Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only. MONTHLY
Editorial
The Magazine for Pakistan A utomotive Sector
August 2010 Vol 3, Issue 8 Editor : M. Hanif Memon
63rd Independence Day?
Sub Editor : Dr. Raja Irfan Sabir Contribution Writers : Mohammad Owais Khan Samiullah Khan Shahzad Tabish Hunain Zafar Engr. M.K. Mateen
Advisor : J. Pereira Abdul Majeed Sheikh Circulation Manager : Abdul Khaliq Designed By : Mustafa Hanif
Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: www.pak-auto.com E-mail: active@pak-auto.com, automarkpk@gmail.com Tel/Fax : 021-2218526 Mobile: 0321-2203815
Killing of MPA Syed Raz aH aider of the MuttahidaQaumi Movement in Karac hi last week halted the production in majority of the industrial areasand all markets; shopping centers remained completely closed for about three days. About 80-90 per cent workers could not reach to their industrial units as public tran sport remained completely off the roads while many people having their own transport also did not take the risk. Even workers living in the vicinity of industrial estates stayed at home in view of lingering violence in the city. Even the shops located inside the residential areas were also closed. The supply chain from the industrial areas to wholesale markets and to retail markets from main wholesale bazaars were paralyzed till the evening. According to Chamber of Commerce and other associations “The city has suffered Rs38 billion in these days in view of production losses, suspension in sales and exports, demurrage at ports on imported goods, loss of perishable goods, daily wage earners, non-salary disbursement, transportation of goods, non plying of public tr ansport, sale losses to shop owners an d government revenues. While other side country we have worst flood in Pakistan's history, are a snapshot of our failures. More than 1,400 people are estimated to have died in the disaster and, according to official sources, at least 2.5million have been badly affected. The state response is weak and inadequate because our governance has deteriorated to the point of a crisis. The structure is weak and the motiva tion of the personnel is limited . The country is in crisis and people are suffering ac ross the co unt ry, in which fac e we are celebra ting our 63rd independence day?
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
CONTENTS The Monthly Magazine for Pakistan Automoti ve Sector
Your trust is our success IMC, PAMA launch hectic and costly media campaign Exclusive Article on Automotive sector
9-10
Crop damage, loss of rural economy due to flood may hit bike sales in 2010-2011 Exclusive Article in Motorcycle sector
11 -12
Hinopak Motors Limited - Export of Buses Corporate Event
13
BMW 5 Series Sedan arrives in Pakistan
15
An Exclusive interview with Mr. Nam Young-Koo CEO - Daewoo Pak Motors (Pvt) Ltd.
16
How to add value during quality audit Exclusive Article by Engr. M.K. Mateen
21
Why Carburetor Is Replaced By Efi by Hunain Zafar from NED University
22
Auto-makers oppose relaxing conditions for new entrants 28 Used car prices
33
Shell Eco Marathon Asia-2010 Exclusive Report by Automark
38-39-40
Platinum Dealers Meeting 2010 Ravi Automobile (Pvt) Limited. Corporate Event in Dubai
41-42
“Ayrton Senna” The Legend Exclusive article by Shahzad Tabish
44
Local assembled car price list
45
Shell Eco Marathon - Glimpses of Participants
46-47
Motorcycle price list
50-51
visit: www.automark.pk
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
by: Samiullah Khan
Exclusive Article
IMC, PAMA launch hectic and costly media campaign over looming fear of used car imports, benefits of local industry One thing is surprising that in these costly media campaigns most of the advertisements had come from the Indus Motor Company (IMC), makers of Toyota Corolla, while Pakistan Automotive Manufacturers Association (PAMA), the only body of all the assemblers, has given only two advertisements. As the budget 2010-2011 has passed peacefully for the local car makers but they still fear about any awkward government’s move regarding tariff cut on import of new cars, increase in age limit of used cars from three to five years imported under personal baggage, transfer of residence and gift scheme or allowing commercial import of used cars up to three years by amending the import policy. However, the above measures were proposed by the Ministry of Industries to the government after ascertaining that the car markers continued to raise prices on account of import of spare parts besides enjoying tariff concessions and not utilizing their full capacity on the pretext of less demand. Even the issues of premiums being charged on spot buying at authorized showrooms were still lingering on. These proposals were put in the ECC meetings for approval but were deferred but the car industry still smells a rat. The fear of industry can be gauged from the fact that a huge media campaign has been launched for the last one month in print media and is still going on about the negative repercussions in case the rules are relaxed for used cars import under various schemes. The industry has sought government’s support urging them to discourage the import of used cars. One thing is surprising that in these costly media campaigns most of the advertisements had come from the Indus Motor Company (IMC), makers of Toyota Corolla, while Pakis tan Automotive Manufacturers Association (PAMA ), the onl y body of all the as se mbler s, h as gi ven on ly two advertisements.
It seems that IMC is highly alarmed especially on localization of parts as it happens to be the main company besides some other car makers for adopting dillydallying attitude in localization of ten high tech parts in the last three years. So far the government has not issued any statement over the rate of import duty on eight certain hi-tech imported parts. The new budget 2010-2011 has also remained silent on this issue but car makers believe that these parts may continue to arrive at 32.5 per cent import duty.
AUTOMARK | August-2010 09
The government is of firm opinion that localized parts and components cost about 40 per cent less as compared to imported parts and it can play a vital role in reduction in car prices. Despite that the government has not taken any decision besides any action against the assemblers for failing to localize parts. These parts are Alternator; Starter motor; Water pump; Fuel Pump; Fuel Fi lter, Air Clean er Assembly; Seat Recliner; and Power Steering, Engine and Transmission. Auto Industry Development Plan (AIDP) was launched in December 2007 with volu mes in r espect of Car/Lig ht Commercial Vehicles (LCVs) projected. The AIDP projection for 2006-2007 was 248,000 units followed by 276,000 in 2007-2008, 349,000 in 2008-2009 and 503, 000 in 2009-2010 but ac tual production in 2006-2007 was achieved at 198,000 followed by 187,644 in 20072008, 101, 000 in 2008-2009 and 125,000 in 2009-2010. Based on above projected volumes it was prescribed that by the years 201011 the auto manufacturers were required to localize certain parts as mentioned otherwise it would attract 50 percent custom duty as compared to current 32.5 per cent. The industry has informed the Industry Ministry that localization of hi-tech parts is not poss ible and because of no capac ity wi th the vendors and no t ech n olog y w it h t h e d ome s tic manufacturers they have asked the ministry to give up AIDP. The car industry think s that loc al production of these assemblies requires hi gh capital cost and es sentially technology collaborations. Hence, high volumes / consumption are necessary
continued on next page
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Exclusive article on Automotive sector
Car makers are also resisting the government’s price control exercise on locally produced cars calling it anti-free market economy measures while resisting the free market economy measures of intentions of government to allow import of used cars. to consider for localization. Moreover, additional custom duty will increase the cost of vehicles which in turn decrease volumes and reduce collection to the Exchequer. Vendors had already strongly urged the government to issue direction to the car makers for increasing localization of parts as has been done in tractors, rickshaws and two wheelers. They said that car assemblers are offering the local vendors 30-40 per cent of total landed cost if these are imported, in this way the local vending industry is saving 6070 per cent cost of the cars. Vendors believe that the government has given every possible help to the car makers for part localization besides providing tariff protection to local assemblers from Japan besides keeping policies of importing used cars under various schemes under a limited option. Thailand having less number of cars being locally produced against Pakistan has more locali zed base of parts. Pa kista n imports parts for local assembly for Thailand which includes fuel fil ter , al tern ators , s tart ers, components of engine and steering parts and others. After coming into force of trade related investment measures agreement of WTO in 2000 Pakistan had sought extension for continuing the protective regime of automobil es. Commerce Ministry under pressure from strong car makers continued to seek extensions up to 2006. With no chance of further extension, the government provided cars makers Tariff Based System (TBS) for five years from 2007 to 2012 to barter
the continuation of localization of parts. Up till now only low tech parts had been localized and the share in the price of local parts is less than 50 per cent. Under TBS engine parts were to be localized from 2008 and onwards. The local car industry had managed deferring of localization of hi-tech parts during 2009-2010 and gave undertaking to take the localization of all parts deferred during 2010-2011. Car makers are als o resi sting the government’s price control exercise on locally produced cars calling it anti-free market econo my meas ures w hile resisting the free market econ omy measures of intentions of government to allow import of used cars. Another vendor says that local parts purchase is based on 30 per cent of value of imported parts which gives rise to transfer of pricing. He says he sells his parts at 35 per cent of the landed value of the similar imported parts. Only technical audit can reveal these findings. Indus Motor Company, a joint venture of Toyota Motor Corporation, Toyota Tsusho Corporation and House of Habib plans to expand and roll out the Phase II of press shop in 2010-2011 for making additional body parts as part of its long term strategy. The board of directors of Indus Motor Company (IMC) has approved Rs 1.6 bill ion investment plan involving purchase of latest technology including stamping press machines and other equipment to add to the existing presses and ancillary equipment which the company acquired in 2008. IMC said that this investment will
further enhance transfer of technology, create more employment opportunities and fost er localizat ion of pa rts. IMC has termed the budget 2010-2011 as balanced which will help maintain macroeconomic environment for future expansion and growth of auto industry. On high quality parts made in Pakistan IMC said it is modernizing Pakistan’s auto motive industry by transfer of technology through technical assistance agreements and joint ventures with Toyota Motor Corporation. IMC is increasing Pakistan’s Technical capital by investing Rs 3.3 billion in the last three years. IMC is supporting the local industry through more than 62 auto parts manufacture (Tier I) units in a d di ti on t o 20 0 ot h e r p a rt s manufacturers (Tier 2) units supplying to Tier 1 units in Pakistan. IMC is gene rating employmen t for ov er 1 50 ,0 00 pe ople t hr oug h p ar ts manufactures of local auto industry. On used car imports and trading PAMA terms it as a short term benefits followed by very little employment, no technology transfer, susceptible to malpractices, limited after sales, no warranties, high maintenance and spares cost, flight of capital, little government’s revenues, dependent on foreign source, no import substitution and no investment. These all support foreign auto industry. The local car industry has long term benefits with over 150,000 employed in the industry, technology transfer to O EMs , v en d ors , d ea ler s, fu lly documented transactions, full after sales and warranties, low maintenance and spares cost, foreign exchange saving,
AUTOMARK | August-2010 10
continued on next no.39
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
by Mohammad Owais Khan
Exclusive article on Motorcycle sector
Crop damage, loss of rural economy due to flood may hit bike sales in 2010-2011 Mohammad Sabir Shaikh said keeping in view of low sales output in the wake of flood situation, the government should re-start $50 per bike R&D facility per bike to the assemblers. The bike makers anticipate a possible decline in bike sales in the next few months over reports of serious damage an d devas tation to various crops including cotton in Punjab and Sindh in the flash floods. They are alarmed over damage of rural economy as “the share of rural buying in total bike sales in the country is 60 per cent.” They fear losing the most potential buyers of the two-wheelers from crop producing areas who usually make bike purchases ahead of sowing season and pay back the bike cost after harvesting. Floods are reported to have destroyed various cotton belts in Punjab and it is h eading tow ards Sind h. Kh yber PakhtoonKhaw had also faced massive destruction due to floods. Fl oods have displaced millions of growers, farmers and villagers in these three provinces besides causing huge casu alt ies of over 1,600 people. Bike makers say that market is abuzz with report that cotton belts in Punjab are reported to have been damaged by 40-60 per cent ahead of its maturation season while similar fate is awaiting for cotton crop in Sindh. A leading Japanese bike maker, who asked not to be named, said that reports of some crops’ devastation and loss of precious human lives will seriously affect the bike sales in coming mon ths. He said water has entered in many authorized dealers’ shops in small towns an d vill ag es of the ru ral a reas . The 60 per cent bike sales from the rural areas comprise on crop income while salaried class and other business people in urban areas hold the 30-40 per cent share in total bike sales. The assembler said 60-65 per cent country’s population lives in rural areas
which is enough to justify the sales of bikes. He said keeping in view of 25-30 per cent urban population living in many cities there will not be any big negative pressure on the motorcycle sales in coming months. The Japanese bike maker said his office members had gone to the flood affected areas and other parts of the country to ascertain damage over the dealership network and to make efforts to revive it. According to a report of flood affected districts, low floods had been seen in Sukkur, Khairpur, Sargodha, Jhelum, Layyah and Bhakkar. Areas like Chitral, Mansehra, LoraLai, Sibbi, Kashmore, Jaffarabad, Naseerabad and Dera Bugti. Area which have witnessed high floods are Swat, Shangla, Malkand, Charsadda, Peshawar, Mianwalli, Kalabagh, Dera Ismail Khan, Muzaffargarh, Dera Ghazi
AUTOMARK | August-201 0 11
Khan, Barkhan, Kohlu, Rajanpur, Rahim Yar Khan, Ghotki and Shikarpur. The Japanese bike maker said that it is up to the government how it takes effective preventive measures to revive the rural economy and save crops from further devastation. The government sh ould al so ponder in providin g compensation to the crop losers in order to encourage them for next year’s sowing season. However, he said that water quantity may prove beneficial for rice and sugarcane crops but water level should re mai n in th e li mit as per t he requirement but crossing of water limit ma y a ls o hi t th ese ca sh crops . Vice Chairman Association of Pakistan Motorcycle Assemblers (APMA), a group of Chinese bike makers, Mohammad Sabir Shaikh said rural buying holds a maj or share in overall bike sa les especially cotton production as growers make heavy purchase after a good crop every year. Growers of other crops like rice, gram, wheat, some pulses, sugar cane etc are also two wheeler buyers. Because of big share of rural buying thanks to good crop of wheat, rice, cotton etc last year, the overall bike sales swelled to 1.3 million units in 20092010 as compared to 850,000 units in 2008-2009. He said the first three months of the current financial year may prove very painful for the bike sales as a clear picture will emerge over the losses to crop and producing areas caused by hea vy floods in three provinces . Sabi r was also perturbed over the deteriorating law and order situation especially in Karachi, Hyderabad and other areas of Sindh. The closure of main markets from 2nd Aug to 5th Aug resulted in suspension in production in
continued on next page
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Exclusive article on Motorcycle sector
Hyderabad and at factories situated at the outskirts of Karachi. He said sales had remained suspended for four days. He said that recent rains in the country had also caused sharp decline in sales. In case the lawlessness prevails in Karachi it would hit the sales of Chinese bike makers especially who enjoy a big market share in t he urban areas especially Karachi as compared to share of Japanese bike makers. He urged the government to take serious steps in providing protection to the people of Karachi besides saving the business environment of the port city which provides sizable revenue to the national kitty besides highest number of employment. He said the price increase in the last one year had not affected the sales of bikes as a big demand of two wheelers had arrived from rural areas from growers after a good crop of wheat, cotton, rice, gram pulse etc. He said assemblers had passed on the impact of one per cent increase in GST to 17 from 16 per cent in the new budget to the consumers while Chinese bike makers had also followed the suit by pushing up the rate by Rs 500 to Rs 1,000 per unit. Sabir Shaikh sa id th at despite a satisfactory performan ce given by Chinese bike makers in the last few years, the low cost bike makers have been facing various problems from the hurdles being created by the Engineering Development Board (EDB). He said that the EDB had again issued lett ers to reg ard in g p rovisi ona l assembling/manufacturing certificate and submission of input records with reconciliation of account for the year 2009-2010. M e a n w h i le , t h e E n g in e e r i n g Development Board (EDB) has informed
the bike makers that it is in the process of updating the lists and its uploading on PRAL’s On Line Quota Debiting System for the year 2010-2011. In this regard, the EDB has already sent a letter of even number dated July 1, 2010 wherein it was also requested to provide the list of components that are required to be added/deleted on which may require any change in part numbers etc: verified during 2009-2010 and uploaded on the system. Accordingly, the list may be submitted as under 1) Highlight the part (s) of the verified lists of year 2009-2010 as per its serial number require to be deleted from the list or require change in part number etc. For this write it as “to be deleted” or “part number changed” etc under REMARKS column. 2) The parts which require to be added in the lists, if any, may be depicted after the last serial number of the list already verified and issued during 2009-2010, While adding the part, write the word part to be added, give reasons for addition of parts along wi th previous year’s procurement so urces in the REMARKS column. Assemblers are also directed to fill Column 8 of the enclosed proforma of li st by providing the name of subassembly in which the relevant part is fitted. For example, in case of bearing of crankshaft bearings are fitted in the crankshaft assembly, therefore the relevant sub-assembly/assembly for bearing as a part shall be “crankshaft.” EDB has requested the assemblers to provide the lists with changes required
by highlighting the same along with the remarks as explained above. Mohammad Sabir Shaikh said keeping in view of low sales output in the wake of flood situation, the government should re-start $50 per bike Research and Development (R&D) facility per bike to the assemblers. This facility had come to an end from July 1, 2010. By getting the R&D facility, bike makers wo uld be a ble to s hift the loca l production towards exports of two wheelers in the neighbouring countries and other parts of the world. He s aid ma ny bike mak ers after reviewing the crop damage and rural areas may have to slowdown their production keeping in view of slow sales output in coming months. As the bike makers were getting the facili ty of $50 per bike, they were ex porting 4,0 00-5, 000 bike s to Afghanistan, Bangladesh, Sri Lanka and Kenya per month. The manufacturers were already facing a stiff competition from the Indian and Chinese bike makers and the $50 per bike subsidy had been providing an edge of price over th e rival exporters. The withdrawal of $50 per bike would give an opportunity to China and India to capture markets of Afghanistan, Bangladesh and Sri Lanka in a big way as the locally made bikes would become uncompetitive. Sabir expects at least 50 per cent decline in bike exports in the current fiscal year. Pakistan Automotive Manufacturers Association (PAMA) had already asked the government in its pre-budget proposals to continue the R&D facility for bike exporters and after Ministry of Commerce’s decision the Association would again request the government for its continuation. Export of bikes was initiated in 2008……
Sabir Shaikh said that despite a satisfactory performance given by Chinese bike makers in the last few years, the low cost bike makers have been facing various problems from the hurdles being created by the Engineering Development Board (EDB). He said that the EDB had again issued letters to regarding provisional assembling/manufacturing certificate and submission of input records with reconciliation of account for the year 2009-2010. AUTOMARK | August-20 10 12
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Corporate Events update
TADAP Chief appreciates the role of Hinopak Motors Limited by Export of Buses
Recently Hinopak organized the export ceremony of the first batch of 25 units of Hino AK8J Buses to UAE. First batch of 25 units of Hino AK8J will be shipped in the present month to deliver to the Emirates Transport, UAE primarily aimed at the staff and school transport segments. Mr. Muhammad Irfan Shaikh, Director Sales & Marketing, Hinopak welcomed all the distinguished guests. In his address, he said that by successfully meeting international standards in export quality, Hinopak in collaboration with its principal s is continuously striving to tap other prospective markets such as Saudi Arabia, Qatar, Oman, Kuwait, Egypt, Bahrain, UAE, Jordan as well as many inquiries are in pipeline from Panama, Mozambique, Cost Rica and Sub Sahara countries. He men tioned that Hin opak ha s invested huge amount of money to renovate its body operation plant by
keeping in view the expected orders of export from different parts of the world. Mr. Ak htar Ali Jadoon, Provincial Transport Minister for Sind was the Gues t of H on or. He showed hi s gratefulness to Hinopak for achieving this milestone for exporting Hino Buses to UAE. In his address he said that Sindh Government is planning to operate 100 diesel buses in Karachi City soon under the Benazir transport Program. On this occasion he also announced to donate 2 units of Coffin Carrier to one of the Social Welfare organization. He further added that soon 400 CNG bus project will also start. Syed Mohibullah Shah, Chief Executive, Trade Development Auth ority of Pakistan graced the ceremony as chief guest. He appreciated Hinopak efforts and highlighted that for the past several years the economy of Pakistan has been undergoing a slump, marred by both international and domestic fac tors
Syed Mohibullah Shah, Chief Executive, Trade Development Authority of Pakistan, Mr. Akhtar Ali Jadoon, Provincial Transport Minister Sindh, Mr. Hideya Iijima, Managing Director & CEO, Hinopak, Mr. T. Ito, DMD and Mr. M. Irfan Shaikh, Director Sales & Marketing , Hinopak Motors are seen inaugurating the Export Ceremony.
directly affecting the trade sector very badly. He further added that this export segment will not only bring honor and fame but will definitely strengthen the image of Pakistan around the world and help the country in narrowing down the trade imbalance. Mr. Hideya Iijima, Managing Director & CEO, Hinopak said that these buses are especially designed considering the geographic, climatic and economical conditions of the destined country. He also informed that one of the key features of Hinopak buses is the option of massive customization in all aspects of the bus body from layouts, seating arrangements to various color schemes. An exclusive presentation regarding Export project also made by Mr. Ahmed Rauf, DGM International and Defense Sales. The Export Ceremony was attended by various dignitaries including heads of government and financial sectors etc.....
Mr. Hideya Iijima, Managing Director & CEO, Hinopak presenting shield to Syed Mohibullah Shah, Chief Executive, TDAP on the occasion. Seen also in the picture are Mr. T. Ito, DMD and Mr. M. Irfan Shaikh, Director Sales & Marketing, Hinopak
AUTOMARK | August-2010 13
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - update
Local tractor makers FBR advocating Rs two billion refund The sources said, as there is no doubt that the government's policy was to exempt agricultural tractors and their components from sales tax; therefore, FBR has proposed that legal situation may be rectified by issuing a new notification restoring the arrangement under Notification No SRO 839(I)/98 dated 23rd July 1998, with effect from the date of its rescinding, ie, 6th June, 2005. Federal Board of Revenue (FBR) is said to be advocating refund of Rs 2 billion to local tractor manufacturers despite strong resi stan ce by the Fi nanc e Ministry, well informed sources told news media. In 1998, under the Prime Minister's package for the reduction of tractor prices, import and local supply of agricultural trac tors an d their components was exempted from sales tax. The local manufacturers of tractors obtained tractor components from a large number of local vendors, who would have been burdened with the cost of exemption under the sales tax law, therefore, the said exemption was gr ant ed by wa y of re fund, vide Notification No SRO 839(1)11998 dated 23rd July, 1998. Thus the two recognised tractor manufactures, namely, M/s Millat Tractors Limited and M/s AlGhazi Tractors Limited, paid sales tax to the vendors and then claimed refund thereof, from the sales tax department. The sources said this system remained in place till budget 2005, when an effort was made to bring the system in line with VAT principles, under which refund is based on zero-rated supplies and not on exempt supplies. Accordingly, local supply of tractors and their components was zero rated, vide Notification No SRO 531 (1)/2005 dated 6th June, 2005 and the Notification No SRO 839(1)/1998 dated 23rd July, 1998 was rescinded, vide Notification No SRO 526(1)/2005 dated 6th June, 2005. This in principle would have enabled local vendors to mak e zero rated supplies to tractor manufacturers and then claim refund of their input tax,
from the sales tax department. The zerorating measure, however, was agitated against by tractor manufacturers as well as the vendors, on the ground that there are a large number of vendors operating in the market and it would be difficult and cumbersome for them to obtain the refunds in time, hence their limited capital resources would get tied down. Accepting their demand, the (then) Central Board of Revenue (CBR), as an interim measure, held operation of the new system, in abeyance, through administrative inst ructions which satisfied tractor manufacturers and the vend ors , h enc e th e arra ngemen t continued indefinitely and a subsequent measu re to fac il it ate th e trac tor manufacturers, regarding removal of conditionality of 'agreed price', was also in corp ora t ed in t h e r es cin de d Notification No SRO 839(1)/1998 dated 23rd July, 1998, as if it were still in the field. This, however, created a legal situation whereby the refund claims of tractor manufacturers could be blocked AUTOMARK | August-2010 14
because the notification governing their refunds was legally extinct. This ultimately has resulted in blockage of refunds, of the two recognised local manufacturers, worth more than Rs 2 billion, over the last few months. In order to resolve the matter, the Federal Board of Revenue sought advice from the Law and Justice Division on the issue. The Law and Justice Division, vide U.O. note dated 13th April, 2010 advised, that if the government wishes to give refunds to the tax payers, then notifications conferring benefits can be issued so as to operate retrospectively, under authority of the Supreme Court's Jud g em en t, 1 992 S CMR 1 652 . The sources said, as there is no doubt that the government's policy was to exempt agricultural tractors and their components from sales tax; therefore, FBR has proposed that legal situation may be rectified by issuing a new notification restoring the arrangement under Notification No SRO 839(I)/98 dated 23rd July 1998, with effect from the date of its rescinding, ie, 6th June, 2005. FBR has also recommended tha t removal of the 'agreed price' concept may be appropriately incorporated in the no tification but to safe guard government revenue, a clause may be incorporated in the notification, that the refunds in question will be allowed only if the incidence of tax has not been passed on to the consumers. There is a possibility that the zero rating measure put in place vide notification no. SRO 531(1)12005 dated 6th June, 2005, may also be removed, through another notification‌
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive sector - New arrival
Dewan Motors announces plans to launch the New BMW 5 Series in Pakistan The ideal blend of sportiness and elegance A Bespoke Suit for every occasion The world’s most successful premium a u to mo t iv e ma n u f a ct u re r h a s announced that the New BMW 5 Series will arrive in Pakistan at the end of July 2010. The launch of the sixth generation model marks the epitome of aesthetic design and supreme driving pleasure in the midran ge premium segmen t. With its sporting and elegant design, excellent comfort an d the highest standard in efficiency in its class, BMW’s lat est ex ecut ive sed an s ets t he benc hmark in drivin g d ynamics. Commenting on the imminent launch, Atif Jan, Marketi ng Head, Dewan Motors Private Limited, the exclusive importer of BMW in Pakistan, said “The 5 Series is a core product and one of BMW's best selling models globally and in Pakistan as well, so we are looking forward to launching this new model in late July. It is a totally different car from
its predecessor in terms of design, comfort, technology and engineering. Th e ca r come s w ith ne w h igh performance engines and a host of new driver assistant features such as Parking Assistant that measures parking gaps and steers the 5 Series while the driver continues to operate the brake and accelerator pedals.” "This is only one of a host of innovative features available in the New BMW 5 Series. The new model is imaginative, creative and effective. BMW designers and engineers have worked hand-inhand to ensure the perfect interplay of design and technology. It's the perfect combination of sportiness, elegance and charisma. All this has been combined in complete harmony," added Mr. Jan. The new BMW 5 Series sedan will be available in both petrol and diesel e n g in es o f fe r in g o u t s t a n d in g
performance. The model is a class leader in emissions reduction. It has been designed around BMW's successful Efficien t Dynamics st rateg y tha t en com pa s se s m an y t ech n olog y in no vation s t o offer outs tan din g performance and a reduction in fuel consumption. The interior of the new BMW 5 Series has a stylish and modern design with exciting lines that create a generous and harmonious ambience. High quality materials and superior craftsmanship und erlin e th e premium in terior ambience. The new BMW 5 Series Sedan will clearly stand out from the crowd, convincingly demonstrating its ability to offer Sheer Driving Pleasure typical of the BMW brand....
BMW 5 Series Sedan arrives in Pakistan The man ufac tu res of BM W cars launched the new 5 series Sedan at their display centre, visited by people with interest in such prestigious cars. The manufactures of the new model say it is the epitome of design and supreme driving pleasure in the upper midrange s egment wi th its elegant desig n, excellent comfort and highest standard of efficiency in its class.
The sixth generation of this immensely successful executive sedan is expected t o con t in ue th e su cces s -st or y. They said the new series has the longest wheel-base in the segment, long and sleek engine compartment and graceful roofline. Some of the wide ranging sophisticated driving and comfort features offered in the new BMW 5 Series include Dynamic AUTOMARK | August-2010 15
Drive Control wit h three modes: comfort, normal and sport, Head Up Display, Multi-Channel Audio System, Rear Seal Entertainment, and FourZone Automatic Air Con dition ing. The new BM W 5 Series design is imaginative, creative and effective, with BMW's designers and engineers working hand-in-hand to ensure the perfect combination of design and technology.
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - Interview
An Exclusive interview with Mr. Nam Young-Koo CEO Daewoo Pak Motors (Pvt.) Ltd Daewoo Pak Motors had now started producing a wide range of Daewoo Class business including luxury buses for inter-city and CNG buses for urban operation under a joint venture arrangement with Afzal Motors for domestic and export market in Pakistan. The auto industry which has gone through difficult times for almost three years of depression is now well poised to regain its past glory with the positive sign of demand growth during current financial year 2010. its is heartening to see that as key positive indictor for broader macro recovery, the light commercial vehicles (LCVs) have also started to regain momentum with 130 percent YoY growth strong responsibility of exporting passenger buses to Saudi Arabia and Emirates has injected to color of life especially light commercial vehicle segments of auto industry. The emerging trend of export is sure to provide a strong support to the overall economic growth as well as broadening the engineering bases in the country, which is th e key for sus tai nable economic growth for any developing economy. Daewoo Buses carrying international Korean brand with the label of made in Pakista n are al ready en joying a respectable place in the transportation sector from Karachi to Kashmir on the back of their quality, durability, and comforts. Nam, Young-Koo , the chief executive of Daewoo Pak Motors said in an exclusive interview that Daewoo Pak Motors had now started producing a wide range of Daewoo Class business including luxury buses for inter-city and CNG buses for urban operation under a joint venture arrangement with Afzal Motors for domestic and export market in Pakistan. Mr. Y.K Nam, CEO of Daewoo Pak Motors underlined the differentiating features of Daewoo Products Especially BH11 6, The first & onl y local ly
man uf ac t ure d Rea r En gi n e Ai r Suspension Bus with 340 HP, BH115, Rear Engine with 310 HP, BF120 Front Engine with 240 HP and BH115 CNG, the onl y Internationally cert ified dedicated CNG Rear Engine Bus in Pakistan with 240 HP. Nam said that at present production capacity of Daewoo Pak is 1500 buses for a wide range of customers. Mass production of Daewoo Buses has now started after injecting new capital investment besides introducing new techno logy in shape of machinery, equipment s a nd s kill of hu man resources.
AUTOMARK | August-2010 16
When asked weather Daewoo Motors is operating neighboring India being larger consumer market, Nam come out with an encouraging answer that before going for investment Daewoo Surveyed the region and dedicated chose Pakistan as destination for investment prior to arrival in Pakistan we heard a lot about securit y risks a nd law and order situation in Pakistan however the situation on the ground was quite different from what it being perceived. In fact, Pakistan is an attractive place for doing business; Nam said and added that he would ask his fellow investors in Korea for investment in Pakistan. Due to its strategic location the export of Korean buses carries and edge for saving freight charges from Korea. He said that Daewoo Buses being produced in Pakistan are equipped with EURO II Diesel & CNG Engine....
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Exclusive Article by Engr. Mian Khurram Mateen Assistant Director, TSC-PSQCA
How to add value during quality audit In order to “add value”, a third-party audit should be useful to the certified organization We hear so much about the importance of “adding va lue” during qua li ty management systems (QMS) audits, but what does this really mean? Is it possible to add value without compromising the integrity of the audit or providing consultancy? In principle, all audits should add value, but this is not always the case. There are several dictionary definitions of “value”, but all focus on the concept of something being useful. “Adding val ue” therefore mean s to mak e something more useful. Some organizations have used ISO 9000 series of standards to develop quality management systems that are integrated into the way they do business, and are useful in helping them to achieve their strategic business objectives – in other w ord s t h ey ad d va lue for th e org an iza tion. C onve rs ely , oth er organizations may have simply created a bureaucratic set of procedures and records that do not reflect the reality of the way the organization actually works, and simply add costs, without being useful. In other words, they do not “add value”. In order to “add value”, a third-party audit should be useful to the certified organization 1) By providing information to top m a n a g e m e n t r e g a r d in g t h e organization’s ability to meet strategic objectives. 2) By identifying problems which, if resolved, will enhance the organization’s performance, 3) By iden tify ing imp rove men t opportunities and possible areas of risk, 4) To the organization’s customers by enhancing the organization’s ability to provide conforming product, 5) To the cert ifica tion body, by improving the credibility of the third party certification process. The approach to “adding value” is likely to be a function of the level of maturity
of the organization’s quality culture and the maturity of its QMS, with respect to th e r equirem ent s of ISO 9001 . Some tips for the auditor on how to add value 1 ) Un d e r s t a n d t h e a u d it e e ’ s ex pe ct a tion s/cor pora t e cultu re . 2) Any specific concerns to be addressed (out put fr om pr evious a udit s) ? 3) Risk analysis of industry sector / specific to organization.
AUTOMARK | August-2010 21
4) Pre-evaluation of statutory/regulatory requirements. 5) Appropriate audit team selection to a c h i e ve a u d i t objectives. 6) Adequate time Engr M.K. Mateen allocation Focus more on the process, and less on procedures. 7) Focus more on results and less on records. 8) R e me m be r t h e 8 Q ua l it y Management Principles. 9) Use the “Plan -D o-Check-A ct” approach to evaluate the organization’s process effectiveness. 10) Has the process been planned? 11) Is it being carried out according to plan? 12) Are the planned results bein g achieved? 13) Are opportunities for improvement being identified and implemented? 14) Adopt a “holistic” approach to evidence gathering throughout the audit, instead of focusing on individual clauses of ISO 9001. 15) Put the findings into perspective (Risk assessment / “common sense”). Relate findings to the effect on the organ iz ation’ s abili ty to provide conforming product. 16) Sensible reporting of audit findings. 17) Ensure that any cultural aspects are taken into consideration. 18) Emphasi ze positive findings as appropriate. 19) Reports should be objective and focused on the right “audience”. (Top man ag ement w il l probab ly ha ve expectations that are different from t ho s e o f th e ma n ag em en t representative). • R e f e r e n c e : I S O & I AF ISO9001AuditingPracticesGroup ...
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Article
By: Hunain Zafar
WHY CARBURETOR IS REPLACED BY EFI you need to vary the air/fuel ratio for economical cruising (leaner) or richen it for maximum power at wide-open throttle, this system won't do anything for you. Henc e, change of pla ns.
How EFI Works:
What would fuel injection be without a computer controlling all its functions? Less powerful? Sure. Less efficient? Certainly. A heck of a lot more popular? We think so. We'd venture to say that most gear heads, ourselves included, are naturally wary of trusting a mysterious "black box" to control fuel and spark inside a several thousand worth of engine. Carburetors and distributors at least look the part. You can't blip the throttle and check the pump shot in EFI. There are no jets or metering rods to play with. Heck, most ECU’s aren't even mounted in the engine compartment. However, the functionality says it all.
How Carburetor Works: A carburetor takes advantage of the venturi effect to meter a certain fixed ratio of fuel and air into the engine. A sharp "step" in eac h throttle bore accelerates the incoming air stream, increasing its velocity and creating a region of lower pressure under the fuel booster. The si ze of the main jets controls the amount of fuel that's drawn out of the discharge nozzles. Then it's drawn into the cylinders, compressed, and fired. Now we've got the most bare-bones of carburetors that mix a certain amount of fuel for a certain amount of air we allow to pass through the Venturi, giving us a constant air/fuel ratio. If we change the main jets, the mixture will become richer or leaner--but it'll stay richer or leaner across the entire rpm range. If
A modern multi port EFI system works differently than a carburetor. No venturi here--fuel isn’t introduced into the engine until the injectors spray it into the base of the intake runners, so the only thing that’s mechanically metered is the air that’s sucked through the throttle body. Since the mixture of air and fuel can’t tumble around inside the intake runners, the injectors spray a fine mist of fuel at high pressure, which "forces" it to mix almost instantly with the metered air. Changing the air/fuel ratio is simply accomplished by varying the amount of time that the injectors are spraying fuel (usually measured in pulse-width, the number of milliseconds each injector is turned on).
Main Metering Circuit: A carburetor’s main metering circuit operates solely on the venturi principle, which by it would fit our needs perfectly if a car ran only at a constant load and rpm, such as up a slight hill in First gear. But in the real world, engine load changes, and selecting the proper main jet size is only the first step in creating a well-tuned street machine. Carburetors keep the engine properly fueled over a range of conditions by sensing vacuum (engine load) and kicking in additional fuel via its enrichment circuits. Modern EFI systems use "maps"--a table of numbers corresponding to certain parameters (i.e., rpm) saved in the onboard computer to tell the injectors h ow much fuel is needed at any conceivable operating point. The base fuel map tells the injectors how much fuel to spray at a certain rpm for a given engine load. This isn’t a direct analogy to a carburetor’s main metering circuit because it recognizes that an engine under heavy load needs more fuel (enrichment) than a lightly loaded engine, so it’s already a little smarter than our "bare-bones" carburetor. Most EFI systems enable you to type in AUTOMARK | August-2010 22
the air/fuel required across the usable rpm and load range of the engine. More sophisticated EFI systems use feedback from a wide-band oxygen sens or (WBO 2), ins tal led a t th e header collector, to monitor and display the actual air/fuel ratio. The actual versus mapped air/fuel ratio is displayed as a percent correction. If a standard narrowban d ox ygen sen so r is us ed, the computer can only display air/fuel ratios in a narrow range, so tuning is slightly more difficult. Either way, the benefit of any O2 feedback signal (closed loop) is a huge advantage in tuning and performance.
Choke: As you might have guessed, there’s no choke butterfly attached to a multi-port EFI throttle body--it’s all done with electronics. Tweaking the "Cranking Fuel" graph changes ho w long the injectors stay open, and consequently, ho w much fuel the engin e is fed.
Conclusion: The bottom line is that EFI systems and carburetors all need to do the same things to make an engine run, and once you get past the fear of that little black box, it’s apparent that EFI provides a level of versatility and ease of tuning that even the best carburetors can’t touch....
By: Hunain Zafar Secretary Publications ASME, NED University Student Section
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive sector - update
What Toyota Sees in Tesla So Toyota wants to get Tesla’s battery and electric drive technology, hook it up in to a couple of Rav4 SUVs and put it through some rigorous testing. The sports car buffs who drive Tesla roadsters may give the car a thrashing on the highway, but not many people drive a $109,000 two-seater in bad weather or every day This is just more politics. Didn't Tesla recieve 400,000,000 from the Feds
Posted by: David Welch on July 15, 2010 Here’s a matchup I thought I’d never see: Toyota and Tesla Motors. Toyota is a conservative money maker that likes to develop technology in-house. It has quite a nice hybrid program that the company developed while maki ng billions selling cars and trucks. The Japanese giant shuns controversy. Yet the company is teaming up with tiny Tesla, a company that has lost $246 million on $148 million in revenue since 2007. Tesla Chairman and CEO Elon Musk is very un -Toy ota , fin din g controversy like a moth to a light bulb. In the past, he has been in litigation with a former Tesla CEO, a past design firm he hired and has a rather public divorce going on. So what does Toyota see in Tesla? Toyota’s brain trust thinks that maybe, just maybe, Tes la mig ht be onto something. Tesla’s lithium ion battery pack strings together 6,831 cylindrical cells that are typically used for laptops. Major carmakers like General Motors and Nissan use prismatic cells, which are usually flat, resembling a thick notebook. They are larger than Tesla’s cells, therefore the battery pack doesn’t need as many of them. There are fewer con nectors and less chanc e of a breakdown, says Jim Hall, principal of consulting firm 2953 Analytics. Tesla’s advantage is that there is an entire computer industry out there using those small cells, so the capital costs are lower. If Tesla’s battery is durable in the long run, it could be an option for carmakers. So Toyota wants to get Tesla’s battery and electric drive technology, hook it up in to a couple of Rav4 SUVs and put it through some rigorous testing. The sports car buffs who drive Tesl a roadsters may give the car a thrashing on the highway, but not many people
Gman
drive a $109,000 two-seater in bad weather or every day. Toyota wants to test the battery pack out and see how durable it is and how simple it would be to produce, Chairman Akio Toyoda told reporters in a round table session last week. “Tesla’s battery should fail, but it doesn’t,” Hall says. “Toyota wants to understand why it hasn’t failed.” Despite its troubles, Toyota has $43.3 billion in cas h . Cons ider its $50 m ill ion investment in Tesla as a venture capital investment. Many of those don’t pan out.
Reader Comments Aviva Sucher July 15, 2010 6:31 PM Toyota's decision to pair up with Tesla is a brilliant move. Tesla's Elon Musk is brilliant in his seeking a technological approach to alternative battery powered vehicles. Initial tests by Tesla owners and race car drivers have drawn rave reviews. Mr. Toyoda and the Toyota board members recognize pure incomparable innovative brilliance. I excitedly await an affordable Tesla, hopefully just in time for us to pass along our current Prius
Eob July 16, 2010 6:52 PM Toyota already had an electric Rav-4 years ago...What do they need Tesla for? AUTOMARK | August-2010 23
July 17, 2010 12:34 AM Tesla must have done something right about Roadstar 300 miles on a full ch ar g e. 2 1s t cen t ur y cal ls f or collaboration between new and old economy. It is a perfect marriage. After a year of bad publicity for Toyota, Tesla alliance is a rumbling Toyota needs. After all, if it is difficult to shake things up the old way, may be Silicon Valley attitude is what is needed to give a kick in the buttock to get 300 mpc (charge) from the battery.
Sciotopiker July 17, 2010 7:24 AM Trus t me frien d, Toyot a kno w s everything they need to know about Tesla. They have undeniabl e proof of the stupidity of American consumers and investors. Toyota's "interest" in Tesla is the driver behind Tesla stock prices and when they pull it.....pffffft.....no more Tesla. Toyota then becomes the green gi ant again and all kneel in their presence. Problem solved.
Ed July 20, 2010 1:36 AM Tesla is exactly the type of companies America needs to lead us out of the recession. American ingenuity at its best.
Interconnect July 20, 2010 6:46 AM Ak io Toyoda San Toyota critic see positive development when you co-habit Telsa's battery electric drive technology. We see lot of Toyota in commonly unToyota belief. Billions are invested today in many emerging market turning millions of Toyota Corolla cars for poor folks running on conventional Euro 1 or 2 technology investing their liftime s av in gs on Toyot a' s pr om is e. .. .
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Energy Sector - update
PSO records Rs9.05bn after tax earnings in FY10 The board of directors of PSO recommended a final cash dividend for the financial year ended June 30, 2010 at Rs 5.00 per share, equivalent to 50 percent. This is in addition to already paid interim dividend at Rs 3.00 per share ie 30 percent. Pakistan State Oil (PSO), the country's largest oil marketing company has delivered strong results for the financial year 2010 (FY10) by achieving after tax earnings of Rs. 9.05 billion as compared to a loss after tax of Rs. 6.7 billion during the financial year 2009. The company registered an earning per share of Rs 52.76 in the period under review against per share loss of Rs 39.05 in the corresponding period in FY09. The announcement followed a Board of Management (BoM) review of the company's performance in a meeting held on Friday at PSO House. The Board meeting was chaired by Nazim F Haji. Th e boa rd of direct or s of PSO recommended a final cash dividend for the financial year ended June 30, 2010 at Rs 5.00 per share, equivalent to 50 percent. This is in addition to already paid interim dividend at Rs 3.00 per share ie 30 percent. While briefing journalists about the compan y's fin ancial r esults, the Managing Di rector of PSO, Irfan Qureshi said the compan y's s ales revenue touched Rs. 877 billion during FY10, as compared to Rs. 719 billion in the corresponding period last year. He said despite financial challenges and economic slowdown, PSO maintained its leadership in the White and Black Oil market segments with market shares of 55.3 percent and 88 .2 percent, respectively. Overall, the market share for PSO stood at 71 percent during FY10. In light of the performance of the company, the BoM declared a final dividend of Rs. 5 per share. Combined with the earlier interim dividend of Rs. 3 per share, the total dividend for the year stood at Rs. 8 per share translating into a total payout of Rs. 1.37 billion to the shareholders. He said PSO sold 14.2 million tons of POL products in this period as compared to 13.2 million tons during the preceding
year. In Black Oil, PSO enhanced its m a rk et s h a r e appreciably from 85 .8 percent in FY09 t o 88 . 2 percent in FY10. P SO v olu m es g r ew by 1 7. 8 p erc ent in Furnace-Oil (FO) w her eas th e industry volumes enhanced by 14.6 p e r ce n t . T h e surge was mainly due to increase in demand in power generation sector. PSO despite the mounting circular debt responsibly met the demands of the power sector of th e country. The company registered positive volumetric growth of 20.9 perc ent in Mogas. H ow ever, in HSD, t he compa ny experienced a negative volumetri c growth of 9.7 percent due to economic slowdown and circular debt. He said the circular debt crisis continued to remain a serious problem as power sector customers continually defaulted on payments during the period under review. As on June 30, 2010, PSO's receivables stood at an alarming figure of Rs. 117.5 billion. Consequently, PSO had to rely on heavy bank borrowings resultin g in incurring of financi al charges of Rs. 9.9 billion in FY10 as compared to Rs. 6.2 billion in FY09. As of today, the receivables pertaining to circular debt stand at Rs. 130 billion, he added. He pointed out that as the largest public sector organisation in the energy sector, PSO is cognizant of its corporate responsibility and is actively involved in social activities and CSR initiatives that have a long term positive impact on the society. Over the years, the company ha s stepp ed up to the AUTOMARK | August-2010 24
challenges faced by the social sector and has proactively contributed in times of need. In the recent Attabad lake crisis, PSO provided free medical supplies to landslide victims helping them cope with the physical and psychological trauma of the calamity. Replicating a similar spirit of citizenship, PSO has also dona ted a da y's salary of all its employees to the PM Flood Relief Fund 2010. The Board, with its newly appointed chairman, Nazim F Haji, expressed confidence in the company's future and in the leadership of Managing Director Irfan Qureshi. Given the company's strengths and the support of the Ministry of Petroleum and Natural Resources, the company will continue to overcome all the challenges imposed by the market dynamics and maintain its leadership position within the energy s ector. The PSO m anag ement vowed to continue making al l-out efforts in collaboration with the government for recoveries from the power sector to ensure availability of products in the country and to reduce the impact of financi al cost on the company‌..
Oil & Gas - Update
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
PSO increases spending on oil imports by 32pc In July 2009, the cabinet committee on energy directed PSO to import and supply 35,000 metric tons per day fuel to power sector. Due to limitation of FOTCO port, PSO had to pay over one million dollars demurrage on import of petroleum products during 2009-10. The cash-strapped Pakistan State Oil (PS O) in cr ea se d s pe nd in g o n oil imports by over 32 p e r ce n t t o R s 5 37 . 3 7 2 b ill io n during financial year 2009-10 against Rs 363.087 billion in 2008-09 due to low throughput by oil refineries. PSO spent Rs 231.134 billion on import of HSD, Rs 212.532 billion on HSFO, Rs 20.854 billion on JP-1, Rs 50.945 billion on LSFO and Rs 21.906 billion on PMG imports during 2009-10. PSO imported 0.28 million metric tons (MT) Mogas, 0.37 million MT JET A-1 and 3.87 million MT HSD. In July 2009, the cabinet committee on energy directed PSO to import and supply 35,000 metric tons per day fuel to power sector. Due to limitation of FOTCO port, PSO had to pay over one million dollars demurrage on import of petroleum products during 2009-10. Industry sources said that the current
energy crisis also owed much to the country's lower refining capacity. The fuel consumption has surged due to greater reliance on thermal power generation. PSO imported 5.54 million MT HSFO and 1.16 million LSFO in 2009-10 against 4.10 million MT and 0.99 million MT respectively in 200809. During financial year 2009-10, total oil consumption was 9.1 million MT whereas refinery production stood at 2.6 million MT. In 2008-09, total oil consumption was 7.94 mill ion MT and total refinery output was recorded at 3.1 million MT. The country had to rely on 4.84 million MT imports of petroleum products. In year 2007-08, total consumption of petroleum products was 7.45 million MT and total refinery production stood at 3.31 5 mill ion MT. The imports contributed 4.14 million MT to meet the country's requirements. PSO official said that despite circular debt issue, PSO was arranging deficit petroleum products by imports. "Due to lower refinery output,
PSO had to import petroleum products to meet the country requirements," official maintained. "Refineries earned huge profits during the year 2007-08 due to high prices in international market coupled with excellent refinery margins but even at that time refineries production was low," official said attributing low refinery throughput especially in 2009-10 to negative 'refinery margin' rather than the circular debt issue. "Due to low refineries production capacity, imports were approved with consent of refineries in monthly Product review meeting Chaired by Director General (Oil)," he added. He claimed that refineries had reduced fuel supply to PSO because of its inability to pay dues due to circular debt issue. "PSO is also paying exorbitant financial charges to banks due to heavy borrowing to supply fuel to power sector," the official added…
Nazim F Haji made PSO BoM chairman Prime Minister Syed Yousuf Raza Gilani on Friday appointed Nazim F Haji as new Chairman of Board of Management (BoM) of Pakistan State Oil, according to local print media. Haji has been appointed chairman BoM at a time when PSO is on the verge of financial collapse due to circular debt with Rs 140 billion receivables as of Thursday. "New chairman BoM PSO has a big challenge regarding the financial issues of the company," sources added. Haji was appointed as Member BoM, PSO on March 6, 2010. "The position of chairman had been vacant since the
resignation of Sardar Yasin Malik in October 2009," sources maintained. Nazim F Haji graduated in 1969 from Sheffield University (UK) in Mechanical En gi neer in g. H e was elected a s Chairman, SITE Association of Industry in 1988. Thereafter, along with a group of li ke-minded bus ines smen a nd professionals, he set up Citizens-Police Liaison Committee (CPLC) under the patronage of the then governor Sindh, former Justice Fakhruddin G Ebrahim in 1989 and headed it as its chief till 1996. He was awarded Sitar-e-Shujaat in 1993. He has served on the board of AUTOMARK | August-2010 25
KDA (defunct), and Export Processi ng Zones Au tho rity . Presently, he is a m e mb e r o f t h e governing Board of Infaq Foundation, Workers Employers Bilateral Council of Pakistan (WEBCOP), CPLC Advisory Board, Oversight Committee for Prisons (Sindh), Sindh Board of Investment and Sindh Public Procurement Regulatory Authority (SPPRA)…..
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
City Transportation - Update
CDGK may scrap plan to buy more CNG buses While talking to media, T&CD Executive District Officer Iftikhar Qaimkhani said the CDGK T&CD has not yet dropped the scheme of procuring the new CNG buses but due to lack of the required cash flow, the scheme could not be completed during the last fiscal year. The City District Government Karachi (CDGK) Transport and Communication Department (T&CD) might scrap the procurement process of further CNG buses due to paucity of adequate funds. The total cost of adding 21 CNG buses to the existing fleet of 75 was estimated at Rs 63 million while the CDGK had twice invited tenders for the buses and had als o received bids from t he interested investors. Earlier, the CDGK had cancelled the lowest bid on reasons that the successful bidder could not furnish certificates of a strong financial posi tion and the technical ability to run the bus fleet. Thus, the tenders were invited again and the bids were received for the final settlement. However, the bids received were disc ar ded and t he onwa rd procedures were sent to the files for
go od on the pretext of lack of funds. C i t y Administrator F a z l u r R e h m a n recen tly vowed that the CDGK would n o t c l o se do wn a ny development projects in the city because of p a u c it y of funds. The T&CD for th e f is cal y ear 201 0-1 1 ha s 26 development schemes for which Rs 616.500 million have been allocated. It
CDGK restores CNG Bus Service
The City District Government Karachi (CDGK) has restored its CNG Bus Service after repairing the out-of-order buses. With the restoration of this service, the fleet of 50 environmentfriendly buses started to ply on the two routes from Surjani to Tower and Surjani to Korangi. The CDGK had, by utilising its own resources, initiated this service with an initial fleet of 50 dedicated CNG buses to provide better transport facilities to the citizens of Karachi. The new bus service was welcomed by the people of the city as it offered long distance travelling at a very low fare of Rs15 per passenger.
Owing to the financial constraints faced by the city government, these CNG buses could not be maintained on time which resulted in the out-of-order condition of at least 35 buses. Karachi Administrator Fazlur Rehman had initiated the repair of these buses on public demand. He had issued the directive for release of Rs7.2 million for repair and change of tyres of the CNG buses. The city government has decided to continue t his bus service for the convenience of the citizens. However, under a new strategy, the bus operator will be responsible for the timely repair of these buses.... AUTOMARK | August-2010 26
is pertin ent to mention that t he department has 114 traffic signals to look after and Rs 26 million have been allocated just for the maintenance and repair of these 114 traffic signals . While talking to media, T&CD Executive District Officer Iftikhar Qaimkhani said the CDGK T&CD has not yet dropped the scheme of procuring the new CNG buses but due to lack of the required cash flow, the scheme could not be completed during the last fiscal year. He added the scheme has been included in the 2010- 11 budget with certain possibilities including that either the provincial government would provide the required sum of money or private investors might come forward, whom the CDGK would fully support or even the CDGK might earn enough revenue to fulfill the task itself. “We have to wait until December to see if the CDGK gets the required revenue or else the project would further linger on until the required revenue is in hand,” commented Qaimkhani…
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
CNG sector - update
Power ministry hatching conspiracy against CNG sector Addressing a press conference, Chairman All Pakistan CNG Association Ghyas Paracha strongly criticised Minister for Water and Power Raja Pervez Ashraf for hatching a conspiracy against the CNG sector and other gas consumers. Despite the opposition of Petroleum Ministry, senior officials of the Ministry of Water and Power are making all out efforts to move a summary to Economic Coordination Committee (ECC) of the Cabinet seeking approval for allocating the entire gas from Pasaki/Kunar field to power sector. Press media has learnt reliably. Addr ess ing a pre ss conf eren ce, Chairman All Pakistan CNG Association Ghyas Parac ha strongly critici sed Minister for Water and Power Raja Pervez Ashraf for hatching a conspiracy against the CNG sector and other gas consumers. Ministry of Water and Power considers that Pasaki/Kunar gas field has the potential of adding 1,550 MW on a fast track basis to the power sector at an affordable cost/tariff. The recent energy summit approved that al l new gas productions sha ll be exclusively made available to the power sector. After the resolution of legal issues, the Pasaki/Kunar field shall be allocated for power generation, Paracha alleged. Ac cordin g t o so urces Minis try of Petroleum (MoP) strongly opposed Water and Power Ministry's proposal to allocate the entire gas available at Pasaki/Kunar gas fields for power generation and warned not to reopen the settled issue which may cause an uproar among the gas cons umers. ECC of the cabinet has already allocated
250mmcfd gas from Pasaki/Kunar field to SSGCL that will share 50 percent gas w i t h S N G PL t h r o u g h s w a p arrangements. "Reopening of the settled issue is not supported," Petroleum Ministry said and urged the Ministry of Wat er and Pow er t o upg rade it s inefficient power plants to generate more power with existing gas allocation. MoP has warned that SNGPL which is unable to fulfill its commitments under Gas Sales Agreements (GSAs) with Independent Power Producers (IPPs) due to gas shortage will be forced to pay heavy penalties in the form of alternate fuel cost. At present, SSGCL and SNGPL are facing a shortfall of more than one billion
cubic feet gas per day (bcfd) which is projected to reach 1.8 bcfd in 2014-15 despite addition of Pasaki/Kunar, other s m a ll f ie ld s a n d a n t i cip a t e d commissioning of Iran Pakistan (IP) gas pipeline and LNG project. With the progressive depletion of the major gas fields , it may no t be possible for SSGCL/SNGPL to meet demand of existing consumers. Petroleum Ministry says that injection of Pasaki/Kunar gas into SSGCL and SSGCL system is imperative to save both the gas companies from collapsing and due to this reason ECC of the cabinet has already allocated Pasaki/Kunar gas t o SSGCL an d SNGPL sy st em…
SBP policy rate hiked to 13 per cent The State Bank of Pakistan has decided to raise the policy rate by 50 basis points to 13.0 percent with effect from August 2nd, 2010 with a view to mitigate risk to macroeconomic stability. This was announced by Yaseen Anwar, Acting Governor, State Bank of Pakistan, while unveiling the Monetary Policy Statement at a press conference on July 30, 2010.
“This has been done to mitigate risks to macroeconomic stability, monetary policy has to take lead for containing aggregate demand pressures emanating mai nl y from expan sion ary fisc al position,” Increase in policy rate means increase in interest rate of the commercial banks from exist ing 12.5 to 13 percent . However, whether increasing interest AUTOMARK | August-2010 27
rate, electricity & CNG prices besides increase in GST would help containing the inflation or would further erode the purchasing power is yet to be seen. Explaining the rationale behind raising the policy rate Mr. Yaseen said that renewed committed efforts are required to increase the economy’s resource en v elop e a n d co nt a in c ur re n t expenditures....
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Sector - Update
Auto-makers oppose relaxing conditions for new entrants If the production condition is relaxed for new auto makers and they are given a more liberal policy, existing auto makers believe the entire industry will suffer a blow. They believe the industry is already suffering from ever increasing pressures such as a hike in the prices of utilities and raw materials. Existing auto manufacturers expressed reservations over speculations that the government remains all set to relax conditions for new car manufacturers in an attempt to attract investment in the auto sector. The government has been pressurising auto manufacturers to reduce the prices of local vehicles. All stakeholders are involved in talks with the government on the Auto Industry Development Committee (AIDC) platform to sort out ways. Prev ailing rumours are that th e government is about to reduce its annual production condition on new entrants from 500,000 units to 100,000 units in coun tr ie s ot her th an Pak is ta n. For local manufacturers/joint ventures the target of 100 ,000 cars will be achieved within three years from the date of operat ion, subject to th e prescri bed international standards. Moreover t here w il l be no oth er restriction on set tin g up of new industries in the automobile sector. The local auto industry is concerned about these rumors and said the industry welcomes new car manufacturers, but the government should provide a level playing field and policies should be the same for existing and new auto makers. They said new entrants should perform under the same conditions as any other local manufacturer with the same tariff;
and no special tax breaks or separate policy should be given. Reputed auto brands produce more than 500,000 units, but it seems that the government is paving the way for either low-end quality brands or high-end Italian sports cars. However it is unlikely the Italian Sports Brand Ferrari will be interested in setting up a plant in Pakistan.
AUTOMARK | August-20 10 28
If the production condition is relaxed for new auto makers and they are given a more liberal policy, existing auto makers believe the entire industry will suffer a blow. They believe the industry is already suffering from ever increasing pressures such as a hike in the prices of utilities and raw materials. According to Furqan Punjani, auto analyst at Topline Research, if this relaxation in conditions is approved, it will certainly allow more players in the market. This will not have an immediate effect, but in the medium and long term this will break the monopoly of existing auto manufacturers, with consumers having more choices. In another proposal, age relaxation on import of used cars from three to five years is also on the cards. After the implementation of an increase in sales tax by one per cent from 1st July, all local manufacturers have passed on th e ad de d c ost t o con s um er s. Prices of various models of Pak Suzuki have now increased by Rs4000 to Rs70,000. Indus Motor Company has increased the prices of various models of Toyota by Rs11,000 to Rs16,000, while Daihatsu Coure has increased its price by Rs6000. Honda increased its prices by Rs20,000 to Rs35,000 on various models.....
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
AUTOMARK | August-2010 28
33
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Fuel & Safety - Update
CNG stations' safety standards Govt to welcome proposals: Minister The training to the workers of CNG stations is a step to ensure safety standards and adopt solid measures. Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar has said that government will welcome the proposals of all stakeholders to ensure safety standards at CNG stations. While addressing an event "Pakistan's Workforce - Fueling the Economy," Minister said that Pakistan was the largest CNG consumers in the world. "The training to the workers of CNG stations is a step to ensure safety standards and adopt solid measures," Qamar said. Minister said that gas prices were still less than the prices prevailing in the world market. "Skilled labour is needed to improve CNG industry and we believe we have been able to address some of the gaps through partnership with the US who is supporting CNG skills training," said Naveed Qamar. Bob Wilson, the Mission Director of the United States Agency for International Development (USAID) Pakistan said, "Pakistan was facing energy crisis and US was making all out efforts to provide assistance to overcome the shortage. "Pak ista n shou ld al so f ocu s on
production side," Wilson maintained. "Our commitment to the government of Pakistan includes nurturing local talent," he said adding "by sharing training expertise and experience with today's promising CNG industry employers and
50,000 illegal vehicles in Balochistan The Balochistan Customs has revealed that 50,000 illegal (noncustoms dutypaid) vehicles were operating in Quetta an d oth er pa rts of the provinc e. These illegal vehicles have inflic ted financ ial loss of Rs15 billion to the national exchequer,” Collector Customs Hafiz Matiullah told media. He said that during last three months customs has seized 70 s uch n on -cust om-pai d vehicles. He said that minimum customs duty per vehicle was Rs0.3 million. The Balochistan Customs has written a
letter to provincial government seeking the support of other law enforcement agencies in nabbing illegal vehicles. He said that most of the crimes were being carried out in these illegal vehicles and customs was fac in g political pressure after seizure of such vehicle since they belonged to influential people. Hafiz Matiullah said that Balochistan Customs has seized smuggled goods worth Rs500 million during last three months....
visit our website www.automark.pk AUTOMARK | August-2010 34
employees, we believe we are making an investment in the future of the Pakistan's energy workforce and CNG industry." USAID completed workforce ski lls training of 753 CNG Workers in the Compressed Natural Gas (CNG) sector in cus tome r s erv ice an d saf ety standards, increasing their eligibility for promotion and incomes over 10 percent. Further expanding its partnership with the Government of Pakistan, USAID presented the Ministry of Petroleum and Natural Resources the CNG curriculum an d tr ai n in g ma n ua ls en tit led "Pakistan's Workforce - Fueling the Economy." All Pakistan CNG Association Central Chairman Ghyas Paracha said; "Jobs Project - Pakistan's Workforce - Fueling the Economy" is one of the milestones to meet training objective of CNG stations staff. He said that CNG assoc iation was working on the bio-fuel technology, which will meet the need of gas for the CNG sector and help reduce pollution making Pakistan greener….
CNG prices increased The Oil and Gas Regulatory Authority (Ogra) increased on Thursday prices of compressed natural gas (CNG) by Rs1.70 per kg for Sindh and Punjab and Rs1.73 f or K hy be r Pak ht u n kh wa a n d Balochistan. The new prices will be effective from July 30, 2010. According to an Orga notification, CNG prices for Sindh and Punjab, excluding the Potohar region, have been raised to Rs55.33 per kg from Rs53.63 and those for Khyber Pakhtunkhwa, Balochistan and Potoh ar region (Ra walpindi, Islamabad and Gujar Khan) to Rs57.03 from Rs55.30. CNG Dealers’ Association chairman Abdul Sami Khan said the association had sought an increase of Rs2.30 per kg because of an increase in gas price, gen eral sa les tax an d elect ricity
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Focus on Environment
Global warming
Ministry of Environment, UN launch GRIP Ministry of Environment and the United Nations Pakistan through the One UN Joint Programme on Environment had launched the Grass Root Initiative Programme (GRIP). According to the pr og r a mm e 2 4 en v ir on me n t al pr ot e ct ion p r ojec ts wo uld b e implemented by the community based NGOs in all provinces including AJK and Gilgit Baltistan. This was revealed in a meeting with Federal Minister for Environment Hameed Ullah Jan Afridi in the chair here on Friday. The meeti ng was at t en ded by Fede ra l Secr et ar y Environment Muhammad Javed Malik, Additional Secretary Kamran Ali Qureshi, Director General Javed Ali Khan, I.G Forest Syed Mehmood Nasir,
National Programme Coordinator One UN Joint Programme for Environment Saleem Ullah and other representatives. It was disclosed that 24 projects would be completed with the estimated cost of $1.2 million and out of these projects, three projects would be implemented in AJK, four in Balochistan, three in Gilg it-Ba ltist an, five in KhyberPakhtunkhwa, seven in Punjab and three in Sindh Provinces. These projects include solid waste management and sanitation, community based Natural Resource Management and Grass-root Climate Change Mitigation initiatives. It was informed that GRIP aims at developin g an inc lusi ve common platform of key partners to connect policies, programmes and projects and
Climate change prompting heavy rains and floods Climate change and global warming are adversely affecting the world and recent heavy downpours that broke the 35year-old rec ords caused by global climate change, said Federal Minister for Environment Hameedullah Jan Afridi. He was addressing a two-day workshop on “environment and climate change”, or g an is e d b y t h e Min is t ry of Environment in collaboration with United Nations Environment Program (UNEP) and University of Peshawar. “Despite the fact that Pakistan is not a major contributor to the global warming, emitting only 0.4 percent of total GHG emissions and ranks 135th in per capita per day emissions, the country is severely being effected by the impacts of cl imate cha ng e,” sa id Afridi. Food, water and energy security have also been threatened by the global warming. According to modern studies, wheat yield would be reduced by 5-6 percent by 2080 because of the climate change. The Minister said that being vulnerable to the consequences of this change the
country was in growing need to protect itself from the adverse impacts of climate change. “National Environment policy 2005 provides guidelines and priorities for implementation of climate change issues”, he added. He underlined that inter-ministerial committee has also been established under the Prime Minister to address the environmental problems and The Global Change Impact Studies Center that was s ecr e ta r iat fo r t he comm it te e undertaking comprehensive research on climate-related issues. “Preparation of Environment and Climate Change Outlook report will be very helpful and policy aspects of the report will assist in reducing risks, developing robust coping stra tegies and creat ing synergi es between various governmental agencies and other factors dealing with climate change.” He wished that this workshop would be an initiative for all of us, not only to discuss the various issues pertaining to the environment and climate change rather actively participating in the process….. AUTOMARK | August-2010 35
actions by government, aid agencies, NGOs and UN agencies, and commercial activities of the private sector into an ag reed s ust ai nab le dev elopmen t framework. Federa l Minister s aid t hat GRIP programme would assist the civil society organisation (CSOs) in the shape of s m a l l g r a n t s f or in t e g r a t e d environmental management. Under GRIP, t he CSO s wi ll impleme nt interventions for the achievements of MDGs by demon strating ho lis tic environmental management at local level in cluding awareness raisi ng campaigns and capacity development towards the same cause.-PR
Best environment awards go to 58 companies Federal Mini ster for Environment Hameedullah Jan Afridi presented award to 58 companies at the 7th Environment Excellence Award 2010 ceremony organized by the National Forum for Environment and Health (NFEH) in collaboration with KESC, English Biscuits and other companies at a local hotel. The awards were decided by a jury of five judges including environment expert Dr. Sami-uz-Zaman Head of Jury, Shamsul Haq Memon Member Jury & Former Secretary Environment Sindh, Na de em Ar if Me mb er Ju r y & Environment Consultant, Afia Salam and Gulzar Feroz Member Jury & Chairman FPCCI Standing Committee on Environment. The decision of the jury was widely hailed by the officials of government, civil society and media organizations. Addressing the ceremony, Hameedullah Jan Afridi said that hectic efforts are being made to conserve environment in the country by raising forests, reducing air pollution and disposing of solid waste in proper way.
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
International Automotive - Update
Mahindra to Unveil First Motorcycles This Year, Challenging Honda in India “It will be very difficult to break into this market as the existing players are so dominant,” said Vaishali Jajoo, a Mumbai-based Angel Broking Ltd. analyst. “Mahindra will have to leverage their brand if they want to establish themselves in the two-wheeler space.” Hero Honda, part-owned by Honda Motor Co., and Bajaj Auto Ltd. together control about two-thirds of India’s motorcycle market, the world’s biggest after China. Mahindra & Mahindra Ltd. plans to introduce its first motorcycles in India withi n the next few months as it challenges Hero Honda Motors Ltd. in the world’s second-biggest two-wheeler market. The company intends to add motorbikes ranging from low-cost entry models to premium products, Anoop Mathur, the head of Mahindra’ s two -wheeler business, said in an interview at the company’s Mumbai headquarters yesterday. He declined to elaborate further on the product plan. The two-wheeler unit aims to break even next fiscal year and to become as large as Mahindra’s tractor and sport-utility vehicle businesses within seven years, Mathur said. India’s largest maker of tract ors and SUVs began mak ing scooters in 2008 after buying Kinetic Motor Co. to boost sales in a country where two-wheelers outsell cars about than five-to-one. “It will be very difficult to break into this market as the existing players are so dominant,” said Vaishali Jajoo, a Mumbai- based Angel Broking Ltd. analyst. “Mahindra will have to leverage their brand if they want to establish themselves in the two-wheeler space.” Hero Honda, part-owned by Honda Motor Co., and Bajaj Auto Ltd. together control about two- thirds of India’s motorcycle market, the world’s biggest after China. Shares Rise Mahindra climbed 2.4 percent to 616.75 rupees at the 3:30 p.m. close of trading
Mahindra’s tractor business was its fastest-growing segment over the past two years, expanding an average of 29 percent, according to data compiled by Bloomberg. Cars, trucks and SUVs grow at a 14 percent annual rate in the period.
Motorcycle Designs in Mumbai, the fourth-best performer in the 30-stock benchmark Sensitive Index, which rose 0.6 percent. The automobil e-maker has climbed 14 percent this year, outperforming a 2.9 percent gain for the Sensex. The company’s scooter sales more than quadrupled in the quarter ended June to 27,000, according to Society of Indian Aut omobile Manu fac turers da ta. Industrywide sales of motorcycles and scooters rose 28 percent to 2.7 million in the three months as rising incomes and econo mic expansi on s purred demand. “We’re looking to become a credible player in the two- wheeler space in India over the next few years,” Mathur said. “There’s huge potential in the market.” Mahindra’s companywide revenue has increased at an average pace of 25 percen t over t he pas t five years compared with 16 percent for Hero Honda and 15 percent for Bajaj Auto, ac cord in g t o Bl oom be rg da t a.
AUTOMARK | August-20 10 36
Mahindra’s motorcycles will be designed by Engines Engineering, an Italian design company it acquired in 2008, Mathur said. The company would consider further ac qui sitions an d collaborations to boost its two-wheeler business, he said. No deals are being actively worked on at present, he said. Mahindra, which is con sidering a financial bid for Ssangyong Motor Co., the bankrupt South Korean sedan and SUVs manufacturer, more than doubled its net income to 20.9 billion rupees last fiscal year as vehicle sales surged. Profit may rise to 21.8 billion rupees in the 12 months to March 31 according to the average of 21 anal ysts’ estimates compiled by Bloomberg. The company may consider exporting motorcycles to markets including Latin America, Africa and South Asia once sales in India have begun, Mathur said. Nat ionwide two -wh eel ers outs old passenger cars 2.7 million to 554,566 in India in the April-to-June quarter, according to data from the Society of Indian Automobile Manufacturers. Sales of motorcycles may increase to 8.04 million in the year ending March 31, 2011, from 7.34 million last fiscal year, the group predicts. Scooter sales may gain 14 percent to 1.66 million.
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
International automotive sector - Update
BRIEFING - ASIA AUTOMOTIVE (INTERNATIONAL)
GLOBAL MOTORCYCLE OUTPUT DOWN 4.8% IN '09, 1ST DROP IN 11 YRS
HYUNDAI MOTOR Q2 NET SURGES 71.2 PCT ON STRONG SALES
TO KYO - Glob al p roduct ion of motorcycles fell 4.8 per cent to 50.15 million units in 2009, its first decline in 11 years, due mainly to the effects of the global financial crisis. The figures were released at a joint news conference held Wednesday by the n at ion 's four maj or motor cy cle manufacturers, including Honda Motor Co. (TSE:7267) and Yamaha Motor Co.
SEOUL - South Korea's top automaker Hyundai Motor Co. (KSE:005380) said Thursday its second-quarter earnings jumped 71.2 per cent from a year earlier on strong sales at home and abroad. Net profit surged to a quarterly high of 1.39 trillion won (US$1.17 billion) in the three months that ended June 30, compared with 811 billion won a year earlier, the company said in a regulatory filing.
MALAYSIAN AUTOMAKERS STUDY TRADE OPPORTUNITIES IN SOUTH AUSTRALIA ADELAIDE - Adelaide's auto component producers will get a chance to pitch for extra export business with a key group from Malaysia's car industry visiting South Australia. Representatives from vehicle producers Proton an d Perodua al ong wit h members of the Malaysian Automotive Association have arrived in Adelaide to explore trade opportunities.
DEMAND FOR FUEL PUMPS INCREASING IN INDONESIA JAKARTA - Indonesian automotive sparepart traders at Atrium Senen sparepart shopping center here said engine fuel pump sales over the past two weeks had increased from 2-3 units per month to 2-4 uni ts per day. Di an Motor spareparts shop owner Hendra said here on Tuesday that a customer who was a public transport businessman, had bought fuel pumps from him three times in one week.
JAPANESE MINISTERS STILL DIVIDED ON EXTENDING ECO-CAR SUBSIDIES TOKYO - With the government's greencar subsidies set to end after September, cabinet ministers are split on extending the measure. "Given the state of the economy, the s ch e me mu s t b e p r olo n g e d, " Environment Minister Sakihito Ozawa told reporters Wednesday. But his econ omy , t r ad e a nd in du st ry counterpart, Mas ayuki Nao shima, insists that "they should not be extended ind efinitely. We're no t curren tly considering continuing the scheme th rou gh Oc t obe r an d bey ond ."
GM DAEWOO'S AUTO SALES SURGE 49 PCT IN JULY SE OU L - G M Da ew oo Aut o & Technology, the South Korean unit of U.S. automaker General Motors Co., said Monday its automobile sales increased 49.4 per cent in July from a year earlier on strong overseas demand. The automaker sold a total of 67,318 vehicles last month, compared to 45,064 units sold a year ago. Domestic sales increased 10.4 per cent on-year to 10,313 units in July with exports jumping 59.6 per cent to 57,005 units. AUTOMARK | August-2010 37
JAPAN'S SUMITOMO RUBBER TO BUILD 2ND CHINESE TIRE PLANT BUILD 2ND CHINESE TIRE PLANT OSAKA - Japan's Sumitomo Rubber Industries Ltd. (TSE:5110) has decided to set up its second tire plant in China at a total cost of 26.7 billion yen (US$305.34 million). This new plant will be built in Changsha, Hun an Provinc e. Served by well maintained expressways, this inland city occupies a prime location within China's transportation network. By building a plant inland, the company hopes to avoid the surging wages and labor s hort ages affecting coast al a reas
CHINA'S AUTO SALES TO REACH 22 MLN UNITS BY 2015 HONG KONG - Automotive sales in China will reach 22 million units by 2015, buoyed by the country's positive economic growth, a government report showed Friday. According to the White Book of China Motor Indus try published by the Development Research Center of the State Council, a research institution under the Chinese government, China's auto market will jump about 62 per cent in six years.
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Student Corner Exclusive Survey Report by automark team
Shell Eco Marathon Asia-2010 Shell international is one of the world’s largest Oil & Gas organizations, earning billions of dollars in profit per annum. Besides providing POL products globally Shell sponsors many racing events & brands worldwide as automobiles are the major consumers of the energy derived from the oil & gas. Amongs t man y even ts Shell Eco Marathon (SEM) is one of the most unique concepts developed to encourage th e yo un g e mer g ing ta len t of engineering students who put forward their ideas to develop concept vehicles having drive trains that consume the conventional and alternate fuels very efficiently; for world of tomorrow, which will be striving for sustainability of energy. Last month SEM Asia-2010 was held in Malaysia at the Sepang International Formula 1 circuit. Teams from all the major Asian countries participated. Pakistan showed its strong participation, in total 30 teams expressed their intentions through registration for their vehicles, although 23 teams got final approval to take their vehicles for the event. Monthly Automark magazine published monthly from Karachi, conducted a survey of all the participating teams about their experiences all the way from the construction of their vehicles to their event, the competition & other safety and technical aspects. Here we will highlight all those aspects and the views of those who experienced it the first hand.
• Students from almost all reputed engineering institutes across Pakistan namely NEDUET, UET Lahore, NUSTNU, Ai r Un iv ersi ty & GIKI etc. participated in this event & although the students agreed that their universities have the appropriate facilities to develop their vehicles but due to the university policies and procedural impediments most of the students developed and fabricated their vehicles at sponsors place or at an independent workshop or garage. • Most of the teams took two or more months for the development of their vehicles & technical assistance was provided by their respective university teachers. Most of the teams used locally
available parts & equipment for the dev elopm en t of th eir v eh icle s.
• All the development & manufacturing indeed needs financial assistance. When it comes to sponsors students either managed sponsors by themselves or universities helped finding them. The financial aid was enough for few teams while some invested individually to fulfill the remaining monetary requirements.
• Most of the teams had problems in the transportation of their vehicles to Mal aysia. Shell international had arranged a local logistic company for the teams at heir cost depriving from the initial agreed financial assistance of around US $ 3,000 to be given to the participating teams at Malaysia, as such the teams were compelled to use the Shell designated logistic company the costs were too high for many teams, so they managed to arrange transportation from other agencies that sponsored their transportation charges.
• Another
problem which Pakistani teams faced was that the cars when arrived in Malaysia were in “Bad” condition due to the breakag e of components during transportation. All tho se who pac ked t heir cars by themselves found their vehicles with broken components in Malaysia. It’s important to mention here that all those who utilized the assistance of cargo services to make a perfect package of their cars, retrieved their cars in “Good” and “Normal” condition. (as per our survey report)
• Due to the relatively adverse condition of Pakistani vehicles the teams mostly took 2 or more days to put their vehicles on track. To repair their vehicles in Malaysia most of the teams utilized the expertise of their teachers or shell of ficial s a nd help of Mal ay si an colleagues.
• Only one team from GIKI institute named AQUA was able to register an offici al result. Team Pakistan from NEDUET Automotive eng ineering department also managed to complete all laps but due to delay of 1 minute to the allotted time was deprived of the second prize in the urban category.
• A team from UET Lahore was not able to mak e it to th e tra ck due t o AUTOMARK | August-2010 38
transportation damage suffered earlier but got amount of 200US$ for being nominated in the top 15 conc epts amongst all the vehicles. When they were not able to make it to the track they donated their vehicles spares to other teams in need of them.
• Another
interesting concept from NEDUET Automotive department was Pakistan’s first concept Fuel cell vehicle which utilized hydrogen fuel cell donated by NED to propel the vehicle, it claimed 634 km/l of Hydrogen. But could not complete the required 5 laps due to drain of their batteries.
• The
outcomes of this year will be helpful in plotting their learning curve for t he st ud ent s in te nt ion al t o participate next year. It is to be said that while it is good to see the large number of active participant this year but due to the huge number of participants the sponsors had to be divided amongst all of them & therefore they had to develop their concept vehicles in relatively lesser subsidy.
• It is better for the upcoming years that the number of teams are reduced so that the monetary funding are well enough for all the participants. Also the role of Shell in this event receives a mixed response. Some criticize it thoroughly due to the obligation of Shell that no team is allowed to get sponsors from any other Oil & Gas industry as on the other hand Shell itself does not provide necessary funds for the development of vehicles. Concluding this survey report the efforts of all participant teams from Pakistan have to be appreciated thoroughly, even if they weren’t able to make it to the track; the will they demonstrated to turn their concepts into reality & the will to go on & to succeed has to be appreciated whole heartedly. Role of media comes in this aspect & appropriate media coverage is necessary to appreciate the talent of all the individuals. We hope that the youth stars of Pakistan keep on shining in the international arena & make a strong impression that we have the caliber to take on any challenge put forward to us. Happy Independence Day and Long live Pakistan. Cheers!
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Student Corner
Exclusive Survey Results
If you do get chance to a ttend thi s event again next year, will you attend?
No [0] Maybe [5]
Yes No Maybe
14 0 5
74% 0% 26%
Yes [14] Were you satisified with role of Shell Pakistan in this event? 50/50 [10]
Yes No 50/50
6 3 10
32% 16% 53%
No [3] Yes [6] Did you complete all laps?
No [14]
Yes No
5 14
26% 74%
Yes [5] substantial go vernment’s revenues, in te gra te d in du st ry , si g ni fican t contribution to GDP for econo mic growth, move towards self reliance and significant import substitution through local value addition. PAMA says that the industry suffered from unfavorable and unstable policies eroding its global competitiveness, High duties on imports of parts not available locally, liberal policy on import of used cars and high cost of doing business with more than 50 per cent idle capacity. Auto industry contributes foreign exchange saving of $2.4 billion per year, foreign investment worth over Rs 100 billion, over Rs 338 billion per year to GDP, over Rs 63 billion per year as taxes, employment for almost one million people through its value chain, transfer of technology via joint ventures and technical assistance agreement and local production of large number of auto
parts. According to Furqan Punjani of Top Line Securities July 2010 car sales are likely record seven-month low. Car sales in Pakistan after reaching 24-month high level in June 2010, is expected to decline by 39 per cent (seven-month low) to approx 10,200 units during July10. The major reason of this decline in sales is pre-buying by dealers in June 2010 in antic ipation of higher car prices following one increase in sales tax in budget 2010-2011. The decline is likely to be visible in sales of Pak Suzuki (down 52 per cent on month on month) followed by Indus Motor (down 27 per cent MoM). However, July 2010 car numbers will be flat compared to July 2009. Furqan expects overall car s ales to reach 154,000 during 2010-2011, a 10 per cent growth after an abnormal rise of 43 per AUTOMARK | August-2010 39
cent in 2009-2010. He says Pak Suzuki is likely to take a heavy toll as its sales are expected to decline by 52 per cent to around 4,500 units compared to 8,693 units in June 10. This decline is likely to be visible in Mehran sales. Similarly, sales of Indus Motor are expected to remain around 4,200 units compared to 5,793 units in June 2010, down 27 per cent. Furthermore the elite class Honda Cars’ sales are also expected to fall by around 33 per cent to 1,300 units compared to 1,728 units last month. None of the car manufacturer (notably Indus Motors Limited and Pak Suzuki) is highly leveraged and currently a very minor portion of sales is derived from consumer financing. However, if interest rate continues to increase going forward it wi ll affect car sales deman d....
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Shell Eco Marathon Asia-2010
AUTOMARK | August-2010 40
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive - Corporate Event
PLATINUM DEALERS MEETING 2010 RAVI AUTOMOBILE (PVT) LIMITED. Transforming Ideas Into Value
Ravi Platinum Dealers meeting with the Director of RAVI Automobiles Pvt, Ltd. in Buraj-ul-Arab, Dubai I n iti at e d w it h an u n wa v er in g commitment to the development and creation of leading technologies, Ravi Automobile (Pvt) Ltd., formerly HKF Engineering (Pvt) Ltd., has revitalized the Pakistani Two-Wheeler Automotive Industry and the very essence of its pa ren t g roup of companies, Ravi R e s ou r ce Pa kis ta n , s i n ce it s inauguration in 2004. Ra vi Reso u rce h as s et up n ew establishments to better cater to the needs and demands of its clients. The new branches to this strong network are: • Ravi Spherocast - A facil ity dedicated to Casting of Nodular and Grey Iron • Ra vi Agric – A project in collaboration with Claas Germany, d e dic at e d t o pr ov id ing h e a vy agricultural machinery to Pakistan • Infinity Engineering (Pvt) Ltd. – A facility oriented in subcontracting a ctivities specializi ng in Forgi ng, Pr ecis ion Ma chi n ing a nd Hea t Treatment of automotive and general engineering components. R a v i is t h e o n ly mo t or cy cle manufacturer that has provided its customers with an array of motorcycles and presently has the following three models:-
• Hamsafar-70
• Premium R1 • Ravi Piaggio: Storm 125 All these products are compatible and approved from Pakistan Standard Quality Control Authority (PSQCA) and Pakistan Engineeri ng Development Board (EDB). Our Storm 125 is a joint product manufactured and assembled at RAVI – Pakistan under the agreement with PIAGGIO (Italy) 4th largest producer for motorcycles and scooters in the world. This is a 1st EURO II motorbike in 125cc class in Pakistan. Adding to this range, Ravi is set to launch three new models within the next few mon ths maki ng it no t just a motorcycle manufacturer that provides cost-effective, performance packed, reliable motorcycles; it is the only Pakistani company that is fully equipped with in-house manufacturing facilities to sustain and deliver higher levels of production as Pakistan’s two-wheeler market continues to expand. Therefore, Ravi Motorcycles embody industry leading innovation in both style and mechanics. Dedicated to luxurious longdistance travelling, it is the freedom to go places. Alive and empowering, it is a vehicle that makes it worth a ride! Ravi Automobile (Pvt) Limited has 140 (3S) dealers all over Pakistan; for providing support, sales and the highest AUTOMARK | August-2010 41
level of services to RAVI Motorcycle buyers. Our products are also backed by appropriate spare parts of OEM quality, warranty and service network as at RAVI, we strongly believe in the state of art manufacturing, strong product line up and market oriented strategies. Headed by its dynamic young Director, Mr. Fahad Iqbal, Ravi Automobile closed the financial year 2009 / 2010 with a substantial increase in sales and to celebrate this success with the Ravi family, A Platinum Dealers Meeting was held on 24th July 2010 at Burj Al Arab, Dubai . A gr and celebra tion w as undertaken to thank our respected associates, appreciating their hard work a n d va lue d collab ora t ion. Mr. Muhammad Saeed Akhtar, Manager Sales & Marketing, provided an overview of the closed year’s Sales activities and targets were discussed and set for the next financial year 2010-2011. Thiswas following by an overview of the After S al es w hi ch wa s pre se nt ed by Sr.Manager Service, Mr. Asif Mehmood. The event was concluded with an award ceremony, ho noring the Platinum Dealers and Top Dealer of Hamsafar, Premium R1 & Storm125with shields and a firm commitment to continue with the same zeal and zest through the coming years...
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive - Corporate Event
A Group photo of Ravi Platinum dealers with Ravi Sales team
A Group Photo of Ravi Management at Buraj-ul-Arab,Dubai On the occasion of Platinum Dealers meeting.
A Group Photo of Ravi Platinum Dealers with Director of RAVI Automobiles (Pvt) Ltd.
Top Seller Premium R1 in o vera ll Pakistan (M/ S Fiaz Ravi Centre, Peshawar)
1st position holder in overall Pakistan (M/S Kashif Traders, Khan Pur)
Top seller of Hamsafer RA in all Pakistan (M/S Kashif Traders, Khan Pur.)
Top Seller of Storm 125cc in all Pakistan (M/S Asif Autos, Lahore.)
AUTOMARK | July-2010
42
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
www.automark.pk
August-2010
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Tribute to Ayrton Senna
Exclusive article by Shahzad Tabish
“Ayrton Senna” The Legend
“Legend” the word itself means actions or happeni ng s as soc iated wi t an individual that defy all possibilities of real world. Some individuals are born Legends, while some transform their lives to turn it into a legend. Only a few however, are able to redefine the term Legend itself. Ayrton Senna da Silva is one of those individuals. Very recently world’s biggest automobile TV show “Top gear” presented its tribute to Ayrton Senna on the occasion of his 50th birthday if he were able to survive to this present day. This tribute inspired me to write this article. Mentioning about myself I’ve been a Formula 1 fan for the past seven years. With the passage of time I have been collecting technical information about the ultimate car technologies used in the world of F1 as well as gathering information about the drivers & their driving styles. Since th e v ery beg inn ing I’ve a lw ays appreciated Michael Schumacher’s ability just like millions globally, but the recent tribute on Top gear changed my perceptions. Ayrton Senna was introduced to F1 in
the year 1984 when he joined Toleman F1 team. He was gaining popularity due to hi s car control along with the aggressive driving style he possessed. One year later he left Toleman & joined Lotus F1 team in which he continued to race for the upcoming 3 years, polishing his skills & marking his authority firmly on F1 teams & drivers as a fierce competitor. He left Lotus F1 in 1987 & joined “McLaren” that led him to his 3 world championship titles. He left McLaren after 1993 season & joined Williams for the 1994 season, which proved unlucky for him & resulted in his death. The era in which he was driving was the era of champion drivers. Unforgettable names like Nelson Piqet Snr.(3 times cham pion ), Al ai n Pr os t(4 times champion ), Niki Lauda (3 times champion), Nigel Mansell ( 1 time champion) & Michel Schumacher who went on & became 7 time world champion. Also its worth mentioning that the cars used at that time had more power than the F1 cars of today, very less safety parameters, very few or none electronic aid to facilitate safe driving & generated very less downforce as com pared t o the cars of today. After considering all these facts & figures it is hard to distinguish between him & the greats of his time & this is where his driving style stepped in to take him ahead of his rivals of that era. It is very much visible in his driving that he was a master when it came to “throttle control”, no matter what the conditions were; no matter it rained or not he made his moves stick while driving. He made even the most difficult to drive F1 cars to behave well under his driving style. This was the fact of his success & this was the reason why drivers intending to overtake him had to take risks while trying to get his position. His greatness is accepted by all. The
AUTOMARK | August-2010 44
drivers of today, the drivers before him & the drivers who drove with him. Rubens Barrichello & Felipe Massa the two of modern Brazilian F1 drivers ac cept hi s gre atn ess al ong w it h Fernando Alonso, Robert Kubica, Jackie Stewart & the great Michael Schumacher himself. Once I remember a comment of Jackie Stewart saying “Michael Schumacher isn’t the greatest F1 driver ever, he wins more championships today because he does not receive that big competition in modern F1, Senna is way better than him.” Back then, I had no idea of the fact this comment actually represented. Lewis Hamilton the 2008 F1 champion when asked whether he would have liked it to be in the era of all those great drivers? he was speechless for a second & then in reply just said “Crazy”. That says it all. Bruno “Senna”, Jacques “Villeneuve” & “Nelson Piquet” jnr, are some names of today’s racing world. The legacy of the names they carry along with their names does not reflect in their driving abilities. Nelson Piquet jnr. Son of the great nelson Piquet snr, made it into & out of F1 due to his bad performance, Jacques Villeneuve the son of Gilles Villeneuve never was able to establish his authority in F1 due to his driving abilities, instead depended heavily on the abilities of his team. Bruno Senna the nephew of the great Ayrton Senna is racing these days in F1 but without demonstrating the lega cy asso ciated wi th his n ame. The cars of today’s formula 1 grid are much safer than that which caused Ayrton Senna his death, but we don’t find anyone today who comes close to match the talent he possessed. To his nation he was known as a person who spent millions in charity & as a sporting legend, but we will remember him as the greatest driver of all times. Long live the memories of the legend Senna.
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
Car / Light Vehicle Price List
SUZUKI
HONDA
Model MEHRAN VX 800cc MEHRAN VX (CNG) 800cc MEHRAN VXR MEHRAN VXR (CNG) ALTO VX 1000cc ALTO VX (CNG) ALTO VXR ALTO VXR (CNG) SUZUKI SWIFT 1.3L PETROL CULTUS VXR CULTUS VXR (CNG) CULTUS VXL CULTUS VXL (CNG) LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) LIANA 1.3L LXI MT PETROL LIANA 1.3L LXI (CNG) LIANA 1.6L Eminent AT RAVI PICKUP ST308R VX RAVI PICKUP ST308R VX CNG BOLAN VAN Petrol VX BOLAN VAN VX CNG BOLAN VAN VXR BOLAN VAN VXR CNG SUZUKI VAN CARGO
Price Rs. 433,000 Rs. 479,000 Rs. 488,000 Rs. 532,000 Rs. 556,000 Rs. 614,000 Rs. 635,000 Rs. 684,000 Rs. 1058,000 Rs. 816,000 Rs. 857,000 Rs. 865,000 Rs. 912,000 Rs. 1,114,00 Rs. 1,184,000 Rs. 1,165,000 Rs. 1,229,000 Rs. 1,230,000 Rs. 453,000 Rs. 504,000 Rs. 512,000 Rs. 564,000 Rs. 578,000 Rs. 631,000 Rs. 478,000
CHEVROLET Model CHEVROLET JOY CNG CHEVROLET JOY Petrol
Price Rs. 569,000 Rs. 539,000
NISSAN CARS Model Sunny Ex-Saloon 1.6L M/T Sunny Ex-Saloon 1.6L CNG S. Super Saloon 1.6L M/T S. Super Saloon 1.6L CNG S. Super Saloon 1.6L A/T NISSAN S. S. Saloon 1.6L A/T CNG
Price Rs. 1,225,000 Rs. 1,305,000 Rs. 1,370,000 Rs. 1,450,000 Rs. 1,470,000 Rs. 1,550,000
NISSAN DIESEL TRUCKS Diesel Truck PKB 211 Diesel Truck PKD 411H Diesel Truck PKD 411E Diesel Truck PKD C D 411 Diesel Prim e Mover CWM 454
Rs. 3,000,000 Rs. 4,150,000 Rs. 4,260,000 Rs. 4,600,000 Rs. 5,500,000
Model ACCORD ACCORD CR-V CITY I-VETC MT CITY I-VETC AT CIVIC VTI Mt CIVIC VTI Mt Oriel CIVIC VTI Pt CIVIC VTI Pt Oriel
HYUNDAI
Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.
Price 5,866,000 5,316,000 1,259,000 1,389,000 1,629,000 1,804,000 1,749,000 1,879,000
TOYOTA COROLLA Model XLi 1.3 VVTi GLI 1.3 VVTi 2.OD 2.OD SALOON 2.OD SAL SUNROOF ALTIS 1.8 VVTi M/T ALTIS 1.8 VVTi A/T
Price Rs. 1,300,000 Rs. 1,426,000 Rs. 1,358,000 Rs. 1,713,500 Rs. 1,799,000 Rs. 1,713,500 Rs. 1,799,000
CHERY QQ Model
Price
CHERY QQ Petrol CHERY QQ CNG
Rs. 588,000 Rs. 628,000
LAND ROVER
DAIHATSU
Model
Model Price DEFENDER CUORE CX Rs. 6,70,000 (90 S/WJEEP STD) CX ECO (CNG) Rs. 7,15,000 (110 S/W A/C) CX AUTOMATIC Rs. 7,49,000 (90 Soft Top)
MASTER Model Price Master Highland M-260 (1,5T) Rs. 625,000 Master Forland Super M-330 (3T) Rs. 699,000 Master Econg M-390 (3.5T) Rs. 930,000 Master Grande M-410 (4.5T) Rs. 11,30,000 Master Rocket Faw (7.5T) Rs. 12,60,000 Master Feng EQ 1032 Strip Chassis Rs. 832,000 Master Feng EQ 1061 Strip Chassis Rs. 832,000
Price updated July’ 2010
Price Rs. 2,269,431 Rs. 2,545,000 Rs. 2,150,260
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Shell Eco-Marathon Asia-2010
Glimpses of Participants
AUTOMARK | August-201 0 46
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Shell Eco-Marathon Asia-2010
Glimpses of Participants
AUTOMARK | August-2010 47
see the report on page 39
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
Automotive Industry - Review
What is the History Behind Honda Cars? Since 2002, Honda has been selling the Honda Civic Hybrid (2003 model) in the US market. It was followed by the Honda Accord Hybrid. The history of Honda Cars has been filled with many achievements. Headquartered in Japan, the Honda Company has had a long and successful history of making quality cars. The Honda Technology Research Institute Company is the 6th largest automobile manufacturer in the world and the biggest engine-builder in the world. Each year, Honda builds more than 14 million internal combustion engines. The company buil ds automobiles, motorcycles, trucks, scooters, robots, jets and jet engines, ATV, water craft, electrical generators, marine engines, lawn and garden equipment, mountain bikes, and aeronautical technologies. In October 1946, Soichiro Ho nda es tabli shed t he Hon da Techn ical Research Institute in Hamamatsu, Japan. The goal was to develop and build small 2-cycle motorbike engines. Two years later, Honda Motor Company, Ltd. was created. Honda's first US storefront open ed in 1959 in Los An geles. Honda's first production automobile was the T360 mini pick-up truck. The first production car from Honda was the S500 sports car.
Chronological highlights of the history of behind Honda cars as reported by world.honda.com include: 1963 Honda's first sports car (S500) a nd lig ht truck (T360) released. 1966 Sales and export of S800 begin. 1967 Front-wheel-drive minicar, N360, released. 1968 Export of N360 and N600 begin. 1971 Life minicar released. 1972 Civic released. 1976 Accord CVCC (1600cc) released. 1978 Prelude released. 1981 City released. 1985 Today minicar and Legend released. Quint Integra released. 1986 Honda expanded into the luxury
automobile market with the creation of the Acura brand 19 89 Ac cord In spire re lea se d. 1990 NS X s ports car releas ed. 1992 Worldwide automobile production reaches 20 million units. 1994 Odyssey released. 1995 Worldwide Civic production reaches 10 million units. CR-V sports utili ty vehic le released. Worldwide automobile production reaches 30 million units. 1996 Step WGN (Wagon) released.
1999 Honda S2000 sports car released. Lag reat Can adian-made mini van released. Insight hybrid released. 2000 Life Almas, first minicar with features for the physically challenged, released. Stream minivan released. 2001 Fit released. Civic Hybrid released. 2003 Ho nda becomes th e first Japanese automaker to produce 10 million cars in the U. S. New Odyssey released. 2005 Ridgeline next-generation truck released in U.S. American Honda Motor begins sales of Phill, the first home
AUTOMARK | August-2010 48
refueling appliance for natural gas vehicles. Leasing of FCX fuel cell vehicle for home use begins. Worldwide sales of Honda hybrid vehicl es reached 100,000. 2006 Zest unveiled. Performance of n ext-generation fuel-cell car FCX Concept demonstrated. 2007 Crossroad released. In August 2008, Honda surpassed Chrysler as the 4th largest automobile manufacturer in the United States. Currently, Honda is the second largest manufacturer in Japan behind Toyota and ahead of Nissan. Honda increased global production in September 2008 to meet demand for small cars in the U.S. and emerging markets. Due to the current global crisis, the company is now rearranging U.S. p rod uct ion t o kee p op era tion s func tioni ng, while building fewer minivans and sport utility vehicles.
Honda introduced the secondgeneration Insight in its home nation of Japan in February 2009. The U.S. market received the new Insight in April 2009. Honda expects to sell 200,000 of the vehicles each year, with half of those sales in the United States. Since 2002, Honda has been selling the Honda Civic Hybrid (2003 model) in the US market. It was followed by the Honda Accord Hybrid. The history of Honda Cars has been filled with many achievements. With the current economic slow down, Honda is making necessary adjustments to its business structure to ensure its future success. Formula Honda Toronto offers Honda new cars, used cars, trucks, SUV's, minivans and commercial cars. Offering a large inventory of both Honda new and used cars in Toronto and the GTA...
Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.
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 Champion CDI-70 Crown Lifan CRLF-70 Diamond SD-70 Dhoom YD-70 Eagle DG-70 Ghani GI-70 Guangta GT-70 Grace CT-70 Hero RF-70 Hero RF-70 Plus Habib HB-70 Honda CD-70 Hi-Speed SR-70 Jinan JN-70 Leader LD-70 King Hero KH-70 Moon Star MT-70 Master MD-70 Mehran SD-70 Metro Hi-Tech MR-70
Retail Price Rs. 42,500/= Rs. 38,000/= Rs. 38,000/= Rs. 37,000/= Rs. 38,500/= Rs. 38,000/= Rs. 45,300/= Rs. 38,000/= Rs. 39,500/= Rs. 41,000/= Rs. 36,000/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 62,900/= Rs. 40,000/= Rs. 38,000/= Rs. 37,500/= Rs. 36,500/= Rs. 38,000/= Rs. 36,000/= Rs. 40,000/= Rs. 42,900/=
Sr./ No. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46.
Product & Model Name New Asia NA-70 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 Stahlco ST-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70
AUTOMARK | August-2010 50
Retail Price Rs. 38,000/= Rs. 37,000/= Rs. 47,000/= Rs. 43,000/= Rs. 38,000/= Rs. 39,000/= Rs. 42,500/= Rs. 39,000/= Rs. 40,000/= Rs. 39,000/= Rs. 39,900/= Rs. 41,500/= Rs. 42,400/= Rs. 36,500/= Rs. 39,500/= Rs. 39,500/= Rs. 38,500/= Rs. 36,500/= Rs. 38,500/= Rs. 41,000/= Rs. 42,000/= Rs. 38,000/= Rs. 40,500/=
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.
MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST
125cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.
Brand & Model Name Habib HB-125 Sitara ST-125 Ghani GI-125 Hero RF-125 Honda CG-125 Honda CG-125 DX Metro MR-125 Ravi Storm-125 Euro II
Retail Price Rs. 88,000/= Rs. 55,000/= Rs. 52,500/= Rs. 75,000/= Rs. 84,900/= Rs. 106,900/= Rs. 55,500/= Rs. 78,000/=
Yamaha Motorcycle Product & Sr./ Model Name No. 1. Yamaha YD100 2. Yamana Yama4 3. Yamaha YB100 Royale
Retail Price Rs. 72,200/= Rs. 68,800/= Rs. 68,300/=
100cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8.
Brand &Model Name Asia Hero AH-100 Ghani GI-100 Habib HB-100 Honda CD-100 Sitara ST-100 Super Star SS-100 Super Power SP-100 Unique UD-100
Retail Price Rs. 46,000/= Rs. 45,500/= Rs. 55,000/= Rs. 69,900/= Rs. 51,000/= Rs. 46,000/= Rs. 45,500/= Rs. 52,000/=
Suzuki Motorcycle Sr./ Product & No. Model Name 1. Suzuki Sprinter ECO 2. Suzuki Sprinter STD. 3. Suzuki GS-125 4. Suzuki GS-150 5. Suzuki Shogan
AUTOMARK | August-2010 51
Retail Price Rs. 65,500/= Rs. 69,500/= Rs. 78,500/= Rs. 84,500/= Rs. 76,000/=
Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.