Sep 2017 by Mustafa Hanif

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Contents

September-2017

News / Event

Article / Review 16 18 22 38 40 46 51 52 53

Locally Assembled FAW V2 A Powerful Hatchback with Advanced Safety Features Exclusive article by Syed Sarim Raza Why Yamaha & Suzuki bikes stay behind Honda in Pakistan? Exclusive Article by Ali Hassan Petroleum products burn higher on surging vehicles' sales and imports Exclusive by Ali Hassan

25 32

New Auto Policy 2016-21 Is A total confusion and Failure ? Our special correspondent from Islamabad This Auto Dealership Added Rs 100 crore to Its Revenue Every Year By Nabeel A. Khan, ETAuto - India

Pakistan Automotive Industry An overview and history Courtesy: Wikipedia Upcoming JICA, SMEDA Technical Support Program An Exclusive Review by M. Shuja-ul-Haq Future Of Electric Cars In Pakistan Exclusive review by Ahsan Mirza Azaadi Safe Riding Rally in Lahore on 14 August 2017 Exclusive cover by Zahid Iqbal Malik

Inside

NED students win ‘Breakthrough Award’ at Formula Student 2017

AutoMark Exclusive Interview with FARHAN HAFIZ Direct Marketing Division AL-HAJ FAW

Paapam looking to extend JICA, SMEDA Technical Support Program beyond 2019 by Ahsan Mirza

News Updates 21 24 26 42 48 50

Locally assembled car sales accelerate in July Big wake up call from world's cheapest electric car Loans to agri sector rise, but discrepancies exist Vehicles/cars price list Motorcycles price List transfer hub in Pakistan Corporate News - Glimpses

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September-2017 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 10, Issue 09

Monthly

AUTOMARK Magazine International Editor-in-Chief Muhammed Hanif Memon Technical Editor

Advisors

Imtiaz Rastgar CEO, Rastgar Group & Advertising Manager CBI External Expert, Ex-chairman EDB Tahir Siddiqui Islamabad Muhammad Shahzad

Circulation Manager Hasaan Mustafa

Graphic Designer Mustafa Hanif Salman Hanif

Web Master Murtaza Hanif

Contributors in THIS EDITION M. Owais Khan Ahsan Mirza M. Hanif Memon Ali Hassan Sarim Raza Zahid Iqbal Malik

M. Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi Engr. IHT Farooqui Chief Operating Officer Pak China Motors (Pvt) Ltd. Karachi

Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Tel : 021-32603371 Mobile: 0321-2203815 E-mail: automarkpk@gmail.com website: www.automark.pk Whatsapp & Wchat : +92 321 2203815

AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada - L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon

Karachi Circular Railway Will we see its restoration in our lifetimes? It is not a hidden fact that for any world economy to progress and succeed, its mobility and transport systems need to play important roles in the upward progression. They are constitutional elements that need to be addressed and organized so that they may sustain the rigors of everyday traffic, and allow the public to commute easily, and work towards the betterment of society. Unlike Lahore, Karachi has not been given much attention to in terms of development of infrastructure. Being the largest andbusiest city of Pakistan, the people of Karachi must go through hours of traffic standstills every day because of blocked roads, unattended traffic diversions, and the ever-increasing number of cars and motorbikes. The absence of a mass transit system and a network of good roads has forced the people to revert to smaller modes of transportation and the poor public transport system all of which contribute significantly to the worsening traffic situation of the city. To what extent does Karachi, as a metropolitan city, require the under-construction Metrobus project? To what extent will it change the transport structure of the city? Something needs to change for the city to get out of this mess of traffic jams, road accidents, and even casualties resulting from the poor conditions of the roads. A possible long-term fix could be the reviving of the Karachi Circular Railway (KCR), and connecting the major industrial areas of the city to the suburbs. This would require an upgradation and rebuilding of the almost 50 km long intracity railway line. In August 2012, JICA agreed to a $2.5 billion loan to the Karachi Urban Transport Corporation, which would oversee this project. However, since then, very little has been done to take this project forward, which was estimated to be completed in ten years. According to the Ministry of Planning, however, the same would now be completed in three years, by September 2020, as part of the former Prime Minister’s plans to make it a part of the China Pak Economic Corridor (CPEC) Project. It was decided that the government, in tandem with China, would complete the project on a ‘fast-track basis’, with a reduction in the total cost of the project, of PKR 270.547 billion, due to its completion in a shorter timeframe. It has been planned that the 43.2 km standard gauge double railway track (14.94 km at surface and 28.18 km elevated) would be constructed with allied structures on the existing land reserved for the KCR. If all goes well, the project would be undertaken by the Government of Sindh and China, while the Ministry of Pl anning woul d overs ee the matter completely. The plans are in place. The resources have been allotted. The motivation, after all these years, is finally being seen in the government. But will we really see KCR’s restoration in our lifetimes? Atlas, the question remains to be answered.

Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management

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By Syed Sarim Raza

Locally Assembled FAW V2 A Powerful Hatchback with Advanced Safety Features

The Al-Haj FAW Group has launched Pakistan’s first locally assembled Chinese car, FAW V2. This smart hatchback was first introduced in Pakistan in January 2015 andsince then the Al-Haj FAW Group only imported the CBUs (Completely Built Units) from China and sold them in Pakistan. However, FAW V2 will now be as sembled in Paki st an an d the announcement for the local assemblyof FAW V2 was made by the Managing Director of Al-Haj FAW Group, Mr. Bilal Afridi, at an event held in Karachi on 12th of August-2017. This new development will bring a refreshing change to the hatchback segment of Pakistan’s car market as FAW V2 will offer technological brilliance, better build quality, powerful performance and advanced safety features, all in one package in an affordable yet stylish hatchback.

Launch Event of the Locally Assembled FAW V2 in Karachi The launch event of the locally

assembled FAW V2 was hosted by the Managing Director of Al-Haj FAW Group. It included automotive dealers and vendors from all over Pakistan, a large number of media representative and the members of Al-Haj FAW group among the attendees. Mr. Bilal Afridi addressed the audience and expressed hi s gr at i tud e to wa rd s al l t he stakeholders on the successful launch of the first-ever locally assembled Chinese car in Pakistan. He mentioned that the group had invested 2.5 billion rupees to setup the company and now 1.3 billion rupees are being invested to establish and improve the local assembly of FAW vehicles in Pakistan. The permanent Chinese representative of FAW-China Company, Mr. Yu Chuntian was also present at the event. He appreciated the efforts of Al-Haj FAW Group and hinted at the strengthening of ties between the Chinese-State-Owned FAW Company and the Pakistan’s Al-Haj Group which will open new avenues of investment in the automotive industry of Pakistan and improve the quality of FAW vehicles

even more. The Director Marketing Division of AlHaj FAW Group, Mr. Farhan Hafiz told the media about the capacity of the local assembly unit of FAW vehicles in Pakistan and said that the assembly unit had the capacity of producing 10,000 light vehicles per annum/single shift and the Group aims at making full use of their assembly unit’s capacity. The Al-Haj FAW Groupalso plans to take their unit’s production levels to 15000 vehicles produced per annum by the year 2020 and introduce new models in Pakistan.

Let’s review the locally assembled FAW V2 and explore what makes it one of the finest hatchbacks available in the Pakistan car market. Design of the FAW V2 FAW V2 has a modern design that makes it completely unique and different to other vehicles available in the

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Exterior The exterior of FAW V2 pleases the aesthetics of the onlookers and itsexceptional build quality makes

itready for any road challenge.A number of standout exterior features are available as standard in FAW V2, which other companies only offer in the most expensive version of their vehicles.

Listed below are state-ofthe-art exterior features of FAW V2: • Stylish Headlights • LED Taillights • Front and Rear Fog Lamps • Body Colored Front Grill • Body Colored Door Handles • Overhead Antenna • High Mounted Brake Light

• Outside Mirrors with Turn Signals • Aluminum Alloy Wheels

• Cabin Lights • Driver Seat Visor and Document Clip

Interior

The interior of FAW V2 is both stylish and utility-based. Unlike many other hatchbacks that are available in Pakistan, the FAW V2 also offers sufficient head room and leg roomfor the passengers. It also offers adequate cargo space so that you can set off on a

The interior of FAW V2 is designed to offer a luxurious experience with some top-of-the-line features. From power steering and electric power windows to a digital odometer and central control panel, the interior of FAW V2 depicts

sheer excellence and class. FAW V2 also provides a unique feature of engine cover sound insulation which keeps the cabin of the vehicle quiet and makes the ride of V2 comfortable and stress-free.

Some other attractive features of V2’s interior include: • Bi-Color Inner Trim • Woolen Ceiling • Front Row Double Deck Glove Compartment • Storage Box and Cup Seat in Door Plate • Needle Instrument • Foldable Rear Seats • Inner Reading Lamp

journey without having to worry about carrying your extra luggage.

Engine of the FAW V2 FAW V2 is equipped with a powerful VCT-i 1.3 engine that produces 67 horsepower and 120Nm of torque. It is based on modern day automotive technologies and feeds the pleasure and power of a big car in a small hatchback. The EURO4 technology makes the engine highly fuel-efficient and offers a fuel average of 15-16km per litre in city and 18-19km per litre on the highways.

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Exclusive Article by Ali Hassan

Why Yamaha & Suzuki bikes stay behind Honda in Pakistan? In most of the countries sales of Yamaha and Suzuki have been showing a robust growth but in Pakistan they are not at par with global sales trend

More than 50 per cent of Pakistan’s two wheeler market is based on unbranded Chinese models. Atlas Honda holds 45 per cent market share while Yamaha and Suzuki have been struggling hard to increase their market share but so far their efforts have proved futile. One of the main reasons of unimpressive sales of Yamaha and Suzuki is absence of 70cc and 100cc models in their production lines while in contrast Honda CD 70cc virtually rules the market despite being costlier than its Chinese made rivals.

developed by Suzuki, as well as its pleasing body color and its design. Viewers and readers vote online and by phone for their favorite vehicles which shows the popularity of the Access 125. As per international media reports, Yamaha's sales in the US have taken a hit, similar to trends Harley-Davidson had reported in the company's sales report for the second quarter of 2017. New motorcycle sales in the US were low due to a slowdown in the industry, and lack of buyer interest in

“Sabir Sheikh said future sales scenario for both Yamaha and Suzuki may remain tight as Honda has increased its production capacity followed by introduction of a new 150cc model at a price of Rs 160,000 in May 2017” For example, Suzuki Access 125cc is the proud winner of India’s prestigious Overdrive Viewer’s Choice Scooter of the Year Award for 2016. The new allrounder Access 125 was highly evaluated for its state of the art engine, fuel efficiency and power acceleration derived from the latest technology

motorcycles. Now, Yamaha seems to be reporting a similar fate with the Japanese twowheeler giant's sales in the US. Not surprisingly, markets in Asia continue to be on the rise, leading Yamaha's overall international sales. Overall, Yamaha has reported a 6.6 per cent

increase in net sales of motorcycles for the first half of 2017. Unit sales in emerging markets such as Vietnam, the Philippines, Thailand, and Taiwan increased, and despit e decreasing in Indonesia due to the market slump there, the unit sales figure increased overall. Net sales increased, and operating income increased significantly thanks to the effects of product mix improvements and cost reductions, a release from Yamaha said. In India, Yamaha sold nearly 200,000 two-wheelers from April to June 2017, but overall growth has remained flat for India Yamaha this year. In India, Yamaha is all set to launch the new Fazer 250, the full-faired version of its quarter-litre FZ25. Globally, the most anticipated Yamaha launch will be unveiled at the EICMA show later this year, when Yamaha unveils the MT-07based adventure tourer. When contacted, expert of two-wheelers market in Pakistan, Mohammad Sabir Sheikh was of the view that Honda is a Seth (owner) based company who has the ability of making decisions daily as per requirement while in contrast Suzuki

Ministry of Industry Government of Pakistan

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Monthly AutoMark International

and Yamaha lack any decision making power. The Pakistani management of Suzuki and Yamaha need to indulge in a lengthy process of getting approval for any future decision. He said the Pakistani management of Suzuki and Yamaha at lower level is very weak and they do not have expertise to understand how to compete in the market and take timely decisions. In Honda upper and lower management are more active than two Japanese bike makers. Sabir said the dealership network of Honda is far better than Yamaha and Suzuki. At Akbar Road, the management of dealership network of Honda looks more aggressive and agile than the dealers of Yamaha and Suzuki who professionally are very weak. He said there is no service network of Yamaha in the biggest market of Karachi while Suzuki has only one company based workshop. The service network of Atlas Honda dealers (3S) is very effective and more reliable than Yamaha and Suzuki. Consumers complain lack of availability of spare parts (genuine and non genuine) of Yamaha and Suzuki while customers do not feel problem in getting almost all the quality of Honda parts in any market. There is no authentic dealer for leasing of the bikes directly instead of banks while Honda 3S dealers offer direct leasing facility, he said. Some Chinese companies in bike industry have achieved tremendous success as they are Seth (owner) based companies and take decisions on daily basis, he said. The Seth based companies easily handle

sales tax audit issue by greasing the palm of tax officials. If the Seth faces any hurdles in clearance of CKD kits at port stage then the Seth immediately takes action what to do next to overcome problem, Sabir said. The Seth based companies also take quick decision relating to price increase/decrease based on market situation, he said. Sales get depressed due to uncertain political and economic situation. Here again the Seth based companies offer incentive package to the dealers as well as customers to avert any immediate sales loss. Contrary to that, Yamaha and Suzuki send emails to Japan for getting

dissolved its local joint venture in 2008. The Japanese bike giant had re-entered in Pakistan in April 2015 in a market dominated by 70cc bikes with an aim to provide latest engine and technology transfer claims. “Neither the customers could get latest engine technology nor technology transfer was witnessed,” he said adding that even the exports prospect of Yamaha bike from Pakistan also appears bleak. Technology transfer and export of bikes open new job avenues. He said the government should consider of allowing only those manufacturers who can make Pakistan a hub for export of items to other countries rather

Sabir said Honda has been infamous for selling outdated models in Pakistan and the company may suffer in future, but fortunately it is ruling the market. Branded companies should reduce dealership network all over the country and select those dealers who can make investment and must be experienced. approval for any decision. By the time r e p l y c om e s f r o m t h e J a p a n management the market situation changes, he said. Sabir said Honda has been infamous for selling outdated models in Pakistan and the company may suffer in future, but fortunately it is ruling the market. Branded companies should reduce dealership network all over the country and select those dealers who can make investment and must be experienced and they have ideally located 3S showrooms, he said. Sabir recalled that Yamaha Motor had

than just producing bikes in the country. Yamaha Motor had initially invested Rs 5.3 billion. As on June 30, 2016, the company had 232 employees which were 200 when it started its operation in 2015. At that time the plant’s production capacity was 40,000 units per year. Yamaha, one of the largest motorcycle makers in the world, in 2015 had aimed to produce up to 400,000 units annually by 2020. All the tall claims by the top Japanese and local management of the company are now proving a bit hollow as the continued on next page www.automark.pk | September-2017 | Page 19

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Monthly AutoMark International

Automotive News - Update

In recognition of significant contribution in promoting economic relations between Pakistan and Japan, the Ministry of Foreign Affairs of Japan has awarded the Foreign Minister’s Commendation to Hirofumi Nagao, former Chief Executive and Managing Director of Pak Suzuki Motor Company Limited. The award ceremony was held on August 22, 2017 at the official residence of the Ambassador of Japan to Pakistan, T ak as hi K ur ai wh o c on f er re d commendation to Nagao on behalf of

the Minister for Foreign Affairs of Japan. Hirofumi Nagao has worked for about 20 years in Pakistan as a representative of Pak Suzuki Motor Company Limited in three tenures. During his career, he has contributed not only in the

development of Pakistan’s automobile industry but also in strengthening the overall economic relations between Japan and Pakistan.—PR

2,025 in May 2017 and came down to 1,020 in June 2016. In July 2017, sales again rose to 1,731 units as compared to 939 units in July 2016. Yamaha sales in 2016-2017 remained flat at 13,282 units versus 16,109 units in 2015-2016. According to the data of Pakistan Automotive Manufacturers Association (PAMA), sale of Suzuki bikes in 20162017 stood at 18,478 units as compared to 17,456 units in 201-2016. In the first month of new fiscal year Suzuki sales stood at 1,545 units as compared to 1,423 units in 2016. Sabir Sheikh said future sales scenario for both Yamaha and Suzuki may remain tight as Honda has increased its production capacity followed by introduction of a new 150cc model at a price of Rs 160,000 in May 2017. Honda is all set to achieve production of 1.35 million units in coming years after recording production of 960,640 units in 2016-2017.

He said Atlas Honda has been continuously breaking its monthly production and sales record in the outgoing fiscal year. The last highest ever production and sales record by an individual Japanese company was 90,800 and 93,060 units achieved in May 2017. Surprisingly the second highest assembler of two wheeler in the country is a Chinese company United Auto Motorcycle instead of Yamaha and Suzuki, he said. United Auto has also been achieving monthly production and sales laurels by breaking its previous records in 20162017. The company has achieved highest ever production and sales in November 2016 by with 32,773 units each. He said even the production and sales figures of Suzuki and Yamaha are far lower than other Chinese competitors like Super Power, Super Star, Unique, Road Prince, etc.

continued from previous page market dynamics have changed a lot, Sabir said. However, to stay in the market, Yamaha Motor Pakistan introduced its third variant in the 125cc engine category in April 2017 but this time the target is rural consumers. Yamaha previous models – YBR125 and YBR 125G – though started on a good not but failed to lure rural buyers mainly. These two models remained limited to urban population as the company had mainly targeted the youth. The company has introduced the third model at price of Rs 115,500 aimed at giving a tough time to its competitors. The company’s executive again made a big claim of producing 150,000 units a year and can increase production capacity in case additional demand arrives. The new Yamaha model has made some inroads which is evident from April onward sales. Sales of Yamaha bike was 1,589 in April 2017 which swelled to

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Monthly AutoMark International

Automotive News - Update

The real automotive boom Imagine the sprawling city of Karachi without motorcycles and rickshaws. Would it still feel like Karachi? The news is abuzz on the arrival of handful of new car and commercial vehicle ventures that are sure to shake up the auto industry while tractors are witnessing their fair share of growth. The real boom, however, is being seen in the two and three wheeler market. Sales have shot up from 1.4 to 1.6 million between FY16 and FY17 with as many as 12 players manufacturing locally. Me an w hi l e , i mp o rt e d C hi n e se motorcycles are also oft seen on the congested roads indicating that the actual annual ownership of motorcycles may have gone up further. In fact, reportedly, Pakistan and Philippines are the two countries in Asia seeing this surge as sales in other countries like China and Indonesia drop with slower growth in India and

Thailand. In Pakistan, this trend is likely to continue. Poor traffic conditions in big cities and greater demand for cheaper transportation are two primary reasons for this growth. As ride sharing apps like Uber and Careem establish a foothold across major cities, and car ownership goes up due to higher disposal incomes and affordable financing; it is easy to see why motorcycles are witnessing even greater growth. Those who could only afford travelling in the mini buses are now buying motorcycles on lease. Clearly, youth employment and the population coming of working age are strong contributors to motorcycle sales. Following the success of ride sharing apps, two bike sharing apps were also launched called Bykea and Cargar which used similar models to connect bike owners and commuters at significantly cheap rates. Both Uber and Careem also

toyed with the idea of offering rickshaws to city dwellers which cost significantly less than the car options. Foreseeing these demand indicators, some of existing players are expanding capacity and introducing better options and upgrades to their fleets. Atlas Honda being the market leader has already expanded capacity and intends to reach 1.35 million units annually. Sagar Engineering, the rickshaw manufacturer is currently even exporting its rickshaws to markets in Japan to diversify its sales mix and remain competitive. Much of the attention and hype is what cars Nishat and Lucky will bring to the market and whether Renault will be a hit or a miss. Some were contending that more car ownership may deter motorcycle sales but clearly, there is space for everyone to play.

Locally assembled car sales accelerate in July Sales of locally assembled vehicles, including jeeps and light commercial vehicles, jumped to 19,577 units in July 2017, up 41% compared to 13,932 units in the same month of 2016, according to latest data released by the Pakistan Automotive Manufacturers Association (PAMA). A Topline Securities’ report said the numbers were in line with its estimates. The apparently large difference in monthly sales may be attributed to reduced working days in July 2016 because of Eid holidays, the report said. Sales of Pak Suzuki Motor Company increased 37% year-on-year (YoY) in July 2017 due to strong demand for Wagon-R, up 77%. With the introduction of a new model, sales of Cultus rose 66% YoY while Ravi sales were up 41%, which also supported

the company’s growth. Honda outperformed its peers in vehicle sales, posting 113% growth due to successful introduction of a new Civic model and new sports utility vehicle (SUV) BR-V. Indus Motor sold 4,618 units in July 2017, up 11% YoY. The company’s focus remained on production of highermargin Fortuner, which recorded a stellar growth of 543%. Moreover, buyers were postponing their purchase of Toyota Corolla, waiting for the face-lift model, which has arrived now. Truck and bus sales of PAMA member companies in July 2017 remained strong, growing 13% YoY. The trend is expected to continue, fuelled by the China-Pakistan Economic Corridor (CPEC) led growth, higher road

connectivity, lower financing rates and enforcement of the axle load limit per truck on highways by the National Highway Authority. Two and three-wheel vehicle sales for July 2017 grew strongly by 42% YoY due to rising disposable income of the lower middle class, the report added. Tractor sales continued to exhibit an upward trajectory with sales growing by 125% YoY in July 2017. Lower general sales tax, improved crop yield due to Punjab government’s Kisan Package and continuation of fertiliser subsidy to improve farmers’ purchasing power contributed to the strong tractor sales. Moreover, in the provincial budget for fiscal year 2018, the Sindh government has set aside Rs2 billion in subsidy on tractor purchases by farmers.

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Exclusive article by Owais Khan

Petroleum products burn higher on surging vehicles' sales and imports

With every passing day new cars, bikes and heavy vehicles are being added on the already over loaded roads thus giving an impression that vehicle numbers have exceeded the human population. Cheaper financing due to low interest rates, rising disposable income, improved farm income and better law and order situation are some of the reasons luring bu yers towards purchasing new vehicles. Some four new auto players are arriving in the next two to three years to launch cars and commercial vehicles. It will give new options for the buyers who have been relying on Japanese cars mainly for decades. The entry of new players will further increase vehicle population while the road network does not allow more vehicles. Both federal and provincial governments should come out with policy and planning to cope up with increasing load of upcoming new vehicles on the already congested roads which witness massive traffic jams on daily basis owing to surging vehicle population. Arrival of used vehicles in larger quantities and also bikes and heavy vehicles also pose a serious challenge for our road network. The government has made efforts by constructing motorways and various long route intercity roads and some of them have been completed but the pace of work on these projects has so far been slow. Transport sector consumes over 55 per cent of energy products while the share of power sector is 39 per cent. Import of petroleum products has swelled to

$6.8 billion in 2016-2017 from $5.33 billion in 2015-2016 while petroleum crude imports also went up to $2.5 billion from $2.3 billion in 2015-2016. Rising import of cars and other heavy vehicles, surging sales of locally assembled cars and two wheelers and phenomenal increase in import of power generators have given a big boost to the imports, production and sales of petroleum products. The consumption of petroleum products especially petrol and diesel is all set to go further up as new assemblers of cars and commercial vehicles will hit their products in the next one to three years. Oil Companies Advisory Council (OCAC) believes that the demand of petrol would cross over nine million tonnes by 20202021 while the demand of high speed diesel (HSD) will hit 12.5 million tonnes. Oil industry people believe that the share of two wheelers in total usage of petrol in the country, which was 55 per cent two years back, now hovers between 6065 per cent due to improving sales of two and three wheelers. Atlas Honda produced 960,640 bikes versus 811,034 units in 2015-2016. Total bike and three wheelers sales of PAMA members shot up to 1.6 million units in 2016-2017 from 1.358 million units in 2015-2016 while this was just 820,217

units in 2012-2013. Total car sales improved to 187,781 units in 2016-2017 from 181,145 units in 20152016. Trucks and bus sales rose to 7,499 and 1,130 units in 2016-2017 from 5,550 and 1,017 units in 2015-2016. The distribution of liquefied natural gas (LNG) in Punjab especially has pushed up the import bill of LNG to $1.312 billion in 2016-2017 from $567 million in 2015-2016. However, this gas availability did not augur well for the power sector which had to rely on usage of furnace oil pushing up its sales and imports. The share of Punjab in consumption of petrol, high speed diesel (HSD) and furnace oil (FO) during 2016-2017 stands at 66 per cent, 63 per cent and 54 per cent respectively out of total country’s consumption. In 2015-2016, Punjab held 68pc share in petrol, 63 per cent in HSD and 58 per cent in furnace oil in country’s total consumption, data of Oil Companies Advisory Council (OCAC) revealed. Of total utilization of 6.645 million tonnes of petrol in 2016-2017, the share of Punjab stood at 4.349 million tonnes. In 2015-2016, the bigger province consumed 3.949 million tonnes out of total consumption of 5.759 million tonnes. Sindh consumed 1.394 million tonnes in 2016-2017 as compared to 1.150 million tonnes in 2015-2016 while the usage of petrol in Khyber Pakhtunkhawa and Balochistan rose to 511,883 and 193,825 tonnes from 390,329 and 140,567 tonnes in 2015-2016. The share of Punjab in usage of kerosene

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Monthly AutoMark International oil stood at 65 per cent out of total consumption 120,958 tonnes in 20162017. However, the share of Sindh stood at 10,588 tonnes which was 14,733 tonnes in 2015-2016. KPK and Balochistan used 26,115 tonnes and 881 tonnes as compared to 33,247 and 721 tonnes in 2015-2016. Due to higher prices than its regulated low price – a number of poor people failed to get kerosene at low prices. Besides, kerosene is also reportedly being mixed with other fuels. Country’s total consumption of high speed diesel surged to 8.49mn tonnes in 2016-2017 from 7.751million tonnes in 2015-2016 with Punjab holding the share of 5.455 million tonnes as compared to 4.884 million tonnes in 2015-2016. Sindh, KPK and Balochistan used 1.842 million tonnes, 803,201 tonnes and 157,855 tonnes as compared to 1.707million tonnes, 743,980 tonnes and 180,079 tonnes in 20152016. Sindh continued to take the lead in usage of JP1 (commercial aviation fuel) with 656,030 tonnes in total of 833,104 tonnes in 2016-2017. The total consumption of aviation fuel in 20152016 stood at 775,736 tonnes in which Sindh’s share was 614,053 tonnes. KPK and Balochistan consumed 4,756 and 4,343 tonnes as compared to 2,095 and 3,814 tonnes in 2015-2016. It seems that people of Punjab prefer traveling via public and private transport more rather than using commercial airline. Besides, passenger arrival and departure through international flights is also very dismal in Punjab as compared to Sindh. In the total 9.599mn tonnes of furnace oil during 2016-2017 – Punjab, Sindh and Balochistan held their share with 5.261 million tonnes, 2.628 million tonnes and 1.649 million tonnes, while the share of KPK was 59,179 tonnes. In 2015-2016, total furnace oil’s use was 8.999 million tonnes in which Punjab held 5.277 million tonnes followed by 1.834 million tonnes by Sindh, 1.813 million tonnes by Balochistan and 73,720 tonnes by KPK. Low gas availability has led to increase in furnace oil demand by the power generation. The higher consumption of petroleum products had also led to rise in production of oil products by the local refineries. For example, refineries produced 1.838 million tonnes of petrol in 2016-2017 as compared to 1.589

million tonnes in 2015-2016 while high speed diesel’s production went up to 4.547 million tonnes from 4.381 million tonnes. JP-I production slightly rose to 717,285 tonnes from 670,431 tonnes while furnace oil production increased to three million tonnes from 2.889 million tonnes. As a result, the overall production of oil products including light diesel oil (LDO), HOBC, JP-4 and JP-8 had surged to 10.474 million tonnes in 2016-2017 from 9.913 million tonnes in 2015-2016. Import of petrol hits 6.72 million tonnes in 2016-2017 which included RON 87, 92, 95 and 97 while in 2015-2017 import stood at 4.142 million tonnes of only RON 92 petrol. Higher imports of power generators and consumers’ shift towards petrol from CNG due to lower price also boosted petrol demand. Imports of heavy vehicles (truck and buses) peaked to $308 million in 20162017 from $217 million in 2015-2016 while cars and bike imports recorded at $414 million and $2.99 million from $325 million and 2.94 million in 20152016. Import of diesel stood at 3.89 million tonnes in 2016-2017 as compared to 3.082 million tonnes in 2015-2016. Increasing sales of locally produced heavy vehicles and arrival of some new imported trucks and buses. Import of power generating machines had surged by 64 per cent to three billion dollars in 2016-2017 from $1.8 billion in 2015-2016. Usage of higher KVA standby diesel generators by high rise apartment projects especially in Karachi has created additional demand for diesel.

According to OCAC, Pakistan has three ports for handling import and export of petroleum products. Keamari port handles imports of crude oil, petrol and light sulphur fuel oil imports besides handling naphta exports. FOTCO handles import of high speed diesel (HSD) and high sulphur fuel oil and export of condensate. Byco SPM handles Byco’s crude and HSD imports. The problem is average tanker size i.e. 28,000 dead weight tonnage (DWT) at Keamari as against 58,000 DWT at FOTCO. The reason is more and more oil marketing companies (OMCs) are going for imports but using smaller tankers, OCAC said. The pressure on ports is increasing every day in line with the growth in petroleum product demand. OCAC had conducted a study in 2016 in which it was concluded that the main reason in handling the cargoes at Keamari port is inadequate storages for the fast increasing volumes of petrol. To increase motor gasoline import at Keamari – the stated ban on new tank construction at Keamari and land availability of this magnitude of storage development is a big limitation at Karachi Port. The operational efficiency of for petroleum imports at FOTCO jetty can be increased by achieving short term measures like night navigation, reducing sampling/testing time and increasing discharge rate particularly for high sulphur furnace oil (HSFO) receipts by Pakistan State Oil (PSO) by increasing ship rail pressure, booster pumping etc.

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Monthly AutoMark International

International News - Update

Big wake up call from world's cheapest electric car The arrival of what could be the cheapest ever electric car must accelerate innovation around zero-emission vehicles, experts warn China’s launch of a fully-electric car that sells for under £5000 is being described as a “wake up call” to European car manufacturers and policy makers. Through a Chinese subsidiary, General Motors (GM) has unveiled the Baojun E100; a vehicle the size of a Smart car with a 100-mile range. The new car is being rolled out in China and is not expected to appear in the United Kingdom or Europe any time soon, but its launch has coincided with several major developments in the motor industry. The much-awaited Tesla 3 model was launched recently, grabbing headlines and hundreds of thousands of buyers. Selling for around £27,000, Elon Musk’s latest offering is billed as a revolutionary step in making electric cars more affordable. At the same time, Volvo has committed to stop making purely-petrol cars by 2019, saying it will produce only hybrid or fully-electric cars from that year on. In Britain, government has proposed new laws against petrol and diesel vehicles that it hopes will usher in a new, greener future come 2040. Last year, the number of electric cars in

the world zoomed past the 2-million mark and in Norway, a third of all new cars being sold are electric. While electronic vehicles make up less than 1% of cars on the world’s roads, some estimates suggest this will rise to around 4% in less than a decade. GM’s Baojun E100, released by SAICGM, is powered by a single motor that produces 29kW and a top speed of 100km/h. The car’s lithium-ion battery recharges in 7.5 hours and the vehicle offers some nice modern luxuries, like WiFi connectivity, a touchscreen console, keyless entry and parking sensors. The latest launch, says David Bailey of the A st on Busin ess Schoo l in Birmingham, is part of a wider story around China’s booming electric car market and within it, the growth of cheap battery-powered vehicles. Bailey says that half a million electric vehicles were sold in China last year, making it the biggest market in the world. The race to electrify cars, he adds, is part of a “massive effort” to improve air quality in that country. Due to regulations (which take into account safety standards), the Baojun E100 will be difficult to import into Europe or America but, Bailey says, major change is coming. “The direction is clear. Electric cars are coming and

they are coming in a very big way. There is going to be a revolution not only in electric cars but also in driverless cars.” Yoann Le Petit, clean vehicles and mobility officer at the Brussel-based research gro up T ranspo rt and Environment, believes this could be the cheapest electric car ever built. The cheapest hybrid vehicle in the UK currently sells for over £10,000. He agrees with Bailey in that the Baojun E100 is not likely to arrive in Europe for years, but says its launch is a clear sign that there is a growing demand for cheap, electric cars. Le Petit says more investment and research is needed in Europe into zeroemissions vehicles and particularly into the batteries that power them, the cost of which can account for 40% or more of the car’s price. In this respect, he says, China has a competitive advantage. “In Europe, you have more and more cities banning diesel engines,” he says. “If we don’t produce the batteries and the cars, the big risk we are running is (having) to import all these cheap vehicles from China. In 20 years it could be the end of the automotive industry in Europe. So for car makers and policy makers this should be a wake up call.”

Chinese electric car start-up Future Mobility eyes global market in challenge to Tesla Future Mobility Corp (FMC), a Chinese electric-car maker considered one of Tesla’s challengers in China, said it will start taking global sales reservations after unveiling its first concept car in January 2018. The start-up that eyes competing with Tesla on a global scale said its first car, expected to hit the market in 2019, is designed to not only meet safety

requirements in China but also in the United States and Europe. “China has the potential to have two to three Tesla-size companies and that means globally successful electric-car makers,” said Daniel Kirchert, cofounder and president of FMC. “We are hoping to be one them. So we are based in China and have an eye for the global market,” he said in a media

briefing on Wednesday. With a team of former executives from BMW and enginers who worked for Google and Tesla, FMC recently closed a US$200 million funding round led by an investment fund of Suning Holdings and state-owned companies from Jiangsu province, where FMC’s global headquarters and factory are located.

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Engineering Students Achievement - Update

Monthly AutoMark International

NED students win ‘Breakthrough Award’ at Formula Student 2017

A group of young engineering students from NED University of Engineering and Technology has won "Breakthrough Award" at Formula Student UK’s 30th competition at Silverstone. Fusion NED, a student racing team representing NED University of Engineering and Technology, consisted of 16 students who paid their own expenses to take part in the competition which was attended by young engineers from 68 countries, run by the Institution of Mechanical Engineers - the world’s largest student motorsport event for student engineers to design, build and race single-seat racing cars. NED’s Team Formula Fusion consisted of 16 engineering students, namely: Humza Yamin (team leader), Mujtaba Raza, Faisal Sattar. Saroosh Ahmed, Abdul Samad, Arham Ali, Ali Abdullah, Rahul, Ahmad Shafiq, Immad Naveed, Hasan Ishaque, Ahmed Velmi, Zeeshan, Moiz and Rameez. The team toiled for two years with sleepless nights, dedicating all their time and money and even their earnings for the passionate goal of making a name for Pakistan on the international forum. The team built an outstanding formula student car that competed with 85 leading international engineering universities from 65 countries. The team secured "Breakthrough Award" which has been introduced for the very first

time in this mega competition. The young Pakistani engineering students not only managed to secure extensive appreciation from renowned judges of motor sports but also received appreciation momento of a BMW F1 aerodynamic part from F1 specialist William Toet. The team participated in the coveted event for four days. Despite the hindrances and setbacks, the team persevered even though this was their first entry in the competition. In the end, the team made its mark at the prestigious Silverstone Circuit and received its Award surrounded by the chants of "Pakistan Zindabad". Speaking to media, the students said they had no help from anyone but they were determined to make it to the event to show that Pakistanis are innovative and talented and they are making advances in the field of technology. They said that dozens of Formula Student alumni have progressed to Formula 1 and hundreds more are now working at t he world ’s largest automotive firms. The students added they had to get loans from family members to import parts of the car but thanked Pakistan International Airlines (PIA) for helping to cargo the racing car for free to Pakistani team’s car made it to the event after the start of the event because

clearance at the taxation department was delayed for two days, but the students were able to demonstrate before the judges and international students how they had assembled and prepared the car in Karachi. The students shared that it was a joy for them to represent Pakistan at the world stage. They appealed to the government of Pakistan to help students who want to make it big at the international stage but lack resources. Andrew Deakin, Chairman of Formula Student, said in a statement: “It’s brilliant to see so many teams from around the world applying for Formula Student 2017 – it shows that the competition remains one of the most important learning experiences for those aiming to combine their studies with exposure to a real world engineering project. Formula Student is a global competition and we want to continue to encourage brilliant young engineers from across the globe to improve their practical skills and get ready to play their part in the v ibrant worldwi de engineering community. The innovation demonstrated by these young engineers gets more impressive every time and I’m extremely excited to see what they have in store for us this year.”

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Monthly AutoMark International

Automotive News - Update

Loans to agri sector rise, but discrepancies exist Smaller provinces and federating units (Balochistan, Khyber Pakhtunkhwa, Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan) are supposed to get 10pc of total agricultural loans and not 3pc that they eventually end up consuming. AGRICULTURAL lending reached an all-time high of Rs704.5 billion in the last fiscal year. For this year the target is even higher at Rs1 trillion. Recovery in agricultural output in the last fiscal year has emboldened banks to readily accept this target. Top bankers say they hope to meet the target as demand for farm loans are likely to remain high and as banks work upon improving lending practices. But whether banks will also be able to remove geographical and other discrepancies Balochistan gets about 0.1 per cent of total farm loans in extending agricultural loans has yet to be seen. The State Bank of Pakistan (SBP) is making reporting requirements more candid to make sure they can. Balochistan`s contribution to national agriculture is around 3pc to 4pc. `Geographical discrepancy in farm lending is a fact. But underlying factors are seldom highlighted by media,` complains the head of agricultural lending at a leading commercial bank. `Expecting us to make more loans in regions where issues are insurmountable isn`t fair. If those issuesare not of our own making why should we feel embarrassed?` he said. He and several other bankers say that years of political unrest, terrorism, militancy and poor law and order in Balochistan have resulted in less than adequate banking concentration in that province. But as things have started improving, banks are set to accelerate agricultural lending there, they say. Besides, Balochistan Bank is going to be set up in this fiscal year and the provincial government has allocated Rs10bn for this purpose in its budget. Once the bank begins operating, the pace of agricultural lending there must increase. `It`ll be far easier for a provincial bank to make more agriculture loans in Balochistan than big commercial banks that remain focused on lending in Punjab and Sindh

where 97pc of total farm loans are consumed,` the banker says. But things should be different, if banks stick to provincial break-ups of the agricultural lending, central bankers point out. Smaller provinces and federating units (Balochistan, Khyber Pakhtunkhwa, Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan) are supposed to get 10pc of total agricultural loans and not 3pc that they eventually end up consuming. In KP, agricultural lending remains below target for reasons similar to those cited in case of Balochistan, i.e. years of militancy, terrorism and poor law and order. `These things deter banks from entertaining loan applications not only from farmers but even from small loan seekers of other sectors,` says a senior executiveof Habib Bank Ltd. Another reason for low agricultural lending in KP so far is that the farming community there, just like in Sindh, has access to informal finance from middlemen and traditional loan makers who give loans on high interest rates, but are well rooted in the farming community, bankers say. In case of AJK and Gilgit-Baltistan, banks have never even bothered to assessthe potential of agricultural lending, let alone exploiting that potential, they admit. Small wonder then that KP gets less than 2pc of the total agricultural loans and AJK and Gilgit-Baltistan each get 0.1pc of it, official stats reveal. Sindh, the second-largest recipient of agricultural lending, happens to be the second-largest contributor to national agriculture as well after Punjab. But whereas its share in the country`s agriculture sector is no less than 23pc, it gets around 13pc of the total agricultural loans. Here, issues are multiple and mostly rooted in agricultural history, bankers and agriculturists say. ` Unli ke in Pun jab, farm lan d

documentation is very poor [in Sindh],` says a senior executive of one of the five leading local banks. `Besides, the province is known to have misused agricultural loans of ZTBL [Zarai Taraqiati (Agricultural Development) Bank Ltd.] just as Punjab has done in the past. `But the difference between ZTBL lending in the two provinces is that in Sindh recovery and loan settlement have remained more difficult than in the case of Punjab. That perhaps has kept other banks from accelerating agricultural loans here,` he says. Agriculturists in Sindh, however, allege that banks knowingly make more agricultural loans in Punjab under pressurefrom politicians and other powerful lobbies there. The provincial break-up of loans quoted above has been taken from the SBP report of the fiscal year 2014-15. But sources in the SBP say no dramatic change has since taken place in geographical distribution of farm loans though they insist that in case of Sindh the share now is a bit higher than in 2014-15. `That is why we are in the process of assigning district-wise lending targets to banks , and hopefully this year`s agricultural lending will be much more judicious than in previous years,` one of these sources told this writer. `With Islamic banks, microfinance b a n k s, i n s t i t ut i o n s a n d n o n governmental organisations now playing an active role in the agricultural loan distribution and with SBP well determined to remove all geographical and sectoral discrepancies, one can hope that agricultural lending from this year onward s would be much more qualitative,` the source said. Besides, central bankers point out that with the payment system undergoing some revolutionary changes and mobile and internet banking catching up fast, small farmers, even in the remotest areas of the country will soon have access to agricultural loans.

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Car / Light Vehicle Price List SUZUKI 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 NEW CULTUS VXR NEW CULTUS VXL BOLAN VX EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2

Ex Factory Price

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

1029,000 1069,000 650,000 720,000 773,000 1,327,000 1,463,000 1,250,000 1,391,000 725,000 696,000 667,000

Rs. Rs. Rs. Rs.

1,839,000 1,699,000 2,142,000 2,418,000

Advance Tax

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

25,000 25,000 10,000 10,000 10,000 50,000 50,000

Rs. 10,000 Rs. 10,000 Rs. 10,000

SUZUKI IMPORTED VEHICLES SUZUKI CIAZ (A/M) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol)

TOYOTA COROLLA Model XLI VVT-i 1.3L M/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis 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

HONDA Honda BR-V (i-VTEC) 1.5 Rs. 2,241,000 Honda BR-V (i-VTEC S) 1.5 Rs. 2,341,000 Model Price Honda Civic 10th Generation 1.8L Oriel Rs. 25,41,000/=* Honda Civic 10th Generation 1.5L Turbo Rs. 29,11,000/=* Honda Aspire Manual 1.3L Rs. 1,663,000 Honda Aspire Manual 1.5LHYUNDAI Rs. 1,683,000 Honda City 1.3L Manual Rs. 1,553,000 Honda City 1.3L Automatic Rs. 1,674,000 Honda Civic VTI Manual 1800cc Rs. 2,053,000 Honda Civic VTI Manual SR (Oriel) Rs. 2,285,000 Honda Civic VTI Prosmatec 1800cc Rs. 2,174,000 Honda Civic VTI Prosmatec SR (Oriel) Rs. 2,406,000 * 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

DFSK PRINCE PAKISTAN Model

Price

K01 997CC, 2300mm, A/C PS K01 997CC, 2700mm K07 997CC, 7 Seater, AC/PS C37 1500CC, 11 Seater, AC/PS

Rs. 779,000 Rs. 779,000 Rs. 9,80,000 Rs.1,550,000

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 FAW Sirius S80 (WHITE ,BLACK,STRONG BLUE & SILVER) Grand 1500cc EFI Pet FAW V2 1300cc A/C EFI Petrol CBU

Monthly AutoMark Magazine - International

Rs. 749,000 Rs. 849,000 Rs. 899,000 Rs. 1885,000 Rs. 1069,000

Price updated Sep- 2017

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Interview by Hanif Memon

AutoMark Exclusive

Interview with

FARHAN HAFIZ Director Marketing Division

AL-HAJ FAW

Director of the Marketing Division at Al Haj FAW Motors Pvt. Ltd, Farhan Hafiz is an innovative professional with a successful track record of more than 18 years in the field of Sales and Marketing within the automobile industry. With the skills to drive business growth, capitalize on new revenue potential, and manage all aspects of daily business operations, Farhan Hafiz is a proven proactive leader with refined business acumen and exemplary people skills. Automark: Tell us something about yourself, please: Farhan: Currently serving as the Director of the Marketing Division at Al Haj FAW Motors Pvt. Ltd., for more than three years, I am responsible for the designing and implementation of the company’s short and long term busi ness plan s, w hich i nclu de formulating business plans for new ventures. Before my current position as Deputy Director, I was the General Manager of the same division for a little over three years before which I was employed as a Project Head in Al-Hadi Holdings. I have also served as the Regional Sales Head (South and North Region) at Dewan Farooque Motors Limited in 2007, following which I headed departments at The Aman Foundation and TPL Trakker Ltd.Additionally, I hold a Bachelor of Business Administration (BBA) degree from Hamdard Institute of Management Sciences, and hold an MBA degree from Hamdard University as well. Automark: Give your views on automobile sector of Pakistan? Farhan: The Pakistani Automobile Sector –whether it be the Automobile assemblers, or the vendors, or dealers

or the human resource – is growing and has a supremely bright future. However, what is holding back the development of this auto sector is the lack of infrastructural development in the country. Recent improvement in road network along with the CPEC project will drastically improve the employment opportunities in the land, as the intercity connectivity will significantly improve – resulting in an increase in automobile demand. Keeping in view these developments, I see a really bright future for the Pakistani Automobiles Industry. Automark: How do you see the future of Chinese vehicles in Pakistan? Farhan: The future belongs to Chinese vehicles. In the recent past, the Chinese Automobile industry has spread itself outside of China and the Chinese have realized that to compete in the international market they must produce quality vehicles with durability and with the aid of modern technology. In the last few years, it has become evident that the Chinese have improved their Automobile sector drastically in terms on quality, durability, reliability, and technology. Although, there is still a long way to go to mark their impressions in the

international market, they are still moving forward slowly but surely. Automark: Your views on 'Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) and PAMA (Pakistan Automobile Manufacturers Association)? Farhan: The PAAPAM is an extremely important component of the Pakistani Aut o mob i le i n d ust r y, si n ce i t manufacturers every vehicle’s auto parts and its members provide these parts to the industry along with sound technical support. The me mbe rs have supe rior technological expertise and have done remarkable work for the growth of the industry. The role of PAAPAM and PAMA is extremely crucial in the Pakistani industry. Because of the presence of readily available auto parts, cars are assembled for lower costs. Additionally, FAW wishes to localize car manufacturing in the years to come, and for that, FAW would heavily require support from PAAPAM. Moreover, the biggest benefit of having PAAPAM is the timely delivery of auto parts due to local presence, and it saves up additional cost in lieu of electricity and other overheads. It is worth mentioning that the PAAPAM members have drastically improved

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Monthly AutoMark International their quality – a lot of whose credit must go to the presence of Japanese vendors in Pakistan. Automark: Can you share future plan of FAW in Pakistan? Farhan: Al Haj FAW has a bright future in Pakistan. We have recently made the FAW V2 into a completely locally assembled vehicle, and it has the honor of being called the first Chinese car to be locally assembled in Pakistan. More models are in the pipeline to be assembled locally in Pakistan. FAW is in the process of launching new SUV and Sedan models soon. Till now, FAW had been the authorized distributor of FAW China in Pakistan. However, last year, an MoU has been signed and it has been mutually agreed that within the next two years, a jointventure will be kicked off between the two parties, due to which the Chinese will start investing capital here in Pakistan. As a result, far more work will be done in the development of the Chinese vehicles in the Pakistani industry. This would also aid the users of FAW automobiles in Pakistan, with the presence of technical support and maintenance teams making driving of these cars easy and more efficient. Automark: Give your comments on taxes? Farhan: At present, taxation in Pakistan is a little too much on the higher side, especially the Sales Tax which is levied on imported cars. The Withholding Tax too, is a bit too steep. The recently-introduced tax for CKD, however, is lower, but it forces us to deposit the amount equaling the CKD for a period of three months. This is quite problematic for FAW and other such members of the automobile fraternity. However, we ensure that the effect of this additional burden does not affect our customers directly. We, wish and hope that the government considers this matter and does something to rectify and aid us. However, we are not too worried about the situation, and are moving steadily towards our future goals according to our plans. Automark: What you see the role of EDB and current scenario of this department?

Farhan: The Engineering Development Board has a major role in the development of the automotive sector of Pakistan, and the work done by EDB in the past deserves our applause. However, more emphasis needs to be put on the safety aspect of automobiles in Pakistan, as I believe that is something that the EDB has not put much focus on in the past. Moreover, a policy should be made where a motor vehicle must be changed after a specific period of 5-8 years, which would allow users and customers to benefit from newer technologies more quickly. The EDB should also ensure that every manufactured vehicle in Pakistan, be it a motorcycle, or a truck, or a rickshaw, or a car, should be made according to international standards. Recently, there was news about the EDB being dissolved by the government. This would be a major setback for the Pakistani industry and the government should refrain from taking this step as the role of EDB in the development of every industry of Pakistan will continue to grow for years to come. Automark: Tell us more about the role of auto financing in Pakistan’s auto sale? Farhan: It is not a hidden fact that without car financing, it is extremely difficult for anyone in Pakistan to buy a car. A salaried person or small-business ow n er s/ c om p an i es w o uld fa ce additional difficulty in the purchasing of cars due to their extra-high value. In Pakistan, almost 50% of the population owns cars because of bank and auto-car financing facilities. The bank finance rates are good, due to which it has become easier for Pakistanis to buy and afford the luxury of driving a car. At this juncture, I, on behalf of FAW, would like to would acknowledges and praises the role, quality, support of banks in this regard. Banks, including Bank Alfalah, Meezan Bank Limited, Bank Islami, Al Baraka, and JS Bank, have been supportive of FAW in car financing as well, due to our cars’ increasing quality and durability. Their cooperation and support have drastically aided in the growth of FAW’s sales.

We have recently made the FAW V2 into a completely locally assembled vehicle, and it has the honor of being called the first Chinese car to be locally assembled in Pakistan. More models are in the pipeline to be assembled locally in Pakistan. FAW is in the process of launching new SUV and Sedan models soon

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Monthly AutoMark International

One-way street

CPEC more about expanding China's growth than benefit for Pakistan The China-Pakistan Friendship Highway runs over 1,300 kilometres from the far western Chinese city of Kashgar through the world's highest mountain pass and across the border. For China, the two-lane thoroughfare symbolises a blossoming partnership, nourished with tens of billions of dollars of infrastructure investment. But for many Pakistani businessmen living and working on the Chinese side of the border, the road is a one-way street. “China says our friendship is as high as the Himalayas and as deep as the sea, but it has no heart,” said businessman Murad Shah, as he tended his shop in Tashkurgan, 120 kilometres from the mountain pass where trucks line up to cross between China's vast Xinjiang region and Pakistan. “There is no benefit for Pakistan. It's all about expanding China's growth,” Shah said, as he straightened a display of precious stones. The remote town of around 9,000 is at the geographic heart of Beijing's plans to build a major trade artery — the China-Pakistan Economic Corridor (CPEC) — connecting Kashgar to the Arabian Sea port of Gwadar. The project is a crown jewel of China's One Belt, One Road (OBOR) initiative, a massive global infrastructure programme to revive the ancient Silk Road and connect Chinese companies to new markets around the world. In 2013, Beijing and Islamabad signed agreements worth $46 billion to build transport and energy infrastructure along the corridor, and China has upgraded the treacherous mountain road better known as the Karakoram Highway. While both countries say the project is mutually beneficial, data shows a different story. Pakistan's exports to China fell by almost eight percent in the second half of 2016, while imports jumped by almost 29 per cent. In May, Pakistan accused China of flooding its market with cut rate steel and threatened to respond with high tariffs.

“There are all of these hopes and dreams about Pakistan exports,” said Jonathan Hillman, a fellow at the Center for Strategic and International Studies in Washington. “But if you're connecting with China, what are you going to be exporting?” 'This is not allowed' One answer is Nigeri an “male enhancement” supplements: expired medications which Pakistani merchants in the oasis city of Hotan recently peddled to bearded Muslims walking home from Friday prayers. The products were typical of the kinds of small consumer goods brought by Pakistani traders into Xinjiang: medicine, toiletries, semi-precious stones, rugs and handicrafts. Pakistani businessmen in Xinjiang see few benefits from CPEC, complaining of intrusive security and capricious customs arrangements. “If you bring anything from China, no problem,” said Muhammad, a trader in the ancient Silk Road city of Kashgar, who declined to give his full name. But he said tariffs on imported Pakistani goods are “not declared. Today it's five p er cent , t omo rr ow may be 20. Sometimes, they just say this is not allowed”. Three years ago, Shah was charged between eight and 15 yuan per kilo to bring lapis lazuli, a blue stone. The duty has since soared to 50 yuan per kilo, he said. Customs officials told AFP the “elements influencing prices were too many” for them to offer a “definite and detailed list” of costs. While large-scale importers can absorb the tariffs, independent Pakistani traders have benefited little from CPEC, said Hasan Karrar, political economy professor at the Lahore University of Management Sciences. Alessandro Ripa, an expert on Chinese infrastructure projects at Ludwig Maximilian University Munich, said the highway “is not very relevant to overall trade” because “the sea route is just cheaper and faster”. The project is better understood as a tool for China to promote its geopolitical

interests and help struggling stateowned companies export excess production, he said. 'Maybe it will be good' Traders also face overbearing security in China. Over the last year, Beijing has flooded Xinjiang, which has a large Muslim population, with tens of thousands of security personnel and imposed d r ac o n i a n r u l es t o e l i m i n a t e “extremism”. Businessmen complain they are not allowed to worship at local mosques, while shops can be closed for up to a year for importing merchandise with Arabic script. In June, on the 300 kilometre trip between Kashgar and Tashkurgan, drivers were stopped at six police checkpoints, while their passengers had to walk through metal detectors and show identification cards. Signs warn that officials can check mobile phones for “illegal” religious content. Police officers interrupted an interview in Tashkurgan to demand a shopkeeper hand over his smartphone and computer for inspection, an event he said occurs several times a week. Shah said that when he first arrived in the town, the intrusive security made him nervous: “But now I'm used to it. I almost feel like I'm one of the police.” As he spoke, an alarm sounded. He grabbed a crude spear, body armour and a black helmet off his counter and rushed into the street, where police had assembled over a dozen people for impromptu counter-terrorism drills. The exercises are held up to four times a day. Stores are closed for several days if they do not participate. Back in Kashgar, Muhammad hopes that CPEC will make life better, but he believes the oppressive security will remain an obstacle. He plans to give it another three years. But, he said, he cannot wait forever: “Many people have already gone back.” Courtesy: Daily Dawn

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Our special correspondent from Islamabad

NEW AUTO POLICY 2016-21 IS A TOTAL CONFUSION AND FAILURE ? The most primary objective of the policy was to bring new investment and create healthy competition among the players which tend to be in the benefit of consumer. Almost one and half year has been passed but not a single objective is achieved as yet. On the contrary due to this policy a fresh new investment of about USD 660 million was rolled back by Pak Suzuki Motor Company in March / April 2017. The new automotive policy was formally launched in March 2016, it was announced by Mr. Miftah Ismail, Chairman of the Board of Investment. The policy was aimed at enhancing consumer welfare boosting competition and attracting new player, these are all positive objectives / desires. The negative aspect of the policy is that Government tried to penalized the existing players all of them are Japanese well known brands globally and played a significant role in the development of local auto industry. Unfortunately as a nation, we are not able to visualize frequent global developments and cannot match ourselves with the development speed of the rest of the world as a result we try to control / hide our own shortcoming thru formulation and adoption of polices which are based on biased approach. Our this psychology can also be seen in New Auto Policy 2016-21 but net result is a total failure and confusion. It was claimed in the policy that it envisages development plans for the automobile industry in the country to facilitation higher volumes, attract i n v e s t m e n t , en s u r e e n h an c e d competition and offer high quality in line with emerging opportunities within the country and the region. The prime importance in the policy has been given to the consumer welfare through provision of quality, safety choice and value for money. One of the objectives was that Auto Industry D evel op men t Co mmi tt ee AI DC shall also be reorganized on a logical ground. It was also mentioned / noticed in the policy that at present, customers have to pay the full amount at the time of booking of cars inclusive of duties and taxes where as the cars are delivered to

customer after several months. In cars any price escalation should be paid by the customer before taking delivery, the customers are required to pay price as on the date of delivery there is no institutional mechanism to respond to consumer feed back as vehicles manufacturer do not take note of complaints made by a consumer about quality and frequent escalation of car prices. To address this issue in Auto Development Policy certain measures were also included. Furthermore it was the wish of Board of Investment and Ministry of Industries & Production that well known European car makers should come to Pakistan. In this connection Board of Investment Chairman, Mr. Miftah Ismail himself announced in November 2016, that Renault will start producing vehicle in Pakistan in 2018. He confirmed the French car manufacturer had already

submitted its application to the Government for the manufacture of vehicle. The application is now under process at the Board of Investment and the Engineering Development Board. He also informed that this will be first time that a European car manufacture will set up a plant in Pakistan. Even in last year during Eid ul Azha holiday, Finance Minister Ishaq Dar and Mr. Miftah Ismail personally visited France and met the top leadership of Renault. Now there is total silence about the

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progress of Renault project in Pakistan. As per informed sources Renault feels that New Auto Policy do not offer anything substantial for a new car project in Pakistan and now having no interest in this market. German car maker Audi a company of Volkswagen Group reportedly has approached the Board of Investment with a proposal to start an OEM plant in Pakistan and submitted a letter of intent to the Board of Investment for consideration. At the same ti me Vol kswagen commercial vehicles is also showed interest to setup a manufacturing / assembly plant in Pakistan. It is learnt that Audi – Volkswagen Group wanted to invest in MKD / SKD (Medium Knocked Down / Semi Knocked Down) model with only assembly in Pakistan. However, that proposal did not match with the criteria for incentives as laid down in auto policy for new entrants. The most primary objective of the policy was to bring new investment and create healthy competition among the players which tend to be in the benefit of consumer. Almost one and half year has been passed but not a single objective is achieved as yet. On the contrary due to this policy a fresh new investment of about USD 660 million was rolled back by Pak Suzuki Motor Company in March / April 2017.

The second failure of the policy was witnessed in the case of Dewan Farooque Motors Limited which has applied for the revival of its car assembly plant and requested for grant of Brownfield Investment under Auto Development Policy for the production of Shahzore (LCV) and Sangyang (SUV’s) vehicles. There was some confusion / reservation of Engineering Development Board about the total period of closure of the DFML assembly plant. The matter was put on the 24th meeti ng of t he A ut o I nd ust ry Development Committee (AIDC). The committee held a detailed discussion on t he app l icat i on o f DF ML and unanimously approved the grant of Brownfield status to DFML. But Engineering Development Board refused to implement this approval on the pretext that this approval can be effective only after the suitable amendment in the auto policy but presently no change is possible since it is mentioned in the policy that it can be revised after two years while it is only in its first year of implementation. Resultantly all activities at DFML plant was suspended. Simultaneously M/s. Al-Haj FAW Motors (Pvt) Ltd, manufacturer of trucks, prime mover, light commercial vehicles and vans had also applied for a Greenfield status to manufacture cars. EDB had sought advice from the

HRL Motors is among the new entrants but they did not make any tangible progress towards the development of assembly plant. However they unveil their first CBU imported car Zotye Z100 in Pakistan on a very high price tag and without any after sale service or spare parts availability arrangements. I do not think that they have any plan to enter in CKD business in near future In December 2016, Pak Suzuki managing director Hirofumi Nagao called on then Finance Minister to discuss his company future investment plan and inform him that Pak Suzuki is ready to invest 660 million in Pakistan to set up a second plant. The new project will be completed within two years and may start production by the end 2018. But nothing was offered to the existing players in New Automotive Policy 201621 so Pak Suzuki did not make fresh investment in new plant.

committee keeping in view the investment categories i.e Greenfield Investment or Brownfield Investment as provided in the New Auto Policy. The committee was of the view that the policy in the present form and shape had no room for declaring an existing player Greenfield Investment. Auto Industry Development Committee (AIDC) 25th meeting was held on 18th May 2017. So far it was the last meeting of the Auto Industry Development Committee (AIDC). It seems that Auto

Industry Development Committee (AIDC) has no role in implementation / decision taken under the new automotive policy 2016 – 21 by the ministry of industry and production. Although it was mentioned in the auto policy that Auto Industry Development Committee (AIDC) shall continue to play its advisory role. Furthermore in a surprise move Government dissolved the Engineering Development Board for alleged involvement of its staff in corruption and malpractices as hurdles in the way of billions of dollars in investment flows into automobile sector, in June 2017. Engineering Development Board was not promoting industry, it was protecting it. According to Garry Pussell – Ashraf Khan Study out of the 1006 products which Engineering Development Board listed as locally produced 91 percent had only one producer, 405 percent had two producers and only 4 percent had three or more producers. This indicated a highly protective regime that has badly hurt the consumers, particularly in auto sector. It is observed that after the disbanding of Engineering Development Board and mysterious silence of Auto Industry Development Committee (AIDC) Secretary of Industry and Production and Secretary Board of Investment took direct charge of implementation of New Auto Policy 2016 – 21. They both act very swiftly, which was a very positive sign. They invited all new entrants in a hurriedly called meeting on 6th June 2017 in Islamabad at ministry of Industries and Production office, having no prefixed agenda. Interestingly the team of engineering Development Board which is supposed to be disband were also present and responding all the question and quarries raised by new entrants.

In this meeting the following companies were present 1. Cavalier Automotive Corporation (Pvt) Ltd. 2. Foton JW Auto Park (Pvt) Ltd. 3. Habib Rafiq (Pvt) Ltd. 4. Hyundai Nishat Motors (Pvt) Ltd. 5. Khalid Mushtaq Motors (Pvt) Ltd. 6. Kia Lucky Motors Pakistan Ltd.

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continued from previous page 7. Pak-China Motors (Pvt) Ltd. 8. Regal Automobile Industries Ltd. 9. United Motors (Pvt) Ltd. Subsequently second meeting was also called on 12th July, 2017, In between two meetings. Ministry has granted Greenfield status to the following new entrants. 1. Kia Lucky Motors Pakistan Ltd. 2.Hyundai Nishat Motors (Pvt) Ltd. 3.United Motors (Pvt) Ltd. 4.Regal Automobile Industries Ltd. If we analyzed all company’s affairs, very minutely which were granted Greenfield status. We will find a very discouraging situation. The ministry of industries has awarded Greenfield investment status to Regal Au to mobi le In dustries Lt d f or establishing its plant in Pakistan. Tayaba Motors has challenged the Greenfield status of Regal Automobiles Industries Ltd in the court of law, claiming it was already manufacturing same variants of pickups and passenger vans. Master Motors, on the other hand, has challenged the process initiated by the Engineering Development Board to grant Greenfield status to Foton JW Auto Park (Pvt) Ltd under the new policy, which provides attractive tax and duty concessions for new industry players. It argued that Foton JW Auto Par k (Pvt) L td was al re ady manufacturing trucks and it could not be treated for Greenfield Investment under the new policy. Master Motors further claimed that there was no joint venture with the Chinese company according to records of the Securities and Exchange Commission of Pakistan. As a result of work on projects being developed by Regal Automobile Industries (Pvt) Ltd and Foton JW Auto Park (Pvt) Ltd had come to a halt due to the court cases. It is very strange in case of the conflict between Master Motors and Foton JW Auto Park (Pvt) Ltd that Shahnawaz Motors which is one of the oldest automobile trading company in

Pakistan, represents Daimler AG Germany and authorized general distributor of Mercedes Benz Passenger Car since 1958, also claim to be an authorized distributer of Foton Motors Group China. Could we understand that New Auto Policy 2016-21 is making back lash. It discourages local assembly and encourages CBU imports because no one is challenging Shahnawaz Motors. Same case with the Regal Automobile Industries (Pvt) Ltd. they have already established their dealers network and selling vehicle thru CBU Imports. Nobody can make objection on their trading business nobody can stop them but unfortunate they stopped the further establishment of their automobile plant due to court cases. How new auto policy can help them out to start production in Pakistan. It was also learnt through informed sources that Hyundai Nishat Motors (Pvt) Ltd and Kia Lucky Motors Pakistan Ltd did not sign the new entrant agreement which is a mandatory to be signed between the Government and the investor before the start of plant. The reason being they and their principals, having certain reservation upon this agreement’s contents.

early establishment of the assembly plant. Now only remain the United Motors (Pvt) Ltd who is in high esteem and hopeful that their plant will be ready for the assembly of vehicles by the end of December 2017. According to informed sources United Motor’s management are quite satisfy with the EDB and ministry of Industry and production, they also appreciated these departments for cooperation. They are going to sign agreement with the ministry very soon and keep working on fast track to complete their assembly plant on time. Habib Rafiq (Pvt) Ltd – HRL Motors is among the new entrants but they did not make any tangible progress towards the development of assembly plant. However they unveil their first CBU imported car Zotye Z100 in Pakistan on a very high price tag and without any after sale service or spare parts availability arrangements. I do not think that they have any plan to enter in CKD business in near future. The two other new entrants’ i.e Pak-China Motors (Pvt) Lt d a nd C av al i e r A u t o m ot i v e Corporation (Pvt) Ltd has made very little progress in this direction and they have to go a long way.

M/s. Al-Haj FAW Motors (Pvt) Ltd, manufacturer of trucks, prime mover, light commercial vehicles and vans had also applied for a Greenfield status to manufacture cars. EDB had sought advice from the committee keeping in view the investment categories i.e Greenfield Investment or Brownfield Investment as provided in the New Auto Policy. The committee was of the view that the policy in the present form and shape had no room for declaring an existing player Greenfield Investment. Surprisingly Ministry keeps these documents very secrete. In my opinion the draft of this agreement should be public so every new investor should know the bindings / responsibilities before the entry. Furthermore both companies are thinking to import the vehicle in CBU condition again question arises that unknowingly, New Auto Policy 2016 – 21 is pushing the new entrant towards CBU imports rather to attract facilitate them for the

However Khalid Mushtaq Motors (Pvt) Ltd is consistently progressing well. It is reported that their assembly plant building is almost complete. They are planning to launch their local product in any time in first quarter of 2018.

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By Nabeel A. Khan, ETAuto - India

This Auto Dealership Added Rs 100 crore to Its Revenue Every Year

Putting the growth further in fast lane, now Bimal Auto has over 20 outlets with a turnover of Rs 850 crore. Going to the next level, Bimal Auto aims to achieve a turnover of Rs 1200 crore by 2020. Naveen Sarawgi tells ETAuto that the company aims to open at least one or two dealerships every year. At 25, Naveen Sarawgi took charge of Bimal Auto Agency India Private limited ( BA AI PL) and es tabl ished the company’s first Marut i Su zu ki dealership in Bangalore in 2002. Growing much faster than Maruti Suzuki itself Bimal Auto opened seven dealerships in the area with a turnover of Rs 250 crore by 2010. Putting the growth further in fast lane, now Bimal Auto has over 20 outlets with a turnover of Rs 850 crore. Going to the next level, Bimal Auto aims to achieve a turnover of Rs 1200 crore by 2020. Naveen Sarawgi tells ETAuto that the

company aims to open at least one or two dealerships every year.

Strong Footing About 100 years ago, a young and zealous entrepreneur Chandmal Sarawgi moved from Rajasthan to North East to set up the region’s first petrol pump in co llabor ati on wit h t he Br it ish government. Seeing through the ups and downs, Chandmal Sarawgi gave a strong base to his successors. Late Chandmal Sarawgi was one of the pioneers of petroleum retail in the country. The family was awarded several

petrol pumps by the Britishers and petroleum retail continued to be the mainstay for the family business till 1978. And even today the family operates about 10 petrol pumps in and around Guwahati. Today Chandmal’s children and grandchildren have expanded the business over 30 automobile dealerships and ten petrol pumps spread across North East and Karnataka. For Sarawgis, no constraints were strong enough to wreck their confidence and commitment that reflects from their fineness in transcending geographical and domain

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Currently, Bimal Auto gets 12 percent of its overall turnover from service and spares. However, it (service and spares) contributes 50 percent to its total profits. During the last two-three years, Bimal Auto’s sales to service ratio has remained constant. “However, the earning from service has been reduced considering the less maintenance that is required in modern cars limitations. As the next generation took over, Chandmal’s son Bhagchand Sarawgi wanted to expand the family business in a different line. In 1978, he started a small spare parts retail shop in Guwahati. He went on to take dealership of Bajaj Tempo, selling Matador vans. Soon he gave up the Matador dealership after being awarded the Maruti dealership in 1984. They were one of the very first dealer partners of Maruti Suzuki which changed the Indian automobile landscape. “We were amongst the first ten dealerships appointed by Maruti in India,” says Naveen Sarawgi, third generation entrepreneur. Till 2001, the family business remained within Assam and soon Naveen Sarawgi, the third-generation entrepreneur after completing education from Rochester Institute of Technology, New York, undertook the first ever big expansion plan outside Assam. Naveen, about 25years-old then, set up his first Maruti Suzuki India dealership in Bangalore in 2002 which he expanded further. In 2010, Sarawgi brothers split their business into two. Naveen’s cousins and

uncles took helm of the Assam business run under Bimal Auto Agency and Chandmal Sarawgi & Co while Naveen and his father Bhagchand Sarawgi took over the business in Bangalore and surrounding areas with the name of Bimal Auto Agency India Pvt Ltd. Since 2002, Naveen has been mainly pulling the business in Bangalore as his father was already on the verge of retirement. In the dealer fraternity, Naveen has already been able to make an enviable place as in the last seventeen years he expanded his dealerships to over 20 outlets around the Bangalore. “Currently, we (BAAIPL) operate out of 19 locations in and around Bangalore for new car sales, service, Nexa, driving school, used cars. We are also dealers for Hero MotoCorp and have three outlets,” Naveen tells ETAuto. Bimal Auto Agency has grown its turnover exponentially from Rs 250 crore in 2010 to Rs 850 crore now. Naveen expects this to reach Rs 1200 crore by 2020 and also plans to open at least one or two dealerships every year. “We ensured that we grew at a faster pace than Maruti's growth in the city. The main strategy was timely expansion

of outlets, motivated sales team and adequate stocks. We tried to introduce technology interventions way before our team was ready to adapt and those did not work. It costed us quite a bit of time and money,” Naveen explained.

Strategy that Keeps Ahead According to Naveen what helped grow the business fast is keen personal inv olvement i n the d ay -t o-d ay operations, timely and strategic expansion of outlets at reasonable costs, proper financial management without any diversion or dilution of business funds and keeping debt-equity ratio at healthy levels. BAAIPL, as a core strategy, has been investing time and effort in recruiting and grooming good manpower. Trusting their employees and giving them decision making powers and competitive compensation has also reaped well. BAAIPL has also almost completely digitized its operations by arming all the staff with tablet. The company now barely uses paper at all and aiming to go completely paperless soon. This move is not only environment friendly but also

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As the next generation took over, Chandmal’s son Bhagchand Sarawgi wanted to expand the family business in a different line. In 1978, he started a small spare parts retail shop in Guwahati. He went on to take dealership of Bajaj Tempo, selling Matador vans. Soon he gave up the Matador dealership after being awarded the Maruti dealership in 1984. helps the management to use the data and information to predict and expand business. The other important step that Bimal Auto took is ensuring a high level of customer satisfaction through trust and transparency in all transactions. Currently, the company employees a total of 2500 people and has a 100seater call centre dedicated to take care of its customers. This call centre takes care of in-bound calls, service reminders, insurance reminders, post sales and service feedback. “Earning customers’ trust is key. Faster response to customers’ queries or concerns is very important. Maintaining high levels of transparency in all transactions is also very important. The result is that over one-third of our sales comes from repeat customers and referrals from customers,” says Naveen Sarawgi, 41-year-old promoter of Bimal Auto Agency. Bimal Auto gets most of its customers from a 10-km radius of its dealerships so it keeps doing events and road shows to be closer to customers. “We keep in touch with existing customers to ensure that we get repeat and referral business. We have invested in website and run various on-line campaigns on Google and social media platforms. Our ‘virtual dealership’ gets as many views or visits as our physical dealerships. Almost one-third of our inquiries are generated from various online channels and results in nearly 10% of our sales. Our higher number of walk-ins is also a result of customers finding us online,” Naveen explained. For Bimal Auto, 30 percent of the customers are either repeat or come from referral. He further says that a good and motivated team is the key. Keeping operating costs in check is very important. As seen in many cases of diversification to other businesses, Naveen says: “It’s important to not divert business funds to other avenues like real estate, shares etc.”

Money Makers It’s a well-known fact that automobile dealership business is probably not the best in terms of return on investment

and Bimal Auto also has to struggle and stitch a new strategy every time to keep ahead in this direction. Traditionally, the dealership would get majority of its profit share from service and spare parts but with increasing manpower cost this has been moving south ward, so where does Bimal Auto look at to enhance its profitability? “We expect the used car business to give better return and we will expand there; however, GST has put a pressure on this side of the business too,” says Naveen who currently has only two used car dealerships and aims to double this business in two years. Currently, Bimal Auto gets 12 percent of its overall turnover from service and spares. However, it (service and spares) contributes 50 percent to its total profits. The company’s sales to service ratio is 1:15, which means it services 15 cars for every new car sold, this is on the higher side of the industry standards. During the last two-three years, Bimal Auto’s sales to service ratio has remained constant. “However, the earning from service has been reduced considering the less maintenance that is required in modern cars as well as an exponential increase i n manpower costs -particularly technical and highly skilled manpower,” Naveen explains. For the last two-three years, Bimal Auto’s sales volumes and revenues have grown by an average of 15 percent a year. Bimal Auto has been able to tap the new opportunities very quickly by selling to companies like Ola and Uber, and also with Nexa outlets catching the premium buyers.

Manpower Cost Employee cost has been one of the key challenges. According to Bimal Auto,

the manpower cost has gone up in a big way -- at least by 15-20 percent each year. This is largely due to statutory increase in wages as well as competitive pressure to pay more on account of shortfall of experienced employees -- particularly sales persons, service advisors, technicians, customer support executives, team leaders and managers. At Bimal Auto, almost 40-50 percent of gross margins are used for human resources, including salaries, incentives, training etc.

Mistakes & Learnings “We invested in a few small outlets and workshops. A few of them we had to close down, as they were not very productive. And a few we had to shift to larger premises as we underestimated the business potential. These were calculated risks,” Naveen says. The learning has been any decision should be based on strong study and backed by right projection. “We need to stay relevant for our customers and continue to add value. We al so need to impr ove t he productivity or output of our every manp ower in order to remai n profitable,” he adds.

Naveen Sarawgi’s Tips for Dealers 1. Fair, competitive and strong HR practices. A motivated team will be the key to customer satisfaction and profitability. 2. Fair and transparent to customers. It will result in repeat and referral business. 3. Keep a watch on internal accounting and finances. It is very easy to lose money if not tracked properly. 4. Money allocated to dealership business should not be diverted to other businesses. It is a recipe for disaster. 5. Important to delegate and fix accountability to the team. If you try to control too much, it will not work. It is important to have a systematic approach to managing the dealership at a strategic level and not too much at the operational level. Courtesy: ETAuto - India

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST Rs. 41,800/= Rs. 43,800/=

70cc Motorcycle Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1

Retail Price Rs. 44,000/= Rs. 63,500/= Rs. 67,500/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 44,500/= Rs. 44,700/= Rs. 55,000/= Rs. 44,000/= Rs. 44,000/= Rs. 46,950/=

125/150 cc Motorcycle No.

Brand & Model Name

Retail Price

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

Honda CG-125 STD Honda CG-125 DX Honda CD-125 Dream Honda CB-150F United US-125 Euro 2 Road Prince 125cc RP Twister 125cc RP WEGO 150cc Super Power SP 125cc Super Power Archi 150cc Unique UD 125cc Unique UD 150cc Super Star SS-125 Super Star SS-125 DLX Hi-Speed SR-125cc Hi-Speed SR-150 Infinity Metro MR-125 Regular Ravi Piaggio Storm 125 Yamaha YBR-125Z Yamaha YBR-125G Yamaha YBR-125 Crown CR-125 Zxmco ZX-125-Euro II

Rs. 105,500/= Rs. 125,000/= Rs. 106,500/= Rs. 159,000/= Rs. 70,000/= Rs. 67,000/= Rs. 108,000/= Rs. 180,000/= Rs. 69,000/= Rs. 140,000/= Rs. 70,000/= Rs. 165,000/= Rs. 68,800/= Rs. 67,000/= Rs. 72,000/= Rs. 175,000/= Rs. 67,000/= Rs. 108,000/= Rs. 115,900/= Rs. 133,900/= Rs. 129,900/= Rs. 65,000/= Rs. 71,600/=

Sr./ No. 13. 14. 15. 16. 17. 18. 19.

Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Ms Jaguar MS 70 Euro- II Ms Jaguar MS 70

( DREAM)

Zxmco ZX-70 Regular

Retail Price Rs. 43,500/= Rs. 44,500/= Rs. 42,000/= Rs. 45,600/= Rs. 41,800/= Rs. 43,800/= Rs. 42,300/=

100cc/110cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Brand &Model Name Honda Pridor United US-100 Euro 2 Road Prince 110cc Unique UD-100 Super Power SP-100 Hi-Speed SR-100 Hi-Speed SR 100 Alpha Super Star SS-100 Crown CR-100 MS JAGUAR MS 100 Zxmco ZX-100-SS

Retail Price Rs. 86,000/= Rs. 50,000/= Rs. 48,500/= Rs. 73,000/= Rs. 60,000/= Rs. 47,500/= Rs. 77,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/=

Suzuki Motorcycle Sr./ Product & Model Name No. 1. SD110 Sprinter ECO 2. SD110 Raider 3. GS-150 SE Euro-II 4. GD 110 Euro-II 5. GD 110s Euro-II

Retail Price Rs. 98,400/= Rs. 101,400/= Rs. 158,500/= Rs. 119,000/= Rs. 131,000/=

Heavy Bikes Sr./ Product & Retail Price No. Model Name 1. Inazuma GW 250 Rs. 725,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Zxmco ZX-200cc Rs. 2,45,000/= 5. Bandit GSF650SA Rs. 1,550,000/= 6. Super Power SP 200cc Rs. 2,00,000/=

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Price update: Aug-2017

International Automotive Industry - Update

Monthly AutoMark

Honda is preparing a new Hybrid powertrain for its U.S.-Built car due in 2018

China's Dongfeng Motor has no M&A plan for Fiat Chrysler: Dongfeng spokesman Dongfeng Motor Group has no plans at the moment to acquire all or part of Fiat Chrysler Automobiles NV (FCA), a spokesman of the Chinese automaker said on Thursday in response to a question by Reuters. “We currently have no plans,” said Zhou Mi, a Wuhan-based spokesman for Dongfeng Motor. Zhou was responding via email to a question whether Dongfeng Motor was interested in acquiring all of FCA, just Fiat or Chrysler only, or a specific brand or technology that belongs to FCA. Dongfeng Motor Group is based in Wuhan. Dongfeng Motor was one of several Chinese automakers cited in an Automotive News report on Monday that said representatives of "a wellknown Chinese automaker" had made an offer this month for FCA and that other potential Chinese suitors were interested. Other Chinese car makers mentioned in the Automotive News report included Great Wall Motors, Zhejiang Geely Holding Group, and Guangzhou Automobile Group.

It looks like a renewed hybrid push is in the works at Honda. The folks at Autocar have spotted what is apparently a new hybrid Honda powertrain roaming about. Currently living under a Honda City test mule (that's essentially a three-box Fit Honda sells primarily in Asia), the new hybrid 'train will reportedly debut in a new, dedicated hybrid model built and presumably sold right here in America. Of course, this wouldn't be the first Honda hybrid to come out of America, but unlike that other one, don't expect this to star in many Nurburgring lap videos. Utilizing a dual-motor-plus-combustion layout, the new semi-electric engine is

YAMAHA LAUNCHES FAZER25 The 20.9hp model has made its debut on the Indian market The gradual convergence of bikes intended for the India and those sold in more traditionally ‘developed’ markets is an ongoing theme at the moment. Not only are we seeing European firms like BMW, KTM and Triumph doing production and R&D deals with Indian companies, but bikes developed for India are looking increasingly credible for a worldwide market. Think of things like the Royal Enfield Himalayan - coming in Euro4-spec to

the UK soon - or the upcoming twincylinder Royal Enfield retro models, which look set to be budget alternatives to a Triumph Bonneville. How about the Bajaj-built KTM Duke 390 and RC390? And then there’s the TVS-built BMW R310R and R310GS, not to mention the soon-to- be-la unched RR 31 0S sportsbike. Now Yamaha has launched the new Fazer25, spied in near-finished form earlier this month, onto the Indian market.

Flexible Batteries Power The Future of Wearable Technology

Major Chinese Automakers The rapid development of wearable Deny Plans to technology has received another boost Acquire FCA from a new development using graphene Three of China’s largest automakers have said they have no plans of acquiring FiatChrysler Automobiles (FCA). Earlier this week, reports surfaced saying a Chinese automaker had made a bid on acquiring FCA, but it was unclear what company it was. Now, Guangzhou Automobile Group, Geely Automobile Holdings, and Dongfeng Motor Group have all come forward saying they have no plans to acquire FCA. Based on the earlier reports, one source indicated China’s Great Wall Motor Co. had visited FCA’s headquarters in Michigan to discuss a potential acquisition. According to Automotive News, Great Wall is not one of the companies that have stepped forward denying plans.

said to be akin to the one found in Honda's current Accord Hybrid—a 2.0liter four-pot and an electric motor good for a combined 212-horsepower and, more importantly, 48 miles per gallon combined. The move marks yet another step in the seemingly never-ending march towards the electrified future of motoring, a future the Japanese automaker is embracing with open arms. "In the long term, electrified vehicles are key to the future of carbon-free mobility," said Honda CEO Takahiro Hachigo. Honda will reportedly take the wraps off of its new, built-in-the-USA hybrid sometime in 2018.

f or prin ted electron ic devi ces. New research from The University of Manchester has demonstrated flexible battery-like devices printed directly on to textiles using a simple screen-printing technique. The current hurdle with wearable technology is how to power devices without the need for cumbersome battery packs. Devices known as super capacitors are one way to achieve this. A super capacitor acts similarly to a battery but allows for rapid charging which can fully charge devices in seconds. Now a solid-state flexible supercapacitor device has been demonstrated by using conductive graphene-oxide ink to print onto cotton fabric. As reported in the journal 2-D Materials the printed

el e ct ro d e s e xhi b i t ed e xce ll e nt mechanical stability due to the strong interaction between the ink and textile substrate. Further development of graphene-oxide printed supercapacitors could turn the vast potential of wearable technology into the norm. High-performance sportswear that monitors performance, embedded health-monitoring devices, lightweight military gear, new classes of mobile communication devices and even wearable computers are just some of the applications that could become available following further research and development. To power these new wearable devices, the energy storage system must have reasonable mechanical flexibility in addition to high energy and power density, good operational safety, long cycling life and be low cost.

www.automark.pk | September-2017 | Page 45

Technical Support Program - Media Coverage

Monthly AutoMark International

Paapam looking to extend JICA, SMEDA Technical Support Program beyond 2019

A Three years Technical Support Program for the Automotive Parts Sector in Pakistan, where the members were upgraded in terms of the best industrial practices to increase efficiency of machinery, labor, and other human resources. Under the guidance and aid of the Japan International Cooperation Agency (JICA) and Small and Medium Enterprises Development Authority (SMEDA), has successfully completed its first term, it was revealed in a ceremony. The introductory workshop of the project was held at a local hotel to appreciate the successful organizations, distribution of the certificate and create awareness for 2nd term program . Chairman PAAPAM, Mashood Ali Khan, was invited as Chief Guest for the occasion. Fuad Hashim Rabbani, CEO of Smeda, Ishfaq Ahmed, DGM, B&SDS of Smeda and Hiroshi Kanneki, chief of the JICA team, a number of the representatives from Paapam, EDB and OEMs

were present on the occasion. Fuad Hashim Rabbani, congratulated JICA, PAAPAM and SMEDA team to complete first term of the four years project with tangible improvement in productivity and quality of the auto parts production in Pakistan. He informed that auto sector is one of the rapid growing sectors in Pakistan. Ishfaq Ahmed acknowledged the everlasting support of JICA for upgradation of Pakistani SMEs. He said that the auto sector was one of the fastest growing sectors in Pakistan, which was contributing towards the nation’s economy through employment and revenue generation. Yoshihisa Onoe, the senior representative of JICA, in his address, assured to continue the technical support for Pakistan’s industry to compete the world market in respect to technical knowhow and the modern manufacturing techniques. He informed that to implement SMEDA-JICA project for

technical support of the auto parts manufacturing industry of Pakistan, a team of five Japanese experts having more than 40 years’ experience in Auto industry has been brought to Pakistan for a long period up to 4 years. He acknowledged that JICA’s collaboration with SMEDA and PAAPAM had proved to be very useful for the local auto parts’ manufacturing industry. Mashood urged JICA and SMEDA to extend such a technical programme for the auto part manufacturers and vendors beyond the three terms in order to upgrade more vendors and added that after this programme, PAAPAM skill development is able to transfer of knowledge others remain members in future too. He further informed that under this ongoing technical support programme, JICA expert will select 30 more vendors to enhance the capacity of the auto parts manufactures.

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Automotive Industry - Pakistan

Pakistan Automotive Industry An overview and history Pakistan’s automotive industry is the one of the fastest growing industries of the country, accounting for 4% of Pakistan's GDP and employing a workforce of over 1,800,000 people. Currently there are 3200 automotive manufacturing plants in the country, with an investment of Rs. 92 billion (US$880 million) producing 1.8 million motorcycles and 200,000 vehicles annually. Its contribution to the national exchequer is nearly Rs. 50 billion (US$480 million). The sector, as a whole, provides employment to 3.5 million people and plays a pivotal role in promoting the growth of the vendor industry. Pakistan’s auto market is considered among the smallest, but fastest growing in South Asia. Over 180,000 cars were sold in the fiscal year 2014-15, rising to 206,777 units fiscal year 2015-16. At present, the auto market is dominated by Honda, Toyota and Suzuki. However on 19 March 2016, Pakistan passed the "Auto Policy 2016-21", which offers tax incentives to new automakers to establish manufacturing plants in the country. In response, Renault-Nissan, Kia Motors, Audi, Volkswagen and Hyundai have expressed interest in entering the Pakistani market. Recently category- A Greenf ield investment status has been granted to four auto investors i.e Nishat Motor (Pvt) Ltd., for Hyundai vehicles, Kia

Lucky Motors Pakistan Ltd., for KIA vehciles, Regal Automobiles Industries Ltd., for DFSK LVC’s and United Motors (Pvt) Ltd., while more the 5 new investors are wating for approval from ministry of industries. Pakistan has not enforced any automotive safety standards or model upgrade policies. Obsolete vehicles including the Mehran, Bolan, and Ravi continue to be sold by Pak Suzuki.

History

1950s Pakistan produced its first vehicle in 1953 at the National Motors plant in Karachi, according to the Ministry of Industries & Production. The plant was opened in conjunction with General Motors who arranged the facilities for the production of Vauxhall cars and Bedford trucks. Subsequently, buses, light trucks and cars would be assembled at the same plant. In the same year, Ford trucks partnered with Ali Automobiles where

Ministry of Industry Government of Pakistan

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Monthly AutoMark International they introduced Ford Anglia, Ford pickups and the Ford Kombi. Exide Pakistan also began production of car batteries in 1953. Haroon Industries partnered with Dodge Motors in 1956.

1960s In 1961, Allwin Engineering introduced precision auto parts to the Pakistani auto market. In 1962, Lambretta partnered with Wazir Ali Engineering to begin production of the Lambretta TV200 scooter while Kandawala Industries introduced Jeep CJ 5, CJ 6, CJ 7. In 1963, General Tyre Pakistan began production in Karachi while Hye Sons began production of Mack Trucks. In 1964, Rana Tractors began producing Massey Ferguson Tractors while the famous Vespa scooter and rickshaw were introduced by Raja Auto Cars. In 1965, Jaffer Industries and Mannoo Motors began operations.

1970s The 1970s saw nationalization of many companies. In 1972, the Pakistan Automobile Corporation or PACO was formed. Many companies were bought out or merged into others. Wazir Ali Engineering was renamed to Sindh Engineering, Ali Autos to Awami Autos, Haroon Industries to Republic Motors, Ghandara Motors to National Motors, Hye Sons to Mack Trucks, Kandawala Industries to Naya Daur Motors, Jaffer Industries to Trailer Development Corporation and Rana Tractor to Millat Tractor. Dawood Y amaha in troduced Y amaha motorcycles in 1974, and in the same year Beta Engineering started producing diesel engines. In 1976 Suzuki Motor Cycle launched by Sindh Engineering. Saif Nadeem Kawasaki launched K awasaki mot orcy cles in 19 77 while Suzuki Jeep was manufactured by Naya Daur Motors.

1980s In 1980, Awami Mot ors began manufactured Suzuki pickups while Sindh Engineering began producing Mazda Trucks. In 1981, Agri auto Industries introduced production of local auto parts while in 1982, Suzuki began production of vehicles. In 1983, the Vendor Development & Technical Cell or VDTC was formed along with AlGhazi Tractors which was introduced by Fiat. In 1986, Hinopak Motors began as a

joint venture between PACO, AlFuttaim, Hino Motors & TTC. In 1987, Ghandara Nissan began production of Nissan Diesel Trucks. In 1989, Pakistan Association of Auto Parts & Accessories Manufacturers (Paapam) began operation.

1990s The industry was highly regulated until the early 1990s. Following deregulation, the decade witnessed a huge boom in auto production, as nationalization was abandoned in favor of privatization. Japan acquired the 40% shares of Pak Suzuki in 1991. In 1993, the Indus Motor Company began production of Toyota Corollas. In 1994, the Pakistan Automotive Manufacturer Association formed, and Honda Atlas introduced manufacturing of the Honda Civic. In 1995, the Engineering Development Board inaugurated the PAP show.

2000s From 2001-02 , some Pakistani importers started import of Chinese CBU bikes in Karachi, due to custom duty cut by Finance minister Shaukat Aziz after 2 decades and Chinese firms also made copy of small Japanese bikes specially famous of HONDA CD70, in the Same period 5 Karachi based units start local assembling of CD70 Replica these were GUANGTA SITARA, ROCKET, JINAN, SUPER STAR, & STAR. From 2002 to 2007, auto sales reached record sales year after year, reaching a peak of 195,688 sales in 2007, thanks to rising car financing up to 7080% by banks and low interest rates coupled with rising rural purchases. From 2007 to 2009, the auto sector witnessed reduce sales amid high interest rates and Yen appreciation against the Rupee. In 2007, the automotive industry made up 2.8% of Pakistan's GDP and contributed 16% to the manufacturing sector. The 2000s also saw the introduction of dual fuel options to run both on Petrol and CNG, which is more affordable and cheaper than petrol in the country. 2010-present From 2010, many small auto units of bikes closed due to stiff competition between the Assemblers but still some Assemblers applied for the approvel to start assembly, Currently 3 Japanese, and 7 Chinese Assemblers are making profits while 40+ units are not in good position. In

2010 the sales rebounded and began increasing again. The auto industry predicted a growing demand in Pakistan and invested over Rs20 billion during this decade. Motorcycle production hit a record level of over 1.5 million units in 20102011. In 2015, the Auto Policy 2016-21 was introduced, to help introduce new entrants into the Pakistan auto industry, which has traditionally been dominated by Honda, Toyota and Suzuki. Recently Suzuki, Toyota and Honda have introduced new model of sedan and SUV’s vehicles while Suzuki introduce some imported model of sedan cars in Pakistan. Atlas Honda, Pak Suzuki and Yamaha have introduced heavy bikes new model while many local bike assemblers have also introduced heavy bikes with t he collaboration with Chinese counterpart. The auto industry remains the second largest payer of indirect taxes after the petroleum industry in Pakistan. In recent years few new Chinese commercial vehicles firms establish auto business in Pakistan, Dysin Automobile introduced Sinotruk and Zhong Tong luxury intercity buses while Master Mot ors introduced and started assembling of Yutong luxury intercity buses, Hinopak also introduced Kazay luxury buses and Afzal Motors have started assembly of Daewoo intercity buses. At present, there are 10 cars for every 1000 people in Pakistan. This is one of the lowest ratios among emerging economies, which itself speaks of high potential of growth. Rising per capita income with changing demographic distribution and an anticipated influx of 30 to 40 million young people in the economically active workforce in the next decade will provide a stimulus to the industry to ex¬pand and grow.

Active manufacturers Honda, Suzuki, Indus Motors, Al Haj FAW, Ghandhara, Ghandhara Nissan Hinopak Motors, Master Motors, Volvo PakistanAfzal Motors, Al-Ghazi, Millat Tractor, Orient, Atlas Honda, Yamaha Pakistan,United, Unique, Super Star, Super Power, Road Prince,Crown, DYL, Fateh, Ghani, Plum Qingqi, Omega Industries, Raazy, Ravi, Sazgar, Sohrab, Super Asia Motors. Source: Wikipedia

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International Automotive Industry - Update

Monthly AutoMark

Toyota, Mazda tighten embrace amid roiling change Yamaha Sales Go Up Worldwide Yamaha's sales in the US have taken a hit, similar to trends Harley-Davidson had reported in the company's sales report for the second quarter of 2017. New motorcycle sales in the US were low due to a slowdown in the industry, and lack of buyer interest in motorcycles. Now, Yamaha seems to be reporting a similar fate with the Japanese twowheeler giant's sales in the US. Not surprisingly, markets in Asia continue to be on the rise, leading Yamaha's overall international sales. Overall, Yamaha has reported a 6.6 per cent increase in net sales of motorcycles for the first half of 2017. Unit sales in emerging markets such as Vietnam, the Philippines, Thailand, and Taiwan increased, and despi te decreasing in Indonesia due to the market slump there, the unit sales figure increased overall. Net sales increased, and operating income increased significantly thanks to the effects of product mix improvements and cost reductions, a release from Yamaha said. In India, Yamaha sold nearly 2 lakh twowheelers from April to June 2017, but overall growth has remained flat for India Yamaha this year. In India, Yamaha is all set to launch the new Fazer 250, the full-faired version of its quarterlitre FZ25. Globally, the most anticipated Yamaha launch will be unveiled at the EICMA show later this year, when Yamaha unveils the MT-07-based adventure tourer.

Suzuki Hayabusa Unchanged for 2018, Maybe 2019? Last week we bought into the misleading notion that because Suzuki’s emissions report to the California Air Resources Board (CARB) for the Hayabusa were unchanged, that there would be no 2018 model. Wrong. (Mea culpa, mea culpa, mea maxima culpa -Ed.) It meant only that the Hayabusa would have the same specifications it carries this year. Now the speculation on this enormously important hypothetical continues in a report from motorcycle-magazine.com. They opine that Suzuki began teasing a new Hayabusa two years ago at the Tokyo Motor Show, in the form of a paper sculpture titled the Concept GSX.

Japanese carmakers face 'fight unlike any before' from the likes of Google and Apple -- Toyota Motor and Mazda Motor's business and capital tie-up comes as t e c h n o l o g i c a l i n n o v at i o n a n d competition drive the sector's biggest shift since Ford Motor started churning out the Model T more than a century ago. A sense of urgency in the industry underpinned the words of Toyota President Akio Toyoda and Mazda counterpart Masamichi Kogai at a joint news conference Friday about the newly deepened partnership. With new players like Google, Apple and Amazon.com emerging, automakers are in for a "fight unlike any before," said Toyoda, who expressed a desire for cars not t o beco me "commod it ies. " Staying unique Advances in artificial intelligence and communications technology have ushered in dramatic change, with such

innovations as autonomous driving, electric cars, internet-connected cars and ride-hailing services. After a recent test drive of an electrified Toyota 86 sports coupe, Toyoda had remarked that it was an electric car. His drift was that unlike conventional vehicles, electrics all drive similarly. Toyoda said that both Toyota and Mazda loved cars and wanted to infuse even the electric vehicles they co-develop with the distinctiveness their brands have spent years cultivating. Such shared values drew Toyota and Mazda together. Keeping competitive Toyota and Mazda decided on a capital link because they wanted to build a "relationship of continuous cooperation" while respecting each other's autonomy and "sharpening each other through friendly rivalry, " Toy oda sai d. When the automakers joined hands in May 2015, Toyoda had said his company was not a wallet.

2018 Honda Jazz unveiled, to debut at 2017 Frankfurt Motor Show For the first time European spec Honda Jazz will feature a new 1.5-litre i-VTEC petrol engine shedding out 130 PS of power. Exterior changes align the Jazz with the latest Honda family style which we have seen on the Honda Accord hybrid, 2017 Honda Civic and the new Honda CR-V Honda Jazz is all set to get a new fresh look in the European markets and the company has unveiled the images of the car ahead of its debut at the 2017 Frankfurt Motor Show. 2018 Honda Jazz will feature changes on its exterior styling and interior trim. For the first time European spec Honda Jazz will feat ure a new 1. 5-litre i-VTEC petrol engine shedding out 130 PS of power. Exterior changes align the Jazz with the latest Honda family style which we have seen on the Honda Accord hybrid, 2017 Honda Civic and the new Honda CR-V, incorporating the ‘Solid Wing Face’ headlight signature and grille. The front bumper is now sharper giving the Jazz an aggressive front face with sharp contours around the air vents. At the rear, shallower grille sections are finished in gloss black trim strip above a trapezoid lower section. 2018 Honda Jazz will also get a metallic Skyride Blue

as a new colour option. Honda claims that its 130 PS petrol engine combines high output with low fuel consumption, and is compliant with Euro 6 emissions standards. Claimed mileage on the car is around 18 kmpl. Honda Jazz will also get an optional CVT automatic transmission. Honda has upgraded CVT gearbox to deliver a more linear and refined response under acceleration. The 130 PS petrol engine is offered as part of a new Dynamic grade, which adds a thinner front splitter beneath the lower grille, and triple-strake diffuser to the rear bumper – both finished with a sporty red accent line. It also includes LED headlights, side sill skirts, front fog lamps, a tailgate spoiler and 16-inch alloy wheels finished in gloss black. The interior features a new upholstery in a pinstripe pattern and the gear knob and steering wheels are enhanced by orange stitching. The overall dimensions of the Honda Jazz remains the same indicating this to be more of a facelift and not a newgeneration car. In all possibility this new face will come to India and if Honda Cars India decides to be aggressive then it might showcase the car at the upcoming 2018 Delhi Auto Expo.

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Corporate Business Event Update

Monthly AutoMark International

Thankyou Mr. Hirofumi Nagao for your service at Pak Suzuki Motor CO. Ltd.

Mr. Rainer Schmiedchen Consul-General of Germany at NCA in Lahore

Mr. Muhammad Zubair Ghangra, Director Marketing of Unique Group of Industries receiving Consumer Choice Award from Governor Sindh Muhammad Zubair. On the occasion of award distribution ceremony held on last month at Governor House Karachi

An Exclusive review by M. Shuja-ul-Haq

Monthly AutoMark International

Upcoming JICA, SMEDA Technical Support Program Specifically selection criteria starts from prospecting companies requisition form comprised of many details about company, after perusal Japanese team shortlist companies for evaluation visit. Japan, the second largest developed economy of the world, is a leading nation in the field of scientific research and te chnology. Th ere are many contributions of Japan to world in electronic devices, machinery, medical research, food and in fashion industry. One of the main supports of Japan to world is establishment of Japan International Cooperation Agency JICA. Japan International Cooperation Agency JICA, established in 1974 and chartered with economic and social growth in developing countries and promotion of international cooperation. They have overseas offices in 97 countries and operations in more than 150 countries. With visionof “leading the world with trust” they are truly heading towards it through mission of training and imparting knowledge to the industries of developing countries. In Pakistan, this Japanese government funded organization JICA is also disseminatingand sharing experiences to local industries and auto industry is the main beneficiary. Their 1st term concluding at 2nd August 2017 and ceremony was held at PC hotel; 100 people witnessed the occasion; SMEDA and PAAPAM were partners of the event. Ceremony includes speeches by JICA experts, SMEDA CEO, SMEDA BoD and five Japanese experts. In 1st term they successfully improved 18 suppliers and planned to encompass more vend ors that’s why they are selecting 30 vendors for their 2nd term. Training period is approximately two

years and for selection JICA needs recommendations from OEM and PAAPAM; the gist of selection criteria is the strong commitment from the top management of prospecting companies because without it one can’t implement any plan. Specifically selection criteria starts from prospecting companies requisition form comprised of many details about company, after perusal Japanese team shortlist companies for evaluation visit. These evaluation visits have significant weight in the selection criteria because they collect all first-hand information, judge sincere commitment of top management/owner and asses the potential for improvement. JICA dedicated team includes five experienced Japanese experts named, Mr. Hiroshi KANEKI, Mr. Hiroshi SA SA KI, Mr. Satoru GOKUD A, Mitsuyoshi IKUTA, Koji ISHITAKI.

These experts have vast experience in repertoire with reputed companies like Mitsubishi and U-Shin of Japan, the best thing about these experts that they are very sincere and committed to improve the systems of subject companies in amicable and jovial environment. Pakistan industry is very thankful of SMEDA, a government organization under Ministry of Industries, who is working dedicatedly as a window for this coaching program. Pakistan people should also be grateful of Japanese government to support developing countries through technical assistance and training. So JICA training is the blessing for Pakistan and industry must capitalize this program to improve their production facilities to level of world standard quality.

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Exclusive review by Ahsan Mirza

Monthly AutoMark International

FUTURE OF ELECTRIC CARS IN PAKISTAN AUTO PARTS MANUFACTURERS NOT YET READY TO EXPORT ELECTRICAL VEHICLE PARTS Like most of the developing countries, Pakistan too has a strong market for hybrid vehicles, with Honda Vezel, Honda FIT, Toyota Prius, Toyota Aqua, and other such models having a significant presence on the Pakistani roads. Leading automobile manufacturers, including Super Power Motorcycles, have started introducing EV models with a wide range of prices, targeting customers of diverse income groups. Several members of the international automobile industry (South Korea, China, and Japan) also believe that Pakistan is a high potential market for electric vehicle (EV) technology, and local businesses are collaborating with them to bring EVs in Pakistan. Despite the growing market of EV in Pakistan, there has been little upward movement in the manufacturing of auto parts in the country, with producers largely failing to establish links in booming EV markets to export their products. According to the Pakistan Association of Auto Parts and Accessories Manufacturers (PAAPAM) this is because the part manufacturers of Pakistan have failed to find willing assemblers for their products in places like Germany, Japan, and China. Moreover, the part manufacturers are seemingly not ready to make giant strides towards setting plants for EV parts, mainly due to the absence of new and improved technology that is

required for the manufacturing of the same, despite there being a provision and emphasis in the new Auto Policy for the setting up of such facilities in the country. As such, it could be said that the manufacturers of EVauto parts in Pakistan are not yet ready to step into the limelight and deliver high quality products for the major EV markets of the world. This point could be further highlighted by the fact that the four new entrants in the car manufacturers market, namely Nishat Motor (Pvt) Ltd, Kia Lucky Motors Pakistan Ltd, Regal Automobiles Industries Ltd, and United Motors (Pvt) Ltd., have no electric car manufacturing facilities in their newly-established plants. Despite there being a significant and increasing global demand of EVs, Pakistan is not yet ready to partake in

the green transformation. This can be associated with the fact that Pakistan has a larger after-sales market of auto parts for EVs, instead of new parts. N. J. Auto Industry, assembler of Super Power Motorcycles, have already started p ro d uci n g EV s w i t h d if f er en t specification and prices, but they are still waiting for the government to give i n c e n t i v e s fo r t he s e v e h i c l e s manufacturing. However, Chairman PAAPAM Mashood Ali Khan said that as the growth and availability of hybrid cars and EVs increase in Pakistan, several auto part manufacturers are in the process of producing parts for those cars locally. The immediate future of these cars and the manufacturers remains uncertain, but will eventually get stable in the next 5 to 10 years.

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Exclusive cover by Muhammad Zahid Iqbal Malik

Monthly AutoMark International

Azaadi Safe Riding Rally in Lahore on 14 August 2017

Safety and enjoyment go together is a statement which looks just a concept not a practical thing in Pakistan. But the Azaadi Safe Riding Rally by City Traffic Police (CTP), Transport & Road Safety Foundation (TRSF), Pakistan Bikers Club (PBC) and Atlas Honda Ltd (AHL) have proven that this can be done through discipline and skills. On 8 July, 2017 Mr. Khurshid Khushaali called PBC and shared a proposal which looked attractive due to itâ&#x20AC;&#x2122;s main ingredient i.e., quality. They shared that Chief Traffic Officer (CTO) Lahore Mr. Rai Ijaz has offered PBC to manage the event as per ease, maximum discipline and with all parameters that PBC uses for best possible outcomes. So, in short it was an attractive option for us to play freely and give best to the youth on the event of Azaadi. The event was sponsored by Atlas Honda Ltd which came with theme of CD70 for 70th birthday of Pakistan. A truck used for event which moved with the rally was showing colors of Azaadi and it attracted the general public a lot. Some of the new members of Pakistan Bikers Club had also come out to join the Rally. They did more than expected because it was their first event of this kind. There were three main categories of participants which created a test for

everyone. First the City Traffic Police team members (most of them with Suzuki Inazuma 250cc bikes), then Pakistan Bikers Club members (with 125cc to 660cc bikes) and at the end was main part (which turned to be the part of this rally) i.e., general public. So it created a tough environment for every rider of City Traffic Police and Pakistan Bikers Club to keep up with the wind. Because keeping bike in a row, following the rider in front, managing everything in first gear in a hot weather and last but not least was allowing traffic to use

a lane with some intervals. Pakistan Bikers Club thanks and salutes everyone who performed in the rally and did his best. It was a message for those who are involved in street racing and one wheeling that skills can be shown in a safer way, enjoyment can be done in a safer way, celebrations can be made in a safer way. We are also thankful to print and electronic media who covered the event very well and shared our message with the nation. Pakistan Zindabaad ! Safety Department. Pakistan Bikers Club

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Business Delegation visit from China

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Sinotruk Chinese Truck Manufacturers interested in Joining hands with Paapam

Chinese truck manufacture interested in joining hands with Pakistani auto parts makers A high-profile Chinese delegation, representing Sinotruk Limited, visited the Pakistan Association of Auto Parts and Accessories Manufacturersâ&#x20AC;&#x2122; (PAAPAM) South Office here in Karachi to meet with senior members of the PAAPAM to discuss possible future ventures between the two countries for the manufacturing of trucks and their auto parts. The ten-member strong delegation was led by Mr. Mr Wang Haotao from Sinotruk, while the delegation of PAAPAM was led by Chairman Mashood Ali Khan. Members from Dysin Automobiles Pakistan and Paapam were also present. Chairman and senior members of PAAPA M briefed their Chinese counterparts about the technologies,

resources, and expertise of the Pakistani parts manufacturers in the field of trucks and the production of their auto parts. Chairman Paapam Mashood Ali Khan said Sinotruck officials are conducting a survey of the Pakistani truck market and will submit a report to their higherups. He informed the auto- part makers that his company had already exported 2,400 completely built-up trucks to Pakistan. Sinotruck produces 200,000 units per

annum in China. The Chinese members were also told about the growing auto industry of Pakistan, and how it is already heavily i nvol ved i n the p rodu cti on of motorcycles, cars, buses, and trucks, and in the production and assembling of their auto parts. Wang spoke of his desire and interest to utilize Pakistani expertise and labor in the production of auto parts for their trucks. Moreover, he said that they were interested in setting up a production plant for trucks in Pakistan and wants to be involved in successful businesses with Pakistan for years to come. Members of PAAPAM invited the Chinese members to visit their plants, and to create a link where Pakistani members could visit their Chinese friends and learn from them about the latest technologies and utility of labor.

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Exclusive Review by Syed Sarim Raza

Monthly AutoMark International

Toyota Launches its Facelifted Altis Grande Car in Pakistan Toyota is the name of confidence, limitless passion and motoring excellence for car enthusiasts in Pakistan. Toyota is one of the most famous car brands in Pakistan and has enjoyed some spectacular sales figures for a large variety of its vehicles in Pakistan over the years. From large sedans in GLi, XLi and Altis to offroaders in Land Cruiser Prado, Hilux and Fortuner, Toyota has left no stone unturned when it comes to providing a wide variety of vehicles to car buyers in Pakistan. Toyota has redefined motoring excellencein Pakistan by offering advanced technology in its cars that are available in the market at highly affordable prices. The brand is particularly famous for its stylish sedans in Pakistan, a country where urban cars are the ultimate preference of car buyers. Toyota believes in upgrading its vehicles on a regular basis to meet the evolving standards of automotive industry and with this approach, Toyota has given a facelift to its 2018 Altis Grande in Pakistan. The new and upgraded model is now equipped with more advanced technological features and boasts a superior new design that is clearly a sight to behold.

New Design of Facelifted Toyota Altis Grande The new design of Altis Grande reveals everything about the innovative mindset of designers at Toyota who have truly crafted a masterpiece in the allnew Altis Grande. The facelifted sedan now has an authoritative stance with a more refined front fascia. The front-end has integrated daytime running lights

and a newly designed slim and sleek grille. Bi Beam LED headlights that are being nestled between the stylishly designed front-grille, add more impetus to Grande’s looks and enhance the illumination while consuming lesser power. Grande’s side mirrors have received a new Auto Reverse Link Mode. This mode is automatically activated when the vehicle is being reversed. The front fog lamps are aesthetically adjusted into the front air diffusers which increase the visibility on the road while driving. The side skirts and mud flaps are of body color and go well with the exquisite design language of the vehicle. There is also a smart trunk opener which opens the truck with the touch of a button. Other advanced featuresintroduced into the facelifted model are the front and back camerasthat particularly help a driver while parking a vehicle. The exterior of the vehicle boastsimproved aerodynami cs and advanced technologies for remarkable driving experience. The interior welcomes the driver and passengers with state-of-the-art features for comfort, entertainment and convenience. Grande has a 3D interior design that depicts sheer luxury and class with soft touch padding, enhanced space and an ergonomic appeal. There is a push start button to start the engine while the steering wheel offers superior control with mounted audioand driving controls. Toyota Grande facelift also features an Optitron Meter which is equipped with 4.2-inch color TFT Display that provides important information to the driver about speed, driving range, fuel consumption and

Eco- moni tor. The 9- in ch d ash infotainment system, bucket type front seats and rear reclining seats with split folding are among other convenience features offered inside the cabin of Toyota Grande facelifted model. A sunroof is also available which further adds to the beauty of the interior.

Engine The engine in the all-mew Grande makes the vehicle one of the most powerful stylish sedans available in the Pakistan’s automotive market. It has a 1.8-litre, 7speed CVT-i (with paddle shift) engine that produces 138hp and 173Nm of torque. Despite being a luxurious sedan, the advanced engine technologies of Toyota Grande make it a highly fuelefficient vehicle. It offers a fuel average of 14.8 KM/L. The fuel tank capacity of Toyota Grande facelifted model is 55 L.

Added Safety Toyota Grande is a modern day vehicle that is loaded with advanced driverassist and safety technologies to make every ride with this amazing vehicle safer than ever. Toyota has introduced some of the latest safety features in its facelifted model of Grande. These safety features are: • Vehicle Stability Control • Traction Control • Anti-lock Braking System with EBD and BA • Front Seatbelts • Dual SRS Airbags • ISOFIX Child Seat Anchors

Price and Availability The all-new Grande is now available in Pakistan. Toyota lovers can buy this absolutely amazing sedan with an updated design in just PKR. 2,224,000.