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AUTOMARK Pakistan’s premier magazine on automotive, engineering & energy sector

Editor M. Hanif Memon Sub Editor Dr. Raja Irfan Sabir

Technical Editor Muhammad Shahzad

Advertising Manager Abdul Khaliq

Circulation Manager Tahir Siddiqui

Computer Operator Salman Hanif

Web Master Mustafa Hanif

CONTRIBUTING IN THIS ISSUE Muhammad Shahzad Yakoob Gaziani Ali Hassan Shahzad Tabish Omer Rashdi

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center & Director (MME), NED University, Ex-Sr. Manager Pak Suzuki Karachi M. Yakoob Gaziani CEO LORD Institute of Tech. Karachi Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi J. Pereira General Manager Product Support Division Al-Haj FAW Motors (Pvt) Ltd. Karachi Engr. IHT Farooqui General Manager Plant Karakoram Motors (Pvt) Ltd., Karachi

The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management. AutoMark REGD: SC-1330

Published every month by M. Hanif Memon Postal Address Active Communications D-68, Block-9, Clifton,Karachi Visit us: E-mail: Tel : 021-32218526 Mobile: 0321-2203815

Business forum urges govt to resolve energy crisis The unjust increase in petroleum product prices almost all the stakeholder demanded of the government to bring down the rates immediately as the bulk raise is bound to shatter all segments of society including industry and trade. While strongly reacting on this antiindustry and anti-masses decision, government did not bother to pass on the benefit of decrease of oil prices in international market and earned billion of rupees, which was a sheer injustice and now made a huge raise in the petroleum prices. There is almost no production in industrial estates due to massive loadshedding while increase in petroleum and diesel prices would give a big blow to the industry. In current situation the industrialists, traders and common men are already annoyed due to dozens hour loadshedding while increase in petroleum prices would add fuel to the fire. The recent increase in the prices of petroleum products would hit both the Industrial and Agriculture sectors hard besides jacking up the rate of inflation in the country. Entire industrial sector was already facing multiple internal and external challenges while the recent increase would further aggravate the economic situation. business community had for the last many months been calling on the concerned government circles to take measures for the promotion of alternate fuels as trade deficit was fast widening due to heavy imports under the head of petroleum products but government has not taken a single step to this regard. Government should cut down its luxurous expenditures and curtail taxes and duties on petroleum. Prime Minister Syed Yousuf Raza Gilani should withdraw recent increase in petroleum prices immediately and also ensure representation of business community in the bodies like OGRA and NEPRA.

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Transportation and CNG Sector

Cover Story by Mohammad Owais Khan

HDIP, OGRA face uphill task to check faulty CNG cylinder Meanwhile, Most of the Pak Suzuki Motor authorized dealer across the country has started CNG cylinder testing service in collaboration with HDIP, they will uninstall the cylinder from the customers vehicles and get it tested from respected HDIP testing lab in various cities. If the cylinder passes the test, the dealer will provide safety approved certificate issued by the HDIP. The government is yet to wake up fully over the frequent loss of human life due to blast in CNG cylinder in various public transport and passenger vans mainly, as assumed and reported in the media. Co n su mers wa n t mo re qu ick implementation of their efforts since the killing of 44 deaths in just one month has sent shiver through their spines owing to use of substandard and faulty CN G cy lin ders or ga s lea ka g e. As hardly a mon th goes without watching the burning of a vehicle in electronic media caused by gas cylinder bla st leav in g n o chan ce for the commuters to make any escape bid. To show that the government is highly concerned over recent deaths of some many lives, a number of meetings were held between the stakeholders of CNG industry and the government regarding vehicle checking campaign and one of the main bodies of CNG industry claimed that it would set up at least 100 vehicle checking points countrywide. The meeting held in second week of January 2012 between the Hydrocarbon Development Institute of Pakistan (HDIP), O il and Gas R egulatory Authority (OGRA) and CNG industry finalized the changes in OGRA rules for Cylinder Fitting location and number of cylinders. It was decided that HDIP would start training soon for the recommended staff of the checking centres. All Pakistan CNG Association, led by Ghiyas Paracha, would set up 25 to 100 kits checking centres county-wide where diploma holder technicians would check the kits. Later in third week of January a deleg ation of All Pakista n CNG

Association met Prime Minister Syed Yousuf Raza Gillani. The Delegation briefed the PM about NGV checking campaign, a drive-out plan for CNG cris es an d recom men dat ion for introduction of Hydrogen CNG (HCNG). Prime Minister Gillani accepted all the APC NG A rec omm en da tio ns an d proposals and issued immediate orders and directives on some matters. Prime M inis ter o rdered t o s tart w ork immediately for the NGV safety checking campaign according to APCNGA plan. In the follow up of above meetings, OGRA has issued a pubic notice in print media for the CNG vehicle owners that only the effective license holder/CNG stations are authorised to fix CNG kits and cylinders at their facility or workshop.

OGRA has strictly asked the CNG stations to ensure precautionary measures before filling gas in the vehicles and they should fill the gas to only HDIP certified CNG fitted cars.

Customers are asked to get their CNG system of their vehicles checked (regarding checking of cylinder, piping, CNG kit and other parts etc) at least one time a year from the trained people posted at the CNG stations. Public transport owners are advised to get their vehicles’ kits and cylinders, valves, fitting, piping etc check up from authorised CNG tations/workshops. CNG vehicle owners must ensure that the pressure of filling gas at the stations should not exceed 200 psi besides they also ensure that the life of cylinder fitted in the vehicle is under periodic test life of five years. Otherwise consumers should contact HDIP testing labs in five main cities of Pakistan (Karachi, Lahore, Islamabad, Peshawar and Quetta) for random checking of life of their cylinders or cylinder testing. From the above efforts, it seems that only HDIP is the main source of checking of vehicles cylinder and its life span in just five major cities of the country. How the vehicle owners in other cities of the country will get their vehicles checked it n eeds t o be elaborated. There are over 3.1 million vehicles that have so far been converted into CNG while some 3,600 CNG stations all over the country. For a big city like Karachi the HDIP centre for vehicle cylinder checking and fitness will not be enough. There is a need for at least 10-20 centres under HDIP. Many people who visited the Karachi’s HDIP testing centre at Korangi said that the process to check the vehicle is very lengthy as HDIP officials are giving one week time for checking after pulling out

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Transportation and CNG Sector - Exclusive Article t h e c ylin d er fo rm t h e veh ic le. Sources said in case many station owners are given authority to check vehicles they cannot afford the cost of equipments used in vehicle testing. There is also a possibility that some station owners may involve in issuing fake vehicle fitness certificate in view of time consuming exercise which may pick up pace after media campaign and long queue may be witnessed at the Korangi testing centre of HDIIP. Many people feel that the whole exercise of the government aimed at enforcing quick implementation of vehicle testing and then getting fitness certificate is facing inordinate delay as in view of frequent killing of people due to CNG cylinder blast and this kind of effort need to pick up pace on a fast track. Due to very limited authorised spot of vehicle testing and getting fitness certificate of HDIP it seems that this effort will take years to give the green signal to over 3.1 million vehicles runn in g on th e co untry’s roads. The federal government should also ask the provincial governments to help the federal government department (HDIP) in meeting the gigantic task. One good news has appeared in the press recently regarding statement of Sindh Transport Minister Akhtar Jadoon who said that the government was in the process of formulating a policy to establish standardized CNG installation centres in every district of the province in order to ensure the safety of the vehicles using CNG as a cheaper fuel option. He said under the new regulatory policy, all the public transport vehicles would be required to obtain fitness certificates for their CNG kits on annual basis. He added that CNG cylinder should not be installed beneath the seats of public transport vehicles. However, chairman CNG Station Owners Association Malik Khuda Bux had been claiming for sometime that recent fatal explosions in public transport vehicles were not occurred due to blast of CNG cylinders and said explosions were occurred either in LPG, nitrogen or oxygen cylinders. Meanwhile, Most of the Pak Suzuki Motor authorized dealer across the country has started CNG cylinder testing service in collaboration with HDIP, they will uninstall the cylinder from the customers vehicles and get it tested from respected city’s HDIP testing lab and if

the cylinder passes the test, the dealer will provide safety approved certificate issued by the HDIP.

In case the cylinder is found faulty then it will be made unusable. More than one authorised dealer of Suzuki are reported to have now engaged in providing facility of cylinder testing and they are charging Rs 1,5002,000 depending on location of the showrooms. They are giving four to 10 days time for testing the cylinders in car models up to 2007-2008. On the other hand, HDIP is providing this facility at Rs 500 per cylinder. These authorized showrooms owners have also extended this facility to other c ar s o w n ers . I t i s be yo n d t he understanding that these authorised sh owrooms , who already charge exorbitant service and tuning charges, have found a new avenue of making money from the consumers. Currently many customers are not aware about the facility available at authorized showrooms but after knowing this and government’s strict action in case of non compliance the rush of customers will intensify which may result in time of delivery of cylinder and possible fee hike.

The government’s concerned departments have again started meeting with the CNG industry like importers and manufacturer of kits and car makers but the stakeholders are tight lipped over the outcome of the meetings which means that some kind of secret understanding has been reached between the government and CNG industry. However, on the other hand the efforts of the government to introduce LNG in the country are picking up pace which

also signals a bad omen for the CNG sector. The government is trying to replace CNG as a vehicle fuel with LPG primarily on the excuse of natural gas shortage for which, the industry people believe, an artificial shortage of gas was created in the winter by releasing natural gas to industries on a 12 months basis with whom SNGPL had a nine month supply agreement. This negative scenario for CNG is being created to promote the interest of LPG lobby without considering the safety or economic aspects of LPG as a vehicle fuel. Consumers are not using CNG for its environmental aspects but its cheap rates and better mileage lure the customers. LPG, after touching historic peak recently, is not feasible for the vehicle owners. The government, while aiming to promote LPG and LNG, is ignoring the livelihood of thousands of people associated with this industry directly and indirectly coupled with business investment of over Rs 100 billion, Rs two billion foreign investment, Rs 120 billion public investment (2.7 million vehicles), Rs 240 billion per annum revenue contribution and Rs 222 billion per annum saving in petrol. At least nine stakeholders (Landirenzo Pakistan and Italy, BRC Pakistan and Italy, Tesla Pakistan, all approved CNG importers, car manufacturers especially Pak Suzuki and Indus Motors, 3,600 CNG stations, authorised conversion centres and 50 local vendor industries). A CNG kit importer believes that scores of deaths had occurred because of cylinder blast in public transport and passenger vans mainly due to failure of the regulations (OGRA and HDIP) who did not bother to check non standard conversions by road side workshops. All vehicles blew up due to some spark or smoking in confined space where natural gas was leaking due to non standard conversion. None of the accidents were occurred due to failure of CNG cylinders. He said there will be no danger if proper components and installation procedures are used. Stakeholders seek immediate lifting of ban on OEM CNG conversion and OGRA must implement its regulatory framework to improve CNG conversions through licensed and authorised conversion centres......

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by Ali Hassan

Two Wheeler Industry - Exclusive Article

APMA favors Yamaha’s re-entry while PAMA, Honda, vendors accuse NTC for violating its mandate BoI, Yamaha officials absent from February 1 hearing The government should consider the request of Yamaha on the assurance that it will not go away from Pakistan as it had done three years back after remaining in the market for over three decades,” chairman (APMA) Sabir Shaikh says. The government departments, either over political affiliation or from other pressure, give extra incentives to the local and foreign investors which usually remain a secret move. This kind of hidden support sometimes gets exposed by the media or becomes visible during candid discussion with industry’s s ta k eh old ers o r s o met im es t he government department (by mistakenly) rev eal t he t rut h i n it s wri tten communication with the stakeholders. This has happened in the case of Yamaha (a leading Japanese bike maker) who wants to re-enter in Pakistan with open support of Board of Investment (BoI) and National Tariff Commission (NTC). Any popular government after assuming power always tries to bring improvement in the country by luring foreign investors besides looking forward to see new investment by local businessmen but it all depends on political and economic co n dit ion s of t he c ou n try. Bu t government departments break all barriers of their official mandate and make efforts for their own interest to facilitate the new investors. For the past one year, existing bike m ak ers m ain ly H o n da a n d t he government departments especially the Board of Investment (BoI) have been engaged in war of words since a Japanese bike giant Yamaha has shown its intention for investing $150 million in a new plant in Karachi for making

two wheelers at par with models running on the roads of various countries including India.

BOI had recently made a presentation in the Cabinet Committee On Investment (CCOI) meeting and stated that BoI strongly feels that new investment in motorcycle industry needs to be encouraged through reducing the present prevailing duty to 15 per cent on CKD parts to five per cent as an incentive for new investment in Pakistan for five years from the start of production. A leading Japanese bike maker (Honda), Pakistan Automotive Manufacturers Association (PAMA) and vendors have already locked horns against the BoI

an d N TC’s effo rt t o bring new investment in bike segment mainly. PAMA has already informed the BoI that Yamaha is not a new entrant because they have closed their operations in Pakistan in the year 2008 after spending 35 years here. NTC held a public hearing on February 1, 2012 with the stakeholders with reference to a study aimed at providing protection to the local in dus try, including any incentive to new entrants and to consider request of Yamaha. However, the NTC hearing turned hostile when stakeholders blamed the Commission for violating its mandate to justify undue favor to one bike assembler (Yamaha) over 60 bike assemblers. They said how NTC could do this when its role is to facilitate the local industry but the Commission is forcing the existing players for a complete audit on the push of foreign player pressure. Officials of NTC admitted during the meeting that th e a udit of local motorcycle industry is being done on the request of Board of Investment (BoI) to facilitate Yamaha. NTC had also asked the participants to provide details of cost of production along with their audited accounts and tariff related problems. Surprisingly, NTC sounds a note of caution to the assemblers that in case the Commission does not receive the

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Two Wheeler Industry - Exclusive Article

In case the government provides any incentive to Yamaha under new entrant policy than the existing Chinese bike makers will close down their units and re-enter Pakistan with a new name to get the tariff protection. data and required information then it would proceed on the basis of data available to it which may not be in favour or contrary to assemblers` interest. However, chairman of representative body of Chinese bike assemblers, Association of Pakistan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh, who did not attend the meeting, told Automark Magazine that three kinds of stakeholders in two wheeler segment exist in the country. One is dominated by Atlas Honda, the maker of CD-70 bikes and secondly its huge vendors while third are the Chinese bike assemblers whose voice is usually not heard at the capital or in any policy making due to pressure of a leading Japanese bike maker. Amid the tussle between Chinese and Japanese assemblers bike, the maker of Yamaha bike wants to take plunge in Pakistani market with a renewed vigor, he added.

70cc bike in view of new engine s tan dards prevailin g wo rldw ide. Sabir said that the production of 70 cc bikes have been closed down in most of the countries as both 50-70cc bikes are considered as ladies bike while in Pakistan situation is totally reverse as out of 1.6 million bikes sale per annum the share of 70cc bike is estimated at 1.45 million units a year, while 150,0002 0 0 , 00 0 a r e 1 0 0 -1 5 0 cc bi k es . He said 70cc bikes are not suitable for heavy weight persons as it creates problems of backache but in Pakistan the 70cc bikes sales are going strong. Women are not allowed to ride the bike otherwise 70cc can prove a good transport option for ladies. However, one should also ignore the sharp increase in petroleum product prices especially in the PPP coalition government in the last four years

Sabir claims that what is harm if Yamaha wants to reinvest in Pakistan with a claim that it will produce most modern bikes as being produced in other parts of the world. He said there is no problem if the government allows Yamaha to bring new investment and gives incentive to clear the 100 per cent CKD kits at the rate of five per cent.

“The government should consider the request of Yamaha on the assurance that it will not go away from Pakistan as it had done three years back after remaining in the market for over three decades,” he added. He said actually the maker of Honda is behind in creating a fuss over the Yamaha re-entrance as Honda is a main player in the Pakistani market in 70cc segment. On the other hand, Yamaha intends to introduce new heavier engine capacity bikes with the fuel efficiency of

They said how NTC could do this when its role is to facilitate the local industry but the Commission is forcing the existing players for a complete audit on the push of foreign player pressure. Officials of NTC admitted during the meeting that the audit of local motorcycle industry is being done on the request of Board of Investment (BoI) to facilitate Yamaha.

coupled with rising cases of bike jack up and snatching on gun point which many times took the lives of persons. When people are losing their life on resisting any bike snatching move then who can assure the safety for women riding a bike in a society where street crimes and law and order situation are deteriorating. The heavy bikes sales in Pakistan are laggard as many people do prefer to have big engine capacity but could not purchase them due to high petrol price w hich is almos t Rs 10 0 a litre.

However it is interesting to note that both BOI and Yamaha, the main characters behind favoring Yamaha, stayed away from the February 1 hearing as the Chairman BOI had proceeded abroad while representatives from Yamaha also didn’t turn up. According to a print media report, Director General NTC Suhail Ahmed plainly admitted that a new study of tariff evaluation is being conducted by the Commission on the request of BoI to entertain and accommodate M/s Yamaha as a new entrant in the local bike industry. A local vendor questioned the NTC officials as to how can the Commission even initiate to facilitate M/s Yamaha which is not even a “new entrant”, he said adding the NTC Act clearly states in section 4 that: The function of the Commission shall be to advise the Government on tariff measures or other form of assistance for, providing protection to the indigenous industry, improving its competitiveness or promoting exports from Pakistan. Whereas the current move is to support M/s Yamaha which will not use the local engineering industry for parts and will assemble the categories which local industry is already producing and looking for exports market. Razi ur Rahman, General Manager Corporate Affairs of Atlas Honda Limited, in the meeting, asked the NTC that it should instead make efforts to

Monthly Automark Magazine | February-2012 | Page 14

Two Wheeler Industry - Exclusive Article

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Illegal removal of goods 97 auto parts importers identified by MCC A total of 97 auto parts importers have been found involved in illegal removal of goods from M/s. Pakistan Shaheen, off Dock Container Terminal Karachi by the Model Customs Collectorate (MCC) of (Appraisement), Customs House, Karachi. The "unscrupulous importers" have been identified following scrutiny of relevant data by the MCC. Omar Shafique, Deputy Collector, MCC of Appraisement in a letter sent to the Additional Collector - IV, MCC of Appraisement on December 17, 2011, has requested that all the respective examination and assessment sections be directed to properly scrutinise the relevant import documents and the consignments imported by any of these importers. Further, amendments/cancellations of the Goods Declaration and the manifest pertaining to these importers may also be intimated to him. A list of the importers has also been attached. Influential among these importers who are facing proceedings for their black listing are reportedly pressurising the customs officers to withdraw the letter against them. Sources in Pakistan Customs, however, confirmed that despite pressure the list of 97 suspended importers has been circulated by higher customs authorities

to in all the relevant sections and departments of Pakistan Customs with the directives for strict compliance. A customs official, on condition of anonymity said though "Pakistan customs officials are facing a lot of pressure from the suspended importers to withdraw the letter against them, a firm stand has been taken by the officials to curb the illegal activities of misdeclaration and under-invoicing of imported auto parts." Stakeholders have appreciated the efforts of Pakistan Customs in not giving up investigations. The official further pointed out that MCC found major illegal movement of goods f ro m d o c k s w i t h ou t a n y le g a l documentation and procedure such as mis-declaration of weight during the import of goods from different countries. Stakeholders explained that stealing weight of auto parts cause major duty reduction by not following SRO 329 and clear goods at their true weight. These consignments are cleared in units either or shown less weight of each part at customs to save duty and taxes at actual. "Declaring goods specification in wrong way also fall goods in different PTC which saves additional duty/antidumping duty." This has hit local industries of auto parts manufacturers badly as well as caused major revenue loss to national exchequer, they said.

Representatives of Pakistan Association of Automotive Pa rts Accessories Manufacturers (PAAPAM) and Pakistan Automotive Manufacturers Association (P AMA) h ave alrea dy info rmed concerned authorities about these illegal activities of mis-declaration and underinvoicing. These illegal activities were a threat for local industry and cause of huge loss of rev en ue t o n atio n al ex ch equer. They commended Pakistan Customs'' action against a lobby that according to them is into spoiling local industries and scaring foreign investors. They demanded to penalise all these importers involved in illegal activities and ban them by their NTN numbers instead of importer''s name. "A strict action is needed against all these traders involved in illegal activities so that they should not be able to register a new company which may cause major damages to the society and revenue," they said. They were confident that Pakistan Customs would ensure strict vigilance to curb these illegal activities on permanent basis. They also suggested taking on board the association of part makers and car p ro du c ers w ho co u ld h elp t h e government in scrutinising these culprits and recover actual duties and taxes from them.....

implement the agreed five-year tariff plan under Auto Industry Development Program (AIDP) that was submitted to the Govern ment by the Pakistan Automotive Manufacturers Association (PAMA) and Pakistan Auto Parts and Accessories Manufacturers Association PAPAAM before last budget. He added it was an agreed plan between th e a s s o ci a ti o n s o f lo ca l a u to manufacturers and their vendors which covered stakes of almost all the players including keeping consumers’ interest supreme, but this five year tariff plan has not been implemented yet and the Commission has started another tariff study on pressure that is sad indeed. Convenor two-wheeler committee and managing committee member PAAPAM

Arshad Ameen Awan said the maker of Yamaha bike in its application to the government had claimed to provide 150cc bike at Rs 77,000 or Rs 20,000 less than the same models being produced by two Japanese bike makers at R s 9 3 ,50 0 an d R s 1 1 5, 00 0. He said Yamaha is deceiving the Government by claiming itself ‘New Entrant” status besides seeking cut in import duty on completely knocked down (CKD) kits to five from 15 per cent. However, the maker of Yamaha after remaining in Pakistan market for over three decades had packed up its operation but Dawood Yamaha Limited (DYL) is still producing Yamaha bikes of different categories. By seeking cut in CKD kits, the company

also claims to bear Rs 8,000 loss per bike for at least eight years which is surprising, he added. “In case the government provides any incentive to Yamaha under new entrant policy than the existing Chinese bike makers will close down their units and re-enter Pakistan with a new name to get the tariff protection,” he feared. He urged the government to avoid creating a techn ical flaw w hos e repercussions would be devastative for the huge investment of local industry and their vendors. He added that there is no need to facilitate a re-entrant rather than a new entrant as localization of parts in existing bike has crossed over 90 per cent....

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Automotive Sector - Update

Motorcycle, car production increases The production of motorcycles increased by 10.65 percent during the first five months of the current fiscal year as against the same period of last year. As many as 692,368 motorcycles were produced during July-November (201112) as against the production of 625,742 units during July-November (2010-11), according to Pakistan Bureau of Statistics (PBS) figures. The motorcycle production witnessed increase of 0.77 percent during the month of November 2011 as compared to the production of the same month of last year. Motorcycle production during November 2011 was recorded at 135,302 units against the production of 134,266 u n i t s d u ri n g N o v e m b er 2 0 1 1 . On the other hand the production of jeeps and cars increased by 8.70 percent during July-November (2011-12) as compared to the same period of last year. Production of jeeps and cars stood at 59,588 units during the first five months of the current year as against the production of 54,820 units during the corresponding period of last year, the data revealed.

The production of jeeps and cars, however, decreased from 10,559 units in November 2010 to 10030 units in November 2011, showing decline of 5.01 percent. The production of lig ht commercial vehicles (LCVs) increased from 7,362 units in 2010-11 to 7630 units during 2011-12, showing increase of 3.64 percent. However, during November 2011, the LCVs production decreased by 26.33 percent as compared to the same month of last year. The LCVs production during November 2011 stood at 1,259 units against the production of 1,709 units during November 2010. On the other hand, the production of tractors, trucks and buses decreased by 52.90 percent, 29.31 percent and 10.68 percent during July-November (2011-12) as against the corresponding period of last year. During the month of November 2011, the production of tractors, trucks and busses decreased by 9.40 percent, 6.29 percent and 2.04 percent respectively when compared to the production of November 2010, the data revealed....

Request Motorcycle dealers demand cut in turnover tax The Lahore Chamber of Commerce and Industry (LCCI) has asked the Federal Board of Revenue (FBR) to reduce the rate of turnover tax on motorcycle dealers from one per cent to 0.2 per cent. LCCI President Irfan Qaiser Sheikh made the demand after holding a meeting with a five-member delegation of the Motorcycle Dealers Association. Sheikh said the demand of motorcycle dealers was justified as their profit

margin in the context of turnover ranged from 0.50% to 1% and normal tax on profit would in any case be lower than 1% of the turnover. But, he added, the dealers were legally bound to pay 1% turnover tax, which was neither prudent nor sustainable. “How can motorcycle dealers survive when they give their little profit to the FBR in the shape of turnover tax,” he asked...

Car rates likely to go up as input cost surges by 4.7pc The unabated surge in input costs of different commodities is mounting pressure on manufacturing sector to push up the prices of their products, auto manufacturers stated. The automobile makers are going to increase the rates of cars and light commercial vehicles due to rising prices of locally manufactured spare parts, inflated petroleum prices, hike in electricity tariff and soaring expense on imported CKD kits. As per the figures provided by the manufacturers, a steep hike witnessed in vendors’ cost on producing spare parts by 4.7 percent and more hikes is expected in the cost after fresh increase in petroleum products prices by Rs5-6 per liter on diesel and petrol. The auto manufacturing sector is worst hit by the inflation as it is under pressure from foreign currency appreciation, utility prices as well as from the vendors’ side who are feeling similar heat. Experts said that the local automobile makers are likely to pass on the impact of rising cost of production to customers with surge in the prices of cars and light commercial vehicles.a The petrol and diesel prices were recently increased by 15.8 percent and 8.9 percent per liter in the period JulDec 2011. Similarly, the prices saw increase on various raw materials including plastic, paints and light engineering products. The imported CKD parts are up by 3 percent in past three month on the disparity of rupee against US Dollar by 2.5 percent and 5 percent on Japanese Yen. Moreover, industry is forced to use expensive diesel for power generation in the absence of KESC & gas load shedding. Government has already announced a 3 percent increase in electricity tariff in the past couple of months which is adding up to the woes of industry. Automobile makers claimed that they have already absorbed the increase in aggregated production cost, thanks to localization of automobile sector; otherwise, the cost would have increased more on different brands of cars.

Monthly Automark Magazine | February-2012 | Page 16

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Rastgar & Co. Press Release

Gardner Denver To Expand CompAir in Pakistan

Gardner Denver , the giant multinational leader of the compressor and pump field is committed to continue to support sales and service of its CompAir Brand Air Compressors in Pakistan, stated Colin Fountain, Managing Director, Gardner Denver FZE, while visiting Karachi today. CompAir continues to be a market leader in the air compressor market of Pakistan, through its excellent service, spare and support through out Pakistan with thousand of satisfied customers across the country and Gardner Denver is set to expand the range of services provided in Pakistan. Gardner Denver, founded in 1859, is a global manufacturer of industrial compressors, blowers, pumps, loading arms and fuel systems. The Company has 40 manufacturing facilities located in the Americas, EMEA and Asia Pacific with offices in 36 different countries. 2010 Revenues were $1.9 billion dollars with approximately 66% of that revenue coming from outside of the United States. The Company believes its major products are leaders within the industries it serves. CompAir is the latest addition to the Gardner Denver portfolio and its highly successful Brand and Product line is being independently promoted by Gardner Denver with the association of it local Distributor, Rastgar & Co who have excelled in customer service and helped their industrial customers with reliable compressed air supply at most economical costs. CompAir is a leading global supplier, providing high performance and low operating cost compressors and a n cillar ies fo r a bro ad ra ng e o f a pp lica tio ns . With an extensive network of dedicated sales companies and distributors across all continents, CompAir offers global expertise with a truly local service capability, ensuring our advanced technology is backed up with full support. CompAir’s break-through technologies, such as Quantima and Q-life, are also helping customers achieve sustainability targets, with energy efficient and oil free compressors offering lower environmental impact. For a complete range of world class rotary screw, piston, centrifugal and vane compressors, including high-pressure, oil-free and portable models, CompAir has the innovative answer to your compressed air and gas needs, today.... Automark Magazine | February-2012 | Page 17

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Two Wheeler Sector - Exclusive Article

by Ali Hassan


FBR issues IT, ST audit notices to SME bike makers, dealers Sabir said that not only FBR and RTO, every government departments like Excise and Taxation, Engineering Development Board (EDB), Pakistan Standard and Quality Control Authority (PSQCA), Trade Marks etc have been on the tail of small bike makers.

Like pas t years ’ practice, s ome government departments create hurdles few months ahead of new budget announcement for some industries by sending audit notices for sales tax and income tax purpose. This kind of exercise undertaken by the government departments are basically aimed at putting up extra pressure on the small industries and trade related people to grab money otherwise non cooperation with the government departments may result in harsh measures like rejecting the businessmen pre-budget proposals and suggestions and taking measures in the budget that could create problems for the whole year. On many occasions old cases are opened for the most vocal chairman and president of any association which the government feels that the person has only been targeting the government’s policies in every forum. Sometimes, a powerful lobby or a rival group, influences the government in creating hurdles for the rival manufacturers of same make. Chairman Association of Pakistan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh says that the RTO of Federal Board of Revenue (FBR), either on the dictation of a leading bike maker or some other

reasons, has made him the victim by issuing audit notices with reference to income tax and sales tax. But he claims that some other Chinese bike dealers have also received sales tax audit notices ahead of new budget. Commissioner Inland Revenue Zone IV RTO Karachi on January 31, 2012 has issued a notice informing the owner of Sitara Auto Impex (Mohammad Sabir Shaikh) of selection for audit Under Section 177 on th e In come T ax Ordinance 2001 – Read with Section 214C of the Ordinance – Tax Year 2010. Deputy Commissioner Inland Revenue Audit Unit-06 M. Aslam Jamro has been assigned to conduct the audit and the owner of Sitara Auto Impex has been asked to co-operate with the concerned officer for fulfilling the process as early as possible. APMA chairman has also received another notice from the same department for audit Under Section 25 of the Sales Tax Act 1990 and Section 46 of the Federal Exercise Act 2005 read with Section 72B of the Acts for the period July 2009 to June 2010. Sabir Shaikh challenges the issuance of audit notice for income tax, sales tax and excise by saying that Section 214C of the Ordinance says that “Selection for audit by the Board. –(I) The Board may select persons or classes of persons for audit of Income Tax affairs through computer ballot which may be random

or parametric as the Board may deem fit.” He said the RTO has n ot provided th e copies of computer ba llot ing which shows the intention of the RTO for u n n e c e s s a r y M. Sabir Shaikh Chairman, APMA cropping up problems for bike industries. In another development the Office of the Deputy Commissioner Inland Revenue Audit Unit -06 Zone IV RTO has informed Sabir Shaikh on February 6, 2012 that with reference to the selection for the audit of income tax affairs he was requested to furnish the following details and documents by February 14, 2012. Details of party wise and item wise sale of motor vehicle as per following format of different categories motor vehicles besides furnish sales register of each category of product sold. The information required are name of buyer, CNIC/NTN and address of buyer, item sold, price listed, commission amount, mode of payment and date of booking. In another requirement, the department seeks details of party wise item and item wise sale – spare parts of motor vehicle as per format like name of buyer, CNIC/NTN of buyer, item sold, price, commission amount, mode of payment and date of booking. The third detail pertains to name of the insurance company and total payments received as part of services rendered for maintenance of motor vehicles for the tax year 2010. The RTO seeks details of party wise purchase item (item wise) like name of supplier, item purchased, quantum of purchase s, outs tanding as o n 30.06.2010, payments made, tax

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Two Wheeler Sector - Exclusive Article deducted/deposited and outstanding as on 30.06.2010. R T O h a s a s k ed fo r de t ai ls o f inv ent ory/s to ck a lo ng wit h inventory/stock register (motor vehicles in show room and spare parts item wise). Details are also sought regarding ma nufact uring /tra ding ex pens es including all other operating expenses along with evidences. Under the seventh requirement, the manufacturer/dealer was asked to furn ish party w ise details/evidences of receivables on the format like (name, NTN and address of party, opening balance, debit, credit and closing balance). The RTO also seeks copy of statements U/S 149 of the Income Tax Ordinance 2001, copy of the audited accounts, Pro rata detail of PTR Income and Normal Income, Details/evidences of addition to fixed assets if any, copies of sales tax returns for the tax year 2010, copies of utility bills, copies of bank statements (along with reconciliations and sum of debit and credit entries) of all the accounts maintained, evidences/copies o f c h a lla n s re g a r di n g t h e t a x paid/deducted and complete books of accounts i.e. cash book, bank book, ledger, journal etc. The letter issued by Mohammad Aslam Jamro warned that “in case of no reply from Mr Sabir Shaikh within due date then appropriate action as per law will be taken accordingly.” On the above detailed audit notice, Sabir Shaikh that there are some technicalities which the RTO has ignored before issuing such notices. Under Income Tax Ordinance 2001, the Commissioner may, after recording reasons in writing call for record or documents including books of accounts of the tax payer and, the reason shall be communicated to the tax payer while calling record or documents including books of accounts of the tax payer. Meanwhile the Lahore Chamber of Commerce and Industry (LCCI) has asked the Federal Board of Revenue (FBR) to reduce the rate of turnover tax on motorcycle dealers from one per cent to 0.2 per cent. LCCI President Irfan Qaiser Sheikh

made the demand after holding a meeting with a five-member delegation of the Motorcycle Dealers Association. Sheikh said the demand of motorcycle dealers was justified as their profit margin in the context of turnover ranged from 0.50 to one per cent and normal tax on profit would in any case be lower than one per cent of the turnover. But, he added, the dealers were legally bound to pay one per cent turnover tax, which was neither prudent nor sustainable. “How can motorcycle dealers survive when they give their little profit to the FBR in the shape of turnover tax,” he asked.

Mohammad Sabir Shaikh said the government is creating bottlenecks for around 40 small and medium sized units whose annual production of bikes is 1,000-1,200 units as compared to 1,600 bikes per day production of Atlas Honda. It means that the one day turnover of Honda is equal to annual turnover of one SME bike maker. He again blamed a leading bike a s s e m b l er fo r p r e s s u ri n g t h e government departments to continue creating problems for the small bike as semblers at a t im e w hen the government and stakeholders are working on new auto policy following expiry of Tariff Based System (TBS). When the small bike assemblers become engage over lengthy documentation and audit procedure then they would not have any extra time to take part in prebudget deliberations on the auto sector. As a result, the government will make a policy that will suit the leading and big assemblers only. Sabir said that not only FBR and RTO, every government departments like Excise and Taxation, Engineering Development Board (EDB), Pakistan

Standard and Quality Control Authority (PSQCA), Trade Marks etc have been on the tail of small bike makers. He said the government is giving a step motherly treatment to many assemblers who have invested in new trade when a leading Japanese bike maker had already established as a market leader. He said he had worked as authorized agents for all major locally produced brands over the years but later realized that rising motorcycle prices were driving the potential buyers away from the market. This in turn was translating into decreasing sales and at times the things were so bad that it was hard even to meet the running expenses — not to mention profitability because dealers usually work strictly on commission only when they sell. This situation made me realize that the prices of locally assembled motorcycles amidst the protection accorded to it from imports vide prohibitive duties is the primarily reason for the downturn. I a ls o rea li ze d t h a t u n d er s u c h circumstances the prices would keep on increasing to have an adverse effect on the business due to shrinking purchasing power. He said at that time my aim along with other assemblers was to create a niche for low cost bikes besides development of vending industry and thanks to Al Mighty Allah our efforts bore fruits and now Chinese bikes are running side by side with Japanese brands. He claimed that the fact was we were n o t co mp et in g w it h t he m ajo r manufacturers who already enjoy a big chunk of the new motorcycle market. We are rather competing in the used motorcycle segment of the market. He said that on many occasions the Karachi and Hyderabad based assemblers faced much problems with concerned provincial department but in sharp contrast the assemblers in Punjab did not face any big issues with the provincial departments which we were unable to understand the different approach of the two provincial departments.....

Monthly Automark Magazine | February-2012 | Page 19

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Automotive Sector - Update

Import of older used cars to imperil domestic auto industry

The efforts of All Pakistan Motor Dealers Association (APMDA) to push its proposal for the trade policy 2011-2012 asking that up-to 10 years old used vehicles be allowed for commercial import, has caused a scare among the local domestic auto industry here. Pakistan Automotive Manu-facturers Association (PAMA) and Pakistan Association of Automotive Parts and Accessories Association (PAPAAM), who strongly oppose further liberalisation of the import of used automobiles fear that in case govern ment allowed th e proposal, "it could be highly detrimental for the local domestic auto industry." According to information available here the proposal is based on the premise that locally assembled cars are priced very high. APMDA's view is that in addition to existing schemes for the import of used vehicles like transfer off residence scheme, gift scheme and baggage scheme, the step of importing 10-year o ld ca rs wo uld be in lin e with government's policy of enhancing d ocumen tation of th e econ omy. They are also of the view that the import of used cars would be a ready answer to providing affordable cars to local consumers. They think that this would not only provide an environment of healthy competition but would also ensure a steady supply of quality and reasonably priced cars. PAMA officials had reportedly said that vested interest groups are behind the demand for commercial import of used vehicles an d a decision to allow commercial import of used vehicles would be fatal for local manufacturers.

PAMA believes that imported used cars would be in such a run down state that they would soon find their way to junkyards at the cost of country's second highest revenue paying industry, which is providing direct and indirect jobs to millions of people. Furthermore, the national exchequer would also suffer if further age relaxation for commercial import of used vehicles is allowed. As it is, the import of five-year-old cars is already causing embarrassment to the government, which had given this facility in order to make cheaper-priced cars available to consumers. Ironically, most of these used cars are priced at the rates of the brand new cars manufactured locally. Ground reality is that imported used cars currently flooding the local market have extremely high prices compared to their age. An imported five-year-old Suzuki Alto, for example, with an engine of 660cc, depending on its condition, is being sold in the local market at Rs 700,000 to Rs 750,000, whereas one could buy brand new locally produced 1000cc Alto at the same price. The cost of an used Daihatsu Mira 660cc is Rs 700,000, while a brand new Suzuki Mehran 800cc is available at Rs 550,000. Similarly, used models of Toyota Vitz and Passo 1000cc, the most imported brands, cost a little over Rs 1.1 million, w hile their locally manufactured corresponding vehicle, Suzuki Cultus 1000cc is being sold for Rs 950,000. The same is the case with the imported 1300cc Toyota Corolla/Fielder/Probox and 1800cc Premio that are available in the market for Rs 1,500,000 and Rs 2,500,000, respectively. Vehicles in the same category of 1300cc a n d 1 800 cc, pro duc ed by loca l manufacturers like Honda Civic and Toyota Corolla/Altis fall in the price range of Rs 1,450,000 to Rs 2,100,000. Local auto manufacturers estimate that import of used cars would cause immense damage to the local auto

industry and would also result in depletion of valuable foreign exchange through dumping of junk cars in the country. They emphasise that such cars are either almost at the end of their productive life or are not compatible with Pakistan conditions. Often the odometer of such used cars is reversed, using unscrupulous techniques to give false impression that the vehicle has done low mileage. There is also no after sales service and parts support for such vehicles with the result that the customer suffers. Local auto industry is agitating against, what it describes "absurd" new demand of the lobby that is pushing for import of 10-year old vehicles as it does not contribute to jobs or technology transfer and also evades taxes. " T h is l ob by is m is lea d in g t h e government towards falsely believing that the prices of locally produced cars are extremely high. The local cars manufacturers have already provided the government with authentic data to prove that the prices of cars produced in Pakistan are in fact lower than many other countries, including India and Thailand" auto industry sources said. If the government continues with further relaxation and allows commercial import of cars that are up to 10 years old, it may lead to closure of local auto manufacturing units and loss of jobs for more than two million people in the auto and allied engineering industries. It would also greatly harm consumers in the long run, as they would end up buying high priced junk cars with no spare parts and after sale service support an d hen ce low life, they said.....

Monthly Automark Magazine | February-2012 | Page 20

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Automotive Dealers - Address

Pak Suzuki Co. Ltd., Authorized delear list for Lahore/Islamabad/Rawalpindi M/s. Adil Zaffar Motors

M/s. Olympia Motors

M/s. Azim Motors

10 Km, Main Multan Road, Hanjarawal Opp. Canal View Housing Society, Lahore Tel: (042) 35421544, 35430336

31-D, Gulberg-II, Lahore Tel: (042) 37580010, 37570010

94-B, Street No. 7, I-10/3, Islamabad Tel: 051-4432259,4440303

M/s. Ali Jan Motors 21, Shahrah-e-Fatima Jinnah, Lahore Tel: (042) 36304273, 36312832

M/s. Ali Motors 26/1, Jail Road, Lahore Tel: (042) 37581502, 37530241-3

M/s. Khalid Motors 65, Link Ferozepur Road, Lahore Tel: (042) 37591572-3

M/s. Sethi Motors Shahrah-e-Fatima Jinnah, Lahore Tel:(042) 36371564-65, 36303850

M/s. Sethi Motors 60/L, Gulberg-III, Lahore Tel: (042) 111-161-618

M/s. Suzuki Islamabad Motors

M/s. Suzuki Motor House 57, The Mall, Lahore Tel: (042) 111-200-900, 37357646

M/s. Suzuki Ravi Motors

M/s. Mini Motors 54, Industrial Area, Gulberg-III, Lahore Tel: (042) 35873384, 35873197

M/s. Madni Motors 16-B, Jail Road, Lahore Tel: (042) 37581300, 37579900

M/s. Madni Motors 43-D, Block-N, Industrial Estate, Gulberg-II, Lahore Tel: (042) 35757422, 35752008

M/s. Master Motors Street No. 12, Iqbal Park, Near Main Gate Defence Society, Lahore Cantt. Tel: (042) 36304293, 36603481-83

M/s. Olympia Motors 37-A, Jail Road, Lahore Tel: (042) 35875050, 35873030

M/s. Federal Motors Plot No.8-Khayaban-e-Suharwardhy, Sector G-6-1/1, Islamabad Tel: 051-2876306-7, 2874092

182 Bund Road, Near (Batti Wala Chowk), Lahore Tel: (042) 37708808-9, 37705446

M/s. Suzuki Township Main PECO Road, Township, Lahore Tel: (042) 35843995–7

M/s. Suzuki Lahore Motors 15 Km, Multan Road, Lahore Tel: (042) 111-333-789

M/s. Suzuki Raiwind Motors 16 Km, Main Raiwind Road, Lahore Tel: (042) 35324195-96

M/s. Suzuki Cantt Motors Bedian Road, Lahore Tel: (042) 35749815-7

Plot No.376, I-9 Industrial Area, Islamabad Tel: 051-4434538,4434013

M/s. Central Motors 57-A, Bank Road, Rawalpindi Tel: 051-5519933,5564078

M/s. Chaudhry Motors H-24, Opp. St. Patrick’s School, Muree Road, Near Liaquat Bagh, Rawalpindi Tel: 051-4421431,4845853

M/s. Kazmi Corporation 147/1, Murree Road, Rawalpindi Tel: 051-5120609,5568591

M/s. Jan Motors 64/13, Bank Road, Rawalpindi Tel: 051-5567861,5564761

M/s. Suzuki Rawalpindi Motors D-Block, 6th Road, Rawalpindi Tel: 051-111-222-700

Monthly Automark Magazine | February-2012 | Page 22

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Automotive Sector - Update

Environmental conservation 'IMC, WWF-Pak committed to creating awareness' Pakistan seems to have embarked on a road for better environmental standards as thousands of people and hundreds of schools were lured to Indus Motor Company (IMC) and WWF-Pakistan Nature Carnival 2012 on last week of Jan a t P AF Mu s eu m, Ka ra c hi. Students from more than 150 schools, colleges and universities participated in the TSEP-2012 to showcase their green ideas for environmental conservation. The objective of this programme was to foster a sense of individual responsibility and accountability in the future generations of Pakistan towards nature conservation.

CEO, IMC Parvez Ghias said that IMC and WWF-Pakistan are committed to create awareness about environmental conservation among youth to safeguard the rapidly-polluting environment of th e c o un t ry s o th a t up co m in g generations could breathe in fresh air. "It is heartening and encouraging to see how these young students and teachers are engaged in environmental education to promote learning about critical environmental challenges of Pakistan," said Ghias while delivering his address as chief guest at the award distribution cerem ony o f th e co mpetition ....

Indus Motors raises prices by Rs. 50,000 Indus Motor Company (IMC) on Monday raised prices of Toyota Corolla and Daihatsu cars by Rs. 20,000-Rs. 50,000 Official spokesperson of IMC, Ali Asghar Jama li lin ked the price hike to devaluation of the rupee against foreign currencies mainly the Japanese yen making import of kits costlier, besides having adverse impact on the cost of production. The prices of Toyota Corolla XLI and GLi models had been raised by Rs. 20,000 and that of Toyota Altis and Daihatsu Cuore by Rs. 50,000 and Rs. 20,000, respectively. Ali said that the demand of Toyota cars remained brisk as buyers shifted towards Corolla owing to closure of Honda car plant from December 2011 till end of February 2012. He said the local car industry was now highly worried over the frequent increase in arrival of used cars and other vehicles. As many as 22,000-23,000 used cars and vehicles had landed in July-December 2011 as compared to just 6,000 overall units in the entire 2010. IMC had raised the prices on December 9, 2011 by 1.5 per cent. Pak Suzuki had last raised the prices on January 1, 2012 by 15,000-25,000 followed by Honda Atlas Cars by Rs20,000-30,000 on different models from January 6, 2012.

It is interesting to note that sales of locally assembled cars have been showing positive trend in the last six months despite sharp increase fuel prices and rising import of used cars. Rising home remittances during the period proved as an oxygen for boosting demand of locally-produced cars. The showrooms are now flooded with used cars and even the prospective buyers have developed interest in big cars like station wagons ranging between Rs750,000 to over Rs1 million mainly of Nissan and Toyota. Chief Executive TopLine Securities Mohammad Sohail said the sales of locally-produced cars may register a growth of at least five to 10 per cent this year on the possibility of strong rural buying as the government has increased the wheat support price to Rs. 1,050 from Rs. 950 per 40 kg. Cotton prices, which remained high in the last two yeas, were now witnessing a downward trend. He said there may be stability in overall economy as the Sta te Bank had predicted GDP growth rate at four per cent for the current fiscal year as compared to 2.5 per cent last year. However, imported cars were likely to arrive in larger numbers this year, he added....


Bomb Disposal 15- 99212667 Fire Brigade 16- 99215007-8 Edhi 115_32310066-77 Khidmat-e-Khalq Foundation 36333811 Red Crescent 35833973 Governor’s House 136 Chief Minister’s House 99202051 Motorway Police 130 HOSPITALS Abbasi Shaheed 9260400-09 Civil 99215749-99215960 Jinnah 99201300-39 Nicvd 99201271-6 Aga Khan 34930051 Tabba 36811841-50 BLOOD BANK Hussani Fatimid Pwa

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COMPLAINT Kesc Ptcl Kw&Sb Cdgk Sui Gas

118 1218 1339 134 1199-99231603 RAILWAYS

Inquiry City Station Cantt Station

117-99213565-6 99213538 99201118 AIRPORT

Flight Inquiry PIA Reservation

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Karachi University 9921300-06 NED University 99261261-8 Fuuast 992157501-3 Fast-Nu 111128128-34100541-7 Szabist 111922478 Iobm 35090961-7 Iba 111422422 Ivs 35861039-40

Monthly Automark Magazine | February-2012 | Page 27

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Automotive Sector - Update

Auto Industry Development Programme

Auto industry seeks government assurance on consistent policies AIDP to expire in June 2012 industry believes a new policy is critical for its growth Auto Industry of the country has demanded from the government that similar to Auto Industry Development Programme (AIDP), which is to expire in June 2012, a new long term consistent policy is critical for the industry’s growth to restore investors’ confidence and save th e fo reig n ex ch an g e a n d earn substantial revenues. In a presentation, the auto industry has stated that the industry is generating substantial govern ment revenues contributing s ig nificantly to the country’s gross domestic product (GDP) and saving a huge foreign exchange by import substitution through localisation of the parts through tran sfer of technology to vendors. A consistent long term policy for the auto industry will create more in vestment and job opportunities in the industry which already has an investment of over Rs 92 billion and giving employment to 0.4 million people directly. More importantly, a better policy is meant for addressing the issues like most liberalised used cars imports policy in the region , proposal on tariff rationalisation, under invoicing, misdeclaration in auto parts imports and limited consultation with Original Equipment Manufacturers (OEMs) on free trade agreements, etc, which are badly hurting the industry. Localisation is the key factor meant for progress and growth of the national economy, however, tariff reduction and used car imports are two major issues of the local manufacturers that must be considered prior to formulation of any policy. Any reduction in duty structure will ma ke lo ca l n a sc en t in du st ry uncompetitive, which will lead to complete collapse of the industry, therefore, causing more unemployment.

Similarly, the government should monitor the misuse of used car policy. Some changes in the policy is required like registration should remain in importers’ name for at least 2 years, while the policy should be reverted back to 3 years and 1 percent depreciation with maximum depreciation cap of 36 percent to discourage abuse of the policy. According to some facts in this regard, the used cars importer enjoy 60 percent depreciation allowance while in India the basic duty on used cars is 100 percent with some additional duties and taxes of 32 percent. “Although there is a very short term benefit in the imports of used cars in the country but on the long term basis this policy is against the national interest and we should understand what national interest in the import of used cars is,” said Munir K Bana, Vice Chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM). It is pertinent to mention that the used cars imports are expected to exceed 40,000 in 2011-12 that is 25 percent of the total industry volume for 2010-11. “The policy of used cars offers very little employment opportunities and there is no possibility of technology transfer. On the other hand, the local auto industry had employed over 400,000 and

technology transfer to OEMs, vendors and dealers,” said a vendor, Muhammad Ashraf Shaikh, adding that flight of capital from the country is a serious issue in the import of used cars policy mainly at the time when the local currency is already under pressure and government earns very little revenue. Shaikh M Aslam, Secretary PAAPAM, while pointing out one very important factor said that frequent shift in policies on the part of the government along with security risks and high input costs have been conducive for incessant decline in the Foreign Direct Investment (FDI) in the country. “There is only a short term benefit in car imports and trading with very little employment generation, in fact the government will lose millions of rupees of its revenue and foreign exchange in the long term in spare parts also as there are no arrangements for technology transfer to the local industry,” he added. “This shift in policies related to auto sector is evident from the decisions of ECC that has allowed the import of fiveyear old used cars, allowed depreciation allowance raise from 50 to 60 percent, and considers allowing new entrants on much relaxed policy,” said Shaikh. This was also admitted by the Board of Investment (BoI), while giving a briefing to t he Ec on om ic Co-o rdin a tion Committee (ECC) of the cabinet recently that frequent changes in policy are scaring the investors away from Pakistan....

Monthly Automark Magazine | February-2012 | Page 28

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Engineering Industry - New in Brief

PC decides to accelerate PPL SPO process The Board of Privatisation Commission met under the chairmanship of the Federal Minister for Privatisation Mr. Ghous Bux Khan Mahar discussed the t im e t a ble fo r C a p ita l M a rk et Transaction, the Secondary Public Offering (SPO) of Pakistan Petroleum Limited (PPL) and decided to accelerate the process. The PC Board was updated regarding the transaction. A six member Transaction Committee, which is in the process of finalizing the Secondary Public Offering (SPO) of Pakistan Petroleum Limited (PPL) is headed by a senior PC board member Mr. Iftikhar ul Haq with Mr. Mahmood Nawaz Shah, Mr. Farid Malik PC Board members , the FederalSecretaries Petroleum & Natural Res ources, Privatisation, Finance, Chairman SECP and MD PPL as its members. T he meetin g a ls o review ed t he re co m m en d a t io n s fo r th e pr equalification of the prospective bidders of the Transaction Committee of

TSML signs MoU with POSCO Tuwairqi Steel Mills Limited (TSML) and POSCO Eng ineering inked a Memorandum of Understanding (MoU) to promote local engineering services and infrastructure development in Pakistan. POSCO Engineering Vice-President Lee Geun Ha and Director Projects TSML Za ig ha m Ad il R izvi s ig n ed t he agreement, which will see the two companies work in collaboration on a number of large-scale engineering projects. Geun Ha said, “By sign in g t his agreement, we are optimistically looking forward to a collaboration that bears great results. We recognize the potential of growth in Pakistan and through our mutual efforts, we will undertake infrastructure projects where POSCO will offer complete technical supervision and commissioning support.” The MoU sets up an alliance between POSCO Engineering and TSML-Engineering to meet the requirements of the relevant up com ing p roject s in Pak ist an . POSCO Engineering will provide the necessary technical supervision and commissioning support to TSML.

National Power Construction Company (NPCC) and pre-qualified five potential parties for participation in the due diligence/bidding process. A number of tencompanies submitted Expression of Interest for the transaction at the initial stage. The pre-qualified parties include three Saudi, one Korean and one Pakistani company i.e. Saudi Cable Company, KSA, Mansour Al Mosaid Co, KSA, Durat Al Masana Est. for Trade, KSA, GS Engineering & Construction Corp, Korea and Consortium of Fatima Trading Company (Pvt) Ltd, Fatima Sugar & Pakarab Fertilizer, Pakistan. While addressing the meeting Mr. Ghous Bux Khan Ma har Federal Minister for Privatisation directed the PC to exercise utmost transparency at every phase of the privatisation process of Public Sector Entities for their value addition and to associate all stakeholders for their complete satisfaction in an open and fair manner....

Mandviwalla visits Japan to attract foreign investments Saleem H. Mandviwalla, Minister of State, Chairman, Board of investment, Islamabad proceeded to Japan and would visit South Korea to step-up efforts to attract foreign investment and to highlight investment opportunities available in Pakistan. During Saleem H. Mandviwalla’s visit, he has to participate in the meetings been arranged with Japanese companies / organizations i.e. M/s. Yamaha, Tokyo, M/s. Mtg Marubeni Corporation, Tokyo, M/s. Toyota Motors, Tokyo and Sasaki, Vice president, JICA and will remain with BOI Trainees officers in JICA, Japan for checking their performance and presentations at JICA, Office. Moreover, during stay at South Korea, Seoul the MOS / Chairman, BOI will visit to M/s CRX Solar, M/s POSCO St eel & POSCO (En g in eering & Construction company). He also likely to visit M/s K-Water Resources Corporation and M/s Lottee Group Seoul, Korea to discuss the investment opportunities available in Pakistan & induced them to make more and more investment in Pakistan in the relevant sectors...

Siemens posts profit of Rs38.45 million The Siemens (Pakistan) Engineering Company Limited has posted a profitafter-tax of Rs38.45 million for the quarter ended on December 31, 2011, which is 158 percen t lower than Rs206.30 earned in the same quarter last year. This translated into an earning per share of Rs4.66 against Rs25.02 in 2010, according to the company’s profit and loss accounts available with the Karachi Stock Exchange on Tuesday. One of the reasons for drastic decline in the profitafter-tax is 21 percent fall in the company’s net sales to Rs3.46 billion from Rs4.38 billion in 2010. On the contrary, the cost of sales and service consumed 89 percent, or Rs3.09 billion, of the total sale receipts against 83 percent, or Rs3.64 billion, of the total sales in 201 0, accordin g to the company’s accounts....

Seminar on 'Investment Opportunities in Pakistan' held in Thailand

A seminar organised by the Embassy of Pakistan in Thailand in collaboration with Board of Investment (BO I), I slam abad titled "In ves tmen t Opportunities in Pakistan" and 'BOI Fair 2012' held from January 5-20, 2012 at Bangkok, Pakistan Ambassador Sohail Mahmood informed that infrastructure projects in Pakistan worth $4 billion (Bt126.6 billion), as well as sectors such as power plan ts , food and jewellery, were attractive for Thai investors, who could use the country as a corridor to penetrate South Asia and the Middle East. Mahmood said he would like Thai investors to recognise Pakistan as a potential location for expanding their markets. He described Pakistan as the gateway to the Middle East and South Asian countries, adding that ther e are a number of Thai investors already reaping huge dividends in Pakistan. According to Pakistan's Infrastructure Project Development Facility (IPDF) the country invests about $37 billion per annum in n ew infrastructure.-PR

Monthly Automark | January-2011 | Page 33

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By Omar Rashdi-Associate Engineer Pakistan Motors - Karachi

Technology - Exclusive Article

Piston Rings There are various types of ring joints used in automobile engines. Also it is made with different materials like cast iron, high strength iron, high grade grey iron castings and different coatings. It uses the latest materials and coatings available to keep pace with the growing trends in engine technology

Piston Ring! It’s very small part of the engine that fits into the grooves of the piston in an internal combustion engine or steam engine. It seems a very small thing but w e can not ignore its importance in the engine. It has some great jobs to do which helps engine to increase its performance, efficiency and durability. The principal function of the piston rings is to form a seal between the combustion chamber and the crankcase of the engine. The goal is to prevent combustion gases from passing into the crankcase and oil from passing i n to t h e c o mb us t io n c h am b er. There are various types of ring joints used in automobile engines. Also it is made with different materials like cast iron, high strength iron, high grade grey iron castings and different coatings. It uses the latest materials and coatings available to keep pace with the growing trends in engine technology. It is for resistance to wear and scuffing, and faster seating. Materials are used for high strength and excellent fatigue resistance which allows uniform unit wall pressure and efficient oil and compression control for longer life. The Piston ring is a split ring that was invented by John Ramsbottom who reported the benefits to the Institution of Mechanical Engineers in 1854. The

use of piston rings at once significantly reduced the frictional resistance, the leakage of steam, and the mass of the piston, leading to significant increases in power and efficiency and longer maintenance intervals. In the most Automotive engines, piston has three rings; the two top rings control compression called compression rings. During the compression and power strokes, the compression ring seals the combustion gases and prevents blowby. The lower ring controls the supply of oil to the liner which lubricates the piston skirt and the compression rings called oil control rings. The second compression ring is also called scraper ring because it scraps the oil in the block cylinder which is supplied by oil ring. In some diesel engines which have a great deal of high compression, use three compression rings which can hold the high pressure of air during compressing and high combustion at the time of combustion.

Function of Piston Ring Top Compression Ring The top compression ring is sited in the first ring groove and it has the major purpose of sealing the combustion gases. It is also the means by which heat is transferred from the piston to the piston walls.

the connecting rod bearing throw-off. The rings scrape the cylin de r wal ls returning the scraped o il ba c k t o t h e crankcase. Oil control rings cannot let oil pass between the face of the ring and the cylinder through the ring gap or pass behind the ring. Rings are not a very expensive part, but fitting new ones is usually very costly. This is because to fit them, the mechanic must essentially take the whole engine apart. Therefore the labor costs are the major factor. Once going that far, one might as well correct many other problems found inside - so fitting new rings is usually done as part of an entire engine overhauling. During engine assembly, a piston-ring compressor is used to evenly squeeze the rings long enough to slide the piston into the cylinder. Quotation: - Albert Einstein Not everything that can be counted counts, and not everything that counts can be counted.

Second Ring The ring provides a dual purpose. The second compression ring assists the top compression ring in sealing and heat transfer. It is also used in oil control by shearing the layer of oil left by the oil ring so the top compression ring has enough lubrication.

Oil Control Ring The oil control ring controls the oil that is splashed onto the cylinder walls from

Monthly Automark Magazine | February-2012 | Page 34

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Alternative Energy - Exclusive Article

by Muhammad Yakoob Gaziani

Alternate Energy Solution (Wind Turbines Part I)

Wind Electricity Basics Small wind-electric systems can provide electricity on remote, off-grid sites, or right in town connected to the utility grid (Transmission / Distribution lines). Although wind systems require more maintenance and need more attention than solar-electric or micro-hydroelectric systems, if you invest up front in g ood equipmen t, design, an d installation, wind-electric systems can make economic and environmental sense. They also bring a great deal of satisfaction—there’s nothing quite like watching your wind generator convert a summer breeze or a winter storm into electrical energy.

How It Works A wind generator’s rotating blades convert the wind’s kinetic energy into rotational momentum in a shaft. The rotating shaft turns an alternator (Electricity generator), which makes electricity. T his electricit y is transmitted through wiring down the tower to its end use. The blades use engineered airfoils, matched to the alternator, that capture the wind’s energy. Most modern wind generators use three blades, the best compromise between the highest efficiency possible (one blade) and the balance that comes with multiple blades. Together, the

blades and the hub they are attached to are termed the rotor, which is the collector of the system, intercepting winds that pass by. In most small-scale designs, the rotor is connected directly to the shaft of a permanent magnet alternator, which creates voltage with variations, threephase AC., the varying three-phase electricity means that the voltage and frequency vary continuously with the wind speed. They are not fixed like the 50 Hz, 220V AC electricity coming out of common household outlets. The varying output is rectified to DC to either charge batteries or feed a g ridsynchronous inverter. In most designs (up to 15 KW in peak capacity), the rotor is usually connected directly to the alternator, w hich elimina tes the additional maintenance of gears. In systems 20 KW and larger, as well as some smaller wind systems, a gearbox is used to increase alternator speed from a slower turning rotor. The blades must turn to face the wind, so a yaw bearing is needed, allowing the wind turbine to track the winds as they shift direction. The tail directs the rotor into the wind. Some sort of governing system limits the rotor rpm as well as generator output to protect the turbine fro m h ig h w in d s . A s hu t do w n mechanism is also useful to stop the machine when necessary, such as during an extreme storm, when you do not need the energy, or when you want to service the system.

How Wind Turbines are Rated

Wind turbine rating is a tricky affair. While solar-electric module or microhydro-electric turbine production can be predicted Muhammad fairly realistically Yakoob Gaziani bas ed o n rat ed output, this number is very misleading with wind turbines. Why? Because rated output is hook to a particular wind speed, and different manufacturers use different wind speeds to determine rated output. Also, the power available in the wind varies with the cube of its speed, so small increases in wind speed result in large increases in power available to the rotor. A 10 percent increase in wind speed yields a 33 percent increase in power available in the wind. Conversely, this means that a turbine rated at 1,000 watts at 28 mph might produce only 125 watts or less at half that wind speed, 14 mph. So what’s a wind turbine buyer to do? Ignore the peak output and the power curve. Look for the monthly or annual en ergy n umbers for the turbine, estimated for the average wind speed you expect or measure at your site. These will be given in KWH per month (or ye ar ) in t h e m a nufa c tu re r’s specifications for each turbine. Energy is what you are after, not peak power! If, for example, you are looking for a turbine that can produce 300 KWH per month, and you know that you have a 10 mph average wind speed at the proposed turbine height, you can shop for a turbine that is predicted to generate that much energy in that average wind speed. If you can not get energy production estimates from the manufacturer or a turbine owner, look for a different m a n u fa ct u re r. T h i s i s b as i c information that any manufacturer should supply. A turbine’s revolutions per minute (rpm) at its rated wind speed can give you s ome idea of the relative aerodynamic sound of the machine. Slower-turning wind turbines tend

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Alternative Energy - Exclusive Article to be quieter and last longer. High rpm machines wear out components, such as bearings, much faster. In addition, the faster blades move through the air, the greater the possibility that they will waste some of that energy as sound from the blades.

How to Choose a Wind Turbine It ’s a to ug h jo b to d esig n an d manufacture a long-lasting, small-scale wind generator. The bottom line: Buy a turbine that has a very good track record and a good warranty—five years is preferable, but not always available in the small wind industry. A warranty is one indication of the manufacturer’s confidence in their product, and their intention to stand behind it. Real-world reports from users carry even more weight than a warranty, so search for people who own the model of turbine you are considering buying, and get the straight scoop from th em about performance, durability, reliability, and maintenance issues. Note that a number of the wind turbines lis t ed h ere a re re la ti v ely n ew introductions with not very much customer run-time in India, Pakistan and Sri Lanka. We recommend that you contact either your local wind turbine installer, or the manufacturers or importers and find out how many of these machines are actually operating in Pakistan. Then contact the owners, and inquire about their experience and satisfaction with both the machine and t he m a n ufa ct u rer o r i mp or te r. Some manufacturers make only batterycharging machines, and may offer a variety of turbine voltages. Others produce machines intended to connect to grid-synchronous inverters without batteries. One machine even includes an inverter integrated with the turbine itself. Make sure you are buying a machine that is appropriate for your intended use. When you look at prices, keep in mind that just buying a wind turbine will not get you any wind-generated electricity. You will also need most or all of the associated components. Also budget for equipment rental, like a backhoe and cra n e, co nc rete an d elect rical components, shipping, and sales tax. Unless you do all of the work yourself, also factor in installation labor expenses. These costs can add up significantly, so make sure that you research and

understand all of the associated expenses before committing to a purchase. Many people are quite surprised to learn that the wind turbine cost can range from only 10 percent to as much as 40 percent of the entire wind system’s expenses. Small-scale wind energy is not for the h a lf-h e ar te d, u ninv o lv ed , o r uncommitted, and probably not for folks who never change the oil in their vehicles. The Pakistan landscape is littered with failed installations: Designs not fully thought-out or tested, machines bought because they were cheap, and installations that required more time and money for repairs than they ever yielded in electricity generated. Many of the failures were the result of wishful thinking and too little research. That said, there are tens of thousands of happy wind-electric system owners. These owners did their homework— purchasing, designing, and installing rugged and well-thought-out systems on adequately sized towers. In addition, t h ey a r e ei t h er c o m m it t e d t o maintaining the systems, or to hiring someone to do this regular work. While many first-time wind turbine buyers may be looking for a bargain, second-time wind turbine buyers are seeking the most rugged machine they can afford. You can avoid a painful "learning experience? by focusing on durability, production, warranty, and track record, and not on price alone, or on peak output. You do not want to depend on the low bidder for something as important to you as your long-term energy investment.

Wind-Electric System Types Off-Grid Wind-Electric Systems Off-grid wind-electric systems are battery based. People generally choose these systems because their home or other energy use is not connected to the utility grid, and connection would be e x p en s iv e . O t h e r s p r e f er t h e independence of off-grid systems, or live where utilities and governments make it difficult to tie a renewable energy system to the grid. Off-grid systems are limited in capacity by the size of the generating sources (wind turbine, solarelectric array, fuel-fired generator, etc.), the resources available, and the battery bank size. Off-grid homeowners have to learn to live within the limitations of their system capacity.

The following illustration includes the primary components of any off-grid wind-electric system with battery backup. Grid-Tied Wind-Electric System with Battery Backup Connecting a wind-electric system to the utility grid with battery backup gives you the best of both worlds. You have the unlimited capacity of the grid at your disposal, and you can send your surplus wind energy to the grid. When the grid is down, you can still use your system, within the limitations of the battery bank and turbine. Wind-electric systems can be a much better match for utility backup than solar-electric systems, since many grid outages are caused by high winds. The drawback is that this is the most expensive type of wind-electric system you can install. The following illustration includes the primary components of any grid-tied wind-electric system with battery backup. Battery-less Grid-Tied WindElectric System Connecting to the grid without batteries is t he m o s t c os t -e ffect iv e a n d environmentally friendly way to go. You eliminate batteries, which are costly, require maintenance, and carry a significant efficiency penalty. The only drawback of battery-less systems is that when the grid is down, your system shuts down. But in most grid-serviced areas, utility outages are only a few hours a year—a small inconvenience to endure for the efficiency, environmental friendliness, and thriftiness of these systems. Battery-less grid-tie systems may see increased performance (sometimes dramatically) from the wind turbine compared to battery-based systems. This is because the inverter’s electronics can match the wind’s load more exactly, running the turbine at optimum speed, and extracting the maximum energy. The following illustration includes the primary components of any battery-less g rid -t ie d w in d -e lect ri c s ys t em .

Continue in Alternate Energy Solution, Wind Turbines Part II, March 2012 issue….

Monthly Automark Magazine | February-2012 | Page 37

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by Asif Masood

Energy Sector - Exclusive Article

A concrete step - Solving Pakistan’s Energy Crisis with Industries, Academia Relations Together with ENERCON & UNDP, we are making excellent progress, identifying opportunities to utilize the strength of academia-industry linkage The Government of Pakistan has resolved to invigorate national action towards achieving greater energy efficiency in the country to help meet the challenges of rapid demand growth, improving economic competitiveness and ensuring equitable and affordable energy access across all consumer categories. Barrier Removal to the CostEffectiv e Develop ment and Implementation of Energy Efficiency Standards and Labeling Project (BRESL) is aimed at rapidly accelerating the adoption and implementation of energy standards and labels (ES&L) in Pakistan, and in so doing bring about energy savings of 4800 MW from the use of energy efficient appliances/equipment. International experience has shown that a framework for mandatory Minimum Energy Performance Standards (MEPS) is the key underlying sustained product efficiency improvements over time. In order to overcome this barrier, Institute of Space Technology (IST) took an initiative to constitute a high forum of Industries & Academia to develop, s y s te m a t ic f ra m ew o rk w it h t o implement mandatory ES&L programs to ensure coherent, coordination and timely implementation of BRESL project activities with appropriate practical mechanism with monitoring and evaluation procedures, in consonance with Higher Education Commission

Agenda envisaging rationalizing and integration of industrial–academia linkage to streaming/integrating energy c onse r vati on and e ff i ci e nc y enhancement, as the key element for development of energy sources. For this purpose a special meeting was arranged by Institute of Space Technology (IST) with their strategic partners ENERCON and University of Gujrat (UO G). A major activities of BRESL were highlighted, the project is sponsored by GEF/UNDP with total cost of US$ 0.65million, target appliances are Fans, Motors, CFLs, Ballasts, Air Conditioners & Refrigerators and the participating co u n tri es a re P ak is t an , Ch in a , Bangladesh, Indonesia, Thailand & Vietnam. The project objectives are aim to save about 10 % of energy being presently consumed by home appliances & to reduce annual growth rate of greenhouse gas emissions from thermal power generation. ENERCON, Ministry of Water & Power, is focused on developing and promoting an energy conservation culture in Pakistan in order to provide solution to the existing energy crisis in the country being the least cost option. Our effort while focusing on development and implementation of energy efficiency standards and labels aims to strengthen the existing testing facilities in private secto r fo r ev aluatio n of en erg y

performance of home appliances. It was decisive to plan road map and action plan for the harmonization and mutual recognition Asif Masood fo r ea c h BR ES L products. Special emphasis was given to make strategies to promote ES&L programme, particular attention was suggested to consider mechanisms that will address gaps in the industry and market to control on the manufacture and usage of inefficient products. It was also determined that Academia along with other institutions will establish testing laboratories to support the ES&L Programme. Director Institute of Space Technology (IST) announced, that we would work together to introduce ES&L regime in Pakistan market and said that “Together with ENERCON & UNDP, we ar e ma kin g ex cellen t p rog res s , identifying opportunities to utilize the strength of academia-industry linkage for the promotion of manufacture and testing facilities of energy efficient appliances and equipment. We are fortunate to have excellent joint venture partners to build a strong working team of engineers, researchers, entrepreneurs and other executives from academia and industry. ..

Representative of Chongqing Keima Electromechanical Co., Ltd., Manufacturer of KEIMA brand Carburetor in China. Mr. HaoMing Tang, Marketing Department and Mr. Justin Ren, Sales Manager visit Pakistan. During their visit they also meet Monthly AutoMark magazine’s editor in Karachi. Monthly Automark Magazine | February-2012 | Page 38

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Exclusive Car Care - Article

by Mohammad Shahzad

Tires … The Shoes of Your Car

Getting a grip on tires for your safety

Without the invention of the wheel you wouldn’t have the transportation for your life. Wheels and tires to a car are just like your feet and shoes. Regardless of what type of car you drive your tires are the only contact between your car and the road. They serve as a cushion between the road and the wheels for a comfortable ride and also provide traction and solid friction/grip with the road for effective braking and safe driving. Just imagine, your car is hurtling down the highway at 100km/h is only kissing a patch of pavement about a size of a human footprint or a postcard size. If the grip of that tiny patch is reduced, you could face any mishap on the road. For the safety of you an d your passengers take care for your tires and brakes as these are your prime life savers.

Fast facts-Importance of proper tire pressure Remember that a poorly inflated tire increases “rolling resistance,” fuel consumption and the risk of a blown tire and it reduces the tire’s lifespan. It’s not the tires that support the weight of your vehicle, but rather the pressure of the air in the tires. This explains why air pressure is critical to a tire’s effectiveness. Here are the fast facts of tire pressure. (*Statistical data is based on North American ’s mo toris ts) • 95% of your vehicle’s weight is supported by your tire’s air pressure, with the tire supporting only 5%, making air pressure a critical part of a tire’s ability to perform. • *70% of the vehicles have at least one tire w ith a n in flatio n p roblem . • *23% of vehicles have a least one tire

under-inflated by more than 20%, this will increase fuel consumption by 4%, increase greenhouse gas emissions and reduce tire life. • *Driving with one tire under-inflated by 2 0 % re s u lt s i n c on s u m in g approximately two weeks more of fuel per year and reduces your tire’s life by six months. • *17% of vehicles have at least one tire over-inflated by 20%; this will result in excessive tire wear and reduce vehicle handling and comfort. • 90% of tire failure occurs when only 10% of the tread remains. • Tire loses pressure when the air temperature gets colder about 7kpa or 1 psi for every 5 deg.C drop in temperature and also due to their permeability about 14kpa or 2 psi per month. • Every additional litre of fuel your vehicles uses due to under inflation tire,

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Exclusive Car Care - Article will release 2.4 kilograms of carbon dioxide CO2 a major greenhouse gas co ntributin g to clima te ch an ge. • Collectively, this means that improper tire m ain tenan ce practice wast e Pakistan’s millions of precious foreign exchange on fuel cost.

For your own safety, check tire condition, wear and air pressure at least once a month when tires are cold. The max air pressure on tire wall is not the right pressure for your tires; refer to your car manual, sticker in the glove box or at the driver side door jamb. Benefits of maintaining proper tire pressure: • Reduction in fuel consumption • Longer tire lifespan • Improved handling •Prevent io n of breakdo wn s an d avoidable accidents • Reduction in exhaust emissions as sociate d w ith he alth and environmental problems and climate change

Why tires wear abnormally? Tire tells the tale….sign of troubles! Just by looking at the heel and sole of the shoes, a Chiropractor/Doctor can tell a lot about a person’s walking style and body posture. With the same vision, an Auto Technician can tell the cause of an uneven wear pattern with a quick look at the tire wear (for example, overinflation , under-inflation , out-of alignment or any defected or damaged sus pension parts .) R emember to regularly check your tires, including the spare one, before they become a safety hazard. I mpo rtan ce of w heel align m en t Turning your car’s dragging wheels into driving wheels. Think of it this way, if you are pushing a shopping cart with crooked wheels you will need to apply an extra amount of force to overcome the drag to keep your cart straight. This is similar to your car when the engine is exerting extra power to keep wheels rolling straight and smooth when the wh eels are not aligned precis ely Proper alignment is an important part of tire maintenance. Poor alignment will cause your tires to wear unevenly and you may experience handling problems,

such as "pulling" or vibration. Poor alignment will also increase your fuel consumption. It is recommended to have your alignment checked annually, or every 24,000 km. or if you hit the pot hole or curb.

Why balance the tires? Take a short walk without or loose shoelaces and observe your body posture and balance. You’ll notice that while you’re walking you are unstable and unsteady. Similarly, if wheels are out of balance, you may feel a pounding or shaking through the steering wheel. This pounding could shorten the life of suspension components, lead to uneven tire wear (bald spots) and increase fuel consumption. It is a good practice to have your tires balance after every second oil/filter change with tire rotation or if you hit hard pot hole or curb or when you feel vibrations.

Why do tires need rotation? Your tires wear at different rates, front tires work harder than rear tires as they must bear the scrubbing action of steering as well as rolling wear. You should rotate all tires after every second oil change or 10,000 km; this will

minimize wear, reduce sudden tire failure and prolong the life of your tires.

When do you need new tires? Your driving habits will determine how long your tires will last. Normal good tire life is about five years or 100,000 km (depends on road, driving and weather conditions). However, avoid rabbit start and panic or sudden stop by slamming brakes unless needed for safety. Maintain safe speed and driving by keeping sufficient distance ahead of you. You need new tires when the tires wear bars starts showing, tires get damage beyond safe repair or become aged. If the tire is worn unevenly, it indicates a mechanical malfunction somewhere. The tire should be replaced, and the condition that caused the uneven wear should be corrected. Uneven wear can indicate several things wrong, for example: misalignment (the most common reason for fast wear) worn out shock absorbers; a worn out or loose front end, out of balance wheels, or a combination of all.

Tire treads condition Tires are designed to grip the road, allowing your vehicle to move, stop and go around corners safely in any weather. The treads that accomplishes this wear out over time, but drivers can take precautionary steps to prolong the life of their tires. Properly maintaining your tires will increase their life. It is extremely important to check your tire treads for signs of wear. Proper treads allow for

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Exclusive Car Care - Article normal handling of your vehicle and help prevent skidding and hydroplaning. Tires are manufactured with a "wear bar" that tells you when there is less than 1.6 mm (2/32 inch) of tread depth remaining - when you see this wear bar, the tire must be replaced.

Sings of tire damage It is important to perform regular visual inspections of your tires for signs of damage such as bulge or side wall cut and excessive wear/leak. Look for embedded objects, such as rocks, nails or glass. Catching problems early can save you money and prevent a sudden tire failure. When park your car at an angle parking spot make sure keep off the curb to avoid damage to tire and rim.

How to buy tires and wheels When you select shoes you pay close attention to its material, construction and size so that you enjoy a comfortable and safe walk. You select different types of shoes to suit your needs, as dress shoes for daily use, sports shoes for sports activities and snow shoes for snowy weather. When it comes to size it is equally important to have a proper fit according to your feet, too small or too large shoes can cause discomfort or unsafe walking. Similarly, the same approach applies to the selection criteria of your vehicle tires especially when it comes to contraction, selection, size and type. Though today’s wheels are better and sturdier, its basic design is still the same as that of the wheel that has carried man’s load for over six thousand years. Wheels are made of steel or aluminum alloy, but it serves the same basic purpose to have tire mounted air tight on its rim. Wheels must be sufficiently rigid and flexible to carry 2000 to 5000 pounds of the vehicle weight, transfer driving and braking torque to the tires and withstand side trusts under different speed and load conditions for safe and comfortable driving. There are countless varieties of tires available. Choosing the best one for your vehicle can be difficult. The best selection guide is your owner’s manual First, determine whether you require a passenger or light truck tire. Passenger tires are sufficient for most car owners

and many pick-up and SUV owners. However, some pick-up and SUV/Jeeps vehicles require more robust light truck tires for hauling heavy loads and driving on rough roads, due to poor roads conditions in Pakistan. The second step is to determine your own driving needs and what benefits you hope to get from the tires, such as long mileage, wet traction, winter/snow traction, superior han dlin g, ride comfort, fuel efficiency, and noise levels. This will help you narrow down your selection. All new tires should be the same size, tread design and if possible same make and have the same load capacity and speed rating as the original tires. This information is printed on the tire. If it is too difficult to read what is written on the tire, check the tire information placard which is usually attached to the edge of the driver's door. Install the same type of tires on all four wheels to e n s u r e p ro p er h a n dl in g . I t is recommended to replace all four or two in pairs to maintain steering/suspension stability, reduce uneven front -to-rear wear, protect your transmission and drive train, and maintain accurate ABS brake / traction stability controls. Most new cars are equipped with the TPS (tire pressure sensors) make sure to reset these sensors after carefully mounting new tires.

Tire size, code and marking

manufacturer recommendations and it’s very important especially before making any purchase decision. Always buy same size/type tires, never mix or match different size or tread design, it’s not only unsafe but also cause damage to power train. Refers your owner manual or placard for more information, such as maximum vehicle load, tire size, inflation pressure.

Tire care tips for your safety and savings Tires are often the most neglected parts of a vehicle. And yet, they are among the most important and easily cared for. By adopting these few simple tire maintenance practices, you can increase your vehicle's fuel efficiency, reduce harmful emissions, save money and make your vehicle safer. • Measure your tire pressure monthly using a good quality tire gauge when cold. A visual inspection is not sufficient to detect under or over-inflation problems. • Have your tires aligned annually. • T ir es s ho u ld b e ba lan ced approximately every 15-20 000 km, or when you feel a vibration and shimmy. • Rotate your tires regularly. • Monitor tread wear and replace tires when your tire tread is worn out. • Conduct a visual check for embedded stones, glass and other foreign objects that could work their way into the tire and cause a leak.

What to do if your tire blowout or get flat

Tire can be identified in a variety of ways. Metric sizes of tires are moulded into the sidewall and tell the application, the width in millimetres, the aspect ratio, the type such as radial or belted, and the rim size in inches. Tire size is based on the vehicle

If a rear tire blows out, ease the car to the side of the road while gradually slowing down. Never brake suddenly. This may cause a skid or an accident. If a front tire blows out, the car will pull to the side of the blow out tire. DO NOT BRAKE. Ease off the gas slowly while steering safely to the side of the road. If you get flat tire, pull safely off to the side of the paved road. Use emergency devices such as flares, emergency triangle, or warning light. Place the emergency devices at least 300 feet from your vehicle to give sufficient warning to on coming vehicles. Remove all passengers from the vehicle. Before jacking up the car, loosen the lug nuts slightly on the wheel to be changed. Be

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Car / Light Vehicle Price List




Price Price Rs. 510,000 Rs. 576,000 Rs. 562,000 Rs. 625,000 Rs. 727,000 Rs. 796,000 Rs. 1,056,000 Rs. 1,156,000 Rs. 925,000 Rs. 990,000 Rs. 1,282,000 Rs. 1,351,000 Rs. 537,000 Rs. 606,000 Rs. 589,000 Rs. 660,000 Rs. 653,000 Rs. 721,000 Rs. 565,000 Rs. 1,999,000 Rs. 2,074,000 Rs. 1,974,000 Rs. 2,123,000


Price Rs. 569,000 Rs. 539,000

Karakoram Motors Model Chery Standard Petrol Chery Standard CNG Chery Deluxe Petrol Chery Deluxe CNG Gonow Victor Gonow Troy Standard Gonow Troy Deluxe Gilgit (Double Cabin) Pet. Gilgit (Double Cabin) CNG Kaghan XL Petrol Kaghan XL CNG

Price Rs. 7,20,000 Rs. 7,70,000 Rs. 7,70,000 Rs. 8,20,000 Rs. 1,499,000 Rs. 9,99,000 Rs. 1,049,000 Rs. 3,85,000 Rs. 4,20,000 Rs. 1,285,000 Rs. 1,375,000

Model Honda CRV Automatic 2400cc Japan Honda Accord Automatic 2400cc Japan Honda City Manual 1300cc HYUNDAI Honda City Automatic 1300cc Honda Civic VTI Manual 1800cc Honda Civic VTI Manual SR (Oriel) Honda Civic VTI Prosmatec 1800cc Honda Civic VTI Prosmatec SR (Oriel)

Price Rs. 5,599,000 Rs. 6,467,000 Rs. 1,419,000 Rs. 1,560,000 Rs. 1,788,000 Rs. 1,980,000 Rs. 1,908,000 Rs. 2,058,000

TOYOTA COROLLA Model Model XLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1.6 A/T 1599cc Petrol XLI VVT-i 1299cc ECOTEC GLI VVT-i 1299cc ECOTEC 2.OD STD 2000cc 2.OD SALOON MT 2.OD SALOON SUNROOF ALTIS 1.6L Dual VVT-i MT ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT Cruisetronic ALTIS 1.6L Dual VVT-i AT SUNROOF Toyota Avanza (Standard)

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

Toyota Avanza (Up Specfication)

Rs. 2,160,000

Price Price 1,477,500 1,602,500 1,772,500 1,602,500 1,732,500 1,607,500 1,809,000 1,914,000 1,842,500 1,932,500 1,932,500 2,022,500 1,960,000

Hilux Pickup 4x sc Model


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

Rs. 1,614,500

Hilux Pickup 4x4 D/C Model


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

DAIHATSU Model CUORE CX std CX ECO (CNG) CX ECOMATIC Terios 4X2 lwb at Terios 4X4 lwb mt

Price Rs. 8,47,200 Rs. 8,97,200 Rs. 9,58,200 Rs. 2,770,000 Rs. 2,770,000

Rs. 2,489,000



DEFENDER STATION WAGON 90 Rs. 3,560,000 STATION WAGON 110 Rs. 3,960,000 Soft Top 90 Rs. 3,336,000 Price updated February- 2012

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by Shahzad Tabish

Corporate Event - Update

The Launch of HINO High performance Lubricant Series HINO motor company is a renowned name & the market leader when it comes to sales in Pakistani LTV, MTV, HTV and Bus categories. Following the Japanese standards of Kaizen & 5S, the industry has kept its customers demands on the hig hes t priority. For the fulfillment of the customer oriented development, a fully functional Product Support Division is working in house at th e H IN O PAK facility en su ring excellence in the availability of Sales, Service & Spares facilities. HINOPAK has established a network of 1S, 2S, 3S, mobile workshops & 3S-LCV dealerships across Pakistan in order to facilitate the customers seeking quality service & genuine parts. The network is continuously evaluated & improved considering each & every minute aspect. Furth ermore a feedback path is established from the customer end in order to ensure that the company stays all ears on its vision of “Customer Focus”. One of the major concerns noticed from previous surveys was the fact that he customers wanted the periodic maintenance costs to be cut down immediately & HINOPAK has responded within no time. H I N O P A K v e r y r e c e n t ly , i n collaboration with Total Atlas Lubricants Pakistan (Pvt) Ltd launched a series of HINO Motor Oils in order to facilitate the customers who were demanding low co s t & fa irly reli ab le pe rio d ic maintenance genuine product. The recently launched product line includes Engine oil (rated @ SAE 20W-50), Transmission oil (rated @ SAE 85W140) & differential oil (rated @ SAE 85W-140). As far as the availability is concerned, the motor oils will be available at all the HINO dealerships around Pakistan. Having an insight to the viscosity ratings, the engine oil is particularly rated eyeing the hot climatic conditions of Pakistan as the oil would surely be able to withstand elevated temperatures, maintain in g its viscosity & th us

Group Photo of Hinopak and Total Management during the MOU Signing Ceremony

In pursuit of providing best quality service to its customers, Hinopak Motors Limited and Total Atlas Lubricants Pakistan (Pvt) Ltd. has signed MOU on August 30, 2011 at Hinopak Motors Limited for Development & Launching of "Hino High Performance Oil & Lubricant Series" for the Truck & Bus users in Pakistan. protecting the engine. As far as the drive train oils are concerned they are rated to bear heavy loadings maintaining their viscosity ensuring the proper cooling & lubrication of the mesh all the time. Having a thorough insight to the TOTAL & HINO relationships we can see that a contract had been developed between the two giants of their respective fields, enabling the supply of Engine oil, Transmission oil, Brake fluid, Hydraulic oil, Power steering oil & grease etc. A simple question might arise in our minds that if the Japanese OEM recommends Total branded oils to its users why has it launched its individual series of HINO lubricants? The answer to this question

is fairly very simple. Firstly the aim of HINO is to facilitate its customers by reducing periodic maintenance cost & in order to ensure the availability of genuine lubricant to its consumers. As far as our country is concerned, foul practices including the selling of degraded & unbranded oils in used boxes of branded lubricants is fairly common. This step from HINO ensures the availability of the genuine motor oil at all the recognized dealerships of HINOPAK, eliminating this factor of foul play on the customer from the local loyalty. On a customers perspective this act of HINOPAK needs to be applauded & appreciated as it indicates that perhaps few industries, along with making huge revenues listen to the needs & demands of the consumer who generates that revenue instead of turning a deaf ear on them. We hope that few more customer oriented packages will be launched in the near future & this practice continues. Cheers!

Monthly Automark Magazine | February-2012 | Page 44

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International Automotive Sector - Update

BMW to open its largest ever showroom in Abu Dhabi Abu Dhabi is set to unveil the world’s largest BMW showroom next week, the German carmaker’s local distributor has confirmed. Abu Dhabi Motors, BMW Group’s exclusive importer in the UAE capital, will host a VIP party on February 14 to celebrate the opening of its new AED300m ($81.6m) showroom facility in Umm Al Nar. Among the 1,000 guests due to attend include Ian Robertson, head of sales and marketing of BMW AG and chairman of Rolls-Royce Motor Cars and Lebanese singers Maya Diab and Wael Kfoury are set to perform. On display at the new facility will be the BMW Vision Efficient Dynamics concept vehicle, which was driven by Tom Cruise in the hit Hollywood movie, Mission Impossible 4: Ghost Protocol, which was partially filmed in Dubai. The open in g comes after s tron g performance in the region, with the German carmaker posting a nine percent year-on-year increase in sales in the Middle East in 2011. The company said it was the most successful year in BMW Group's history in terms of regional sales. With a total of 18,657 BMW and MINI vehicles delivered to customers across 14 Middle East markets, it said most of

its importers reported an increase in sales in 2011 and a number of markets r ec or d ed d o u ble d ig i t g ro w t h . The UAE remained the biggest market, accounting for 47 percent of BMW Group Middle East's 2011 sales. Abu Dhabi was the highest volume selling market, with a 23 percent growth and 4,436 cars sold while Dubai also witnessed an increase of 23 percent with 4,395 cars sold. Other top performing markets included Qatar by 26 percent (1,265 cars), Saudi Arabia, with a two percent sales increase (3,072 cars) and Kuwait and Bahrain both with a six percent increase. Also among the markets with the biggest growth were Yemen and Pakistan with 37 percent and 27 percent growth respectively. The BMW 5 Series also showed growth with 4,286 cars sold and a 30 percent increase. MINI achieved a 77 percent growth in 2011 across eight Middle East markets and sales of 1,108 cars - the strongest growth since the brand was launched in the region 11 years ago. In the UAE, Dubai was the biggest MINI market, with an increase of 164 percent (493 cars) while Abu Dhabi saw growth of 63 percent (196 cars).

Japan's Honda production down 20pc in 2011 Japan's Honda Motor, the country's third-biggest carmaker, suffered a 20 percent plunge in its global production last year. Honda made 2.91 million vehicles not including motorbikes in 2011, it said, d o w n 20 . 2 p er cen t a s au t o manufacturers struggled with natural disasters, a rising yen and the European economic slowdown. The figures came as Japan's major car fi rm s a n n o u n c ed th e ir a n n u al production for 2011. Toyota, which had already confirmed earlier this week it had lost its position as the world's biggest carmaker, said it produced 7.86 million vehicles, down 8.2 percent. Nissan, 44.3 percent owned by French partner Renault, was the only leading Japanese carmaker to increase annual global production despite supply chain d is r u p ti o n fr o m t h e c o u n t r y' s earthquake disaster and floods in Thailand. It produced 4.63 million units, up 14.3 percent from a year ago, while global sales hit a record 4.67 million vehicles, it said. Mitsubishi Motors, the nation's fourth largest automaker, produced 1.14 million vehicles, a 2.8 percent drop.

JAMA Projects 2012 Motorcycle Demand Motorcycle Industry News Each month, the Japan Automobile Manufacturer's Association releases information about domestic motorcycle sales, production and exports from the Big Four (Yamaha, Honda, Suzuki, Kawasaki) and others. But JAMA also projects the future of motorcycle demand in Japan. Following is the report, which makes for a very interesting read to those who follow news in the motorcycle industry.

Total Demand for Motorcycles Japan's domestic motorcycle market continues to struggle with a protracted slump, attributable not only to structural factors but also to higher vehicle prices stemming from mandatory compliance with new emissions regulations enforced in 2007 and the resulting smaller range

of available models. Nevertheless, motorcycle sales in Japan in 2011 surged 5.1% from 2010 to 445,000 units, marking the first overall increase in six years, with year-on-year gains posted in both the Class-1 motor-driven cycle and mini-sized motorcycle categories.

Class-2 Motor-Driven Cycles (51cc-125cc) In 2011 demand for Class-2 motordriven cycles totalled 96,000 units, dipping 0.7% from the previous year, attributable to a decline in the impact of new models introduced in 2010. O n the other han d, new models introduced in 2011 should help raise sales in this category to 103,000 units in 2012, up 7.6% from the previous year. Mini-Sized Motorcycles (126cc-250cc) Mini-sized motorcycle sales in 2011

reached 39,000 units, rising 3.3% from 2010. This growth is attributable to favorable consumer response to sportstype models, even as the demand for scooters in urban areas continues to slide. In 2012 the appeal of sports-type models should continue to drive demand in this segment, resulting in projected sales of 40,000 units, a gain of 2.9% over 2011. Small-Sized Motorcycles (over 250cc) Sales of small-sized motorcycles in 2011 finished at 53,000 units, down 8.2% from the previous year. The decline in this segment in particular reflected consumer response to the continued sluggishness of the domestic economy, affecting employment and personal incomes, and the impact of the March 11 disaster.....

Monthly Automark Magazine | February-2012 | Page 45

Corporate Event - Update

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Indus Motor Company conducts 7th Toyota Technical Education Program (T-TEP) Career Day Indus Motor is also involved in providing direct training to instructors and students of the T-TEP institutes, in order to ensure adequate transfer of technical knowledge. Indus motor Company hosted the 7th Career Day at St. Patrick’s Institute of Science and Technology, in line with the ongoing Toyota Technical Education Program. T-TEP is a 3 years Automobile Diploma Program conducted with the assistance of Toyota Motor Corporation. This program provides students training in state-of-the art automobile technology, enabling them to pursue successful career after graduation. Mr. Abul Kalam, Vice Chancellor, NED University was the chief guest at the event. Senior management of Indus Motor Company was also present. Speaking on the occasion, Mr. Abul Kalam said, ‘Toyota Technical Education

Program (T-TEP) is an outstanding means to reduce the gap between the skills demand of the country and tr ai n in g o f in d ivi du a ls by ou r educational system and I am happy to note that Indus Motor Company is playing a very useful role in filling this gap’. Parvez Ghias, CEO, Indus Motor Company said that the idea behind this initiative was to fruitfully train Pakistani youth by providing them world class technical training, so that they could build their careers towards a better future. Indus Motor Company offers the program in collaboration with three major institutes in Karachi, Lahore and

Islamabad. Since the inception of T-TEP Institutes, Indus Motor Company has annually conducted Career Day at these institutes. On these occasions, the graduating students are offered jobs by the auto industry and IMC dealerships and vendors. Indus Motor is also in volved in providing direct training to instructors and students of the T-TEP institutes, in order to ensure adequate transfer of technical knowledge. Also present on the occasion were Rev. Fr. Joseph Pau, Principals, St. Patrick’s High School, as well as teachers and students from the institute besides other stakeholders.....

Monthly Automark Magazine | February-2012 | Page 46

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70cc Motorcycle

Sr./ Product & No. Model Name 1. Aan AI-70 2. Asia Hero AH-70 3. Bionic AS-70 4. Crown Lifan CRLF-70 5. Challenger BA-70 6. Diamond SD-70 7. Dhoom YD-70 8. Eagle DG-70 9. Ghani GI-70 10. Guangta GT-70 11. Grace CT-70 12. Hero RF-70 13. Hero RF-70 Plus 14. Habib HB-70 15. Honda CD-70 16. Hi-Speed SR-70 17. Jinan JN-70 18. Leader LD-70 19. King Hero KH-70 20. Moon Star MT-70 21. Master MD-70 22. Metro Hi-Tech MR-70 23. New Asia NA-70 Price updated Feb-2012

Retail Price Rs. 42,500/= Rs. 41,000/= Rs. 41,000/= Rs. 42,000/= Rs. 40,000/= Rs. 40,000/= Rs. 49,000/= Rs. 39,000/= Rs. 45,000/= Rs. 41,000/= Rs. 41,000/= Rs. 46,000/= Rs. 47,000/= Rs. 41,000/= Rs. 66,500/= Rs. 43,000/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 40,500/= Rs. 44,800/= Rs. 40,000/=

Sr./ No. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46.

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

Monthly Automark Magazine | February-2012 | Page 48

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

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Monthly Automark Magazine | February-2012 | Page 49

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Automark Feburary 2012  

Automark Feburary 2012

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