Monthly AutoMark The Motorcycle Industry in Pakistan: Investment Opportunities and Prospects (Part II) Exclusive Report by M. Yousuf Shaikh
Trade competition Pakistanâ€™s auto industry 16 determined to find middle-ground with Indian counterparts SME bike assemblers looking forward for meeting with government An Exclusive article by Ali Hassan
Govt snatches option of imported used small cars An Exclusive article by M. Owais Khan
Govt fails to push thru poorly crafted energy policy
Enforcing discipline in car market
Car / Trucks Productions fig.
Motorcycles Price List
Punjab government, China firm sign MoU for Ring Road construction
Potential of Construction Machinery in Pakistan Exclusive Article by Syed Mansoor Ali
International Automotive news
Understanding oil and fluid leaks under your Car...... By Mohammad Shahzad from Canada
China to create $3 billion solar fund for Pakistan
Pakistanâ€™s premier magazine on automotive, engineering & energy sector Monthly
AUTOMARK Use of alternative energy urged by us
Editor M. Hanif Memon Technical Editor Muhammad Shahzad
Advertising Manager Tahir Siddiqui
Circulation Manager Abdul Khaliq
Graphic Designer Salman Hanif
Web Master Murtaza Hanif
CONTRIBUTING IN THIS ISSUE Muhammad Shazad Asif Masood M. Yousuf Shaikh Ali Hassan M. Owais Khan
Advisors Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi
Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi
We urged the government to make installation of alternate energy system of solar, wind or biomass mandatory for all new construct ion of houses, commercial buildings and factories to save electricity in view of satisfactory and successful reports from alternate energy users from all over Pakistan.
Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi
The new houses, commercial buildings and factories should be given a choice to install solar, wind or biomass systems and urged the government to make it mandatory for them to install alternate energy systems.
Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center Director Industrial Lesion, NED University, Karachi
The government needs to encourage the use of alternate energy generation systems and make it affordable by exempting the alternate energy systems from all import duties.
Engr. IHT Farooqui GM Plant P.M. Auto Industries Hyderabad
State Bank of Pakistan to offer subsidised finance for installation of alternate energy systems of solar, wind or biomass.
J. Pereira GM After Sales Al-Haj Faw Motors (Pvt) Ltd. Karachi
The government should offer leasing facilities for the installation of alternate energy systems for the small and medium enterprises on easy repayment terms to enable them repay over a period of 3 to 5 years on easy installments.
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: www.automark.pk E-mail: email@example.com Tel : 021-32218526 Mobile: 0321-2203815
We appreciate the initiatives being taken by the government to overcome the energy crisis in Pakistan, the government has introduced solar auto rickshaw which will reduce dependence on costly fuel. The Senate has recently been informed that â€œSolar Auto Rickshawâ€? technology has successfully been developed indigenously to help overcome the acute shortage of energy and rising costs of fuel.
Exclusive Report by M. Yousuf Shaikh
PAKISTAN CHINA MOTORCYCLE INDUSTRY CONCIL
The Motorcycle Industry in Pakistan: About The Pakistan China Motorcycle Investment Opportunities Industry council and Prospects (Part II) (PCMIC) This organization is a Pakistan & China Motorcycle trader & Industrial group network for Pakistanis, Chinese and their friends. In addition to being a Pakistan & China motorcycle trade & industry watcher, an investor, a business consultant and an avid follower of the Chinese Motorcycle Trade & Industry markets. The Pakistan China Motorcycle Industry Council (PCMIC) has been created as an instrument to aid the harmony between the Pakistani importer cum motorcycle assemblers and Chinese exporter cum motorcycle manufactures. The PCMICâ€™s main goal is to smooth the way for further expansion by all parties and to aid in communication and develop better relationships. Global Chinese motorcycle makers are welcome to seize opportunities in Pakistan and further increase their market shares as currently 55% are Chinese branded motorcycles and 45% Japanese. ....Continued from previous issue (July-2013 edition)
CHAPTER 2 2.1 PAKISTANâ€™S MOTORCYCLE INDUSTRY In Pakistan, motorcycle assembly started in 1964 when the local Atlas Group started assembling Honda motorcycles in Karachi. Currently in addition to Honda, the other Japanese brands being manufactured in Pakistan include Yamaha and Suzuki. The most successful design among the Japanese brands has been the Honda 70CC which enjoys tremendous popularity on account of its f u el econ omy, resale and l ow
Muhammad Yousuf Shaikh The Founder & Chairman of Pakistan China Motorcycle Industry Council, offers his analysis of the motorcycle trade & industry trends from Pakistan & China. As the chairman PCMIC working with motorcycle trade & industry for over two decades, Yousuf believes that new projects with foreign investment particularly Chinese investment could help Pakistan to design and produce its own automobiles mainly motorcycles & its engines, as Pakistan have strong brotherly & bilateral trade relation with Chinese. firstname.lastname@example.org
maintenance features. Pakis tan C ycle In dustrial Cooperative Society Limited and S i a g ol Q i n gq i M o t o r s L t d (subsequently renamed Qingqi Motors Ltd.). The Non-Japanese OEMs entered the Pakistani market in the late 1990â€™s by introducing clones of the popular Honda 70CC motorcycle using critical parts and components imported from China. For the basic frame and other low tech parts they used the local vendors (part suppliers) whose development had been f acili tat ed by the Govern men t o f P akis tan â€™s in di gen iz at io n /
localization programs for the motorcycle industry. Presently there are 93 OEMs producing various brands of motorcycles. The Engineering Development Board (EDB) issues licenses to the OEMs for undertaking assembly operations. The Pakistan Standards & Quality Control Authority (PSQCA) is responsible for monitoring the production of quality products by the OEMs. As such both the EDB and the PSQCA play an important role in the establishment, licensing and monitoring of the technical operations o f the mot orcycl e assembler s.
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The entry of the local OEMâ€™s with a competitive price diff erence of approximately 30% (Rs.42,000 Vs. Rs.68,000 for the Honda 70CC in 2012 and previous many year) and continuous price reductions (2012 price for average local OEM 70CC clone is Rs.40,000 Vs. Rs.45,000 for a Honda 70CC). This has seen the total motorcycle market increase from 120,627 in 2001 â€“ 02 to 20, 00,000 in 2011 â€“ 12. Table 1, shows the sales increases in the past 5 years. Table - 1
and two Japanese alone accounting for 45% of all new motorcycles sold in Pakistan. With the increase in production, the prices of motorcycles have come down considerably. In 2011 â€“ 2012, the price of a Honda 70CC motorcycle was Rs.69,000. The same year the local OEMs supplied 70CC clones for Rs.40 â€“ 42,000. In order to compete with the products, Japanese brands considerably reduced prices. As a result of these price reductions, the Honda 70CC is currently selling at Rs.68, 000, local brands are available in the Rs.40 â€“ 42,000 range. If this trend in prices continues, the market is likely to expand further.
2.2 PROJECTED DEMAND Per capita income in Pakistan has increased in the past 5 years at an average annual rate of approximately 14.0%. The economy is projected to continue to grow at more than 7.5% in the coming decade. Assuming an annual decrease in number of persons per new motorcycle purchased in the next 5 years at 14% (Average decrease for last 4 years being more than 30% per annum).
OEMs and 91 OEMs who are local. The total installed capacity of the OEMs is approximately 2.5 million units per year as per the Engineering Development Board. The OEMs are located in and around the cities of Karachi (Karachi, Hyderabad & Hub) and Lahore (Lahore, Gujrat, Gujranwala). The total installed capacity of the industry is 1.31 million units as stated earlier. Table 5 shows distribution of capacity by OEM membership and Model. Table 5 shows that nearly 3/4th of the capacity is in the 70CC model. In terms of sales, the 70CC motorcycle has approximately 85% of the market. The common USP of the OEMs for selling the 70CC motorcycle revolves round fuel economy and trouble free maintenance. The Point of Difference is that while the Non-PAMA OEMs emphasis price (which varies between Rs.35,000 â€“ 42,000 depending on the manufacturer), the PAMA members OEMs stress superior resale value backed by a strong after sales and service backup. With apparently no major
Sales of Motorcycles in Pakistan Although the number of assemblers has increased from 3 to 93 the local Chinese continue to hold the dominant market position with 55% of the market share
ORIGINAL EQUIPMENT MANUFACTURERS AND STAKEHOLDERS 3.1 BACKGROUND Currently there are 93 Original Equipment Manufacturers (OEMs) operating in Pakistanâ€™s motorcycle industry. These include 2 Japanese
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Exclusive Report by M. Yousuf Shaikh
Table â€“ 5 Industry Capacity by OEM Origin & Model
Source: EDB & PSQCA
Table â€“ 6 Deletion/Localization Targets for Motorcycle OEMs
product differentiation option available to them, the product manufactured by the Non-PAMA OEMs has for the most part become commoditized with price being the only differentiation element. The present overcapacity in the Industry coupled with low margins and lack of major innovation opportunities in the product class can lead to the weaker players exiting the industry.
3.2 PRESENT TARIFF STRUCTURE The industry in Pakistan operated under the Deletion Policy formulated and implemented by the Ministry of Industries from 1996 till 2005. This deletion/ localization/ indigenization policy stipulated the mandatory progressive use of a certain percentage of locally manufactured parts & components. Table 6 sho w s t h e deletion / indigenization targets for the various motorcycle models. The deletion program which had been framed keeping the capabilities of the
local parts an d compo nent manufacturing industry in mind, allowed for the import of parts & components whose local production was not possible either because of volume or technological restrictions. The policy applied to both old as well as new entrants. For new entrants this meant that they had to start with the deletion levels already achieved by the existing OEMs. This was one of the reasons for the Non-Japanese OEMâ€™s cloning the Honda 70CC model as fairly high levels of localization had been achieved for this model. In addition this model was viewed as a â€œsafe modelâ€? from the market acceptance perspective. With the signing of the WTO, Pakistan moved from the Deletion Policy to the Tariff Based System (TBS) in July 2005. Under TBS protection is provided to the local parts an d compo nent manufacturing industry through tariff measures. Table 7 shows tariff rates currently applicable to the motorcycle
3.3 Exclusive Policy of Government of Pakistan for New Investor/New entrant in motorcycle industrial sector to produce new technology motorcycle in Pakistan: New entrant would mean a potential assembler/manufacturer, whether local or foreign, bringing in new technology for the first time in Pakistan and have had no assembly/manufacturing of similar motorcycles in Pakistan in the past. Any existing player bringing in new technology would be eligible for tariff incentives to the extent of parts and components to new techno logy. New entrant policy for motorcycle of 100cc and above was notified by Federal Board of Revenue (FBR) vide SRO 09(I)/2013 on January 4, 2013 t o e n co urag e n e w i n v es t men t and new technology in this subsector. As per decision of the economic coordination committee (ECC) of the Cabinet the tariff structure for motorcycle sector was defined as under which is applicable across the board and are subject to review after one year. The tariff rates have been notified by FBR by amending relevant SROs. Raw materials, 0 percent duty; sub components/ components 7.5 percent duty; sub-assemblies, 15 percent duty; CBU (all engine capacities), 57.5 percent duty; CKD kits not manufactured locally, 10 percent duty and CKD kit s manufactured locally, 38.75 percent duty. The policy for new entrants was notified by FBR vide notification No SRO 09(1)/2013 dated 4th January 2013 stating that in line with summary on "Policy for New Entrants" submitted by Ministry of Commerce approved by the ECC of the Cabinet case No ECC135/14/2012 dated 23rd October 2012
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which specifies that the additional customs duty leviable under this notification shall not be charged on subcomponents and components imported in any kit form by a manufacturer declared to be a new entrant approved by t he new entrant committ ee comprising representatives of Ministry of Industry, Ministry of Commerce and Board of Investment for the motorcycles of 100cc and above with new technology for a period of five years from start of commercial production subject to following major conditions. At the start of commercial production by new entrants, localisation level shall be kept at a minimum of 25 percent. By the end of five years, localisation level shall reach a minimum of 85 percent. The new entrant committee shall be chaired by Secretary Industries comprising representatives of Board of Investment and Ministry of Commerce that shall receive and approve requests of new entrants in motorcycle sector and extension of benefits under new entrant policy. The committee shall also be empowered to decide on proposals relating to introduction of new technologies by the existing manufacturers as well as the localisation plan. The agreement template for new entrants, including the localisation plan, will be developed by EDB in consultation with the National Tariff Commission (NTC). The agreement would be
designed in such a way that new entrant scheme is not misused. The Federal Board of Revenue will not charge additional customs duty on subcomponents and components, imported in any kit form by new entrants (manufactures) in the motorcycle industry. The FBR has amended SRO.693(I)/2006 dated July 1, 2006 through an SRO.09(I)/2013.
3.4 REGULATORY BODIES Primarily there are three major Regulatory Bodies that are involved in regulating and monitoring the licensing and operations of the industry. These include the EDB, the PSQCA and the CBR. Their roles, functions, present views of the industry about them and recommendations for improvement in their functioning are given below.
3.4.1 ENGINEERING DEVELOPMENT BOARD (EDB) EDB the apex government body under the Ministry of Industries, Production and Special Initiatives is entrusted with the task of strengthening the engineering base in Pakistan. The Board focuses primarily on the development of the engineering goods and services sector on modern lines enabling it to become technologically sound and globally integrated. In the development of Pakistanâ€™s auto
Table â€“ 7 Tariff Rates Applicable to the Motorcycle Industry
sector, the EDB has played a major role as it was responsible for developing and monitoring the deletion/ indigenization program for the auto industry. Under the new WTO regime, it is responsible for implementation of the Tariff Based System (TBS) in the auto sector and for i d e n t if yi n g an d re mo v i ng t he bottlenecks for the industry. The EDB is responsible for inspection of assembly / manufacturing facilities in the auto sector. Its mandate includes working closely with the CBR to facilitate auto industry on customs, sales tax and other tax related matters and in proposing easy procedures and formalities. In addition, it is required to update the database on the entire automotive manufacturing sector on a regular basis.
3.4.2 PAKISTAN STANDARDS & QUALITY CONTROL AUTHORITY (PSQCA) The Government of Pakistan established PSQCA in 1996. It started its operations in December 2000. Three organizations namely, Pakistan Standards Institution (now SDC), Central Testing Laboratories (now QCC) and Metal Industries Research and Development centre (now TSC) have been merged in PSQCA to provide one window standardization, quality control and other technical services. The PSQCA developed the first Pakistan Standard for the two wheeler auto vehicles in 2000. These standards incorporated the following standards: the Pakistan Standards, Japanese Standards, Canadian Standards, Thai Industrial Standard & the Environmental Protection Agency (EPA) regulations. The Standards were revised in 2004 taking into account changes in international emission standards. (to be continued....)
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Automotive Sector - Update
Pakistanâ€™s auto industry determined to find middle-ground with Indian counterparts When former Pakistani government hinted that it is going to liberalise trade with archrival India, the Pakistani auto industry was on the forefront to oppose any such move. However, after two years, not only has the harsh opposition from auto industry diminished but it also seems to see swift progress on issues pertaining to trade with India. Despite all this change of heart of local auto industry, Pakistan stands exactly where it was in December 31, 2012 â€“ the date that it fixed to complete the procedure of giving most favoured nati on (MF N) stat us to India. The local auto industry has been fearful that Indian automakers will dump their products in Pakistan leaving them uncompetitive because of their big industry size and economy of scale, whereas, t hey will hav e f ewer opportunities in India because of the problems of non-tariff barriers (NTBs). After initial opposition to the very idea of liberalised trade with India, car assemblers of Pakistan are willing to import parts that are completely knocked down (CKD), but are opposing imports of completely built units (CBUs). The idea to import major car parts from India is feasible because it will reduce the cost of production of cars. Pakistan imports car parts from Thailand and Japan that can be easily imported from neighbouring India owing to its proximity with the country. Although former government failed in granting the MFN status to India in spite of fixing the final date, Pak Suzuki Motor Company â€“ the biggest player in fourwheeler market with over 60% market share â€“ is hopeful that the new
government of Pakistan will improve trade relations with India.
â€œPak Suzuki looks more enthusiastic unlike the other two carmakers Honda Atlas Motors and Indus Motors because of Suzuki Maruti, an affiliate of Suzuki Japan with over 50% market share in India from where it can import cheap parts for its cars in Pakistan.â€? Indian auto part makers are willing to transfer latest technology to their counterparts in Pakistan and this will be a win-win situation for both carmakers and auto parts makers in Pakistan, Managing Director of Pak Suzuki Motor Company Hirofumi Nagao told media in May. Pak Suzuki discontinued its Suzuki Alto from July 1, 2012 when government of Pakistan made compliance of Euro II emission standards mandatory for all the car producers in the country. The company not only wants to import Alto engines from India but also launch new models especially in small engine category with the help of cheaper Indian components. Pakistan has t o move forward consistently in trade with India. Last
year, there was a big hype of trade with India but for the last 6-7 months, we just forget this important issue, an official of Indus Motor, the makers of Toyota Corolla said. Indus Motor officials recently went to Japan where they discussed the developments in Pakistan-India trade with their parent company, Toyota Japan. â€œWe have requested Toyota Japan to equally support both of its affiliates in India and Pakistan because some car components of Toyota cars are cheap in Pakistan and some are cheap in India. So both of Toyota affiliates will grow if they collaborate with each other,â€? he added. Auto parts makers â€“ the other important stakeholder other than carmakers in auto industry â€“ say, that trade with India is difficult owing to widespread mistrust between India and Pakistan and NTBs that discourage Pakistani exports in India. Auto parts makers say that they are ready for joint ventures with India auto parts makers, but they still look much more concerned if compared to automakers on trade with India. On the other hand, Indian government says that there are no Pakistan specific NTBs in India and that it is bringing swift changes in systems especially at Lahore-Wagah route to facilitate bilateral trade. Like other industries, auto industry is closely watching how Nawaz Sharifâ€™s government is going to take forward trade talks with India and especially when he gives MFN status to the archrival.....
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Exclusive Article by Ali Hassan on Motorcycle Sector
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SME bike assemblers looking forward for meeting with government Here the ex-chairman of Association of Pakistan Motorcycle Assemblers (APMA), a Chinese bike assemblersâ€™ body, Mohammad Sabir Shaikh, while looking highly worried, has put some questions before Finance Minister Mohammad Ishaq Dar. A) Is the Federal Finance Minister really serious in increasing the revenue? B) Is Mr. Dar looking forward to curb mis-declaration, under invoicing and smuggling? C) Are Ministry of Finance and Federal Board of Revenue determined in imposing general sales tax (GST) at retail stage? If yes, Sabir Shaikh, said then why the these two main government organs (FBR and Finance Ministry) have not started any homework by contacting stakeholders and market players to discuss at length these three issues.
Mohammad Sabir Shaikh
Chief Coordinator APMA said low price bike assemblers are looking forward towards the government to immediately announce a motorcycle policy for which it should contact the stakeholders who are ready to give positive suggestions keeping in their vast experience. The PML-N government is now two mo nt hs ol d . Bike assemblers feel that so far there is no movement in the government ministries to call upon bike assemblers in Islamabad for a detailed discussion for future development of the two wheeler industry in Pakistan. Here the ex-chairman of Association of Pakistan Motorcycle Assemblers (APMA), a Chinese bike assemblersâ€™ body, Mohammad Sabir Shaikh, while looking highly worried, has put some questions before Finance Minister Mohammad Ishaq Dar. A) Is the Federal Finance Minister really serious in increasing the revenue? B) Is Mr. Dar looking forward to curb mis-declaration, under invoicing and smuggling? C) Are Ministry of Finance and Federal
Board of Revenue determined in - Need for formulating uniform imposing general sales tax (GST) at retail policies stage? - Dry ports have become major If yes, Sabir Shaikh, said then why the sources for thriving informal these two main government organs trade (FBR and Finance Ministry) have not - The PML-N government started any homework by contacting should now come out by stakeholders and market players to w in nin g t he c onf id enc e . discuss at length these three issues. - Government should abolish If the government only makes changes the condition from buying parts in the policy of auto sector then the from commercial importers government will certainly get more than - Increasing general sales tax Rs 1,000 crores annually as this amount by one per cent to 17 from 16 is being currently being going to waste and to 19 per cent on nonbecause of wrong policies. register buyers is not a welcome The retailers are not against the imposition of sales tax at retail stage but move which has only pushed actually the manufacturers, importers, up the prices smugglers etc are making hue and cry Pakistani goods against this move. uncompetitive in the region Customs Authorities in the last 10 and main focus has been on years have caused a stir in taxation collection of taxes and revenue system by introducing valuation generation advices/rulings of different items. - Government should bring a Based on good connections, one change by abolishing the SRO can fix the valuation of any item culture as Finance Minister at lower side by greasing the palm promised in his budget speech. continued on next page www.automark.pk | August-2013 | Page 17
Exclusive Article by Ali Hassan - continued
of the officials and similarly market players also bribe officials to get the valuation fixed at higher side for the competitors. There is a need for formulating uniform policies in every sector which will provide level playing field and the country will prosper besides witnessing revenue generation. Dry ports have become major sources for thriving informal trade. For better performance of dry ports in terms of revenue generation, there is a need for posting of different officials for different departments instead of giving entire power to one senior official. The PML-N government should now come out by winning the confidence of the people belonging to various business fields. This can be done by creating a department in any ministry where people could feel easy in making contact. This will help the ministry to deliver good services and expertise. This will save time of the stakeholders and market players also.
Motorcycle Industry: The government and its concerned departments looking after the auto sector should put their heads down by understanding the bike sectorâ€™ problems relating to high cost of production, taxes and duties, etc. The government should make a study with the help of stakeholders as to how to lower the cost of production especially when the US Dollar continues to gain strength against Pak Rupee. There are number of other issues which are being handled by the Engineering Development Board (EDB). However, the EDB has observed that majority of OEMs after enrolling under SRO 656/2006 and obtaining manufacturing certificate and list of importable components, which is controversial and resort to procuring their parts/components from commercial
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national kitty being caused by evasion of duties and taxes.
â€œThe government has also not called upon any meeting with Chinese bike assemblers yet to discuss future road map of the two wheeler industry,â€? Sabir said. importers/traders instead of direct imports. Sabir Shaikh feels that the government should abolish the condition from buying parts from commercial importers for the assembly of motorcycles. Currently, a number of assemblers are procuring smuggled parts from the markets due to the above condition. This mis-procurement leads to illegal assembly of vehicles, results in substandard production of vehicles and above creates an uneven playing field for genuine players. Most importantly, firms engaged in such unscrupulous activity are putting a colossal loss on
Assemblers feel that the increasing general sales tax by one per cent to 17 from 16 and to 19 per cent on non-register buyers in the 2013-2014 Budget is not a welcome move which has only pushed up the prices. The recent devaluation of the rupee against the dollar is causing sleepless nights to the assemblers due to rising cost of production due to import of parts at higher rates. Sabir said in the current environment all over Pakistan, motorcycle sales are getting depressed while the cost of production is rising due to losing value of the rupee against the dollar. As a result, the industry finds itself in hot water. The government should realize that this segment of the engineering needs little power and gas for running and the government should encourage them so that more jobs could be created. Chief coordinator APMA said low price bike assemblers are looking forward towards the government to immediately announce a motorcycle policy for which it should contact the stakeholders who are ready to give positive suggestions keeping in their vast experience. He was of the view that increase in taxes and duties would improve revenue and bring many sectors into the tax net but on the other hand making cheaper mode of transport costlier. It may noted here that every year a hail storm usually arrives after every budget speech by the finance minister and after each passing day the businessmen vent their anger after going through the Finance Bill. Similar exercise is also being repeated this year which is evident from outburst by FPCCI and other trade bodies over decisions taken in the budget. The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) recently held second post budget
Ministry of Industry Government of Pakistan
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Exclusive Article by Ali Hassan - continued
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In the last 10 years, there was huge sales tax evasion and under invoicing of imported parts due to non registration in sales tax by auto sector dealers all over Pakistan. APMA Coordinator urged the government to make such policies that could attract new investors and this can be done by simplifying laws meeting to discuss the anomalies in the Federal Budget 2013-14 besides reviewing the impact on the issues related to sales tax, income tax, customs duty and federal excise duty. Businessmen, who attended the meeting, feel this budget is bound to cause closure of industries besides encouraging the smuggling and leading to corruption. They further said that the Federal Budget has made Pakistani goods uncompetitive in the region and main focus has been on collection of taxes and revenue generation from the existing tax payers instead of broadening of tax base. They said that government has failed to bring wholesal e, distribution network and retailer with in sales tax net, the net burden to collect additional amount of sales tax has been passed on to the manufacturer, producer or importer of these items.
The Chinese bike assemblers,
Sabir said, have now set their eyes on ministry of finance and EDB for a good policy. The assemblers are highly hopeful especially from Mr. Ishaq Dar due to his vast experience. They hoped that Mr. Dar would take such steps which would encourage assemblers to come out with new models especially replacing the decades-old 70cc bikes which do not exist in any countries. He said that the government should bring a change by abolishing the SRO culture as Finance Minister promised in his budget speech. â€œThe government has also not called upon any meeting with Chinese bike assemblers yet to discuss future road map of the two wheeler industry,â€? he said. He recalled that in the last 14 years, Pakistan Automotive Manufacturers Association (PAMA) and PAAPAM had strong hold in policy making of the government including tax structure. Chinese bike assemblersâ€™ body (APMA) and various Chinese vehicle
manufacturers had failed to get representation in policy making. Sabir Shaikh reiterated that the government should knock the doors of small bike makers instead of repeating the stereotype practice by taking feedback from a leading Japanese bike assembler. In case the PML- N government maintains the same policy, which had been vogue for the last 14 years with a monopoly of some assemblers, then the auto sector will not prosper in coming years. Sabir said all zero rated imports must be fixed at minimum five per cent customs duty. In auto sector, all the Input Output Ratio
abolished immediately as it was cumbersome and time consuming exercise. Besides, he said the entire auto sector is burdened with many SROs and notifications and there must be one policy document or the SRO or notification for entire auto sector which will discourage corruption. Valuation advises and ruling issued in the last 10 years on auto sector should
â€œThe PML-N government should now come out by winning the confidence of the people belonging to various business fields. This can be done by creating a department in any ministry where people could feel easy in making contact. This will help the ministry to deliver good services and expertise. This will save time of the stakeholders and market players also.â€? Certificates (IORCs), which are valid up to June 30, 2013 should not be revalidated and one customs duty on imported parts and one customs duty on CBU imports (e.g. for two wheelers customs duty on CKD parts (localized or non-localized) should be fixed at 25 per cent. Currently non localized parts have 10 per cent customs duty and duty on localized parts is 38.75 per cent. He added customs duty on CBU two wheelers should be not more than 45 per cent which is currently over 50 per cent.
The government which issues lists for import through EDB to OEMs and assemblers should be
be scrapped immediately as they had only encouraged informal trade through various channels and mis-declaration. Due to this, a culture of smuggling of parts and other items has developed. Sabir said the government should also strive hard to register all dealers of two and four wheeler including all the entire auto sector stakeholders in the sales tax net. In the last 10 years, there was huge sales tax evasion and under invoicing of imported parts due to non registration in sales tax by auto sector dealers all over Pakistan. A P MA C o or d i n at o r u r ge d t he government to make such policies that could attract new investors and this can be done by simplifying laws...
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Exclusive Article by M. Owais Khan
Govt snatches option of imported used small cars Daihatus Cuore and Suzuki Alto to introduce any replacement of these hot selling brands. Surprisingly, when people are reluctant to buy small engine power vehicles due to limited options the sale of big engine power cars is showing positive growth. Perhaps Pakistan is the only country in the world where consumers have very limited choices in buying locally produced cars. After termination of nonEuro II vehicles like Daihatsu Cuore and Suzuki Alto last year, the situation becomes more alarming for buyers as Suzuki Mehran is the only locally produced car in 800cc category. It seems that no serious efforts have been made by the manufacturers of Daihatus Cuore and Suzuki Alto to introduce any replacement of these hot selling brands. Surprisingly, when people are reluctant to buy small engine power vehicles due to limited options the sale of big engine power cars is showing positive growth. Many consumers having over Rs 600,000 certainly cannot take the risk of buying Mehran. They take the risk of experiencing imported used cars of 660cc to 1,000cc. They must be feeling happy of getting good value of their spending in buying used imported cars whose feat ures and quali ty is incomparable to local brand. Sad news for the buyers is that an option of buying high quality used small vehicles is also becoming difficult as the markets are running out of fresh stocks ow ing t o falli ng impo rts. The government can be blamed in giving a shock to the lovers of high quality used cars by reducing age limit of used cars to three from five years. In every country, industries are set up to encourage local production and generate employment for local people but here the situation is different. Actually the responsibility lies on the assembler to introduce latest models when the volumes reach to a certain high level.
In Pakistan the leading small car assembler and even others continues to make excuses for bringing up new models due to lower sales volumes. However, it is not clear as to how much volumes the assemblers require since they started assembling cars in Pakistan. At least Pak Suzuki Motor Company Limited (PSMCL) should have been in forefront in introducing new models which are plying on the roads in other parts of the world. Due to governmentâ€™s patronage, the assembler is making money and fleecing consumers on investment on which the company has recovered much more from their expectations. In Pakistan situation is quite alarming as not only outdated locally assembled models especially in 800-1,000cc cars are available for sale but they lack features and quality standards which usually lure the new buyers. There are two types of consumers in Pakistan â€“ one is frightened to take risk of driving imported used cars while others feel happy in purchasing locally
made Mehran either under some c omp ul si o n o r o t her rea so ns . Many consumers feel that it is better to take costly ride by buying Suzuki Mehran due to its parts availability, after sales service and affordable prices of its parts. In contrast, prices of parts of some used imported cars are not only costly but are not easily available in the markets. Till how long the customers would drive Mehran. It was expected that restricting imports of used cars by cutting age limit and depreciation limit would open new sales avenues for Suzuki Mehran but 2012-2013 ended up in embracement for Mehran assembler which suffered sales drop. However, overall sales of locally produced cars in the country fell to 118,830 units in July-June 2012-2013 as compared to 157,325 units in the same period last fiscal year. Only Honda Civic and Honda City cars emerged successful in luring buyers at a time when Toyota Corolla, Suzuki Swift and Suzuki Liana sales plunged.
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Monthly AutoMark Magazine
Introduction of new models of 800cc will help the assemblers to improve their profits besides eroding share of imported used cars. If the government is looking forward for new entrants in bike assembling then it is high time to encourage new entrants of Europe, China and Korea through tax incentives which would also break the monopoly of current Japanese player. Honda Civic and City sales swelled to 9,950 and 11,285 units as compared to 4,977 and 7,142 units while Toyota Corolla, Suzuki Swift and Suzuki Liana sales dropped to 32,608, 6,096 and 164 units as compared to 46,207, 7,040 and 450 units respectively. Suzuki Cultus, Suzuki Mehran and Suzuki Mehran sales plunged to 13,308, 32,407 and 12,941 units as compared to 13,693, 35,131 and 22,540 units respectively. Completion of Punjab taxi scheme and price increase were the main reasons of causing dent to sales of Suzuki Mehran and Suzuki Mehran. On the contrary, only 26,525 units of used cars up to 1,000cc landed in Pakistan in 2012-2013. The reduction in age limit of used cars to three from five years besides cut in depreciation emerged the main reasons of drop in arrival of used cars. If the local industry would have been able to provide quality cars at affordable prices then the section of â€œLetters to the Editorâ€? pages of various newspapers, where people share their personal experience, would have not been loaded with criticism on the local car industry for minting money and operating as a cartel. Many people feel that why a buyer pays his hard-earned money to buy costly
overall sales of locally produced cars in the country fell to 118,830 units in July-June 2012-2013 as compared to 157,325 units in the same period last fiscal year. Only Honda Civic and Honda City cars emerged successful in luring buyers at a time when Toyota Corolla, Suzuki Swift and Suzuki Liana sales plunged.
locally produced small engine power old designed car which got a new engine of Euro II last year after a gap of over 20 years, while imported used cars were having Euro III and Euro IV engines with power steering and windows, air bags, safety features, new designs etc. Car makers try to take edge over the used imported cars by comparing the resale value, easy parts availability and fuel efficiency of locally produced vehicle but they skip comparing their vehicles in areas like quality, designs, safety features, etc. Even imported cars undergo crash test results which everybody is sure that this important aspect is ignored by the local assemblers. Due to lack of any presence of new entrants in car segment, assemblers especially Pak Suzuki knows that they will keep selling their cars till the people continue to buy. Arrival of non Japanese assemblers may force the existing car assemblers to reduce prices or at least improve quality, otherwise changes are slim to see big change in small locally produced car. The assemblers must now realize that what buyers want in their cars when they look other dashing and stylish used imported cars. It is to be seen how the PML-N government takes the issue of dwindling option in small car segment besides the concerned assemblersâ€™ practice of fleecing consumers on old models and engines. Otherwise, people feel that there is really no difference between PML-N and PPP government. People feel that why the Japanese assemblers do not realize that if millions of dollars are spent on importing used cars then it means that a big market exists for the local assemblers to cash it. Introduction of new models of 800cc will help the assemblers to improve their profits besides eroding share of imported used cars. If the government is looking forward for
new entrants in bike assembling then it is high time to encourage new entrants of Europe, China and Korea through tax incentives which would also break the monopoly of current Japanese player. The figures of 2012-2013 used car imports along with previous years, which suggest that the buyers definitely need good quality cars with all features. Car dealers say that the government should realize that import of small cars holds lionâ€™s share in total imports mainly 660cc engine power cars which are very light on fuel and give as much as 18-20 km per litre of petrol. It means that the buyers do not need a CNG kit and cylinder in his car. Even Hybrid cars do not give such good mileage. In July-June 2011-2012, the share of cars up to 1,000cc was 24,530 units. There is no issue of finding parts of imported used cars as the importers have loaded the markets with parts due to rising volume of used car imports in the last few years. However, with the volume of imports are on the decline, consumers may face problems in getting parts easily in the markets. Overall imports of used cars up to 1,000cc stood at 26,526 units in 20122013. However, the number of imports had started declining since the PPPcoalition government reduced the age limit of used cars to three from five years coupled with reduction in depreciation allowance in last months in power. The local car industry especially the maker of Suzuki Mehran must be happy now in view of receding volume of imports of used cars after governmentâ€™s decision. The assemblers are not in a hurry to bring any alternative of Alto and Cuore saying it is difficult to bring Cuore or 800cc car which costs $10,000-12,000 in world markets. Bringing these cars into local assembly would not prove financially feasible for the companies and it will cost more to the buyers, the assemblers said.....
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Monthly AutoMark Magazine
Energy Sector - Update
Govt fails to push thru poorly crafted energy policy The meeting was attended by Shahbaz Sharif, CM Punjab, Qaim Ali Shah, CM Sindh, Pervaiz Khattak, CM KP, Dr Abdul Malik Baloch CM Balochistan, Federal Ministers Khwaja Asif, Ishaq Dar, Riaz Hussain Pirzada, Shahid Khaqan Abbasi, Ahsan Iqbal, Pir Syed Sadaruddin Rashidi, Lt-Gen Abdul Qadir Baloch (retd) and others. The government has been unable to push through the energy policy from the Council of Common Interests (CCI) after t he p rov i nce s exp re ssed t he ir reservations and sought time to review the proposed amendments needed for the implementation of the policy, said sources privy to the meeting. Sources further revealed that the provinces also did not respond positively to the federal governmentâ€™s exhortation to generate a budget surplus, one of the prior actions of the International Monetary Fund (IMF) for a new programme. The provinces argued that they were not receiving their share from the divisible pool on time which was creating fiscal problems for them and delaying implementation of projects and therefore they could not give any commitment. An official said that the discussion focused only on the provinces generating a budget surplus and the federal government did not share terms of prior conditions of the $5.3 billion Extended Fund Facility (EFF) loan from the IMF. He told press media that the federal government stated that when the agreement with the IMF is finalized only then would its details be shared with the Council and the Parliament. The provinces also reportedly opposed the imposition of new taxes and underlined the need for effective compliance by the tax machinery of taxes already imposed. The official added that another meeting of the CCI would be convened in a week or two to consider the recommendations of the committee constituted by the Prime Minister with the Chief Secretaries of all four provinces and their technical experts,
representatives from ministries of Finance, Law and Justice, Water and Power, Petroleum and Natural Resources also in attendance. The committee would brief the provincial teamsâ€™ on the proposed amendments needed for National Power Policy and would try to remove the concerns of the provinces within one week and incorporate recommendations by the provinces, if appropriate, in the policy before approval and implementation. Sources said that the meetings of the committee would start from Monday 29 July onwar d to finalize the recommendations for submission to the CCI for approval. Meanwhile, a statement issued by the Prime Minister Secretariat stated that the Prime Minister Nawaz Sharif while addressing the 23rd meeting of Council of Common Interest (CCI) in Islamabad said that power scarcity is a major problem being faced by the country and
concerted efforts are needed to resolve the issue. He said that the power issue needs a policy which encompasses all dimensions and it also needs a strong will by the Federal Government as well as the federating units to make it successful. â€œProvincesâ€™ role is crucial in making the policy a success,â€? he added.
The Prime Minister said major problems being faced by the Power Sector are demandsupply gap, lack of affordability, inefficiency, and pilferage and power theft. He stated that major changes will be brought in the system to overcome these issues. Pakistan is producing 45% of electricity with furnace oil which is too expensive / costly for power generation and
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Monthly AutoMark Magazine
Energy Sector - Update
Indo-Pak power deal â€˜unfeasibleâ€™ An electricity trade deal between India and an energy-starved Pakistan appears to be far from reality as the formerâ€™s pre-condition of establishing High Voltage Direct Current (HVDC) system at the border requires three years and a $100 million investment, well inf ormed sources p ress media. Prime Minister Nawaz Sharif has approved, in principle, a summary of Water and Power Ministry on initiation of talks with India on the installation of a transmission line to connect with India. India has expressed willingness to export up to 1000 MW electricity to Pakistan but pre-conditions by New Delhi can lead to cause at least a three-year delay in completion of project. An Indian delegation led by Joint Secretary Rita Acharya visited Pakistan in June wherein different options on electricity trade came under discussion. The officials of both countries discussed broad contours of the proposed arrangement and explored proposals
which can be used to hook-up to the grid in Pakistan through HVDC line. â€œIf we set up HVDC system on the demand of India, it will take three years besides Pakistan will be required to invest $ 100 million. We hope by that time Pakistan will be able to generate sufficient power domestically,â€? the sources continued. According to sources, the Pakistani government has also offered to buy Indian electricity on an â€œindustrial islandâ€? to be set up near Lahore so that they can sell it to one destination only. This proposal, however, has not attracted a positive response from India. â€œWe need quick solutions not in years. Import of electricity from India in yearsâ€™ is not feasible,â€? said an official on condition of anonymity. The sources said that India maintained that Pakistan should go for spot buying from the electricity market, â€œwhich is a good option but experts have to work on its economic and technical aspects.â€? Indian Energy Exchange (IEX) offers a
national-level platform for trading electricity in India leading to a vibrant power market. IEX offers a broader choice to generators and distribution licencees at the national-level so that they can trade in smaller quantities and smaller number of hours without additional overheads. IEX stands in as the counter-party for all trades so participants need not be concerned about the risk-profile of other party. Minimal transaction overheads/ charges: All charges are displayed on the IEX trading terminals so there is no room for negotiation. The cost of transactions through IEX is much less than for any other mode of transaction. IEX enables participants to precisely adjust their portfolio as a function of consumption or generation. Participants, especially distribution licensees, are enabled to precisely manage their consumption and generation patterns...
has led to higher tariffs while distribution losses which account for 25-28% and theft of electricity amounting to Rs 140 billion per annum are major causes of the shortfallâ€?, the Prime Minister said.
as the power shortage. The Prime Minister said that the power strategy foresees bringing down the power tariff to a single digit in three years. The tariff restructuring is main feature of the new energy policy through which subsidies will be gradually rationalized. The 200 unit consumers will be targeted for subsidies. Prime Minister added that mismanagement and inefficiency of WA PD A a nd o t h er co n ce rn e d departments is responsible for this situation. They have miserably failed to maintain system and today our distribution lines cannot bear the burden. 1400 megawatts of electricity can be brought into the system, within one year, only through proper maintenance of the system, the PM added. Nawaz Sharif stated that the government has to take lead in power projects implementation strategy. He announced construction of Gaddani Energy Corridor which will provide services to investors for energy production. It will be a hub of electricity generation, the Prime Minister added. All Prov i ncial Chie f Mi ni sters
appreciated the energy policy presented by the government but requested the council for time to make a detailed analysis of the policy in order to further improve the policy. The Prime Minister directed to form a committee comprising Chief Secretaries of the four provinces and one nominee of each to submit their report within one week. The Prime Minister said that the implementation of the policy would not be an individual effort but a collective endeavour to overcome the power shortage and in this regard the input of the provincial governments will be very important. He highlighted the role of the provinces in reducing the incidence of power theft and power pilferage, asked for their cooperation in bringing down this phenomenon and promised all assistance to the provinces. The meeting was attended by Shahbaz Sharif, CM Punjab, Qaim Ali Shah, CM Sindh, Pervaiz Khattak, CM KP, Dr Abdul Malik Baloch CM Balochistan, Federal Ministers Khwaja Asif, Ishaq Dar, Riaz Hussain Pirzada, Shahid Khaqan Abbasi, Ahsan Iqbal, Pir Syed Sadaruddin Rashidi, Lt-Gen Abdul Qadir Baloch (retd) and others.....
Nawaz Sharif said that the government plans to end load shedding within the next 3-4 years through a multi pronged strategy. The strategy includes production of low cost energy, tariff restructuring, efficient technology transparency and merit based system. Low cost energy will be produced by using coal and hydel resources for power generation. The extraction of coal and development of the infrastructure for power production will be carried out simultaneously to save time. Till such time that the local coal is available, it will be imported for power consumption, added Prime Minister. He said that run of the river projects are being initiated to overcome the short term demands while large dams including Bunji dam and Bhasha dam will be constructed over a period of time to overcome the irrigation needs as well
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Monthly AutoMark Magazine
Automotive Sector - Update
Enforcing discipline in car market The federal government is actively evaluating policy options to discipline a few automakers stated to be manipulating the car market. They are accused of using their dominant market position to flout norms of fair trading practices. â€œ Yes, we are monitoring their (car makersâ€™) behaviour. They cannot be allowed to charge extra at whim, especially on a big ticket item (car) in a country where hardly 10 people in 1,000 have a four-wheeler,â€? responded a senior member of the governmentâ€™s economic team. He was reached in Islamabad for comments on a report regarding the upward revision in prices of vehicles that were sold before the budget, on the plea of the increase in the GST rate from 16 to 17 per cent. Atlas Honda and Toyota have reportedly sent letters to purchasers to deposit the balance of what they project as cost differential after the budget 2013-14. These purchasers are still waiting for the delivery of the vehicles they bought weeks before the budget. Pak-Suzuki has decided to internalise the additional cost. â€œAdding insult to injury, I received a letter telling me to deposit Rs15,000 before July 10 with the company. This is absolutely atrocious. First they fail to give the car I paid for months back, and now they are penalising me for their incompetence,â€? an irate buyer told Dawn.
â€œIf I could have my way, I would have dragged the company to a court of law. I leased the car through a bank. I have copy of the receipt of full payment to the company before the announcement of the budget. They should have handed over the car as soon as they received the payment draft,â€? this buyer said, and emailed the relevant receipts to Dawn to substantiate his plea. The hierarchy in the relevant ministries regretted the attitude of the carmakers,
was outmaneuvered by the automakersâ€™ lobby when he moved a summary to open up the sector by liberalising car trade.
and informed from Islamabad that they were studying the situation before making a move to put things right. â€œThere is no justification for the carmakersâ€™ behaviour. The government has continuously been interacting with them over the issue. The persuasion has clearly not worked. We believe that the best way to deal with such stubborn elements is to facilitate new entrants. The increased market competition will force the auto industry to become efficient and responsible,â€? a senior bureaucrat in a relevant ministry told Dawn over t he telephone from Islamabad. â€œThis is easier said than done. Tycoons in the automobile industry have cultivated support in powerful quarters. They might not be sacred cows, but the way they manage to wriggle their way out of tight corners speaks of their influence in Islamabad,â€? commented a market expert.
A former deputy chairman of the Planning Commission of Pakistan told Dawn that he
â€œThe people of the country are not getting value for their money. They deserve better,â€? he said, while referring to the outdated, low quality car models produced in the country. â€œFor how many more years will the industry be pampered at the cost of consumers,â€? he asked, while dismissing the position that advocates protection to broaden the manufacturing base. Shafqat Hussain Naghmi, federal secretary of the ministry of industries, confirmed over the telephone from Islamabad that the government would soon announce a five-year policy for automobile industry.
â€œThe devaluation of the rupee has narrowed down the scope of car imports. We are, therefore, looking with interest at proposals from carmakers in Europe and China. Ideally, we would like companies to locate their plants in Pakistan,â€? he made a point. â€œIn case carmakers show reluctance in putting up a major plant, we would encourage them to put up their assembly plants here, as it would serve their business interests and also suit Pakistan,â€? he asserted. Meanwhile, senior officers in car companies defended their policies and highlighted their contribution to the economy as a major employer and a contributor to the national exchequer. On the issue of recent letters to customers asking for additional payment, they said that it was part of the deal between the company and the
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continued on next page
Monthly AutoMark Magazine
Automotive Sector - Update
Millat Tractors launches new models Millat Tractors Limited has launched its two new models at a local hotel. This impressive ceremony was attended by farmers, industrial customers, dealers, vendors and government high officials. Syed Muhammad lrfan Aqueel, CEO, Mi llat Tractors, wel comed t he distinguished guests and elaborated about the features of newly launched tractors. MF 350 Plus (50 HP) and MF 360 (60 HP) are manufactured keeping in mind agricultural and farming needs of small and medium scale farmers while staying cost-effective. These tractors are produced with an aim to provide affordable and efficient solution for the customers. New tractor models MF 350 Plus & MF 360 are equipped with robust straddle rear axle, epicyclic reduction unit, hydrostatic power steering and oil immersed multi disc brakes. Guests present at the event admired the features
of the new tractor models. Company hopes to hit huge sales through these tractors. The chief guest Secretary Agriculture Punjab Dr. ljaz Munir appreciated MTL role in national economy and boost of Agri Sector and Congratulated MTL team for the success assured Govt.â€™s commitment to support farming community, particularly, through subsidy schemes like Green Tractor Scheme Punjab and other measures to boost the mechanization process.
customer. â€œThe customers have not been tricked. Our booking form clearly states that the price at the time of delivery will be applicable. It implied that any change/increase in government levies/taxes/duties would have to be borne by the customer,â€? a senior officer of car company told Dawn. He denied the market practice of charging â€˜onâ€™ money, and could not satisfactorily explain the delay in the delivery of cars to the customers. Buyers allege that the car companies use their money for as a long as they can manage to avoid bank borrowings and save financial charges. Under the reported market practice, as much as 7-15 per cent is charged over the quoted price of cars from customers. Automakers call this â€˜onâ€™ money that has to be deposited for quicker delivery of the vehicle. Pervez Ghias, chairman of the Pakistan Automotive Manufacturer Association, was reached over the phone but was not able to spare time for comments. Rahat
Kunain Hasan, chairperson of the Competition Commission of Pakistan, was in Geneva for business, and no one else was ready to record his comment over why the Commission has not been able to check car market manipulation by a few players. In a transformational Pakistani society, the car industry has a huge potential. However, three automakers â€” Suzuki, Honda and Toyota â€” share among themselves about 70 per cent of the car market. Imported second hand cars cater to a part of the remaining market. The automotive industry is the fifth largest sub-sector of manufacturing. The latest Pakistan Economic Survey records an overall minus 11 per cent growth in the sector during FY2012-13 as compared to the corresponding period last year. The slackness was attributed to sluggish economic growth, political uncertainty, and a temporary, marked shift in policy towards import of used cars. Th e lo n g t er m Aut o i nd us t ry Development Programme 2007-12
Mr. Andreas, MD AGCO, said that they are proud of relationship with Millat Tractors and now Pakistani produced tractors would be taken to the export market. Mr. Sikandar Mustafa Khan, Chairman Millat group limited also addressed the occasion and highlighted the role of tractor industry in the national economy. He said that local tractor manufacturing industry is not only sufficient in meeting tractor demand of farmers nationwide but this industry in collaboration with its vendors is also a source of employment for thousands of people. MTL is also committed to strengthen the nation economically by paying off due taxes and by helping to save precious foreign exchange reserves through localization of tractors.
expired, and stakeholders say that their future plans will hinge on the governmentâ€™s next auto poli cy. Despite growing in size, the industry did not fare well in transfer of technology and indigenisation of vehicles. The lack of compet ition has resulted in technological stagnation. The old model, small cars produced by Pak- Suzuki use obsolete technology. The auto industry contributes about three per cent to GDP and about 15 per cent to the manufacturing sector. The industry was highly regulated till the early 1980s. After deregulation, Japanese manufacturers entered Pakistan. Assemblers of Hino trucks, Suzuki cars, came in 1984, Mazda trucks and Toyota in 1993, and Honda in 1994. The assembly of Daihatsu and Hyundai cars (1999), beside some brands of LCVs and mini-trucks, commenced much later. The industry boomed in the middle of the last decade, when sales peaked because of low interest rates and an increase in car leasing....
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MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST
70cc Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6.
Product & Model Name Dhoom YD-70 Hero RF-70 Hero RF-70 Plus Honda CD-70 Hi-Speed SR-70 Ravi Premium R1
Retail Price Rs. 50,400/= Rs. 46,000/= Rs. 47,000/= Rs. 68,500/= Rs. 43,000/= Rs. 46,950/=
125cc Motorcycle No. Brand & Model Name 1. Super Star SS-125 2. Super Star SS-125 DLX 3. Honda CG-125 std Euro II 4. Honda CG-125 DX 5. Ravi Storm 125
Retail Price Rs. 59,000/= Rs. 67,000/= Rs. 99,000/= Rs. 119,000/= Rs. 99,900/=
DYL Motorcycles Product & Sr./ No. Model Name 1. YD100 Mini 2. Junoon 100cc 3. YD Sports 125cc
Retail Price Rs. 65,500/= Rs. 79,300/= Rs. 10,6000/=
Sr./ No. 7. 8. 9. 10. 11. 12.
Product & Model Name Ravi Hamsafar-70 Sitara GT-70 Super Star SS-70 Super Power SP-70 Super Power Delux Unique UD-70
Retail Price Rs. 45,450/= Rs. 40,000/= Rs. 44,000/= Rs. 44,700/= Rs. 48,200/= Rs. 44,000/=
100cc Motorcycle No. 1. 2. 3.
Brand &Model Name Honda Pridor Super Star SS-100 Super Power SP-100
Retail Price Rs. 84,000/= Rs. 57,000/= Rs. 60,000/=
Suzuki Motorcycle Sr./ No. 1. 2. 3. 4.
Product & Model Name Sprinter ECO 110cc Sprinter STD 110cc Suzuki GS-150 Suzuki GD 110
Retail Price Rs. 79,400/= Rs. 80,400/= Rs. 103,500/= Rs. 99,900/=
This space available for Advertisement www.automark.pk | August-2013 | Page 31
Alternative Energy Sector - Update
Monthly AutoMark Magazine
Solar power â€“ an end to energy crisis? The government has leased 1,500 acres of land in Khuchlak and Pishin for the project, which is expected to overcome the shortfall of electricity in province. The government is also planning to install 20 solar powered water pumps in ten districts of the province under water supply schemes. The trend of installing solar panels for residential and commercial purposes is increasing with every passing day, and is beginning to look like the foremost solution to the countryâ€™s growing energy scarcity problem. An on-grid solar power generator of 178 KW, installed at Pakistan Engineering Council (PEC), has set the precedence for defining procedures and strategies at the national level for on-grid solar power generation. This project is the first of its kind in the country, as the excess electricity will be delivered to the national grid under a feed-in tariff (FIT) regime. According to sources, the government plans to illuminate 250 houses (300 watts) with solar panels in rural areas. Furthermore, more than 500 people will get indirect employment due to the activities generated in the field of rural electrification through solar energy. Around 51 scientists, engineers, technicians, skilled and semi-skilled people will also get direct employment in the production of high quality solar panels initiated by the Pakistan Council of Renewable Energy Technologies (PCRET). The basic objective of this project is the up-gradation of silicon crystal growing and wafering, cell fabrication and lamination facilities. It will also help enhance the indigenous production of solar cells and modules up to 80 KW per annum, along with the promotion of clean and renewable solar energy through the photovoltaic process. â€œThis project of production of solar panels has been designed to upgrade the facilities to produce 80 KW photovoltaic modules per year,â€? said an official. He added that the project is meant to promote clean energy technology, and the utilization of this product will save an additional 43 tonnes of carbon dioxide. After the production of 80 KW, it will
generate power equal to 173 megawatt hours (MWh) annually and, in ten years time, even 9.5 gigawatt hours (Gwh). This is equal to 900 tonnes of Kerosene oil in 10 years, which will reduce carbon dioxide emissions by 2,365 tonnes. Recently, a Korea-based energy company, CK Solar Korea, has signed a Memorandum of Understanding (MoU) with the Balochistan government for the installation of a 300 MW solar power plant. The plant, which is being developed in Quetta, will cost the developers nearly 900 million dollars, and is expected to be completed by 2016. The government has leased 1,500 acres of land in Khuchlak and Pishin for the project, which is expected to overcome the shortfall of electricity in province. The government is also planning to install 20 solar powered water pumps in ten districts of the province under water supply schemes. Punjab has one of the highest solar radiation amounts in the world and has the potential of producing in excess of a million Mega Watt of energy per annum from solar, revealed a number of reports compiled on the solar power potential of the province. â€œIn Punjab, Cholistan and two other sites have been earmarked for solar projects of 10, 30 and 50 MW in sizeâ€?.
SOLAR AUTO RICKSHAW ON CARDS: As part of the initiatives being taken by the government to overcome the energy crisis in Pakistan, the government has introduced solar auto rickshaw which will reduce dependence on costly fuel. The Senate has recently been informed that â€œSolar Auto Rickshawâ€? technology has successfully been developed indigenously to help overcome the acute shortage of energy and rising costs of fuel. Federal Minister for Science and Technology Zahid Hamid has told the Hous e tha t U nite d Se rvice s International Group (USIG) of Lahore and Pakistan Institute of Technology for Minerals and Advance Engineering Materials Lahore had developed the technology through collaborative research. He said that the rickshaw is now ready for operations and would use solar energy instead of petrol or Compressed Natural Gas (CNG). He further said that the cost of one solar auto rickshaw was about Rs 2, 30,000 which could be easily covered in one year, adding that its normal speed was 50 to 70 kilometers per hour. The solar rickshaw operated on five solar panels along with five batteries and was driven by one Direct Current (DC) Motor.....
www.automark.pk | August-2013 | Page 32
Monthly AutoMark Magazine
PAK CHINA COOPERATION
Punjab government, China firm sign MoU for Ring Road construction A Memorandum of Understanding regarding construction of Western Loop of the Ring Road Lahore was signed between Punjab government and international Chinese company, China Civil Engi neering Const ruction Corporation, here on Wednesday. Chairman Ring Road Authority and Director Overseas Corporation of China Civil Engi neering Const ruction Corporation signed the document. Chief Minister Shahbaz Sharif , Provincial Minister for Housing, and concerned officers were present. Under the agreement, the Chinese Corporation will take part in the bidding process of construction of 26-kilometer long portion of Ring Road from Multan Road Maraka to Niazi Interchange which has been named as Western Loop. Besides, provision of experts, the Corporation will also plan and designed the project. Chief Minister said on the occasion that Lahore Ring Road will be completed under a phased programme in accordance with international standard and in the next phase, the Western Loop from Multan Road Maraka to Niazi Interchange will be constructed. He welcomed the interest shown by an international Chinese company in the construction of the Western Loop of the Ring Road. The Chief Minister said that the cooperation of Chinese investors in various sectors in Pakistan is highly appreciable. Speaking on the occasion, the officials and experts of China Civil Engineering Construction Corporation observed that China and Pakistan are bound together in strong bonds of friendship. They also expressed their interest in investment in ring road project, mono rail and metro project in Punjab. They expressed their satisfaction that a favourable investment climate exists in Punjab. They said that the interest taken by Chief Minister Shahbaz Sharif in foreign investment has encouraged them. Meanwhile, a Memorand um of
Und erstand ing regardi ng sol ar development project has been signed between Punjab government and an international consortium of five countries including Switzerland, Germany, Italy, Austria and Pakistan. Chief Minister Shahbaz Sharif, Energy Minister Sher Ali Khan, Secretary Energy and senior officials of concerned departments were present. Secretary Energy Usman Bajwa and Chief Executive Officer and Group Chairman of Swiss Company STCS AG Rainer Kertess signed the document on behalf of Punjab government and the international consortium respectively. Under the agreement, the international consortium will set up a plant of assembling and manufacturing of solar panels, solar cells and batteries in Faisalabad. The consortium will also consider the project of setting up 400 solar power projects each near industrial zones in Faisalabad, Sialkot, Gujranwala and Lahore while a 150-megawatt power plant will be set up along the motorway from Pindi Bhattian to Faisalabad. The consortium will also introduce solar pumps for agriculture sector in Punjab besides street lights in big cities of the province as well as those installed at Ring Road will be gradually converted
to solar power. The consortium will also consider introduction and implementation of zero energy building system for large buildings besides evolving a project of supply of off-grid energy to industrial zones.
BYCO announces Rs 26,697 million net sales for half-year Byco Petroleum Pakistan Limited (BYCO) announced net sales of Rs 26,697 million for the half-year ended December 31, 2012. This is a significant increase of 220 per cent during the same period, 2011, when the company posted net revenue of Rs 8,329 million reflecting the reliability and robustness of the core refining and marketing business. BYCO earned profit before depreciation and amortisation, interest and tax of Rs 647 million as compared to a loss of Rs 464 million SPLY. According to the press statement issued on last month Asad Azhar Siddiqi, Chief Financial Officer, Byco Petroleum said, "This was primarily due to the higher refining and marketing margins as compared to last year." Byco Petroleum Pakistan Limited's refined a total of 2,801,107 barrels averaging 20,152 barrels per stream day. ....
www.automark.pk | August-2013 | Page 33
Monthly AutoMark Magazine
Automotive Sector - Update
Car sales fall by 24.46% in FY13
Sales of locally assembled cars have declined by 24.46 percent (including LCVs, vans and jeeps) in financial year (FY) 2012-13 to 135,313 units as compared to 179,139 units in FY 201112, Pakistan Automotive Manufacturers Association (PAMA) revealed on month. Topline Securities analyst Muhammad Tahir Saeed mainly attributed this decline to used cars imports, price hike and termination of two cars (Alto and Coure) due to EURO-II compliance, completion of Punjab government taxi scheme and Compressed Natural Gas (CNG) ban. All these factors severely affected cars demand to 57,540 units in first half of FY 2012-13. However, some recovery was observed in second half of FY 2012-13 to 77,773 units due to restrictions on imported used cars and improving auto financings. Passenger car sales alone in FY 2012-13 declined by 24.46 percent to 118,830 units as compared to 157,325 units in FY 2011-12. Similarly, on yearly basis car sales dropped by 29 percent to 11,577 in June 2013 as against of 16,310 units in June 2012 while on monthly basis sales dropped 2.0 percent as compared to 11,786 units in May 2013. Data further revealed that 1300cc and above engine capacity segmentâ€™s sales
fell 9.0 percent to 60,103 units in the whole FY 2012-13 as compared to 65,816 units in FY 2011-12 while on yearly basis this segmentâ€™s cars sales contracted by 13 percent to 6,406 in June 2013 as against 7,358 in June 2012. However it has improved 3.0 percent on monthly basis as compared to 6,235 units in May 2013. The cars, with engine capacity of 1000cc and above also witnessed massive drop in sales by 56 percent to 13,308 units in the FY 2012-13 in an opposition to 29,981 units in the FY 2011-12. On yearly basis this segmen tâ€™s car sales extraordinarily dropped by 69 percent to 1,002 units in June 2013 as against 3,247 units in June 2012 while on monthly basis sales fell by 28 percent in contrast to 1,394 units in May 2013. Likewise, 800cc and below segmentâ€™s cars sales witnessed 26 percent decline during the FY 2012-13 to 45,419 units as compared to 61,528 units in FY 201112 while this segment sales witnessed a drop of 27 percent to 4,169 units in June 2013 as against 5,705 units in the corresponding month of FY 2011-12. However it has increased meagerly by 0.28 percent as compared to 4,157 units sold in May 2013. In FY 2012-13, Pak Suzuki Motor Company (PSMC) sales declined by 33
Promotion of academia-industry linkages importantâ€™ Promotion of strong academia-industry linkages is very important to accelerate the pace of industrialisation and produce high value products. Prof Dr Nazir Ahmad Sangi Vice C hancellor Allama Iqbal O pen University talking to Zafar Bakhtawari President, Islamabad Chamber of Commerce and Industry (ICCI) said universities could not operate as isolated islands of knowledge because knowledge has no value unless it was shared and focused on current needs. Therefore, bridges need to be built to connect universities with clusters of industries to meet the emerging needs of society. He said international conferences of academia should be made useful and
productive with the collaboration of business community to develop linkages between business and academia at local and international level. He informed AIOU was going to organise the 27th Conference of Association of Asian Open Universities on October 1-3, 2013 at Islamabad on the theme â€˜Leveraging the Power of Open and Distance Learning for Building a Divergent Asia: Todayâ€™s Solutions and tomorrowâ€™s Visionâ€™ and ICCI should cooperate in this event. About 200-250 participants from around the world would participate in the conference and it would be a unique opportunity to highlight the soft image of Pakistan to the outside world. staff report...
percent to 75,650 units versus 112,157 units in the same period last year. However, on monthly basis, PSMC sales remained stable at 6,990 units in June versus 6,971 units in May 2013. Similarly, Indus Motor Company (IMC) sales also went down by 31 percent to 37,776 units in FY2012-13 as against 54,477 units last year. Decline in sales is mainly attributed to 29 percent softness in â€˜Corollaâ€™ sales to 32,608 units in the year and termination of â€˜Coureâ€™, said Saeed. IMC sold 71 â€˜Coureâ€™ units in FY 2012-13 as against 3,857 units in FY2011-12. On monthly basis, IMC sales improved by 13 percent to 4,243 units in June as compared to 3,768 units in May 2013. Individually, â€˜Corollaâ€™ sales increased by 9.0 percent on monthly basis to 3,639 units while â€˜Hiluxâ€™ sales increased by 53 percent to 418 units in the month. With diminishing inventory of used imported Complete Build-up Units (CBUs) in the market, the analyst foresees strong recovery in local car sales i n F Y 201 3- 14 as 20 p er cen t improvement in overall locally assembled cars to 162,000 units is expected, including 90,000 for PSMC and 46,000 for IMC.
As CNG sector consider shifting investments Once a popular profitable venture which any businessmen who could afford the initial investment, wanted to take, the business of compressed natural gas (CNG) stations has lost its appeal at least in Punjab, where the majority of station owners have prepared themselves to shift investments to other sectors. The tussle between the apex body of CNG station owners â€“ APCNGA and the government over dispute of partial closure of the sector is no more a secret. The previous government had often expressed its intention of shutting the sector down, and the incumbent government was also following the trail left the Pakistan Peoples Part-led government on the issue, leaving the majority of station owners uncertain about the future. In a fresh move, Sui Northern Gas Pipelines, following the Supreme Courtâ€™s orders, sealed around 500 CNG stations in Punjab and around 74 in KhyberPakhtunkhwa.
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Monthly AutoMark Magazine
Automotive Sector - Update
8th Expo Pakistan 2013 Buyers from 75 countries likely to participate Hundreds of buyers from 75 countries are expected to participate in the 8th Expo Pakistan 2013 which is scheduled to be held form September 26-29 at Karachi Expo Centre this year. Director, Trade Development Authority of Pakistan (TDAP) Athar Hussain Khokhar while talking to media at his office last month, said TDAP has the conformation of foreign investors' having impressive profiles who will be attending this mega event. He said the fair is non stop forum for the foreign buyers to view the Pakistani export products and develop long term business relations for enhancing export f rom Pakist an. H e said maj or international delegations from Malaysia, Indonesia, Hong Kong, Poland, Brazil, Argentina, United Arab Emirates (UAE),
United States of America (USA), and United Kingdom (UK). He added our missions abroad are holding events, seminars and exclusive meetings which would encourage buyers to attend the event. He f urt her sai d the top most manufacturing and export associations, including Engineering Development Board (EDB), Surgical Instruments Manufacturer Association (SIMA), Gloves Manufacturing Association (GMA), Pakistan Carpet Manufacturers Association (PCMA), Sports and Goods Manufacturers Association, Upholstery and Bedware Association, Towel Manufacturer Association (TMA), AHAN, Rice Exporters Association of Pakistan (REAP), and Marble products would be focused. He said this event
would be the showcase for Pakistani exhibitors. He further said, "we have locally called meetings with product associations at Sialkot, Faisalabad, Islamabad and Karachi, all the associations have shown their keen interest to participate in this event. Exhibitors have shown positive response and appreciated TDAP's initiatives, and agreed reserving their space. He said that Expo Pakistan has been a reputable event for last seven years, where 2,000 Pakistani exhibitors and 3,000 foreign investors have attended the events. Replying to a query he said TDAP has also appreciated Sindh government and other government agencies support that have ensured their full support in managing the event in a proper manner. .....
EDB, TDAP Engineering Pavilion at Expo Pakistan The Engineering Development Board (EDB) joined hands with Trade Development Authority of Pakistan (TDAP) for organising Engineering Pavilion at Expo Pakistan 2013 scheduled to be held from September 26th to 29th, 2013 at Expo Centre Karachi. Over the last seven years, Expo Pakistan has been developed into a reputable international event which showcases the largest collection of Pakistani Exportable Products, over 2000 Pakistani exhibitors and 3000 foreign visitors, most of them representing large buying houses and reputable foreign Brands have attended the previous events. This fair is a one stop forum for the foreign buyers to view full range of Pakistan export products and develop long term business relations for enhancing exports from Pakistan.
This year as well confirmations of foreign visitors, having impressive profiles, have been received, who will be attending the event. Thus it would be the excellent opportunity for the engineering industry to showcase their products in this exhibition. In order to make the event successful for the country, EDB has invited engineering industry to take active part
in Expo 2013 and increase prospects of their exports and attract foreign buyers. EDB is looking forward to field almost 50 leading engineering companies from various sub-sectors in the Expo. In continuation of EDBâ€™s efforts to enhance engineering goodsâ€™ exports EDB intends to brand the Engineering Pavilion as â€œEngineering Pakistanâ€?. It is pertinent to mention that EDB has been succe ssfully organising I nt ernati on al Trad e F airs an d Exhibitions exclusively for Engineering Industry of Pakistan and has exposed the local industry to the latest technologies. As a result of EDBâ€™s market expansion efforts, many industries entered into Joint Ventures with international companies and new export markets were tapped by the Pakistani businesses.
www.automark.pk | August-2013 | Page 35
Car / Light Vehicle Price List This space available for Advertisement SUZUKI
Price Price Rs. 600,000 Rs. 658,000 Rs. 1,181,000 Rs. 1,262,000 Rs. 1,398,000 Rs. 1,014,000 Rs. 1,465,000 Rs. 1,544,000 Rs. 680,000 Rs. 656,000 Rs. 2,218,000 Rs. 2,294,000 Rs. 2,142,000 Rs. 2,293,000
MEHRAN VX 800cc Euro II MEHRAN VXR 800cc Euro II SUZUKI SWIFT 1.3L DX SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic CULTUS Efi VXRI Euro II LIANA 1.3L RXI MT PETROL LIANA 1.3L RXI MT (CNG) BOLAN VAN VX Petrol Euro II SUZUKI VAN CARGO Euro II APV 1.5L GLX MT (Petrol) APV 1.5L GLX MT (CNG) JIMNY CBU JL SX MT JIMNY CBU JL DX MT
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
MASTER MOTORS DAIHATSU
Master Highland M-260 Master Forland M-330 SUP Master Grand M-410 SUP
Honda Honda Honda Honda Honda Honda Honda Honda
Model CRV Automatic 2400cc Japan Accord Automatic 2400cc Japan City Manual 1300cc City Prosmatec 1300cc HYUNDAI Civic VTI Manual 1800cc Civic VTI Manual SR (Oriel) Civic VTI Prosmatec 1800cc Civic VTI Prosmatec SR (Oriel)
Price Rs. Rs. Rs. Rs. Rs. Rs.
1,522,000 1,663,000 2,000,000 2,232,000 2,121,000 2,353,000
TOYOTA COROLLA Model Model Price Price XLI VVT-i 1.3 M/T 1299cc Petrol Rs. 1,551,500 GLI VVT-i 1.3 M/T 1299cc Petrol Rs. 1,687,500 GLI VVT-i 1.6 A/T 1599cc Petrol Rs. 1,868,500 GLI VVT-i 1299cc LE Rs. 1,732,500 2.OD STD 2000cc Rs. 1,839,500 ALTIS 1.6L Dual VVT-i MT Rs. 1,919,500 ALTIS 1.6L Dual VVT-i MT SUNROOF Rs. 2,015,500 ALTIS 1.6L Dual VVT-i AT Cruisetronic Rs. 1,997,500 ALTIS 1.6L Dual VVT-i AT SUNROOF Rs. 2,105,500 Toyota Avanza (Up Specfication) Rs. 2,575,000 Hiace Commuter STD 3.0L Rs. 3,444,000 Hiace Commuter STD 2.7L - GASLOLINE Rs. 3,433,500 Coster High Roof 26 Seater F/L
Hilux Pickup 4x sc Model
Brand New Toyota Hilux Pickup, 4x2, Single Cabin, (Local Assembled)
Hilux Pickup 4x4 D/C Model Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model
Price Rs. 3,483,200
Rs. 1,188,000 TOYOTA VIGO Rs. 1,235,000 LAND ROVER Rs. 1,720,000 Model Price Price Model Price Model Master Grande Bus Chassis YL41B Rs. 1,625,000 Vigo Champ M/T Rs. 3,282,500 DEFENDER Fuso canter (Japan) Bus Chassis Rs. 2,950,000 (WHITE ,BLACK,STRONG BLUE & SILVER ) STATION WAGON 90 Rs. 3,560,000 Fuso canter (Japan) Rs. 3,025,000 Vigo Champ A/T Rs. 3,483,500 STATION WAGON 110 Rs. 4,260,000 Fuso Prime Mover (Japan) Rs. 9,450,000 (N/A)
Unit Price without Deck (WHITE ,BLACK,STRONG BLUE & SILVER )
Price updated Aug- 2013
Automotive Sector - Update
Monthly AutoMark Magazine
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Exclusive Article by Syed Mansoor Ali
Current developmental projects include the construction of 7 or 8 dams, anew airport in Islamabad, Iran-Pakistan gas pipeline, Karakoram highway being upgraded to a double road, HyderabadKarachi and Faisalabad â€“ Multan motorway, increasing development of Gwadar, and many other major projects, like the Thar Coal project are underway, all of which demand machinery. The p icture is not all gloomy; periodically government institutions and e x te r na l ag e nc i e s h av e supported Pakistan with grants to purchase machinery for different projects. Unfortunately those machines were not utilized to their capacity and did not complete their working life because of the absence of good dealers who are the backbone of keeping the machines running by providing timely warranty services, aftersales service, spare parts, operators training, workshop training and necessary product backup support. Therefore, it is imperative to ensure, particularly, for new machines that a proper dealer is present to look after the machines in order to make effective use of these machines.
Monthly AutoMark Magazine
Potential Potential of of Construction Construction Machinery Machinery in in Pakistan Pakistan
Syed Mansoor Ali Pakistan is a developing country with anenormous potential to get developed in a short span of time as God has bestowed this land with excellent manpower, with majority falling in the working age, mountains full of minerals, rivers, tourist sites, agricultural lands, Asiaâ€™s largest irrigation system, abundant vegetables and fruits, large cash crops, suitable weather, fertile land and deserts,worldâ€™slargest coal reserves, china clay, marble, and granite, almost every terrain and weather due to long spread of latitude. All these factors coupled with its geographical location,
Pakistan enjoys a key position in southAsia. These factors have granted the country a strategic position in the eyes of world powers that are interested in business and development in Pakistan. On the contrary, the ground reality portrays a darker picture dueto the nationâ€™s inability to tap into these resources. Besides other deficiencies, the construction machinery sector, which should be given priority on account of tremendous potential of development in each area, is ignored badly. The provision of acquiring new machines is extremely difficult due to
www.automark.pk | August-2013 | Page 39
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Exclusive Article by Syed Mansoor Ali
Monthly AutoMark Magazine
Considering the demand of the construction machinery, our financial institutions, leasing companies, and other financial bodies should come forward to extend financing for construction machinery to promote and encourage the use of new machines towards the development and prosperity of the country. The financing should be project based following the example of the Stone Development Corporation on howthey financed machinery, trained manpower, and assisted sale of marble from private sites(areas controlled by landlords) until the machines were fully paid off. absence of financial mechanism and easy solutions for the end-users. There are no retail and proper renting outlets available in the country. The government departments are starving due to funding difficulties. As a result, we are unable toexploit these natural bounties by developing tourist sites, cleaning canals, rivers and dams, reclamation of agricultural lands, infrastructure such as rural to urban roads, linking of big cities, coal mining, marble, china clay and granite excavation, oil and gas, and many others, that require heavy machinery.
Although in order to meet basicrequirements, this industry is importing around 2000+ secondhand construction machinery and approximately 200 new machines each year, but this volume is insufficient when looking at the jobs needed to be accomplished swiftly. Current developmental projects include the construction of 7 or 8 dams, anew airport in Islamabad, Iran-Pakistan gas pipeline, Karakoram highway being upgraded to a double road, HyderabadKarachi and Faisalabad â€“Multan motorway, increasing development of
â€œOn the other hand the state of old/used machinery demands government intervention to stop mass in flow of used construction machinery from Afghanistan due to slow down or complete halt of development projects over there (in 2014 NATO is pulling out their armies from Afghanistan). These machines were exported around 2005-2008 during Gen. Musharrafâ€™s government when business activities in Afghanistan were at their peak. â€œ Gwadar, and many other major projects, like the Thar Coal project are underway, all of which demand machinery. Provincial governments, private entrepreneurs and construction companies need machinery such as bulldozers, excavators, wheel loaders, backhoe loaders, motor graders, and many other machines. The escalating prices of diesel, high maintenance costs, and environmental awareness, are now even compelling buyers of old machines to go for new machines to be more cost effective, productive and efficient. On the other hand the state of old/used machinery demands government intervention to stop mass in flow of used
c o n s t r uc t i o n m a c h i n e r y f r o m Afghanistan due to slow down or complete halt of development projects over there (in 2014 NATO is pulling out their armies from Afghanistan). These machines were exported around 20052008 during Gen. Mu sharrafâ€™s
www.automark.pk | August-2013 | Page 40
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Exclusive Article by Syed Mansoor Ali
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There are three prominent companies like Orient Energy Systems (New Holland Construction Machinery), Allied Engineering and Services Ltd (Caterpillar) and Jaffers Brother Ltd (Komatsu) providing necessary infra-structure to market new machines in Pakistan. However, the market segment for them is mainly limited to government tenders. There is a long list of second hand machinery retailers. Usually these machines are imported from Dubai, Korea, Japan and Canada. government when business activities in Afghanistan were at their peak. At first place these machines were already â€œusedâ€? when imported by Pakistani importers from different countries. One can imagine the physical state of these machines after an exhaustive/extensive use in different constructions projects in Afghanistan. It is said that during these years average 7000 machines /year were imported by Pakistani companies. Due to high demand in neighbouring Afghanistan 70% of these machines were sold there in hefty prices. The demand could be gauged from the fact that the rent of an excavator or other major construction machinery was three to four times higher than Pakistan. The back flow of these machines will turn Pakistan into a massive junk yard and/or the machines fixed to put to work will have brutal effect on productivity, operating cost and environment. Consultations with various usedmachinery importers revealed that new machines are required but due to weak purchasing power of buyers, no easy availability of bank loan /leasing opportunity, high tax rate and dollarrupee parity are making it next to impossible for small private groups to import new machinery. The benchmark to assess tax to be imposed on used machinery is the weight of the machine and not the invoice value. This creates a major difference in the final price when 24% tax is applied to an invoice value of a new machine compared to 1.5 USD/kg to the weight of the used machinery. The impact on the price could be assessed from the example that a 40 ft. container containing two units of Daewoo 130 used to cost 100,000 rupees before the imposition of tax on old machines, now it cost 1 million rupees to clear the same container. There are three prominent companies like Orient Energy Systems (New Holland Construction Machinery),
Allied Engineering and Services Ltd (Caterpillar) and Jaffers Brother Ltd (Komatsu) providing necessary infrastructure to market new machines in Pakistan. However, the market segment f or them is mainl y limi ted t o government tenders. There is a long list of second hand machinery retailers. Usually these machines are imported from Dubai, Korea, Japan and Canada. The most popular among them are Japanese and Korean machines.
The names and current market prices of popular brands/models of used machinery available for sale are as such: D-155 Komatsu (3.2 million rupees), Roller Dynapac CA251D/CA301 (3.0 million rupees) , Nishan Dumper 96/97 V-8 engine (3.5 million rupees) , Excavator solar 130 Korea 2003 (3.3 million rupees), Caterpillar G8K (5.0 million rupees), Motor grader 140 G Komatsu (5.06.0 million rupees) , Hitachi Ex200-1 (4.0 million rupees), Hitachi 100 WD-1 (2-5.0 million rupees) , Doosan D140 2006 model (5.5 million rupees) and Daewoo 140W 2001-2005 model (4.2 million rupees). The price varies depending on less involvement of electronics (high demand), country of import and age. Considering the demand of the construction machinery, our financial institutions, leasing companies, and other financial bodies should come forward to extend financing for construction machinery to promote and encourage the use of new machines towards the development and prosperity of the country. The financing should be project based following the example of the Stone Development Corporation on
howthey financed machinery, trained manpower, and assisted sale of marble from private sites(areas controlled by landlords) until the machines were fully paid off. Thereafter machinery and staff were handed over to the private owner and the corporation moved further ahead. As a result of this the marble that was previously excavated by explosives causing 80% losses, was efficiently and cleanly removed, without the bulk being damaged, and giving more output in supporting the Pakistani economy substantially. This process uses extensively wheel loaders to transport the blocks of marble. The excavator could be employed in canals and rivers, and dams to remove silt to clear water passages, and enhance water storage capacity. Bulldozers could help bring culturable wasteland in to cultivatable land. Likewise other construction machinery could be utilised on specific jobs to complete the work efficiently. The picture is not all gloomy; periodically government institutions and external agencies have supported Pakistan with grants to purchase machinery for different projects. Unfortunately those machines were not utilized to their capacity and did not complete their working life because of the absence of good dealers who are the backbone of keeping the machines running by providing timely warranty services, aftersales service, spare parts, operators training, workshop training and necessary product backup support. Therefore, it is imperative to ensure, particularly, for new machines that a proper dealer is present to look after the machines in order to make effective use of these machines. .....
www.automark.pk | August-2013 | Page 41
International Automotive Industry - Update
Honda inaugurates new 2Wheeler plant in Karnataka, to start production next-month Honda Motorcycle & Scooter India (Pvt.) Ltd. (HMSI), a fully owned subsidiary of Honda that produces 2 wheelers in the country has inaugurated their 3rd 2-wheeler plant in India at Narsapura Area (around 52 kilometres from Bangalore) in the Kolar district of Karnataka. Made with a total investment of Rs. 1350 crore, it is spread across 96 acres and employs approximately 4500 people. The plant will start operation from June 2013, and in the first phase it will churn out 12 lakh bikes/scooters annually. By the end of 2014, the plantâ€™s production capacity would have increased by 6 lakh, the total capacity will be 18 lakh units annually. This will bring the total capacity of the all the three plants combined to 46,00,000 (46 Lakh) units. Honda says that the Narsapura plant is more advanced,
Mercedes launches new nine-speed automatic in Europe
According to Autoweek, Mercedes-Benz has rather quietly introduced a new nine-speed automatic transmission in Europe. Its first application is in the diesel-powered E350 BlueTec, where it replaces the previously used seven-speed unit in rear-wheel-drive applications. Known as the 9G-Tronic, the gearbox was designed and is built by Mercedes itself. While acceleration to 60 miles per hour is unchanged despite the two additional ratios, the European Combined fuel mileage rating jumps from 42.8 mpg to 44.4 mpg (both US) thanks to significant increases in the city cycle. Mercedes has confirmed that the new 9G-Tronic will eventually make its way to the States, but hasn't offered any timetable on its US arrival. When it does, though, it may appear first in gasoline models, as its diesel pairing in Europe isn't a combination offered in the US.
efficient and greener than the other two plants; Newer and faster machines, robotic welding and painting arms and high speed transfer will increase product quality and reduce production times. linesEnergy consumption during production is reduced considerably, 30% of the water consumed by the plant will come from rain-water harvesting, there will be no effluents from the plant into the nearby region. The company plans to start mass production of its entrylevel motorcycle Dream Yuga in this plant next month. This will be followed by manufacturing of Activa scooter on the second line. The plant at Narsapura is the third plant HMSI has opened in the country, the other two are located at Manesar, Haryana and Tapukara, Rajasthan.....
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Honda launches 110 cc bike Dream Neo at Rs 46,140 Japanese auto major Honda today launched its second 110 cc mass segment bike Dream Neo in three variants, priced at Rs 46,140 (ex-showroom Mumbai) in a bid to enhance its market share in the segment. "Dream Neo is Honda's next big leap towards creating deep inroads into the Indian commuter segment. We are confident of demand for Honda two wheelers and eye 43 per cent growth with 39.3 lakh unit sales this fiscal," Honda Motorcycle & Scooter India Ltd (HMSI) Vice President for Sales and Marketing Y S Guleria said at the launch here....
Toyota outsold by General Motors in Japan
Toyota Motors for the first time in six quarters, as deliveries in Japan extended their decline after government incentives for fuel-efficient models expired last year. Toyota and its subsidiaries sold 2.48 million vehicles during the quarter ended June, just shy of the 2.49 million that GM disclosed earlier this month. Japan's largest automaker sold 8.4 per cent fewer vehicles in its home market last quarter. Toyota's decline in Japan car sales shows a rare weak spot for a company that's forecasting its biggest profit in six years and whose stock has gained 54 per cent this year. Japanese vehicle sales have fallen steadily since the asset bubble burst in 1989, with temporary boosts from government subsidies. "The decline in Japan will continue," said Jun Nokuo, an analyst with
researcher RL Polk & Co in Tokyo. "It is an aging society and the population is shrinking. At the same time, the popularity of cars is declining because public transportation is easy to use." Toyota's sales in the first six months of this year dropped 1.2 per cent to 4.91 million units. GM sold 4.85 million vehicles in the first half and Volkswagen delivered 4.7 million, according to the companies. Toyota has been projecting since late December that sales will climb to almost 10 million units â€“ a milestone no automaker has ever breached â€“ in 2013. Japan's largest manufacturer has an ever bigger buffer in the yen, whose decline has been bolstering the value of Japanese exports. Toyota, which reports earnings on August 2, probably saw profit last quarter surge 48 per cent to the highest in more than five years, according to the average analyst estimate compiled by Bloomberg. The yen has weakened more than 12 per cent against the dollar this year and this week traded at ÂĽ100 versus the greenback. The Japanese currency may weaken to ÂĽ105 in the fourth quarter, according to the median of estimates compiled by Bloomberg.
www.automark.pk | August-2013 | Page 42
International Automotive Industry - Update
Japanese Auto Brands Slide in Customer Satisfaction in China Japanese auto brands posted the biggest decline in customer satisfaction in China among foreign automakers, after a territorial dispute sparked nationwide protests last year. Japanese brands trailed their South Korean, American and European competitors, beating only Chinese nameplates in an annual industry survey released today by J.D. Power & Associates. That contrasts with last year, when Japanese marques topped the same study. â€œThe decline was mainly driven by political reasons, which undermined the reputation of Japanese brands,â€? Tony Zhou, director of automotive research at J.D. Power China, said in Beijing today. â€œConsumers also complained about aggressive push by Japanese dealerships, which are under pressure to generate profit amid rising competition, to make them spend more money.â€? The deterioration in customer attitudes
toward Japanese brands underscore the challenges that the countryâ€™s automakers face in restoring goodwill lost in the aftermath of last yearâ€™s protests against Japanâ€™s nationalization of a group of islands that China also claims. About 1,800 cars of brands belonging to Toyota Motor Corp. (7203), Nissan Motor Co. and Honda Motor Co. were damaged during anti-Japanese protests in September, according to Guangzhou Automobile Group Co. (2238), which operates joint ventures with both Toyota and Honda. The China Customer Service Index Study, in its 13th year, measures satisfaction among vehicle owners who bought their models within the past two years and visited an authorized dealerâ€™s service department for maintenance or repair work in the last six months. Overall customer satisfaction in China fell for the first time since 2006, the latest findings show....
Toyota, Nissan, Honda & Mitsubishi announce
Toyota remains worldâ€™s top automaker
joint charging network in Japan Toyota, Nissan, Honda and Mitsubishi have announced their agreement to work t ogether t o p romot e t he installation of easy-access charging points for electric and hybrid vehicles in Japan. Assisted by a ÂĽ100bn (ÂŁ6.6m) grant from the Japanese government, the four automakers will bear part of the cost to install the charging facilities. They will also work together to build a convenient and accessible charging network, enabling car owners to charge their vehicle at any point with the same card. At present, there 1,700 quick chargers and just over 3,000 normal chargers in Japan. The agreement between the four companies will see these numbers swell to 8,000 normal chargers and 4,000 quick charge points in the country's most populated areas. The initiative forms part of the governmentâ€™s aim to achieve a 'green' ratio of 15-20% of new car sales by 2020.
Toyota Motor Corp looked set to retain its title as the world's top-selling carmaker in the first half of this year, company figures showed on Friday, ou tpacing General Motors and Volkswagen as it boosted overseas sales to a record high. The Japanese automaker said its groupwide global sales for the first six months totalled 4.911 million vehicles. That was down 1.1 per cent from a year earlier due to weaker Japan sales following the end of green car subsidies, but sales in the United States, its biggest market, were strong. By comparison, General Motors Co's January-June sales rose 4pc to more than 4.85m cars and light trucks, while Volkswagen AG's climbed 5.5pc to 4.7m vehicles, those companies reported earlier this month...
Monthly AutoMark Magazine
Suzuki to invest $611 million to build a new Indonesia car plant Suzuki says the firm is set to manufacture small cars in Indonesia based on its fuel-efficient 660 cc mini car Wagon R which is sold in Japan Tokyo:ĂŠĂŠis investing ÂĽ60 billion ($611.4 million) to build a new passenger car plant in Indonesia, a spokesman said on Sunday, as Japanese automakers target the worldâ€™s fourth most populous state. Japanâ€™s fourth biggest carmaker by sales volume is set to manufacture small cars in Indonesia based on its fuel-efficient 660 cc mini car â€œâ€? which is sold in Japan, spokesmanĂŠĂŠtoldĂŠReuters. In Indonesia, Suzuki will be exchanging the 660 cc engine for ones with a bigger displacement, Mochizuki added. He declined to disclose the plantâ€™s capacity or when it will start operating. Suzuki already has a car plant in the country. Indonesia, where over a million cars were sold last year, recently signed into law a Low Cost Green Car (LCGC) programme to promote small cars, though it is on hold pending review. Suzuki is among Japanese carmakers includingĂŠĂŠandĂŠĂŠthat are considering utilising their Japan-only mini car technology to build a presence in emerging markets with a fast growing middle class, like Indonesia. Suzuki is known for its presence in India where it has been building cars since the early 1980s. Its subsidiaryĂŠĂŠis the countryâ€™s biggest carmaker by sales.
2.5% duty on metal scrap in India The apex body of foundrymen - IIF has opposed a levy of 2.5 per cent duty on import of metal scrap, saying it would hurt the domestic industry and result in India losing its USD 100 billion auto and auto components market to China and Thailand. "The 2.5 per cent duty imposed on import of metal scrap recently would adversel y i mpact the I ndian manufacturers while semi-finished and finished goods produced from scrap when exported from Thailand and Malaysia are allowed duty free," Institute of Indian Foundrymen (IIF).
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By Mohammad Shahzad S.A.E; D.M.P
Monthly AutoMark Magazine
Understanding oil and fluid leaks under your Car...... Play your part and help the environment by repairing all oil or fluid leaks from your car, so that everyone can enjoy healthy life with the fresh and clean air to breathe, this will also save your money on unexpected car repairs or you could avoid breakdown, for your safety, savings and satisfaction with peace of mind driving.
While backing up your car out of the driveway or porch and you find a small spot of unwanted liquid underneath. What is that? Is your car leaking oil or something else? How long has that spot been there? Well, you donâ€™t need to get out the flashlight and try to catch the leak in progress. After driving and parking for a while the spot has grown into a small puddle. That puddle underneath your car might be trying to tell you something. Sometimes, certain liquids may leak from your vehicle. But every little chemicalâ€“based puddle is an indicative of a potential problem. Hereâ€™s what you should know. There are lots of moving parts in your car and many types of fluids are in use to support its operations for safety and performance. These vital fluids are
plugged/sealed by the gaskets or sealers. Due to prolong operations, heat, stress, rust, age and mileage, these gaskets or seals become old and brittle and tend to lose their sealing strength quality and life span, causing fluid leaks on the ground.
leak, don't ignore it. Except for gasoline and windshield wiper solution, the fluids in your car shouldn't get used up or go anywhere. If you notice that any are low, there's a good possibility of a leak.
How to spot the spots
Some leaks affect your driving safety. Of the liquid leaks, fuel and brake fluid are the most serious and dangerous. Ignoring serious leaks can lead to expensive repairs, breakdown or an accident if not corrected on time.
Fortunately, fluids differ in color, texture, and smell (This depends on the manufacturers). Once you know what to look for, finding the source of your leak is much easier. If you're not sure which fluid is leaking, first check all the fluid levels in the car to see if any are obviously low. Check your ownerâ€™s manual for location and safety procedures for inspection. When you see the telltale signs of any
THE PROBLEM WITH PUDDLES
Five Frequent Fluids Found on Floor There are five fluids that are most likely to end up spotting your driveway or parking spot, and hereâ€™s how to recognize them:
Whatâ€™s that Spot? Identifying Common Engine Fluids on the Ground
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Monthly AutoMark Magazine
By Mohammad Shahzad S.A.E; D.M.P 1-Engine oil Without a doubt engine oil is the mostly likely fluid you'll find underneath your engine. Used engine oil is commonly light to dark brown or black in color. Engine oil feels slippery and may have a dirty, burnt-rubber or slightly gassy smell. It soaks into concrete slowly and leaves a dark residue behind. Top up oil level if low before driving to shop or dealer for further inspection.
2- Engine Coolant/Antifreeze
This is a mixture of water and glycol and usually watery and slippery to the touch. It may be light green, yellow, pink, blue, or even purple in color. It usually drips near the front of the engine or beneath the radiator. The number one cause of serious engine overheating/damage is loss of coolant. If your engine consistently loses coolant, contact your repair shop or dealer immediately.
This looks like white wine when it's new and dark tea when itâ€™s old and dirty oily; with a pungent odour are usually shows up around the wheels or under brake master cylinder. Fortunately, leaks of this fluid arenâ€™t common but have serious safety concern, which indicates a failure in a
4-Power steering Oil This fluid can be similar and sometimes identical to transmission fluid red or pick or reddish in color and feel oily. Power steering fluid leaks are found under the front of the engine near the power steering pump or toward the rear of the engine at the steering rack. Check the fluid level. If it is low top-up and take it immediately to shop or dealer for inspection, ignoring may cause steering failure and safety hazard.
5-Manual Transmission Oil & Differential/Transfer case Oil (4WD) Leaks of this thick dark, heavy, reddish, light tan or black feel oily, which has an objectionable, rotten-egg smell, are found under the manual transmission, differential or under transfer case Itâ€™s difficult to check these fluid levels, so hav e your car in spect ed by a professional. Delaying inspection and repairs will become expensive.
Fewer Fluid Found on
10- Battery Electrolyte/Fluid Expect on non-maintenance sealed battery, you may find caps/cover on your battery to check electrolyte level (a mixture of water and sulphuric acid).This is clear leaky fluid when dried, turns into white powdery stuff. Sulphuric acid is corrosive and poisonous. Check and replace the battery if it is leaking.
Fret Free Flow 11- A/C condensation Clear water is just a condensation from the air conditioner that drips under the front pass side. It is normal so don't worry about it.
12-Tail pipe water dripping Clear water dripping from tail pipe is normal due to catalytic exhaust emission process. It is fine as long as, coolant is not leaking into engine.
Leak to Lakeâ€Ś
3-Automatic Transmission/Transaxle Fluid This ATF is usually reddish, pink or reddish brown in color and feels oily. If it is too old or overheated, it will appear blackened with the distinct odour of burned electrical wire. Leaks are usually found under the transmission and or from an oil cooling line near the radiator. Keep the fluid topped up until you can get your car to shop or dealer for inspection.
system that is crucial in stopping your car, have your car towed and inspected for a leak. This is a real safety issue.
7-Clutch Fluid Clutch fluid is quite similar to brake oil, clear and oily and shows up near or left side of manual transmission, failure to fix can cost major clutch job.
8- Fuel-Gas/Diesel Fuel leaks are the most dangerous. Itâ€™s a thin fluid like petrol smell. petrol can leak from the tank or fuel delivery systems. This type of leak needs to be repaired immediately. Fuel leaks are a leading cause of car fires. Diesel fuel is light oil that smells like home heating oil. This should be treated seriously like a gasoline/petrol leak. In these conditions do not smoke near and tow your car to shop or dealer immediately for repairs.
9-Windshiled washer fluid This fluid can be a blue, pink or yellow tinted water found mostly under left or right side hood near windshield bottle or hose joints. It is vital for your clean and clear vision for safe driving, so make sure to check and repair leaky area.
Guess where the fluid/oil from your driveway ends up? Unfortunately, your sewer system doesnâ€™t come with any filter. In fact, what runs off your driveway and roads goes through your sewers and ends up in the Lake and contribute to the pollution. Chemical leaks such as antifreeze and windshield washer are toxic and most common pet killers, so please make sure to clean up spill and fix leaks as soon as you find. Play your part and help the environment by repairing all oil or fluid leaks from your car, so that everyone can enjoy healthy life with the fresh and clean air to breathe, this will also save your money on unexpected car repairs or you could avoid breakdown, for your safety, savings and satisfaction with peace of mind driving. Enjoy safe motoringâ€Ś Safety starts with you! This exclusive article on â€˜Understanding oil and fluid leaks under your Carâ€™ has been written by Mohammad Shahzad S.A.E., D.M.P. specially for M on t hl y A u t o Mar k Ma ga z i n e . (Automotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not hesitate to contact him at shah@bri melltoy ota.com or email@example.com
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Automotive Sector - Update
Monthly AutoMark Magazine
China to create $3 billion solar fund for Pakistan The energy policy of Pakistan focuses on the alternate energy, including solar energy. The potential of solar is in the range of 7 to 7.5kwh/msq./day in most of Balochistan, 6 to 6.5 kwh/msq./day in most of Sindh, Southern Punjab and Gilgit-Baltistan, and 5.5 to 6 kwh/msq./day in the rest of the country. A Chinese company is ready to create a special solar fund worth three billion dollars in China to support Pakistan in utilising its solar energy resources. The company has the capacity to establish a solar plant of 1000MW in 6 to 8 months in Pakistan, while 50MW to 100 MW solar energy can be produced in 120 days only. The offer came from Byron Shi Min Chen, president of Lightening Africa, China and Shah Faisal, CEO of Gulf Power Pakistan who called on chairman of Board of Investment (BOI), Mohammad Zubair. Imran Afzal Cheema, secretary of BOI, also attended the meeting. Byron apprised the BOI chief that the company was offering two kinds of solutions to energy crisis through the solar systems. He said that off-grid solar systems could be provided by the company immediately. These ready-touse systems can be installed and end users may easily meet the electricity demand. The company may also collaborate with the distribution networks through banks
or the dominating relevant companies to sell solar products to households. On grid solar system, Byron said, can also be installed. He further said that the tariff should be determined even before inviting the Chinese investors to the country in power sector. Zubair stated the BOI is mandated to play an important role in the
Govt plans 9,800 MW with coal in three years In a major departure from electricity generation from the costly diesel and furnace oil, the government has decided to generate 9,800 MW cheaper electricity from coal and to this effect the Ministry of Water and Power has sent concept papers to the Planning Commission to get the go-ahead. Official sources told media that: â€œWe are going for conversion of existing diesel and furnace oil-based thermal power plants at Guddu, Jamshoro and
Muzaffargarh to coal as fuel and with the conversion of said plants the country would have 2,690 MW electricity at cheaper prices.â€? The sources said Manila-based Asian Development Bank (ADB) has already refused to fund the conversion of plants at Guddu, Jamshoro and Muzaffargarh; however, it is ready to fund the new coalbased projects which will be functional on imported coal only....
administration and implementation of the governmentâ€™s foreign direct investment policy. It has a strong record of actively encouraging the flow of FDI into the country through speedy and transparent processing of applications, SEZ Act, and investment policy and strategy. â€œWe welcome investors to make their businesses a success in the most lucrative investment destination of the world â€“ Pakistan,â€? he said. â€˜The energy policy of Pakistan focuses on the alternate energy, including solar energy. The potential of solar is in the range of 7 to 7.5kwh/msq./day in most of Balochistan, 6 to 6.5 kwh/msq./day in most of Sindh, Southern Punjab and Gil gi t- Balt i st an, an d 5. 5 to 6 kwh/msq./day in the rest of the country, he added. Lightening Africa International, Byron explained in the meeting, is dedicated to solar energy market development in Africa....
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