorcycle parts for approximately 20 million motorcycles that are plying on the country’s roads. On the other hand, motorcycle assemblers import parts from China and then use them in the assembling industry. Industry officials say the increase in smuggling is denting the national exchequer, and can possibly reach up to Rs5 billion on an annual basis. With the rise in valuation for assemblers, industry officials estimate that the cost of a Chinese assembled motorcycled has risen by Rs3,000 to Rs6,000. This is why motorcycle assemblers are now shielding themselves by using smuggled parts in assembling. Pakistan produces around two million motorcycles every year (since last 5 years) out of which 1 million units are assembled with Chinese technology. Branded Japanese motorcycle makers fill the remaining market share. Atlas Honda is the largest motorcycle producer in Pakistan and assembling same design CD-70 and CG125 CC since last 25 years. All the Chinese based assemblers producing replica of Honda CD-70 and CG125 CC in half price of Atlas Honda.

Sabir said there was no need to allow more bike assemblers as most of the existing Chinese assemblers are already facing stiff competition and only 10 units are enjoying relatively good sales as compared to their competitors. In order to revive the production of closed units, Sabir said the current government has to fix sale and production quota of every assembler keeping in view last five years production and sales. Otherwise the government must close approval of new units for assembling 70cc bikes. www.automark.pk | September-2016 | Page 17

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Hinopak Motors Ltd., - Milestone

Hinopak Motors Limited 30th Anniversary Hinopak Motors Limited is celebrating its 30th anniversary in Pakistan this year.

Hinopak Motors Limited is celebrating its 30th anniversary in Pakistan this year. In this connection, series of customer get-togethers were arranged to share the last three glorious decades of Innovation, Excellence and Total Support.

www.automark.pk | September-2016 | Page 18

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

To commemorate this milestone, Hinopak announced a number of additional features in its model line-up. The 500 Series models now come with the comfort and luxury of airconditioned cabin as a standard feature. To meet and exceed the safety standards of the industry, the popular FG Series is now offered with the option of ABS (Anti-lock Braking system). Customer Satisfaction has been at the core and is one of Hinopak’s prime objectives. To achieve this objective, Hinopak regularly conducts Service Camps for the customers. In his statement, the company's Managing Director & CEO, Tatsuhei Mu to p ointed out at the 30th anniversary celebration in Lahore that the Pakistani bus and truck market has been growing by leaps and bounds. In these conditions, Mr. Muto reckons that it is important to provide top quality

products and services -- the kind that will contribute towards Pakistan's growth and customer satisfaction. Hinopak Motors attributes part of its success in the country to its products and after sales network and an army of clients, all of whom form its loyal customer base. "This milestone is due to the continued trust and confidence of our Pakistani

customers," the company's Deputy Managing Director, Mr. Kondo said. The entire focus of the company, according to Mr Kondo, is built around the idea of customer satisfaction and retention. Hinopak Customers congratulated the Hinopak team on achieving this momentous milestone and expressed their trust that Hinopak will continue its journey of steady growth and innovation to meet the industry demands of tomorrow. Senior Divisional Head, Sales and Marketing, Parts & Services Mr. Adil Shah has dedicated this year to Hinopak’s valued customers who according to him are the real source of Hino’s achievements and who made Hinopak possible to successfully retain the market leadership for the past three decades.

www.automark.pk | September-2016 | Page 19

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by M. Asif Masood

Monthly AutoMark International

CNG Sale in Liters in Pakistan is Economic Disaster The Ministry of Petroleum & Natural Resources along with All Pakistan CNG Association has decided to sell the CNG in liters instead of Kilos. It is important to know that why it has happened and why the OGRA has termed this sale is illegal.

Pakistan never had a natural gas surplus to the extent that Pakistan decided to adopt an energy policy that made natural gas as the prime energy source feeding into five highly critical sectors of national economy. Secondly the myth why the pricing of this precious indigenous resource was not based on the principle of scarcity and optimal utilization baffle experts. It was severely over allocated, underpriced and excessively misused. The apparent public private partnership as prevalent in the natural gas sector turns out to be a multilayered façade that cover up for the monopolistic control of the Ministry of Petroleum. The oligarchic control of all aspects of the sector ranged from appointments and p lacements, exploration & production licensing, distribution & t r ansmi ssi on , t ar if f an d p r ice determination etc. The gravity of the mismanagement can be realized through the fact that the overall economy slowed

d o w n (s t agn at i o n) . Th i s p o or governance of natural gas and power sector has now entered into stagflation, which is the worst-ever experienced by Pakistan. The Ministry of Petroleum & Natural Resources along with All Pakistan CNG Association has decided to sell the CNG in liters instead of Kilos. It is important to know that why it has happened and why the OGRA has termed this sale is illegal. The Liquefied Natural Gas (LNG) deal with Qatar is being widely described as one of the biggest scams of the Nawaz Sharif government mainly because of lack of transparency. The billions of dollars deal has been struck with Qatar. LNG is being supplied to the power sector, to fertilizer sector and to CNG sector. It is interesting to mention that the present government is in hurry to conclude all national & international agreements in which all ministries has to obtain formal approvals from federal cabinet and/or Economic Coordination Committee (ECC) of the Cabinet prior to finalization of any deal. It all started by the petroleum ministry through Inter-State Gas Systems (ISGS) who’s MD Mubeen Saulat is now under active investigation by NAB for illegal award of LNG terminal contract to Engro, which is owned by Seith Dawood who is an underhand partner of the so-called rulers of Pakistan.

What is Liquefied Natural Gas (LNG) Basics

Compressed natural gas is often confused with LNG (liquefied natural gas). While b ot h are st ored forms of natural gas, the key difference is that CNG is gas that Asif Masood is stored (as a gas) at high pressure, while LNG is stored at very low temperature, becoming liquid in the process. CNG has a lower cost of production and storage compared to LNG as it does not require an expensive cooling process and cryogenic tanks. CNG requires a much larger volume to store the same mass of gasoline or petrol and the use of very high pressures (3000 to 4000 psi, or 205 to 275 bar). LNG is principally used for transporting natural gas to markets, where it is regasified and distributed as pipeline natural gas. It can be used in natural gas vehicles, although it is more common to design vehicles to use compressed natural gas. It’s relatively high cost of production and the need to store it in expensive cryogenic tanks which have prevented its widespread use in commercial applications. LNG is produced by taking natural gas from a production field, removing impurities and liquefying the natural gas. In the liquefaction process, the gas is cooled to a temperature of 2600 F at ambient pressure. This condensed liquid form of natural gas takes up about 1/600th of the volume of natural gas at a stove burner tip. The LNG is loaded onto double-hulled ships which are used for

www.automark.pk | September-2016 | Page 20

continued on next page

Automotive News - Update

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Illegal import of cars Ministry yet to formulate new SOPs Commerce Ministry is yet to formulate new Standard Operating Procedures (SOPs) to bar illegal import of threeyear used cars under the garb of the schemes meant to facilitate overseas Pakistanis, well-informed sources told local press. The government had announced in the Auto Policy 2016-21 according to which Commerce Ministry would formulate SOPs to bar illegal use of the three schemes. Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) had also written a letter to the Secretary Commerce, Khizar Hayat Gondal, requesting to ensure a fair play in the auto sector. PAAPAM, which presumably also represents the local cars assemblers, as vendors, in its letter stated that it was common knowledge that the personal baggage, gift and transfer of residence schemes that were meant to facilitate overseas Pakistanis, have been grossly misused and circumvented to undertake de facto commercial import of used cars by unscrupulous dealers on passports of overseas Pakistanis. Until the Import Policy Order, 2004, there were adequate safeguards to ensure that the three schemes were not

misused and the domestic industry was not damaged from import of used vehicles. However, in the Import Policy Order 2005, some vested interests, supported by used cars importers' lobby were able to incorporate major changes in import conditions for used cars. Hence, floodgates were opened and domest ic auto and auto p arts manufacturing industry badly suffered in the last 10 years as four auto plants were forced to shut down. In 2015-16, due to sound economic policies of the incumbent government, the auto industry has crawled back to a production level of 216,000 vehicles, a level which was last witnessed in 20062007. In fact, if the special one-time production volume of 30,000 taxis was reduced the quantity sold by domestic industry was even lower than 20062007. However, import of used vehicles during 2015-16 registered a dramatic increase of 67 per cent over the previous year. During 2015-16, a total of 53,600 used vehicles have been imported under gross misuse of the three schemes as compared to 32,100 vehicles imported in 2014-15. This amounts to a business activity of Rs 75 billion per year entirely

undertaken in the informal sector or black economy. Chairman PAAAM, Mumshad Ali, argued that Pakistan was only one out of 40 automobile producing countries of the world in which de facto commercial import of used vehicles was undertaken under the garb of schemes for overseas Pakistanis. Import of used cars is the biggest impediment to bringing new investments in auto sector, either by new entrants or by current assemblers or by auto parts vendors. Even after the ADP announcement foreign investors were undecided as to why they should make long-term investments worth hundreds of millions of dollars in a country where they have to compete with over 50,000 used vehicles imported every year in blatant violation of the law, he added. According to the Association, quantity of 50,000 vehicles per year was enough to enable investment of around $600-700 million in two plants of a size equivalent to Honda Atlas Cars Pakistan which produces around 25,000 Honda vehicles per year.

both safety and insulating purposes. Once the ship arrives at the receiving port, the LNG is typically off-loaded into well-insulated storage tanks. Regasification is used to convert the LNG back into its gas form, which enters the domestic pipeline distribution system and is ultimately delivered to the enduser in our case the LNG is being enter in SSGC distribution system. In the recent statement the Oil and Gas Regulatory Authority (OGRA) has termed the sale of compressed natural gas (CNG) in liters as illegal. The OGRA orator announced that "The imported gas Re-gasified Liquefied Natural Gas (RLNG) is de-regulated and authority does not regulate its pricing. Actually, both the provinces are using the mixture of RNLG & CNG gases as they are being entered into SSGC distribution system. Elaborating that, "the natural gas is

produced indigenously & regulated so its price must be determined by the authority." In Sindh province, the sector is using the same mixed gas and Sindh Association has revert back the sale of gas in Kilos after direct intervention of OGRA Authority but Punjab is still selling CNG in liters. Taking cognizance of CNG Association's Punjab decision to sell CNG in liters instead of kilos is illegal. The OGRA has already communicated to the All Pakistan CNG Association that the maximum sale price of CNG as on 31-08-2015 is Rs 75.82 per kg for Khyber Pakhtunkhwa, Baluchistan and Potohar region and Rs 67.50 per kg for Sindh and Punjab and it is legally prevalent for all indigenous gas based CNG stations. Any CNG Station charging other than the OGRA notified rates is violating law and action shall be taken

against violators as per law. The OGRA has referred notification which had been issued under the relevant law and in pursuance of the decisions of Economic Coordination Committee of the Cabinet (ECC). "Therefore, all the CNG stations are legally obligated to sell (local gasbased) CNG in kilograms and not in liters." In this regard, OGRA has also advised the CNG Association to come up with proposals for authority's consideration as per law and in accordance with policy of t he go vern ment . Mor eov er, Consumers are skeptical over the new CNG pricing. They told this scribe that they are worried over the hike in CNG prices according to the new pricing system.

www.automark.pk | September-2016 | Page 21

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by Team PBC

Monthly AutoMark International

Before you can stop well, you need to go through some thoughts in the past (may be in your training)

The Science of Motorcycle Braking

You will start your search on this topic you will find many myths. Many of us still get a five-second class on how to operate a bike: "This is the throttle, this is the clutch and be careful, It's the front brake don’t ever touch this. It will . . . you. In Pakistan this has not been the old practice but our so called famous riders here, with so called 20 – 25 or 30 years experience are guiding youth same way. Whereas in many places like Malaysia, Singapore and alike, most riders know better when the front brake is involved. But here we find many sources sharing misinformation, even in the age of information age. From gossips to online forums all purporting to address the issues of thinki ng ridersf au lty techniques propagate at alarming speed. But can we try to do something good? Let’s try to correct two of these misconceptions and then share with you

a braking technique to implement for best results.

Thought No. 1: We should only use the Front Brake or Both? Though many so called famous riders are using old mind set & technique of start of 20th century by saying that rear brake is safe, so use only this one. We also few who come up with latest thoughts of a new world which is not known to us. Their words are like: "As most of the motorcycle's braking power

comes from the front brake, don't use the rear brake. Moreover, as the weight moves forward during heavy braking, the rear brake happens more likely to lock up and cause you to crash." On the other / right side, you can shorten your stopping distance with proper application of the rear brake. We agree that the weight of the motorcycle shifts forward, so less traction is available to the rear tire for braking, but in order to be a master of the use of your brakes, you need to use both of them for every time. So, how do you stop in the shortest distance possible? Can you answer? In simple words, you should achieve full application of both brakes without skidding. As you put more and more pressure on the front brake (up to the point of lockup), you will have more traction available to the front tire (for more braking) resulting in progressively less traction available to the rear. To keep from skidding the rear wheel, you will need to manage the rear the rear tyre / brake.

www.automark.pk | September-2016 | Page 22

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by Team PBC - continued

Thought No. 2: You know, you Should Only Brake with All Fingers on the Lever I watched a video where instructor said I shouldnot cover the front brake unless I am preparing to stop, and the only way to fully control the front brake is to use all four fingers." I mean full hand (definitely you can’t use your thumb here !) This is an important point that how to cover the front brake once they've moved beyond basic operational skills. We will discuss how in a moment. But, first, the why. As a rider rolls down the road, the time between when he notices a hazard that must be responded to and the moment of the actual physical response is known as Reaction Time. Common sense says that if the rider's fingers are already covering the front brake, the Reaction Time will be shorter than if he has his fingers around the throttle. Since we understand that the realities of motorcycling donot follow common sense in most of the cases, let me share something important. Head Protection Research Laboratory, a think tank formed by Dr. Harry Hurt (author of the famed Hurt Report in the early 1980s), conducted a study entitled Hand Position and Motorcycle Front Brake Response Time. The study concluded:

Monthly AutoMark International

"The human factors approach begins with education of motorcyclists to the value of covering the critical front brake. Training and practice in the effective use of the front brake and covering the brake lever has the potential to increase the numbers of motorcyclists who successfully avoid a critical violation of their right of way."

Covering the Front Brake Your comfort level in controlling the throttle and the front brake will play an important role in your ability to cover the lever. If you're unsure of your throttle and braking technique, take a class from a good instructor. While covering the front brake, you can try various numbers of fingers until you find out the best or what works best for you. Some people prefer to use all four fingers, while I generally use two while others giving me a firm grip on the throttle. Before you actually ride on the road, sit in your personal ground and practice rolling the throttle on and off while covering the brake. If you have trouble closing the throttle completely, release it and place your hand on the grip with your fingers resting on the brake lever. Then, wrap your fingers around the grip and try opening and closing the throttle. Next, roll off and apply the front brake. The motion should be as smooth as possible. If the lever traps your fingers

against the grip when you apply the brake, try adjusting the lever or bleeding the brake line. If the problem remains, you will need to cover the lever with four fingers. Once you feel comfortable closing the throttle and braking simultaneously, try it in a parking lot and then move to the road. When you start learning with this new throttle control and braking technique, don't be disheartened. Remember how long it took for releasing the clutch from a stop to become a good rider. You know, I spent two months riding with the front brake covered before it became automatic, haha Your investment will pay you every time you face a hazard-stop situation. Once you've mastered this technique, I am sure that you will find that you can also smooth your entry into corners by beginning to roll on the throttle while you are still releasing the brake. As you spend time focusing on the front brake, you should not forget that covering your rear brake will also shorten your reaction time. Always remember that “the beauty of motorcycling comes from refining your skills every time you ride. So, take a step the learning curve and learn to cover your front brake”. By: PBC Riding Academy, partner of Pakistan Bikers Club & AutoMark Magazine

Anwar Iqbal Joined Hands With

KHALID MUSHTAQ MOTORS (PVT) LTD. P eo p l e wh o a re connected with the auto industry know well about him. He is one person who has always been held in high esteem amongst t he automobile manufacturers, assemblers, importers, dealers and retailers in Pakistan. He is known and acclaimed to be the man behind the first ever introduction of Chinese motorcycles in Pakistan. He is the man who is responsible to present to the Pakistani commuters a motorcycle at a price, which no one earlier even

thought about. He is also the crusher of the price enigma that reigned the motorcycle market of Pakistan for more than two decades and last but not the least he is the man who broke the monopoly of two giant motorcycle manufacturers virtually making them take a price tag U-turn. As stated by our team, Anwar Iqbal is as well known within the Chinese auto sector as in Pakistan, because according to the reports collected by our team, it is very well endorsed in China that he has been the key figure to forge ahead very close business relations among the auto industries of China and Pakistan. Even

he introduced, first time Chinese trucks in Srilankan Market about fifteen years back. Now with his joining forces with the newly established Khalid Mushtaq Motors (Pvt) Ltd as Chief Operating Officer. Khalid Mushtaq Motors (Pvt) Ltd is developing his first automobile assembly plant in Nooriabad Industrial Estate. The plant is an state of art and is designed by Chinese experts. Let the commuters look forward to some news breaking events in the 4-wheeler sector, something he has yet to come forward with.

www.automark.pk | September-2016 | Page 23

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive News - Update

Pakistan’s top car maker Suzuki has some bad news for its customer Pak Suzuki Motor Company (PSMC) increase the prices of all its cars by 3% with effect from August 1. This price increase is the first of 2016 that effects every model being sold by the company. Earlier in the year, the company had announced a 2% increase in the price of the Suzuki Wagon R variant, Express Tribune reported. The company’s share price also increased 3% on Monday, finishing at Rs. 413.5. The benchmark-100 index also went up 0.69% in a bullish day for investors. Last week, Pak Suzuki announced its second-quarter (Apr-Jun 2016) results and posted a profit of Rs 488 million, down by a massive 67% from Rs 1.47 billion in the same quarter of last year. Sales fell 7% year on year to Rs 19 billion

in the second quarter of 2016 (2Q2016). This decline was mainly due to drop in volumetric sales after completion of the Apna Rozgar Taxi Scheme by the Punjab government. PSMC’s sales in the outgoing quarter were 26,011 units, a decline of 19% year on year (down 11% year on year to 56,192 units in first half of 2016 (1H2016). Excluding taxi units (Ravi and Bolan), sales were robust as they increased 23% year on year to 16,911 units in 2Q2016 (17% year on year to 34,864 units in 1H2016). Any adverse exchange rate movement, implementation of international safety standards, and reduction in import duty are key risks for the company, the report added.

EDB plans quality control centres The Engineering Development Board (EDB) is planning to set up quality testing centres for trucks, cars and motorcycles in major cities to protect consumers’ interest. EDB Chief Executive Officer Tariq Ejaz Chaudhry during a meeting with members and representatives of the auto industry at the Federation House on last month, also stated that the board is going to take over Pakistan Automotive Institute in Karachi and convert it into a state-of-the-art testing centre which will be the first of its kind in the country. He said that testing centres would be set up in Lahore and Islamabad with the help of Japanese automobile manufacturers, along with a liaison office in Karachi for quick coordination with the industry. “The working of the EDB has been streamlined in order to facilitate automotive and auto industry and protect consumers’ interest.” Mr Chaudhry was highly critical of the local assemblers because of their use of obsolete technology and manufacturing of old models. He said the government will never welcome any investment which does not introduce modern technology because consumers cannot be deprived of quality and safety.

Local assemblers are not bringing new models every 3 to 5 years despite making an agreement with the government, he added. He also asked why car imports from Japan were not being reduced when the same is also being assembled locally Japanese manufacturers. According to him, local assemblers have monopolised the market and this is against the interest of consumers. Most of the local car assemblers are marketing their brands on zero inventory which shows strong demand in the market, he maintained. He urged manufacturers to share their technology so the EDB can effectively control the quality and standard of products. Even today 70 to 90 per cent of automobiles and auto parts such as spark plugs, windscreens, fuel injectors are not being locally manufactured, he lamented. He disclosed that the Free Trade Agreement with China has been halted and negotiations for a second phase are going on which will also deal with issues like HS codes. Similarly, FTA with Iran, Turkey and regional countries were being reviewed. All this is being done because of under invoicing, he added.

Chinese interested in setting up auto unit in Punjab Pakistan The atmosphere is now conducive for investment and trade in Punjab by foreign investors in all development sectors where they will be provided foolproof security, said Provincial Minister for Labour and Human Resource Raja Ashfaq Sarwar. During a meeting with a six-member delegation of Chinese investors and industrialists, led by the director of renowned automobile manufacturer JAC Motors, Chen Zhi Qiang, matters of bilateral interest were discussed along with mutual promotion in different s ec t o rs i nc l ud i n g au t om o bi l e , infrastructure development, agriculture, livestock, energy and trade. The Chinese delegates expressed their keen interest in setting up an automobile manufact uring uni t in Pu njab. The minister welcomed the proposal and said the Punjab government had set up a number of industrial zones in the province with tax exemptions to encourage investment, particularly Chinese investment since both countries had a remarkable opportunity for economic, industrial and business growth under the China-Pakistan Economic Corridor (CPEC). H e sai d C PEC wo uld p rov i d e employment for the youth of Punjab and for which the government had drafted a plan of action for imparting latest skills training to about two million youth.

Motorcycle production up by 17% to reach 1.8nn In 11 months The production of motorcycles increased by 16.65 percent during the first eleven months of the fiscal year 2015-16 as compared to the production of the corresponding period of last year. The production of motorcycles stood at 1,873,491 units during July-May (201516) compared to the production of 1,606,075 units during July-May (201415), according to the data of Pakistan Bureau of Statistics. On year on year basis, the production of motorcycles increased by 11.35 percent during May 2016 as it went up to 181,358 units compared to the production of 162,868 units in May 2015...

www.automark.pk | September-2016 | Page 24

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive News - Update

DFML to revive manufacturing plant The Dewan Group has finalised an agreement with SsangYong Motor, the fourth largest automobile manufacturer in South Korea. Separately, its negotiations with Kia Motors, which is part of the Hyundai Motor Group, are at an advanced stage for the production of KIA range of vehicles in Pakistan. Dewan Farooque Motors Limited has applied for resuming vehicle production at its closed unit next month, a development that should spark competition and help the company take some market share away from the three dominant players. The company’s share rose 3.95% Wednesday, finishing at Rs19.21, with around 7.5 million shares changing hands. In a statement, the Engineering Development Board (EDB) commented that the Automotive Development Policy (ADP) 2016-21, prepared by the Ministry of Industries and Production, had started producing results. Encouraged by the incentives given for

the revival of closed units, Dewan Farooque Motors has applied for reviving its vehicle production plant and come up with a plan to produce Daehan, SsangYong and Kia vehicles. The application has been sent to the Board of Investment (BoI) and the EDB. The disclosure comes in the backdrop of a report that appeared about a month ago that talked about a massive surge of around 100% in the share price of Dewan Farooque Motors over the course of five months in the stock market. The company at the time denied that it had anything to do with the interest of investors in its shares and blamed stock traders for encouraging speculation and spreading rumours.

Khalid Mushtaq Motors applies for approval of vehicle assembly plant in Pakistan The automotive development policy 2016-21 had starting producing results. Encouraged by the incentives given for the establishment of new green field project, Khalid Mushtaq Motors come up with a plan to produce 1.5 ton commercial pickup in first phase. The application has been sent to the Board of Investment (BoI) and the Engineering Development Board (EDB). The company Chief Executive Dewan Ayub Khalid Madni while talking to our correspondent explained that we have already signed Joint Venture Agreement on 50:50 equity bases with Chinese auto

giant M/s. Changsha Foton Vehicle Technology Co, Ltd. It is further decided that all technical affairs of the upcoming plant shall be controlled and managed by Chinese equity partners. In this way company shall have access to the most advance auto technology. The company has ambitious plan to assemble the full range of commercial vehicles and passenger vans. The assembly plant is under construction in Nooriabad Industrial Estate, located in between Karachi - Hyderabad super highway and expected to be operational around March - 2017.-PR

Production plan The resumption of production by Dewan Farooque Motors will commence with the re-launch of Shehzore 1-ton single rear wheel truck along with Hyundai Powertrain in September 2016. These will be followed by Shehzore 1-ton truck with dual rear wheel in October 2016. Later, the company will introduce 1.5ton Shehzore truck and a 1,600cc engine capacity sport utility vehicle (SUV) in collaboration with Ssangyong China in 2017. It also plans to launch passenger cars, light commercial vehicles and SUV in collaboration with Kia Motors, Korea in the next three years. The Dewan Group has finalised an agreement with SsangYong Motor, the fourth largest automobile manufacturer in South Korea. Separately, its negotiations with Kia Motors, which is part of the Hyundai Motor Group, are at an advanced stage for the production of KIA range of vehicles in Pakistan. Kia’s entry into Pakistan depends on the availability of brownfield investment facility under the recently announced ADP. The EDB has started reviewing the request for the resumption of vehicle production by Dewan Farooque Motors and is likely to give its approval soon. With the re-entry of Dewan Group, competition in the domestic car market will intensify, particularly after the launch of Kia cars. Both the BoI and EDB welcomed the proposed investment plan and assured the company of their support in a meeting held on August 3. It was chaired by BoI Chairman Miftah Ismail and attended by the BoI secretary, EDB chief executive officer, executives of Dewan F a r o o q u e Mo t o r s an d s e n i o r government officials.

www.automark.pk | September-2016 | Page 25

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive News - Update

China's Shandong Chamber wants enhanced collaborations with KCCI Delegates call for collectively exploring new avenues of trade expansion and cooperation Executive Vice President and Secretary General of Shandong Chamber of Commerce China Wang Xuemin has said that the trade body wants to enhance collaborations with the Karachi Chamber of Commerce and Industry (KCCI) in order to promote businesses and pave the way for improved trade ties between the business communities of the two countries. Wang Xuemin, who led a 13-member Chinese delegation at a business-tobusiness meeting with their KCCI counterparts, added that they would like to have more such B2B meetings on a regular basis so that trade ties between the two countries could further be improved. Businessmen Group Vice Chairman and former KCCI president Tahir Khaliq, KCCI President Younus Muhammad Bashir, Senior Vice President Zia Ahmed Khan, Vice President Muhammad Naeem Sharif, former KCCI president Iftikhar Ahmed Vohra, KCCI Managing Committee members and other businessmen from different sectors attended the meeting. The Chinese delegation consisted of businessmen from numerous sectors, including footwear, jewellery, luggage, auto parts, chemicals, furniture, electrical appliances, raw material, household goods, infrastructure construction and railway track tools. Leader of the Chinese delegation also invited KCCI officials to visit the Shandong Chamber of Commerce in

order to further strengthen ties and bring the two chambers closer to each other, which would help in collectively exploring new avenues of trade expansion and cooperation. Earlier, KCCI President Younus Muhammad Bashir, in his welcome address, briefed the Chinese delegates on the strengths and functioning of the chamber. He said that the KCCI was not only the largest chamber of Pakistan but was also ranked amongst the top 10 chambers of the world in terms of membership base. He said that Karachi, which is the economic hub of Pakistan, offers profitable investment opportunities and added facilities for investment and joint ventures to the Chinese business community. The city, which contributes more than 65 percent revenue to the national exchequer, was an attractive place for Chinese investors, who can surely earn maximum profits by setting up their businesses or undertaking joint ventures here, he said. He was of the view that with improved situation of law and order and upon completion of the China-Pakistan Economic Corridor (CPEC) and Gwadar Port, this region was likely to attract su bst ant ial amount of fo rei gn investment. He said that the Chinese business community could also benefit from the situation by investing or undertaking joint ventures in Pakistan, particularly in Karachi.

Commenting on the Pakistan-China trade and economic relations, Younus Bashir noted that during 2015-16, Pakistan's exports to China stood at $1.903 billion, whereas the imports were recorded at $8.127 billion, indicating an overall trade volume of more than $10 billion, which needed to be enhanced. "It can only be done through collective efforts," he said. He firmly believed that the completion of Gwadar Port along with the CPEC would help generate economic activity in Pakistan and provide China's western regions, Afghanistan and Central Asian states an important access route to the sea. "Gwadar has strategic importance for China, as about 60 percent of its crude supply comes from Gulf countries that are in close proximity to Gwadar." He said that besides the $46 billion CPEC, projects like the upgrading of Karakoram Highway, Thar coal, power generation and civil nuclear cooperation in the energy sector were some of the other key plans reflecting the expanded economic cooperation. The KCCI president stressed that efforts must also be made to enhance linkages between the trade chambers of the two countries in order to further cement trade relations. The B2B session remained interactive, in which the Chinese delegates introduced their products and services, and took keen interests in a number of local products.

Chinese entrepreneurs visit Pakistan to explore investment opportunities A delegate of Chinese entrepreneurs visited Pakistan to explore different investment opportunities. During the visit, the delegate expressed keen interests to invest in different fields of science and technology, and manufacturing industries across Pakistan. The delegate visited Islamabad Chamber of Commerce and Industry (ICCI)

yesterday where ICCI President Atif Ikram Sheikh welcomed them and briefed them about different investment opportunities in Pakistan. The delegate indicated that the sound progress of Pakistanâ&#x20AC;&#x2122;s economy, and the success of the China-Pakistan Economic Corridor (CPEC) has developed keen interests among Chinese entrepreneurs to invest in Pakistan.

The 11-member Chinese delegation of entrepreneurs, being led by Shadong Jinan Bulinte Railway Company Chairman Zheng Gouliang, included entrepreneurs from different sectors including r ailway equipment manufacturing, glass production, mechanical and electrical industries, and construction machinery production.

www.automark.pk | September-2016 | Page 26

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive News - Update

Meezan Bank to provide Islamic finance to Yamaha motors cycles

Meezan Bank has recently signed a Memorandum of Understanding with Yamaha Motor Pakistan (Pvt) Ltd for providing financing for all models of Yamaha motorcycles. The financing will be provided under Meezan Bank's recently launched Bike Ijarah product under which the Bank provides financing facility to individuals for acquiring motorcycles in a Shariahcompliant manner. The MoU was signed by Ariful Islam, Deputy CEO Meezan Bank and ITO Yasushi Managing Director Yamaha Motor Pakistan at Meezan Bank's Head Office, Karachi. Speaking at the occasion, Ariful Islam said that Meezan Bank has a strong focus on consumer finance and provides financing for a wide range of consumer products including cars, generators, laptops and

consumer durables as well as housing finance. He said that the Bank's Bike Ijarah product, launched this year, has received excellent response from the market and the agreement with Yamaha Motors provides a very good addition to the range of vehicles that costumers can acquire through Meezan Bank. ITO Yasushi commented that an increased awareness of Islamic finance has led to a growing demand for Islamic consumer finance products and through this agreement both the parties shall be able to capture the potential market while also effectively meeting the needs of their customers. He added that Meezan Bank's agreement with Yamaha Motor is a step ahead towards facilitating Yamaha consumers with Meezan Bike Ijarah.-PR

TRANSPORT GIANT UBER OPERATING SOON IN KARACHI As per local media reports, Uber logistical setup for Karachi has been completed, whereas the company is in the process of hiring for a while. All set, Uber is expected to launch its operation in Karachi in the coming days. However, the exact date was not provided by the company. Uber entered Pakistan in early part of 2016, when it picked up Lahore in March to launch its services. Recently, the count ry has seen an i nf lux of international ride hailing apps, the Middle East based Careem is also

operating here. The controversial ride hailing app is bound to face competition from Careem, which already boosts a presence across three major Pakistani cities i.e. Karachi, Lahore and Islamabad. The competition however, would be good for the app customers. Uber was founded by Travis Kalanick and Garrett Camp in 2009 with the app released the following June. The company has witnesses international expansion , and by late 2015, it was estimated to be worth $62.5 billion.

Meezan Bank holds moot for vendors of Millat Tractor Ltd Meezan Bank organised a conference for the vendors of Millat Tractor Limited for promoting and creating awareness about the $50 million "Corporate Vend or & D ist ri buto r F inan ce Programme" launched in collaboration with Karandaaz Pakistan. This conference forms part of the tripartite agreement between Meezan Bank, Karandaaz Pakistan and Millat Tractor Limited signed in June this year, aiming to provide financial access to small and mid-size automotive part vendors in the country. Under this agreement, Millat Tractors, along with Meezan Bank and Karandaaz Pakistan, will provide credit to vendors and distributors with good growth potential and sound operating and credit history, thus facilitating the localisation of automotive parts and broad based employment growth in Pakistan. By virtue of this program, Millat's supply chain and distribution channels shall grow considerably. Meezan Bank was represented by Faisal Iqbal Regional Corporate Head, Faisal A Malik - Head of Supply Chain Finance Program and Ahmed Ali Siddiqui Head of Product Development & Shariah Compliance. Meezan Bank's team informed the participants about the various financing structures that can be used to meet their financing needs and also help them identify the steps needed to improve their eligibility for the programme. Speaking at the conference, Huma Khalid, Principal Credit -Karandaaz Pakistan, highlighted that in order to remain sustainable in the emerging trend of consolidation in supply chain, SMEs would need economies of scale and upgradation in technology. This program has specifically been designed to provide timely growth capital to SMEs to ensure their growth, increase the SME capital asset base, and improve employment generation. S M Irfan Aqueel, CEO Millat Tractors Limited greatly appreciated the efforts of the sponsors in launching this initiative and reaffirmed Millat Tractor's commitment to the programme. He said, "Easy access to finance will help SMEs develop and equip themselves to meet emerging challenges as well as capitalise on the opportunities available in the market. Millat takes pride in being a partner in this journey of creating an enabling environment for SMEs."-PR

www.automark.pk | September-2016 | Page 31

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Transportation News - Update

Monthly AutoMark International

Karachi Green Line bus project to be completed by Dec 2017 An 11.7kms portion of Green Line would be built above the ground level, while 10kms would be on the ground. For building the Green Line, pumping stations of the Karachi Water & Sewerage Board are being shifted from Board Office, Nazimabad, and at KDA Chowrangi in North Nazimabad area.

Sindh Governor Dr Ishratul Ebad Khan was informed on last week that the 21.7kilometre project of Green Line Bus Rapid Transit Service (BRTS) in the city would be completed by December 2017. He was briefed on progress on the Green Line and Orange Line routes by the chief ex ecutive office r of Karachi Infrastructure Development Company, Sualeh Ahmed Faruqui, at a meeting held at the Governor House. Prime Minister Nawaz Sharif had performed the ground breaking of Green Line route, which is a federally funded project, on 26 February at Annu Bahi Park in Nazimabad. Earlier, it was said that the over Rs16 billion project would be completed in one yearâ&#x20AC;&#x2122;s time. The officials concerned told the governor that 23 percent of work on the Nazimabad-to-Gurumnadir section of the Green Line project had been completed, 30 percent work on the

Nagan Chowrangi- to-Nazimabad portion had been also completed. Similarly, work is in progress on a fast pace from Surjani Town to Nagan Chowrangi. The governor was also informed that initially the length of Green Line was 18.4 kilometres, from Surjani Town to Gurumandir, but later its length was extended to 21.7kms till Municipal Park on MA Jinnah Road. An 11.7kms portion of Green Line would be built above the ground level, while 10kms would be on the ground. For building the Green Line, pumping stations of the Karachi Water & Sewerage Board are being shifted from Board Office, Nazimabad, and at KDA Chowrangi in North Nazimabad area. The capacity of those pumping stations would also be enhanced, while flyovers would be built at Five-Star Chowrangi, KDA Chowrangi and Sakhi Hassan

Chowrangi along the proposed route of the bus service, the officials said. In all seven corridors of BRTS have been identified to be built in the city as work on two of them i.e. Green Line and Orange Line is being done simultaneously. The passenger service stations of the BRTS would be equipped with the best of facilities for giving the maximum benefit to commuters, especially elderly citizens and children. The governor said that with the completion of the project, the residents of Karachi would be given modern mass transit facilities, which should be part and parcel of infrastructure of any upto-date metropolitan city in the world. Hundreds of thousands of people in Karachi would benefit from BRTS projects for their daily commutes, he said.

www.automark.pk | September-2016 | Page 32

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive News - Update

Carmakers get stay order against auto policy Two key players in the automobile industry – Indus Motor and Pak Suzuki Motor Company – have challenged the new auto policy and got a stay order from the Sindh High Court against its implementation, indicating they are not immediately inclined towards offering technologically improved and cheaper vehicles. Pak Suzuki Motor – the Pakistan arm of Japanese carmaker Suzuki – has a monopoly in the small car segment while the market for heavy-engine vehicles is split mostly between Honda Atlas Cars and Indus Motor – the makers of Toyota Corolla. Hyundai, Suzuki’s last competitor in the market, has not been producing vehicles since early 2014. The new auto policy, besides giving guidelines on timely delivery to customers, calls for the development and enforcement of safety regulations, compulsory installation of immobilisers

in vehicles to stop incidences of theft and putting in place a product recall system in line with global practices. The policy offers some incentives to new entrants for breaking the monopoly of existing car manufacturers. Consumer welfare is a key element of the policy announced by the government in March this year. According to officials aware of the development, Indus Motor was to install immobilisers in its XLI (basic) variants, Suzuki in Cultus and Mehran models and Honda Atlas Cars in the City variant. However, the carmakers have refused

Five new auto companies in Pakistan Board of Investment Chairman Dr Miftah Ismail said that five new auto companies inPakistan to manufacture cars will be introduced hence, reducing competition and prices for the consumers. He said that Automotive Development Policy was aimed towards providing cheaper cars to consumers with delivery on time. He said that government was making an organization to regulate the quality of car engines and also reduced taxes on imported cars, the buses and trucks’ spare parts have also been reduced. With people having the option of imported cars open to them, local manufacturers will also be motivated to produce quality cars. Pakistan Economic Forum Chairman Humayun Iqbal Shami said the

automotive policy is crucial to increasing competition in the local market as cars prices were reaching skies. He further added that the new policy bounds the company to deliver car within two weeks after the payment has been made. This would lead to competition and better quality as Pakistan has the capacity to locally manufacture automobiles. Economist Dr. Saboor Ghayur stated that the policy would enable new competitors to establish their units and effectively compete with the three wellentrenched assemblers. Export of products through this policy could help create many job opportunities, increasing country’s GDP, revenues and strengthening demand on large scale.

to install the immobilisers immediately, arguing it is not possible for them to complete the task in a short time. They require six months to one year as vehicle engines need to be changed for putting in p lace t he anti- theft d ev ice. “We need three to five months to receive the delivery of car engines and after that it will be possible for us to install the immobilisers,” the carmakers told the government, adding they would be able to install the device in new car models. According to the officials, the Suzuki management told the government that they were planning to replace Mehran cars with some other models, therefore, the immobilisers could not be made part of this model. However, the company agreed that it would introduce the immobilisers in the new models. Booking and delivery In an attempt to address complaints of delay in the delivery of locally assembled vehicles, the government has decided that initial payment at the time of booking should not be more than 50% of the cost of vehicle and the price and delivery schedule – not exceeding two months – must be finalised at that time. In case of delay, the company will be required to offer a discount at the rate of Kibor plus 2% on the date of delivery – a move aimed at shortening the time period. New auto policy – missing great opportunity Before the announcement of the policy, buyers were forced to pay a substantial amount, sometimes 100% of the total cost, for booking vehicles and then wait for a long time before delivery. If the price escalated in the meantime, the consumers were also required to pay the extra amount on the delivery date. This had helped the black market flourish where consumers, looking for prompt delivery, were forced to pay a premium.wever, the new auto policy carries varying measures aimed at safeguarding the interest of consumers. Curtsey:The Express Tribune

www.automark.pk | September-2016 | Page 33

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive News - Update

PAMA says new Auto Policy is fine but immobilisers can’t be installed right away The PAMA spokesperson further said that the OEMs’ operations currently have several thousand cars at various stages of production and supply chain. “It is impossible for them to immediately comply with this condition as these vehicles have already been partially assembled while the OEMs have a stock of kits The Pakistan Automotive Manufacturers Association (PAMA) has dispelled the impression that its members have challenged the recently announced Auto Policy of the government of Pakistan. PAMA members, as a matter of fact, have welcomed the Auto Policy and look forward to working as a team with the government and other stakeholders to achieve the objectives of the policy, a spokesperson for PAMA said. Re ga rd i n g t he i n s t al l at i o n o f immobilisers, the specification that has been made compulsory under the new Auto Policy, PAMA has told the government that it is beyond the control of the industry to implement the requirement forthwith due to the design modification that the installation would require in the vehicle. As an immediate solution to the problem that had popped up after July 2016 was not possible, the matter then had to be resolved by approaching the court of law for relief as the industry operations were feared to be coming to a halt. The industry went to the court to address the emerging situation, which was taken to mean that the PAMA members had challenged the Auto Policy. The PAMA spokesperson, however, has said that the industry fully supports the measures taken under the new Auto Policy and looks forward to working with the EDB for its implementation to optimise the benefits of the policy in the larger interest of the consumers and the country. The PAMA spokesperson pointed out that the immobiliser is an optional device to be installed in the vehicle just to prevent theft. However, there is no such device in the world that ensures foolproof security; therefore, it is a matter of choice which device is

considered useful. Making this mandatory would negate the option of choice and also impose a cost that will be borne by the buyers. Above all, duplicate keys of the factory installed immobilisers may run up the cost further and inconvenience customers. T he PA MA h as i nf o rm ed t h e government that installation of immobilisers should be linked with the introduction of new models or a minimum time frame be given for preparation as installation of a new device requires a technical process which takes advance planning with backward and forward linkages to the technology and supply chain; therefore, changes

cannot be introduced right away. The June 29th notification, however, had called for the installation to take place from July 1st. The PAMA spokesperson further said that the OEMs’ operations currently have several thousand cars at various stages of production and supply chain. “It is impossible for them to immediately comply with this condition as these vehicles have already been partially assembled while the OEMs have a stock of kits which they had already imported and have also already ordered and opened letters of credit for other kits, which are due to arrive soon without the provision of immobilisers.”

Auto part makers reject tractor scheme Pakistan Association of Automotive Parts & Accessories Manufacturers (Paapam) Chairman Mumshad Ali on last week said the Sindh government had o nc e ag ai n an no un ce d a ‘controversial’ tractor scheme on firstcome-first-served basis despite it being declared suspicious by the stakeholders as well as investigated by the National A cco u n t ab i li t y B ure au (NA B ). The scheme, which the provincial government announced through advertisements in newspapers a week ago, had also been announced a few months ago, which was challenged by NAB apparently on suspicion of being non-transparent, lacking merit and favo uri ng a manufacturer, t he

association said in a press release. NAB Sindh had reportedly barred the provincial government from processing the tractor scheme announced by Sindh Bank in April, it added. The Agricultural Engineering Sindh Director Hyderabad, in a letter, revealed that NAB Hyderabad visited the Agri cul ture Engi neeri ng Si nd h Directorate and asked to provide different documents to them. News reports suggest the tractor scheme lacked transparency as forms were allegedly distributed to sugar mills which would give them to farmers who in turn would purchase tractors from one company.

www.automark.pk | September-2016 | Page 34

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Career Counselling and Motivational Speech

Monthly AutoMark International

USAID speaker’s address “KARACHI Youth Workforce Development Program “ at AMANTECH on Aug 17th, 2016

Representatives from the United States Agency for International Development (USAID) visited the Aman Foundation recently to address the Aman Tech Alumni students under the Karachi Youth Workforce Development Project. Seven guest speakers from different walks of life shared their life experiences with young students, inspiring them to reach their maximum potential. Alumni were selected from the June 2015 and December 2015 batches, especially from the trades RAC,

Automobile, Electrical and Electronics. USAID has and continues to extend help and support to Aman Tech in its endeavour to transform the lives of Karachi's youth. The event started with the recitation of the verses from Holy Quran. Rizwan A hmed of A man Te ch g ave a motivational talk to students to dream big and achieve more. John Patrick Bracly, Deputy Director USAID Pakistan, Karachi office, shared valuable experiences from his extensive career

in social development. Guest speakers included Muhammad Hanif Memon, Editor-in-chief of Monthly Automark Magazine International, Farhan Hanif, CEO Crown Group, Abdul Khaliq, Director & Technical Adviser, Hudson Engineering, Nadeem R. Khan, President and Chief Executive of Intrapreneur and Fakhra Haq, CEO ACE International and Saqib Khan, USAID Portfolio Manager, was present at the occasion as well.

www.automark.pk | September-2016 | Page 35

Generated by Foxit PDF Creator Â© Foxit Software http://www.foxitsoftware.com For evaluation only.

Car / Light Vehicle Price List SUZUKI Ex Factory Price

Model Model

WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VX 800cc CNG MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS EFI VXR Euro II CULTUS EFI VXR CNG BOLAN VX EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2

Advance Tax

Rs. 1009,000 Rs. 25,000 Rs. 1049,000 Rs. 25,000 Rs. 10,000 Rs. 650,000 Rs. 10,000 Rs. 720,000 Rs. 10,000 Rs. 773,000 Rs. 1,327,000 Rs. 50,000 Rs. 1,463,000 Rs. 50,000 Rs. 1,124,000 Rs. 25,000 Rs. 1,199,000 Rs. 25,000 Rs. 725,000 Rs. 10,000 Rs. 696,000 Rs. 10,000 Rs. 667,000 Rs. 10,000

TOYOTA COROLLA

SUZUKI IMPORTED VEHICLES JIMMY 1328cc JLSX MT JIMMY 1328cc JLDX MT APV 1.5L GLX MT (Petrol) APV 1.5L GLX (CNG)

Rs. Rs. Rs. Rs.

Model XLI VVT-i 1.3L M/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis A/T CVT-I (1.8 ltr) GRANDE 1.8L S.R. M/T GRANDE 1.8L S.R. A/T FORTUNER 2.7L A/T Petrol

2142,000 2293,000 2,418,000 2,538,000

HONDA Model Price Honda Civic 10th Generation 1.8L Oriel Rs. 25,41,000/=* Rs. 29,11,000/=* Honda Civic 10th Generation 1.5L Turbo Honda Aspire Manual 1.3L Rs. 1,687,000 HYUNDAI Rs. 1,809,000 Honda Aspire Prosmatec 1.3L Honda City Manual 1300cc Rs. 1,537,000 Honda City Prosmatec 1300cc Rs. 1,678,000 Rs. 2,053,000 Honda Civic VTI Manual 1800cc Rs. 2,285,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,174,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,406,000 Honda Civic VTI Prosmatec SR (Oriel) * Ex-Factory prices, Advance income tax, freight & insurance will be added as per destination Price will be charge at the time of deliver what-so-ever

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

Price 1,672,500 1,817,500 1,892,500 2,047,500 2,147,500 2,272,500 2,307,500 2,457,500 5,085,500

Toyota Hilux Pickup 4x2 sc Model

Price

Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD

Rs. 2,063,000

Toyota Hilux Pickup 4x4 E Model

Price

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

TOYOTA VIGO DAIHATSU Model Model

Price Price

Rs. 3,324,500

FAW MOTORS Price

Model

Vigo Champ-V MT Rs. 3,598,500 FAW Carrier 1000cc (WHITE ,BLACK,STRONG BLUE & SILVER) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c Vigo Champ-G AT Rs. 3,798,500 Sirius S80 1300cc (WHITE ,BLACK,STRONG BLUE & SILVER) Sirius Grand 1500cc FAW V2 1300cc A/C EFI Petrol CBU

Monthly AutoMark Magazine - International

Rs. Rs. Rs. Rs. Rs.

744,000 849,000 899,000 1705,000 1885,000

Rs. 1049,000

Price updated Sep- 2016

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

International Automotive Industry - Update

Indian and Chinese firms form plastics auto part joint venture India’s Minda Corp. Ltd. and China’s Shandong Beiqi Hai Hua Automobile Parts Co. have formed a 50/50 joint venture to make plastic auto parts. The venture, Minda China Plastic Solutions Ltd., will initially focus on plastic oil pans and cylinder heads, and other functional, underhood and interior components. Potential customers include global automakers with production plants in China, including Volkwagen, BMW and Daimler. The venture also provides Noida-based Minda with production and marketing access to the China auto market, the companies said in a joint statement. The companies said the venture will start production in the last quarter of 2017. Shandong Beiqi Hai Hua is an automotive parts making subsidiary of Beijing Automotive Industry Holding Co. Ltd. (BAIC), a Beijing-based automaker. The partners are investing US$12.5 million in the venture. Minda has plastics manufacturing in Germany, the Czech Republic and Poland, and it is setting up a plant in Querétaro, Mexico. It employs around 14,000 and posted sales of $533 million in 2015.

VW, suppliers settle dispute after marathon talks

Volkswagen and two of its parts suppliers on Tuesday resolved a contract dispute that had hit output at more than half of the carmaker's German plants and threatened to undermine its recovery from a diesel emissions scandal. The suppliers were seeking compensation for lost revenue they said ran into tens of millions of euros after

Monthly AutoMark

Toyota throws more support behind fuel cell vehicles Fuel cells may be the future of clean transportation throughout the world Japanese automaker Toyota believes that hydrogen fuel cells are the longterm answer to the clean transportation question. Paul Van der Burgh, president and managing director of Toyota Great Britain, has expressed great faith in fuel cell technology. Fuel cells have long been used in various industries, but are relatively new to the transportation field. Nonetheless, these energy systems are highly efficient without sacrificing performance, making them a natural choice for clean vehicles, according to Van der Burgh. Fuel cell vehicles show a great deal of promise for Toyota

Toyota has already begun investing more heavily in hydrogen fuel cells. The company recently released its Mirai vehicle, which is equipped with an innovative fuel cell system. The Mirai, like other fuel cell vehicles, can travel more than 300 miles before needing to refuel, outperforming conventional electric vehicles. The vehicle also produces no harmful emissions, making it an attractive choice for those interested in clean transportation. Toyota has plans to continue supporting fuel cell vehicles well into the future, especially as the infrastructure needed to support these vehicles becomes more comprehensive.

FAW Xiali: plans to sold 15% shares of Tianjin FAW Toyota Motors to shareholders On the night of August 21th, FAW Xiali rele ased an A nn oun cement o f Suspension of Trading in relation to material asset restructuring by the Board, in which the company plans to sell 15% shares of Tianjin FAW Toyota Motors (TFTM) to its controlling shareholder, FAW Group. It’s expected that a total of RMB 2.5b will be obtained and increase FAW Xiali’s current profit. FAW Xiali still holds 15% shares of TFTM after the asset transfer. The trade is expected to form a material asset restructuring, and the company stock will face a suspension of trading from August 22th. Considering the company’s current production and sales scale, along with its difficulties in operation, FAW Xiali plans to raise needed capital by asset rest ructuring, t o focus on t he development of self-independent brand vehicles, launch new products in accordance with the “13th-five” plan,

put an end to the passive state of operation, and finally achieve long-term and steady developments. Announcement states that because product upgrading and structural adjustments lag behind auto market’s rapid change, the company faces a great drop in production and sales scale in economic car market, bringing operation loss. The company has adopted active measures to conduct R&D and upgrading of new products. It launched D60 at the end of 2014, promoting product quality, price and brand image greatly. The company will also produce new A70 this month. Besides, SUVs, hatchbacks, wagons, electric vehicles an d o ther ne w mo del s ar e in preparation. It’s expected that the product upgrading and structural adjustments will be basically completed in 2018, to increase product competitive strengths greatly.

VW cancelled a contract. The dispute affected about 28,000 workers at six of VW's 10 German factories on Monday when the automaker halted production of the topselling Golf and Passat models, as well as assembly of engines, gearboxes and emissions systems. VW said on Tuesday the suppliers had agreed to start delivering parts again

and the affected plants would gradually resume production. The new deal will see the suppliers working with VW for at least another six years, and VW will also be able to source part of its needs from other suppliers over that time, German paper Sueddeutsche Zeitung reported in an advance copy of an article to be published on Wednesday.

www.automark.pk | September-2016 | Page 37

Independence Day Celebrations

Monthly AutoMark International

Freedom Drive Motor Club of Pakistan Exquisite car and bike enthusiasts gathered up on 14th August 2016 at 10:00 am atKhayaban-i-Ittehad in Defence Housing Authority where around 20 exquisite cars, including classic cars, and 100 motorbikes started their Freedom Drive to the mausoleum of Quaid-e-Azam with brief stops on the way. President of the Motor Club of Pakistan, Razi Nayyer, leading the way in his dark green Jaguar XJ6 Series 1 1972, which was once owned by Zulfikar Ali Bhutto, said that this was their first Freedom Drive although they have also driven together from Karachi to Istanbul. “We formed our club with an aim to promote Pakistan’s safe and positive image for the world and our Drive To Turkey last year is bringing fruitful results in the shape of revival of tourism. 10-12 foreigners have started coming to Pakistan in response to our efforts through the drive, hence the goal is achieved” he said happily. “The Freedom Drive was

planned to revive and raise the level of patriotism among Pakistanis.” Nayyer said that they also have a Facebook page with thousands of followers from around Pakistan and the world. “Some 400 of our followers are foreigners learning about our healthy activities through the page. It is creating their interest and also bringing them here to Pakistan for visits,” he said. Among the bikers with heavy machines was also Mohammad IqbalGhangla

way from Multan. “My friend Bilal Hussain on his 150CC Suzuki joined me from Faisalabad and Syed Amjad from Sukkur on his 125CC Yamaha made us a power of three when we reached there,” he said.“I have also made several solo journeys, with the longest nonstop travel, of 27 hours, from Quetta to Naran, Lake SaifulMalook, Gilgit and Rawalpindi.” Faisal Malik, founder of “Throttle Shrottle” biker group said, “people from all walks of life need to contribute towards promoting our unity, faith and disciple among the nation – we intend to display this message of our beloved Quaid in our rides and drives.” “ T he r es p on s e o f p e op l e w as overwhelming despite the current law and order situation of the Country – We weren’t expecting such a great turnout” said Saqib Malik, Lead Art & Design Direction at Motor Club of Pakistan. Abdul Basit Khan, Director Marketing at the Motor Club of Pakistan expressed his gratitude to all the members who came early on a Sunday morning to join this drive. “We shall conduct this drive

riding his 660CC Yamaha Tenere, who had come to feature in the drive all the

every year to revive our national spirit – The Motor Club of Pakistan is a forum for local and international automobile enthusiasts and all our activities are aimed towards promoting a safe and positive image of our beloved Pakistan.”

www.automark.pk | September-2016 | Page 38

Automotive Sector - Updaste

Monthly AutoMark International

www.automark.pk | September-2016 | Page 39

MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ Product & Model Name No. 1. Crown CR-70 2. Hero RF-70 Model 2015 3. Hero Plus 90, 90cc 4. Honda CD-70 5. Honda CD Dream 6. Hi-Speed SR-70 7. Metro Premier+ 70cc 8. MS JAGUAR MS 70 Euro- II 9. MS JAGUAR MS 70 ( DREAM) 10. Ravi Premium R1 11. Road Prince bullet 12. Road Prince 70cc 13. United US 70 14. United Extreme 70

Retail Price Rs. 42,000/= Rs. 46,000/= Rs. 48,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,000/= Rs. 45,600/= Rs. 41,800/= Rs. 43,800/= Rs. 46,950/= Rs. 43,500/= Rs. 41,500/= Rs. 42,000/= Rs 44,500/=

125/150 cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

Brand & Model Name Crown CR-125 Hero Prince 125 Honda CG-125 std Euro II Honda CG-125 DX Metro MR-125 Regular Ravi Piaggio Storm 125 Road Prince Twister 125cc Road Prince WEGO 150cc

Super Star SS-125 Super Star SS-125 DLX United US-125 Euro 2 Unique US 125cc

Yamaha YBR-125cc

Retail Price Rs. 65,000/= Rs. 96,000/= Rs. 103,400/= Rs. 124,500/= Rs. 68,800/= Rs. 112,000/= Rs. 195,000/= Rs. 116,000/= Rs. 59,000/= Rs. 67,000/= Rs. 70,000/= Rs. 70,000/= Rs. 129,400/=

Sr./ No. 15. 16. 17. 18. 19. 20. 21.

Product & Model Name Ravi Hamsafar-70 Sitara GT-70 Super Star SS-70 Super Power SP-70 Super Power Delux Unique UD-70 Bionic AS-70

Retail Price Rs. 45,450/= Rs. 40,000/= Rs. 44,000/= Rs. 44,700/= Rs. 48,200/= Rs. 44,500/= Rs. 44,500/=

100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9.

Brand &Model Name Crown CR-100 Hero Splander Model 2015 Honda Pridor MS JAGUAR MS 100 Super Star SS-100 Super Power SP-100 Road Price 110cc United US-100 Euro 2 Unique UD-100

Retail Price Rs. 52,000/= Rs. 56,000/= Rs. 86,000/= Rs. 48,800/= Rs. 57,000/= Rs. 60,000/= Rs. 52,000/= Rs. 50,000/= Rs. 75,000/=

Suzuki Motorcycle Sr./ No. 1. 2. 3. 4. 5.

Product & Model Name SD110 Sprinter ECO

SD110 Raider GS-150 Euro-II GD 110 Euro-II GD 110s Euro-II

Retail Price Rs. 98,400/= Rs. 101,400/= Rs. 133,500/= Rs. 119,000/= Rs. 131,000/=

Suzuki Motorcycle (Heavy Bikes) Sr./ No. 1. 2. 3. 4.

Product & Model Name Inazuma GW 250 Intruder M800 Hayasuba GSX1300R Bandit GSF650SA

Retail Price Rs. 725,000/= Rs. 1,700,000/= Rs. 2,600,000/= Rs. 1,550,000/=

www.automark.pk | Sep-2016 | Page 40

Price update: Aug-2016

International Automotive Industry - Update

Tata Motors launches 2 new CVs in Indonesia Both vehicles have been designed for the modern commercial vehicle customer with superior performance, world-class cabins, high load carrying capacity and flexible body-load configurations. ndian automobile manufacturer Tata Motors has launched two newgeneration commercial vehicles in Indonesia, the Ultra 1012 light truck and the Xenon XT D-Cab 4x4 pick-up, at the 24th Gaikindo Indonesia International Auto Show (GIIAS) 2016. Commenting on the launch, Ravi Pi sharo dy , Execut iv e Di rector, Commercial Vehicles, Tata Motors said, "Both vehicles have been designed for the modern commercial vehicle customer with superior performance, world-class cabins, high load carrying capacity and flexible body-load configurations. Meant to further enhance our presence here, with these vehicles we are also committed to bringing the latest global technologies to the commercial vehicles market here in Indonesia."

Audi starts transmission production in China Audi is expanding its activities in China. Together with Volkswagen Automatic Transmission Tianjin (VWATJ), the premium brand is inaugurating a new transmission plant this Monday. The plant, in the northern China harbor city of Tianjin, will supply highly efficient 7speed S tronic transmissions for the new Audi A4 L and other locally produced models. A udi wi ll produ ce 240,000 transmissions annually at the new facility and will have a work force of over 1,000 at full capacity. And thanks to the modular production set-up, the company can double the plant’s capacity in a later phase. “With our first local transmission plant, we have brought another key Audi competence to China,” says Joachim Wedler, President of Audi China. “The transmission production in Tianjin marks a milestone in our localization strategy.” The factory is also particularly sustainable: It has, among other things, a heat recovery system and a roof that is designed to save power through the intelligent use of daylight...

Monthly AutoMark

Honda Motorcycle & Scooter India to double pre-owned two-wheeler outlets to 200 by 2018 Second largest two-wheeler player Honda Motorcycle & Scooter India (HMSI) is looking to double the number of its Best Deal outlets... Second largest two-wheeler player Honda Motorcycle & Scooter India (HMSI) is looking to double the number of its Best Deal outlets to 200 by the end of 2018 as the company sees huge potential in this space. The company, whose flagship scooter brand Activa last month became the largest selling two-wheeler in the country, opened the 100th Best Deal outlet here today. At present, the outlets, part of the regular Honda dealerships, are available in 70 cities across 19 states, Yadvinder Singh Guleria, Senior Vice President for Sales and Marketing at HMSI said. Best Deal is the first and the only organised retail set-up exclusively for certified Honda pre-owned twowheelers. Though the company buys any brand of two-wheelers, it will resell only Honda brands. Non-Honda brands are sold to Shriram Automall and CredR, Guleria told PTI. When asked the volume through the Best Deals, he said over the past three years, they have acquired 45,000 new customers through these pre-owned Honda sales. He further said that Honda gives sixmonth warranty and two free services to the models it sells through these

outlets, apart from all other after-sales support. On the direct benefit for the company, Guleria said apart from brand-building through customer retention and acquisition, incremental sales of spare parts lead to better commercial realisation. On the rationale for entering the preowned business, he said “As a pioneer, Honda introduced the concept of certified pre-owned outlets under the Best Deal label, which allows us to create more touch-points of interacting with customers and also to tap into the huge potential that the pre-owned twowheeler market offers.” “Our experience shows that the preowned industry is evolving very fast. The replacement cycle for two-wheelers has come down from seven-eight years to three to five years in the past decade alone,” he added. When asked about the potential for this business, Guleria said they see immense scope in the pre-owned two-wheeler retail and therefore decided to aggressively scale up the business. He said Honda globally promotes preowned sales and that India is not the only or its first market. Through Best Deals, those who want to exchange their existing two-wheelers of any make for a brand new Honda model, or those customers who want to buy a refurbished and certified pre-owned Honda model.

Toyota now owns Light vehicle manufacturer daihatsu Japan's 10 -year b est sell ing manufacturer of light vehicles Daihatsu Motor Co. became a wholly owned unit of Toyota Motor Corp. Toyota, which previously owned about 51 percent of Daihatsu, confirmed on Monday that it has acquired the rest of Daihatsu shares through an equity swap. Daihatsu shares have been delisted from the Tokyo Stock Exchange since July 27, but the brand of Daihatsu will continue to exist. Toyota, facing fierce competition in Asian market, hopes to acquire a competitive edge in subcompact car business, especially in the emerging

market , through strengt heni ng cooperation with Daihatsu. Daihatsu, meanwhile, hopes to get more resources and expertise from Toyota by becoming a wholly owned unit of the company instead of just a subsidiary. Daihatsu is one of the oldest Japanese car manufacturers with roots that trace back as far as 1907. It became a subsidiary of Toyota in 1998. Daihatsu is well known for its smaller models and off-road vehicles and has been Japan’s best selling manufacturer of light vehicles for 10 consecutive years since 2006. Enditem Source: Xinhua/News Ghana

www.automark.pk | September-2016 | Page 41

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Launching Ceremony

PM launches Pak Navy's warship fleet tanker

Prime Minister Nawaz Sharif has inaugurated the multi-task Navy Warship Fleet Tanker in Shipyard during his day-long visit to the economic hub of the country, reported Friday. The navy tanker that PM Nawaz Sharif has inaugurated has been built with the cooperation of Turkey. The design of the 17,000-tonne heavy fleet tanker was prepared by STM Turkey, but built in Karachi Shipyard. While addressing the inaugural ceremony, Nawaz Sharif said that it gave him immense pleasure to launch the biggest tanker in the history of Shipyard. The premier congratulated Pakistan N avy , S MT T urk ey an d ot he r

stakeholders involved in the successful venture. He hailed the project as a milestone in friendship of Pakistan and Turkey. PM Nawaz said that successful completion of the project denotes Pakistan s self sufficiency in defense sector. The nation owes the overall progress to sea-bound institutions as at least 95 percent of country s trade is prodcued there, he said. Nawaz Sharif said that the country has enough resources for vast development and projects such as China-Pakistan Economic Corridor were game changers that would welcome a better era. Strategically, the country has immense

advantage and the government is committed to exploit the angle, the premier said. He appreciated the fact that several projects of Shipyard up gradation were completed in the past. Before concluding his speech the premier once again acknowleged the support and cooperation of Turkish SMT and the Ministry of Defense Production. Before the address, the PM landed at Faisal Airbase where Governor Dr Ishratul Ibad and Chief Minister Syed Murad Ali Shah welcomed him. The premier will participate in a ceremony organised by National Bank of Pakistan after Friday prayers during his day long visit to Karachi.

www.automark.pk | September-2016 | Page 42

Generated by Foxit PDF Creator ÂŠ Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive Sector - Updaste

Monthly AutoMark International

Corporate News - Glimpses

Italian plant machinery manufacturer signs a joint venture agreement with Pakistani company on 2nd Aug-2016

Meezan Bank signs MoU with Yamaha Motor

www.automark.pk | September-2016 | Page 43

Motorcycles Safety Helmets - Customs Valuation

Pakistan Customs issued new valuation rates for import of motorcycle safety helmets. The Director General Customs Valuation has issued new custom values on August 25, 2016 after three years for import of motorcycle helmets ranging between $2.60 to $9.60 per piece of Chinese and other countries origin based on the prevailing prices in world markets. Customs values for bike helmets (half and full face and cross shaped) specified shall be assessed to duty/taxes of above customs values. The department claims to have initiated an exercise for determining customs values for bike helmets and meetings in this regards were held with stakeholders August 16 and August 25. The stakeholders were asked to submit various documents before the meeting which included invoices of imports made during the last three months showing factual value, website emails and addresses of known foreign manufacturers of the item to ascertain current value, copies of contracts made/LCs opened during the last three months showing value of the items and copies of sales tax invoices issued during the last four months showing the difference in price (excluding duty and taxes) to substantiate that the benefit of difference in price is passed to the local buyers. However, the Director General did not receive any documents and not even after the said scheduled meetings. The Customs said valuation methods given in Section 25 of the Customs Act

1969 were followed. Transactions value method provided in Section 25 (I) was found inapplicable because the requisite information was not available. Identical/ similar goods value methods provided in Section 25 (5) and (6) were also not found helpful in determination of values due to wide variation in values. Consequently market enquiries as envisaged under Section 25(7) of the Customs Act 1969, were conducted and customs values of bike helmets were determined under Section (7) of the Customs Act 1969. In cases where declared transactions values are higher than the customs values determined in this ruling, the assessing officers shall apply those values in terms of Sub Section (i) of Section 25 of the Customs Act 1969. In case of consignments imported by air, the assessing officers shall take into account the differential between air freight and sea freight while applying the customs values determined in the ruling. The values determined in the ruling shall

China-Pakistan Economic Corridor (CPEC) A monument of century Peoples Republic of China, the 2nd largest economy in the world, has taken a new positive step of sharing the fruits of its amazing developments with other countries of Central Asia, South East Asia, West Asia, and Africa by promoting a mega brilliant futuristic initiative “ONE BELT & ONE ROAD” (OBOR). changer. Besides transforming Pakistan into a regional economic, trade and energy hub it would aggregate the strength of the economies of the region

in t o a w i n- wi n fo r c ol l ect i v e development thus shaping common destiny of the peoples of the region. The government, arm forces and people of Pakistan have always expressed their unwavering support to make CPEC a success. It will be a historic and extremely important opportunity to overcome the impediments to our progress and development. Political parties and provincial governments are

continued on next page

be the applicable customs value for assessment of subject imported goods until and unless it is rescinded or revised by the competent authority. A revision petition may be filed against the ruling within 30 days from the date of issue of the ruling. Market sources said that previous ruling on full face helmet of China was $2.53 per piece while valuation of half face helmet was $2.23. They said the import duty on helmet ranges between 16-20 per cent, additional customs duty of one per cent, 17 per cent sales tax, additional three per cent sales tax and six to nine per cent income tax. Considering the valuation ruling of $2.80 of a Chinese helmet at 16pc ST, one per cent additional customs duty, three per cent additional sales tax and six per cent income tax, the cost of import for a helmet comes to Rs 440. On the contrary, full face helmet of Chinese origin sells between Rs 800 to Rs 4,000 while half face helmet sells between Rs 750 to Rs 3,500. Some branded cross shape helmet is priced Rs 5,000. Akbar Market, hub of helmet and bikes, also has Indian helmets with warranty of three years at a price ranging between Rs 3,000-5,000. Sub standard locally produced helmets are available at Rs 500. On some FTA approved companies /importers, the rate of customs duty is five per cent. Chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Shaikh said it is surprising that the market has Indian helmet and it is not clear whether these helmets are officially allowed or finding way through illegal channels. He said it is also unclear whether imports of helmets from China at same of European standards or average quality is arriving into Pakistan. He said customs department does not have any study regarding category of helmets arriving from China as certified helmets are already very costly in China starting from minimum $10 to $35 per piece and sub standard helmets are priced between $4 to $13 per piece.

www.automark.pk | September-2016 | Page 44

vying with each other to get ever larger share of CPEC projects. This intra party political play is sometimes given out as a controversy over the routes. But in essence it is not a critique of CPEC. There is complete unanimity among all political parties on the importance of CPEC. The Governments of Pakistan and China have affirmed that this One Corridor will have several passages and all routes will be worked. It is matter of happiness and satisfaction that the excellent relations between Pakistan and China in all important fields are further strengthening with the passage of time as rightly described by the Chinese Premier Li Keqiang who during his visit to Pakistan in May 2013 said ‘’the tree of China-Pakistan friendship’’ was planted decades ago, nurtured by successive leaders and ‘’is now exuberant with abundant fruits’’. Premier Li Keqiang was among the first advocates of the project. The idea of Economic Corridor was first proposed by him during his visit to Pakistan in May 2013. About benefit and importance of the project, President Mamnoon Hussain once predicted that the CPAC will be a “Monument of the Century” It is a strategically significant and comprehensive concept which will benefit not only the people of Pakistan and China, but also billions of people living in the entire region. To transform the vision and concept into reality the President of Peoples Republic of China Xi Jinping paid a state visit to Pakistan

in April, 2015. This was the first visit by a Chinese head of state in nine year. During his extremely important visit 51 MoUs were signed in diverse sectors of bilateral relations. Interestingly more than 30 of them were related to the Pakistan- China Economic Corridor. Talking about the Pakistan China Economic corridor, Prime Minister Muhammad Nawaz Sharif Nawaz Sharif who is famous for hi s visio n, commitment, and pragmatism said: “This corridor will benefit all provinces and areas in Pakistan, and transform our country into a regional hub and pivot f or commerce and investment . It will also enable China to create a shorter and cheaper route for trade and investment in south, central and west Asia, and the Middle East and Africa. This corridor will become a symbol for peace and prosperity. CPEC is considered economically imperative to Pakistan’s economic growth. Moody’s investor Service has described the project as a ‘credit positive’ In a note issued to clients Moody said: “The government’s support for the implementation of China-Pakistan Economic Corridor (CPEC) is credit positive for Pakistan because it will spur investment activity, boost bilateral trade flows and help ease the country’s growing energy shortages,”. The agency acknowledged that much of the project’s key benefits would not materialize until 2017, but stated that it believes at least some of the benefits from the economic corridor would likely

begin accruing even before then. Pakistan and China have enjoyed unmatched diplomatic and strategic relations since late 1950s. Regardless of a strong understanding on diplomatic levels, economic relations have remained below their actual potential. It is believed that conceived PakistanChina Economic Corridor project will fill the gap. CPEC will be major achievement towards the goal of socioeconomic development of billions of people living in this region. The corridor will serve as a major opening for trade between China and countries of the Middle East and Africa in particular oil from the Middle East could be offloaded at Gwardar, which is located just outside the mouth of the Persian Gulf, and will be transported to China through Pakistan. Such a link would not only cut the 12,000-kilometre the route for China’s energy imports, bypassing the Straits of Malacca between Malaysia and Indonesia, a bottleneck at risk of blockade in wartime but will also provide tremendous amount of opportunities of socio-economic development for Pakistan. The project will also play a vital role in regional integration, security, peace and prosperity. It is the Corridor of opportunities, what matters is how wisely we handle the initiative. Curtsey: The Nation

www.automark.pk | September-2016 | Page 45

Exclusive Review by Anwar Iqbal

Monthly AutoMark International

Auto Policy 2016-21 - An Analysis New auto policy do not focus on technology transfer. In my point of view some special incentives should be offered for technology transfer. It may be noted that still auto industry of Pakistan is restricted to the assembly work. Not a single company is producing the components of the critical and functional parts. At last long awaited ‘Automobile Development Policy 2016-21 is announced. It will certainly pave the way for new international vehicles manufacturers to enter in the Pakistani market. This will create a healthy environment of competition in the local industry. The new automobile policy will offer tax incentives to new entrants in order to help them to establish manufacturing units in Pakistan and effectively compete with the existing three assemblers, who are operating since the early 90s. A major incentive for the new investors is reduced 10% customs duty on nonlocalized parts for five years against the current 32.5%. For investors, the duty will be slashed by 2.5% to just 30% from the new fiscal year of 2016-17. Beginning from July, the localized parts can be imported by the new entrants at 25% duty compared to the current 50% for five years. A single duty rate will be applied to the localized and nonlocalized parts after five years of the new policy. The present duty structure will continue for seven years for the new investors. For existing players, the duty on import of localized parts will be brought down to 45% from the new fiscal year. The government has allowed one-off duty-free import of plant and machinery for setting up an assembly and manufacturing facility. It has also permitted import of 100 vehicles of the same variants in the form of completely built units (CBUs) at 50% of the prevailing duty for test marketing after the groundbreaking of the project. This is called green field project. The definition of new investor has again been changed to deny certain benefits to the existing auto players. Greenfield is now defined as “installation of new and independent automotive assembly and manufacturing facilities by an investor for the production of vehicles of make not already being manufactured in Pakistan.” For the revival of sick or non-operational units, the non-localized parts can be imported at 10% and localized parts at 25% duty for three years. This is called Brownfield

project. The government has included the word ‘make’ and deleted the word ‘assembled’. It has defined ‘make’ as “any vehicle of whatever variant produced by the same manufacturer.” The present stakeholders in the Pakistan automotive industry are not happy with the new policy. Pak Suzuki, the largest car maker in terms of market share, calls the policy a “disaster”. A spokesperson for Pak Suzuki, said that “The government is requesti ng auto companies to come and invest in Pakistan. On the other hand, it is not giving equal incentives to the existing players who are ready to invest billions of rupees.” Two key players in the automobile industry – Indus Motor and Pak Suzuki Motor Company – have challenged some clauses of the new auto policy and got a stay order from the Sindh High Court against its implementation, indicating they are not immediately inclined towards offering technologically improved and cheaper vehicles. According to the new auto policy, Indus Motor was to install immobilizers in its XLI (basic) variants, Suzuki in Cultus and Mehran models and Honda Atlas Cars in the City variant. However, the carmakers have refused to install the immobilizers immediately, arguing it is not possible for them to complete the task in a short time. They require six months to one year as vehicle engines need to be changed for putting in place the anti-theft device. An effective auto policy should do two t hi ngs for a country; increase employment and industry by increasing the manufacturing sector, and of course, allowing for increasing sales and increasing the volume of cars bought by the public, which ideally should be cheaper and of better quality. Additionally, the government has offered new entrants duty-free import of their entire plant and machinery among other benefits. At the end of the day, it is important to remember that more cars do not solve the problem of transportation across the country. Rural areas still have a very limited number of private cars present,

and of course the average citizen cannot even afford any form of personal transport. Looking beyond city centers, one can see that P a k i s t a n ’ s infrastructure is still not completely ready to take on a sudden influx of thousands of new cars that might be injected into the market if the pricing policy of the new entrants is competitive. While the regime looks to invite new manufacturers, the interest displayed by the companies themselves can be termed lukewarm at best. While a lot of demands have been heard and catered to, important issues such as setting the definition for a mediumknocked down unit have been left out of the policy. With the policy in place, the time has arrived for the government to consider practical issues, and ensure that as promised, new competition not only enters the market, but gives a fight to the old established players. New auto policy do not focus on technology transfer. In my point of view some special incentives should be offered for technology transfer. It may be noted that still auto industry of Pakistan is restricted to the assembly work. Not a single company is producing the components of the following critical and functional parts. a) Engine b)Transmission c) Gear Box d)Axles e)Ignition System f)Clutch System g) Braking System h)Motors etc i)Wind Serene & Door Glasses Japanese companies are working in Pakistan since 90’s but they are doing only welding, painting and assembly. Now it is the time that some of the above mentioned component manufacturing should start in Pakistan whatever the facilitation and incentive required should be provided through new auto policy, even to the old players, for real technology transfers specially for the local assembly and manufacturing of the above mentioned components.

www.automark.pk | September-2016 | Page 46