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Monthly AutoMark

An Exclusive Interview with 13-15 Mr. Muhammad Zubair, G.M. Sales After Marketastgar of Diamond Tyre Ltd, and coverage of participation in PAPS-2013 Assemblers fail to achieve high An Exclusive article by M. Owais Khan


Handy Guide for Investment opportunities 19-22 in the Auto Industry sector of Pakistan particularly for Chinese investors Exclusive Article by M. Yousuf Shaikh, Founder & Chairman, PCMIC CNG Rickshaws or LPG Rickshaws: No relief in fares Exclusive Article by Ali Hassan


Pakistan’s Gas Crisis due to Gas Theft …& Unaccounted for Gas (UFG) Exclusive Article By Asif Masood


lnternational Automotive news


Local Assembled/Imported car price


Thar is the home of one of the world’s largest 37-38 coal, China clay and granite deposits Exclusive Article by Syed Mansoor Rizvi DYL participates in PAPS-2013 as Gold Sponsor


CBI Export Coaching Program Participants Sign UN Global Compact


Motorcycles Price List


Auto Trans - “Mission”…......Zero to Motion It’s all Gear’s Game! By Mohammad Shahzad from Canada



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

AUTOMARK Industries remained closed for as many as 100 days in 2012

Editor M. Hanif Memon Assistance Editor Sania Zaib Abbasi Technical Editor Muhammad Shahzad

Advertising Manager Tahir Siddiqui

Circulation Manager Abdul Khaliq

Graphic Designer MurtazaHanif

Web Master Murtaza Hanif

CONTRIBUTING IN THIS ISSUE Muhammad Shazad Asif Masood M. Yousuf Shaikh Syed Mansoor Rizvi Ali Hassan M. Owais Khan

Advisors Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Haider Nawab Advisor Planning & Development Toyota Southern Motors Toyota Defence Motors Karachi Muhammad Yousuf Shaikh Founder & Chairman Pakistan China Motorcycle Industry Council Karachi Abdul Majeed Sheikh President, AOTS-ABK Dosokai, Karachi Regional Center Director Industrial Lesion, NED University, Karachi Engr. IHT Farooqui General Manager Plant Karakoram Motors (Pvt) Ltd., Karachi J. Pereira Senior General Manaer After Sales Service and Parts Master Motor Corporation Ltd., Karachi

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

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

Out of 365 days in a year business and industrial activities remained closed in Karachi for about 100 days in year 2012. In Pakistan and specially in Karachi, seems to enjoy taking days off perhaps more than any other nation. There’s absolutely nothing wrong with that. But when the economic and industrial hub of the country is regularly rocked by violence, rioting and strikes — some called by the government itself — does it make sense to add to the number of official holidays. Strikes, observing Youm-e-Soag, Unannounced and announced holidays causing serious losses t o prod uction and export. Unannounced closures in industries are once again on the rise in the city and have caused huge production and export losses in the first month of this year. The industrialists said that if the industries remained shut down for long time, the export shipments would not be ready in time resulting in loss of export orders and consequently of foreign exchange. 100-day closures on business include holidays announced by the federal and Sindh governments to mark religious as well as national and cultural events. The industries, beside confronting many issues specially due to energy crises have to observe holidays creating more miseries for industries of Karachi and Sindh. Beside 53-weekly holidays on Sunday, 13 religious holidays, 7 other pubic holidays and then about 14 days closed due to strikes and law and order situation, about 10 days strike by transporters and then the holidays s p e c ia l l y a nn o u nc e d b y S in d h government during the year 2012 have badly affected operational actives of industrial units in the city. The Sindh government should support its industries so that the cost of doing business is not escalated unnecessarily as industries have to pay overtime 3 times for working on announced holidays, shipments are delayed , causing huge loss of production and revenue and striking economic growth.

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Monthly AutoMark Magazine

Automotive Sector - Update

Diamond Tyres Limited

Diamond Tyres Limited is a renowned name in domestic and international 2 & 3 wheelers industry. The foundation was laid in 1968 when Diamond Rubber Mills, DRM, was established by Late Mr. S.M Shaffi in Karachi, engaged in bicycle tyres and tubes production only. In 2008, the plant was sh ifted with a colossal expansion bearing the name Diamond Tyres Limited. Advance technology coupled with state-of-the-art equipment has given DTL a leading edge to produce most refined quality products and s erv ices c om pet ing in bi cy cle, motorcycle, rickshaw and wheel-barrow tyres & tubes. The success stories of DTL is spread over just 4 years with continuous growth in operating arenas. This could only be possible with the vision, leadership capabilities and pure business acumen of one man, Mr. Muzammil Ejaz Shaffi. A very young entrepreneur who made his business partners and competitors stunned with his diversified strategies a n d t a c ti c s . Of f c o u r s e, t h e implementation was done by h is brilliant, honest and hardworking team who left no stone unturned to set and achieve most difficult objectives. The journey still goes on with continuous R & D with mega plans for entering into commercial and agricultural tyres and tubes.

The Company: Diamond Tyres Limited is operating under the umbrella of Diamond Group of Industries, which comprises of 35 other companies and engaged into leading brands like Diamond Supreme Foam and Dolce’ Vita. The company has its head office in Lahore with regional

office in Karachi. The company has a wide network of distributors and dealers with an estimated coverage of more than 10,000 retail outlets across Pakistan.

Target market & Market Structure: The target market of DTL comprises of domestic and international individuals, corporate entities incl uding OEMs, institutions and government bodies using 2 & 3 wheeler vehicles. Main areas of operations are:

1. OEM (Corporate Sales) 2.Tyre replacement market (Operated through Distributors & Dealers) 3. Export Market.

Competitive Edges: Diamond Tyres Limited has few competitive edges including:

1. Pioneering and trendsetting for unique, innovative and modern tread patterns in local Established in 1968 Mr. Muzammil Ejaz, CEO, Joined the business in year 2004. In the year 2007 company started Production of Motorcycle tyres & tubes. Exporting to almost a dozen states in Central & Eastern Europe, SAARC and Africa.

market. 2.Trend setting in electronic media campaigns for motorcycle tyres and tubes in Pakistan. 3. Crystal clear pricing strategy.

Marketing Activities: Regarding Marketing activities DTL has a very efficient marketing plan for business and brand development. From BTL activities of branding, promotions, campaign s to ATL approach like electronic media and TTL applications h as given DTL tremend ou s and remarkable achievements in terms of bran d awareness. Participation in domestic and international exhibitions has enhanced corporate image, goodwill and respect not only for company but country as well which has further lead to new global venues.

Exports: The company is exporting to almost a dozen states in Central & Eastern Europe, SAARC and Africa. Soon the horizon of exports for DTL is broadening with intercontinental deals who have tested and certified us in terms of quality.

Future Plans: The company envisage a very bright future with rapid growth, capturing and maintaining enhanced market share, untiring R & D activities and pioneering in latest and advance tread designs and sizes. Paperwork for commercial and agricultural range has already been done and soon we would come up for global consumers..... | February-2013 | Page 13

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Diamond Tyre particiapates in Pakistan AutoShow-2013

An Exclusive Interview with Mr. Muhammad Zubair, G.M. Sales After Market & Mr. Khurram Niazi, G.M. Sales OEM and Exports Diamond Tyres Limited participated in a mega event of Pakistan AutoShow, PAPS2013, in Karachi. We were given a warm welcome by company’s senior management including Mr. Muzammil Ejaz Shaffi, CEO alongwith his team Mr. Muhammad Zubair, GM SalesAfter-Market and Mr. Khurram Niazi, GM Sales- OEM and Exports. Some of the salient features of our discussion is disclosed as under: Automark: Since how many years DIAMOND TYRES is participating as exhibitor in Pakistan Auto Shows (PAPS)? Muhammad Zubair: This is the seco nd consecutive year DTL has participated in th is mega event. Automark: What were the primary motives behind exhibiting this year? Muhammad Zubair: We came with multiple objectives however focused on generating and enhancing corporate image, brand equity and off course the core activity of business development. Auto mark : Did you meet your

exhibiting objectives? Muhammad Zubair: Yes indeed. Industrial giants themselves and their representatives Mr. Yunus Dawood, MD DYL Motorcycles Ltd. with Mr. Jawaid Yakoob, Dire ctor Marketing, DYL Motorcycles Ltd., Mr. Hirofumi Nagao San, MD, Pak Suzuki Motor Company, Mr. Shakeel Mirza, GM Supply Chain, Atlas Honda Ltd., Mr. Farhan Hanif, Chairman, Crown Group of Companies, Mr . Nadeem Zamir, CEO H. O. Industries were the key visitors of our presentation. The stall was further illuminated with gracious presence of Mr. Iftikhar Nisar, DTL Distributor for

Karachi Region, Mr. Munir K. Bana, Chairman, PAAPAM and vario us representatives from the automobile and vendor industry. Automark: How many other industry events you have attended in Pakistan and abroad? Muhammad Zubair: So far about 10 i nc lud ing t he r ecent in Kabu l, Afghanistan titling "Made in Pakistan Exhibition" which is the first of its kind covering Pakistani industrial products. Automark: How would you compare other industry events to this Show? Muhammad Zubair: Undoubtedly it is one of the best events held in Pakistan as there are limited forums in the country to interact directly with B2B and B2C consumers. Automark: How would you rate the return on investments of your time and money? Muhammad Zubair: Being a brand equity conscious company, we value it in the same perspective. We have further suggested Mr. Bana to include “Best Stall” award in the upcoming event which again will enhance confidence of the exhibitors and also encourage them. Au tomar k: Would you like to participate again at this event next year? Muhammad Zubair: Yes and we look forward to further events abroad as well since we received tremendous amount of positive feedback. | February-2013 | Page 14

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Exclusive Article by M. Owais Khan

Monthly AutoMark Magazine

Assemblers fail to achieve high localization despite good volumes Many vendors are definitely frustrated that no new car assemblers have entered into the local market. Vendors facilitated every new entrant that targeted Pakistani market in recent past by absorbing the upfront price of tooling of the auto parts and recovering the cost gradually though supply of auto parts. They provided this facility with the hope that new brands would enhance competition. In almost all the press conferences and even at talk shows at electronic media the local car assemblers along with some favorite vendors usually raise their eyebrows whenever journalists ask about their failu re in achieving h igh er localization. Non localization of few high-tech engine parts have remained a core issue for the local industry and taking this excuse (either genuinely or artificially) they have been raising the car prices three to four times a year owing to devaluation of Rupee against the Yen, Dollar and other currencies. The case of high-tech parts relating to Indus Motor Company (IMC) and Honda Atlas Pakistan is very different from Pak Suzuki Motor Compan y Limited (PSMCL). The officials of the IMC and Honda Atlas present their point of view not only on localization but also other problems and achievements of their industries. The assembler of Honda cars has been introducing a fully new shape model after every four to five years while IMC has been taking eight 10 years for this. Surprisingly the successive governments have been too lenient on localization issues and slow progress on this front leaving assemblers and especially their vendors to continue making decade old parts besid es pushing u p prices. Suzuki Alto production has been

suspended from last year due to non av ailability of its engine in Japan. However, Pak Suzuki has been trying to get the parts supply from India to resume Alto production but so far the company has yet to get the permission. Alto while ruling the hearts of people for over a decade had witnessed change of only back lights designs otherwise there was no noticeable improvement or complete change in the designs and interior.

While starting from 1990, the historical figures of Pakistan Automotive Manufacturers (PAMA) revealed production of over 350,000 units of Suzuki Mehran from 1995-1996 to 20112012, while a total of 140,592 units of Bolan were produced during the same period despite its production got underway in 1980s onward. The localization level in Toyota and Honda cars has also not improved significantly. Overall the localization level in cars in Pakistan ranges between 40-70 per cent. Production of Toyota Corolla improved to 46,352 units in 2011-2012 from 4,730 units in 1995-1996. Car assemblers pin hopes on achieving 500,000 cars and LCV production as they know it is hard to achieve in view of inconsistent policies. They got a relief

from the government as used car age limit was reduced to three from five years. While the assemblers will fail to achieve 500,000 unit mark, consumers will continue to rely on their decade old models with high prices. Here it is important to mention that many vendors being members of PAAPAM appear divided in giving their stance on achievement in localization by the car assemblers. Man y vend ors , d esp it e feeli ng discomfort over low localization, are not ready to criticize the car assemblers as they fear losing big orders in case they open their mouth against a particular assembler. It has been noticed that some PAAPAM chairmen, belonging to tractor parts making, has been lambasting the car assemblers for slow localization fearing no dire and financial consequences. Perhaps it was a way to vent their anger since some car assemblers have starting using imported parts and accessories by importing at high duties. In case of 70cc motorcycle, the claim of 94 per cent localization in parts and engine parts also looks unrealistic in view of price jump of two to three times a year on falling value of the rupee against various currencies. If we take CDI 70cc bike production | February-2013 | Page 16

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Exclusive Article - continued from previous page from 1993 till to date, Atlas Honda’s volumes have outshined other Chinese assemblers in terms of production and sales. The cumulative volume of pro duction of both Japanese and Chinese 70cc CDI engine bikes must have made a genuine case for at least carburetor production unit in Pakistan but all the assemblers are using imported carburetor whose price in the markets start from Rs 700 to Rs 2,400. Even a leading carburetor producer of China has been frequentl y offering carburetor through media campaign in some automobile magazines. A market analyst said why any local vendor or the OEMs have ever dared to enter a joint venture with any foreign carburetor company by taking sizable volume of bike production in Pakistan as a positive case. Even the electrical system of illumination of lights and indicators is also being imported. In every press briefing the assemblers of bike and cars present a case of high protection be ing giv en by India, Thailand , Mal aysia, etc to their ind ustries desp ite knowing vast difference in currency value, taxes and duties, utility charges etc. Every country has its own dynamics based on above factors but above one cannot ignore that their governments have kept their eye on their industries to achieve the desired results of localization. If India is taken as example, their assemblers have fully justified high deletion levels and huge volumes as they have been producing latest models in 100-150cc with almost 100 per cent localization. In Pakistan, bike assemblers despite achieving good volumes, are producing 70cc bike saying that consumers will not like the new models and shape while the introduction of high engine capacity bikes will push up the price. For example, Atl as Honda used to assemble a total of 68,637 units (all bikes) in 1995-1996 and in 2011-2012 its production swelled to 588,106. “I think this volume was enough to start local assembly of high tech parts,” an analyst said. Vendors keep on saying that higher localization will ensure their survival in Pak istan besides stabilization of automobile prices but practically they have been fail to grill their OEMs fearing a big business loss. Some brave and sincere auto parts

makers definitely have reservations about the car makers’ point of view who continue to link the localization of hightech engine parts to higher volumes. In an recent report run by a leading English newspaper, Chairman Pakistan Associ ati on of A ut o Par ts and Accessories Manufacturers (PAAPAM) Munir K Bana said reasonable volumes are essential to go for high-tech parts. He added that he is a regular supplier of radiators to all the car producers of the country. “Recently, one of the OEMs has stopped procuring radiators from Pakistani vendors as it has shifted to high-tech plastic-cum aluminum radiators,” he said. Chairman PAAPAM said that he was producing radiators in collaboration with a foreign supplier and he offered him to join him in manufacturing hightech radiators. He said that the foreign supplier declined the offer as it pointed out that the volumes in Pakistan are too low to establish a high- tech radiator plant. On evaluating the cost of the plant, he found that producing high- tech radiators would not be viable till the volumes cross half million car units a year. Former executive committee member of PAAPAM Syed Mansoor Abbas did not agree with stance of the current chairman. “There are radiator manufacturers in Pakistan who have not only adopted the plasticcum aluminum radiator technology but are aggressively exporting these radiators to the US, European Union and other developed countries,” he said. “The actual hitch in acquiring foreign technology is the insistence of the Japanese car manufacturers to go for joint venture or technical collaboration with the company specified by them.” He added since the company providing high- tech technology enjoys monopoly its conditions for a joint venture are linked to volumes and if the auto part makers choose technology transfer, the royalty ch arged is so high that establishing a high-tech plant requires high volumes. Abbas said that the OEMs should delink the manufacturing of high-tech parts through their designated company. Instea d , h e ad d ed, au t o p ar t s manufacturers should be supplied

Monthly AutoMark Magazine specifications and technical details of the part allowing the manufacturer to acquire technology from any other Japanese company. He s ai d th a t t h e I nd i a n c a r manu facturers have managed to upgrade their technologies on the same conditions but the cost of their parts is high. “This is the reason that the prices of Indian cars are generally higher than similar models produced in Pakistan,” he said. Former chairman PAAPAM Tariq Nazir said that the absence of will on the part of car manufacturers is the reason for non-deletion of high-tech auto parts. He cited th e examp le of tracto r producers who showed determination to produce tractor engines. He added that when tractor production in Pakistan w as m ere ly 33 ,00 0 u ni ts, t h e manufacturers had localised 85 percent of the parts through local vendors. At 60,000 units a year, the deletion level reached 95 percent. “Today the prices of Pakistani tractors are lowest in the world,” he said, adding that high-tech engine parts technology was acquired from the most competitive sources in the world. As far as car manufacturers are concerned, deletion of high-tech is a taboo, he added. He said that all cosmetic parts, such as car body, tyres, batterie s, plastic parts, etc., ar e manufactured locally. Many vendors are definitely frustrated that no new car assemblers have entered into the local market. Vendors facilitated every new entrant that targeted Pakistani market in recent past by absorbing the upfront price of tooling of the auto parts and recovering the cost gradually though supply of auto parts. They provided this facility with the hope that new brands would enhance competition. While facing problems over winding up of some Korean and Nissan cars and even a Pakistani brand (introduced by Adam Motors), vendors suffered massive losses on tooling of their parts and even some closed units also had to pay vendors’ payment. The tooling expense is incorporated in new auto part and withdrawn when the cost is recovered. The local vendors after bad experience refused tooling any part for a new manufacturer that completely stopped the induction of new brands in the country. | February-2013 | Page 17

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Monthly AutoMark Magazine

Automotive Sector - Update

Auto parts exports

Numbers encouraging, but not up to the mark Speaking of the major challenges in the export market, Bana said lack of support from the Trade Development Authority of Pakistan (TDAP) in terms of funding for international exhibitions and sending delegations to potential countries was a big hurdle in the way of promoting exports. Exports of auto parts indicate that shipments are gradually climbing and the products are going to 40 countries. Though the numbers are encouraging, the question is whether they are up to the potential. Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Munir Bana does not think so. In an interview with leading English new s paper, Bana said , “Pakistan needs consistent policies to see a consistent growth in the auto industry. Whichever government comes next, it should focus on developing the auto industry.” Only 15 of the 300 members of Paapam are exporting auto parts presently. Total exports of auto parts from Pakistan in fiscal year 2011-12 were $128 million, up from $115 million in 2010-11 and $90 million in 2009-10. The auto industry was called the mother of all industries and government’ s support was essential for promoting employment and industrial growth. The industry was not only fully documented, but was among top five taxpaying sectors of the country, Bana said. Bana said most of the Paapam members were enjoying good market shares with OEMs as well as in the local market and, therefore, they did not have time to think about exports. In the export market, competition is stiff and it is not easy for anyone to jump in due to various challenges. Pakistan’s aut o industry mostly exports plastics, casting and forging parts to Europe, the United States and Africa. Blaming mainly the government for the low exp ort volume, the Paapam chairman said auto parts makers the world over usually enjoyed government’s support in shape of subsidies and assistance in international exhibitions. Citing examples, he said China and India were big exporters as their auto parts

producers got hefty incentives from their governments. Speaking of the major challenges in the export market, Bana said lack of support from the Trade Development Authority of Pakistan (TDAP) in terms of funding for international exhibitions and sending delegations to potential countries was a big hurdle in the way of promoting exports. High cost of credit and cost of doing business was a big disadvantage in co mpeting with Ch ina, India and Bangladesh, he said. Besides car assemblers, Paapam has also been expressing reservations about trade liberalisation with India. When asked why Pakistan cannot export auto parts to India when it is already exporting to Europe and the US, he said India has built a strong system of nontariff barriers (NTBs), both visible and invisible, which is a major stumbling block. “No doubt, India offers a large market to us, but it is inaccessible because of the NTBs. On the other hand, our own government has to build its capacity in

terms of ensuring that both our exports and imports are subjected to stringent quality tests, so that we can succeed in exporting to India and have our own system through which we can avoid dumping from India.” Bana also said Paapam was ready for te chnical collaboration and joint ventures with Indian auto companies, but the industry believed that the Indian automakers were more interested in using Pakistani market as a transit route for Central Asia. He said the industry would welcome any player as far as it purchased car parts from Paapam members. “We are ready to partner with any company from India, Korea or any other country if it procures local p arts fr om ou r members.” A liberal car import policy in the last five or six years had damaged the business of auto part makers, he said and suggested that the government should develop the local industry be cause it generates employment opportunities. | February-2013 | Page 18

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Monthly AutoMark Magazine

Exclusive Article

Handy Guide for

Investment Opportunities

in the Auto Industry sector of Pakistan particularly for


Chinese investors by Muhammad Yousuf Shaikh

Unsure about where to establish your new engine manufacturing facilities? Well, here is a handy guide that showcases some highlights of the benefits of investing in the automotive industry in Pakistan. Invitation for Investment Opportunities: PCMIC takes pleasure in portraying several investment opportunities pertaining to reh abilitation and modernizing its member’s selected factories and establishment of new factories in the auto industrial sectors. This organization is a Pakistan & China Motorcycle trader & Industrial group network for Pakistanis, Chinese and their friends. In addition to being a Pakistan & China motorcycle trade & industry watcher, an investor, a business consultant and an avid follower of the Chinese Motorcycle Trade & Industry markets. Specialized International /Chinese Com p an ies , B u sin essm en, a nd Financiers are invited to participate in oppor tunities t hat may ach ieve economic viability and create rapid positive revenues. The concept is that the investors and their supporting teams would rehabilitate and manage the plant on their account against a share of production achieved; for a negotiated period of time.

The strong points of these opportunities are:

• High local demand of the products. •Availability of trained and experienced manpower. • Availability of local raw materials. • Adequate investment legislations and favorable terms for agreement. •Fa st retu rn on investm ent . The PCMIC expresses its willingness to assist investors with all the necessary clarifications as well as facilitating essential visits to the factories (if required). Interested investors are kindly requested to submit their inquiries to chairman PCMIC at pak at their earliest. T h e PC MI C Ha n d y G u id e o n Automotive Investment is the only consolidated collection of investment in the auto sector in the county which provides a timely and reliable source of information primarily for business (especially investors), and al so for investment promotion ag encies, government policy makers, academics, and r egional a nd inter national organizations in Pakistan and other reg ions. T h e G ui de wi ll assist entrep reneur s in ma king sound investment decisions and policy makers in formulating consistent and coherent strategy de cisions. This version is composed of information compiled by the PCMIC marketplace members by r e sp o nd i ng t o t h e C ou n c i l ’ s questionnaires.

i nv e st m e nt in P a ki s ta n ’ s a u to industrial sector as there are numerous i n v e s t m e n t opp or tu niti es in Pakis tan. I would like to invite them to take part in the automotive sector. The avenues exist in set t in g u p m ot or c yc l e en g in e manufacturing units and for their integral parts which are presently being imported, low priced small car units, manufacturing of car sub-assembly components which are also presently being imported and setting up of a tractor assembly plant. The PCMIC offers to assist Chinese manufacturers in finding local partners for them since the Government is in terested in promoting competition in the auto sector. Detailed information on the automobile sector of Pakistan and the separate investment opportu nities can be provided to in te reste d investors. Currently Japanese car manufacturers have 100 percent share in the local car market again st 45 perce nt in th e motorcycle sector, whereas the Chinese share in the latter is 55 percent. Notably,

Introduction to Investment Sectors: PCMIC r ecomm ends to Chinese a u t om o b i l e m a nu f a c t u r e r s to | February-2013 | Page 19

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Exclusive Article - continued from privous page

Monthly AutoMark Magazine

he PCMIC and their associates are committed to supporting foreign investors, especially Chinese & Pakistani entrepreneurs to develop emerging technologies that become the driving industries of the future. I am looking for an opportunity to set-up a facility for a Pakistan motorcycle industry with extensive experience of setting-up facilities for Pakistani companies on a global sourcing for motorcycles and engine manufacturing in Pakistan. about 133,972 cars were manufactured during 201 0- 11, while motorcycle production was way beyond at 1,535,427 units. Any manufacturer can invest in Pakistan under the Auto Industry Development Programme (AIDP) or the Tariff Based System (TBS).

The government intends to make the existing policy regime more flexible for new entrants in order to attract foreign investment. An amended policy is expected soon and it is emphasized that Chinese manufacturers would be persuaded to explore the Pakistani market. For any query with respect to this article or any other content requirement, please c on t a c t Ed i t or- i n- c hi e f a t PC MI C is pleased to provide th e following services to foreign or local Investors in the Auto Industrial sector. • Undertake customized market research and statistical reports on the Pakistan Auto Industry market. • Identify automotive products; both vehicles and components for import and export. • Help find distributors and suppliers of automotive products. • Identify and evaluate potential cooperative or joint venture partners. • Help setup dependable business networks in Pakistan. •Conduct legal, financial, human resources. •Technical management and feasibility studies. • Help negotiate automotive business deals. • Help with liaison and management of business ventures in Pakistan. •Help identify and locate local executives and employees. • Walk our customers through the Pakistani maze of bureaucracy.

• Services on a retainer basis are available.

The PCMIC Investment Handy Guide has a major two-fold objective. Firstly, The Pakistan/China Motorcycle Industry has an emerging investment opportunity in public/private partnerships to set up an inventive Research & Development Production Facility. Secondly, this is a much needed industrial project which is profitable and feasible due to a big demand in our local market. This prompts me to draw the kind and valuable attention of prospective investors towards what I mention below. The Pakistan Auto Industry has been around for more than 60 years, and today is considered to be a source that is highly important to our country’s economy. The motorcycle industry employs an estimated 100,000 people. Over 2 m illion motorcycles ar e manufactured annually. All auto as semblers-cum-manufacturers at present are Pakistani. The majority of the motorcycles being manufactured in Pakistan are of 70CC capacity. Most of the parts used in the frame, suspension, engine etc are interchangeable, or can be used with minor adjustments. But all Pakistani motorcycle manufacturers still depend on foreign technology and the country is still unable to design and produce its own motorcycle; especially

the engine and key parts. This makes it difficult for the industry to develop and produce new models/designs to fulfill the demand of the market. Pa ki st an ’s C h in ese d o mi na t ed motorcycle assembling continues to see a strong growth in terms of production and marketing and are forcing the industry an d investors to explore alternative opportunities; including working with international partners and ex p a nd in g i nt o r e se ar c h an d development (R&D) service s. Th e Motorcycle production has increased from 100,000 units at the start of the century, to around two million units per year. Despite this fact, Pakistan still does not h ave any d edi cat ed manufacturer of the key parts of motorcycles such as the Complete Engine, Carbureto r, Drive Chain , Timin g/Cam Chain, hundred s of separate engine components (Cylinder Head, Ring/Piston Set, Ball Bearings, Bushes, Timing Chain, Crankshaft, and many other components) and also the Handle Switches, Lock Sets, Wheels Hubs & Breaks, Complete Front and Rear Shock-absorbers in dismantled condition and Speedometer Movements; therefore these are 90% impo rted through different channels.

Moreover, there was a time that motorcycle production was as low as 100,000 units per year whereas this figure now stands at two million units per year. This fact makes it economically feasible to produce ancillary items; mainly the motorcycle engines. The engin e is a co re part of th e motorcy cle, and th e deman d for motorcycle engines is directly related to the demand for motorcycles. Th e motorcycle engine market has great potential as a result of the booming motorcycle demand. Better performance motorcycle engines are needed due to the demand of shifting from standard two-wh eel motorcycles to mor e | February-2013 | Page 20

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Exclusive Article - continued from privous page sophisticated and technically advanced models. Motorcycle engines are in the process of upgrading to low emission, low vibration, low noise and low heat load engines with displacements over 125cc. Along with the sales of three-wheeled motorcycles (also known as tri-wheelers) in Pakistan, demands for their engines are also growing fast. The three-wheeled motorcycle manufacturers of Pakistan also do not have the ability to produce their required engines. Also, the technology to produce such engines is different from those of two-wheeled motorcycle engines due to their exclusive features. Hence, international market demands will be satisfied by those manufacturers that have the R & D and ma nu fac tu r ing c ap a bi lit ies for three-wheeled motorcycle engines as well. Our motorcycle industry is divided into two markets. The mainstream market consists of manufacturers who are from overseas joint ventures. The other market is the niche market, consisting of SMEs producing Chinese motorcycles.

These are Pakistani-owned companies that depend on design and production technology from abroad. In this market most of the companies are Pakistani and products are sold domestically, where there is little foreign competition. Most of the involved parties have not been utilizing enough technology in terms of design, manufacture and engineering. Due to the importance of the Pakistan motorcycle industry, the Pakistan China Motorcycle Industry Council (PCMIC) has planned to invite foreign investors to set up a support programme for a Motorcycles and Parts Research and Development Institute & Production Facility under the industrial and services cluster grou p. T his will enab le specializ ed industries to have the capabil ity to design and pro duce motorcycle engines and other parts which are stil l not indige niz ed in Pakistan. It will be a profitable and risk free investment for foreign investors which helps strengthen the niche market in the future and also provide technology for design, production and engineering

for Pakistani parts-makers in order to raise their capabilities. The PCMIC seeks a strategic planning alliance in a public/private partnership that should be targeted at stand-alone parts design and manufacturing. The project is in tended to create an automobil e platform for Pakistan that would be relayed to the private sector.

The second phase of the project would address automobile and parts manufacturers, and the PCMIC would collaborate with various Government Departments like the Military Vehicles Research & Development Establishment (MVRDE), MoST, Engineering Development Board (EDB) etc. With such a coordinated approach it will be possible to include niche areas of interest to specialist Government Organizations in the development effort. four areas would be targetable:• Motorcycle Engine manufacturing units & their integrals parts presently imported. • Multipurpose Larger Sized Engines (200 cc and above) • A ft e r S a l es p a r t s m a r k et • New models/designs of motorcycles This latest expansion & development of P a ki s t a n Ch i ne se a u to m o b i l e manufacturers & keen requirements of localization of motorcycle engines up to 200cc plus a big demand of ancillary parts, prompted me to offer my services as Social entrepreneur and Chairman, PCMIC for Pakistan; as I feel my experience could make an enormous difference in the Pakistan Motorcycle Industry, and thus ensure the success of this effort. As a pioneer of the Chinese Motorcycle Trade & Industry businesses in Pakistan,

Monthly AutoMark Magazine and my years of experience in the motorcycle trade & industry plus my contribution towards the flourishing development and launching of several new motorcycl es in Pakis tan, my experience includes senior roles in product development, marketing and business management. I have more than 20 years of experience in the Motorcycle trade & industry. The PCMIC and their associates are committed to supporting foreign investors, especially Chinese & Pakistani entrepreneurs to develop emerging technologies that become the driving industries of the future. I am looking for an opportunity to set-up a facility for a Pakistan moto rcycle industry with extensive experience of settin g-up facil ities for Pakistani companies on a global sourcing for motorcycles and engine manufacturing in Paki sta n. T hese effor ts ar e supposed to facilitate the creation of numerous companies and thousands of jobs. Being a Founder & Chairman of the PCMIC, I am looking for investors, particularly Chinese investors for setting-up an inventive research & development, and production facility with us in Pakistan to Design & Manufacture Pakistan’s own motorcycle eng i nes i n t h e p u b li c/ p r i va t e partnership. I am known to all top Ch inese & Pakistani motor cycle manufacturers with al l aspects of International sales & p urc hase, establishing new channels, selection of right design vehicles for specific markets, dealing with import/export regulations, developing new models, finding real manufacturers as well as making p res ent at ion s a t tr a de sh ow s .

It is with great optimism and interest that I take it upon myself to promote the Pakistan Motorcycle industry sector in China and to invite global Chinese manufacturers to establish joint ventures in Pakistan. I believe that there are several areas in which I could help Pakistan to strengthen the Pakistani motorcycle Industry and also help to export motorcycles made in Pakistan in the International market. | February-2013 | Page 21

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Exclusive Article - continued from privous page The PCMIC proposed plan of inviting foreign investors to set up an inventive research & development facility and centre of excellence of motorcycle engines at Sunder Industrial Estate, Lahore, is meant to ensure that the council is able to provide a comprehensive development capability in these important and interlinked market sectors. Engineers at the centre would be able to deliver turn-key motorcycle projects including small engine program drawings and technology from across China. The proposed project will be carried out by China based Chinese Manufactures and Pakistan’s Chinese Motorcycle Assembler s th rou gh PCMIC, in cooperation with the MVRDE, Local parts Vendors and financial institutes. The project is expected to be co-financed by all the stakeholders and the Government. The Government is being requested to kindly provide interest free loans & allow a tax holiday for five years to this project. If this happens, it will be in the interests of all to d esign the cleanest possible engine within reasonable cost and performan ce co nstraints will require a “Team Approach” and

the project will require intensive investment & huge financial resources. The support and guidance provided by the Government would be a great instrument for the phenomenal growth of this sector. Motorcycle and small engine projects are frequently ch aract er ized by applicatio n-specif ic require me nts . Volumes of production in particular can vary widely from niche applications, through to hand-held tool applications for which the quantities produced can often vastly exceed those of mainstream aut omotive products. Despite these differences, motorcycle and small engine projects tend to share many of the stringent design targets of larger power u ni ts su c h a s o p ti m i zed fu el consumption, regulated emissio ns, quality and, of course, lifetime cost. The existing capability in motorcy cle production & marketing should further enh ance the commissionin g of a motorcycle research & development facility.

Underscoring the PCMIC’s commitment to the growing two-wheeler sector – from luxury Chinese & Pakistani brands to the value-driven products popular in Asia – the PCMIC is pleased to assist them to establish the whole project business scope involving projects of manufacture, assembly and processing of mo tor cyc le b od y p ar ts a nd manufacturing of engines.

PCMIC experts prepare expansion plans for an Engine Assembly Plant with a built-in Quality Assurance System consisting of the Longest Conveyor assisted Motorcycle Assembly Facilities integrated with “Quality Gates” and Test Equipment to meet ever increasing market requirements. Also, the exclusively negotiated and fav orabl e agreements between the Pakistan govern ment and Chinese manufacturers by PCMIC are in place for localization of components through establishment of in-house and vendors’ facilities. Developed parts of 70CC, 125 CC & 2 00 CC t o ensu r e to manufacture the motorcycle engines including backward integration for Forgings & Castings and use special steel materials from Pakistan Steel Mills (PSM). Preparation of Technical and Commer cia l Feasib ilit y for t he production of co re technology of mot orc yc le engi nes and fra me components along with project sup er vision by PCMIC ex pert s.

These efforts are supposed to facilitate numerous motorcycle companies and protect thousands of jobs in this automotive sector and to develop emerging technologies that become the driving industries of the future. If the government works together with PCMIC for manufacturing of these common parts; specially motorcycle engines, based on production figures the total OEM market for these parts can be determined. In addition the replacement market demand can also be estimated at various price options.

Monthly AutoMark Magazine For those parts where critical volumes are available, the Government & PCMIC should try and foster “embedded” linkages between the Government, the Services Cluster Group, Assemblers, Vendors, Importers and banks as a consortium that are willing to make the investment. To do that, Pakistan’s Chinese vehicle manufacturers need an ever more strategic, collaborative relationship with the Government and to be working with the supply chain and other stakeholders to achieve long term goals. I want the Council to help make that happen. The Motorcycle Industry Council will be an opportunity for the industry & the Government to work together on the long term strategic development of the sector.

About writer-: Muhammad Yousuf Shaikh, the Founder & Ch air man of Pakista n Ch ina Motorcycle Industry Council, offers his analysis of the motorcycle trade & industry trends from Pakistan & China. The chairman PCMIC working with motorcycle trade & industry for over two decades, Yousuf believe that Chinese investment could help Pakistan to design and produce its own automobiles mainly motorcycles engines as the Chinese & Indian motorcycle manufactures design & pr od uc e their own prod ucts. Motorcycle Industry Require intensive investment & huge financial resources, PCMIC proposed plan to setting up an inventive research & development and p r odu c tio n fa ci lit y to p rod u ce motorcycles and small engines at Sunder Industrial Estate Lahore. The result of this development could have profound i mp lic ati ons on th e P akist an’s motorcycle industry over the next d ec ad e. To re ac h h im , em a il: | February-2013 | Page 22

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CNG Rickshaws or LPG Rickshaws: No relief in fares Consumers argue why the government encouraged CNG in rickshaws in absence of any tariff or fare plan. These rickshaws were launched without fare meters while some rickshaw owners had printed on the windscreen Rs 9 or 11 per km fare on which they were bound to charge from the commuters.

Lau nch ed a s consu mer and environmental friendly fuel amid fanfare, compressed natural gas (CNG) is no more a cheap source of fuel in terms of high fares being by CNG rickshaw owners. The fare becomes more challenging to pay for consumers on gas load shedding days or any law and order situation. Already groaning over rising cost of living, another problem is added in consumers’ life to start preparations either to get first place before a long queue emerges at a CNG outlet ahead of closure of gas station or taking the same place on opening of the outlet after load shedding. Before Supreme Court’s intervention late last year, pump owners of CNG were making w in dfalls. Since gas load sheddin g became a serious issue followed by reduction in its price at Rs 54 per kg, people realized its importance in their life owing to high cost of living in the PPP-coalitio n go vernme nt. Though CNG price has been raised, it still saves a lot as compared to petrol. This is the reason that many well off people having new 1,300cc or above engin e capacity vehicles are seen prominent in the long queues at the CNG outlets. After CNG-OGRA row followed by various strikes by CNG stakeholders the price of CNG had been raised. However,

gas load shedding of at least two or three days a week in Sindh and more than three days in a week in up country have made the life of people more miserable who spend their precious time standing in long queues for more than half an hour. Lines usually erupt hours before opening of CNG outlets after load shedding. While first encouraging the people and the stakeholders to put heavy investment in CNG sector and when they made it, the government is now all set to phase out the cheap fuel option in coming months in order to promote LPG and LNG. As a large number of vehicle owners suffer owing to CNG load shedding while another worst victims perhaps are the people who travel on CNG rickshaws by

paying substantial fares. The already high fare charged by rickshaw owners becomes more expensive on the CNG load shedding days. Consumers argue why the government encouraged CNG in rick shaws in absence of any tariff or fare plan. These rickshaws were launched without fare meters while some rickshaw owners had printed on the windscreen Rs 9 or 11 per km fare on which they were bound to charge from the commuters. Perhaps the only benefit consumers witnessed after introduction of CNG rickshaw was its pleasant sound and its spacious seating capacity with attractive interior rather than other notable reliefs especially in terms of fare. On the contrary the unpleasant sound of LPG rickshaws still pierce in the consumers’ ears though their owners offer at least some relief by slightly charging less fare as compared to CNG rickshaw owners. The role of the government was to facilitate the end users with cheap CNG and its fares but it had never paid any heed leaving the consumers to suffer at the hands of merciless CNG rickshaw owners and operators. Consumers said why the government has not introduced any reasonable fares while introducing the CNG option in rickshaws. Certainly no body is happy to pay unfair tariff but sometimes consumers become compelled to take | February-2013 | Page 23

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To save the running cost, many CNG rickshaw owners have also installed LPG kit and cylinders knowing that LPG is more fuel efficient than CNG. However, they have dangerously put the LPG cylinder either on right or left side of the driving seat thus putting consumers’ life more threatened as CNG cylinder is already fitted below the passenger seat. . Qingqi rickshaw consumes Rs 500 per day of petrol but after paying out all expenses the driver said he earns at least Rs 500-600 per day or sometimes more on religious occasions. the costly ride when other modes of public and private transports become scarce owing to strikes, protests and law and order situation. CNG rickshaws have a gas fil ling capacity of three kg in the cylinder which usually they recover easily as one kg of gas is enough to run the rickshaw at least 25-30 km. They demand Rs 200300 per kg for less than 15km journey. In case of CNG load shedding or lawlessness in the area they make windfall by charging over Rs 300 or sometimes Rs 400 by claiming of using petrol instead of gas. A person should have Rs 70-100 in his pocket for one side trip if he intends to go to Hyderi North Nazimabad from F.B. Area in CNG rickshaw which is definitely un- justified keeping in view of ju st five to six km distance. In contrast, LPG rickshaw owners take the passengers for up to 15 km at Rs 180-220. However, the LPG rickshaw owners definitely earn good amount after winding up their daily voyage as LPG gives more mileage than CNG. CNG rickshaw population continues to grow every month since LPG rickshaws and black and yellow cab are fast depleting from the city. While allowing CNG rickshaw designs and inside seating capacity requirement, the government did not bother to check the comfort level owing to its inferior suspension and shock resistant systems which give severe jerks while sitting on the back and on even smooth roads it gives a bu mpy rid e exp eri ence. No one can deny th e benefits of introduction of CNG rickshaws in terms of new investment, job avenues, saving import bill of petrol and diesel etc but the government literally ignored the high tariffs and comfort level in CNG rickshaws. However the concept of installing a fare meter in LPG rickshaws had already gone few years back as hardly any rickshaws now have a meter. Consumers

travel on LPG rickshaws on verbal agreement. Perhaps this was the reason that the government realized that any meter in CNG rickshaws would hold no value for consumers in view of failure in LPG rickshaws.

But there should be some alternative way to provide tariff relief to the CNG rickshaw consumers. When more players enter in a market it certainly develops competition to lure the consumers. But in Pakistan this concept has died in many sectors. Consumers were aware of cement, automobile and other cartels but they never expected cartel like situation among CNG rickshaw owners standing at the road side or running on the roads. Surprisingly they have mentally fixed the fares and if a person asks a rickshaw owner for going to Saddar or other areas from district central then the fare demand of each rickshaw owners will be familiar to each other. Consumers usually find a particular class

running these CNG rickshaws in Karachi mainly and not the Pathans who used to rule the LPG rickshaws. Recently many people doing private jobs are also seen running the vehicle by themselves as part time job while some have become owners of CNG rickshaw and rented out. Some CNG rickshaw owners standing at Gulberg did not agree that they were fleecing consumers. “Has the food inflation and rising cost of living not affected our lives. We also pay high gas and tariff bills and buy costly edibles. We also have kids and a family,” a CNG rickshaw driver Saleem Khan said. He said while running rickshaw on rent, he has to pay per day Bhara or rent to the owner ranging between Rs 300 to Rs 500. Pe rh aps the rickshaw owners are satisfied but those who have obtained the vehicle on monthly installment are really facing a cut throat life, he said adding that month ly in stallment amounts to Rs 4,000-5,000. While talking to some rickshaw owners, it was gathered that a rickshaw owner definitely earns Rs 700-800 per day and it exceeds between Rs 1,000-1,500 in case of law and order situation and on special occasions. This per day earning is calculated by excluding the per day CNG filling cost of Rs 200-300 per day. They said that the CNG gradually destroys the petrol engine of rickshaw or any other cars. After running the vehicle on longer time on gas, the vehicle brings out the entire saving on one day resulting in problems in carburetor and in fuel supply systems. They said either CNG rickshaw or car engine they run in great pressure on CNG as compared to petrol. Some rickshaw owners look not satisfied with the high maintenance cost which ranges between Rs 2,500-3,000 per month on oil change due to hectic running. They said that rising number of CNG rickshaw may be filling the vacuum of | February-2013 | Page 24

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Pakistan’s Gas Crisis due to Gas Theft …& Unaccounted for Gas (UFG) Petroleum products and natural gas account for about 80 percent of commercial energy use, hydroelectricity for about 15 percent, and coal and liquefied petroleum gas (LPG) for the balance. Pakistan has spent 43.5 percent (or $3.815 billion) more dollars during the July-April 2011-12 periods on import of petroleum products as during the ten-month period the country imported petroleum products worth $12.58 billion against $8.76 billion in corresponding period last year. Until 1999, the government tightly controlled the oil and gas industries of Pakistan. No decision could be made without referring to the higher instances, and when decisions were made, they were often based on political as opposed to economic considerations. Since early 2000, an ambitious, pro-market, reform program is being implemented, and gradually, the straightjacket under which the industry used to operate is being dismantled. As a result, the sector has changed dramatically over the past five years, and Pakistan now leads South Asia in sector reform. Pakistan has been lucky to have a number of natural gas discoveries in the past 4 to5 years with an output potential of more than 1 billion cubic feet of gas per day within the next few yea rs. T h e gov ernm ent i s encouraging fast-track development of these discoveries through different incentives to bring the additional gas in th e na tiona l p ip eline net wor k. Role of Gas in the Future Energy Mix Petroleum products and natural gas account for abou t 80 percent of commercial energy use, hydroelectricity for about 15 percent, and coal and liquefied petroleum gas (LPG) for the balance. Pakistan has spent 43.5 percent (or $3.815 billion) more dollars during the July-April 2011-12 periods on import of petroleum products as during the tenmonth period the country imported petroleum products worth $12.58 billion against $8.76 billion in corresponding period last year. Pakistan Bureau of Statistics (PBS) bulletin indicates that

under the petroleum group, petroleum products import stood at $8.35 billion against $4.92 billion last year, showing an increase of 69.8 percent. Besides, crude petroleum import also showed an increase of 49.9 percent to $4.23 billion during these ten months from $3.85 billion in same period last year. Industry exp er ts said th at th e sw elling consumption of petrol in the transport sector particularly in two and four vehicles have raised its imports across the country. The shrinking disparity between the petrol and CNG prices coupled with greater reliance on petroleum products after unavailability of natural gas also pushed up its daily consumption during this period. On the other hand, gas reserves at 27.0 trillion cubic feet (TCF) are equivalent to more than 25 years of current production (about 900 billion cubic feet [bcf] per annum), and there is scope for a significant increase in gas production, and hence in the share of gas in the

commercial energy mix. The shares of hydroelectricity and c oa l a r e l o w , notwith standing the country’s large hydropower p ot e n t i a l , a n d Asif Masood substantial coal deposits which have been discovered in S ind h pr ovi nce . Und e r th e circumstances, it would be desirable to diversify the sources of su pply, particularly aw ay from petroleum products, on the basis of not only str ategi c bu t also financia l considerations.

Macro-Economic Impact Given the high level of imports, the economy is vulnerable to fluctuations in world market prices of crude oil and products. During the recent period of high in ternational prices annual petroleum imports accounted for 33 p er cent of tot al im por t s (and represented up to 37 percent of export earnings). By contrast, in earlier years (when international prices were lower), the share of petroleum imports was 1517 percent of total imports and between 19-21 percent of total export earnings. The oil and gas sector accounts for a significant share of gover nment revenues.

Natural Gas Crisis In ongoing winte r season the gas shortages as usual have also increased, and there is rationing of piped gas. Reliance on imported fuels has increased and is increasing the cost of electricity | February-2013 | Page 25

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Exclusive article - continued generation and adding to the country's balance of payments problems. The growing energy shortages have made life difficult for Pakistanis across the board. The quality of life of citizens has deteriorated. Economic growth rates have been stunted, and industry and ag ri cu ltu r e h ave su ffered . T h e Government of Pakistan, recognizing the magnitude of the crisis and its effect on the people and the economy, has undertaken emergency measures to address, manage and reduce the impact of the crisis. The reasons for present crisis in gas sector have both technical & governance aspects. These issues have eme rged due to missing link with common citizen. Th e hy d ro ca rbo n s s e cto r i s representative of this planned approach to economic development and its pitfalls. Although the primary focus has been on oil, both oil and gas have been subject to similar type of policies. Historically, oil was the primary focus of policy.

Issues & Challenges The glob e abounds w ith d ismal examples of how oil and gas revenues have disrupted peace, stability and the governance infrastructure in many co untries. The dis covery of oil in commercial quantities places th e country at risk of the ‘resource curse’ syndrome and could threaten the consolidation of the democratic gains. It is important to engage/support local natural resource groups in ongoing legislative/policy reform initiatives to ensure the development of appropriate, acceptable, equitable, progressive and transparent framework for the merging oil and gas sector of the economy and work to facilitate the involvement of host communities in the full stretch of natural resources exploration and track ap p r o p r ia t e t r a nsp a r enc y a nd accountability mechanisms within the machinery of government and public administration to ensure adequate al l oc at i on s fo r t h ei r p ec u l ia r development and protection of their environment. The fundamental aim is t o s u p p o rt a ct i ve c o m mu ni ty participation (grassroots / local voices) in local government decision making and for the effective implementation of local development plan s. The only purpose is to build on its support for ongoing advocacy for the promulgation of a right to information legislation which is an essential part of a well functioning democracy and good


Non-Customer gas theft in un-accounted for Gas (UFG) Advisor to Prime Minister on Petroleum Natural Resources Dr Asim Hussain has revealed that as many as 200 CNG stations were involved in gas theft. Oil and Gas Regulatory Authority had been informed of the gas theft; but no action was taken against these outlets.

The advisor refused to give names of the CNG stations involved in the gas theft but said the OGRA has been given the list containing their names. Gas theft is also on the rise, as it surged to 380 million cubic feet per day (mmcfd) that is 200 mmcfd from Sui-Northern Gas Pipelines (SNGPL) and 180 mmcfd from Sui-Southern Gas Company (SSGC) systems. Ministry of Petroleum and Natural Resources announced that gas is being illegally u tilized by all consu mers includ ing industr ial, commercial and domestic. Gas pipelines in Pakistan suffer from theft of nearly 380 mmcfd on average, of about 12.5 percent of total production, a ratio that is significantly lower than line losses in the power sector, but still high and ris in g. The co untry at present is confronted with serious energy crisis.

To manage these crisis the government has recently announced gas load management plan under which gas supply to CNG stations and industry is being suspended till February first week 2013. Pakistan’s current gas demand is met entirely through domestic production, which at present stands at 4,000 mmcfd. The companies are supplying about 2,900 mmcfd through their extensive transmission and distribution network of some 140,000 kilometers and serving 6.3 million consumers in their

respective franchise areas. The level has been stagnant for the last few years as new gas field discoveries hav e been scarce an d the cost of exploration keeps rising rapidly owing to the added burden of security. According to Petroleum Institute of Pakistan’s (PIP) estimates domestic gas production will decline to less than 1,000 mmcfd by 2026 as the existing fields are exhausted and the energy industry fails to find new ones to replace them. Wh ile new fields such as Zamzama and Manzalai have come online, they are much smaller than some of the older fields, such as Sui and Qadirpur, where gas production has started declining with each passing day. One option currently being explored by the government is importing gas from Iran, which will add about 750 mmcfd to the country’s supply. However, analysts warn that consumers must be prepared for its adverse impact on gas prices, as the gas will be at least three times more expensive than domestic production costs, causing overall gas prices to rise. Rise in unaccounted for gas (UFG) which means difference between total volume of gas purchased by th e companies and volume of metered gas supplied to consumers. UFG levels of Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) h av e remained abnormally high of over 10 per cent last fiscal year. International bench mark of UFG for companies is two per cent. According to OGRA estimates one per cent of UFG of both companies at average price of fiscal year 2009-10 transla ted to a revenue loss of Rs2.5billion per year. Massive monetary losses in the form of high UFG losses are recovered by utilities by passing on the impact to consumers. Effectiv e enforcement of UFG benchmarks could result in savings for consumers. Both companies, SSGCL and SNGPL, had filed petitions for re view of UFG benchmarks as they claimed they were facing gas theft due to law and order situation in certain areas. Government has recently imposed gas theft act which allows imprisonment and fining people involved in gas theft. OGRA has recently enhanced 11 to 14 per cent in gas tariff of two gas utilities from January 01, 2013. | February-2013 | Page 26

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Automotive Sector - Update

Local industries to suffer from India MFN, says USAID

A study conducted by US Agency for International Development (USAID) said that opening of free trade with India under Most Favourite Nation (MFN) will be an onslaught on local industry by Indians, and the agriculture sector will suffer. The study recommended that tariff quota method should be adopted for import of steel, iron, pharmaceutical and agriculture sector goods from India under MFN status regime. The report further revealed that in the global scenario, Pakistan’s export to India will grow. The report revealed that though India had not been given (MFN) status, Pakistan had already operated under it by liberalising 97 percent trade for Indian goods. Commerce Ministry was required to conduct a study regarding impact of liberalising trade with India before taking the decision to grant MFN status to India. It had got the approval of Cabinet to grant MFN status to India by December end 2012. “But the study has been conducted in January 2013 which exposed the flawed plan of commerce ministry to grant MFN status to India without going through any comparative analysis,” an official said adding that USAID study had confirmed the concerns raised by all stakeholders in cl uding te xtil e,

industry an d agricu lture sectors. According to a study conducted with the technical assistance of USAID to assess the impact of liberalising trade with India following MFN status, Indian trade regime is more restricted for Pakistani exports. The study noted that Pakistan had given much more to India in allowing items to export to Pakistan. “However, India has liberalised only 43 percent trade for Pakistani goods and our major exports are not being given preferential treatment by the former,” the renowned economist Hafeez Pasha said in a report. The study recommends that Pakistan should not discontinue negative list at all. It said the complete phase out of negative list should be avoided to protect the local industry and agriculture sector. The report observed that agriculture sector was a real issue for Pakistan to open for trade with India under MFN status and recommended that sensitive list on agricultural goods should be expanded to protect the major crops. It noted that tariff on cotton import from India is zero but India had tariff restriction in this regard. The study also accepted that cotton was a genuine issue and recommended a quota system for Indian cotton exports to Pakistan should be introduced to protect the farmer community. It said there should have been parity in textiles. The report revealed that India was giving subsidy of $ 297 per hector whereas Pakistan gave $ 188 per hector. India is giving subsidy almost on all items including fertilizer and power. The opening of trade for Indian industry will be an onslaught by Indian Industry and therefore the study recommended that “we should give a chance to industry to survive under MFN status with India”.

No additional customs duty on bike parts import The Federal Board of Revenue will not charge additional customs duty on subcomponents and components, imported in an y kit form by new entrants (manufactures) in the motorcycle industry. The FBR has amended SRO.693(I)/2006 dated July 1, 2006 through an SRO.09(I)/2013 here on Wednesday. According to the notification, a new provision has been inserted in SRO. 693(I)/2006. In line with "Policy for New Entrants" app roved by the Economic Co-ordination Committee (ECC) of the Cabinet in Case No ECC135/14/2012 dated October 23, 2012, the additional custom duty leviable under this notification shall not be ch arged on sub-components and components, imported in any kit form by a manufacturer declared to be a new entrant. Such new manufactures have to be approved by the new entrant committee comprising repr esentatives from Ministry of Industry, Ministry of Commerce and Board of Investment for the motorcycles of 100cc and above with new technology for a period of five years from the start of commercial production. This is subject to the condition that at the start of commercial production by new entrants, localisation level shall be kept at a minimum of 25 percent. By the end of five years, localisation level shall reach a minimum of 85 percent and the agreement template for new entrants, including the localisation plan, will be developed by Engineering Development Board (EDB) in consultation with the National Tariff Commission (NTC). The agreement would be designed in such a way that new entrant scheme is not m i su sed , not if ic at i on a d d ed ...

85hp tractors: Free import of parts hits localisation The duty-free import of parts of 85HP (horse power) tractors is a major reason for low localisation level of tractor components in this segment, according to industry sources. Compared to them, 90 per cent parts of the smaller, standard tractors of 4050HP are now being made in the country.

Vendors of tractor parts point out that under the previous Auto Industry Development Programme (AIDP) the government issued SRO 693 that imposed 32 per cent duty on all car parts manufactured locally. The same duty was imposed on 4050HP tractors manufactured by the two domestic tractor companies. “When the

AIDP was approved seven years ago the local production of 80HP or bigger tractors was nominal ranging between 200 and 250 units per year. “The situation demands that the efforts should be made to indigenise its parts to the same level as has been achieved in 40-50HP segment,” the vendor said. | February-2013 | Page 31

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International Automotive - Update

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Japan`s top automakers post record 2012 sales

Japan`s three biggest automakers Toyota, Nissan and Honda on posted record sales for 2012, as the results confirmed that Toyota recaptured the world`s biggest automaker crown.The rosy results underscored the trio`s recovery after Japan`s quaketsunami disaster in 2011 devastated sales and production, and highlighted strong deman d in the key Asian and US markets. That helped offset weakness in debt-hit Europe and a downturn in China stemming from a diplomatic row that sparked a consumer boycott of Japanese goods in China, the world`s biggest vehicle market. Toyota said sales last year soared 22.6 per cent to 9.75 million vehicles, while Nissan saw a 5.8 per cent onyear rise to 4.94 million units with record numbers

in the US market. Honda, Japan`s number-three automaker, logged sales of 3.81 million vehicles, up from 3.09 million a year earlier. The latest figures confirmed that Toyota regained the global sales title which it lost in 2011 to US-based General Motors, largely due to the natural disasters. The crisis and flooding in Thailand where Japan ese automakers hav e production plants during 2011 marked a `particularly harsh year`, said Nomura auto analyst Masataka Kunugimoto. Less affected by the dispute, Toyota hiked its profit forecast to 780 billion yen for the same period, up from 760 billion yen, although it trimmed its annual sales forecast to 21.3 trillion yen and credited much of its improved ear ning s ou tlook to c ost cu ts. The long-standing row flared again in

Toyota back at No. 1 selling nearly 9.75 million vehicles in 2012

Maruti Suzuki buys land for fourth plant – report

Honda develops Smart Ecological Paint process

Maruti Suzuki India Ltd, the country’s biggest carmaker by sales volume, has purchased land in Gujarat for its fourth plant, with a view to roughly doubling annual production capacity to about 3 million units, the Nikkei business daily said on Sunday. The company purchased the land for a new factory with capacity of about 750,000 units a year, the company’s Chairman, R.C. Bhargava, told the Nikkei. The fourth plant is slated to begin production in 2017 at the earliest and help expand exports to Europe and the Middle East, the report said. Maruti Suzuki is set to begin work by March on its third plant in Mehsana district, also in Gujarat, with production to begin in 2015, it added. Maruti, controlled by Japan’s Suzuki Motor Corp, is the leading producer of small cars in India. Two years ago, it produced every other new car sold in the nation...

Japanese automobile manufacturer Honda has developed the Honda Smart Ecological Paint (Honda S.E. Paint) process at its Yorii Plant at Saitama Factory in Japan. The new painting technology is claimed to reduce the middle coating process from a common 4-coat/3-bake aut o body painting to a 3-coat/2-bake waterbased painting process. In addition, the company also plans to introduce a wall-mounted paint robot system with an in-built quick load / quick wash paint tank. The combined use of the paint and robot will increase painting efficiency while reducing usage of paint materials, decreasing the number of process by 40% and emitting 40% less CO2. Along with the paint and robotic technology the company also plans to adopt various technologies and start pro duction with an energy saving plant.....

Toyota Motor Corp. released its tally for global vehicle sales for last year Monday at a record 9.748 million vehicles — a bigger number than the estimate it gave last month of about 9.7 million vehicles. It was already clear Toyota had dethroned General Motors Co. as the Detroit-based aut omaker fell short, selling 9.29 million vehicles. GM had been the top-selling automaker for more than seven decades before losing the title to Toyota in 2008. GM retook the sales crown in 2011, when Toyota’s production was hurt by the quake and tsunami in northeastern Japan. The latest results show Toyota’ s powerful comeback. Global vehicle sales for the maker of the Camry sedan, Prius hybrid and Lexus luxury model surged nearly 23 percent from the previous year. Overseas sales jumped 19 percent, while sales in Japan, where the economy has been troubled, reco vered a whopping 35 perce nt. Volkswagen AG of Germany, the world’s No. 3 automaker, sold a record 9.1 million vehicles around the world. All three automakers play down the significance of the sales ranking and say they are focused on making attractive products....

September when Tokyo nationalised some of the tiny archipelago that is also claimed by Beijing, setting off huge demonstrations across China and the consumer boycott. Japanese factories and businesses across China temporarily closed or scaled back operations over fears of being targeted by angry mobs. On the production side, Toyota said that it made 9.90 million vehicles last year, up 26.1 per cent, while Nissan posted a 5.5 per cent production increase to 4.88 milli on u ni ts i n 2 012. The automakers have been forced to recall millions of vehicles over safety and quality concerns in recent years, while being hit by the strong yen which makes their products less competitive overseas and shrinks repatriated foreign income... | February-2013 | Page 32

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International Automotive - Update

Monthly AutoMark Magazine

Coming of age: China's used car market outpaces new sales growth Used car sales in China grew faster than new car sales for a second straight year in 2012, and should account for half of all sales within seven years as the world's b ig gest au tos ma rket ma tu res. While new cars still outsold used vehicles by more than 3 to 1 last year, they are sputtering after a period of breakneck growth, and the potential for the preowned market to be the industry's growth engine is prompting foreign automakers to open more used-car outlets. A key target for them are buyers like Jiang Meng, a 32-year-old office worker in the southeastern city of Guangzhou, who this month went shopping for a sport utility vehicle, and h adn' t considered a second-hand car until she came across a used car dealer run by Nissan Motor Co's local joint venture. "I wanted an SUV, but I wasn't sure of getting a used one until I stepped into the store. There are so many models and they offer a warranty," said Jiang, who traded in her 2-year-old Nissan Tiida

First formal rules on auto warranties As China's automotive market continues to mature, car owners will have greater consu mer prote ction through the nation's first mandated auto warranties fo r mall y a do p te d b y t he Ge neralAdministratio n of Qual ity Supervision, Inspection and Quarantine last week. Set to take effect on Oct 1, the new regulations require carmakers to offer warranties of at leasttwo years or 50,000 kilometers. Its also has provisions that require replacement of the entire vehicle if it has been under repairfor more than 35 days or more than five times in the wa r ra nty p er iod for th e sa me qualityproblem. As well, customers can ask for a new vehicle if key drivetrain components such as the engineor transmission require two repairs for the same problem over that time....

sedan for a 4-year old silver Qashqai. The deal cost her 25,000 yuan ($4,000). A new Qashqai is priced at around 189,000 yuan. "The car was very clean inside and outside and it drives very well. Many of my friends thought it's new," she said. GROWTH ENGINE Still in its infancy, the loosely regulated used car mark et is dominated by thousands of domestic traders. Deals are often struck at auto fairs in stadiumsized halls or open-air markets where car quality can be questionable and pricing opaque. Nevertheless, in a first survey of the used car market by Nielsen and the China A s so c ia t i on o f A u t o mo b i le Manufacturers, almost a third of those planning to buy a car said they would c onsi de r a p r e-ow ned veh ic le. Foreign carmakers paid little attention to the pre-owned market as they sought to win market share by selling new models to China's newly wealthy. Also, in a market where annual sales were

just 3.1 million as recently as 2005, there weren't many used cars av ailable. That's now changing as cars bought during China's auto boom are beginning to age, and as rising incomes draw drivers into buying a second, third or even fourth car. Just 4.8 million used cars were sold last year, while 15.5 million new cars rolled out of showrooms, according to data from the China Automobile Dealers Association (CADA), an official industry group that tracks used car sales. But the used car market's growth of almost 11 percent outpaced new car sales growth of 7.1 percent. Over the next three years, used car deals are expected to more than double to 10 million, and catch up with new car sales, at around 35 million, by 2020, CADA deputy secretary general Shen Rong has forecast. In the United States, the used car market is around four times the size of the new c ar m arket in sales volum es....

Chinese auto revenues BASF starts construction have more than of new automotive coatings plant in China doubled in 5 years The total revenue generated by the automobile industry in China has risen 20.3 percent during the last five years, an increase of nearly 250 percent in half a decade, foreshadowing a bright future. Final totals for the industry will total as much as $440.2 billion for last year, thanks not only to the growing demand in the sprawling Asian nation, but also to the growing value of automotive exports, according to a report titled Automotive Manufacturing in China, prepared and posted by IBIS World, an industry and market research firm based in Los Angeles. A report filed on last year projected Chinese automotive exports would top a million units in 2012. Though only five percent of the foreign auto sales worldwide, it is a number expected to rise over time.

First Pakistani automotive magazine available in China

BASF Shanghai Coatings, a subsidiary of the German chemical company BASF, has started construction of a new automotive coatings plant at the Shanghai Chemical Industry Park in China. Scheduled to start production in early 2014, the new production plant is expected to support the company's existing plant in Shanghai, which has been operating for over 15 years. BASF Asia Pacific president Dr. Albert Heuser said, "This investment helps demonstrate BASF's commitment to addressing these needs and supporting t he d ynamic grow th of Ch ina 's automotive industry a s the number one supplier from the chemical industry. BASF Coatings Solutions Asia Pacific senior vice president Peter Fischer said: "We will continue to invest and expand our automotive coatings production capacity, providing coatings solutions according to the latest and most environmental friendly manufacturing processes and technologies." | February-2013 | Page 33

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Exclusive Article - continued provide power to the front wheels. In this system, power flows from the engine, through the torque converter to a large chain that sends the power through a 180 degree turn to the transmission that is along side the engine. From there, the power is routed through the transmission to the final drive where it is split and sent to the two front wheels through the drive axles. On a rear wheel drive car, the transmission is usually mounted to the back of the engine and is located under the hump in the center of the floorboard alongside the gas pedal position. A drive sh aft connects th e rear of th e transmission to the final drive which is located in the rear axle and is used to send power to the rear wheels. Power flow on this system is simple and straight forward going from the engine, through the torque converter, then through the transmission and drive shaft until it reaches the final drive where it is split and sent to the two rear wheels. How to get more years and less trouble from your Transmission? The key to long life of any vehicle’s component is based on its care and preventive maintenance. If you brush your teeth frequently and periodically have check-ups by the dentist, you’re less likely to have a toothache. The same principle applies to your car’s m aintenance w h en it com es to the transmission (check your vehicle’s maintenance schedule for details). Its tender care is in your hand and its starts with you, when you make the very first move.

Driving Care Tips Always park your car with the parking brakes on to avoid excessive strain on the transmissio n during shif ting, especially when you are parking on a slanted driveway. Warm up your engine for a short time before shifting especially in the winter. This practice is also good for the engine and transmission hydraulic/lubrication system. Apply the brakes and shift slowly from Park-Reverse-Neutral and into Drive. Always pause at Neutral to avoid jerky shifting and release the foot or hand brake once it has been shifted into Drive. Drive slowly for the first few kilometres to bring the engine to a good operating temperature. This is better

for performance, especially in cold weather when your transmission is being used in overdrive. Always keep overdrive on, (If your vehicle has an OD switch on the shift stick) unless you are driving in heavy snow or mud or driving up or down hill at slow speeds. Most cars have overdrive built in as a standard feature. Overdrive works after 60 km/h on most vehicles (check your owner’s manual for details), and you can notice a drop in engine rpm as soon as its kicks in. Its proper use will reduce stress on your engine, thereby improving gas mileage. Driving without overdrive at speeds above 70 km/h can cause serious damage to your transmission. Keep an eye on your dash if OD OFF light is on. Check your shifter position and use with respect to speed. Do not hold your vehicle in drive on an upgrade hill with foot on gas pedal. This practice will add undue strain on your transmission and overheating can cause serious internal damage. Use brake to release stress. Do not add excessive carrying loads more than that which is recommended by your vehicle’s manufacturer. Towing or pulling an overweight trailer can cause it to overheat and can lead to potentially serious damage. Never shift to Reverse or Park until the car comes to a complete stop. Never shift from the Parking mode when engine rpm is higher than normal idle state. Do not tailgate. Every time you stop and regain momentum you are adding more strain on the transmission parts that may cause excessive wear. Always keep a safe distance and maintain a

constant speed. This practice will save your brakes and tires from unnecessary wear and tear and will also get you better gas mileage. When you are having continuous stop and go traffic in hot weather, make sure the engine cooling system is operating at its peak because the same system is providin g coolin g to transmission lubrication system. You can shift into neutral to cool down transmission. Do not spin your wheels when you are stuck in snow or sand or mud. This may burn out your transmission and internal parts due to the heat and friction. Use traction aids such as kitty litter or sand. If you have none, use your floor mats in the front and back of drive wheels. On the front wheel drive cars, use mats on the right front wheel as it has more torque. Front wheel drive cars have more weight at the front due to the engine and likewise, have less weight on the back. It may be a good idea to keep two small salt bags or sand bags in the trunk to increase weight and traction at the back during winter driving. If you find yourself stuck in snow,or sand or mud, keep your wheels straight, shift into low gear and rock your car backwards and forwards slowly. Do not rev the engine. Once you are out of the snow, shift back according to your driving conditions. Don’t forget to collect your floor mats. If you are stuck badly and can’t free yourself, call for rescue service. Tow with the driving off ground or use dolly. Winter tires are highly recommended for safe winter driving. They also help reduce spinning on ice and snow.

What can damage your | February-2013 | Page 34

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Exclusive Article - continued

The automatic transmission is most commonly used in today’s vehicle because of its self gear engaging operations and stress free shifting, especially in heavy traffic. Standard or manual transmissions are rarely used in North America; they are more common in heavy duty vehicles or select sports cars. automatic transmission? Most transmission troubles are due to overheating and lack of lubrication. At higher temperatures the transmission fluid burns, loosing its lubricating qualities and becomes oxidized leaving deposits all over the inside of the transmission. Exposed to the heat, the rubber seals and gaskets inside the transmission become hardened causing leaks. The metal parts warp and loose t h eir str eng th . H ow ever , poo r maintenance, too low or too high fluid levels, wrong fluid types and bad driving all contribute towards transmission failure sooner or later.

Oil… life blood of your transmission! Importance of oil in the transmission is just like blood in your body, and proper lubrication is a lifeline to deliver troublefree performance. Automatic transmission oil serves a multitude of purposes. Among other thin gs it cleans, cools, lubricates, transmits force and pressure, inhibits varnish build-up and protects the transmission on a day-to-day basis.

How to check automatic transmission oil Park your car at a level surface and engage the parking brake. Start the engine. Set transmission shifter in "P" (Park) position, and let the engine idle (on some cars this procedure may be different, check the owners' manual for details). Pull out the transmission dipstick. Check your owner’s manual to locate the transmission dipstick. Wipe it off with a clean lint free rag. Insert it back carefully all the way into its place. Pull it out again and check the fluid level. If the engine is cold, it should be within "COLD" marks. If the car was driven and is fully warmed up, the level should be at the upper end of the "HOT" mark. Check every 3 months to make sure the level is ok. How to top up the transmission oil It's very important to use only specified transmission oil - check your owner’s manual or simply visit your local dealer. They always have proper transmission

oil. Incorrect oil can even destroy the transmission. Add a small amount of the oil through the dipstick pipe. Wait for a few minutes - let the oil flow down. Recheck the level again. Do not overfill; it may cause serious problems with your transmission.

Transmission Tissue Test Tips The color and texture of the oil can be an in dicator of the transmission’s interior health. Just like a doctor can tell a lot about your health by taking a blood test. Take a clean napkin, put a few drops of oil and watch its condition and spreading circle. If the oil is spreading smoothly, is clean and transparent (like reddish or green color depending on the type used) this is normal and most likely doesn’t require immediate changing. However, over the time when the oil become s bro wn, it may be time to change. Some manufacturers require changing the transmission oil and filter at 60, 000 km or every 3 years-whichever comes first. Check your owner's manual for a maintenance service schedule. In most cases, during a transmission service only about half of the oil is able to be removed from the unit. This is because much of the oil is in the torque converter and cooler lines and cannot be drained without major disassembly. Therefore it is highly recommended to completely flush your transmission by a special process and equipment. This process will remove sludge and varnish by-products of old, oxidized oil. These deposits, if left inside, can build up in critical areas and may cause erratic shifting or extensive damage. Now put the same napkin in front of your headlight with the high beams on, and see through it for black/dark brown, dirty, milky and metal particles in the oil. You can also use a strong magnet to check for metal shavings and other debris which are often indicators of impending transmission problems. If you find any of these conditions - your transmission might not last for long. See your dealer or transmission specialist as soon as you can before it breaks down on the road.

Spotting problems before they get worse Watch for leaks or stains under the car If there is a persistent red oil leak that you are sure is coming from your car, you should have your dealer or shop check to see if it is coming from your transmission or possibly from your power steering system (most power steering systems also use transmission oil and leaks can appear on the ground i n rou g h ly th e sa me a rea s as transmission leaks). If all you see is a few drops on the ground, you may be able to postpone repairs as long as you check your oil level often (but check with your dealer/ technician to be sure.) If transmission oil levels go down below the minimum level serious transmission damage can occur.

Be sensitive to new noises, vibrations and shift behaviour A modern transmission should shift smo othly an d quietly under light acceleration. Heavier acceleration should produce firmer shifts at higher speeds. If shift points are erratic or you hear noises when shifting, you should have it checked out immediately. Whining noises comin g from the floorboard are also a cause for concern. If caught early, many problems can be resolved without costly transmission overhauls. Even if you feel that you can't afford repairs at this time, you should at least have it checked by your dealer or transmission technician.

Take care of your transmission and it will take care of you… Safe and happy motoring! This exclusive article on Auto Trans “ Mi ssion” …......Z ero to M oti on It’s all Gear’s Game! has been written by Mohammad Shahzad S.A.E., D.M.P. specially for Month ly AutoMark Magazine. (A utomotive Engineer/Doctor of Motors) He is a Senior Group Manager for Customer Management Operations with The Brimell Group, Brimell Toyota and Brimell Scion in Toronto, Canada. Free advice for Automark readers; please do not hesitate to co ntact him at sh ah @b r i m el l t oy ot a .c om or | February-2013 | Page 35

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Car / Light Vehicle Price List



Model Model

Price Price Rs. 595,000 Rs. 652,000 Rs. 1,171,000 Rs. 1,386,000 Rs. 1,366,000 Rs. 1,005,000 Rs. 1,452,000 Rs. 1,531,000 Rs. 674,000 Rs. 650,000 Rs. 2,199,000 Rs. 2,274,000 Rs. 2,124,000 Rs. 2,273,000


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

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



Master Highland M-260 Master Forland M-330 SUP Master Grand M-410 SUP


Honda Honda Honda Honda Honda Honda Honda Honda

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

Price Rs. 7,517,000 Rs. 7,017,000 Rs. 1,507,000 Rs. 1,648,000 Rs. 1,982,000 Rs. 2,212,000 Rs. 2,102,000 Rs. 2,332,000

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

Price Price Rs. 1,537,500 Rs. 1,672,500 Rs. 1,827,500 Rs. 1,602,500 Rs. 1,732,500 Rs. 1,607,500 Rs. 1,809,000 Rs. 1,914,000 Rs. 1,902,500 Rs. 1,997,500 Rs. 1,997,500 Rs. 2,087,500 Rs. 1,960,000

Toyota Avanza (Up Specfication)

Rs. 2,160,000

Hilux Pickup 4x sc Model


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

Rs. 1,763,500

Hilux Pickup 4x4 D/C Model Toyota HILUX 2494cc, Diesel Turbo Charger Common Rail Engine, 4x4 Double Cabin - Standard Model

Price Rs. 2,878,500

Rs. 1,188,000 TOYOTA VIGO Rs. 1,235,000 LAND ROVER Rs. 1,720,000 Model Price Price Model Price Model Master Grande Bus Chassis YL41B Rs. 1,625,000 Vigo Champ M/T Rs. 3,178,500 DEFENDER Fuso canter (Japan) Bus Chassis Rs. 2,950,000 (WHITE ,BLACK,STRONG BLUE & SILVER ) STATION WAGON 90 Rs. 3,560,000 Fuso canter (Japan) Rs. 3,025,000 Vigo Champ A/T Rs. 3,378,500 STATION WAGON 110 Rs. 4,260,000 Fuso Prime Mover (Japan) Rs. 9,450,000 (N/A)


Unit Price without Deck (WHITE ,BLACK,STRONG BLUE & SILVER )

Price updated Feb- 2013

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Exclusive Article by Syed Mansoor Rizvi

Monthly AutoMark Magazine

Thar is the home of one of the world’s largest coal, China clay and granite deposits Does Pakistan really have a scarcity of resources to generate energy, or is it merely a lack of will, sincerity and criminal ignorance that is bringing the country on the verge of collapse.

In the end, Dr.Shabbir appallinglysmiled, and stated that all good in this country that could easily make Pakistan stand up on its own feet is opposed against, battered, diminished, and discouraged. The question is. Why?

Energy crisis in Pakistan is a common topic of discussion. It seems that shortly we will enter into an era of candles, lanterns and donkey carts. There seems to be no political or national desire to divert immediate attention towards this v er y v it a l s ect or o f p r og r ess, development and economic prosperity of the country. Contrary to the ground reality, in vestigations reveal that Pakistan has in abundance energy generation resources available to be exp lored in bo th d omain s either renew able or non-renewable. In particular, coal reserves in the country are known for the last twenty years but un-exploited. There is still plenty of gas (CNG) underneath waitin g to be explored and exploited (six times more

than the presently known reserves but met the same fate of criminal neglect). Recently, I made a visit to Thar coal field located in the eastern part of Tharparkar desert, Sindh. Thar is the home of one of the world’s largest coal, china clay and granite deposits. My request to vis it the Underground Coal Gasification (UCG) Project Thar, Government of Sindh was graciously accepted and hasprovided the opportunity to speak to the field engineers and scientists including a final briefing by their managing director, Dr. Muhammad Shabbir at the project site. Out of curiosity, First question asked was about the feasibility of the project that has been chal lenged in various TV programs portraying an impression that it was an idea of some crazy people wasting the nation’s time. Dr.Shabbir, who is a recipient of Hilale-Imtiaz and Sitarai-i-Imtiaz, smiled and said that this technology was first introduced by Russians in 1930 and is in use in thirty countriesaround the world including developed countries like Canada, South Africa, Australia and United Kingdom.

T h is w hol e ph il osop h y of c oal gasification is based on an in-situ technique to recover the fuel or feedstock value of coal, which is not economically a vail able th rou gh conventi onal technologies. It is a simple technology i n t er ms of infra stru ctu re and complexities.For this reason, western countries wh ere laws pertaining environment are stringent have allowed this procedure being an environmentally acceptable technology. It does not disturb the environment as there is no gas emission and ash issues. Moreover, no mining accidents hav e occurred because it has no mines just some boreholes drilled down to put pipes through to reach to the coalseam (150175m). The total infrastructure that is seen on the ground is some boreholes, pipes (diameter ranges from 24 to 1.5 inches), surface piping for gasifier, diesel generators, fuel tanks and high pressure compressors.UCG operation is initiated by drilling two adjacent boreholes into the coal seam (coal layer thickness) and injecting pressurised hot air into the coal seam, igniting the coal seam and recovering the co mbustion gas ses (product gases; CO, CO2, H2, CH4, N2, | February-2013 | Page 37

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Exclusive Article by Syed Mansoor Rizvi - continued

Monthly AutoMark Magazine

Steam & Tar) through the adjacent borehole. The connectivity between the injection and producer wells is made by special linking technique such as reverse combustion of coal. The ratio of product gases is 5-10% carbon monoxide, 1020% hydrogen, 1-2% methane and lighter hydrocarbon (less than 1%). Thereafter, a purification process is applied to remove acid gases (CO2) and moisture (H2S) from the composition. Th e pr od u ct h as 80 0- 1 0 00 Kilocalories/cubic meter and is capable of producing 1KW from 3 cubic meters each.

The geological survey has revealed that around 9600 sq. Km area in the Thar district alone contains coal reservoir to the tune of 175 billion tons. Gasification from this amount of coal could produce 175 million barrels of oil, which is more than the oil deposits of Saudi Arabia and Iran. In one of the conferences held in China on ‘Energy” this project was called as “A game Changer for Pakistan.” After getting to know these facts, every patriotic Pakistani has a right to ask their government about the reasons preventing them from supporting the project in true lette r an d spirit. Apparentl y th ere are tw o strong understandable reasons, diesel and fuel (furnace) oil companies do not want this to happen. Pakistan's total diesel consumption is 6.9 million tons a year and domestic refineries produce 3.2 to 3.4 million tons while the remaining quantity is imported.Furnace oil demand stands at about nine million tons of which refineries produce about

2.5 million tons while the rest is imported. It is said that consumption of furnace oil is expected to surge to 16 million tons by 2015-16 because of new power projects. Dr. Shabbir explained that the project was started in 2010 under heavy criticism from various groups, who have made the government doubtful about the credibility of the program. Finally the government agreed to assign the task to generate 100 mega Watts in the first stage as a pilot project following production of 1000 and 10,000 Mwatts.As a test case, the project has al ready gasified 200 tons of co al suc c ess ful ly . T h e p r o je ct ’ s administration has a budget of 1800 million rupees to accomplish stage-1 of which 900 million rupees were received with the intervention of Prime Minister of Pakistan (Raja Pervaiz Ashraf) who showed personal interest in the project as it was approved by him while he was a member of the energy board during his tenure as a minister of water and power otherwise secretary planning did not release a penny last year. Dr. Shabbir is optimistic that the prime minister will sanction the remaining 900 million Rs. to complete the project at the earliest. The MD of Thar Coal Project, Dr. Shabbir, further said that in his opinion coal gasification is the only viabl e solution to br ing this coal into productive use because of the presence of water aquifers which will make it difficult to mine coal. This is why the projects involved in mining coal have not been able to accomplish much. Although coal gasification can produce power, gas and fertilizer but the team has a desire and dream to convert the

gas (yield) into diesel. The product gases have the capability to produce better quality diesel which wil l be much cheaper than the international rates Pakistan is paying to procure diesel. South Africa, from the same technology is producing diesel at 32 USD/barrel while this project can give diesel to the market (production cost including profit) at the rate of 50USD/barrel against the present rate of foreign diesel purchase that is 120-130 USD/barrel. He clarified to stop us being skeptical about his claim of converting gases into diesel that the Fischer-Tropsch process to convert coal gasification into diesel exists since World WarII, so again this is not something new. Dr. Shabbir in his brief presentation explained that Pakistan should seriously do something to reduce its dependence on oil to generate energy. He further explained that India is producing 0.9% electricity from oil while we depend 58.37% on furnace oil to produce electricity. As a result (due to imported oil), energy is getting expensive and out of purchasing power of most consumers. The Government of Pakistan does not have the money to pay for the subsidies of the energy sector, and the circular debt problem is creating supply and liquidity problems. Higher energy | February-2013 | Page 38

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Monthly AutoMark Magazine

Exclusive Article - continued falling number of big public transport, but sometimes it looks that it is proving a threat as for one person there is five to six rickshaws are in hunt to catch. Some of them also feel threatened over the rising p op ulation of Qingqi rickshaws who run with them side by side taking more load of the city at cheaper fare pe r person at Rs 10. To save the running cost, many CNG rickshaw owners have also installed LPG kit and cylinders knowing that LPG is more fuel efficient than CNG. However, they have dangerously put the LPG cylinder either on right or left side of the driving seat thus putting consumers’ life more threatened as CNG cylinder is already fitted below the passenger seat. Rickshaw owners said that despite the fact that LPG even gives more mileage than petrol though LPG costs Rs 150 per kg while petrol is available at over Rs 100 per litre. LPG kit and cylinder can be fitted at Rs 800-1,000 while cylinder has a capacity of seven to eight kg. “It is amazing that a vehicle can run on three fuels but none of them is providing any benefit in terms of fares being charged by the rickshaw owners either running the vehicle on any fuel,” an angry consumer said lamenting the illconceived policies of the government.

In one kg of LPG a rickshaw can run up to 40 km while one litre of petrol costs less than 15 kms.

or two month due to heavy load of eight persons as the bike engine is made to carry load of tw o per sons only.

After taking the up country by storm, Qingqi type rickshaws population sometimes seem to have crossed the CNG rickshaws in Karachi while some models have CNG options also. A Qingqi rickshaw driver, Mohammad Arshad standing at North Nazimabad said that if a person has a bike then he can spend Rs 40,000-50,000 more to convert a bike into a three wheeler rickshaw with a used hood. However, a new hood costs Rs at least Rs 70,000-80,000.

Though the rising population of such petrol version rickshaws is not a threat but he said that city’s increasing population suggests more room for such three wheeler vehicles which can take eight people seat to seat to the desired destination with no threat of any cylinder blast.

He said he also pays Rs 300 a day to the rickshaw owner and another Rs 100 as his owner has to pay Rs 200 a day as a fee for plying on a route. Qingqi rickshaw consumes Rs 500 per day of petrol but after paying out all expenses the driver said he earns at least Rs 500-600 per day or sometimes more on religious occasions. However, he said he also changes engine oil after eight to 10 days owing to hectic running, while clutch problem erupts after every one

He said population of public transport has definitely dwindled and especially after 9.00 p.m. many transport owners are avoiding to run their vehicles due to torching of many vehicles and law and ord er si tuat ion in many areas. However, many passengers of these Qingqi rickshaws are worried over the reckless driving as they said that the drivers feel that they are actually driving a bike by taking ugly turns. Sometimes these three wheelers are seen causing tariff jams in many popular arteries and nearby commercial and shopping malls. In many cases, the drivers’ age is hardly 20 years.

import bill also contributed to currency devaluation. Mr. Akhtar Ali, a writer, intellectual and author in his article titled “The Gas Crisis I” has suggested the following to r ed uce r eliance on furnace oil: All fertilizer plants (Urea) be converted to Coal (local).Similarly all cement plants, whereas a number of these have already successfully converted to Coal. All thermal Power be moved away from natural gas and be substituted by Coal (from Thar). Existing NGCC combined cycle plants be allowed to complete their economic life on gas. All Steam Turbine power plants be converted to coal as early as possible; all new thermal power to run on coal. In the end, Dr.Shabbir appallinglysmiled, and stated that all good in this country that could easily make Pakistan stand up on its own feet is opposed against, battered, diminished, and discouraged. The question is. Why? | February-2013 | Page 39

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Rastgar & Co signs UN Global Compact The ‘4thNational Global Compact Conference’ wasorganized by the Global Compact Pakistan Local Network (GCPLN) in collaboration with Employers’ Federation of Pakis tan (EFP),Islamabad Chamber of Commerce and Industry (ICCI), Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and Rastgar Group here at Serena Hotel, Islamabad on 31st January, 2013. The UN Global Compact is a strategic policy initiative for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labor, environment and anti-corruption. By doing so, business, as a primary driver of globalization, can help ensure that markets, commerce, technology and finance advance in ways that benefit economies and societies everywhere. As social, political and economic challenges (and opportunities) whether occurring at home or in other regions affect business more than ever before, many companies reco gn iz e the need to co llaborate an d partner with governments, civil society, labor and the United Nations. This ever-increasing understanding is reflected in the Global Compact's rapid growth. With over 8700 corporate participants and other stakeholders from over 130 countries, it is the largest voluntary corporate responsibility in itiative in the world.Endorsed by chief executives, the Global Compact is a practical framework for the development, implementation, and disclosure of sustainability policies and practices, offering participants a wide spectrum of work streams, management tools and resources all designed to help advance sustainable business models and markets.

Monthly AutoMark Magazine

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Pakistan Autoshow-2013

Monthly AutoMark Magazine

DYL participates in PAPS-2013 as Gold Sponsor The DYL Motorcycles Ltd., participated in the Pakistan AutoShow PAPS-2013 as a gold sponsor organized by Pakistan accessories Manufacturers (PAPAAM) from 1113 January 2013 at Expo Center Karachi. DYL setup its stall in Hall no.4 and displayed its complete range of motorcycles and lubricants. The stall was very well decorated and attracted large number of people and motorcycles dealers across the country. According to Mr. Jawed Yakoob, Director Marketing &

Sales of the company, ‘Our main purpose of participation was to highlights the product features, benefits and let people know about quality products, at the same time interact with potential customers. It’s a good place to meet with the existing customers and build the relationship. The whole exercise was geared up to improve its overall image.’ People from different walks of life visited DYL stall and showed vast interest towards its products specially newly launched 70cc motorcycle.

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Corporate Event in Islamabad - PR

Monthly AutoMark Magazine

CBI Export Coaching Program Participants Sign UN Global Compact

CB I E xp ort Coach i ng Pr og ra m Participants, International Polymer I ndu st ri es Corp or at ion (IP IC), HyperComp (Pvt.) Ltd. and Elektro Control Industries signed UN Global Compact Ten Principles ,voluntarily in presence of large gathering encouraging other companies to come under CBI export coaching program for export and promotion of sustainable business activities in Pakistan. Imtiaz Rastgar the Conference Convener and CBI External expert welcomed the participants of the Conference and expressed the hope that the outcome of this Conference will have far reaching impact on the ways in which our business can meet challenges posed by current economic, political and more prominently the security concerns. Adherence to the UNGC principles offers u nique opportunity to business, Government, academia and civil society to join hands and contribu te to sustainable eco nomic and social development to take the country and the business out of the most testing and challenging time of its history. This was jointly urged by Mr. Ahsan Raja, Federal Secretary Ministry of HRD and Senator. Nilofar Bakhtiar, in their inaugural addresses at the 4th National Global Compact Conference organ ized by Global Compact Network Pakistan in collaboration with Islamabad Chamber of Commerce and Industry, Employers Federation of Pakistan, FPCCI and Rastgar Group on 31st January 2013 at Serena Hotel, Islamabad. The Conference which was attended by around 100 CEOs of businesses in ar ound Islam abad and a lso by r e p r es en t a t i v e s o f a c a d e m i a ,

Government and civil society, proved a big succe ss when Se nator Nilofar Bakhtiar al ong with heads of 28 businesses, including three companies from the current CBI Export Coaching Program signed the UNGC charter. It symbolizes voluntary commitment of Pakistani businesses to embed the 10 UNGC Principles in their work culture and a tool for sustainable business. Ahsan Ullah Khan , President Pakistan GC Network Steering Committee, said that after the failure of many 'isms' such as ca pit alism, comm unism and socialism, the UNGC Principles provide business the last resort to a new dimension of 'Humanism' as a unique approach to address to the changing socio economic scenario of modern business. Kh a w a ja M u h am m ad Na u ma n, President of the Employer's Federation of Pakistan in his remarks expressed satisfaction over the fact that UNGC was a truly employers-led initiative in Pakistan, which was promoting UNGC Principles in Pakistani organizations with a very high sense of selfless commitment. Mr. Zafar Bakhtawri, the President of Islamabad Chamber of Commerce and Industry, In his remarks extended the full cooperation of the Chamber in persuading more and more members to join the Global Compact, because of the benefits it can bring to business for sustaining itself. M s. Ma r g r et te Re ad e Ro u nd s representing the ILO Directors office in Islamabad emphasized upon the need for business to uphold the principles relating to human rights and labor rights which constituted 60 % of the UNGC Principles and were strongly backed by I nter na ti ona l La bor sta nd ar d s

developed by the ILO through its constituent partners namely the Govt. Employers and workers. Fasihul Karim Siddiqi, Secretary Global Compact Netw ork Pakistan while explaining th e objectives of this Conference highlighted how embracing the 10 Principles of UNGC can help organizations in finding innovative solutions to issues confronting business. He stressed upon the need of doing ' bu siness as unusual' which is a paradigm shift from the traditional concept of doing 'business as usual'. This process can be facilitated if business enterp rises em brac e th e UN GC Principles to develop their social values which eventually help organizations to sustain themselves in their effort to use globalizations as an opportunity rather than a threat. Mr. Siddiqi informed the meeting about the Network initiative to launch a national campaign to increase UNGC membership with a target of 300 signatories by June 2013 and made a clarinet call to business community to join the UNGC membership which will particularly contribute to building positive bran d image of Pakis tani business at the Global Level. The business session of the Conference comprising of a panel discussion on the theme of 'How Government , Business and Civil Society deliberated upon how all could join hands to promote UNGC Principles as a sustainable tool of universal corporate citizenship'. The pan elis ts generated an interesting discussion on the subject from the div erse stake holders ’ perspective, followed by a lively question answer session with active participation from the audience.... | February-2013 | Page 43

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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. Metro MR-125 6. 7. 8. 9.

Retail Price Rs. 59,000/= Rs. 67,000/= Rs. 98,500/= Rs. 118,000/= Rs. 65,000/=

DYL Motorcycles Sr./ Product & No. Model Name 1. YD100 Mini 2. Janoon 100cc 3.

Retail Price Rs. 64,900/= Rs. 78,600/=

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

Brand &Model Name Honda Pridor Super Star SS-100 Super Power SP-100

Retail Price Rs. 84,000/= Rs. 57,000/= Rs. 60,000/=

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

Product & Model Name Sprinter ECO 110cc Sprinter STD 110cc Suzuki GS-150 Suzuki Raider 110cc | February-2013 | Page 44

Retail Price Rs. 77,400/= Rs. 80,400/= Rs. 101,500/= Rs. 85,400/=

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70cc Motorcycle

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

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

Retail Price Rs. 42,500/= Rs. 42,500/= Rs. 42,000/= Rs. 42,000/= Rs. 41,000/= Rs. 42,500/= Rs. 49,000/= Rs. 41,500/= Rs. 45,000/= Rs. 42,500/= Rs. 46,000/= Rs. 47,000/= Rs. 42,500/= Rs. 67,500/= Rs. 43,000/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 43,500/= Rs. 41,500/= Rs. 41,500/=

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

Product & Model Name Pak Hero PH-70 Raftar KM-70 Ravi Premium R1 Ravi Hamsafar-70 Road Prince RP-70 Royal Star RS-70 Royal RL-70 Racer AS-70 Safari SD-70 Sakai SK-70 Sitara GT-70 Sohrab JS-70 Sonica SM-70 Super Asia SA-70 Super Star SS-70 Super Power SP-70 Super Power Delux Toyo TG-70 Target TT-70 Unique UD-70 Union Star US-70 United US-70 Zxmco ZX-70 | January-2013 | Page 45

Retail Price Rs. 42,500/= Rs. 42,000/= Rs. 47,700/= Rs. 46,200/= Rs. 42,500/= Rs. 42,000/= Rs. 42,500/= Rs. 42,000/= Rs. 40,000/= Rs. 45,500/= Rs. 43,000/= Rs. 44,500/= Rs. 42,400/= Rs. 43,000/= Rs. 42,500/= Rs. 42,500/= Rs. 45,000/= Rs. 42,500/= Rs. 40,000/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/= Rs. 42,500/=

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

Monthly AutoMark Magazine

Auto Trans - “Mission”…...... Zero to Motion It’s all Gear’s Game! Transmission Talk The transmission is a major component of your vehicle’s drivetrain that is connected to the back end of the engine. Its main function is to transmit power from the engine to the drive wheels. It does this by selecting different gear ratios as well as maintaining and delivering a perfect blend of engine power and torque. There are primarily two basic types of transmission styles; manual (stick shift) and automatic. A manual transmission consists of a series of heliacal gears, synchronizers, roller bearings, counter shafts, gear selector forks and a main clutch assembly that engages and disengages t h e eng i n e fr o m t h e m an u a l transmission. The heliacal gears are used to select the desired gear and the selector fork moves them from one gear to the next when the gear shift knob is manually activated. The synchronizers are used to slow the gear to a stop before it is engaged to avoid grinding. The counter shafts hold the gears in place against the main input shaft. The main clutch assembly allows the engine to be disengaged from the transmission and re-engage when desired. An automatic transmission uses a series of planetary gear sets to obtain different gear selections, a hydraulic clutch engagement system controlled by the PCM (power control module). It also consists of a series of fluid control solenoids and a torque converter. This is a fluid coupler that allows the engine to run without stalling while the

car is stopped, and re-engage to make the car move again. An automobile engine runs at its best at a certain RPM (Revolutions Per Minute) range and it is the transmission's job to make sure that the power is delivered to the wheels while keeping the engine within that range. It does this through various gear combinations. In first gear, the engine turns much faster in relation to the drive wheels, while in high gear the engine is loafing even though your vehicle may be going in excess of 100 KMH. In addition to the various forward gears, a transmission also has a neutral position which disconnects the engine from the drive wheels, and reverse,

which causes the drive wheels to turn in the opposite direction allowing you to back up. Finally, there is the Park position. In this position, a latch mechanism (not unlike a deadbolt lock on a door) is inserted into a slot in the output shaft to lock the drive wheels and keep them from turning, thereby preventing the vehicle from rolling. modern automatic transmission is by far, the most complicated drivetrain component in today's automobile. Automatic tran smissions contain mechanical systems, hydraulic systems, electrical systems and computer controls, all working together in perfect harmony which goes virtually unnoticed until there is a problem. The automatic transmission is most commonly used in today ’s vehicle because of its self gear engagin g operations and stress free shifting, especially in heavy traffic. Standard or manual transmissions are rarely used in No rth Ame rica; they are more common in heavy duty vehicles or select sports cars. There are two basic types of automatic transmissions based on whether the vehicle is rear wheel drive or front wheel drive. On a front wheel drive car, the transmission is usually combined with the final drive to form what is called a transaxle. The engine on a front wheel drive car is usually mounted sideways in the car with the transaxle tucked under it on the side of the engine facing the rear of the car. Front axles are connected directly to the transaxle and | February-2013 | Page 46

continued on next page 34

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Automark Magazine February 2013  

Automark Magazine February 2013

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