Monthly Automark Magzine September 2011

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Editorial

MONTHLY

P a k is t a n ’s P r e m ie r M a g a z i n e f o r In d u s t r y

September 2011 Vol 4, Issue 09 Editor :

M. Hanif Memon

Sub Editor : Dr. Raja Irfan Sabir Asst. Editor: Sumaiya Rizvi

Millions of rupees lost as Pakistan imports used cars

Pakistan is a nation with lots of national prosperity; however, there have been a few mistakes that burden the already over-burdened economy. Contributing Writers : Dr. Raja Irfan Sabir One of these mistakes was the permission granted by Yakoob Gaziani the Government to allow for the import of used cars in Asif Masood Pakistan. While, this move was happily accepted by Ali Hassan everyone and welcomed with a warm embrace, the Mohammad Owais Khan Shahzad Tabish import itself embraced the economy with a whiplash Khrrum Sohail instead from the shadows. Mohammad Danish Pakistan’s local auto makers and allied engineer companies employ to a near of 2 million people. The Advisor : Imtiaz Rastgar Government took the decision of allowing the import CEO, Rastgar Group & of used cars of up to 5 years with relaxed taxation when CBI External Expert it was tricked by the elites and a few automakers showing Islamabad that the prices of local automakers was more, which was Abdul Majeed Sheikh later proved false when local automakers showed statistics proving that the price of local cars was a lot less as President, compared to neighboring and foreign countries and that AOTS-ABK Dosokai, the imported used cars were actually being sold for more, Karachi Regional Center & while bought at a cheaper price. Consultant (MME), This proved to be a fatal move as the whole of Pakistan’s NED University - Karachi automotive industry was pushed to the edge of the cliff, with many of the 2 million people facing the door of M. Yakoob Gaziani unemployment. What came as an even bigger danger CEO LORD Institute of Technology was the fact that the Govt. was urged to increase the allowance period from 5 to 10 years! These cars are Karachi basically considered junk around the world, and would be fetched for a mere nominal price by local importers, Syed Mansoor Ali e sp ec i al l y wi th re la x e d t a x a ti on i mp os ed . Business Manager While the dealers make a profit, the local automakers Case NewHolland would be hurt as they would be forced into reducing Pakistan the price of their cars, and thus would need to lay off many jobs so as to keep the economy balanced. J. Pereira Not only that, but the more the foreign cars are bought, General Manager the more the GOP is deprived of its already low foreign Product Support Division reserves. Al-Haj FAW Motors (Pvt) Ltd. A solution to solving this problem can be attained in Karachi providing the GOP with the correct facts and figures of these imported cars, and making them realize the Engr. IHT Farooqui potential danger the local automaker industry is falling General Manager Plant into. In an attempt to heal old wounds, the GOP can Karakoram Motors (Pvt) Ltd., make decrease the period of used cars to up to 2-3 years. Karachi An imported car that has been used for a mere 2-3 year will eventually cost more than the local car, there would Circulation Manager : Abdul Khaliq be a decline in the amount of cars being imported and Graphic Designer : Mustafa Hanif people would focus more on the local auto-making industry instead, saving the GOP millions of dollars. Postal Address Instead, the GOP can be encouraged by not only the Active Communications elites, the ruling class but also by the local automakers D-68, Block-9, Clifton,Karachi to invest in the local industry and bring about a local Visit us: www.automark.pk change which would benefit the country in more than E-mail: magazine@automark.pk just one way. A mindset of “Think local. Go Global” is more appropriate for this case, at this moment if the automarkpk@gmail.com ec onomy is to b e saved from further harm. Tel/Fax : 021-32218526 Mobile: 0321-2203815

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CONTENTS The Monthly Magazine for Pakistan Automotive Sector

Online magazines available at our website

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September - 2011 edition Your trust is our success

PAMA blamed for creating problems for low cost bike makers Exclusive Article on Motorcycle Sector by Ali Hassan

09-10

Will Pakistan ever come at par with India to assemble new design and engine cars? Cover Story - Exclusive Article by M. Owais Khan

11-13

“Metro” motorcyle company - Review Exclusive by Shahzad Tabish

15-16

Customer Perceptions Hybrid/Electric Vehicles and the Chinese Automobile Industry Part - II by Dr. Raja Irfan Sabir with co-author Mr. Luo Liguo

17

Paapam against body on ‘tariff rationalisation’

18

Used cars import hurts local industry

19

Bike makers plan heavy investment in coming years

21

FIEDMC signs MoU with HRC

27

3rd Master Oil Ramazan Night Cricket Tournament

28

KING has Arrived to Live LONG Launched a new brand by Afzal Motors

33-34

The Importance of Technical Education & Vocational Training (TEVT) An Exclusive article by by M. Yakoob Gaziani

35-37

The Alternate Solution - Part I by M. Yakoob Gaziani

41-43

Alternative Energy - News Update

45-45

Biofuel Trend In Pakistan Exclusive article by Asif Masood

46-47

Motorcycles market prices

50-51

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Automotive Sector - Exclusive Article

by Ali Hassan

PAMA blamed for creating problems for low cost bike makers Bike exports surge to 10,500 during April to July 2011 Value of Chinese bike parts fixed at higher side, Tractor, heavy vehicles parts get benefits Every big organization always tries to corner or eat up their market rivals in order to maintain their monopoly and market share. A leading Japanese bike maker with the help of manufacturers’ association have been using all sort of market tactics to sideline the low cost Japanese bike markers so that it could regain its lost market sh are in the urban areas especially in Karachi. Hurdles are being created at both federal and provincial level and even at the ministries’ level but the Chinese bike makers, on the back of stable urban demand, have been running over the hurdles. However, for the few months, the Chinese bike makers seem to have become tired in making efforts to clarify their point of view before Member Customs FBR and Director General Customs Valuation Customs House seeking lower values for bike parts of Chinese origin. Officials of the Association of Pakistan Motorcycle Assemblers (APMA) again recently met the top official of FBR and Customs Valuation Department but so far the problem still exists. APMA drew the attention towards problems being faced by the importercum-assembler of motorcycle and importers of motorcycle parts for com mercial p urpose at Customs Valuation Department and difficulties in clearance of parts through PRAL and through PACCs. APMA has put the responsibility on one big bike assembler so that the big company could maintain its dominating position in the market. The APMA also blamed PAMA for taking the side of the Japanese bike maker who does not like to see the prosperity of small and medium sized bike makers who are

selling motorcycle at 40 per cent lesser than the price of a leading Japanese bike maker. The retail price of Honda CD70 is Rs 66,500 and the price of Chinese bike hovers between Rs 40,000-42,000. The Association said that the maker of Honda also wants to discontinue the

impact of higher valuation to the end users. Some assemblers are trying to take the hit on themselves by not raising the prices after fixation of higher valuation of parts especially because of stiff competition in urban market especially Karachi. The Association said that the Customs department is issuing the valuation ad v ic e w i th ou t co nsu lt ing t h e stakeholders, market survey and without the origin items and without obtaining quotation from international markets in violation of Section 25 of the Customs Ac t. Th ey a re ent ertai ni ng th e monopolies of some leading bike makers.

export of bike by Chinese bike makers at a price ranging between $360-400 per unit which is earning precious foreign exchange for the country. Due to rising cost of production on account of higher valuation of parts and accessories the Chinese bike makers are unable to lower the prices and instead the assemblers are bound to pass on the

APMA seeks cancellation of Valuation Advice/Ruling under section 25-A No.333 dated 0706.2011 of motorcycle parts, components (China) and assessment to be done on the basis of international market by origin of imported goods or accept importers declared values or may recover custom duties from the importers of motorcycle parts China origin at $1.2 per kg on all parts up to refixation of values of motorcycle parts by the Valuation Department. The Association said “all the China origin auto sector parts for cars, tractors, aluminum alloy wheels, high tensile screws and bolts and motorcycles are based on same technology and materials but the Director General of Customs Valuation has issued different valuation advises/ rulings for auto par ts.” The Valuation Department issued

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Automotive Sector - Exclusive Article

APMA chairman Mohammad Sabir Shaikh expressed surprise over the thinking of the bureaucracy which seems influenced by the PAMA and one of its leading members for fixing higher value of bikes on which sizable number of population moves on.

customs value (C&F) values for aluminum alloy wheels and wheel rims of all vehicles at $3.38 for China origin and $4.0 per kg for all other origins. The value for wheel rim (other than alloy) of all vehicles imported from China was fixed at $0.43 per kg or less than half dollar per kg for all other origin too. In March this year, the value of high tensile screws and bolts imported from China w as fixed at $1.1 per kg. On June 23 this year, the value for about 17 d iffe rent tr act or p a rt s and components of Chinese origin was determined at $1.5 to $3.00 per kg. In June this year, the value of bike parts for example aluminum crank case was fixed at $5.45 per kg and crank case at $5.87 per kg, carburetor at $13.54 per kg etc. The value for crank case cover for left and right were fixed at $5.4 and $5.15 per kg respectively. Rectified regulator was valued at $10.20 per kg followed by insulator carburetor at $13.60, spark plug at $6.61, ring piston top $10 per kg, spring clutch level $11 per kg, valve inlet $16.42 per kg, oil through $25 per kg, cover cylinder head $29.74 per kg and cover cylinder head top $33.66 per kg. APMA said that due to increase in valuation rates, the association members could not reduce the price after government’s decision of abolishing 2.5 per cent special excise duty and one per cent cut in general sales tax. APMA chairman Mohammad Sabir Shaikh expressed surprise over the thinking of the bureaucracy which seems influenced by the PAMA and one of its leading members for fixing higher value of bikes on which sizable number of population moves on. He said that the government is giving preference to the tractor and heavy vehicle parts for fixing their value at lower side despite knowing that their prices run into million of rupees instead of giving benefits to the low cost bikes which are available in few thousand of rupees. Irrespective of negative bu siness environment, Pakistani bike makers are also making their presence in world markets felt through exports despite not getting the facility of $50 per bike. A bike maker said that most of the

Pakistani made bike find their way into Afghanistan from April to October season a nd after snow fall fr om November to March the exports usually remain suspended to the neighboring country. He claimed that Chinese bike makers hold major share in exports of bikes. According to PAMA and some Chinese bike makers, the domestic bike industry has exported 10,500 units from April to July 2011 to different countries. After a steep drop in exports of around 135 percent from a peak of US $3.5 million in 2009-10, the high-quality and lowpriced locally produced bikes have effectively checked imports. The industry exported in excess of 2,500 units per month which is against an average export of around 1,200 units per month last year. If th e trend continues, Pakistan will easily be able to double its motorcycle exports this year. Motorcycle exports stood at $786,310 in the year 2009-10 and surged to $3.5 million in the next year on the strength of $50 per unit Research and Development facility provided by the Government. The facility was withdrawn in 2010-11 after which the exports nosedived by 135 percent to $1.34 million. “ The decline in exports would have been much higher but the prudent marketing strategy adopted by large motorcycle players controlled it”, said Mr. Fahad Iqbal CEO, HKF Engineering, makers of Ravi motorcycles. He said that the exports of motorcycles averaged over 2,500 units during the last four months which is a good sign for the industry. This, he added, is double the monthly export of 1,200 units in 2009-10 when record exports were witnessed. He said that the trend is expected to continue and Pakistan will easily be able to double its motorcycle exports this year. Exports from Pakistan are textile dependent for the most part. Motorcycle industry provides a viable option as the next emerging export from Pakistan. “The industry is aiming to export half a million units annually by the year 2016” a bike maker said.

Experts pleaded that the current policy regarding motorcycles should not be disturbed as with its huge forward and backward linkages, the motorcycle industry moves the wheel of the economy. “Most serious threat to this industry is a sudden policy shift, and threats for that are abundant now a day”, a bike maker said. “Talks of commercial imports of motorcycles and change in tariff to suit a certain entity will wreck havoc on this industry,” he added while demanding the government not to disturb the growth momentum of most localized engineering industry in Pakistan. The on going floods and heavy rains in Sindh is likely to adversely affect the sales of leading bike makers who enjoy over 50 per cent share of their total sale in rural areas. A lot depends on farmers and growers farm income from various crops in other provinces of Pakistan this year which will definitely nullify the bad sales prospects in Sindh. The maker of Honda bikes has already seen sharp jump in sales during JulyAugust 2011 to 102,196 units from 85,176 units in the same period of last year. Suzuki bike sales reached to 3,722 units from 2,955 units. However, sale of Yamaha bike fell to 16,585 units from 20,247 units in July-August 2010.....

Habib Motorcycles Launched Habib HB-70 Model 2011

Habib Motorcycles (Pvt) Ltd. Has launched its Habib HB-70 model with new cosmetic for year 2011. New m odel d oes not c hanged significantly on the engine or mechanical face. The major changes are on the cosmetic front which makes it look more eye-catching . ‘This motorcycle caters to the changing needs of customers and offers them more modern styling and professional performance.’ Said Khawaja Mumayun Muneer, GM, Marketing & Sales, Habib Motorcycles (Pvt) Ltd.

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Automotive Sector - Exclusive Article

Cover Story by Mohammad Owais Khan

Will Pakistan ever come at par with India to assemble new design and engine cars? If the government has really any serious plan to open the local market for new players then it should not liberalize import of used cars as it will not attract European car assemblers but may invite low price car assembler like China. Pakistanis, who regularly watch Indian ch annels for d ramas a nd other entertainment programs, must now be highly thrilled to see huge advertisement campaigns for introducing new locally assembled small engine capacity cars. The most attractive aspects of these small cars are their new aerodynamic designs, colors, new technology engines with attractive interior and above all their affordable prices as per Indian exchange rate compared to other currencies, economic indicators, food inflation, high interest rate and fuel prices. In view of high petrol price and interest rates, that hit their sales in July and August, assemblers are focusing more in introducing fuel efficient cars in India. In a country where population is rising every year, many foreign companies continue to take plunge in India because of rising volume of population. The high population is enough to lure the foreign investors coupled with slight steady exchange rate parity and may be low taxes and duties. Seeing the bright and new colors of cars being introduced by world leading car makers in India, one perhaps can only dream that our local car assemblers (dominated by Japanese car makers) will ever be able to roll out new cars with new designs and engine technology at affordable rates. This dream may not come true in view of uncertain law and order situation, instable government policies, losing strength of the rupee against major currencies, rising fuel and CNG prices, high interest rate etc. Many prospective car buyers have taken

the risk of purchasing imported Toyota Vits, Daihatsu Mira, Toyota Platz, some imported Suzuki small engine capacity cars, etc which shows that buyers are eagerly waiting to drive new design cars. However, due to increasing prices of imported used cars many new buyers seem to be bound in taking the costly ride by selecting the locally assembled cars available in a very limited designs, colors etc for which they also pay high prices for decade old engine technology and designs. Pak Suzuki Motor Company Limited, the oldest car makers of the country, excels with other car assembler in producing Suzuki Mehran and Bolan whose design and engine are over 20 years old while Cultus, Alto, etc are almost a decade old. Perhaps Pakistani car buyers especially

of locally assembled cars are the most backward in the world for using over two decades old engines and designs in 800cc cars and a decade old 1,000cc cars except for Toyota and Honda. India has been attracting leading car makers from all over the world while Pakistan is more focu sed to see investment coming from Japan which also provides aids, grants and loans to the government in tough times. A Korean assembler in collaboration with a business tycoon has introduced Hyundai Shahzore (light commercial vehicles) and 1,000cc Hyundai Santro car but with the passage of time and lack of interest of its local assembler the Korean vehicles are now struggling to survive. In contrast the same Korean assembler have been making deeper inroads not only in the world market but also in India in presence of its counterparts like Ford Fiesta, Nissan Micra, Chevrolet Spark, Hi -Hyundi 1000cc, Ford Fiat, Tata’s Nano, etc. Recently Afzal Motors, once again took lead and stepped forward with the launching of “KING LONG�HIASE Vans in Pakistan. KING LONG is among Chinese top rank in domestic and export markets. KING LONG remained rank No. 1 in China Van/Bus for export with networks spanning five continents and more than 55 different countries and regions. Perhaps the inconsistent policy of the Pakistani government and low volumes with production of only 150,000 units

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Automotive Sector - Exclusive Article

Irrespective of the blame game between APMDA and PAMA over car price issue, one can certainly say that Pakistani car makers have been lucky in performing exceptionally well under current circumstances like high interest rates, rising petrol and CNG prices, frequent rise in car prices, uncertain political and economic conditions, floods (from July-September 2010), low sales of cars through bank financing etc. a year does not attract the European assemblers to take risk in the unstable car market. But seeing the penetration of used cars in the last few years, which has definitely cut the share of local car makers, reveals that the local market has the potential to invite new foreign car makers for assembling 800-1,000cc cars.

The government is in process of finalizing new entrant policy but the measures and its aims has already raised the eye brows of the leading Japanese assemblers and their vendors in Pakistan as they feel that some undue concessions have been planned for new entrants and they should be provided level playing field or same taxes and duties which the government had imposed at the time of arrival of existing Japanese car assemblers. The government aims to attract Chinese car makers right now but it is not clear whether Chinese cars will take away big slice of total car market as it has taken 50-55 per cent in the motorcycle. If the government has really any serious plan to open the local market for new players then it should not liberalize import of used cars as it will not attract European car assemblers but may invite low price car assembler like China.

On the other hand, our car assemblers are not sacred cows. A some kind of understanding has been reached between Pakistani and Japanese governments for many years to maintain assembly of old engine and design cars at costly price who se pro duc tio ns had been stopped even in Japan and other countries. Pakistan is the only country where foreign assemblers can sell their junk and outdated cars thanks to the governments’inefficiency and pressure of foreign investors. Can a Suz uki Mehran CNG really (whose design was introduced in 1989) deserves a pric e of Rs 533,000 with minor cosmetic changes which are less attractive coupled with post purchasing problems and quality issues. Does Suzuki Cultus deserve the price of Rs 800,000-900,000 wh os e design is not more than 10 years old. Suzuki Bolan and Alto also falls in this category. Seeing that the people are bound to buy locally assembled cars due to lack of choice the PSMCL has never seriously taken steps to change the outlook and engine of Mehran, Cultus, Alto and Bolan knowing that consumers will definitely buy it because of their easy parts availability. Many consumers feel satisfied in purchasing locally assembled cars instead of taking risk of buying imported used cars due to problem of parts availability at higher prices.

Successive governments and the Ministry of Industries have never asked PSMCL especially as to why it has been making decade old cars at higher prices and whether the deletion levels, set by the governments, have ever been achieved. The government now should hold an enquiry on low deletion level. Even makers of Toyota Corolla and Daihatsu have also taken eight to 10 years to completely change the model. Time has come for a big change in Daihatsu Cuore model which is also over 10 years old. If the deletion level, as claimed by the assemblers are on the higher side, then why the prices of cars are being increased so frequently on the pretext of rupee-yen-dollar parities which escalate cost of procuring high tech parts despite the fact that their quantity in car s ar e in low nu mber s. T he government instead of taking notice of the impact of hi tech parts on car prices depending on currency fluctuations has opened used car imports under various sch emes in order to punish the assemblers for not lowering the prices. The government should also check the profit margin of assemblers per car as many people feel that the assemblers are making money on decades old cars. Vendors also cautiously make hue and cry over some decisions of Pakistan Automotive Manufacturers Association (PAMA) but now car vendors and PAMA have joined hands to plead their case jointly for promotion of local industry. Definitely why not vendors do not support PAMA as they are dependent on the orders of the car manufacturers and any bitter truth against the assemblers may change the fortune of the vendor. The assembly of 10-20 years old cars has so far proved highly beneficial for the local vendors who have prevented them for making any extra investment for new parts and accessories for any new models. They have just have been

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Automotive Sector - Exclusive Article getting additional orders for the old parts from the assemblers. As a result, many vendors have become millionaire or billionaire by producing the same type of parts in huge quantities for the last two decades. Meanwhile a part vendor blamed low volumes of cars as a main obstacle thus m aking car makers r eluctant to introduce new models or completely change the existing models. He said making parts for new model car is difficult as it takes years to recover the cost of investment made in bringing jigs and fixtures and assembly. PAMA and All Pakistan Motor Dealers Association (APMDA) had been at loggerheads over car price issue. A Pama s po k es man , i n hi s statement to the press recently said a used imported 4-5 years old Suzuki Alto with 650cc engine is being sold in the local market at Rs700,000-750,000 where as a c ustomer can buy brand new locally made Suzuki Alto with 1,000 cc en gine for the same amount. PAMA spokesman should know the difference of quality of imported cars and Suzuki Alto. Despite paying high price for Alto it lacks power steering and not even power windows. Similarly, Toyota Vitz costs a little over Rs1.1 million while its parallel version Suzuki Swift is marketed by local manufacturer at the same price. PAMA should ponder before matching Toyota Vitz with Suzuki Swift as Vitz is far superior than Swift in any specifications. PAMA says luxury cars are being imported eating up precious foreign exchange. The government has full information in this regard and should take steps to stop this practice. PAMA spokesman alleges now the importers’ lobby is pressing the government to allow import of 10-yearold used cars. Considered as junk in the w orld, these cars would increase pollution levels in the country and would burden the consumers in long run due to non-availability of spare parts and poor after sales service. Allowing import of used vehicles commercially will prove a death warrant for the local industry, resulting in loss of jobs of two million workers employed in auto and allied industries. Even if restricted import under change of residence is allowed, the duty rates

a re so hi gh and environmental conditions are so stringent that import of used cars become unviable for true owners as well. The PAMA spokesman said that allowing import of five years old c ar s i s a lr e a dy ca u s ing embarrassment to the government which allowed the same to make c h e a p e r c ar s av ai l a bl e t o consumers but most of them are priced at the rates equal to new locally made cars. Used car dealers’ lobby does not contribute to job creation or technology transfer and evades taxes on large scale besides under-invoicing and fleecing the customers. APMDA chairman H. M. Shahzad informed Finance Minister Dr Hafeez Shaikh that the consumers were facing problems due to sharp in cr eas e in pric es of lo cally assembled cars in the last two years. He said the assemblers were fleecing consumers by taking 100 per cent advance payment at the time of booking of a car and deliver cars in few months. As a result, black marketers start ch arging premium from buyer s. He urged the government to check the deletion level pledged by the assemblers as it has not been achieved despite passage of many years. He said in 2005-06, the import of used vehicles was permitted after a long gap of 12 years. This was subsequently restricted to import of used vehicles of three years old only in different schemes. As a result local assemblers acquired a monopoly on prices and supply. He urged the government to allow commercial import of used vehicles up to 10 years of age in addition to existing schemes like transfer of residence, baggage and gift schemes. Irrespective of the blame game between APMDA and PAMA over car price issue, one can certainly say that Pakistani car makers have been lucky in performing exceptionally well under current circumstances like high interest rates, rising petrol and CNG prices, frequent rise in car prices, uncertain political and economic conditions, floods (from JulySeptember 2010), low sales of cars through bank financing etc. The monthly index of large scale manufacturing (LSM) has got a big

support from the increasing production of cars and other vehicle and as a result LSM has been showing quite positive trend. While other industries of the country have either closed or getting close to the closure the car industry has been receiving good demand for their products from the rising farm income and huge arrival of home remittances. Good crop of cotton, sugarcane, wheat, rice and some minor crops have been taking away 30-40 per cent share of total car sales while rest of the support was provided by home remittance which surged to $11.2 billion in 2010-2011 as compared to $5.5 billion in 2006-2007. It was just $2.2 billion in 2001-2002. Amid floods devastation in Sindh car makers have set their eyes on the higher crop output in Punjab coupled with rising flow of h ome remittances. Contrary to this, the Indian car assemblers have been facing the negative impact of high interest rates and rising cost of fuel and as per foreign media reports, cars sales in India fell 10 percent in August to 1.44 lakh units against 1.6 lakh units in the same month last year. Sales also fell 16 per cent in July which was the biggest slide since November 2008 and first decline since January 2009. Demand for cars, which had shrunk in July for the first time in nearly three years, is expected to remain under pressure in a slowing economy that grew 7.7 percent in April-June, the weakest pace in six quarters. Car sales are expected to grow by just 10 to 12 percent this fiscal year to next March, down from an earlier forecast of 16 to 18 percent and compared with a robust 30 percent jump in 2010/11. High fuel prices are shifting many first time car buyers towards two wheelers. India's central bank has raised interest rates 11 times since March last year in an effort to battle stubbornly high inflation, a move that has hurt creditbased purchases and slowed economic growth. The Indian automobile market is driven by a burgeoning and aspirational middle class that mostly relies on bank loans for purchases. The automakers are hoping for pick up in vehicle demand in the festive season, but analysts say the high interest rates and vehicle costs may impact buyer sentiment this year.....

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Automotive - Production Figures

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Corporate Profile & Event - Review

by Shahzad Tabish

“Metro” A brand, representing Innovation, Quality & Affordability in the local motorbike Arena

Mr. Muhammad Imtiaz, CEO, Metro Hi-Tech Pvt.Ltd, Receiving Brands of the Year Award from Prime Minister of Pakistan for leading the Motorbike Industry in Product Innovation. For the continuous endeavor & struggle for excellence, very recently the brand “Metro” has received “Brands of the year Award-2010” by government of Pakistan. The thriving efforts to accomplish the goal of quality products for the customers has been finally recognized & appreciated by the government. This makes Metro as a distinguished & the only manufacturer of Chinese orientation to receive this honor as a compliment to their efforts for the local motorbike industry. Team Automark congratulates the brand for this accomplishment.

Fan Business

“Metro” is a brand name that is very familiar to the general public of our country when we consider local electrical & motorbike markets. Having a peek through in the historical background of the industry, the Younas Group of Industries was established way back in the year 1973, which was incorporated into private ltd in the year 1985. The company started with the manufacture of versatile range of electrical fans. The brand name “Metro” prospered & flourished with the passage of time due to the uncompromised quality standards incorporated in the manufacturing of their product range, while presenting the most competitive costs in the market. This ensured a strong positive response from the consumer sector which accepted the product range whole heartedly. Another reason behind this success of the brand was a diversified product range which ensured availability for all markets & all needs.

Any company or industry is incapable to produce & procure the best products without having a dedicated, efficient & skilled workforce all the way from the upper management to the lower staff. Metro takes pride in having capable yet hardworking staff members which ensu r e t h e i mp le men ta ti on of production standards irrespective of the circumstances & scenarios. Quality standards ascertain the opulence of any brand amongst its competitors in the market. The Metro group of Industries has ISO-9002 certifications along with having PSI, MES & EDB

Grade A

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Corporate Profile & Event - Review

Metro became the first manufacturer locally to introduce a Digitalized Speedometer for the standard 70cc motorbikes. The shape of the speedometer is similar to the standard motorbike speedometers; however the display of the speedometer has a digitalized LCD screen that displays the speed & mileage of the motorbike.

standards approvals as well. Maintaining of quality standards enforced by various authorities locally, the brand successfully made its way in the international consumer market. Unmatched quality standards meant that the brand received an overwhelming response in the international market as well. The export of the Metro products has now expanded to Bang lad esh, Sr i-Lanka , UK, Singapore, Dubai, Saudi Arabia, Kuwait, Oman, South Africa, Nigeria, Yemen markets. Quality certification from Saudi Arabian Standards organization (SASO) is an example to demonstrate the product quality standards of the brand.

Motorcycle Business

Eyeing the immense scope & necessity, Metro group of companies took the initiative to start motorcycle manufacturing for the local market of Pakistan. The first production model of Metro motorbike was launched in the year 2003.

With the passage of time the Metro motorbike industry flourished & started innovation in the fields of design c onc ep ts & t ec h nic a l f eat u r es incorporated in the motorbike produced under the brand name Metro MR-70. Metro introduced a very attractive logo & graphics design scheme for their motorbike in the year 2006. The graphic design scheme was welcomed & appreciated in the market as a fresh breeze of innovation in a pretty standard product manufactured by numerous P a ki st a ni m a nu f a ct u r e rs . T h e appreciation to the new design scheme could be visualized by the fact that the graphics scheme was copied by some other manufacturers.

Leaving the discussion of graphics innovation aside we shall now have a look towards the technical innovations introduced by Metro in the local market. Metro became the first manufacturer locally to introduce a Digitalized Speedometer for the standard 70cc m otor b ikes. T h e sh ap e of th e speedometer is similar to the standard motorbike speedometers; however the display of the speedometer has a digitalized LCD screen that displays the speed & mileage of the motorbike. This innovative feature currently is a unique selling point for the Metro motorbikes. The positive aspect of having the design of standard speedometers was to save the mould development cost which reduces the price of development, reducing the retail cost of speedometers in the process. The motorbike range of metro isn’t only limited to the production of 70cc displacement category, the industry had also introduced a 125cc displacement motorbike variant, MR-125 in the year 2008 which produces 8.27 KW power output & 9.22 Nm torque. This variant was launched not only to diversify the motorbike product range, but also to cater the need customers that demand more power out of their two wheelers. The interesting fact here is the cost effectiveness of the MR-125 . In comparison to the renowned Japanese

manufacturers which sell their standard 125cc motorbike near the price range of 100,000 pkr, Metro MR-125 is for sale f or only 70, 000 pk r, ag ain demonstrating the incentives of the company to provide quality at a competitive price.

The success of any product in the open market isn’t effective unless it has a proper sales, distribution & service network. The Metro motorbike industry has addressed this fact thoroughly. The presence of 75 exclusive sales dealers, 85 warranty dealers, 140 service centers & 326 mechanical shops nationwide ensure a network that is dedicated for the sales, service & spares of Metro motorbikes. The dedication of metro can be clearly demonstrated by considering the fact that the Metro group of companies has organized & conducted incentive tours to dealers to Singapore, Malaysia, Thailand, Uzbekistan, Dubai, Turkey, Portugal, France, Switzer land & Germany.. Concluding the review the efforts of the Metro Group of companies have to be appreciated for their supreme quality products since their establishment. The initiative of innovation, quality & cost effectiveness taken way back in 70’s has not been left behind & is still the order of the day in the products of Metro. The same legacy has been carried all the way through in the motorbikes produces under the banner of brand name Metro. We sincerely hope that Metro continues to impress with their innovative ideas & prosper with the passage of time, benefiting all the consumers locally & globally. Cheers!

www.au tom a rk.pk | Sep tem ber-2011 | Pa ge 16

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Chinese Automotive - Research Report

by Dr. Raja Irfan Sabir with co-author Mr. Luo Liguo

Customer Perceptions Hybrid/Electric Vehicles and

the Chinese Automobile Industry Continued from August, 2011...... In this issue, the perceptions of Chinese Academia in the field of Intellectual Property have been explored and analysed with an aim of getting a deeper understanding of the subject matter than through the understanding of General Public. Our Patent Information Analysis showed that, within all China, Zhejiang University holds the highest number of Patents for (related to) Electric / Hybrid Vehicles, i.e. 151. Whereas, Qinghua University and Shanghai Jiaotong followed as 2nd and 3rd with a total numb er of 14 9 and 90 patents respectively. The top three universities in Hubei province holding the highest number of Patents for (related to) Electric / Hybrid Vehicles were Wuhan University of Technology, Huazhong University of Science & Technology, and, Wuhan University with 34, 27 and 24 patents respectively. And these three universities, being 17th, 21st and 25th in China, were the main source of data collection.

All of the respondents were based in Wuhan and were assumed to have adequate knowledge of and experience of Wuhan Transportation / Vehicle System. A total of 229 questionnaire responses were collected out of which 200 useful / valid samples were taken for analyses. Our findings revealed that, the majority of Males and Females from the Chinese Academia had adequate knowledge of hybrid/electric vehicles, whereas the respondents with unspecific gender had adequate as well as less knowledge. The majority of all the Genders did not own an electric / hybrid vehicle. Out of the majority of Males and Females who possessed an electric / hybrid vehicle, had a Chinese brand, whereas of those with unspecified gender owned a European brand.

Hybrid / Electric Vehicles:

The majority of respondents who did not own an electric / hybrid vehicle, had unspecified reasons for not so. Whereas, the Males and Females were willing to buy a Ch inese brand while, th e Survey Findings: respondents with unspecific gender did not opt to answer. Male List of Chinese High Ranking Universities hold the most and Female majorities considered to buy an number of Patents related to Hybrid / Electric Vehicles. electric / hybrid vehicle by considering e n vi r o n m e n t protection as the most i m p o r t an t f a c to r , whereas respondents with unspecific gender considered price to be the imperative feature. T he Male major ity viewed independent innovation as the major g oal of d evelop ing e l ec t r i c / h yb r i d vehicles; the Female majority considered e n vi r o n m e n t protection; whereas those with unspecific g e n de r fa vo re d e n vi r o n m e n t

p rot ect ion and red uci ng Ch ina’s relia nc e on importing oil. Analyses of perceptions about Hybrid / Electric V e h i c l e s Respondents from Chinese Academia

Chinese Automobile Industry

The majority of all types of respondents agreed that, Chinese Vehicles have Independent Innovation, while all were neutral regarding the statement that, Chinese Automobile Industry has sufficient laws for the protection of Intellectual Property Rights. The majority of Males and Females agreed that the Chinese Vehicles are developed by keeping Customer Demand in view, while the Unspecified were neutral. The Females were neutral to the notion that the Chinese Government has a Good Policy towards Domestic Vehicles; whereas the Males and Unspecified agreed to it. The Males and Females agreed that the Chinese Vehicles are oriented towards Climate Change and Alternate Energy, while half of the Unspecified were neutral and half had agreed. The majority of Males and Unspecified respondents agreed that the Chinese Electrical / Hybrid Vehicles have sound Technological Capabilities, whereas the Females neutral. The majority of Unspecified respondents was neutral towards the notion that, imitation (copy) can support the Chinese Auto Industry more than Intellectual Property Rights to develop high quality electrical / hybrid vehicles; whereas Ma les a nd F ema les d isa gr eed . Continued.......

About authors: Dr. Raja Irfan Sabir, COMSATS Institute of Information Technology, Sahiwal, Pakistan. PhD Researcher, Huazhong University of Science & Technology, Wuhan, P.R. China

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Automotive Sector - Update

Paapam against body on ‘tariff rationalisation’

Mr. Hashmi said that proposals from irrelevant areas on contentious issue of draw-down of tariffs, who do not understand the dynamics of the Engineering Industry does nothing but further hurts a stagnant manufacturing sector and cause a major revenue dent to cash starved economy. Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has strongly condemned the formation of a sub-committee lead by the Ministry of Industries to recommend proposals for lowering the tariff on auto sector on behest of Chairman Planning Commission. Recommendations being forwarded by irrelevant quarters are shear deviation from the objectives of Auto Industry Development Program (AIDP) which ensur es su stai nab ili ty of loc al manufacturing, further indigenization, and integration into Global Supply Chain. These views were expressed by Syed Nabeel Hashmi , Vice Cha irman PAAPAM in a hurriedly called meeting of Managing Committee to discuss the issue. He once again cautioned of sever reaction from Auto Industry against any move for reduction of tariffs in the name of rationalization, which have already

been well defined in the AIDP program. Mr. Hashmi said that proposals from irrelevant areas on contentious issue of draw-down of tariffs, who do not und erstand the dynamics of the Engineering Industry does nothing but further hurts a stagnant manufacturing sector and cause a major revenue dent to cash starved economy. Time and again PAAPAM has stressed the need to allow industry grow in a planned and long term objective manner. Mr. Hashmi pointed out that the report being relied upon, itself suggests that it may contai n factu al er rors and misinterpretation of various situations

& rules, mere a text book approach lacking detailed analysis regarding internal dynamics of a very complex industrial sector, defined goal and built in protection mechanism and incentives available to competing countries. Mr Hashmi claimed that 47.5% CD does not act as a standard protection because most of the parts purchased by OEMs are at 70 to 90% of FOB available from competing LCCs. Further rules of normal economic do not apply to Vendor’s sales prospective. Protection is provided by countries like Japan, India, Thailand, Malaysia, Australia, Canada, EU and China, he added. Mr. Hashmi lamented that recent moves by the Planning commission to implement a report that has been prepared in the rooms of the planning commission and lacks proper projection, without inputs of stack holders is a highly irresponsible act.

PAMA opposes Yamaha’s demand for incentives

The Paki stan A utomot ive Manufacturers’ Association (PAMA) has reiterated its opposition to the incentives demanded by a Japanese motorbike maker – Yamaha – for setting up its manufacturing facility in Pakistan. In a letter addressed to the Board of Investment, PAMA director general Abdul Waheed Khan called for detailed scrutiny of the contents of the offer made by Yamaha to get what he called as undue concessions in import tariff. He said Yamaha’s offer to invest $150 million in 10 years was nothing compared to the tariff concessions sought by it. The acceptance of demand

for tariff relief, he said would entail huge losses to national exchequer. He said the local industry would be investing more than $150 million during th is p eriod w ith ou t seeking any concessions. He sought to dispel the impression that the local bike-makers were dependent on the imports of spare parts, adding the local industry had indigenised their manufacturing plants by more than 90 per cent and producing around 1.4 million units per annum. Khan said Yamaha must not be considered as new entrant because the company had done its business in

Pakistan for 35 years and sold its shares to the local assemblers. “Yamaha in no way can be considered as new entrant. Therefore it should not be allowed any tariff concession on the imports of machinery and spare parts of motorcycle at zero duty,” he added. He said the government should realise the capacity and contribution of the local industry before giving incentives or duty concession. “The unfair relief to the company may jeopardise the growth of two-wheelers because the local players ar e already w orking under stiff competition with one another with low profits against their investment.”

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Automotive Sector - Update

Used cars import hurts local industry

PAMA Spokesman said the auto industry has been deeply perturbed by this new ridiculous demand of a lobby which does not contribute in job provision or technology transfer and evades taxes on large scale besides under invoicing and fleecing the customers Any further relaxation in used vehicles’ import will result in total closure of local auto makers with a job loss of more than 2 million workers in auto and allied engineering industry. This was stated by a spokesman for Pakistan Automotive M anu factur er s Assoc iation in a statement issued here. The spokesman said that allowing import of five years o ld cars is alre ad y caus in g embarrassment to the government which allowed the same to make cheaper cars available to consumers but most of them are priced at the rates of new locally made cars. The tax evading trader mafia has mustered the courage to fu rt her th is emb ar rassm ent by demanding relaxation on commercial import of used cars up-to 10-year-old w hich is suicidal for our already precarious economy. PAMA Spokesman said the auto industry has been deeply perturbed by this new ridiculous demand of a lobby which does not contribute in job provision or technology transfer and evades taxes on large scale besides under invoicing and fleecing the customers. He said that the trader lobby has not only asked the Federal Minister of Commerce to further relax the age limit of used imported cars from five years to 10 years but also to allow the commercial imports of the same. “This will destroy the local industry and would make Pakistan a junkyard,” he said warning that the resultant job losses could create serious social situation for the GOP. He pointed out that the government was deceived by this lobby to believe that the rates of locally produced cars are very high. He said the car assemblers provided the government with authentic data to prove that the vehicle rates in Pakistan are in fact lower than many countries including India and Thailand but the car dealers successfully tricked the government and

resultantly GOP relaxed the import of used cars up to five years. He further added that now the local market is flooded with used imported cars but their rates are extremely high compared with their age. A used imported four-five years old Suzuki Alto with an engine of 650 cc and depending on condition is being sold in the local market at Rs. 700,000 to Rs. 750,000 where as customer could buy brand new locally made alto with 1000 cc en gin e for this muc h money. Similarly, he said that another most imported brand Vitz costs a little over Rs.1.1 million while its parallel version Suzuki Swift is marketed by local manufacturer at the same price. Furthermore, he added that mostly luxury cars are being imported which is depriving GOP of precious foreign exchange. The spokesman said the government definitely has all the information in this regard and should have reprimanded the dealers that assured that the rates of used cars would be much lower to benefit the consumers. He said that now the importers’ lobby have come up with the idea of bringing in 10-year-old used cars that are considered junk the world over. These cars would increase pollution levels in the country and would burden the consumers in long run due to nonavailability of spare parts and local

ca pacity for after sales ser vice. According to the report, in the 2009-10 trade policy, the country's Ministry of Commerce eliminated the age limit for import of used trucks and buses, and introduced instead the 'remaining life concept'. At this time Euro 3 became mandatory in certain cases, but this is not implemented in an overall basis, local manufacturers have said. They claim that used imported vehicles are gaining more ground, bringing down the share of local production. This affects the confidence of foreign investors, and leads to massive unemployment, the report said.

Local manufacturers have asked the ministry for the following: •The removal of sprinkler lorries and water bowsers from Special Purpose Vehicle category; •Depreciation reduction to 1% and not more than 24% (accumulated) in any case; •The restoration of condition of registration in the name of applicant at least one year prior to departure; •The restoration of the requirement for attestation of registration documents by the Pakistani embassy; •All vehicles imported under any scheme to be Euro 3-compliant; and •The age limit for old and used vehicles imported under any scheme to be limited to three years for trucks and buses.

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Automotive Sector - Update

Car sales jump by 61pc to 17,563 units in July

An auto expert Furqan Punjani observes that July sales are not an actual depiction of the sector’s fundamental and they are expected to ease down going forward. The new fiscal year has kicked-off on a positive note for the car manufacturers. As per the latest data released by Pakistan Automotive Manufacturers Association (PAMA), country’s auto sales surged by a significant 61 per cent to 17,563 units in July 2011 against 10,942 units in the same period of last year. On monthly basis, the volumetric sales improved by 134 per cent compared to 7,517 units sold in June 2011. Th is significant im provement is primarily attributable to deferred sales from June to July as buyers opted to take advantage of 2-3 percent cut in prices on account of reduction in sales tax by 1 percent and other measures announced in Federal Budget FY12 Company wise breakup shows that, PSMC led the increase with 116 percent rise to 11,997 units compared to mere

4,503 seen in same period last year, while sales for INDU declined by 9 percent to 4,551 units compared to 4,999 units in July 2010. An auto expert Furqan Punjani observes that July sales are not an actual depiction of the sector’s fundamental and they are expected to ease down going forward. Furthermore, amid absence of aggressive consu mer financing due to higher markup rates and nominal growth in agriculture economy the volumetric sales for FY12 will only show an improvement of 5-10 percent. Despite improved volumetric sales, he maintained ‘Market-weight’ stance on the sector on account of strained margins amid continuous appreciation of Japanese yen and high regulatory risk....

Jeeps, cars, LCVs production goes up in Pakistan Production of jeeps and cars increased 9.8 percent during the fiscal year 201011 as compared to last year, according to Federal Bureau of Statistics (FBS). As may as 134,855 jeeps and cars were produced during July-June (2010-11) as compared to the production of 122,819 units during the same period of last year, showing an increase of 9.8 percent. However, production of jeeps and cars declined 12.14 percent in June 2011 as compared to the production of the same month of last year. As many as 10,743 jeeps and cars were produced in June 2011 as compared to 12,228 jeeps and cars in June 2010, the FBS figures revealed. The Production of Light Commercial Vehicles (LCVs) also surged by 22.96 percent by going up from 15,568 units in July-June (2009-10) to 19,142 units

in July-June (2010-11), the figures revealed. In the month of June 2011, the production of LCVs also witnessed positive trend of 34.01 percent as compared to the same month of last year. As many as 1,777 LCVs were produced in June 2011 as compared to the production of 1,326 units during June 2010. On th e oth er h and , motorcycle production in 2010-11 increased by 17.88 percent by growing from 1,389,047 units in 2009-10 to 1,637,450 units in 201011. On monthly basis, motorcycle production increased by 16.53 percent in June 2011 as compared to the production of the same month of last year. Motorcycle production in June 2011 stood at 149,184 units against 128,026 units in June 2010, according to the data....

visit: www.automark.pk

IMC profits down by 20% The profitability of Indus Motor Company (IMC) has declined by 20 per cent in FY11, while the company posted earning per share (EPS) of Rs34.9 as compared to EPS of Rs43.81 last year. IMC posted a lower profitafter-tax of Rs2.713 million during the year ending June 30, 2011 and declared a final cash dividend of Rs10 per share. According to the results despatched to Karachi Stock Exchange (KSE) here on Wednesday, p re-taxprofit of the company declined to Rs4.011 billion compared to Rs5.242 billion in 2010. Net sales jumped to Rs61.702 billion as compared to Rs60.093 billion in the same period last year...

The 10th China International Motorcycle Trade Exhibition China Council for the Promotion of International Trade China Chamber of Commerce for Import and Export of Machinery and Electronic Pr od u cts Ch ina A ssoc iat ion of Automobile Manufacturers Ch on gq in g Mu ni ci p al P eop le ’s Government Date: For trade visitor and media: October 13, 2011 For public: October 14-16, 2011 Venu e: Ch ongqing Inter national Convention and Exhibition Center The 10th China International Motorcycle Trade Exhibition (hereafter refers as CIM A Mot or 20 11), th e l ar gest motorcycle exhibition in Asia in 2011, will be held on October 13-16, 2011 in Chongqing, China. CIMAMotor has been held annually since 2002, and has become the world largest and the most important event for commuter motorcycles after 9-year continuous development. The output and sales of Chinese motorcycles, accounting over 50% of the world, has been registered world No.1 for 17 consecutive years, and the export of motorcycles also hit the record of world No.1 for 10 consecutive years. In China, over 99% motorcycles are used as commuting tool, while the exported ones are mostly found in the 3rd world countries.

w ww.auto m a rk.pk | Septem b er-2011 | Pa ge 20

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Automotive Sector - Update

B ik e m a k e rs p la n h e a v y in v e s tm e n t in c o m in g y e a rs In this regard, Fahad Iqbal CEO, HKF Engineering, makers of Ravi motorcycles said that the industry now has to fulfill the growing demand in both domestic and global markets and for this, it needs to invest over $100 million in the next couple of years to keep abreast with market needs and demands.

To effectively cope with domestic market of over 1.5 million units and after successful launch of their products in global markets, the local motorcycle producers are now planning a further investment of $100-150 million in their existing units. The motorcycle industry analysts have pointed out that despite numerous hiccups faced by the economy in recent years, growth in motorcycle production has been robust at 15 per cent. “A decade back, the total motorcycle production in Pakistan was around 100,000 units, now the largest player alone is rolling out half a million units while total production of two wheelers has crossed 1.5 m illion. Th ey said th at t he encouraging aspect in this regard is that industry is on the path to sustained g row t h. Th e loc al dem and for motorcycles is likely to exceed 2 million units within a year or two,” they added. “The global response to our quality motorcycles indicate a sustained and healthy growth in exports as well” they opined, adding that in fact, the industry

experts are seeing themselves as the largest exporters in the engineering sector. A sustained growth is only possible due to regular investment and up-gradation of technology in the motorcycle industry. “The growth we see in motorcycle production would not have been possible without investment”, they added. In this regard, Fahad Iqbal CEO, HKF Engineering, makers of Ravi motorcycles said that the industry now has to fulfill the growing demand in both domestic and global markets and for this, it needs to invest over $100 million in the next couple of years to keep abreast with market needs and demands. He said that all the motorbike producers having production of 50,000 units or above are now planning to expand their capacities to cope up with the market demands. “There are almost a dozen players that have achieved this production level” he said, adding that even if each of them invests $10-15 million, th e total investment would cross $150 million. These units have been regularly making investments to increase their market share but now they have reached a level where they have to invest in high-tech parts to ensure that instead of having

90 per cent local components, Pakistani bikes are produced by 100 per cent local parts, he added. Market analysts urged that in such an encouraging situation, the government should refrain from taking steps that might jeopardise this investment. He said that an investment of $150 million by local players without any government concession is better than vying for similar investment over a period of 10 years from a foreign company. The current players, from Italy, China and Japan, are also in various stages of developing new models in the 100-150 cc range with the latest technology, he said. However, he added, they were not offered any relief even on imports of the environmentally fr iend ly Euro 2 components, which have already been introduced in local bike production. “Capacities exist in the country in areas like sheet metal parts and there is a huge investment need in areas such as die casting for parts like crank cases and crank covers, electronic parts such as CDI units, engine parts like ACG, clutch, pistons, shock absorbers (cushions), plastic parts such as emblems” said Arshad Awan CEO General Engineering a nd ad d ed th at even c ap a cit y enhancement and thus investment will be needed in low-tech parts like head lights, tail lights etc. As the industry size grows it nears the critical mass and as a result high investment parts like Carburettors, EFI, Chain Drive and Sprockets sets will be localised. The industry estimates that these will become viable investment options as the volumes grow to 2 million units annually and beyond, he said.

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Automotive Sector - Update

Buoyancy Buoyancy in in the the m motorcycle otorcycle sector sector

It is time for us to invest for increasing our production capacity as well as focus on localisation of parts to meet the growing demand in thedomestic market,” says Amir Allahwala, chairman of PAAPAM. The increase in domestic demand and resurgence of exports to Afghanistan over the last few months have paved the way for fresh investment in the country’s motorbike manufacturing industry. The motorbike sales are projected to 1.8 million units by the end of this financial year from 1.5 million units a year earlier, indicating the need for increasing production capacity and localisation of the parts, especially the high-tech engine parts, to remain competitive in the region. The motorbike exports have risen to 2500 units a month since Ap ril. This compares to an average export of 1200 units per month before April. If the industry is able to sustain this trend its total exports could double this year. The motorbike exports had experienced a steep fall of 135 per cent to $1.34 million from a peak of $3.5 million in 2009/10 after the government withdrew the research and development (R&D)

facility of $50 a unit on exports. Some manufacturers are of the view that the decline in motorbikeexports would have been much higher on the back of withdrawal of the R&D facility but for prudent marketing strategy of the major players in the motorbike industry.. Fahad Iqbal, a motorbike manufacturer, says the turnaround in exports is indicative of the resilience of the domestic motorbike manufacturing sector.

New Super Power SP-125 motorcycle launched by N. J. Auto Industries N.J Auto Industries, a Pirani Group Company has maintained its tradition by offering new look & design of Motorcycle to its customers. New Super Power 125cc (regular) is introduced to the market. Despite very unfavorable economic conditions & cold market activities in the holy month of "Ramadan", N.J Auto Industries has taken initiative to launch new SP-125 with the hope that its style, heavy body look and durability would catch attention of its customers during Eid sales. Nevertheless market sources have appreciated this bold step of N.J Auto Ind and showed confidence upon this product to gain reasonable sales figures. This new SP-125 cc motorcycle offers style, comfort, thrill and smooth drive, it is commonly said in the market that by maintaining its high level of quality

standards, unique features, elegant style and prompt after sales service, Super Power products have gained a great level of confidence in the market. N.J Auto Industries currently enjoying its position among top five motorcycle producing companies in the country. Large variety in Product Line signifies its position from other brands and now keeping in view the ever growing demand of motorcycles, N.J Auto Industries offering more variety to its customers by introducing different styles in same category & displacement. N.J Auto Industries has already got a successful exposure of Special Edition by introducing Deluxe model in 70 cc category and upon that success they moved on further to do the same experience in 125 cc by adding this new Super Power 125 cc....

“The progress we have made over the last ten years shows that Pakistani entrepreneurs can compete with the best in the world if consistency of policies is ensured.” A JICA study shows that Pakistani motorbikes are most cost competitive in the region because of low-cost labour. Domestically, the manufacturers and vendors feel, the growing population and deteriorating public transport is pushing demand. In spite of poor economic conditions for the last four years, th e growth in motorcycle production has been a robust 15 per cent as total production grew to 1.5 million units from 0.1 million 10 years ago and is projected to rise to two million units in a couple of years. “The quality and competitive prices of locally produced motorbikes have not only effectively discouraged imports, our exports, mainly to Afghanistan, are also rising in spite of the withdrawal of the R&D facility to exporters,” he says. . “The

largest motorbike producer, Honda, has achieved 90 per cent localisation of parts. Other major Chinese motorbike assemblers have attained 60-70 per cent localisation. The increasing demand and market competition will bring greater pressure on them to enhance the level of localisation of the parts in order to stay competitive and profitable.....

www.a uto m ark.pk | S eptem ber-2011 | Pag e 22

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by Mohammad Danish

Automotive Sector - Article

Working of Spark Plugs

Spark plugs produce the sparks that ignite the air fuel mixture in the combustion ch ambers. Each plug consists of a metal rod, called an Electrode, surrounded by a ceramic insulator. The lower end of the insulator is incased in a threaded metal shell that is screwed into the cylinder head. Another electrode is welded to the shell. It is separated from the center electrode b a small air gap. High voltage current from the distributor flows down the

center electrode and jumps this gap in the form of a spark which ignites the mixture present in the combustion chamber. For good engine performance, this spark must be large enough and last long enough to ignite the air fuel mixture efficiently. The wider the gap, the bigger the spark. But wider gaps require higher voltage to produce any spark at all. Every engine has a specified spark plug gap which may vary from 0.5mm to 2 mm. the gap can be adjusted by bending the side electrode. If the gap is too wide, the plug may not fire because the ignition system cannot produce enough voltage to jump that particular gap. If the gap is too small, the spark may not be big enough to ignite the air fuel mixture. The gaps must be checked periodically because the electrodes corrode on use with the period of time. Other causes of weak or erratic sparking

are dirt, oil or water on the outside of the ceramic insulator, a cracked insulator or fouled electrodes. All t hese fau lts can create an alternate path for the high v o l t a g e c u r r en t between the ignition cables and the cylinder head. Such current shortcuts are called Short Circuits or just Shorts. One misfiring spark plug can increase fuel consumption by 10 to 15 percent on a V-8 engine and 25 to 35 percent in an inline four cylinder engine. Modern spark plugs handle as much as 40,000 volts of electricity and temperatures as high as 4500 deg. F for up to 30,000 miles. Plugs that last for about 50,000 miles have been made but they have such expensive features as platinum electrodes.....

FIEDMC signs MoU with HRC A Memorandum of Understanding (MoU) was inked between Faisalabad Industrial Estate Development & Management Company (FIEDMC) and Halal Research Council (HRC) at FIEDMC Headquarter last month, for the strategic partnership to promote Halal Industry at Pakistan’s First Halal Industrial Park located at Faisalabad. Khawaja Asim Khursheed Chairman FIEDMC and Zubair Mughal, Chief Executive Officer (HEC) HRC signed the MOU on behalf of their companies. Khawaja Asim Khursheed announced the launch of Pakistan’s First Halal Industrial Park located at M-3 Industrial City Faisalabad. M-3 Halal Industrial Park will sprawl over an area of 200 acres. He said that Halal market was growing at a fast pace and had drawn interest from all around the world. He said that Halal food had the global market size of USD 635 billion. Th e establishment of M-3 Halal Industrial Park was the need of the moment and it w ill significantly contribute to the economy of Pakistan, he added. Brigadier (Retired) Ahmad Raza Siddiq COO, FIEDMC briefed the participants about the availability of

FIEDMC chairman Khawaja Asim Khursheed and Muhammad Zubair Mughal, CEO of Halal Research Council, sign a deal for creating a halal industrial park in Pakistan. state-of-the-art international standard infrastructure of M-3 Halal Industrial Park Faisalabad and establishment of working group of all the stakeholders of Halal Industry at M-3 Halal Industrial Park. Hamid Yaqoob Sh eikh Secretary Livestock & Dair y Development Department said that government of the

Punjab would extend full support for the promotion of Halal Meat and Dairy Industry at M-3 Halal Industrial Park. He emphasized the need of value addition in the said industry and its export to Gulf and European markets. Mr. Zubair Mughal CEO HRC gave a detailed presentation on Halal Industry and its potential.—APP

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Corporate Event - Picuters

3rd Master Oil Ramazan Night Cricket Tournament HI-Speed sponsored 70cc motorcycle for the winner team

www.au tom ark.p k | Sep tem ber-2011 | Page 28

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Launched a new brand

by Muhammad Tahir Javed

KING has Arrived to Live LONG

A Step Toward Better Public Transportation The life pattern of a common man in Pakistan has altogether changed in last two decades. The living environment like Health, Education and Transport for its citizens is supposed to be the foremost priority of any government regardless of its geographic or economic orientation. Governments, of any variety, are responsible to provide public transport, for social, environmental or economic reasons. Policy-makers all over the world are facing demands to meet the changing mobility needs of citizens in ways which are economically, s o c ia l l y a n d e nv i r o nm e n t al l y sustainable. But unfortunately, here in Pakistan, a country of 180 million people; public commute system has deteriorated to its lowest mark with little hope to improve primarily for virtually ignorance, lack of capacity and capability to address it. Almost all the attempts by the federation and p rovinces to revamp public transport by introducing large buses have faced severe dents for a number of reasons. The operation of large buses especially in Urban Transport failed to attract fleet operators due to huge capital investments, ever rising operational cost, uncertain long term policy, sense of insecurity for investors due to past experience, turbulence in country’s p olit ical and economical a rena. The Pakistan Commercial Vehicle Market has experienced phenomenal c h a n g es a nd r a p i d c h a n g i n g

provide respectable mean of alternate commutation to the citizen of Pakistan.

King Long…… Love Long in Comfort & Economy

t ech nologi cal dev el opm ent a nd diversified needs have forced suppliers to tailor products to meet customer’s changing demand. Unlike 80’s and 90’s when customers had little choice; now our valued customers have a wide range of options from around the globe that has not only widen the products horizon but also compelled the traditional automobile suppliers to adopt customers based strategies focused on Services, Quality and Performance achieving ultimate fuel economy, in the period of ever rising operational cost.. Du e to th e non ava ilab ility of appropriate Public Commute Large Buses for a long time, our valued customers had no choice but to rely on obsolete technology available in market that pushed the fleet operators for using Old Vans imported from Japan. It was keenly felt to introduce new brands capable to meet customers today’s and future needs of public commutation and

Afzal Motors once again took lead and stepped forward with the launching of “KING LONG” HIASE Vans in Pakistan. It was the image and credential of Afzal Motors (Pvt.) Ltd. that gave KING LONG to award “Exclusive Distribution” for marketing its products initially in CBU followed by assembly. KING LONG is among Chinese top rank in domestic and export markets. KING LONG remained rank No. 1 in China Van/Bus for export with networks spanning five continents and more than 55 different countries and regions. Benefiting from the world industrial division, KING LONG has developed d ee p c oop er a ti on w it h G l oba l manufactures and industrial design companies for continuous innovation and advancement. KING LONG hopes to supply excellent service to Pakistan a nd th e World roa d p asseng er transportation with better products and better quality. KING LONG believes that KING LONG will be the new No-1 choice of the customers in Pakistan due to the various requirements and continuous development of KING LONG also believes that such a choice is bound to reach win-win.

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Launched a new brand KIN G LON G h as b een abl e to manufacture more than 200 kinds of products ranging from 4.5m to 18m, which include bus, coach, van, passenger car and special vehicle. KING LONG has remained a stable performance growth during the continuous 25 years. KING LONG devotes to the research of market and the development of products, bringing in advanced technologies of Japanese Toyota, Nissan, Hino and German Benz, Man and English trans bus, which makes the products possess good performance and abundant types, continuously meet the demand of the mar ket, and g et th e costumers’ reorganization and praise. Quality is the lifeline of the enterprises. KING LONG Vehicles, with stringent quality control and commitment to high quality, are the most fundamental embodiment of KING LONG’s “Client Value Foremost” philosophy. KING LONG’s ruthless pursuit of quality excellence has allowed KING LONG to o b t a i n v a r i o u s na t i o n a l a nd international quality management system certifications including ISO 9000 system certification and VCA (Vehicle Certification Agency) certification.

KING LONG VAN “HIASE” in Pakistan

A fzal M otor s alw ay s r em ained customer’s best choice for buying commercial vehicles. We had realized that it was our responsibility to supply transport equipments and introduced measures that could bring our valued customers further close. It was based our ongoing research; we introduced New Generation of “KING LONG Van “HIASE” in Pakistan. The “HIASE” vans are a result of tremendous blend of various technologies resulting a graceful machine not only producing Power but Comfort, Appearance and Luxury as well. KING LONG HIASE will serve an efficient mean of public transportation especially as medium size commute equipment with 15 comfortable fabric seats. HIASE will be a best machine for Urban Transportation, School, Colleges, Corporate and Short Distance Intercity operation. HIASE would also be equally suitable as Family Car, Ambulance and Distribution Vehicles.

HIASE Powered with 491 Series Engine

Only Powered with Fully New Standard Engine 491 series can bring free drive. Equ ipped with the most advance Gasoline (Petrol) engine producing 102 hp, the New HIASE of KING LONG integrates tremendous power with splendid fuel economy and endowed with endless soul. The HIASE can be d riven at your will in Starting, Accelerating, Climbing and Swerving. HIASE equipped with Gasoline (Petrol) engines are Originated from Advanced Power of Toyota, High Efficiency and Low Consumption. KING LONG HIASE engine incorporate all the latest features like CVVT, ETC and I-EGR for efficient and stable drive.

Specious InteriorFabulous Instrument Panel

KING LONG HIASE creates its elegant nature with sophisticated internal environment. The Car-Like design elements are completely melted it the design of dynamic instrument panel with smooth and fluent lines. The integrated center control platform combines with perfectly matched body exterior to provide you with sedan enjoyment and d isplay luxurious commercial atmosphere.

Fully New Appearance

KING LONG HIASE arouses our attention with its foresight. The front d isp lay, i n p erfect fash ionab le commercial atmosphere meanwhile adds more safety. The large –mouth style with chroming body exterior embodies fashion and grandeness. The Eye-Shaped Crystal Head Lamp shows smartness and acuteness.

• Comfortable and Spacious 15 Fabric Seats • Dual Air Condition • Front Heater • Radio + MP3 • Front & Rear Wipers • Hi-Mounted Stop Lamp • Power Steering • Adjustable Four Spoke Steering Wheel Optional • ABS/EDB • Metallic Color A large number of KING LONG HIASE Vans plying in China and many other countries endorse the quality and reliability of KING LONG Brand. The KING LONG name means quality that incorporate a simple design philosophy: Give owners a vehicle they can trust. HIASE Vans attract customers seeking a new standard of maneuverability, comfort, durability and performance. HIASE customers are choosing the bestbuilt products in the world. HIASE reflect precise, integrated engineering and manufacturing, exceptionally low m a i n t en a nc e a nd d e p e nd a b l e performance plus the maneuverability that improves productivity, and the reliability that keeps a business on the move. HIASE Vans with comfortable and functional structure that owners can operate effectively with design and constr uction focu sed on rugg ed performance, and the quality and w o rk man s hi p t hat me e t th e International standard, the highest standard in the world. In view of the definite performance and economic advantages of inducting KING LONG HIASE Vans, we look forward to ou r cu stomers to r ec eive t heir patronization. Our team is committed for long term relation with customers that will go a long way to encourage us to continue to offer better transportation solutions in the Pakistan market. .....

HIASE Salient Features

• Convenience – Luxury-Power-StylePerformance • Powerful 102 HP– Petrol EFI Engine • Aerodynamic Design- Specious Interior

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Technical Education - Article

by Yakoob Gaziani

The Importance of Technical Education & Vocational Training (TEVT)

There is an ever increasing requirement of skilled human resource globally and the opportunity for Pakistan to increase remittances through human resource export. The world is experiencing major changes in patterns of production and trade as well as dramatic innovations in Technologies. With the advent of new technological age, basic skills will not serve the purpose. Industry requires new workers trained on the different types of latest equipment and machines which demand various types of skills. Changes in the nature of work, the technologies of production, and in standards for manufacturing and agriculture have pedagogical and ed u c ati ona l p r ereq u isi tes. Th e competitive situation is affecting modes of production. In a more competitive economy, productivity, quality and flexibility are more important for the success of production, linking the process of technical and vocational education to real work and market situations.

Technical Education & Vocational Training (TEVT) in Pakistan:

In Pakistan during 1947, it was inherited an inadequate system of Technical Education & Vocational Training (TEVT) for industrial development. There were only two engineering colleges, a few vocational institutes and not a single polytechnic institute to fill in the communication gap between engineers and skilled workers. It cannot be denied

that for the development of industry a complete engineering team is needed, comprising semi-skilled and skilled workers, technicians and engineers, therefore, technical education is given due importance in the TEVT System in the world. In the latter part of the fifties therefore, two polytechnics and a Pakistan Swedish Institu te of Tech nolog y star ted functioning. Later on more polytechnics a nd t ech nica l tr aini ng c ollege, commercial institutes, vocational institutes were established. Now there is a moderate network of polytechnics, Government Vocational Institute (GVI’s), Apprenticeship Training Centre (ATC’s), Tech nical High Schools, Commercial Institute and Engineering Colleges throughout the country. But the output of all institutions, even today, makes only a minority of the total work force. Keeping in view the technological changes and to keep pace with the policies and priorities of the Government of Pakistan, the Ministry of Education i s m aking c onc erted effor ts to restructure the TEVT system in the country. Various TEVT institutions are managed by different organizations of the Government: Various TEVT institutions are managed by different organizations of the Government. Each institution has its own objectives and the training programs reflect a wide range of contents, structures, durations, entry qualification and modes of training.

Training programs prepare for a variety of jobs in the labor m ark et –f ro m in dustrial to agricultural related work, urban to rural, Muhammad local to overseas Yakoob Gaziani employment, labor intensive to high technology. Courses range from 4 months to 2 years for certificates issued by the Boards of Technical Education, the National Training Board, Trade Testing Board or t he tr aining ag enc y. Cu rr icu la, instructional method s, instructor competencies, physical facilities and equipment vary from institution to institution. However, education systems, economic and legal environments as well as political and administrative parameters vary from country to country and even within countries Keeping in view of the above, there are Vocational Training Institute setups on community level, among the best facility is in Korangi No. 5, Karachi, is the Memon Industrial & Technical Institute (MITI).

What is MITI?

Memon Industrial & Technical Institute (MITI) has been setup under the auspices of World Memon Organization (WMO) to impart vocational training in various disciplines. The fast-track training courses offered are tailored to help unskilled people/youth to learn ski lls to ex pa nd th eir ea rni ng opportunities with respect and peace. This will also lead to develop trained manpower to cater the needs of local industry and also fulfilling the ever increasing demand of high level of competency and professionalism in international job-market of skilled and semi-skilled workers.

Who is behind MITI?

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Technical Education - Article The idea was surfaced in April 2007 when the delegates from India, who were present in Karachi to attend the 5th Annual General Assembly Meeting of World Memon Organization - Pakistan Chapter (WMO-PC), got in contact with the City Nazim, Mr. Mustafa Kamal, and conveyed the desire of WMO to establish a vocational training institute in city on the lines of Ebrahim Bawany Industrial Training Institute that was running successfully under the auspices of Islamic Study Centre at Baroda, India and was amongst the highly honored institutions of state.

MITI Facility:

WMO-PC has started this project in collaboration with CDGK and the City Nazim got inspired by the idea and agreed to move ahead in this regard, various sites offered by the City Government, which judiciously decided upon accepting the Korangi Civic Centre-III, free-of-cost on 15 years lease agreement, a four level building with constructed space of 136,000 square feet, situated on Plot No.ST-1/8, Sector 3 6-A , Kor ang i 5 1/2 , Ka ra ch i.

Courses are offered for Boy’ s Wing:

All following courses are of 4- Months duration, 3 hours class, 6 days a week. Morning Session (9am – 12pm), Afternoon (2pm – 5pm) and now introducing from September 2011 Evening Session (6pm -9pm). Monthly Fee Rs. 500 and Registration fee Rs. 100 (Valid for all courses) (Total fees for 4 Month duration course becomes Rs. 2100 only). 1. CNG Kit Installation & EFI tuning 2. Generator Operator/Technician 3. Air-conditioning & Refrigeration 4. Welding (Gas & Electric, TIG, MIG) 5. Industrial Electrician 6. Home UPS Installation & Repairing 7 . M ob il e Ph one r ep ai r ing in

passing ou t stud ents to relevant industries in Karachi and get update with their present requirement and demands for Skill workers. If you need more information in this regards, please visit MITI website: www.wmomiti.com And also see my Interview in Memon Online HAQ TV channel in Memon Language, available on a Youtube.com h tt p :/ / yo utub e/ T Y I 5cO r y1f I. collaboration with United Mobiles 8. General Electrician 9. Motor Winding 10. Lift Technician in collaboration with Ardent Elevators 11. Auto Electrician in collaboration with Thall Engineering 1 2 . A u t o A i r - C on d i t i o n ed i n collaboration with Thall Engineering 13. Auto Mechanic (Diesel & Petrol) Technical Support by Master Motors 14. Plumbing 15. Motor Cycle rep air ing in collaboration with Suzuki. 16. Computer Hardware Repairing. 17. English language

Courses are offered in Ladies Wing:

All following courses are of 4-Months duration, 2 hours class, 6 days a week: Morning Session (9am – 11am and 11am – 01.00pm), Afternoon (3pm – 5pm). Monthly Fee Rs. 300 and Registration fee Rs. 100 (Valid for all courses) 1. Sewing & Cutting 2. Beautician Basic Level 3. Beautician Advance Level 4. Embroidery (Hand, Machine) 5. Cooking and Baking 6. Fine Arts 7. Textile Designing 8. Interior Decoration 9. Computer MS-Office 10. Computer Graphics 11. English Language 12. Mehndi At present in boys wing 900+ student got admission in current session (May – August 2011) and in Ladies wing 2500 + students got admission in current session for the above mentioned courses. Jo bs op port uni ti es for M ITI Student’s: At MITI a special department has been c r e a t ed n a m ed a s In d u s t r i a l Relationship Department (IRD) which has prime function is to introduce MITI

Memon Community and MITI:

In last, but not the least, I would like to take this opportunity to appeal all memon communities and especially to memon parents that kindly pay the visit to MITI with your family, friends, near dear ones to explore the best vocational training setup. Admission does open in January, May and September 3Sessions, every year. After completing, this course will add the value to your kids basic skills, utilizes the best time in learning the different technology and they are also provided with better job opportunities, but unfortunately, regrets to say, that at present there are only less than 5 percent memons are enrolled in the above mentioned MITI Courses program, w hich is very unfortunate and depressing situation for the WMO community, who had created this infrastructure for memons, to enhance and widened their scope of technical education and also to help less privilege memon people, but there are no such response has yet seen, nor found any progress in this segment. Now, it is our duty to promote MITI activities among our communities and also prepare others to come forward.

WHY? The Memon Community is lacking in Technical Education & Vocational Training.

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Automotive Technology - Review

by Khurram Sohail

What is robust design?

The designs of the product that can sustain abnormal change develop because of environment, use or etc. What is the criterion to judge robust design? It’s not easy to answer because the c riteria set to check rob ust parameters differ from company to company for example some companies’ state that their product will give failure free performance up to 5 years or 10 years this does not implies that the product will fail after stated period but its performance will not be up to mark after that period. But companies like Rolls Royce motors design each and every component for vehicle that give

Modal analysis of the engine block Conclusively, there are reasons, from my points of view, which are as follows:

1. MITI is too far from the city. 2. MITI is for poor and less privilege people only. 3. Short Courses means certificate, has no value. 4. Practical work, physical work and with bear hands. 5. Regular daily basis classes for 3 hours.

We, all memon communities, regrettably have not understood the scope and facility available at MITI. We are probably feeling that MITI project is the training setup for poor and less privileged people only, then how can they send their children to MITI as this will change the values of their family in the society, status and so forth, etc. One more concern is the distance; MITI facility is in Korangi No. 5, and due to this many families are not sending their kids due to being far. However, this is not a problem. In our religion too, it is

failure fee performance till end that’s the reason almost 65% of there up till manufactured vehicles are still on road with no problem. Now the critical part comes how to achieve robustness in design. The question is if Rolls Royce can make vehicle that last longer why not every car manufacturer adopts the same to give such products, so here where we include cost factor because to achieve robust design huge investment on R&D phase is required that limits the dream. In first phase of R&D, design constraint and parameters are set that includes its medium of use and material selection process which is very crucial since all depend s on material. Then after development of CAD model certain analyses are perform on FEA (Finite element analysis) software (two engine model analysis are shown in the picture) and else are performed on static and dynamic testing equipment. Thus results evolve certain changes in basic design and again testing performs, this cycle continues till satisfactory mark is achieved as set by company.The current

technology and the us e of su pe r computers for FEA processing open the doors to achieve the h ig h est l evel i n robust and reliable design but the cost factor and certain material restrict the companies to achieve this level...

clearly emphasized and there is one Hadees Shareef also, that if you want to learn hard and would like to take more education, then you can go to even China or any part of the world. I hope you have heard about the FAST computer institute, located on Main National Highway, and CBM Institute, located at Korangi Creek, also far from city, but there are many students are going there. But MITI is in the city and, if few kids get together and make one station then the area community with the help of WMO will arrange the transportation to-n-fro to MITI. In all technical fields certificate’s / d i p l o m a ’s a r e t h e se c on d a r y requirement, the first thing what any organization look in to, are the technical abilities, trade skills and capabilities of the person, to see how much strong in it and then the documentation come after. Many families think that if their son will be get admission in an engineering, medical, CA, MBA etc, he will earn good money & value in society, But this is not true for all memons, because not all the

memon families can afford to do the same, as mentioned above. The middle and lower class has the opportunity to get trained at MITI and start earning after 4 months and that way their present earning will get better and if they take more expertise during job and persistent in the job, they are promoted and st art to earn more bett er .

This model illustrates an automotive engine mechanism model with the conrods modeled as substructures for improved computational efficiency.

I hope after reading this article, memon communities will take special interest and will take necessary action to take part in a form of group to pay a visit to MITI facility along with their family, friends and will try to influence the mind of their children to take advantage of this huge project of WMO-MITI, created, implemented and progressing ahead in operation for all Memon Communities and as well as for the people of Pakistan, in greater extent. May Allah give us the Strength & Courage to serve the nation better, Jazzakallah....

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International Automotive - Update

Honda recalls 72,115 City cars Car recall has come back to haunt Honda yet again. The Japanese automaker on last week called back as many as 72,115 units of its 'City' sedan to guard against a potential power window switch problem in cars manufactured from 2005 to 2007. This comes as part of a worldwide recall the company has issued, covering as many as 962,000 cars, to fix power windows and computer systems. While the global exercise also covers models like the Jazz and the CR-V crossover, in India it has only been issued for the City. Honda Siel India said it will carry out the "preventive part replacement" free of cost and owners would be contacted for the same. "Although no incident has been reported in India, Honda Siel is extending the same exercise to the pr evi ously-sol d H onda Ci ty manufactured in 2005 to 2007," a company statement said. The number of auto recalls has soared over the last year or so after companies across the globe announced call-backs for various defects, led by Toyota that faced a major embarrassment in the US market over an accelerator problem, suspected to be the cause of several fatal accidents. Honda had also announced a big recall last year, as did some other

big car makers. Honda said the current recall is an extension of an earlier exercise it conducted in January last year, where it called back 8,5 32 City models (manufactured in 2007) to fix potential power window switch problem. While these cover the previous generation City, the company had also issued a recall for the latest version of the model in February this year when it called back 5 7,853 units (manufactured from November 2008 to December 2009) to replace a faulty part, again as part of a global exercise. Recalls are not very prevalent in India and companies are not very eager to announce them as they fear a negative fallout on the company's brand. Also, lack of an official recall policy in India makes many of them go quiet on the matter and report it only when it affects the global markets, many of which mandatorily seek announcement of a recall in case of a defect that is generic

FAW builds its first plug-in and EV

China FAW Group Corp.'s first two alternative-energy vehicles, a plug-in hybrid and a pure electric vehicle, rolled off the production line last week at its plant in the northeast China city of Changchun. The vehicles are developed on the platform of FAW's Besturn 550 gasoline compact car. The Besturn plugin hybrid's gasoline consumption is 60 percent less than the corresponding gasoline model, the B50. Powered by a lithium ion battery pack alone, the plugin hybrid has a range of 70 km on a full charge, FAW said. The Besturn EV, powered by lithium ion batteries, has a range of 170 km on a full charge.. in nature...

Automotive Giants to collaborate on new Hybrid System Leading manufacturers of hybrid vehicles, Ford and Toyota announced yesterday that they have signed a memorandum of understanding (MOU) on t h e p r od u c t d e v el o p m e nt collaboration, with the formal agreement expected by 2012. Both companies have been working independently on their own futuregeneration rear-wheel drive hybrid systems. The collaboration will see both Ford and Toyota act as equal partners on the design and manufacture of hybrid powertrain technology for light trucks and SUVs, and bring these technologies to market sooner at more affordable costs for both companies. The new co-developed hybrid system

will be used in rear-wheel-drive light trucks expected to arrive in the later half of this decade. According to a statement released by Ford, the rear-wheel-drive hybrid system will be based on an all-new architecture to deliver the capability truck and SUV customers demand while provid ing g reater fuel economy. “While the rear-wheel-drive hybrid system will share significant common technology and components, the two companies will individually integrate the system into their own vehicles,” the statement reads. “Each company also will determine the calibration and performance dynamics characteristics of their respective light

pickups and SUVs.” In a move to help bring more Internetbased services and useful information to consumers globally, both companies have also agreed to work together on enablers which complement each company’s existing telematics platform standards. The telematics collaboration relates only to standards and technologies. Ford and Toyota will continue to separately develop their own in-vehicle products and features. Toyota launched the first-generation Prius in1997. The car was the world’s first mass-produced gasoline-electric hybrid and has since sold about 3.3m hybrid vehicles.....

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Car / Light Vehicle Price List

SUZUKI

Model MEHRAN VX 800cc MEHRAN VX (CNG) 800cc MEHRAN VXR MEHRAN VXR (CNG) ALTO VX 1000cc ALTO VX (CNG) ALTO VXR ALTO VXR (CNG) SUZUKI SWIFT 1.3L DLX CULTUS Efi VXRI CULTUS Efi VXRI (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) LIANA 1.3L LE MT PETROL LIANA 1.3L LE (CNG) RAVI PICKUP ST308R VX RAVI PICKUP ST308R VX CNG BOLAN VAN VX Petrol BOLAN VAN VX CNG BOLAN VAN VTR PETROL BOLAN VAN VTR CNG SUZUKI VAN CARGO APV 1.5L JL SX MT (CBU) APV 1.5L JL DX MT (CBU)

CHEVROLET

Mo del CH EVROLET JOY CN G CHEVR OLET JOY Petrol

Price Rs. 481,000 Rs. 533,000 Rs. 535,000 Rs. 586,000 Discontinued Discontinued Rs. 690,000 Rs. 749,000 Rs. 1,106,000 Rs. 890,000 Rs. 943,000 Rs. 1,205,000 Rs. 1,276,000 Rs. 1,175,000 Rs. 1,246,000 Rs. 508,000 Rs. 564,000 Rs. 619,000 Rs. 604,000 Rs. 620,000 Rs. 682,000 Rs. 536,000 Rs. 1,859,000 Rs. 1,934,000

Price R s. 569,000 Rs. 539,000

NISSANCARS

Model Sunny Ex-Saloon 1.6L M/T Sunny Ex-Saloon 1.6L CNG S. Super Saloon 1.6L M/T S. Super Saloon 1.6L CNG S. Super Saloon 1.6L A/T NISSAN S. S. Saloon 1.6L A/T CNG

Price Rs. 1,225,000 Rs. 1,305,000 Rs. 1,370,000 Rs. 1,450,000 Rs. 1,470,000 Rs. 1,550,000

Diesel Truck PKB 211 Diesel Truck PKD 411H Diesel Truck PKD 411E Diesel Truck PKD CD 411 Diesel Prime Mover CWM 454

Rs. 3,000,000 Rs. 4,150,000 Rs. 4,260,000 Rs. 4,600,000 Rs. 5,500,000

NISSANDIESEL TRUCKS

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HONDA

Honda Honda Honda Honda Honda Honda Honda Honda

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

Price Rs. 5,599,000 Rs. 6,000,000 Rs. 1,374,000 Rs. 1,510,000 Rs. 1,725,000 Rs. 1,915,000 Rs. 1,845,000 Rs. 1,990,000

TOYOTA COROLLA

Model Model XLi 1.3 VVT-i 1299cc Petrol GLi 1.3 VVT-i 1299cc Petrol GLi 1.6 VVT-i AT 1299cc Petrol XLi 1.6 VVT-i 1299cc ECOTEC GLi 1.6 VVT-i 1299cc ECOTEC 2.OD STD 2000cc 2.OD SALOON MT 2.OD SAL SUNROOF ALTIS 1.6L Dual VVT-i MT ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT ALTIS 1.6L Dual VVT-i AT SUNROOF

Model

Hilux Pickup 4x sc

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

Model

Model CUORE CX CX ECO (CNG) CX ECOMATIC

Price Price 1,394,000 1,524,000 1,679,000 1,519,000 1,649,000 1,524,000 1,809,000 1,914,000 1,709,000 1,799,000 1,799,000 1,889,000

Price

Rs. 1,509,000

Hilux Pickup 4x4 D/C

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

DAIHATSU

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

Price

Rs. 2,389,000

LAND ROVER

Model Price DEFENDER Rs. 7,79,000 (90 S/WJEEP STD) Rs. 8,29,000 (110 S/W A/C) Rs. 8,90,000 (90 Soft Top)

Price updated August- 2011

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Price

Rs. 2,269,431 Rs. 2,545,000 Rs. 2,150,260


www.automark.pk

magazine@automark.pk

September 2011

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Alternative Energy - Exclusive Article

by Muhammad Yakoob Gaziani

The Alternate Solution Part I

You Love to use the Solar Panel as an Alternative source of Energy. Instead of complaining the AC utility supplier who often cut down the electricity supply due to the maintenance or even the lack of supply or load shedding, you better stand up confidently for being independent user with this solar panel. Magazine’s editions. I will provide you the source what to buy, where to buy the material, technical know how and also provide you the feedback Email address to answer your questions while you face any problem in implementing the solar system.

One of the necessary demands for mankind is the electric power. Who does not need electricity? If you need something to ease your life, electricity will take the first consid eration. Everyone needs it to support their daily life, whether activating certain devices, or lighting the house up. You need it to support your study, your social life, your daily routines, and more. The availability of sufficient electricity is doubted today, authorities who often cut down the electricity supply due to the maintenance or load shedding. Meanwhile, you cannot imagine how life would be without electricity. So, what is the alternative solution for this problem? The answer is the solar panel. This is a tool that will help you get the sun shine and keep it in a battery to be used as electric power supply later. The main reason to write this artic le in Monthly Automark magazine is to familiarize you all with the use and installation of solar panel and to provide you with the technical know how that how to integrate a small solar system for home or office use. Here, it is also important to elaborate, that for this small solar system, readers are not necessary be require any engineering back ground, but any person who is willing to setup the small solar system for home or office, can do it and he will get all information from the series of article will be printed three consecutive article on up coming three Automark

Using Solar Panel as the Source of Power

When you are using lots of electrical devices, you might also think about the solar panel. This is the device to get the power of the sun shine to be processed into electrical power. Solar panel is chosen since solar panel could minimize the usage of the Main Utility Electricity Supply. Therefore, the amount of money that you should pay every month is also minimized. In fact, being able to supply your own electricity demand is quiet satisfying right ?. With this solar panel, you can also minimize the usage of other source of power that might have reduced these far. The sun shine are unlimited and free of charge. This is the main reason why people should consider the usage of the sun power for the daily usage. With the creation of solar panel, you may bring the sun power to your home. You can use solar panel for several devices like lamps, CCTV cameras, and others. All devices that use the DC flow of electricity could make use of this sun power. Meanwhile, the State electricity supply could be used for the AC flow devices like refrigerator and others. For AC application we use INVERTERS device, besides the BATTERY to save the power, which converts the DC from AC and BATTERIES for saving the DC

energy from Solar Panels for INVERTER and all the other appliance of the home which are works on AC will get energize with the Muhammad INVERTER device Yakoob Gaziani a n d th e i r performance will remains the same as what it is on AC main utility supply. There are many things to consider before buying an INVERTER device which will be discuss after in detail.

Where to Put this Solar Panel

If you want to use the solar panel, there are several things that you must know. First of all is about the way you are going to install it. This solar panel is supposed to be placed in certain area that gets the sun shine directly and maximally without any boundaries. Just ensure that the only boundary of getting the sun shine is the cloudy day or rainy season. What matters most is the position of the solar panel and the weather. As long as you can find the best position for the panel, you can get the maximum benefits from the sun shine that are free of charge.

Mounting Solar Panels on Your Roof

To operate at peak efficiency, solar panels should be aligned perpendicular to the sun. But since the sun’s position in the sky is constantly changing, frequent manual alignment is not practical. While solar trackers, which

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Alternative Energy - Exclusive Article

You can install it in your Apartment, house, your office, anywhere you like. It is suitable for every occasion. You just have to make a detail calculation on the electrical power needed.

automatically align the panels for the sun’s daily east to west transition, are available, they are expensive and prone to failure. A less-expensive option is to mount the panels facing south, and to include an easy way to adjust the tilt in order to compensate for the position of the sun in the sky as the seasons change. While the summer sun appears almost directly overhead at mid-day, winter sun appears to the south. The drawing below shows the sun’s position, and the approximate best angle for roofmounted panels for the summer and winter seasons. To determine the optimum angle for your solar panel for each season, you’ll first need to know the latitude for your location. You can find that information here: http://www.weatherunderground.com/ The website listed below allows you to enter the latitude for your location, and then calculates the optimum angle for each of the twelve months of the year: http://www.wattsun.com/resources/c alculators/photovoltaic_tilt.html While you probably don’t want to change the angle every month, changing it two

to four times per year will improve the performance of your array. Using data for my location, I’ve decided to use a 25 degree angle for spring and summer, and 50 degrees for fall and winter. Since my roof is already at a 17 degree angle, my panel mounts need to make up the difference, or an additional 8 degrees for the spring and summer position, and an additional 33 degrees for fall and winter. To measure the angles, I’ve purchased the tool shown below from my local hardware store: Mostly panel mounts using 1” X 1” X 1/8” angle aluminum. You start by cutting two long pieces, one for each side of each panel, securely mount those to the frame of each solar panel, then cut the top and bottom legs, and the feet, to make the bottom legs three inches in length. Elevating the panels three inches above the roof allows plenty of air to circulate under the panels, keeping them from overheating. This is an important design consideration because solar panels loose efficiency at high temperatures. The upper legs, as shown in the photo below, are 8” in length. The difference between the length of the lower and upper legs results in the additional 8 degrees of tilt that I need for my summer configuration. Longer upper legs will be used in the fall and winter months. While only two panels are shown here, additional panels can easily be added along side the others. To do that, the legs between the panels need to be modified slightly. Legs are attached to 3” feet, made from the same aluminum angle stock. I used 2 ½” stainless steel lag screws to securely mount the assembly to the roof. To prevent leaks, I’ve used a generous amount of clear silicon sealer under the feet as I attached them to the roof. To eliminate the possibility of rust, I used stainless steel bolts, nuts, and washers to hold everything together. If you have a south-facing roof on which to install my solar panels. Array mounting would be more complicated, and expensive, if my roof were east-west oriented. Shading from the array in the spring and summer helps to reduce heat in the attic. Notice in the photo that the panel's junction box is at the top, and

therefore easily accessible. An advantage to the steep winter configuration is that snow quickly falls off of the panels. I'm confidant that this mounting structure will withstand high winds, and I have trimmed nearby trees to prevent damage from blowing and falling limbs. I should not experience shading from nearby trees except in the very early morning and again very late in the day. I look forward to the day when six more panels are added to this array.

What Can Be Worked with This Solar Panel

Well, it is true that this sun power through solar panel is different from the common electricity power. If the electricity supply could works for the AC electrical flow, it is different with this sun power that works for the DC electrical flow. With this condition, you will also need t o use d iffer ent kind of devices. For the lamps, you need to use the LED instead of the common lamp. Well, you may get another benefit since this lamp has much longer endurance, and less energy supplies. You will save much money on the monthly spending with these LED lamps, but you need to allocate a little bit more budget to purchase the LED lamps that cost more expensive. Well, it does not really matter right, as long as you consider the effectiveness and effic ienc y o f el ect ri cit y u sag e.

You Love to use the Solar Panel as an

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Alternative Energy - Update

Tips to reduce energy consumption of your house With inflation burning a hole in every pocket and the impending do om of ex ha usti on of all nonrenewable sources of energy, energy conservation today is the buzz word. Not only from the financial point of view, it’s also a responsibility of every i nfo r me d a nd v ig i la nt h ouseh old to contr ibu te towards energy conservation. Howsoever clichéd it may sound but it’s true, energy saved is energy produced. Following are some tips to reduce energy consumption at your home: 1. Switch off unused appliances First things first, always switch off the lights, fans or other appliances if they are not in use. It’s the easiest of all the methods. 2. Washing Always wash full load in washing machines and dishwashers. Prefer drying clothes on lines as it saves about 3-5KW per load of clothes. 3. Computers Energy management options are in all computers. In Windows it’s in control panel. Mac users can find similar options in System preferences. Also instead of ‘stand-by mode’, prefer to use to use ‘sleep mode’. Set the computer to ‘Hibernate’ after about half an hour of inactivity. It consumes lesser energy then to restart the computer again. 4. Energy Star certified appliances Prefer to use only Energy efficiency appliances at home. Also prefer laptops over desktops for they are more energy

Alternative source of Energy.

Instead of complaining the AC utility supplier who often cut down the electricity supply due to the maintenance or even the lack of supply or load sh ed ding , you b etter stand u p confidently for being independent user with this solar panel. You can install it

efficient. Switch over to energy saving TVs from the conventional ones. Use energy efficient lamps instead of tube lights and bulbs with heating filament. 5. Windows Windows are a great way to cool the house as they allow ample ventilation but they must not serve as ‘leaking points’ of conditioned air. Fill in all cracks and crevices in the frames. Always close the windows while AC is on. Replace the windows which you don’t use. Use ‘window treatment’ to enhance their contribution to temperature r eg u la ti on b y exp l oit ing t h ei r ‘greenhouse effect’ in winters and use shades/ awnings/ blinds/ shutters/ mesh/ reflector films etc in summers. Also put up exhaust fans in kitchen and bathroom windows to vent out hot and humid air. 6. Routine maintenance Wipe the dust off the tube lights and bulbs as it decreases their illumination. Check that the door of your fridge closes tightly so that there is no air leak. It can be assessed by putting a currency note in your Apartment, house, your office, anywhere you like. It is suitable for every occasion. You just have to make a detail calculation on the electrical power needed and the solar panel kits also supportive equipments needed to fulfill such demand. It is easy to do, but brings a huge impact on the life of the people or the house occupants. The electrical power calculation and hence the

between closed doors and pulling the bill out. If it comes off easily, it indicates the need to fix it. 7. Ren ewable En erg y P h otov olt aic ener gy is available free of cost and abundantly. So install solar water heaters / solar lamps/ solar cookers/ solar chargers and batteries and see a drastic cut in your expenses. It’s just a onetime investment as the semi-conductors come with lifelong guarantee! Special materials can be used in flooring in cold areas, which absorb sun’s heat. This way they can be heated when the sun shines and would release warmth during the night. Similarly if you are stay in a windy city, then try to tap the potential of wind energy. 8 . T e mp e r at u re r e g u l ati o n Set the temperatures of your refrigerator around 0-5°C and reduce the thermostat settings of geyser to around 60°C. 9. Fans Prefer using fans over ACs as even fans reduce the perceived temperature by around 4°C (depends on humidity levels). Try to put AC in ‘auto’ mode and use fan instead as AC-fan consumes more power. 10. Energy audit Locate an ‘Energy consultant’ and get an energy audit done for your home. They help to set a target and point out deficiencies in energy management in a very objective way exclusively designed for your home.

calculation of solar panel according to the load will be discuss in detail, after. The viability and features related to Solar system are greater in numbers to other alternate energy sources. The flexibility, less technicalities and availability of solar components and of course the price will attract the user to install and make use of Solar Systems. Continued.....

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Alternative Energy Sector - Update

Solar Roadways to build solar-powered parking lot It looks like roads that use solar power to melt snow are one step closer to becoming a reality–at least for a little stretch of Idaho.Solar Roadways received a $750,000 grant from the Federal Highway Administration to build a parking lot paved with solar panels. Last year the green infrastructure comp any d emoed a 12X12-foot prototype of its solar road as phase 1 of this new technology. The prototype was made up of solar panels, heating elements, and a grid of wireless LED lights encased in durable glass that has the same traction as asphalt and doesn’t cause glare. The panels generate a total of 7.6 kilowatt hours of electricity per day that can be used to melt snow and

ice, spell warnings for motorists, or be connected to weight sensitive panels that illuminate a crosswalk when activated. The solar road can also be connected to a smart grid to power nearby homes and businesses, or even electric cars. With the concept vetted, the company

wants to see how its technology will work on a larger scale. With the money from the FHA, it will construct phase 2 of the solar road project in the parking lot outside of its electronics lab in Sandpoint, Idaho, according to an article in The Spokesman-Review. By building in Solar Roadways’ own backyard, it will be able to monitor the technology 24 hours a day in a controlled environment and under several load scenarios. If phase 2 is successful, company founder and CEO Scott Brusaw envisions the technology being used in sidewalks, driveways, and parking lots. The last stop on the technology road map would be solar highways.....

Planet Solar

The World’s Largest Solar Powered Boat Docks in Hong Kong

The world’s largest solar-powered boat – has been making waves in every corner of the globe, and the ship just made the latest stop on its world tour as it docked in the port of Hong Kong. The Swissdesigned , German-built ship is powered by over 5,380 square feet of solar paneling, and it hopes to inspire the fuel-guzzling shipping industry by p r o m ot i n g r en ew ab l e en er g y . The deck of the catamaran TÛRANOR is lined with over 5,380 square feet of solar paneling that extends over each side of the ship. Measuring around 101 feet long and 49 feet wide, PlanetSolar

can comfortably transport 50 passengers to their desired ports of call. Since departing from Monaco on September 27, 2010, the ship has been circling the globe, from Miami to the Panama Canal, to the Philippines and now Hong Kong. The solar sucking ship cost around $26 million. This may seem hefty, but its reliance on solar poweralone saves the vessel exponentially. The solar panels on PlanetSolar power two electric motors, which can reach 15 miles per hour. Combined with other renewable sources (wind) it could move even faster. The panels can also soak up enough

stored energy to power the boat in cloudy weather for three whole days. The excess energy is stored in a giant lithium-ion battery. PlanetSolar is keenly aware that the shipping industry alone is responsible for 4.5% of the world’s greenhouse gas emissions, according to the United Nations. Its world tour hopes to enlighten people around the world of the actual capabilities of solar power, that a renewable energy-run commercial vessel is not only entirely possible, but extremely capable.....

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Health and Energy - Update

Health & Safety Energy Saving Bulbs Energy Saving Bulbs have been in existence for a long time now. As the name indicates, these bulbs are more effective as compared to an ordinary bulb in terms of power consumption. Most of us are currently using these bulbs in order to save on electricity comsumption and ultimately the electricity bill ! Energy Saving Bulbs will come in different shapes on the market with different ratings in terms of Voltage or Watts and they will definitely save our pockets especially that, we are buying electricity in our respective houses.

Some Health and Safety issues on thes Low Energy Light Bulbs

- If one breaks, everybody will have to leave the room for at least 15 minutes, because it contains Mercury (pisonous) which causes migraine, disorientation, imbalances and different other

health problems, when inhaled. - It causes many people with allergies,severe skin conditions and other diseases just by touching this substance or inhaling it. - Do NOT clean the debris of the broken bulb with a vacuum cleaner, because it would spread the contamination to other rooms in the house when using the vacuum cleaner again. It must be cleaned up with a normal broom or brush, be kept in a sealed bag and disposed of right away from the house in a bin for hazardous material. Below is the advise on what to do if a Low - energy light bulb breaks be it at home or areas where these bulbs can be found:

1. Evacuate the room, taking care not to step on the shards of glass littering the floor. 2. Do not use a vacuum cleaner

to clean up the mess as the machines sucking action could spread toxic mercury droplets around the house. 3. PUt on Rubber gloves and sweep the debris onto the dustpan. 4. Place the remains in a plastic bag and seal it. 5. Do not put the plastic in a normal houshold bin. 6. Instead, place it in a muncipal recycling bin for batteries which also contain murcury or take ti to a council dump where it can be dispose of safey. 7. Try not to inhale dust from the broken bulb. Photo from a person who stepped onto a broken blub and his foot infected with mercury poisoning.

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Alternative Energy - Article

Exclusive By Asif Masood

Biofuel Trend In Pakistan Renewable energy in general and biofuels in particular, have begun to look like an increasingly viable mitigation option. For developed countries, biofuels offer prospects for meeting their emission reduction commitments under the Kyoto Protocol.

Executive Summary

Pakistan like many other countries in the world) has been burdened by a steeply increasing cost of petroleum.Cost s of petrol, gas and diesel are rising like fire. It is becoming unbearable not only for the citizens but also for the country. Fortunately, we have got the solutions. Developing countries, should try to d evel op a nd p rom ot e b iof uel s production. Although, we are blessed with ample resources, Pakistan is not fullyutilizing these resources to produce biofuels though it should be considered because it will definitely have a longterm positive affect on not only our economy but also the environment. Sugar cane is a major cash crop of Pakistan and we’ve a huge sugars production industry. We all know that sugarcane and corn are very important for the production o f ethanol. As 80-85% of sugarcane is manufactured into sugar and a small amount into the brown one, not much remains for the production of ethanol because the importance of this as a biofuel is not being fully recognized in our country. The production level of ethanol was 2.89 million tonnes in 1991-1992 while in

year 2003-2004, the production level reached 4 million tonnes. Despite the rise in production, Pakis tan remains uncompetitive in the global biofuels market because a huge portion of it is exported to the w estern wor ld . Our annual import cost for oil runs into bil lions of dollars . If we substitute gasoline with bio ethanol we can surely save a huge sum of money. This will result in a boos t in our down ward economy and will reduce the interest and loans. It’s good news, however, that some people are actually exploring the avenues of biofuels in Pakistan as we have the resources. According to a report, Pakis tan can save as much as $500 million in gasoline import s if it starts ethanol production on a bigger scale. As discussed above, biofuels are green,becom ing more and more competitive and can be a “hot ” business in the coming years . If Pakistan takes up the challenge it has the potential to become Pakistan’s prime exportcommodity. A very focused approached placed the Denmark as the leading manufacturer of windmills and India as an IT-hub. The Pakistan Sugar Mills Association (PSMA) said that the introduction of ethanol production will reduce the country's fuel bill by $500 million (€326 million) and improve the country's balance of trade. The focus on molasses production and export would result in less export earnings than the offset effect of reducing oil importation costs through production of sugar cane ethanol. Pakistan oil marketing companies have ca lled for Paki stan to exp lor e alternatives to ethanol. Oil short ages are most acute in the diesel market . Pakis tan, which is facing up to $11 billion in oil imports, had formed the country' s ethanol task force to investigate the production of 65,000 tonnes of biofuels required to fulfill a 5% ethanol mandate. Bio fuel ( Ethanol ) Prospects in Pakistan

through a Sustainable Devel op ment Prism. The current findings replace speculation with scientific certainty. Mr. Asif Masood In fact; the reality has overtaken modelled forecasts. Planet Earth is heating up faster than predicted, with extreme events spiralling out of control. Glacier retreat, polar ice meltdowns, rises in sea levels, tropic al cyclones, storms and hurricanes have triggered natural and human calamities on an unprecedented scale. There is a corresponding urgency to address both the causes of climate change (mitigation) and its effects (adaptation). Renewable energy in general and biofuels in particular, have begun to look like an increasingly viable mitigation option. For developed countries, biofuels offer prospects for meeting their emission reduction commitments under the Kyoto Protocol. For developing countries, biofuels present a means to both reduc e energy import bills as well as earn precious foreign exchange. However, reconfigu ring the fuel economy to renewable sources is not without risks. Global environmental benefits can also generate adverse local environmental impacts . Similarly, multinational corporations giving price incentives to farmers, to switch from growing food crops to biofuel crops, can threaten food security. The rapid uptake of biofuels reflects the ease with which they can replace or be blended with fossil fuels, such as petrol and diesel. The technology is simple, cost effective and environmentally friendly. The blended fuels pro vide higher octane content, improving vehicle efficiency while reducing carbon emissions. Developing countries also enjoy a cost advantage; they experience year around growing seasons, can access cheap farm labor , and use crop by-

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Alternative Energy - Article

About 80 -85 per cent of the total sugarcane production goes towards the production of sugar. The remaining 15-20 percent is converted into “GUR” a local variant of sugar, which is largely produced and consumed in the North West Frontier Province (NWFP). products to fertilize fields and fire up distilleries. For instance, Brazil is able to sell ethanol at the equivalent of US$ 25 a barrel, compared to US $50 and US $ 70 for th e US and Europe, respectively. Not surprisingly, many countries have adopted biofuels as a way to reduce their oil bills and to earn foreign exchange. Thailand is building over a dozen ethanol plants using sugar cane and rice husks as fuel sources . China has constructed the world's largest fuel ethanol facility at Jilin. Beijing is reportedly planning to import Brazilian ethanol as well. Japan has already gone that route; it signed its first 15 millionlitre deal with Brazil in May 2006 preparatory to replacing up to 3 percent of Japan's gasoline. Yet this emerging global market in biofuels i s not clear of the political thicket. Developed-country farm lobbies lend momentum to biofuels market development, but they also demand protect ion is t barriers . "Everyone pretends [their enthusiasm] is for the environment, but it' s all a bou t agricultural subsidies," biofuels expert Christian De lahouliere warns. To encourage biofuels, the EU pays farmers 45 euros for each hectare of "energy crops" they grow. That provides them a p ow erfu l incenti ve to pr odu ce, effectively barring cheap foreign bioethanol from entering their market. When Pakistan gained special access to EU markets in 2002 and began shipping bioethanol, local farm lobbies persuaded Brussels to change course and reestablish tariffs. The United States also imposes a 50-cent-a-gallon import duty on Brazilian ethanol. In addition, almost ever y country has it s own bio fuel standard, with different specifications that may be manipulated to hinder market access. We have evaluated the biofuel prospects in Pakistan in a sustainable development context. The specific biofuel is ethanol extracted from molasses, a by-product of sugar. The potential for producing biofuels from corn, rice husks and wood waste exists but has not been tapped yet. We also examine the external and

simple process by using molecular sieve technology, which requires a capital expenditure of about USD 1 .5 million and can be completed in 5 to 6 months. As many as 8 distilleries have installed the sieve technology to process industrial ethanol into fuel ethanol.

Export Trends

internal policy constraints which have prevented domestic ethanol production from taking off.

Production Trends in Pakistan

The sugar industry in Pakistan is the second larges t after textiles. Currently, 76 sugar mills produce at or below capacity. From a production level of 2.89 million tons in 1991-92, production reached 4 million tons in 2003-04. Yet the production potential is not realized because sugarcane yields remains well below the global average. Also, despite sugar prices doubling since 1992, Pakistan continues to remain globally uncompetitive. The emerging markets in industrial alcohol and fuel ethanol offer prospects of making sugarcane p roduc tion economic ally viab le. About 80 -85 per cent of the total sugarcane production goes towards the production of sugar. The remaining 1520 percent is converted into “GUR” a local variant of sugar, which is largely produced and consumed in the North West Frontier Province (NWFP). Cane crushing produces sugar and molasses as a by-product . The molasses-to-bio et h an ol con ver si on p r oc ess is conducted in distilleries. Currently, 21 distilleries produce industrial alcohol in the country. The majority of the distilleries are a part of the sugar mills and are situated onsite, making the production cycle an integrated one. The mills receive the cane, crush for sugar, store the molasses in storage tanks on-site, and then pass it on to the distilleries for industrial alcohol production. Industrial alcohol can be converted into fuel alcohol in a

Until recently, the bulk of the raw molasses was exported, with exports ranging between 0.70 million to 1.75 million tonnes. Only minor quantities were converted to industrial alcohol for domestic use and export. However, over the pas t five years , a substantial pro p ort ion of th ese molasses w as converted into alcohol. Fuel-grade ethanol, which is blended in petroleum products, fetches the highest price in the world market. Distilleries in Pakistan have three major buyers. Domestic industry purchases industrial alcohol for various purposes. Fuel ethanol is currently only being sold domestically in small quantities to Pakistan State Oil (PSO) as part of a pilot project that blends ethanol with gasoline in a 10 percent ratio. The third and predominant outlet is exports. The bulk of the industrial and fuel ethanol p r od u ced is e xp or ted th r ou gh international trade houses. The fuels are brought from distilleries throughout the country to the Karachi port for onward shipping to different parts of the world. Indu strial alcohol expor ts have increased rapidly over the past five years, reaching 167,600 tons in fiscal year 2006. The average export pr ice for different grades of alcohol ranged from USD 560 to USD 680 per ton. Total earning s amounted to USD 100.6 million in 2006. The value-addition in molasses through its conversion into alcohol has enabled exporters to earn eight to ten times more foreign exchange. The bulk of exports went to Japan and the EU, with Italy being the single largest recipient within EU. However, exports to the EU as a whole declined in the wake of Pakistan’s removal from the GSP (General System of Preferences) scheme....

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Alternative Energy Sector

Exclusive Article

Solving Pakistan’s energy crisis

India is encouraging individuals to develop 12-acre solar farms to sell energy to state. Almost entire textile sector of India has shifted to renewable energy. Islamabad needs to legislate to shift industry to renewable energy to free gas, end energy theft, meet international emission standards and competitiveness. Although, Prime Minister Syed Yusuf Raza Gilani has said that it is difficult to overcome country’s energy crisis in immediate term but there is still hope. Instead of spending billions on energy sector, Islamabad needs to make a clear and transparent policies on renewable so that public and private sectors can make necessary investments. Pakistan can wind energy on lines of China to generate 20,000 MW. China has planned to generate 30,000MW (or 30GW) with wind by 2020. Gansu province alone is going to add 7Gw to its existing 10GW installed capacity by 2015. Wind energy project costs have dropped to below 4,000 Yuan ($625) a kilowatt, making wind power generation a profitable business in Gansu (Gansu…, China Daily 9 August). China is going to harness 750Gw of offshore wind energy (China plans …, China Daily, August 17), and Beijing has authorized provinces to install grid ready renewable energy p rojects. In G -20, 48 % investment in clean energy has gone in wind energy and it has added 40 GW of generating capacity, which is enough to pow er 30 million homes. Pakistan can use its costal lines and farmlands to harness wind to power its agrisector, industry, cities including Karachi and Gwadar. Solar sector is the fastest-growing cleanenergy industry in the world. Prices of solar panels have declined by more than 60% in the last 30 months. By

30Gw offshore capacity (Offshore w in d… Ch ina Da il y J u ne 22 ). Technology including dual meter is being adopted in Europe and US that allow individual homes to send surplus energy generated from renewable energy to main grid online of US Energy Marshall Plan of 40s and are paid for it.

the end of this year, solar modules are expected to cost half as much as they did four years ago. In 2010 alone, 17 GW of solar-generation capacity was added in the world which could power more than 12.5 million homes. China produced 48 percent, or 13 gW, of the world’s solar panels in 2010 and two years time it will be world’s largest market. The solar feed-in tariff, the price of solar-generated electricity, could drop below 0.8 Yuan (12.5 cents) for each kilowatt-hour (kWh) by 2015, equal to conventional coal-fired electricity by that time. China plans to increase capacity to 50Gw by 2020 including

Pakistan can cut the cost of solar panels by using silicon in local deserts. China is importing 50% of its 80,000 ton polysilicon annually which is pushing prices up (Nation to double solar capacity, China Daily 13 August). The advancement in solar technology in form of tiny glitter sized photovoltaic and transparent, spary-on and thin film solar panels turning windows, cars and most surfaces into solar energy producers. These developments offers unlimited fu tu re u se of solar energ y ( w ww . gi zmag . co m) . I n d ia is encouraging individuals to develop 12acre solar farms to sell energy to state. Almost entire textile sector of India has shifted to renewable energy. Islamabad needs to legislate to shift indu stry to renewable energy to free gas, end energy theft, meet international emission standards and competitiveness. Pakistan, online of U K, Germany , B an g la d es h c a n encourage banking sector to finance individual homes to shift to renewable. It will save trillions being lost to

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Alternative Energy Sector

Pakistan can use its costal lines and farmlands to harness wind to power its agri-sector, industry, cities including Karachi and Gwadar. Solar sector is the fastest-growing clean-energy industry in the world. Prices of solar panels have declined by more than 60% in the last 30 months.

corruption, line loses, administrative c ost and m aint enanc e. Pu nja b government needs to spearhead the drive to adopt renewable energy as the most populous province and support agri-sector. Renewable energy can be used to reduce Pakistan’s $10bn annual fuel imports, which is increasing with every passing year. By adopting mass transport, Pakistan can cut diesel fuel imports which reportedly constitutes 80% of total national fuel import. On lines of China and UK, Pakistan must return to railway to cut diesel imports by 80%, freight and travelling charges by six times and save trillions being spent on road infrastructures especially mega cities. It can help Islamabad earn billions of rupees annually from railways on lines of India (Rs 50bn), UK (£6.5bn) come from fares (Rail fares…,The Guardian August 16). Islamabad needs to make railway country’s strategic mode of communication and introduce rail service all major cities. E-vehicles and bicycles are becoming i mp or tant pa rt of na tiona l communication policies in Europe, US and China. Ecotricity UK is going to install green-energy-powered electric vehicle (EV) charging points at selected motorway service stations to speed up the adoption of EVs in Britain. China has installed 460 solar powered charging stations for EVs (cars, motorcycles and bicycles). Beijing is headed bring one million electric powered cars by the end of 2011. Philippines has introduced 20,000 electric rickshaws. Reportedly, bicycle use has increased 29 % in UK. Cycling adds £3bn to UK’s economy (Cycling worth £3bn… The Guardian 21 August). A similar policy in Pakistan

can generate £ 9bn. In US, New York alone has added 300 km to its existing cycling lanes. Cycling is part of regular policing is China, UK and USA. China is return to cycling to cut fuel imports ease traffic congestion, reduce pollution and cut health risks. China’s first eco-city will start working in 2012. It is based on three basic principles of zero carbon footprints, uses r enewa ble ener gy a nd recy cles resources, and has efficient land use and supports sustainable development. The city will feature zero-energy buildings, use zero emission transport, renewable energy sources like wind turbines, solar panels, biogas created from sewage. Beijing expects to use the eco-city concept to overcome water shortages in 660 cities of China. It will help Beijing city to save $24-35bn annually by overcoming sever water shortages and an alternate to urban future instead of adopting failed western cities, which are unsustainable models of consumption. China will speed up building renovations to make more structures energy-efficient and permanently replace incandescent light bulbs with LEDs by 2018. UK has adopted carbon neutral house models based on combination of wind, solar and oth er r enew abl e and rai nw at er harvesting techniques to cut cost and save water. Every Zulfiqarabad in Pakistan can be use these developments to meet future demands, avoid loss of precious arable land in city suburbs and reclaim wastelands.

Renewable energy can help Pakistan fight poverty, generate millions of jobs, end privatization of national silver and bring more than $100bn annually in direct foreign investments (FDIs). In 2010, $230 bn were invested in renewable energy in worldwide. Due friendly policies, private sector has invested $191bn in renewable energy.

Germany alone has created 350,000 jobs in this sector since 2004 with help of investment, training, research and innovation. Italy has achieved grid parity in solar energy in small-scale sector due to abundant sunshine. China topped with $54bn private investment in renewable energy in 2010 to meet its 170Gw target by 2020. India is ranked 10th in the world with its target of 20GW solar energy by 2020. Cycling can help Pakistan generate lacs of jobs in line with Germany and 23,000 cycling jobs in UK (Cycling worth £3bn… The Guardian 21 August). Renewable energy can save our future generations from being turned into yellow cab drivers or stay unemployed. Our leaders need to use renewable energy to educate and employ (our) youth, attract $billions in FDIs and revive and sustain economy. Even the bloodshed in Karachi can be ended by employing youth in renewable energy sector and revive local industry with it. Nations are using renewable energy, transport policies and eco-cities to overcome poverty, create millions of jobs, expand industries, attract direct foreign investment and strengthen economies. In conclusion, Islamabad can solve its energy crisis and join modern world provided our leaders are w illing to adop t effective laws, transparent policies, get rid of corrupt practices, and adopt renewable energy. Curtsey: Pak Observer

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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle

Sr./ No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23.

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

Retail Price Rs. 42,500/= Rs. 41,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 40,000/= Rs. 49,000/= Rs. 39,000/= Rs. 45,000/= Rs. 41,000/= Rs. 41,000/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 65,500/= Rs. 42,000/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 44,800/= Rs. 40,000/=

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

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

Retail Price Rs. 42,500/= Rs. 47,000/= Rs. 43,000/= Rs. 41,000/= Rs. 41,000/= Rs. 42,500/= Rs. 41,500/= Rs. 40,000/= Rs. 39,000/= Rs. 39,900/= Rs. 41,500/= Rs. 42,400/= Rs. 39,500/= Rs. 40,500/= Rs. 40,500/= Rs. 45,000/= Rs. 41,000/= Rs. 40,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 42,000/=

Price updated July-2011

ww w.a uto m ark.pk | S eptem b er-2011 | Pag e 50

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MADE IN PAKISTAN MOTORCYCLES PRICE LIST

125cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.

Brand & Model Name Habib HB-125 Sitara ST-125 Super Star SS-125 Hero RF-125 Honda CG-125 STD Honda CG-125 DX Metro MR-125 Ravi Storm-125 Euro II

Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 54,000/= Rs. 75,000/= Rs. 89,500/= Rs. 111,000/= Rs. 77,000/= Rs. 78,000/=

Yamaha Motorcycle Product & Sr./ Model Name No. 1. Yamaha YD100 2. Yamana Yama4 3. Yamaha YB100 Royale

Retail Price Rs. 75,900/= Rs. 72,000/= Rs. 72,900/=

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

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

Retail Price Rs. 55,500/= Rs. 55,000/= Rs. 73,900/= Rs. 55,000/= Rs. 55,000/= Rs. 55,000/= Rs. 60,000/=

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

Product & Model Name Suzuki Sprinter ECO Suzuki Sprinter STD. Suzuki GS-125 Suzuki GS-150 Suzuki Shogan

Retail Price Rs. 67,500/= Rs. 71,000/= Rs. 82,900/= Rs. 88,500/= Rs. 79,500/=

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