Issuu on Google+

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

CONTENTS

Monthly AutoMark International Feb-2014

Changing trends in Pakistan Motorcycle Industryis a good sign for local & foreign auto investors Exclusive Article by M. Yousuf Shaikh

12-13

“Pakistan International Motorcycle Expo” & investment conference Press Release from PCMIC

14

Contrasting trend in new and used heavy vehicles import by AM Research Team

15

Auto Industry Policy, AIDC, APMA, EDB tussle cost bike makers Exclusive Article by Ali Hassan

16

APMA and EDB Standpoint by AM Research

17-18

Suzuki supports autopart imports from India

19-20

Tractor maker extends suspension

21

Auto Expo 2014 India

22

Sialkot Industry Welcomes Modern Concepts 23 in Pneumatic Automation for Rastgar & Co. Co-operate Event at Sialokot Chamber Assemblers hail penalties on 900 used vehicles Exclusive article by M. Owais Khan

24-26

Motorcycle Prices 38 Passenger cars/light vehicle price list 39 OIL.....The life blood of 42-43 your engine! By Mohammad Shahzad from Canada visit: www.automark.pk


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. February-2014 edition Volume 07, Issue 2

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

Monthly

AUTOMARK International Editor Muhammed Hanif Memon Technical Editor

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad

Welcome to the Pakistan Auto Show (PAPS) 2014 (6-7-8 March 2014)

The Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) was established in 1988 and duly recognized by Advertising Manager Tahir Siddiqui the Government of Pakistan in 1992. The As so ci atio n re pr es ents the auto part sCirculation Manager manufa cturing se ctor wi th an est imated J. Pereira Abdul Khaliq industrial base of over 2800 units spread all Genera Manager Customer Support Division over Pakistan. Graphic Designer Al-Haj Faw Motors (Pvt) Ltd. The Association’s registered membership base Salman Hanif is in excess of 350. The Association’s objectives Karachi include safe guarding parts manufacturers Web Master Muhammad Yousuf Shaikh interest in the National auto policies and Murtaza Hanif Founder & Chairman providing other membership services which Pakistan China Motorcycle Industry Council inc lude, but are not limited to, directo ry Karachi CO NTRIBUTING IN printings, Research & Development of auto THIS ISSUE spec ifi c data, managem ent of Pa kistan Syed Mansoor Rizvi M. Yousuf Shaikh Auto Shows on an annual basis, and the Principal Officer Ali Hassan M/s. CNH Services (Pvt) Ltd. parti cipati on i n interna tio nal exhibi tio ns M. Owais Khan (www.paapam.com). Karachi Pakistan produced its first vehicle in 1953 at Engr. IHT Farooqui the Na ti onal Motors Limi ted whi ch was GM Plant established in Karachi t o assemble Bedford P.M. Auto Industries Trucks. The industry was highly regulated until Hyderabad the early 1990s. After deregulation major Japanese manufacturers entered in the market Mr. Ashfaq Memon Senior Manager Marketing th er eby cr eat i ng so me co mp eti t i on in the sector. Assemblers of HINO Trucks, Memon Motors (Pvt) Ltd. Maker of Super Star Suzuki Cars (1984), Toyota (1993) and Honda Motorcycles (1994) in particular, entered Pakistan one after Hyderabad the other. With a conservative estimated Rs 150 Billion investment, the industry pro vides direct employment to over 252,000 (2013 PAAPAM estimates) and indirectly supports over 2.4 million persons. Exports of four wheelers, two wheeler and agricultural related components are on the increase with last estimates at US$ 128 million. On the road four wheeled vehicles are to cross 10 million in 2013. However two wheelers with an annual production of 2 million+ are fast crossing 25 million and now boasting a collective r obust U S$ 3 .5 bi l l io n aft er m ark et. AutoMark REGD: MC-1330 Heavy vehicle population in Pakistan is mixed with European and Japanese variants available Published every month by M. Hanif Memon in used and new ca tegories. Additionally Postal Address Chinese trucks and buses are now also entering Active Communications D-68, Block-9, Clifton,Karachi fa st with lo cal pr oducti on and cr eat ing Visit us: www.automark.pk competition for already established brands like E-mail: automarkpk@gmail.com Hino. Tel : 021-32218526 Mobile: 0321-2203815 Muhammad Shahzad

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


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by Muhammad Yousuf Shaikh Chairman PCM IC

Changing trends in Pakistan Motorcycle Industryis a good sign for local & foreign auto investors: As per capita income rises, consumer preference moves to new Design, new Tech and Heavy bikes. PCMIC Vision to reform the existing industry in new era to enter in international markets and for this new design, new tech & Large-Displacement Motorcycles, Necessary for Demand Changeand to existence in the world. F or several years, the motorcycle

industry in Pakistan has seen the old 90’s style looki ng motorcycles. Any investor with less or no experience has developed and sold motorcycles in the market and the industry has been in a haphazard situation with no controls yet never decreasing demand. There are a very few choices given to the end users in design, quality and features. Despite th e ever in cr eas ing d ema nd of motorcycle (last year recorded 2 Million motorcycles sold), there is no R&D on developing motorcycles with a better aesthetic appeal which is highly in demand. Consumers spend 1/4th of the new motorcycle costs trying to modify their motorcycles aesthetic appeal and give it value. PCMIC vision is to revolutionize this industry by bringing in different types of motorcycles that fulfill the current demand in terms of quality, appearance and value with in an affordable price. The Pakistan motorcycle market, which is dominated by bikes having an engine of 70 cubic centimeters (cc), has started to see a change in consumer preferences. No w a d a y s , c u s t o m er s p r e f e r motorcycles with an engine of 100cc or above while the bikes with 70cc engines have seen a fall in market share, as the trend suggests. The 100cc and above bike segment witnessed a record growth, while the growth in sales of bikes having 70cc

engines posted decline. The changing consumer choices have forced the local motorcycle assemblers to begin focusing on production of bikes with engines of 100cc and above. Last year, over 1.5 million motorcycles were produced in the country, of which production of 70cc bikes were the bulk. However, analysis of segment-wise data shows that production of bikes having engines of 100cc and 125cc and above grew 35t% and 25%, respectively, while production of the previously mostpopular 70cc bikes shrunk 15%. Bikes having engines of 70cc still make up 80% of th e total market s har e. Chan ges in con sumer preferenc e patterns is not new to the automotive industry as India is an example where the demand for bikes with engines of 100cc and above jumped from 48% in 2005 to 65% in 2012. The real change in the industry has come with the transformation of Pakistan, and the phenomenal jump (in motorcycle production) from 100,000 motorcycles in 2000-01 to two million a year pres ently is a test imony to t hi s transformation. When per capita income touches the $3,000-barrier, the Pakistani auto market will experience a change in consumer behavior where the customer will opt for both luxury motorcycles and trendy bikes like scooters and so on. Per capita income is a very important

www.automark.pk | February-2014 | Page 12

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International fact or in the development of the automotive industry of any country as it results in healthier competition when the economic situation is unfavorable. According to data from the Pakistan Bureau of Statistics, the country’s per capita income clocked in at $1,290 in 2012 – much lower compared to other developing nations. High economic growth rate raises the standard of living of the population, which in turn creates more demand for higher-end automobiles. Eventually, the rising standard of living when per capita income touches $3,000$4,000 mark will drive consumers to shift from motorcycles to cars. At that stage, the motorcycle industry will also shift focus from being a necessity market to somewhat luxury or sports-oriented market. The advantage of 100% localization of

to the motorcycle market. The motorcycle industry development trend indicates that, transition to largedisplacement motorcycles is a necessary option. While the sales volume of motorcycles for transportation purposes decreases, the sales volume of largedisplacement motorcycles increases steadily. In China, large-displacement motorcycles are motorcycles having 150 cc or larger displacement. Chinese motorcycle manufacturers have been mainly focusing on markets in rural areas in a long period. Their products are cost-effective but they failed to pay e n ou g h a tt e n t io n to pr o du c t appearances and brands. This leads to in sufficient innovat ion an d R&D capabilities. As a result, they were in a negat ive posit ion facing th e n ew consumption trend. Ho wever, the launch of WINNER 150cc and Honda

“This transformation will start bringing in bigger-engine bikes into the Pakistani market, which will be a good sign not only for the automobile industry but for the economy as a whole.” 70cc, which the Pakistani motorcycle assemblers enjoy, has not only helped th e prices st abil ize and become competitive with the region, but it has also allowed local assemblers to gain a foothold in foreign markets such as Bangladesh, Sri Lanka and many African countries. The local industry is also seeking to introduce locally-made bikes to South African and Iranian markets. This indicates that requirements for motorcycles have changed in the new market environment. Residents in tier1 and tier-2 cities purchase motorcycles because motorcycles represent a type of cultu re. The res iden ts there u se motorcycl e for leisure an d sports purposes. Nevertheless, residents in rural areas and counties use motorcycles mostly as a means of transportation. This phenomenon has been proved by researches. In rich cities such as Karachi, Lahore, Multan and Islamabad, the demand on large-displacement motorcycles has been in creas ing by yea rs. There, motorcycle club activities are actively organized. Nevertheless, the supply chain of components for motorcycle modification is inadequate. If this proble m is reso lved, motorcy cl e modification will be a new growth force

CBR-150, 600cc shows that the quality of C hi n e se la r ge -dis p lac e me n t motorcycles is improving a nd the man ufac turers ha ve s tart ed counteraction in the market. In a dd it io n t o s h if t in g f r om transportation-oriented motorcycles to larg e-displa cem ent motorcycles , Chinese motorcycle manufacturers must change their marketing approaches to meet n ew market requiremen ts . Con sumers of larg e-dis placemen t motorcycles are completely different from consumers of small-displacement motorcycles in terms of education background, life style, consumption levels , con su mption habits , an d consumption psychology. However, researches reveal that the manufacturers adopted the same showroom sales approach for the two different types of pr od uct . In ov ers e as m ar ket s , manufacturers pay more attention to culture display and product experience for every large-displacement motorcycle m od e l. In s t e a d of la u n ch in g advertisements that have poor message delivery effect, manufacturers tie brand value with services and influential public events such as club ac tivities and motorcycle race sponsorship to generate culture recognition.

Muhammad Yousuf Shaikh

Muhammad Yousuf Shaikh, An Au t o I n d us t r y C on s u lt an t, Motor cy cle In du st ry E xp ert, Mot orcycle Des ign er , Ch ina So u rc i n g Ex p ert , Ser i al Entrepreneur and the Founder & Ch ai rma n of Pak ista n C hi na Motorcycle In du str y Coun cil (PCMIC), offers his analysis of the mot orcycle tr ade & in dus try trends from Pakistan & China. The Chairman PCMIC wo rking with motorcycle trade & industry for over t wo decades, Yousu f believe that new projects could help motorcycle industry to design and produce new design, new tech & large displacement motorcycles in Pa kis tan to comp ete wi th Indian motorcycle in dustry as Pa k is ta n off e re d e x clu s iv e in centives in taxat ion on new en tra nt to ma nu fac t ure n ew d e s ig n , n ew t ec h & la rg e displacement m otorcycl e. For further details and for assistance pl ea se e ma il at p a k c h in a . m ic @ g m a i l . c o m

PCMIC Pakistan Office;79-A, Phase I, Sunder Industrial Estate, Behind PIE Head office, Lahore. Pakistan. Cell # +92 300 2613692 PCMIC China Office:: 0086 23 61729263 Skype live: yousufshaikh email:yousufshaikh@hotmail.com,pakc hina.mic@gmail.com http://www.globalautosources.com, http://www.facebook.com/PCMIC.org http://www.linkedin.com/in/yousufshai kh

www.automark.pk | February-2014 | Page 13

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Press Release “Pakistan International Motorcycle Expo” & investment conference

On Tuesday 28th of January 2014 the Director GeneralInvestor Relations Mr. Jalal Ha ssan of Punja b Bo ard of Investment and Trade (PBIT) and the chairman of Pakistan China Motorcycle industry Council Mr. M. Yousuf Shaikh had a meeting in Lahore on investment op portu ni t ie s in t he Pak ist an ’s motorcycle industry and maintaining a friendly relationship and strengthening the cooperation between each other to promote the investment in Province of Punjab in Motorcycle Sector of Auto Industry of Pakistan. Director General Investor Relations Mr.

Chairman of the PCMIC visited the PBIT to discuss matters related to enhancing motorcycle trade & industry between Pakistan and China and to organize the first “Pakistan International Motorcycle Expo” & investment conference for to invite Chinese manufacturers to invest in the province of Punjab Pakistan. Jalal Ha ssan of Punja b Bo ard of Investment and Trade (PBIT) welcomed t h e C ha ir ma n Pa kis ta n Ch in a Motorcycle Industry Council (PCMIC) and thanked him for visiting PBIT on his invitation. He expressed hope that the visit of the Chairman-PCMIC would g o a long way in enhan cing the Motorcycle trade & industry relations an d econo mic cooperation in the province of Punjab. “It was indeed a pleasure and privilege to host you and we hope that you had an informative meeting with us” Mr. Jalal praise Chairman PCMIC. He stated that we certa inly hope we can have more meetings in the future for the prosperity of Pakistan China Motorcycle Industry Council. The Chairman PCMIC further stated that Pakistan is a very big market consisting of 180 million peoples and als o provides Moto rcycle Industry investors the market access to many other Asian countries. The Director General Investor Relations Mr. Jalal Hassan of Punjab Board of Investment and Trade (PBIT) and the chairman of Pakistan China Motorcycle industry Council, here are the Meeting Memo in Lahore. Present: Mr. Jalal Hassan,the Director General Investor Relations of Punjab Board of Investment and Trade (PBIT) M. Yousuf Shaikh, Chairman of PCMIC Mr. FawadMalik, Research Associate Investment & Trade Facilitation of Punjab Board of Investment and Trade (PBIT) With reference to the discussion and PCMIC intention to hold the Pakistan Internatio nal Moto rcycle Expo and investmentconference in Lahore, PBIT assure Chairman PCMIC for their full support. The way forward as discussed in the meeting is as follow: • Chairman PCMIC, Mr. M. Yousuf Shaikh introduced the current situation and potential of Pakistan’s motorcycle markets, including the annual output, the condition of local motorcycle factories and investment opportunities

particularly for Chinese investors, models and tariff ,etc ; • Mr. M. Yousuf Shaikh suggested PBIT to work together to invite Chinese motorcycle enterprises to invest into Pakistan or acquired the local factory directly for further cost saving and Mr. Muhammad could offer help they needed; • Mr. M. Yousuf Shaikh would offer its in v e st m en t r ela t ed r eg u lat or y documents and all guide li nes to investors and PBIT should facilitate to PCMIC member enterprises and new investors; • Both organizations maintain a friendly relationship and conduct in-depth discussion on the possible cooperation projects and for this PCMIC and PBIT shal l so on ink a Memorandum of Understanding. • To enhance the motorcycle trade & industry with China through to organize exhibitions and to display the latest development of Chinese motorcycle manufacturers in an international forum in Pakistan, Pakistan China Motorcycle Industry Council, shall soon organize a motorcycle industry exhibition and conference. This was agreed in meeting held between Mr. M. Yousuf Shaikh with Mr. Jalal DG of Punj ab Board of I nv es t me n t a n d Tr a de (PB IT ) • Talking with all the stakeholders and taking them in confidence regarding the Pakistan International Motorcycle expo&investment conference and assure their representation. • To share list of members and also suggest the guest list for the conference with PBIT. • To suggest the proposed dates and prepare a detailed proposal which PBIT will get endorsed? • Prepare presentations and short success stories to be showcased in the conference. • Define sectors attending the conference for successful match making and B2B meetings.

www.automark.pk | February-2014 | Page 14

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive by AM Research Team

Monthly AutoMark International

Contrasting trend in new and used heavy vehicles import It is premature to say what kind of Auto Industry Plan (AIP) the government will announce for the entire auto sector either in June 2014 or next month hopefully but the auto industry development committee (AIDC) is getting requests for special concessions that the government accepted in violation of last AIDP that resulted in decline of auto sector. The heavy vehicle sector showed a slight positive trend in terms of sales especially trucks during July-December 2013. Increase in sale of locally produced trucks, considered as a barometer of country’s import and export trade, to 1,028 units from 739 units in same period 2012. There was slight rise in sale of buses to 276 units from 267 units. This improvement in truck and bus sales is below t he e xpe cta tion of local assemblers if compared to previous years’ performance but it is encouraging in view of decorating law and order si t uat ion an d u nc ert ai n mar ke t conditions. They feel that the sales of locall y produced buses and trucks would have been more impressive if the import of used heavy vehicles would not been thriving in the country for the last few years. According to figures of Pakistan Bureau of Statistics (PBS), import of buses, trucks and other heavy vehicles rose by 7.65 per cent in July-December 2013 to $87.6 million from $81.4 million in the corr es pon din g p er iod of 2 012. Figures released by All Pakistan Motor Dealers Association (APMDA) showed contrasting picture of used heavy vehicle imports under personal baggage scheme and new vehicles category. In July-December 2013 there was zero import of used buses and dumpers /m ixe r tr uck s w hi le on ly on e truck/spraying lorries arrived. However, in category of other new vehicles, there was no import of buses whil e 15 tru cks /spra yin g lorries an d 128

dumpers/mixer t rucks land ed in Pakistan. According to figures of July-December 2012, only 10 used trucks were imported as compared to nil imports of buses and dumpers/mixer trucks. In category of other vehicles (new), 95 buses, 698 tr ucks /sp ray in g lorries an d 1 15 dumpers/mixer trucks were imported in the same period. The figures suggest that new heavy were landed more as compared to used vehicles as many new players including Japanese, Korean and Chinese had plunged in the Pakistani markets to in troduce their v ehicles in CBU con dition s for a pr eview t o th e consumers. It is premature to say what kind of Auto Industry Plan (AIP) the government will announce for the entire auto sector either in June 2014 or next month ho pefully bu t the au to ind ust ry development committee (AI DC) is getting requests for special concessions that t he govern ment accepted in violation of last AIDP that resulted in decline of auto sector. The last AIDP was announced after detailed discussions with the auto parts vendors, assemblers and ministry of industries, Engineering Development Board. Auto industry stakeholders expect that the AIDC would at least adhere to the commitments made by assemblers regarding localization strictly because the concessions granted to new assemblers are such that amount to allowing import of new vehicles

at an absurdly low duty. Demands for relaxation of rules are being made by manufacturers as they feel encouraged that such requests have been heeded by the regulators in the past rather lavishly...

India's Maruti halts mini car production that drove road revolution

India's Maruti Suzuki said it had halted production of its iconic first small car, the Maruti 800, which revolutionised road transport for millions of Indians. The boxy, four-seater hatchback - the first car ever owned by many Indian middle class families - first rolled off the production line in 1983 and 2.9 million have been sold since, the company said. "We have stopped the M-800 (Maruti 800) production, " Maruti Suzuki executive director C V Raman said at India's premier car show in the New De lhi su burb of Great er Noida . The decision to phase out the Maruti 800, hailed as a triumph of small-car engineering when launched, was taken in 2010. The company said it would be too costly to make the hatchback meet stricter emission standards aimed at cutting pollution on congested roads. The nofrills car also had been eclipsed by fancier models.

www.automark.pk | February-2014 | Page 15

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article by Ali Hassan

Auto Industry Policy, AIDC, APMA, EDB tussle

The Engineering Development Board (EDB) has kept the Chinese bike assembler’s body chairman away in the last three meetings of Auto Industry Development Committee (AIDC).

It is the important time that after 15 years the Government is g oing to announce new Auto Industry Policy (AIP). “Without or representation in every meeting the AIP will definitely be a one s id e d p o l ic y r a t h e r t h a n a comprehensive policy based on feedback of all the stak eholders,” chai rman Asso ciation of Pakistan Moto rcycle Assemblers (APMA) Mohammad Sabir Shaikh said. It seems that the new Government misunderstands all the issues related to our industry or perhaps vested interests have been active in misguiding the government to ignore the Chinese bike representatives in the AIDC, he said. He drew the attention of Chairman Federal Board of Revenue (FBR) about the membership of Chairman APMA in AIDC as per notification issued by Ministry of Industries and Production and then by EDB. Acc ording to the notification No, 24 /2 006 /Te ch -I, t he E con om ic Coordination Committee (ECC) in their d ecisi on t hrough ca se No. ECC168/13/2007 dated 13th November 2007 established an AIDC in the EDB with many auto Sectors stake holders members. After that EDB in their Circular No. EDB-V(1)GMP dated 27th December 2007 also circulated five members and seven Co-opted members.

He said according to these circulars and notifications, the Chairman APMA is the approved and regular member of AIDC but the EDB has not invited me in the meeting of AIDC since last three meetings. He urged the FBR chief to look into the matter ensuring his participation in the AIDC meeting and kindly ask the EDB CEO to extend invitation for AIDC and AIP meetings. FBR, he said, must be aware that Chinese motorcycles assemblers have been surviving under many problems and issues. To get a clear path, APMA needs help from FBR and government. Some of the main problems that irk the bike assemblers are: Difficulties facing in the issuance of production certificates on t ime by EDB, problems from Customs Valuation Department and refund of exported bikes. Sabir informed the FBR that small and m edium as semblers had al ready exported the 25,000 motorcycles from April 2009 to March 2012 but did not

get refunds. He urged the FBR chairman to look into the problems of SME assemblers in order to save the industry from domination of o n e of th e big assembler as well as M.Sabir Shaikh s ave the country’s revenue which is being wasted by the policies created in the past through different SROs [SRO 655/2006, SRO 656/2006 and SRO 693/2006 (List of A-Max). Chairman APMA Mohammad Sabir Shaikh has also informed Prime Minister Mohammad Nawaz Sharif about the stereo type policies of the EDB aimed at facilitating some selected stakeholders of its own choice rather than taking all stakeholders’ feedback and suggestions on policy matters. He informed the PM about the delay in issuance of production certificates of bike assemblers. The is sue of input out put ration certificates (IORC) is confined to few large scale assemblers and vendors instead of small and medium sized units. Importable lists approved by the EDB every year is a useless system which has been in practice for the last 20 years. First the lists were issued on the basis of deletion programs and in 2005 with the help of Finance Minister Shaukat Aziz, the government started Tariff Based System (TBS). He said that tenure of TBS (from 2006 to 2011) was abolished but currently the same system exists. Under TBS, the industries are operating t hrough three SROs – 656/2006, 655/2006 and 693/2006. Amendments

www.automark.pk | February-2014 | Page 16

continued on page 18

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Point of view

APMA and EDB Standpoint EDB, a techno-economic arm of the Ministry of Industries and Production, is mandated to facilitate development and growth of engineering industry through vario us policy and support instruments, enabling it to achieve

autarky, higher level of indigenization and enter export markets. One such support is extended to the industry under the regulatory concessionary regime of SROs notified by FBR, which bounds the industry to avail concessions

under the SROS, without violating their conditions. EDB is fac il itat ing a ll th e O EMs operating within the prescribed legal parameters, without any discrimination, to provide them maximum facilitation and conducive environment to carry out seamless production activities under the regulatory regime of SROs. However, the OEMs, who violate the conditions of the SROs, are prohibited from illegal EDB is in discord to Mr. Muhammad EDB always supports and facilitates activities under the provision of relevant Sabir Sheikh’s (Chairman - Association c om p l ia n t f ir m s a n d is s u e s SRO. of Pakistan Motorcycle Assemblers – Manufacturing Certificates to them for To facilitate competitive production of AP MA) incessant wrong asserti ons one year. All firms carryingdubious and locally produced vehicles, FBR has a bout delays by EDB in iss uin g no n-compliant track record do not promulgated SRO 656(I)/2006, which man ufacturing certificates to the qualify for similar treatment as they a ll ows con ce ss ion ar y imp or t of motorcycle ass emblers for short tend to disturb the playing field for components to the assemblers for the duration and construing the same to be compliant units. EDB is all set to weed production of vehic les. Ministry of the reason for O EMs to resort to out such unscrupulous activities with Industries and Production/ EDB are procurement of parts from traders. This t he a ctiv e su pp ort of in du st ry mandated through this SRO as well as wrong impression being created by Mr. associations and concerned government Import Policy O rder to pr ov id e Sheikh about EDB and dragging it into fac il itat ion to th e legit imate and departments. domains of FBR on the issues of export Mr. Sabir Sheikh (Chairman APMA) has compliant assemblers / manufacturers refunds and valuation of parts, has made never approached EDB for the export who intend to operate under th e it necessary for EDB to discuss these refund issue, which though is not the provisions of this SRO / Policy. Those, issues threadbare with the motorcycle relevant department for the matter. The who do n ot intend to import th e industry and bring a true picture to the FBR has put in place various refund and components under this SRO, are not fore. EDB has planned a meeting with remission Schemes for exporter and Mr. entitled to EDB’s vehicle assembly all stakeholders during the second Week Sheikh being well-versed is advised to certificate an d the refore ca nnot of February 2014 to listen to and sort make up his case for FBR by providing be fac ili t ate d / a pprov ed / reout all issues being faced by the industry, evidence of such activity and the proof validated. The SRO is quite clear in this define a development roadmap for it that his company procured all inputs regard. and soliciting an assurance from the through legal means by paying 50% The OEMs who operate in compliance industry to operate within the legal to the conditions of SRO 656(I)/2006 customs duty... parameters prescribed under the law. are facilitated by re-validating their m an u fa ct u rin g cer ti fica t es for REPLY OF CHAIRMAN APMA ON EDB’s uninterrupted production activities, REMARKS ABOUT HIS COMMENTS whereas t he n on- compli ant un its FOR EDB TOP OFFICIALS IN HIS LETTERS violating the spirit of the SRO are discouraged by not re-validating their AND IN AUTOMARK MAGAZINE manufacturing certificate and quota. Only EDB is not a final decision making issuance of production certificates to Even partially compliant units have been forum regardin g taxation matters facilitated to certain extent so as to s mal l an d medium mot or cycles although the Govt. of Pakistan has given provide them opportunity to become assemblers. powers to EDB through Auto Industry compliant and contribute to government The d ela y a nd la te iss ua nc e of Development Committee to solve all revenues by operating under th e production certificates badly affected Auto Sector Issues with discussion concessionary regime. the performance of SME’s which are through stack holders in the meetings The OEMs engaged in illegal production backbone of domestic growth and the of AIDC but EDB not inviting SME’s activities and involved in irregularities country’s economy. The Three or Four includin g Chairman APMA in the have launched a malicious campaign powerful top officials of EDB are not meetings of AIDC. The AIDC of EDB is against the officials of Tariff Section of owner of the country, they must have to the forum to discuss Export Refunds EDB by leveling charges of corruption. support and facilitate the Industry with FBR, Valuation ruling matter of (Industry means including SME’s not The officials have also been targeted by motorcycles assemblers and delay in leveling baseless charges of delaying only three big tycoons) continued on next page www.automark.pk | February-2014 | Page 17

EDB’s Point of View

EDB further clears its position

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Point of view - continued re va lid a tio n of ma n u fa ct ur in g certificates and li st of importable componen ts to OEMs producin g mot orcycles and a uto rickshaws .

Sabir Shaikh’s reply In first paragraph, EDB is itself accepting that the Board is basically a facilitator to the auto sector. However, despite several recommendations on valuation advice issues, refunds of exported motorcycles by the government to the as s emble rs , t im ely is su an ce of production certificates and broadening tax net. If the Board fail s to ensure timely issuance of production certificates and importa ble li st then ho w can the assemblers smoothly run their units? Failing to get the production certificate and importable list on time, the Excise and Taxation suspends registration of bikes. Assemblers need six months time for import process including placing orders to the Chinese principal, one month time for production a nd shipment, one and a half month time in arrival of shipment, 15-20 days for clearance from port etc. In case the EDB does not provide

Monthly AutoMark International certificates and importable list for entire financial year, the assemblers remain in confusion whether they will face serious problems like demurrages at port besides failing to place future orders. Since TBS came into force from 2006, chairman APMA said his own company Ms Sitara Auto Impex has received at least 15 certificates in the last eight finan cial years. Thi s is EDB’s old practices for keeping involved small bike a ss embl er s i n c umbe rso m e documentations. EDB has so far no t cooperated in clearing refunds of bike exporters from the FBR. The board has also not been helpful in bringing uniformity in higher v al u at ion of im por ta ble p a rt s. In his case, per EDB advice, he has also submitted undertaking that he will import parts under SRO 656/2006 but the Board provided the certificate only valid for one and a half month. Due to limited expiry of production certificate and importable list, how my company can import parts as it requires five to six months time. He said his company is ready to go with EDB system but he needs EDB’s cooperation like issuing full one year

production certificate and importable list. Due to non issuance of certificate and importable list I failed to perform as per EDB requirement in 2013-2014. After June 30, 2014, the Board will again seek my records and blame me for violating the rules. Sabir said he was also blamed by the EDB for n ot perform in g as per parameters of the EDB during 20122013 despite the fact that he has paid 50 per cent customs duty on importable parts. “I am ready to pay CBU rate of duty (58 .75 per cent) on my bike production of 2012-2013 but will this policy be applied to all the assemblers who have adopted same procedure like my company,” he said. In the last paragraph, EDB has asked chairman APMA to provide proof about suspension of bike registration in Sindh province. Sabir said the EDB should check with the Excise and Taxation Dep a r t me n t , S in d h re g a r di n g suspension of bike registration of 80 assemblers from October 1 to October 10, 2013. Then the assemblers started submitting EDB certificates which is still continued to date...

Exclusive article on ‘Auto Industry Policy’ continued from previous page no. 16 had been made in these three SROs up production will come down drastically smugglers are against the imposition of to December 2013 without taking any due to low transportation expenses and GST at retail stage. input from the small and medium sized freight charges. He al so as ked t he PM th at th e assemblers. He recalled that some 15 years back, government should announce Fridays He s ai d th es e S ROs a re go od India’s bike industry was behind as weekly holiday as most the trade opportunities for big assemblers and Pakistan’s two wheeler industry as India usually operate after Juma prayers while vendors but these are potential threat ha d on ly tw o t o th ree models. all the small towns and cities are also to the survival of the small and medium After allowing many leading brands such usually closed on Friday. units. Honda, Yamaha, Suzuki, Kawasaki, etc Almost three days go in waste due to Sabir said AIDC actually suits three main the Indian bike industry is far ahead as weekl y ho liday of Sunday and the Japanese assemblers but it is unsuitable compared to Pakistan due to more than government should realize that the trade for SMEs as well as revenue of the 100 models and more than 400 designs, and industry people suffer due to three country. “Actually AIDC is playing the he said. holidays. role of East India Compan y thus APMA chief said Pakistan has only few He said the FBR should take over the projecting the interest of big assemblers three models 70cc, 100cc, 110cc, 125 issues and policy matters like issuance besides causing revenue crunch,” he said and 150cc with less than 10 designs. The of production certificates, IORCs, adding that because of this system 70cc does not exist in any part of the importable lists and survey certificates Customs Valuation Ruling formulas are world but in Pakistan 70cc model holds from EDB as there would be no problem encouraging informal activities at the 85 per cent market share. for FBR as the Board was handling these border. APMA chief said Pakistani Rupee is issues prior to 2006. As the Finance He said the government should impose weak as compared to US Dollar but Minister, Mr Shaukat Aziz transferred general sales tax (GST) on retail stage Indian Rupee is stronger than Pakistani these powers to EDB from FBR. and being the chairman of APMA, he Rupee. In Pakistan one dollar is equal Trade with India said he is ready help the government Rs 107 while in India one dollar is equal “I am a strong supporter of trade with how to impose the GST at retail stage to Rs 60 Indian rupee. Which means India because this trade will reduce the because of having vast experience of Pakistan will definitely enjoy good cost of production,” Sabir Shaikh said. SMEs and traders. exports of 70cc bike mainly. Because of The assemblers are importing many “GST at retail stage is the mother of all the fact that our bike industry relies and parts and accessories, chemicals etc from taxation issues. Its imposition will boost runs on 70 cc and more than 80 Dubai, China, Europe etc. In case these the revenues,” APMA chief said that assemblers are producing the same parts arrive from India the cost of ma n u fa ct ur er s , im p ort e rs a nd model... www.automark.pk | February-2014 | Page 18

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive Sector - Update

AutoMark Magazine International

Suzuki supports autopart imports from India Mr. Hirofumi Nagao graduated from Osaka University of Foreign Studies, Japan. He has been associated with Suzuki Group since 1978. He has worked in different capacities with Suzuki Motor Corporation, Japan and its overseas subsidiaries. As Managing Director of Pak Suzuki Motor Company Limited from June 1994 to April 2000. As Joint Managing Director of Maruti Suzuki India from October 2004 to December 2007. Presently, he has been working Hirofumi Nagao, MD Pak Suzuki Motor again with Pak Suzuki as Managing Director since June 20, 2008. Company

"We are also committed to introducing newer vehicle models using latest technologies and to continue our aggressive plans for localisation of vehicle components. Pak Suzuki Motor Company Limited & its vendor family believe in the tremendous opportunities offered by opening up of import of vehicles CKD kits from Indian counterparts," said Hirofumi Nagao, MD & CEO Pak Suzuki Motors Limited, in a letter to Prime Minister, Nawaz Sharif. Pak Suzuki Motor Company (PSMC), the largest assembler of automotive vehicles in Pakistan, has supported the opening of autopart imports from India. The PSMC's stance is, however, being opposed by other major assemblers ie Indus Motors Limited- assemblers of Toy ota a nd M/s At la s Ho n da manufacturers of Honda cars. PSMC is the largest assembler of automotive vehicles in the country, operating under a Japanese management and supporting trade with India because the company claims to be committed to expanding its vehicle production in line with market demand. "We are also committed to introducing n ewer vehicle models usi ng latest t echnolog ies and to continue our aggressi ve plans for localisation of vehicle components. Pak Suzuki Motor Company Limited & its vendor family believe in the tremendous opportunities offered by opening up of import of v eh icles CKD kit s from Ind ian counterparts," said Hirofumi Nagao, MD & CEO Pak Suzuki Motors Limited, in a letter to Prime Minister, Nawaz Sharif. The company argues that all its vendors fully support the proposal and have joined as si gnatories to this proposal. The company has submitted

the request to delete 6 HS Codes (being CKD kit parts only) from India trade negative list and, at the same time, itemised details of major benefits to Pakistan from importing CKD parts from India.

According to the company, the following are some major benefits to Pakistan by importing only CKD parts from India: Pak Suzuki and its vendor family has requested the Government to remove the HS Codes (covering CKD kit import

only) from the negative list. PSMC does no t desire any change in the duty structure for the import of CKD parts from India. Specifically, import duties on CKD parts and A-max parts under concerned SROs 656 & SRO 693 should remain the same whether import is made from Japan or India or any other country. HSS code- 8703.2111- components (CKD) for the assembly/ manufacture of vehicles for an engine capacity of a 800cc car; (ii) HSS code 8703.2191components (CKD) for the assembly/ manufacture of vehicles for an engine capacity of a 1000cc car;(iii) HSS code 8703.2210- components (CKD) for the assembly/ manufacture of vehicles for an engine capacity of a 1300cc car; (iv) HSS code 8703.2311 - components (CKD) for the assembly/ manufacture of vehicles for engine capacity 1500cc ca r; (v) H SS code 870 3. 21 94 components(CKD) for the assembly/ manufac ture of mini van and; (vi) H SS code 8704.3 11 0-compon ents (CKD) for the assembly/manufacture pick up. Change of source from Japan to India will save precious foreign exchange eventually resulting in reduction in the cost of vehicles and availability of more

www.automark.pk | February-2014 | Page 19

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive Sector - Update

AutoMark Magazine International

Tractor maker extends suspension

Millat Tractors Limited (MTL) has extended the closure of its assembly plants and related shops/departments for another one week due to lingering market slowdown. MTL’s Senior Executive Director Sohail Bashir Rana told press media from Lahore on last week that the plant and other departments would remain closed from Feb 3 for one week. He recalled that the assembly plant and related shops/department remained closed from Jan 20 to Feb 1 due to sharp drop in sales after increase in general sales tax from 10 per cent to 17pc from Jan 1, 2014. “We have laid off more than 500 temporar y w or ker s employe d in different job catego ries in view of depressed sales and production,” he said, adding that the company would resume services when production and sales would normalise. “We delivered only 190 units in January as compared to our monthly production of 2,500-3,000 units per month,” he

said. Procurement of parts had already been suspended due to unsatisfactory sales, he said, and added that sales usually remain brisk in February, but it seems that the industry has to undergo some testing t ime due to thin demand. The company is also worried over stocks of over 1,000 tractors at the plants and shops countrywide. Besides, he said that another issue was about 2pc additional tax which has been imposed on vendors’ supplies to assemblers which is no t adjustable against output tax, therefore, it has

become part of the cost. This issue has not been reso lved yet, he added. Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) Chairman Usman Aslam Malik said many tractor-based vendors had already shut down their production after getting no orders for parts from Millat Tractors. Besides, vendors had also retrenched workers. He sa id the government was n ot realising that the shrinking tractor sales would only result in low GST collection. Usman said that the government had decided to release 900 used vehicles to get instant revenues, but for the tractor industry, which gives employment and pa y s h a n ds om e r ev en u es , t he go vern ment is yet to show any seriousness. Growers have put on hold purchase of high-priced farm machinery as they are waiting for a firm reply from the government over the fate of enhanced GST.

BoI for ‘Electric’ rickshaws

In a bid to ease the CNG crisis in the working in Manil a using the same The proposal was dis cussed when country, the Board of Investment (BoI) technology manufactured by Samsung. Ge n er a l M an a g er of S a ms u ng is considering a proposal to pursue The proposal came from BoI Honorary Construction and Trading Corporation, Samsung Corporation of South Korea Investment Counsellor in South Korea Joonwoo Choi held a meeting with for manufacturing electric batteries to Feroz Shah, who proposed that Samsung Special Assistant to Prime Minister and ru n ga s pow ered r icks ha ws on may be offered to manufacture electric Ch ai rma n B ol Mifta h Is mai l.. .. electricity. Battery rickshaws are already batteries for converting CNG rickshaws. www.automark.pk | February-2014 | Page 21

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article - continued

Monthly AutoMark International

In a surprise move, a leading assembler of small car, having over 50 per cent market share, is not making any big hue and cry over used car imports but the assemblers of big engine power cars especially maker of Toyota Corolla are showing great anxiety. Motor Dealers Association (APMDA) fixed in SRO577; world has changed revealed sharp drop in arrival of overall since in terms of vehicle technology, rise used cars and other vehicles to 11,247 in the prices of steel, aluminum, rubber units in July-December 2013-14 as and plastics and the vehicle prices have compared to 29,263 units in same period also gone up globally; the contents last fiscal year. of the SRO reflecting amount of duty A steep fall in import of used cars up to ha s r e m a i n e d u nc ha n g e d , 1,000cc was seen to 8,137 units from notwithstanding” 16,270 units while import of 1,301The industry is deeply concerned over 1,500cc cars also plunged to 1,614 units these imports which are in violation of from 9,236 units. Only 15 cars from the law and appreciates FBR and the Local industry has been highlighting the 1,001-1,300cc units were landed in the customs authorities for not clearing the abuse of the schemes meant for overseas last six months as compared to 1,493 over age vehicles. Such used vehicles Pakistanis but unfortunately no action uni ts in sam e period la st ye ar. are neither in the interest of the was taken against the unscrupulous Around 975 cars from 1,601-1,800cc consumers nor in the economy in importers who have continued with their units were imported as compared to general as it costs excessively to the illegal activities unchecked. Regrettably, 1,762 units. In high engine capacity from economy to maintain such vehicles now they have crossed all limits by in 1,801 to above 3,000cc, only 19 vehicles which have spent their prime li fe one go importing 900 overage cars in arrived as compared to 81 uni ts. overseas and they would soon end up in blatant violation of the law. All such However, jeeps (4x4) imports rose to the junkyard. offending vehicles must be confiscated 486 uni t s fr om 396 un its . The He said already government continues for the with and criminal cases should government’s earning through customs to allow up to 5 year old luxury vehicles be instituted against the offenders of duty from car imports dropped to Rs4.5 mostly luxury SUV like Land Cruisers the law, he demanded. bill ion in th e last si x mon ths as which also have fixed lower duty and DG PAMA shared that over compared to Rs10.3bn in same period thus dep riv e t he g overnmen t of 12,000 all types used vehicles last fiscal year. Total imports of cars up revenues. The auto industry is a victim were imported during first from 1,000cc to jeeps (4x4) during 2012of unc ertainty sinc e 2008 due to half of FY14 which is over 12 13 were around 45,000 un its as government polices often changing and per cent of the total market. compared to 55,000 units in 2011-2012. therefore has As there is partial exemption Used cars are arriving under Transfer not revived yet. in duty and taxes available to of Residence, Personnel Baggage and Th e indus try’s revival a nd huge Gift schemes. investment that is linked therewith is used cars the huge volume of Chairman All Pakistan Motor Dealers waiting for a long term stable policy by imports has deprived Association (APMDA) H. M. Shahzad the government. But it is for the government of over Rs 7 urged Finance Minister Ishaq Dar to au th oritie s t o un der st a nd th at billion in duty/taxes due to raise the age limit of used cars to five manufacturing and trading cannot lower duty fixed as per SRO years to revive imports. He informed coexist and that often repeated episodes 577 back in 2005. It is an irony the minister that importers were getting of gratifying the traders with the booty that there is much higher two years depreciation on used cars of liberalized used car policy will ruin amount of duty on a locally instead of three years. the industry. On the contrary, Director General PAMA According to chairman APMDA H.M. manufactured car than a Abdul Waheed Khan informed media Shahzad said surcharge and penalties comparable imported used last month about raging pace of used on 900 imported used cars beat the total car. car imports. He made a case by claiming duties and taxes. He urged the finance “It’s going to be a decade now since the that import of used cars had doubled in minister to release cars on one time amount of duty on used vehicles was July-December 2013 to 11,314 units as lump sum surcharge of10 per cent. compared to 5,512 units in first half of He said if the total taxes on clearance 2013 for which there was no apparent on car up to 800cc come to Rs244,481, justification except massive abuse of the the amount of fine is charg ed at facility by the traders. The import and Rs240,698, hiking the total liability on detention, at the port, of 900 cars, with a unit to Rs485,179. more than permissible age limit, is a On 801 to 1,000cc vehicles, total fines case in point that whereas only this and t axe s add up to Rs5 85 ,5 1 3 much have been detained may more (Rs300,872 fine and Rs284,641 duty). such offending vehicles might have been On 1001 to 1,300cc cars, the total fine released in the past. and t ax es equa l Rs1 .1 3 milli on www.automark.pk | February-2014 | Page 25

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Co-operate Seminar - update

Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Modern Production Systems Using Automation is the Need Of the Hour Sialkot Industry Welcomes Modern Concepts in Pneumatic Automation

Modern production systems using automation is the need of the hour, said Mian Mohammad Anwar, Senior Vice Pr es ide nt , Sial kot Ch a mbe r of Commerce & Industry. He was speaking at a Seminar on use of Compressed Air for economy and efficiency, organized by th e SCCI for ben efit of t he manufac turing industry of Sialk ot. Modern, energy efficient and backed by strong service and spares facilities is the d eman d of Sial kot In dus try . In modernizing productio n system for export oriented industries of Sialkot along with current energy crises and price hike of raw material it is necessary t o focus on efficien cy th roug h automation, to reduce production cost. Imtiaz Rastgar, Engineeri ng Sector Expert – CBI detailed the factors for Industrial efficiency during his lecture and presentation at the Seminar. He

highlighted important ingredients for a p roduct iv e an d e xport orien ted production system in order to make Sialkot manufacturing able to withstand the challenges of the future. He spoke on methods and ideas for low cost pneumatic auto mation, for making manufacturing system more reliable, productive, cost efficient and quality centered. Chris Goldsworthy, the CompAir air compressor expert, gave a detailed presentation on new, energy efficient Screw Compressors. Chris threw light on th e s election criteria for a ir compress ors , service and sp ares considerations, efficient piping systems, press ure, filtrat ion and humid ity r equ ire men t s pe culiar t o ea ch installation. Chris said it is possible to achieve up to a 30% reduction in its compressed air energy costs by judicious selection of compressed air equipment like air compresso rs, dryers, filters, piping layout and piping materials. He further said that it is important to monitor the compressed system on a regular basis, so as to identify and control those areas of the installation where air losses occur. Chris highlight ed compressed air

services being provided by Rastgar & Co for energy efficient compressed air s ystem like Ai rAudit, AirPro and CompAir trained engineers for after sales support and service. Chief Guest Mr. Muhammad Anwar appreciated Rastgar & Co for bringing up new Screw Technology for Sialkot Industry backed by Rastgar & Co after sales service and spares facility and specially thanked Imtiaz Rastgar and Chris Goldsworthy for tak ing this initiative for the benefit of Sialkot Industry. The Seminar was co-organized by Paki stan’s leading air compressor d ist ribut or, Ra st g ar & Co wh o distributes CompAir, Quantima, and Hydrovane and Reavell air compressors in Pakistan for the last 34 years with more than 3000 installation in all industrial sectors. Speaking on the occasion, CEO Rastgar & Co, Ma qso od Zulfqar t hank ed industrialist for their keen interest in Comp Ai r Scre w Techn ology a nd a pp lau ded Sia lkot C ha mbe r of Commerce & Industry s upport in organizing the seminar and making it successful...

www.automark.pk | February-2014 | Page 23

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article

Monthly AutoMark International

Assemblers hail penalties on 900 used vehicles If Customs allowed the clearance this time as well, it will set a very wrong precedence and in future everyone will try to force customs to clear things which are prohibited citing previous precedence, said Iqbal Shah President, PAMADA Exclusive Article by M. Owais Khan In a surprise move, a leading assembler of small car, having over 50 per cent market share, is not making any big hue and cry over used car imports but the assemblers of big engine power cars especially maker of Toyota Corolla are showing great anxiety. This is evident from the government’s decision of clearing 900 used vehicles on paying heavy penalties, making only one big car assembler more worried while its authorized dealers also vent their anger over the issue. More than 90 per cent of cars out of 900 vehi cles are below 800cc awaiting clearance from the port but Pak Suzuki Motor Company (PSMCL) has not made much uproar despite knowing that they will be the worst hi t in case these used cars find way into the market. As per media report, PSMCL’s official spokesperson Shafiq Ahmed Shaikh said that release of 900 vehicles would disturb the market share of Suzuki Mehran mainly which has already been struggling due to falling sales volume in the last two years. However, he stressed the need for lon g t erm policy as adhocism in poli cies creates a bad impression on new investors and on the other hand local investors halt their future investment plans. It has been observed that Pak Suzuki t op m a n a g e me n t p e op le a n d

representatives never come in limelight and usually avoid their presence in press conferences organized by Pakistan Automotive Manufacturers Association (PAMA) on used car or any other serious issues and policy matters. Even the com pa n y’ s s t an ce al s o d iffe rs on trade with India as compared to other as semblers. Pak Suzuki has strongly urged the government to allow parts import from India so that it can unveil new models of Swift and other vehicles. It is surprising as to why Pak Suzuki avoids any interaction with the media on the most pressing issue of used car imports whose main victim is Pak Suzuki itself in terms of low sales volumes. Pak Suzuki also does not take up the issue of used car imports on individual basis with the media while in contrast Indus Motor Company (IMC) main management team continues interacting with print media on negative impact of used car imports on the industry. Pakistan Automotive Manufacturers

Assoc iation (PAM A) and PAMADA always take up the issue of import of used cars but representatives of Honda Atlas also remain away from the press conferences on used car issues perhaps of brisk sales of Honda Civic and Honda City as compared to falling sales of Toyota Corolla. However, the reason of falling sales of Toyota Corolla is different as Honda cars are giving tough time to Corolla instead of used cars. The IMC appears highly worried over the imports of used cars despite sharp decline in imports from July 2013 onwards after reduction in age limit of used to three from five years in December 2012 followed by cut in depreciation limit. According to figures of Pakistan Bureau of Statistics (PBS), import of motor cars (over 95 per cent used cars) had plunged 55 per cent to $88 mill ion in JulyDecember 2013 from $194 million in same period of 2012. Import data released by All Pakistan

www.automark.pk | February-2014 | Page 24

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive Sector - Update

Bike imports swell to $3.5 million, prices raised The interest of local bike assemblers in introducing heavy bikes has increased tremendously in the last six months despite the fact that buyers of these heavy machines can be counted on fingers. As exact sales numbers of these bikes are still no t known, but one of the leading assemblers, who is importing these high priced bikes, have increased the prices not because of burgeoning de ma n d m a in ly bu t ow ing t o devaluation of the rupee against the dollar. Two bike assemblers have put on display heavy bikes side by side with their locally produced cars at their showrooms offering these colorful bikes from Rs 660,000 (150cc) to Rs 2.5 mill ion (1,300cc). The price is cerrtainly shocking for many consumers who canont afford even locally made 100 to 150cc bikes costing more than Rs 100,000. It may not be a wise decision for a sensible person to purchase 1,300cc bike at Rs 2.5 million or even think about 150cc at Rs 660,000 but this costly bikes will definitely attract young generation of filthy rich and elite families where cash is certainly no problem. As a result of enhanced effort of introducing brand new heavy bikes in Pakistan with parts, service warranty etc, the overall import bill for importing th es e bikes h as ris en sh ar ply. Ac cording to Pak ista n Bureau of Statistics figures, import of motorbikes rose to $3.5 million in July-December 2013-2014 a s compa red t o just $482,000 in the same period last fiscal year. Surprisingly, the overall imports of bikes in 2012-2013 were lower than the import figures of July-December 2013-2014. Total import of completely built up (CBU) bikes stood at $1.5m in 20122013 as compared to $875,000 in 20112012. However, in Karachi, the brand new bikes are hardly seen on the roads but it is not clear how young generation of other big cities of Pakistan like Lahore have shown their response to these

heavy bikes. In contrast, used heavy bikes are mainly seen on the roads of Karachi but the numbers are not very significant as parts availability is a big problem coupled with high petrol expenses and costly maintainence. In Karachi, youngsters are testing their driving skills on used bikes of engine power ranging from 250cc to 600cc of 19 90-2 001 mod els w h ich th ey purhcased at a price hovering between Rs200,000-450,000. Perhaps this minor tilt of buyers towards used heavy bikes prompted assemblers to also cash the s ituat ion here by in dulgi ng themselves in trading activities of CBU units. Some used sports bikes (trail) are also seen on the roads despite a ban on its imp or ts d eca d es b ac k d u e t o deteriorating law and order situation and firing incidents. The government had also not allowed assembly of trail bikes. It is unclear as how these bikes find way into the markets or perhaps the government has lifted the ban on such bike imports. Many people ask questions as to why huge foreign exchnage is being wasted on the import of these brand new bikes despite very low number of their buyers. Besides, assemblers are also pretty sure that these amazing bikes can never be

assembled in Pakistan in the next 1020 years due to their heavy prices and high petrol consumption. One thing is sure that buyers of these heavy bikes will also have to pay the advertising expenses spent by assemblers on their advertizing in leading newspapers. To lure rich class these bikes are also being put on display outside the halls at different stage dramas and cultural events. It is certainly because of high cost of living that manufacturers are still cashing on CDI 70cc bikes for the last more than 20 years as compared to other countries where 70cc bikes do not exist. Even in India, the 70cc is no more as over 10 0cc fuel effici ent bikes are assembled in India with latest engine technology. Pakistani assemblers took decades in shifting towards Euro II last year from normal engine for which they recovered the cost of transformations from the customers. If we go back Pakistanis have been plying 70cc bikes since the 80s. No body know s the logic behind introduction of brand new heavy bikes in Pakistan as the country is already struggling under depleting foreign exchange reserves. Selling 100 units a year by one assembler will definitely not bring any kind of revolution for the local industry in terms of country’s population. These bike will definitely be another facininating thing for those who love to show their wealth power. No matter how much the government will earn from duties and taxes collection from these bikes on imports, but these bikes will definintly drain out foreign exchange to some extent. The slogan of assemblers of promoting localizaiton and job promotion through vendors proves hollow here as this import w ill n ot geneat e an y new employment or encourge setting up new vending unit in the country. As per website of Atlas Honda, the brand new imported CBR 15 0cc and CBR 500cc bikes carry price tag of Rs660,000 and Rs1.25m respectively. ...

www.automark.pk | February-2014 | Page 22

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

Automotive Sector - Update

EDB displeased with local assemblers Engineering Development Board (EDB) has expressed its unhappiness against local car assemblers in a report, which will be presented to the National Assembly Stan ding Committee on Industries and Production. To be presided over by PTI stalwart Asad Umar, the committee will discuss in ternal matters of the Min ist ry including corruption in the attached departments. EDB headed by Secretary Industries, Shafqat Naghmi has acknowledged that five year tariff plan approved by the Economic Co-ordination Committee (ECC) of the Cabi net has no t been implemented in letter and spirit . "Critical components identified in the Auto Indus try Developmen t Plan (AIDP) are not localised as very few targets set under the AIDP were achieved. Government did not initiate implementation of even a single non tariff measure," the sources quoted EDB

as saying in its presentation. According to the EDB local assemblers overall production capacities of cars increased from 88,000 in 2001-02 to 270,000 in 2013. Motorcycle production has reached 1.7 million during 2012-13 from 120,000 in 2001-102. In 2008-09 and 2 009 -10 six hi-te ch co mp o n en t / s u b- a s s em b lie s of motorcycle as per AIDP were localised; and placed in the list of localised parts ie SRO 693(1)/2006. Three major OEMs ie M/s Indus Motor Company, Karachi, M/s Pak Suzuki Motors Company limited, Karachi and M/s Ho nda At las Cars (Pakistan) li mit ed, have st arted ass emblin g engines, transmission alternator, water pumps, fuel filter, seat recliner and

starter motor for cars. Secretary Industries will also apprise the committee about the progress made in formulation of new auto policy. A committee headed by the Minister for Water and Power, Khawaja Muhammad Asif is working on the new auto policy. According to the EDB alternative to CNG-based vehicles is to focus green technologies and producing hybrid vehicles conforming to global standards of quality. "Poli cy in tervention s, creation of rational and enabling tariff structure, provision of special incentives through new investment policy, rationalise import policy for used vehi cl es, in cent ivis e pu rcha se of loca ll y manufactured automobiles and special incentives for exports will also be announced in the policy," the sources confirmed. Courtesy: BR

continued from previous page.....article on used imported cars (Rs601,744 fine and Rs532,741 taxes). Total fine with taxes on vehicles 1,301 to 1,500cc comes to over Rs1.6 million (Rs842,442 fine and Rs816,870 taxes). On 1,501 to 1,600cc the total taxes with fine is calculated at over Rs1.8m (Rs1m fine and Rs831,752 taxes). On 1,601 to 1,800cc vehicles, total taxes with fine crosses Rs2.2m (Rs1.26m as fine and Rs1m as total taxes), Shahzad said. “After paying heavy penalties it would extremely be difficult to sell the small en gi n e powe r ca rs ,” h e add ed. The APMDA chief recalled that prior to 900 used vehicles; the Customs had already cleared 2009 model cars against the surcharge after condoning the excess age up to eight months. Pakistan Automobile Manufacturers As se mblers De al ers As so ciat ion (PAMADA) President Iqbal Shah said that it was unfortunate that the local industry has to deal with the new situation this time because of over age used car imported in contravention of the government rules. He appreciated the imposition of penalty on importers who flout the law. He hoped that the go vernment would be able to

recover the full penalty and surcharge defined in clarification issued on Feb 25, 2013.

Used car importers are again trying to blackmail Customs authorities by importing over 3 year old vehicles which was clearly not allowed since 15 Dec, 2012 so why did they imported the vehicles over the age limit in the first place? Last year, he said, Customs allowed the clearance of over aged vehicles only as a one of case against the payment of a small penalty to accommodate those vehicles which were shipped prior to announcement limiting the age back to 3 years.

So now unscrupulous traders are trying to deceive customs again by forcing them to clear over aged vehicles citing last year examples. Customs should take strict action against those importers as to why they have violated the law of the land consciously and should make an example out of them so that no one else should violate law in future. If Customs allowed the clearance this time as well, it will set a very wrong precedence and in future everyone will try to force customs to clear things which ar e p roh ibit ed cit in g p rev ious pr eced en ce, Iqb al S ha h s a id. ..

www.automark.pk | February-2014 | Page 26

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Vehicles Production Figures - Update

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

www.automark.pk | February-2014 | Page 31

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

Indian Automotive Sector - Exhibition

Monthly AutoMark International

Auto Expo 2014 Auto companies look to unveil new models to boost demand

Auto cos, downbeat follo wing a forgettable 2013 in terms of sales, look to unveil new models at the 14th Auto Expo to create excitement among consumers weighed down by the gl oomy macroecono mic conditions and boost demand. The Auto Expo is a go od gauge of sentiment. During the years when every overseas investor was desperately trying to get into India and grab a piece of the world's fastest-growing economy after China, the show was a heaving scrum of people bursting out of the seams at Pragati Maidan. This year though the auto industry is fighting hard to deal with a crippling

downturn. But companies know that the key is exciting the punters. Which is why the 14th Auto Expo, now at a new venue, is more important than ever for them. Maruti Suzuki, India's biggest car maker, will unveil the Celerio compact, hoping its clutch-less mechanicals will make it a big draw in India's stop-and-go urban traffic. Nissan Motor will unveil the rebirth of the Datsun brand with the launch of the Go, a small car it hopes will take on Maruti's WagonR. Hyundai Motor will showcase a sedan to compete with the Maruti Dzire and the Honda Amaz e in the segment that tak es advantage of lower excise for cars less than four metres long. And, after a three-year hiatus, there is finally some action from Tata Motors. The company will add to the competition in the compact car space by launching the Falcon, a premium hatchback to take on the Swift, and the Falcon 5, to take on the Dzire and Amaze. Poignantly though, the launch strategy would have been something the late Karl Slym wo rked on before t he ma nag in g director's unexpected death. Honda will, meanwhile, launch the

Maruti Suzuki Celerio LAUNCHED for Rs 3.90 lakh at Auto Expo 2014

Mobilio MPV to take on the Maruti Ertiga. It will also unveil a new Jazz and a compact SUV concept. Ford is looking to make a big entry with the new Ka small car for India. There will also be small car concepts from Ford and Renault for entry level vehicles in India. Bajaj Auto will showcase the new and enhanced RE60 quadricycle, a new category. Stil l, Maruti Suzuki chairman RC Bhargava is realistic. "Why is the guy not buying a car today?" he asked. "Fundamentally, he can't afford it. Everybody wants to buy a car, the aspirations are al l there, but the affordability is not there. Lots of people are not buying, because they don't see a rosy economic future ahead. The auto show is no t go ing to change that significantly, (but) there could be some improvement." The Indian automobile industry is staring at its worst-ever year in a decade but companies are hoping the upcoming expo will generate enough excitement to br in g ab ou t so me ch ang e in sentiment.

Suzuki Motorcycle launched four new brands at the Auto Expo on Wednesday: V Strom 100 ABS, 250cc motorcycle Inazuma, 155cc motorcycle Gixxer and 110cc scooter Let's.

www.automark.pk | February-2014 | Page 32

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Company Introduction

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only. AutoMark Magazine - International

Pak Suzuki Motor Company (PSMCL)

P ak

Suzuki Motor Company (PSMCL) is a Pakistani subsidiary of Japan ese a utomak er Suzuki. It is the Pakistani a s se mb l er a nd distributor of cars manufactured by Suzuki and its subsidiaries and foreign divisions. Currently Pak Suzuki is the largest car assembler in Pakistan. The firm was founded in September 1982 as a joint venture between the government of Pakistan and Suzuki Mot or Ja pa n , f or ma lizin g t h e arrangement by which Awami Auto Ltd. had produced the Suzuki SS80 from 1982. Suzuki originally owned 25% of the stock, and have gradually increased their holding; they now own 73.09%. Pak-Suzuki was a joint venture between the semi g overnmen tal Pak is tan Automobile Corporation (PACO), who had earlier overseen local assembly from kits. Pak Suzuki is the market leader in Pakistan Automobile Market by having more than 60% (December, 2011) of ma rket s ha re . La ckin g s er ious competition, Pak Suzuki has had a market share of more than 50% since its inception. Its recently launched Suzuki Swift has helped Pak Suzuki increase their market share in the 1,300 cc s egm ent . Apa rt from g iving automobile related services like Suzuki Finance and Suzuki Insuranc e, Pak Suzuki also deals in Pak Suzuki Certified Used Cars. Having assembled both the Carry and Jimny locally since 1976, Suzuki's first locally built product was the 800 cc ST90 Carry van and truck. 25,000 per year was the beginning production. By 1984 the 1000 cc Jimny (SJ410) and 800 cc Alto/Fronte (called "FX") had been added to the lineup, and a second

plant was planned for 1985. Cars built by Suzuki Pakistan often lack essential features which are standard in other cars, such as airbags, rear windshield defogger and rear seat belts. In 2006, Pak Suzuki was the first manufacturer in Pakistan to offer factory-fitted CNG. By 2012 the Pakistani-assembled Suzuki Mehran remained possibly the last car in t he wo rld wh ich st il l us ed a carburetted engine, but from the end of 201 2 Suzuki Mehran s have been equipped with EFI engines to meet the Euro-II emission standards.

Model range in 4 Wheels Suzuki Mehran 1988 to date, renamed Mehran in 1992. A very basic version of the Suzuki Alto CA71 (Maruti 800 in India and Nepal), with a 796 cc engine. The Mehran is sold equipped with a CNG tank since 2006. It received minor changes in 1998 and again in 2004. The Mehran received a standard EFi Engine in July 2012. Currently available in VX or VXR equipment levels it also received a mild facelift with an asymmetric grille, and is Euro-II emissions compliant. It has 29.4 kW (40 PS).

Suzuki Baleno The Baleno (also known as the Cultus Esteem and Esteem) was assembled in Pakistan between 1998 and 2006, when it was replaced by the Liana.

Suzuki Cultus 2000 to date. A basic version of Suzuki Cultus Generation 2 as produced in Hungary from 1992 to 2003, with a 993 cc three-cylinder engine.

Suzuki Liana The Suzuki Liana sedan, originally with 1.6-litre engines, replaced the Baleno.[2] Since 2007, Pakistan is the only place left where the Liana is still being assembled and sold. It is also exported

to Bangladesh. Currently sold as the Liana VURV it has the 1.3 litre Suzuki M13A engine.

Suzuki Potohar The Suzuki Samurai as produced by Spain's Santana Motors from 1985 to 2003 with an international 19821984 Suzuki SJ410 970 cc carburetor engine.

Suzuki Bolan/Ravi Respectively the van and pickup versions of the Suzuki Super Carry with a late 1970s era carburetor based 796 cc engine. In northern and southern areas of Pakistan the Ravi's loading area is covered with a hut like structure of pipes and Tarpauli n having seats. Often it is decorated with colorful paint and cloth.

Suzuki Swift: 2010 to date. The fifth generation Swift has been launched by Pak Suzuki in 2010. The Swift is available in three trims: the DX (no alloy rims, different grill, no fog lamps, and no matching color side view mirrors), the DLX (with alloy rims, different grill, fog lamps, matching side view mirrors, and an two options for navigation systems), and the Automatic (with all the features and options of the DLX, however with an automatic gearbox.

Model range in 2 Wheels Suzuki Sprinter ECO 110CC Basic FeaturesBike With EURO 2 Technology.

Suzuki Sprinter Standard Upgrade Model Of Sprinter ECO.

Suzuki Raider 110CC Bike With EURO 2 Technology. Production Start in 4th Quarter of 2012. (Deluxe Model of Sprinter.) Suzuki GS-150 150CC Bike

www.automark.pk | February-2014 | Page 33

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Monthly AutoMark International

Company Introduction

Indus Motor Company Limited (IMC) Indus Motor Company Limited (IMC) incorporated in 1989 as a joint venture company between the between the H ou se of Habib (H OH), a local cong lomerat e an d Toyota Mot or Corporation (TMC) and Toyota Tsusho Corporation (TTC) of Japan. The company manufactures and markets Toyota and Daihatsu brand automobiles for domestic consumption. The main product offerings inc lude several variants of the flagship “Corolla” in the passenger cars category, “Hilux” in the light commercial vehicles segment and “Fortuner” in Sport Utility Vehicle (SUV) segment. The manufacturing facility and offices are located at a 100 acre site in Port Qasim, Karachi, while the product is delivered to end customers nationwide t hrough a strong n etwo rk of 37 independent 3S dealerships spread across the country. In its 24 years history since inception, IMC has sold more than 500,000 CBU/CKD vehicles and has demonstrated an impressive growth, in terms of volumetric increase from a modes beginning of 20 vehicles per day production in 1993 to 220 units daily at present through the development of human talent embracing the “Toyota Way” of quality and lean manufacturing. Over the years, IMC has made large scale investments in enhancing its own capacity and in meeting customer requirements for new products. Today, Corolla is the largest selling automotive brand model in Pakistan and it also has the distinction of being #1 in Toyota’s Asian market. The company invests heavily in 2,000 plus workforce of team members and management employees and creating a culture of high performing empowered t eams wo rking seamlessly a cross

processes in search of quality and continuous improvement (kaizen). The core values of the company encourage employees to pursue high standards of business ethics and safety; communicate candidly by giving bad news first and respect for people. The bi-annual TMC morale surveys show employees giving a high positive score to the IMC work e n vir on me nt an d le ve l of job satisfaction. The company has played a major role in the development of the entire value chain of the local auto industry and is proud to have contributed in poverty alleviation at the grass root level by nurturing localization that in turn has directly created thousa nds of job o pp or tu n it ies a n d tr a n sf er r ed technology to 60 vendors supplying parts. IMC is also a major tax payer and significant contributor towards GOP exchequer. VISION & MISSION Vision: “To be the most respected and successful enterprise, delight customers with a wide range of products and solutions in the automobile industry with the best people and best technology.” • The most respected. • The most successful.

• Delighting customers. • Wi d e rang e of p ro du ct s. • The best people. • The best technology. Mission: Mission of Toyota is to provide safe & sound journey. Toyota is developing various new techno logies from the perspective of energy saving and d i v e r s if y i n g e n e r g y s ou r c e s . Environment has been first and most important issue in priorities of Toyota a nd wo rking t ow ar d crea ting a prosperous society and clean world. Slogan: ACT#1: Actions, Commitment and Teamwork to become No.1. MANA GEMENT POLICY Integrated Management System Policy We, as a team at Indus Motor Company, are committed to comply with the r equirem ent s of our In teg ra ted Management System and to endeavor to continuously improve upon it in order to: Manufacture high Quality Products. G enerat e Cust omer Sa tis fac tion. Prov id e Ser vice to t he Societ y. M a in t a in Ma r ke t Le a d er s h ip . Identify and avoid/mitig ate those environmental aspects which have n egat ive environment al imp act s. Comply with al l appli cable leg al, regulatory and other requirements related to Environment, Health and Safety, Assist society by making the environment more friendly. Design and maintain facilities, establish systems, provide training and conduct operations in a manner that safeguard people and property. Identify, evaluate & mitigate health risks related to our operations that potentially affect our employees, contractors and the public.

MANUFACTURING PROCESS 1. Press & Hemming

2. Weld Shop

3. Paint Shop

4. Assembly Shop

5. Vehicle Performance

www.automark.pk | February-2014 | Page 34

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

New auto policy - Update

AutoMark Magazine International

Paapam voices concern over delay in announcement Showing grave concern over delay in announcement of the new Auto Industry Policy despite a host of meetings, the Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) has said the lingering on policy has blocked all activities and new investment in auto industry. Paap am Ch airm an Usma n Mal ik appreciated the government for taking all the stakeholders on board to finalise the policy draft, as all auto-sector related bodies had submitted their proposals to the government. Earlier, policies in the country were made behind the closed doors without consulting the actual stakeholders, he said. H ow ever , he lam ent ed th at t he Economic Co-ordination Committee had set up a committee in October 2013 tasking it to finalise the AIP draft within 45 days, but no progress was made in this regard. He stated that all meetings, held in October and November 2013 with senior government officials on the

AIP issue, failed to deliver any results. He said that Paapam wants an auto policy to be formed in a way to strategize export of auto parts and vehicles in addition to growth of auto industry domestically. Pakistan's auto industry is currently very small and so too is the market. The country's population has quadrupled over the past five decades, to 180 million, but car ownership stood at just 12.6 per 1,000 inhabitants in 2013, and is unlikely expand rapidly in the near future. Domestic production, which consists of local assembly of vehicles from imported parts and kits, has capacity of only 250,000 vehicles per year. In fiscal 2013 that was more than enough to supply a market with domestic sales of just 180,000 vehicles, down nearly one quarter on a year-on-year basis. He said that the five-year auto industry policy should provide level-playing field for all the auto manufacturers in the country. He said the government should provide

PAAPAM welcomes Pak-India trade pact The Pakistan Association of Automotive Parts Ac cessories Ma nufac turer s (PAAPAM) welcomed the recent PakIndia pact that agrees to round-the-clock trade through the Wagha- Attari land route. PAAPAM Chairman Usman Malik said that Paki stan’s auto industry wa s unprepared for an Indian onslaught in the country’s market and would be severely impacted if only one-way trade e xiste d. “PAAP AM wan ts manufacturing-based trade with India and does not want Pakistan to become a market for Indian finished goods,” he said, adding that import of industrial inputs from India should be allowed. He made it clear that Pakistan’s auto industry is not prepared for phasing out negative list, as our government has not car ried out ad mini s tra tiv e an d organizational changes in their internal systems, for gearing up to the onslaught of Indian products. Paapam wants manufacturing based trade with India and does not want Pakistan to become

a market for Indian finished goods, he stated. He suggested the government to allow import of raw material, inputs, machine tools, machinery, equipment and other set of products categorized under industrial inputs through land route. “The re-exportable items can also be allowed by establishi ng a specific framework as several international buyers, who hesitate to come into Pak is t an a nd ha ve es t ablis he d warehouses in Indian Punjab, would buy Pak goods directly through Wagha route to save freight cost.” “The auto sector has made clear to the concerned quarters that the Association will always welcome manufacturing and technology based investments from India. He said that Paapam is in favour of promotion of trade wi th regi onal countries, especially with next-door neighbours for the sake of peace, prosperity and economic revival ...

incentives to the car manufacturing industry so that they could enhance capacity utilisation with the objective to de crea se it s cost of production . The association chairman strongly urged the government not to indulge in any policy changes for an industry that has b eing an ex cellen t ex am ple of localisation and growth over the last five years in spite of the countries worsening economic and law & order situation. Usman Malik said that it seems that the policymakers have no confidence on the local industry that grew by 37 per cent on average during last ten years with the investment of billions of rupees in the country. He said that the local industry has already absorbed shocks of power shortage, inflation and increase in cost of doing business. Criticising the used car import policy, Usman Malik alleged that used car importers were involved in illegal activities as they forge documents to import used cars, evade taxes, sell old junk cars at prices equal to locally produced new cars. Malik said his association has repeatedly requested the government to rescind or at least review fixed duty and taxes rates in SRO 577 but to no avail. He further said the rates fixed in dollar term in SRO 577 back in year 2005 are very low, thus giving an undue advantage to used car traders at the cost of local industry and resulting in significant loss of revenue to the government to $7,337 on import of used cars. Regarding the issue of tariff cut he said that the proposed tariff cut on CBU rates would lead to aggravating an already worsening law & order situation and put a huge dent on active investments which are currently being undertaken by the local two wheeler industries in capacity building and engine manufacturing. On trade liberalisation with India, Paapam chief said the government has already been asked to give at least four to five years to the domestic industry before phasing out the negative trade list with India. Usman said Pakistan's auto part manufacturers exported to different parts of the world, but they could not ship their products to India beca use of no n -t ariff bar rier s.. .

www.automark.pk | February-2014 | Page 35

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


International Automotive Sector - Update

Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

AutoMark Magazine International

China breaks world record for car sales in 2013 Car sales surged in the U.S. last year, as the automotive industry came roaring back from the dark days of the recession. But the 15.6 million vehicles sold in America last year still lags behind China, which in 2013 reportedly became the first country to sell more than 20 million. The China Association of Automobile Manufacturers says those 2013 sales figures are a 14 percent increase over 2012's data. And a new report from IHS Automotive expects passenger vehicle sales in the People's Republic to rise further in 2014, as global and domestic automakers vie for the lucrative national market. According to IHS, sedans saw the largest growth by volume in China last year, rea ch ing 7 .3 milli on un its a nd accounting for nearly 47 percent of the nati on's passenger vehicl e market. The top-selling passenger vehicle in China last year was the Ford (F) Focus, with sales of nearly 403,000 units, up 36.2 percent year-to-year. The next bestsell ing model was the Volkswagen Lavida, followed by the Buick Excelle, produced by General Motors (GM). But Volkswagen claims the title of top brand in China by volume sales last year.

IHS says the German automaker sold nearly 2.4 million units in China in 2013, up 16.9 percent from a year ago. South Korea's Hyundai was next in sales, followed by Japanese automakers Toyota (TM) and Nissan, with GM in fifth position. And the carmakers expect even more growth. The website China Briefing, which focuses on business information from the People's Republic, reports that car ownership remains relatively low in China, with about 120 million cars in a country of 1.4 billion people – or less than 100 cars for every 1,000 persons. Compare that to the U.S., which according to some estimates about 800 vehi cl es for every 1,000 perso ns, although other reports say that number is actually much higher. IHS Automotive says international automak ers a re creat in g mod els specifically for the China market. And Japanese companies such as Toyota, Honda (HMC) and Nissan are making a concentrated push to capture more of the Chinese auto market by expanding their brands and increasing market penetration.

Volvos made in China to come to U.S. 'fairly quickly,' says CEO Vo lvos produced in China wi ll be exported to the U.S. market "fairly quickly," Hakan Samuelsson, CEO of Volvo Car Corp. said at the Automotive News World Congress. Samuelsson, 62, would not give a target date but indicated that Volvo is in a unique position to use China as a manufacturing and export base, because it is owned by the Zhej iang Geely Holding Group, which purchased the brand from Ford Motor Co. in 2010. "It will happen fairly quickly in the Volvo group, but it has to be a process that you discuss with your dealers and sales group," he said. "We are the only ones who can think of using the factories for export, which we will be doin g." Samuelsson said he doesn't expect consumers to react negatively to the notion of a Volvo produced in China. U.S. consumers, he said, are already

accustomed to sophisticated products such as smartphones coming from Chinese factories. Samuelsson, a former truck executive who took the helm at Volvo 14 months ago, said he has spent the past year cutting costs, reshuffling the U.S. management team and getting Volvo back into the black. Volvo is also working on autonomous cars and will launch a joint test with the Swedish government in2017 with real drivers on publi c roads , h e said. The Drive Me autonomous-car pilot will use 100 self-driving Volvos, and the company and the Swedish government w il l split th e $7 0 mil lion cos t. Instead, carmakers should automate "the really boring parts," such as driving 55 mph on the highway or sitting in traffic, he said.

Honda buys land for fourth unit in Gujarat The company plans to set up its fourth manufacturing plant in the country for an investment of Rs 1,500 cr Honda Motorcycle and Scooter India (HMSI) recently bought 200 acres in the Mandal region near the site of the proposed Maruti Suzuki plant near here to set up a fourth manufacturing unit in the country. The company plans to invest upwards of Rs 1,000 crore on the project, s ay so urces in the s tate government. H MSI a lso f ile d a n Ind us t ria l Entrepreneurial Memorandum with the department of industrial policy and promotion in the Union ministry of commerce & industry on January 8 for a unit to manufacture scooters and scooterettes in Gujarat.

Maruti Suzuki sales dip 10% in January Country's largest car-maker Maruti Suzuki India reported 10.3 per cent decline in total sales in January at 1,02,416 units as against 1,14,205 units in the same month last year. The company said its domestic sales declined by 6.3 per cent during the mon th to 96,569 units as agai nst 1, 03,0 26 uni ts in January, 2013. Sales of mini segment cars, including M800, Alt o, A- Star and Wago nR, declined by 17 per cent to 38,565 units as compared to 46,479 units in the yearago month, MSI said in a statement.

Coming Soon Maruti Suzuki Maruti Suzuki will soon introduce a technology allowing manual gears to be used li ke automatic tran smiss ion without engaging the clutch. Ammar Alvi has more Maruti-Suzuki is set to unveil automated manual transmission (AMT) in India wit h the Celerio. AMT is a revolutionary technology that allows gears in manual transmission to be changed like in an automatic without engaging the clutch. This combines the convenience of an automatic to fuel efficiency of a manual.

www.automark.pk | February-2014 | Page 36

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Indian Automotive Sector - Update Hero MotoCorp to launch dozen motorcycle, scooter models in next 6 month Country's largest two-wheeler maker Hero MotoCorp said it will launch more than a dozen models of motorcycles and scooters between September and March 2014. This was stated by Hero MotoCorp Managing Director and CEO Pawan Munjal, during the commencement of wo rk at Hero C ent re of Global Innovation and Research and Design here which was built with an investment of Rs 450 crore. Commenting on the new R&D centre, Munjal said: "We are investing Rs 450 crore in the centre at Kukas, with plans to commence operations by first quarter of calender year 2015." He further said the company is in the process of investing Rs 1,300 crore in three projects in Rajasthan. Apart from the R&D centre, the firm is setting up a manufacturing plant and a global parts centre at Neemrana, both of which will start operations in the first quarter of 2O14. He said the Kukas centre will employ 6OO engineers and support staff and the company will hire "the best of global talent to build a truly multi-cultural, multinational set up". The centre would develop models for bot h domest ic an d intern ational markets. Currently, the company is investing 2-3 per cent of of its revenues on R&D.

AutoMark Magazine International

Tata Motors launches Nano Twist with e-power-steering, Tata Motors, facing steep fall in sales, said it expects 50 per cent of the Nano sales to come from the new variant, the Twist, launched today that sports an electric power steering and is priced Rs 14,000 higher than the existing top-end model and is priced at Rs 2.47 lakh (exshowroom Kochi). Tata Motors claimed the Nano Twist is the first in the category to have an electric power steering as all other manufacturers like Maruti Suzuki India offer only hydraulic power steering. The Nano Twist is priced at Rs 1.55 lakh to Rs 2.36 lakh, the company said, adding that it will continue to roll out the existing models. The company is planning to take the Nano to two more markets outside the country, the details of which will be announced soon, said Ankush Arora, senior VP for marketing and sales, passenger vehic les division at Tata Motors. It can be recalled that all these years the company had been maintaining that the Nano does not require a power steering as its engine is fitted in the rear. The Nano Twist comes with the rearmounted 600cc in petrol eng ine. Arora refused to talk on the media reports about an 800-cc engine. He also refused to offer a time-line for the proposed diesel model....

Bye Bye! Honda Accord Axed From the Indian Market H ond a h as clear ed t ha t it wi ll concentrate on the smaller and medium sized cars in the Indian market for a few years. This is to build upon its base and take the Honda brand name to a wider audience. In t he sa me bid, t he Jap an ese manufacturer has ventured into (and has plans to) newer volume centric segments. They launched Amaze in the compact sedan segment which is doing fantastically well. They have the Mobilio MPV, new Honda City as well as NextGen Jazz in pipeline for the coming year. And at the same time Honda is clipping its non-performing models specially in

the higher hierarchy. They discontinued Civic last year in August and the axe has now fallen onto the flagship Acc ord sedan, according to Economic Times. H on da ’s Se ni or V ice Pres iden t Jn an es hwa r Sen con firme d t he development and said, “We have stopped production of the current eighth-generation of Accord in India…. It is our flagship brand and we would be looking at the next generation of the sedan for Indian customers, though the exact launch details have not been worked out yet.” With the Accord getting slashed from

Ashok Leyland infuses Rs 87 crore in German subsidiary

Automotive company Ashok Leyland, India has infused $14.35 million (around Rs 87 crore) last year in its German subsidiary, Albonair GmbH, which works on reducing vehicular emissions. The Reserve Bank of India’s Foreign E xc ha ng e Dep art men t O ve rse as Investment Division’s December data showed the company has invested the a mount as equity in t he German subsidiary. Earlier, Ashok Leyland had invested euro 40 million to help the arm develop a ffordable techn olog ies ai med at reducing emissions meant for both Indian and global markets. An email sent to V Sumantran, executive vice chairman of Hinduja Automotive, and chairman of Albonair did not elicit response. Ashok Leyland’s spokesperson s aid t hey would no t comment on individual operational transactions. According to Ashok Leyland’s 2012-13 ann ual report, the company made investments in Albonair to address the dual objectives of acquiring competence and cost-efficiency in the critical area of future emission technologies and to use it to generate business opportunities in advanced technology components. the lineup, its lovers can get solace from the fact that the next-generation model of the D-s egment sedan is bei ng considered for India, however its launch will not be soon is our prediction. What might go true is the possibility of the car g ettin g a diesel engin e for India whenever it makes its way to our shores. The 2.4L 180PS 222Nm engine powered car attracted only 272 customers in the first eight months of the financial year. Honda introduced Accord in 2008 and has, so far, sold 11,492 units of the eightgen car in the market....

www.automark.pk | February-2014 | Page 37

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.

MADE IN PAKISTAN MOTORCYCLES RETAIL PRICE LIST

70cc Motorcycle Sr./ No. 1. 2. 3. 4. 5. 6. 7.

Product & Model Name Dhoom YD-70 Hero RF-70 Hero RF-70 Plus Honda CD-70 Honda CD Dream Hi-Speed SR-70 Ravi Premium R1

Retail Price Rs. 50,400/= Rs. 46,000/= Rs. 47,000/= Rs. 68,500/= Rs. 72,500/= 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 6. YD Sports 125cc

Retail Price Rs. 59,000/= Rs. 67,000/= Rs. 99,000/= Rs. 119,000/= Rs. 101,000/= Rs. 10,6000/=

Suzuki Motorcycle (Heavy Bikes) Sr./ No. 1. 2. 3.

Product & Model Name Inazuma GW 250 Intruder M 800 Hayasuba GSX1300R

Retail Price Rs. 725,000/= Rs. 1,600,000/= Rs. 2,500,000/=

Sitara Auto Impex

Sr./ No. 8. 9. 10. 11. 12. 13. 14.

Product & Model Name Ravi Hamsafar-70 Sitara GT-70 Super Star SS-70 Super Power SP-70 Super Power Delux Unique UD-70 Bionic AS-70

Retail Price Rs. 45,450/= Rs. 40,000/= Rs. 44,000/= Rs. 44,700/= Rs. 48,200/= Rs. 44,000/= Rs. 44,500/=

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

Brand &Model Name Honda Pridor Super Star SS-100 Super Power SP-100 Yamaha YD100 Mini Yamaha Junoon 100cc

Retail Price Rs. 84,000/= Rs. 57,000/= Rs. 60,000/= Rs. 65,500/= Rs. 79,300/=

Suzuki Motorcycle Sr./ Product & Retail Price No. Model Name 1. Sprinter ECO Euro-II110cc Rs. 86,000/= Rs. 94,000/= 2. Raider Euro-II 110cc Rs. 108,000/= 3. GD 110 Euro-II 110cc GS-150 Euro-11 150cc Rs. 114,500/= 4.

website:www.motorcycleexport.com email: sitara786@hotmail.com Price update: Jan-2014

www.automark.pk | February-2014 | Page 38


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Car / Light Vehicle Price List This space available for Advertisement SUZUKI Model Model MEHRAN VX 800cc Euro II MEHRAN VXR 800cc Euro II SU ZUKI SWIFT 1.3L DX SU ZUKI SWIFT 1.3L DLX SU ZUKI SWIFT 1.3L Automatic CULTUS EFI VXR 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

HONDA Price Price Rs. 625,000 Rs. 683,000 Rs. 1,221,000 Rs. 1,302,000 Rs. 1,438,000 Rs. 1,044,000 Rs. 1,465,000 Rs. 1,544,000 Rs. 705,000 Rs. 676,000 Rs. 2,418,000 Rs. 2,142,000 Rs. 2,293,000

PM Auto Industries (Pvt) Ltd. Model Faw Truck Super 3 Ton (3200cc) Faw Truck Prime 2 Ton (2600cc)

Price Rs. 1,260,000 Rs. 1,034,000

Sokon - Mini Truck (1050cc) DFSK - Mini Truck 2700MM Deck DFSK - Mini Truck 2500MM Deck DFSK - Mini Truck (Double Cabin-AC) 1400MM Deck Introductory Price DFSK - Mini Truck (Double Cabin Non-AC) 1400MM Deck Introductory Price

Rs. 763,000 Rs. 731,000 Rs. 950,000

Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda

Model Aspire Manual Aspire Prosmatec 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) CR-Z Sports Hybird Manual CR-Z Sports Hybird Automatic

TOYOTA COROLLA Model Model XLI VVT-i 1.3 M/T 1299cc Petrol XLI VVT-i LE 1.3 M/T 1299cc Petrol GLI VVT-i 1.3 M/T 1299cc Petrol GLI VVT-i 1299cc LE 2.OD STD 2000cc ALTIS 1.6L Dual VVT-i M/T ALTIS 1.6L Dual VVT-i MT SUNROOF ALTIS 1.6L Dual VVT-i AT ALTIS 1.6L Dual VVT-i AT SUNROOF Toyota Avanza (Up Specfication) Hiace Commuter STD 3.0L Diesel Hiace Commuter STD 2.7L - GAS LOLINE Coster High Roof 26 Seater F/L Land Cruiser Prado Turbo M/T

Rs. 900,000

Sokon - MPV 11 Seater (1300cc) DFSK - MPV 11 Seater (Without AC) Rs. 1,034,000 Rs. 1,084,000 11 Seater (Dual AC) 11 Seater ( Dua l AC-Pow e r Stee ring) Rs. 1,134,000

Model

Dual AC - Power Steering+ Power Window

Rs. 938,000

Sokon - Cargo Van 1050cc DFSK

Rs. 840,000

Tractor Euro Ford 85 HP Rs. 977,000 Tractor Euro Ford 60 HP Rs. 740,000 Tractor Euro Ford 50 HP Rs. 685,000 Price List - Ex Factory (Hyderabad)

Price

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

Rs. 1,779,000

Hilux Pickup 4x4 D/C

Rs. 1,145,000

Sokon - MPV 07 Seater (1050cc) DFSK Without AC Rs. 817,000 With Dual AC Rs. 887,000 Dual AC - Power Steering Rs. 928,000

Price Price Rs. 1,571,500 Rs. 1,586,500 Rs. 1,707,500 Rs. 1,732,500 Rs. 1,874,500 Rs. 1,952,500 Rs. 2,052,500 Rs. 2,052,500 Rs. 2,142,500 Rs. 2,575,000 Rs. 3,433,000 Rs. 3,433,500 Rs. 7,974,200 Rs. 13,757,000

Hilux Pickup 4x sc

DAIHATSU

11 Seater (Dual AC - Power Price Model Steering +Power Window)

Price Rs. 1,702,000 Rs. 1,844,000 Rs. 1,562,000 Rs. 1,703,000 Rs. 2,065,000 Rs. 2,297,000 Rs. 2,186,000 Rs. 2,418,000 Rs. 3,286,000 Rs. 3,366,000

Model

Price

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

TOYOTA VIGO DAIHATSU

Model Model

Price Price

Rs. 3,483,200

LAND ROVER Model

Price

Vigo Champ M/T Rs. 3,282,500 DEFENDER (WHITE ,BLACK,STRONG BLUE & SILVER ) STATION WAGON 90 Rs. 3,560,000 Vigo Champ A/T Rs. 3,483,500 STATION WAGON 110 Rs. 4,260,000 (N/A) (WHITE ,BLACK,STRONG BLUE & SILVER ) Price updated Jan- 2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Subscription Form Monthly Automotive Magazine

www.automark.pk

The Circulation Manager

Please do not pay Mailing Address Active Communications cash in any case D-68, Block- 9, Clifton Karachi E-mail: automarkpk@gmail.com magazine@automark.pk Mobile: 0321-2203815 Tel/Fax: 021-2218526 Name:

1800 (Valid for Pakistan only)

____________________________________ Job Title: _____________________________

Company: _______________________________________________________________________ Address: ________________________________________________________________________ ____________________________

Sig.,&Co. Stamp: ___________________________________

City: ________________________

Post Code: ________________________________________

Phone:

______________________ E-mail:

Fax: ________________________

Mobile No: _____________________ Date: _____________

I enclose a demand draft or money order (not postal order) drawn on the karachi branch of a bank I enclose a cheque of Rs.________ payable to Active Communications Cheque sent from all other stations must include 300 rupees extra as bank charges

ONLINE TRANSFER MCB Bank Ltd., “Active Communications”, A/c No. 1442-1000191, Branch: Gizri, Karachi

February-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Automotive Industry - Update

India to build Honda's small car Currently the Brio which is their smallest car in the Indian market has been developed in Japan

The next big all-new small car from Honda's stable will come out of the India development center, marking a critical shift in the way the world market looks at the country. This new compact car will take birth from an all-new platform designed and developed almost completely in-house by the Honda R&D team based in India. The developmental work has already started, said a senior Honda official in an interview to Business Standard, and will hit the roads in the next three years. Honda, which until the launch of the Brio compact hatchback had very little local participation even in areas of manufacturing a product, this is a big leap. Currently the Brio which is their smallest car in the Indian market has been developed in Japan. Yoshiyuki Matsumoto, managing officer, representatives of development, purchasing and production at Honda Motor Company and the executive who oversees research and development operations at Honda Motor Company, said, “The importance of the Indian market is very high. Globally Honda had been focused on the American market and the products had been developed as per the American requirements. But as far as the future is concerned because we are targeting half of the entire global market, which is the emerging markets, within Asia India is one of the most important markets. So we are focusing on developing product based on these needs and focusing on developing it locally so as to meet the requirements of the customers from the cost perspective and to give the product rapidly into the market”. He declined to specify if the new small car will be positioned below the Brio stating that ‘it is still to be finalised’. Like Honda Motorcycle and Scooter India, the second largest two-wheeler seller in India, the country is the single biggest market globally. The importance of India for Honda is on similar lines, stated Matsumoto. For the new ground up small car Honda will have to strengthen its R&D team whose role presently is extended to only localising of components for vehi cles. The same team will take on additional responsibility, said Matsumoto. The car will be 100% localised because of which it could be priced attractively. Honda wants to lay greater emphasis on India development programme because it wants to reduce the currency exchange fluctuation risks as it severely impacts its profitability even forcing it to rai se product prices at regular intervals. www.automark.pk | February-2014 | Page 41


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Exclusive Article on Car Care

By: Mohammad Shahzad S.A.E; D.M.P.

OIL.....The life blood of your engine! The importance of oil in the engine is just like blood in your body. Blood flows through all your veins to vital organs to keep them healthy and alive. Just imagine what would happen if you suffer very low blood pressure or heavy bleeding due to serious injury or accident that could jeopardize your health and life. Now consider the fact with your engine, the heart of your car. At 88 km/h, each piston in your engine moves up and d own 35 t imes a se cond . The combustion chamber can get as high as 2500°C with the bearing pressure exceeding over 1,000 PSI. Then think about the reality that the only thing that keeps your engine from self–destructing is a film of motor oil thinner than a page of newspaper. Remember that 93% of engine wear happens with each time you start your engine. Keeping your engine lubricated properly will help your engine run better with less emission and last longer.

What does oil do? Your engine oil plays an important role in keeping your car running smoothly.

It performs multi task and number of functions which are vital to the life and performance of your engine. First of all, it redu ces f riction an d w ear by lubricating in ternal moving parts, minimizing power loss. It helps in cooling by flowing between the parts carrying much of the destructive heat away. It prevents rust and corrosion of metal surfaces by enveloping the water and acid. It reduces emission, sludge, gunk and debris. It cleans by washing away abrasive materials from the friction surfaces. It seals by filling gaps between the moving parts such as the pistons, the rings, and the cylinders. It absorbs shocks between bearings and other parts , reducing eng ine noi se and extending engine operational life. It improves engine performance and fuel economy.

are moving inside, alongside, over or around other parts, and this movement produces friction and heat. That’s why lubricating oil is so important. Without oil, the moving parts would seize up and cease to function. Try a little experiment to see how this works. First, rub your dry hands together. Now put a little lotion over your hands. Rub them together and see how much more easily they move. The lotion acts as a lubricant film and makes your hands move easier this is similar to what oil does for your engine’s moving parts. Engine oil doesn’t wear out but it does become contaminated with carbon, m ois t u r e, b low -b y g a s e s a n d microscopic metallic girt. All of these harmful contaminates accumulate in the oil and it eventually clogs the oil passages and filter. High engine heat or under freezing temperature reduces oil effectiveness. Low sub zero temperature causes condensation and during cold start rich/unburned fuel ends up in the oil s um p, th ere by red ucing it s lubrication quality. Importance of engine oil filter is just like kidney in your

Why change oil and filter? The modern engine has many moving parts-hundreds of them- and the most common trait to those parts is that they www.automark.pk | February-2014 | Page 00

Pakistan Auto Show 2014 - 6-7-8 March Lahore International Expo Centre


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Monthly AutoMark International

When to change oil? There are many factors to be considered when changing the oil, such as time period, mileage, driving, road and weather conditions. Engine oil is just like all other chemicals with an expiry life period. If you have 2 bottles of milk in your refrigerator, one is fresh as 2 days old and other is 2 months old, milk in both bottles looks white and feels cold, but when you take a small sip you could feel the difference. body to cleans and filter your blood, similarly when you change oil and filter, you get rid of the contaminants, and the new oil has fresh performance additives for your engine’s protection. Make sure when change oil and filter also lubricate chassis, tie rods ends, ball joints, all doors, locks, hinges and top up all fluid level. It’s better to confirm all lights, clean or replace air filter, check all tires for leak or damag e and adjust air pressure for your safe and economical motoring.

How to choose the right grade of oil? Selection of engine oil depends on many factors. Your car’s maintenance hand book is a right guide to select type and grade of oil recommended for your engine. There are two common types of engine oil in the market, conventional and synthetic. Conventional oil is natural base oil and most commonly used in the engines. The synthetic oil is specially formulated using non-petroleum oil, un-natural chemical based stocks-polyaphaolefin and esters. Synthetic oil has much better q ua lit y com pa r ed t o com mo n conventional oil, such as fast flow for longer engine life, better fuel economy with less emission. However, synthetic oil is more costly than conventional oil. There are two main criteria of engine oil specifications, such as viscosity and performance grade. The thickness of oil, or its resistance flow, is called viscosity. The standard procedure, established by SAE the Society of Automotive Engineers USA, is the number oils according to viscosity and available in single SAE-30 or multi grades such as SAE 10W-30. Multi viscosity is a highly desirable characteristic, the lower the number as 10 thinner the oil, which will flow easily to reach engine’s moving parts quickly and this is also good for cold starting that’s why in SAE10W-30 the “W” stands for winter and as the engine gets hot the oil becomes thick as 30. The performance rating is classified by

API (American Petroleum Institute) this is labell ed with a series of letters indicates its classification as commercial coded by C mostly for diesel engines (API -CF) or S for service for petrol engine(API-SM). Selected oils carry both S grading and the C grading, indicating they are suitable for use in petrol and diesel engines , both s ervice an d commercial. Most passenger-car’s with diesel engine requires oil with both the S and C gra ding s. You may find recommended oil grade number on the oil filler cap on your engine or in your car’s manual.

How to check engine oil level? The engine oil should be checked for leak and level more frequently especially with the high kilometres engines. Oil should be kept at the FULL mark on dipstick, although it is safe to drive when oil level is between FULL and ADD mark, do not drive at low or without oil. And do not wait until low oil pressure

warning light comes on the dash, which could be too late to save engine from destruction. First of all, make sure your car is on a level ground and engine has been shut off for at least few minutes. This will allows oil in various parts of the engine enough time to drain down in the sump. Now pull the dipstick out, wipe out and re insert. Pull again straight and check level, if it is low check for leak or excessive consumption and add as per recommended oil grade on filler cap or in your manual. Do not over fill, this may cause blue smoke, hard starting and could damage your engine. Oil should be kept at the FULL mark on dipstick, although it is safe to drive when oil level is between FULL and ADD mark, do not drive at low or without oil. And do not wait until oil warning light comes on the dash, which could be too late to save engine from destruction. If your oil light comes on while you’re dr iv in g, Th is is th e aut omotive equivalent of a 911 emergency, pull the vehicle off the road as quickly and as you safely can. A delayed reaction could kill your engine. Make sure to add enough oil before driving to a nearest dealer or auto shop for finding root cause such as leak or oil burning and get it fixed to reduce emission and save expensive engine.

This exclusive article on ‘OIL.....The life blood of your engine!’ has been w ritt en by Moh amm ad S ha hz ad S . A . E . , D. M . P ( Au t o m o t i v e Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management O peration s wit h The Brimell Group, Bri mell Toyota and Brimel l Scion in Toron to, Canada. Free advice for Automark readers; please do not hesitate to contact him a t sh a h @br im ellt oy ot a . com or automarkpk@gmail.com

www.automark.pk | February-2014 | Page 43

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only.

Company Introduction

Monthly AutoMark International

Honda Atlas Cars Pakistan Limited Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Com p an y Limit e d Ja pa n , a nd the At la s G roup of Compan ies, Pakistan. The company was incorporated on November 04, 1992 and joint venture agreement was signed on August 05, 1993. The ground breaking ceremony was held on April 17, 1993 and within a record time of 11 months, construction an d er ect ion of m ac hi n ery w as completed. The first car rolled off the assembly line on May 26, 1994. Official inauguration was done by then President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr.Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. The company is listed in Karachi, Lahore and Isl amabad Stock Ex chan ges. On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, an d Is lama bad . Sinc e th en th e Dealerships network has expanded and now the company has Twenty One 3S (Sal es, Service and Spare Part s), Eighteen 2S (Service and Spare Parts) and Five 1S (Spare Parts) authorized dealerships network in all major cities of Pakistan. Since the commencement of production in 1994, the company has produced and sold more than 200,000 cars till July 12, 2012. All dealerships are constructed in accordance with the standards defined by Honda World over. Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. We always strive to give outstanding service to our valued customers. In addition to providing regular service to customers, the company also regularly conducts Service Campaigns, to facilitate customer's need for service. This has given our customers absolute confidence in our cars, clearly evident from the ever increasing sale volumes. It is the constant endeavor of Honda Atlas Cars (Pakistan) Limited to achieve No .1 Customer satisfaction. Honda Atlas

Cars (Pakistan) Limited is committed to meet customer expectations, and to provid e g ood va lue f or mon ey. Currently we are offering Honda Accord ,Honda CR-V, Ho nda Civic (four models) and Honda City (four models) in wide range of colors with advanced technological features.

Company Profile Vision Statement Striving to be a company that society wants to exist by sharing joys with people throughout the world creating products that maximize the joy of customers, with speed, affordability and low CO2.

Chronicle of Events 5 Aug 1992 Joint venture agreement signed with Honda Motor Co. Ltd., Japan 4 Nov 1992 Incorporation of Honda At la s Ca r s (Pa kist a n) Limit ed 17 Apr 19 93 Groun d br eak ing ceremony held. 31 Mar 1994 Completion of Civil Work and installation of Plant & Equipment 1Apr 1994 Technical Ass ist ance Agreement signed with Honda Motor Co. Ltd., Japan 26 May1994 Fi rst car rolling out ceremony held 13 Jul 1994 Inauguration by President of Pakistan 13 Jul 1994 Visit of Mr. N. Kawamoto, President Honda Motor Co. Ltd., Japan 16 Jul 1994 Commercial production commenced 10 Oct 1994 Public issue of shares 10 Jan 1996 New Civic-96 launched 22 Jan 1997 Honda City launched 1 Oct 1998 Honda Motor Company’s 50th anniversary 28 Jan 1999 VTi Oriel launc hed 13 Apr 1999 ISO 9002 certification achieved 20 Jan 2000 Launch of new City

model w it h PG M-F i t echnology 22 Mar 2001 Launching of new Honda Civic model 23 Aug 2003 New model of Honda City launched 13 Sep 2003 Rolling out of 50,000th car 15 Sep2003 ISO 14001 Certification achieved 11 Aug 2005 Launching of CBU model of Honda Accord 21 Dec 2005 Rolling out of 100,000th car 14 Jan 2006 Launching of New Model of Honda City 7 Jul 2006 Visit of Mr. Takeo Fukui, President & CEO Honda Motor Co. Ltd., Japan 29 Jul 2006 New model of Honda Civic launch in 1800cc 31 Dec 2006 Capacity enhancement to 50,000 units per annum achieved 27 Aug 2007 Issue of 10 0% right shares 20 Jul 2008 Launching of New Model of Honda Accord & CRV 31 Jan 2009 Launch of 3rd Generation Honda City 27 Nov 2010 Inauguration of first 1-S Spare Parts Dealership 1 Mar 2012 Launching of New Model of Honda CRV 12 Apr 2012 Inauguration of New 3S Dealership in Lahore 29 Apr 2012 Rolling out of 100,000th Car of Honda City 2 May 2012 Launch of Honda City Aspire 12 Jul 2012 Rolling out of 200,000th car 18 Sep 2012 Launch of New Honda Civic Model 01 Apr 2013 Inaugurated ‘You buy a Honda We plant a Tree’ campaign 17 Apr 2013 Launch of Honda City Aspire 1.5L 15 Jun 2013 Honda introduces the new Accord: Possibly Perfect 25 Aug 2013 Honda Independence Day Golf Cup Inauguration Ceremony Rolling Out Ceremony 10 Dec 2013 Honda Atlas celebrates 20th anniversary 19 Dec 2013 Honda introduces first sports hybird CR-Z car in Pakistan .

www.automark.pk | February-2014 | Page 44

Monthly AutoMark Magazine, Official Supporting Media for PAPS-2014


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.


Generated by Foxit PDF Creator Š Foxit Software http://www.foxitsoftware.com For evaluation only.


Automark magazine feb 2014