Monthly Automark Magazine February 2019 by Mustafa Hanif

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February-2019 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 12, Issue 02

Monthly

AUTOMARK Magazine International Editor-in-Chief

Technical Editor

Muhammed Hanif Memon

Muhammad Shahzad

Anwar Iqbal - Chief Correspondent COO, Khalid Mushtaq Motors (Pvt) Ltd.,

Advisors Imtiaz Rastgar CEO, Rastgar Group & CBI External Expert, Ex-chairman EDB Islamabad Syed Mansoor Rizvi Principal Officer M/s. CNH Services (Pvt) Ltd. Karachi Farhan Hafiz Director Marketing & Sales M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi

Nadeem Ahmed Salmi Executive Director Operations M/s. Al-Haj Faw Motors (Pvt) Ltd. Karachi Ghulam Faroq Executive Officer & Functional HeadSupply Chain Pak Suzuki Motors Karachi

Advertising Manager

Graphic Designer

Tahir Siddiqui

Salman Hanif

Circulation Manager Hasaan Mustafa

Web Master Mustafa Hanif Murtaza Hanif

Contributors in THIS EDITION Anwar Iqbal Aqsa Mirza M. Owais Khan Talal Hussain Malik M. Hanif Memon Ali Hassan

Active Communications Mailling Address: D-68, Block-9, Clifton, Karachi Mobile: 0321-2203815

E-mail: automarkpk@gmail.com website: www.automark.pk Whatsapp & Wchat : +92 321 2203815 AutoMark Canada Office Managing Editor Mohammad Shahzad S.A.E. D.M.P. 41 Jordana Drive Markham (Toronto) Canada - L3S 3N8 Phone: 905-472-8282 Email: automarkcanada@gmail.com AutoMark REGD: MC-1330 Published every month by M. Hanif Memon Note: The views expressed by contributing writers and comments do not necessarily reflect the views and policies of the Monthly AutoMark magazine's management

Non filers’ buying limit up to 1,300cc vehicles and new entrants The government’s decision of lifting ban on non filers to buy up to 1,300cc vehicles bodes well for the assemblers of Suzuki and Toyota vehicles. In case the decision stays for longer period it may create serious problems for the new entrants as most of them are preparing to roll out light commercial vehicles, pickups and sports utility vehicles (SUVs) in the next one to two years. Under 2016-2021 Auto Policy, most of the new entrants are in the process of installing their plants but they have yet to announce their clear plans of assembling 660-1,300cc vehicles but they are more interested in tapping commercial market as per their ambition. The new Korean, Chinese, Japanese and European players will come up with their vehicles in the next one to two years. In case the government maintains the permission to non filers to purchase up to 1,300cc vehicles for next one to two years then the entrants will face a tough business environment to lure buyers. However, existing commercial and heavy vehicle assemblers are already in crisis as non filers cannot buy big commercial vehicles. Truck industry has been struggling for the last seven months owing to falling sales as against soaring sales of buses. Non filers generate double revenue as advance income tax against the active tax filers. If the banks, on withdrawal by a non tax filer collects double the amount as tax then the same treatment should be allowed for booking and purchase of new cars too. Affected buyers who are not entitled to purchase a new car include retired or older people who are not active tax filers and others who have returned back to Pakistan after many years. There are others also who are not on the list of active tax filers list having received funds from sale of assets that have been inherited. Why should they be deprived to buy a brand new car? The Government should immediately reverse its decision on this. Auto sector analysts at various brokerage houses said previously, the government had introduced the Finance Supplementary (Amendment) Bill in 2018, barring non-tax filers to purchase new vehicles. This turned out to have a negative impact on auto sector as nontax filers constituted 50 per cent of total customer base

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Contents

February-2018

News / Event

Article / Review 20 23 28 37 45 50 52

Used car imports may become history By Owais Khan The Story of “Bedford Rocket” Exclusive article by Anwar Iqbal

Mini Budget silent on two wheeler industry Exclusive Article by Ali Hassan

22 40 41

6 Months of a Steady Rise Truck market in Pakistan

Six Sigma Awareness Workshop in Karachi By IHT Farooqui

Automotive Sector Relief Provided in Economic Reforms Package 2019

A Wake Up Call for Atlas Honda Exclusive by Talal Hussain Malik

MEDIA PARTNER & EXHIBITOR FROM PAKISTAN

Inside

His Excellency Mr. Yao Jing’s Visit to JWForland Assembly Plant

Master Motor inaugurated their first state of the art 5S facility and showroom in SITE, Karachi

Meezan Bank and KIA Lucky Motors Pakistan Ltd. sign a MoU for Promoting KIA Lucky Motors’ Grand Carnival! - PR

News Updates 26 27 30 38 42 44 53

Vehicles Production Data for year 2018

Auto development policy 2016-2021 Incentives for local auto parts manufacturers urged Motorcycles Price LIst Local Automoitve news update Vehicles / Car Price List

Motorcycle Market Price list International Automotive News Corporate News - Glimpses Tractor industry sees sharp slump

Buy JwForland Truck online

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Exclusive Article by Owais Khan

Used car imports may become history Market sources say that existing assemblers and their vendors had always been against the used car imports since it was allowed and they had influenced over the new government. Fear has gripped among the used car dealers over complete collapse of their business following major changes in Import Policy Order on January 15, 2019. It is certainly a welcome step that the government has finally realized that import of used cars should be stopped to curb money laundering, outflow of foreign exchange through Hundi/Hawala and misuse of the mechanism of transfer of residence/personal baggage and gift scheme for the purpose of commercial imports. Other motive like protecting the cartel of local car assemblers cannot be ruled out here. If used car import was really a serious issue in draining out foreign exchange and hurting local car sales then why the government had continued facilitating import under various schemes which the importers misused so freely u nd er t he sup po rt of v ar io u s governments. However, the used car lobby in its various suggestions and proposals had

governments despite the fact that various schemes were introduced for the benefit of overseas Pakistanis who need to gift a car or bring a car home. This misuse had been going on unchecked in connivance with the various governments. On some occasions, Customs General Orders (CGOs) were also issued to control imports but they were either

Chairman All Pakistan Motor Dealers Association (APMDA), H.M. Shahzad said transfer of residence, personal baggage or gift scheme are the only mechanism through which import of new/used vehicles are permissible in Pakistan. In absence of any other means for import of vehicles, the import of vehicles would shut down completely; consequently, revenues will also reduce to zero. never mentioned how they had been managing in paying the amount of imported used vehicles and their only slogan was to continue imports of used vehicles for the car lovers. These dealers also had no answer to justify in bringing these vehicles by using passports and documents of overseas’ Pakistanis. The three year old cars are being imported from auction in Japan at low rates where investors buy them in bulk and send them to Pakistan under baggage, resident transfer and gift. The practice of commercially selling used vehicles by the dealers thrived over the years under the support of various

relaxed or withdrawn perhaps over a notion that used car imports had been proving a revenue spinner besides giving choices to the consumers to their money value. When consumers know that dealers have been using documents of Pakistani nationals living abroad and only few people abroad manage to send vehicles under genuine cases then how come the government has remained ignorant of such illegal practices thus giving a free hand to these importers’ lobby to carry on their unofficial trade on paying fixed duties. With the revival of old strict rules on

January 15, 2019, the rest of the support came from the mini budget thus increasing duties on import of above 1,800cc vehicles, which dealers term it as a final blow in the business of used vehicles. As per new order, all vehicle in new/used condition to be imported under transfer of residence, personal baggage or under the gift scheme, the duty and taxes shall be paid out of the foreign exchange arranged by Pakistan Nationals themselves or local recipient supported by bank encashment certificate showing conversion of foreign remittance to local currency in the following manner:

a) The remittance for payment of duties and taxes shall originate from the account of Pakistani national sending the vehicle from abroad and

b) The remittance shall either be received in the account of Pakistani national sending the vehicle from abroad or, in case his account is nonexistent or inoperative, in the account of his Family. “These rules will end our business,” Chairman All Pakistan Motor Dealers Association (APMDA), H.M. Shahzad said angrily adding that “we are trying to get appointment from Prime Minister Imran Khan and Finance Minister Asad Umar to clear our point of view before

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Monthly AutoMark International the decision will ruin the life of thousands of people associated with this business. He said arrival of 660cc used cars in bulk has not hit sales of locally assembled 800cc-1,000cc vehicles which is evident from their sales figures. Which assemblers – current or new entrants – have played the role in convincing the PTI government to take a firm stand on used car imports; certainly it is not yet known. Market sources say that existing assemblers and their vendors had always been against the used car imports since it was allowed and they had influenced over the new government. It is premature to say how these strict rules to import used vehicles will remain effective in future but so far this issue may not hit hard new players whose vehicles would hit the markets in next one to two year. The government has revived the condition of payment of duties and taxes in foreign exchange now after the previous government took the move and abandoned it in February 2018, creating problems at the port owing to pile up of unclear vehicles. As a result, importers had paid heavy demurage to clear their vehicles. The conditi on was imposed in November 2017 as a measure under Auto Policy 2016-2021 requiring users of baggage scheme to pay their duty and tax in foreign exchange. The idea was to restrict misuse of the facility by traders, since the practice created a drain on local foreign exchange reserves by sending the cost of vehicle from Pakistan in foreign exchange through other hundi/hawala channels. According to H.M. Shahzad, so far not a single case has been detected against the traders/importers of used cars regarding misuse of facility or in case of sending the cost of vehicles from Pakistan in foreign exchange through hundi and hawala channels. Besides, no case has been established against any traders regarding under invoicing or any duty evasion as “we pay around one billion dollars in shape of various duties and taxes every year on import, ensuring vehicles’ import purely via legal channel.” One cannot say whether the Federal Board of Revenue (FBR) is happy over this government’s move amid revenue crunch.

Market sources said that Commerce Secretary Younus Dagha has been active in giving a tough time to importers of used cars. Nobody knows whether the FBR had put pressure in February 2018 for release of stuck up vehicles at the port or the used car dealers had used a strong political lobby for getting the decision reversed. Now again, Mr Younus Dagha is reported to have taken a strong stand in reviving the old restriction, making the powerful cartel of local car assemblers happy once again. If this used car business has been striving on illegal practices then why the previous governments have not fully stopped the misuse of baggage, transfer of resident and gift scheme. It means that the trade was going swiftly under government’s patronage as the government cannot afford to lose a big chunk of revenue earning from used car imports. Besides, provincial government had also benefited in shape of getting extra revenue from registration of used vehicles in addition to locally assembled vehicles. An authorized dealer of a leading car company said traders involved in facilitating import of used cars should first get themselves registered in Pakistan like the local manufacturers. Proper remittance as sent to Japan, UK and other countries should be remitted by the expatriates to Pakistan to curb misuse of the policy. To facilitate the

of the scheme should be incorporated in the policy as chances of its misuse can be verified. Proper customs duty should be calculated and collected in accordance with the tariff determined as appropriate for each car. Since almost all vehicles imported under the baggage scheme are sold and not retained, a small levy should be added as a profit on the invoice/certificate issued by the registered trader and be allowed to be registered with the tax authorities. If this happens, it will be a win, win situation for all. The government will the revenue and the trade is legalized, he added. H.M Shahzad says that almost one million vehicles are sold in the market annually. Local assemblers supply about 250,000 vehicles and about 70,000 are imported vehicles. The rest of the public is forced transact 5 to 20 year old cars. Besides, 95 per cent of the used imported case are of 660-1,000cc. These cars are highly economical and give good mileage on petrol. He said transfer of residence, personal baggage or gift scheme are the only mechanism through which import of new/used vehicles are permissible in Pakistan. In absence of any other means for import of vehicles, the import of vehicles would shut down completely; consequently, revenues will also reduce to zero. To discourage import of vehicles and shift focus towards locally assembled

These dealers also had no answer to justify in bringing these vehicles by using passports and documents of overseas’ Pakistanis. The three year old cars are being imported from auction in Japan at low rates where investors buy them in bulk and send them to Pakistan under baggage, resident transfer and gift expatriate, the amount of customs duty and other expenses should also be permitted to be remitted to the registered trader as many expatriate may not have an account in a bank in Pakistan. He said once the used car has been cleared from the customs, the registered trader should issue an invoice/certificate to the amount of its actual cost to determine the cost for calculating taxes by the registration authorities. This will generate revenue in foreign exchange and totally regulate the trade as transparent. Checks and balance to curtail the misuse

vehicles,Federal Excise Duty (FED) has been increased from 20 to 25 per cent for luxury cars beyond 1800cc to 3,000cc, while, FED has been increased from 20 to 30 per cent for cars having engine capacity of 3,000cc and above. This act will bode well for local assemblers of Toyota and Honda vehicles in terms of price competition since imported vehicles will now be more expensive. Besides, 10 per cent FED has been imposed on cars locally assembled of engine capacity exceeding 1,800cc.

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Monthly AutoMark International

1973 Bedford trucks. Then in 1972, Ghandhara Industries, like other private companies, was nationalized and renamed National Motors Ltd. At this stage, even though the truck was assembled locally, only

1973 2 0% o f i t s co mp o n e nt s w er e manufactured locally. This figure was increased to around 70% by the mideighties. Unfortunately due to the discontinuation of this model production by the principal

company in U.K in the year 1986, the local assembly of Bedford truck in Pakistan was also stopped subsequently. However still a huge numbers of Bedford trucks are visible upon the roads and highways of Pakistan.

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Monthly AutoMark International

Automotive News - Update

Auto development policy 2016-2021 Incentives for local auto parts manufacturers urged The true growth and benefits of technology transfer, job creation, and value addition can only be realized by providing incentives to local auto parts manufacturers which have not been considered in the new Auto Development Policy. The representatives of the vendor industry stated this while talking to a select group of journalists during visit of the vending industrial units. At a time when foreign exchange reserves of the country seem to be standing on a critical point, localization of different auto parts has been saving the outflow of millions of dollar from the national economy, whereas the decreasing trends in sales for last few months are still a point of concern, they said. Chief Executive Officer Ahmed Glass Industries Ejaz Alam said that the parts t hey p roduce comply wit h t he international standards. The Japanese headquarters of the car manufacturing companies only approved the parts only when the quality is thoroughly tested and the parts conform to standards of OEMs on global level, he added. He said the vending industry is looking toward the government for its policies conducive to encourage and increase localization level in locally produced vehicles. As new entrants are coming, OEMs will offer more choices to

customers and in this pretext ADP 1621 goals of employment generation and technology transfer are to be achieved through incentives provisions of manufacturing processes at vendors, he added. The vendors contributing to over 60 p ercen t locali sati on in lo cal ly manufactured cars were looking for encouragement in ADP 2016-2021 as the localization has proved to be beneficial for the auto industry consumers and the government as well since the impact of devaluation and global crisis is minimized through local engineering base. For last 30 or so years the local engineering base has been helped by the car manufacturers both in terms of business and transfer of technology which helped local industry to grow and prove its mettle. Currently, 400 vendors from all over Pakistan are providing parts worth more than Rs 300 million every day that reflects the level of localization achieved in last 29 years of its journey. They said that with achieving a significant level of localization every year the local car manufacturers jointly with vendors play their role in narrowing the trade deficit gap by procuring/supplying parts from local vendors. The vendors said the installed capacity of OEMs for cars and light commercial

vehicles (LCVs) is around 300,000 units which help their direct employment of 30,000 people and indirect employment of 2,500,000 people in the auto parts manufacturing industry. Moreover, new auto players have made their way into the market motivated by the country’s Auto Development Policy 2016-21, opening the doors to a multitude of joint ventures. Representatives of Al-Badar Engineering Company (Pvt.) Ltd. said that the progressive growth in the auto sector has led in the creation of job opportunities and providing livelihood to millions of households. “This has further ensured the fulfilment o f o ne o f the go ve rn ment’s macroeconomic indicators by reducing unemployment. The increased number of employment opportunities has also provided the circular flow of money in the economy,” they said. A.R. Gauhar of Infinity Engineering (Pvt.) Ltd. said the infinity school of engineering developed by OEM is providing training to youth to enhance skills as skill-based training is essential to maintain the high tech CNC machines in automotive industry. “We have 90 percent employment ratio of our trained youth,” he added.

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Exclusive Article by Ali Hassan

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Mini Budget silent on two wheeler industry Bike sector not on priority list of government

The government has again ignored one of the most productive segments of the auto sector – the two wheelers – in the mini budget. The last four governments had never paid any serious attention towards the two wheelers sector. However, industry leaders remember that General Pervaiz Musharraf was the only person who provided space to Chinese assemblers in 2002 in breaking the monopoly of three Japanese assemblers since 1981. Chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Sheikh recalls that before 1981, the rate of customs duty on import of completely built ups (CBUs), completely knocked down and semi knocked down kits (CKDs) was same.

The local industry is now striving hard to introduce more fuel efficient 125-150cc bikes than the previous models and so far they have been quite successful in luring consumers towards this initiative. Amid higher localization and falling rupee value by 26 per cent in 2018, the assemblers had surged prices multiple times last year.

In 1981, the then federal government introduced deletion program for motorcycle industry. At that time, the monopoly of Japanese assemblers started getting its foothold and their monopoly became further strengthened as time moved on despite entry of Chinese bikes. By 2002, he said a total of 120 assemblers had emerged in Pakistan but due to cumbersome and unfriendly policies – the number has now shrunk to 30-40 units. With renewed vigor of PTI government, the bike industry, especially Chinese bike assemblers, has pinned hopes on Prime Minister Imran Khan to bring some changes in the bike policy. Sabir said unfortunately, in the last six months, nothing has been announced for the two wheeler industry by the new

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Monthly AutoMark International government. The bike industry during 1HFY19 had remained under pressure owing to remittances issues, rupee devaluation, and fake recovery notices issued by the Federal Board of Revenue (FBR), ongoing encroachment drive in big cities etc. If these above issues are not resolved the two wheeler segment may face serious problems in the next six months, he feared. In Karachi alone, 332,181 bikes were registered in 2018 while in five cities of Sindh around 225,582 units were registered. In Pakistan a total 2.5 million bikes were registered in 2018. Only in Karachi city, in January 2018, 38,272 while in December 2018, the number fell to 14,969 units. According to official statistics, 557,763 bikes registered in Sindh in 2018. To address this alarming increase in bike registration, the Sindh government has yet to take any steps in improving public transport system. As a result, demand pressure is rising on the motorcycle owing to increasing trend among young generation to own a two wheeler as it still costs less and allows consumers to move easily in rush hours on the roads. A number of dealers have been offering two wheelers on easy installments and this mode of sale is gaining popularity as many people still cannot afford to buy cheap Chinese bikes which cost much lower than Honda CDi70. Sabir Sheikh said the total count of motorcycles in Pakistan has crossed 25 million figure and every year, around 2.5 million motorcycles are being added to this number. In Punjab alone, 1.8 million units are registered every year and rest of the number is registered in other provinces of Pakistan. To address this issue, it is possible that the government may put restrictions on

using the old motorcycles. Motorcycle dealers are of the view that by pr ohibit ing t he use of old motorcycles, not only the increasing number of new motorcycles can be controlled but the traffic problem would also improve. According to some stats, currently, 700,000 motorbikes are registered in some other provinces but they can be seen on the roads of Karachi. The exact figure is unknown as there are no strict rules and regulations of using motorcycles in Karachi registered in other provinces. The identity of these vehicles is uncertain at the local level. Such vehicles are being used in different crimes like target killing and street crimes etc. The soaring motorcycle numbers can be controlled only if the government prohibits the use of motorcycles in Karachi being registered in other cities and provinces as well, Sabir suggested. However, consumers believe that two wheeler is the only cheap option amid rising prices of both motorcycle and petrol. The local industry is now striving hard to introduce more fuel efficient 125150cc bikes than the previous models and so far they have been quite successful in luring consumers towards this initiative. Amid higher localization and falling rupee value by 26 per cent in 2018, the assemblers had surged prices multiple times last year. Now the industry needs uniform policies for a smooth run. However, the mini budget has given some support to the SME sector which may prove fruitful depending on timely implementation, Sabir hoped. Bike industry needs effective policies as it is already functioning under various SROs, he said.

The last four governments had never paid any serious attention towards the two wheelers sector. However, industry leaders remember that General Pervaiz Musharraf was the only person who provided space to Chinese assemblers in 2002 in breaking the monopoly of three Japanese assemblers since 1981. www.automark.pk | February-2019 | Page 29

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Monthly AutoMark International

Automotive News - Update

Dewan Automotive warned of delisting citing failure to meet regulations The notification said that till December 31st, 2018 DWAE had been unable to make any reasonable progress towards correcting the default and failed to comply with the regulations The Pakistan Stock Exchange (PSX) on Monday warned Dewan Automotive Engineering Limited (DWAE) of being delisted from the bourse citing failure to meet the regulations. In a notification sent to the bourse on Monday, PSX said it “intended and proposed delisting of DWAE on account of failure to rectify the default(s) of Clauses 5.11.1 (e)(g) &(l) of PSX Regulations d espite a lapse of considerable time and our notice no. PSYJN-6465 dated November 30, 2018,

regarding extension in the deadline for rectification of defaults.” The notification said that till December 31st, 2018 DWAE had been unable to make any reasonable progress towards correcting the default and failed to comply with the regulations. Consequently, the bourse in the interest of protection of investors and in line with the requirements of the exchange’s regulations will now commence the process to delist DWAE from the stock exchange, read the notification. DWAE was unable to fulfil this clause of the PSX regulation: “Upon completion of the buy-back process of shares by majority shareholders/ sponsors of the Company or failure to comply with the

Indus Motor wins Global Compact Network award The Global Compact Network Pakistan (GCNP) has conferred the second prize of Business Sustainability Award 2018 to Indus Motor Company (IMC) in the category of Multinational Companies. This prestigious award is granted in recognition of integrating the ten principles of United Nations Global Compact (UNGC) and for embracing the Sustainable Development Goals (SDGs). Winning this prestigious award fourth time in a row signifies IMC’s continuous commitment towards its objective of e nhan cin g quali t y of l if e an d contributing towards a healthier future in complete alignment with UN’s SDGs. Hence, the company places the highest

priority on good governance, steering the management and employees to follow strict procedural controls, regular audits and disclosures to ensure transparency, work through clear management lines and respect labor l aw s t o p r ov i d e an e qui t ab le environment for all staff. The company promotes environmental conservation by adhering to best operational practices and maintaining strict health and safety standards. Sharing his views on the occasion, Ali AsgharJamali, Chief Executive Officer, IMC, said, “We are honored to be recognized by GCNP for our dedication to maintain best practices across our business operations. .”

Indus Motor Company increases the car prices following rupee depreciation Indus Motor Company (IMC), the manufacturers of Toyota cars, has once again raised the prices of its vehicles by up to Rs175,000. Apparently, the company wants to shift the increased p roduction cost resulting from depreciating rupee entirely on to the consumers. Indus Motor Company which increased

the car prices four times in 2018 has once again hiked the prices following the depreciation of rupee against the US dollar which made import of auto parts expensive. The revised prices are made in the range of Rs75,000 to Rs175,000 at the beginning of the new year.

compulsory buy-back directions or failure to rectify the non-compliance(s) within the timeframe specified under sub-clause 5.11.2 (e) or as otherwise specifically provided under sub-clauses to Regulation 511.1 above the Exchange shall delist such companies within 90 days through a notice in writing under intimation to the Commission.” Moreover, the case will be forwarded to the Securities & Exchange Commission of Pakistan (SECP) for taking further action as deemed relevant under the Securities Act 2015 and Companies Act 2017, which may include winding up of the company, read the notification.

Punjab Government to abolish luxury tax on high-end vehicles The Government of Punjab has announced to abolish luxury tax on highend vehicles and trucks in order to increase registrations of such vehicles in the province. According to the details, the government of Punjab has imposed a luxury tax on high-end vehicles and to prevent paying this, people get these vehicles registered in other provinces. While speaking to the media, Provincial Excise and Taxation Minister Hafiz Mumtaz said that the authority will cut down the tax after an equal interval of time and will abolish it completely by May 2019. Abolishing the luxury tax will help us register more high-end vehicles in the province and also help us generate more revenue, he said. As of now, the Punjab government is charging high-end vehicles PKR 3 to 5 lac in the form of luxury tax.

PAKISTAN AUTO SHOW 2019 12 - 14 April-2018 Expo Center Karachi

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Automotive News - Update

Pak Suzuki Motor raises prices by up to Rs322,000 Pak Suzuki Motor Company, a Japanese carmaker doing business in Pakistan for decades, has increased prices by up to Rs322,000 for different vehicle variants, except for its popular Mehran model, in a bid to pass the impact of rupee d ep reciation on t o consumers. After increasing prices four times in 2018, Pak Suzuki Motor raised prices again – this time in the range of Rs30,000 to Rs322,000 – on the first day of the new year, according to a price list of the company sent to dealers on Tuesday. “New ex-factory prices are going to come into effect from Tuesday (January 1). The company increased prices of its vehicles due to devaluation of the rupee against the US dollar,” said the

company’s circular sent to the dealers. Pak Suzuki Motor increased the price of WagonR VXR by Rs40,000 to Rs1.224 million, WagonR VXL by Rs40,000 to Rs1.314 million, Cultus VXR by Rs30,000 to Rs1.410 million, Cultus VXL by Rs30,000 to Rs1.531 million and Cultus AGS by Rs30,000 to Rs1.638 million. The company made the highest increase in the 1,000cc vehicles. Swift DXL-NAV would be available at Rs1.555 million after an increase of Rs40,000, Swift AT-NAV would be available at Rs1.691 million after an increase of Rs40,000 while the new price of APV would be Rs3.04 million after an increase of Rs322,000, according to the notice. Pak Suzuki Motor enhanced the price

of its sub-compact Ciaz MT to Rs2.06 million after an increase of Rs100,000 and Ciaz AT to Rs2.20 million after a rise of Rs100,000. The company’s compact Vitara GLX AT would be available at Rs3.990 million after an increase of Rs100,000. However, the company did not increase the price of Vitara JLDX MT, which would be sold for Rs2.393 million. The price of Mehran, popular amongst the middle-income class, remained unchanged but the company had already announced that it would discontinue the model from March 2019 and planned to replace it with Suzuki Alto 660cc.

United Motors increases the price of its newly launched United Bravo by Rs45,000 United Motors (PVT) Limited has jacked up the price of United Bravo by Rs45,000 due to depreciation of the rupee against the US dollar. The new price will be Rs895,00 and will implement from 22nd, January, 2019 and onwards. For those customers who have already paid full payment for orders will be served at old price i.e Rs850,000 price and the company will take care of the

added cost. However, all the new orders and booking will be dispatched at new price. United Motors launched the 800cc United Bravo car in September last year with speculations that it will break the monopoly of other companies with its economical price. United Auto Industries (Pvt) Limited is the 1st local brand and 2nd Largest selling brand of United Motorcycles in

Sindh Government to launch Biometric Verification for Vehicle Transfer The amendment is being proposed in Motor Vehicles rules for the introduction of a biometric system for the verification of a seller and buyer of the vehicle, preventing vehicles that are being used with an open letter. The above amendment was discussed in the meeting headed by Sindh’s Provincial Minister for Excise and Taxation & Narcotics Control and Parliamentary Affairs, Mukesh Kumar Chawla. DG Excise and Taxation, Shabbir Ahmed Sheikh, gave a briefing to the meeting. He told that the Excise department has received complaints that certain vehicles were being plied on open letters. Therefore, it has decided to take this action. He said the Excise Department had decided to take action against them and

in this regard a proposal had been sent to the government to launch a biometric system of verification of the buyer and seller at the time of vehicle transfer and its registration. “The department has completed all the codal formalities regarding the launch of Smart Cards and it has more security features as compared to smart card introduced by Punjab Government,” said the official. During the meeting, the provincial minister expressed satisfaction knowing that the use of the vehicles with open letters has reduced visibly. He further asked the officers to take more steps to discourage the practice entirely. The minister also appreciated the arrangements being made for the upcoming Road Checking Campaign.

Pakistan. The Company received Green Field Investment status under new auto policy 2016-2021 from Ministry of Industry and Production in June-2017. The United Motors has launched its first 800cc United Bravo passenger car in Pakistan on 9th September last year and launching ceremony held in Lahore. While 1st United Car ‘Bravo’ Roll Out Ceremony held at United Car Assembly plant on Nov 26, 2018.

Suzuki jacks up motorcycle prices by up to Rs8,000 According to a notification sent to dealers on January 1, the 110cc GD110 S variant will now cost Rs155,000, up by Rs5,000, while the top of the line GR150 variant will sell for Rs243,000 after an increase of Rs8,000. The decision comes a month after the rupee went through its latest round of depreciation, rising by more Rs6 on November 30 last year. When the rupee devalues, the cost of production for local auto makers also increases because they import some of their parts and pay for these raw materials in dollars. According to the new price list, effective from January 1, all variants of Suzuki motorcycles will be more expensive.

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Product Introduction BRAKE-CHEK

Monthly AutoMark International

World's smallest handheld brake fluid tester from Reichert - Digital Brake-Chek® Celsius Leave the science to Reichert With the simple push of a button, the Reichert Digital Brake-Chek®, the world's smallest handheld tester, will quickly and accurately provide you and your customer with critical brake fluid boiling point data. When water content in brake fluid increases...

The boiling point decreases Fluid with a reduced boiling point can create a vapor by boiling in the wheel cylinder. Normally this could happen under adverse conditions such as braking down a long steep grade or with stuck brake pads. Und er these conditions rotor temperatures can climb high enough to boil brake fluid with high water content. Stepping on the brake pedal will now only compress the vapor instead of applying force to the pad. The result is sudden brake failure. DOT3 Fluid with no moisture content boils at greater than 401°F (205°C) as specified by DOT Standard 116. The fluid in a 3 to 4 year old car with 3 to 4% moisture content could boil at less than 300°F (149°C). The dry boiling points for the brake fluid classes are:

Fluid Type. Dry Boil Point DOT3 DOT4 401 °F/205°C 446°F/230°C

2. The viscosity increases Brake Fluid must flow freely to be effective. In extremely cold weather brake fluid with high water content is very viscous, causing slow pedal response and requiring more effort.

Corrosion problems can occur Water in brake fluid can contribute to the corrosion of parts such as the steel p i st o n s an d A B S mo d ul at o r s. Key Features • Quick, automatic digital measurements • Economical to operate, 10,000+ measurements on two AAA batteries • World's smallest handheld brake fluid tester • Test brake fluid without boiling • Only small sample of brake fluid needed for results • No messy cleanup • Measure in degrees Celsius both DOT3 and DOT4

Technical Specifications: Catalog Number 13940017 Scales DOT3 DOT 3 HT (High T emperat ure) DOT4 DOT4 Plus Scale Ranges DOT3 - 121°C - 260°C DOT 3 HT - 121°C - 299°C DOT4 - 125°C - 275°C DOT4 Plus - 150°C - 275°C Calibration Distilled Water Automatic Temperature Compensation (ATC) 68°F/20°C Prism Glass Illumination 589nm LED Ratings and Compliance I P 6 5 Dustproof/Water Resistant, CE, RoHS, and WEEE Compliant Dimensions 54 x 27 x 100 mm / 2.1 x 1.1 x 3.9 inches Weight 100 grams / 3.5 ounces Power 2 AAA Batteries, included Battery Life 10, 0 00 r ead i ng s, Auto-Off Sleep Mode Warranty: One year against manufacturing defects. Evidence of tampering voids warranty.

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Truck Market and JwForland

6 Months of a Steady Rise Truck market in Pakistan The past 6 months have seen us taking huge leaps forward in the truck market of Pakistan. Here are some snippets of what we’ve done from May 2018, till November 2018.

And the gearbox is a 5 speed manual. The fuel tank can take up to 100 liters of fuel. And the front and rear of the truck both feature hydraulic drum brakes.

Local Assembly Line

Forland trucks can easily be serviced at our dealerships. And we’re happy to say that we’re covering the length of Pakistan with our dealership network. Cities from Karachi to Mansehra are dotted with dealerships, with a grand total of 11 serving our customers in earnest.

We started our own local assembly line. If you happen to go to Lahore, we’ve made an assembly plant for Forland trucks there. The entire process of assembly is now done here in Pakistan, part of a plan to make sure that we provide customers with affordable prices. Our assembly line here in Lahore is nothing short of our international assembly lines. The technology used here matches international standards, and is similar to the technology in place globally for the smooth assembly of our trucks.

JW Forland Trucks in Pakistan Right here in Pakistan, you’ll find the following trucks assembled by us.

1. C-19 Our most popular pickup truck. With a 1-tonne capacity, it’s small and affordable, featuring technology like a reverse parking sensor and a power steering. It has an 1809 cc naturally aspirated engine and a 5 speed manual gearbox. The truck’s fuel tank is a modest 40 liters and for your safety, the front brakes are hydraulic disc brakes while the rear brakes are hydraulic drum brakes.

Service stations 2. C-311 A mid ranged 3-tonne truck. Featuring a powerful 2771 cc engine and a spacious 11 feet deck. Its huge engine is a vertical inline, water cooled, four stroke engine that’s turbo charged and has an intercooler. The gearbox is a 5 speed manual and the fuel tank can take up to 80 liters of fuel. Unlike the smaller C-19, the front brakes and back brakes are both hydraulic drum brakes.

3. C-312 A spin off of the 311, with a larger capacity of 3.5 tonnes and a larger deck of 12 feet. Its huge 2771 cc engine is a vertical inline, water cooled, four stroke engine that’s turbo charged with intercooler. And the gearbox is a 5 speed manual. The fuel tank can take up to100 liters of fuel. And like its younger brother the C311, the front brakes and back brakes are both hydraulic drum brakes.

4. D-310 A 3-tonne dump truck with specs similar to the C-311 but with a hydraulic jack at work. The D-310 is Pakistan’s first locally manufactured, purpose-built truck. The 2771 cc engine is a vertical inline, water coo led, four stroke and turbocharged engine with an intercooler.

Division of dealerships and spares Our dealerships are divided into three regions. Northern Pakistan: Federal Region and KPK, and Southern Pakistan: Sindh and Balochistan. To find spare parts, just need to pop by at any one of our dealerships and you’ll get what you need.

Client Handling We’re proud to say that we treat both our corporate and private clients equally. It doesn’t matter to us whether you’re buying one truck or fifty. Our service to you will be the same, short, sweet, and personal. A few months back, our squad of trucks went on a Pakistan roadshow, stopping at major cities and offering people free test drives as we passed by. We personally connected with the people of Pakistan and asked regarding their needs so we would be able to adjust our trucks according to them. According to you, the people of Pakistan.

www.automark.pk | February-2019 | Page 37

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Car / Light Vehicle Price List SUZUKI Model Model WAGON-R VXR 1000cc Euro II WAGON-R VXL 1000cc Euro II MEHRAN VX 800cc Euro II MEHRAN VXR 800cc SUZUKI SWIFT 1.3L DLX SUZUKI SWIFT 1.3L Automatic NEW CULTUS VXR MT 1000cc NEW CULTUS VXL MT 1000cc NEW CULTUS VXL AGS 1000cc BOLAN VX 80cc EURO II BOLAN CARGO RAVI PICK-UP STD 800cc E2

SUZUKI MEGA CARRY 1.5 MT SUZUKI CIAZ (A/T) 1400cc SUZUKI CIAZ (M/T) 1400cc JIMMY 1328cc JLSX MT APV 1.5L GLX MT (Petrol) VITARA GLX AT 1.6 VVT

Ex Factory Price Rs. 1224,000 Rs. 1314,000 Rs. 789,000 Rs. 854,000 Rs. 1,555,000 Rs. 1,691,000 Rs. 1,410,000 Rs. 1,531,000 Rs. 1,638,000 Rs. 854,000 Rs. 820,000 Rs. 776,000 Rs. 1,299,000 Rs. 2,200,000 Rs. 2,060,000 Rs. 2,393,000 Rs. 3,040,000 Rs. 3,990,000

Filer

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

TOYOTA COROLLA

HONDA Model Honda Honda Honda Honda Honda Honda Honda Honda Honda Honda

Price

BR-V i-VTEC 1500cc CVT BR-V i-VTEC S 1500cc Model Civic i-VTEC 1.8L Civic i-VTEC Oriel 1.8L City 1.3L Manual City 1.3L Prosmatec HYUNDAI City 1.5L Manual City 1.5L Automatic Aspire Manual 1.5L Aspire Prosmatec 1.5L

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

2,399,000 2,499,000 Price 2,824,000 2,974,000 1,869,000 2,009,000 1,929,000 2,693,000 2,079,000 2,219,000

PRINCE DFSK PAKISTAN Model

Price

Rs. 899,000 K01 997CC, 2700mm K07 997CC, 6 Seater, AC/PS/PW Rs.1,099,000 C37 1500CC, 11 Seater,AC/PS/PW Rs.1,724,000 Rs.1,850,000 Prince Glroy 300 1499cc M/T Prince Glroy 370 1499cc M/T Rs.2,150,000 Prince Glroy 580 1499cc Rs.3,450,000

15,000 15,000 7,500 7,500 50,000 50,000 15,000 15,000 15,000 7,500 7,500 7,500 Model XLI VVT-i 1.3L M/T XLI VVT-i 1.3L A/T GLI VVT-i 1.3L M/T GLI VVT-i 1.3 A/T ALTIS 1.6L Dual VVT-i A/T ALTIS 1.8L Dual VVT-i A/T Corolla Altis M/T SR 1.8L (Grande CVT) Corolla Altis A/T SR 1.8L (Grande CVT) FORTUNER A/T 4x2 2694CC

Price Rs. 2,049,000 Rs. 2,124,000 Rs. 2,304,000 Rs. 2,379,000 Rs. 2,579,000 Rs. 2,819,000 Rs. 2,869,000 Rs. 3,004,000 Rs. 6,407,000

Toyota Hilux Pickup 4x2 sc Model

Price

Brand New Toyota Hilux Pickup, 4x2, 2500cc Single Cabin, White only, Hilux STD

Rs. 2,914,500

Toyota Hilux Pickup 4x4 E Model

Price

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

TOYOTA REVO DAIHATSU Model & Price

Vigo MT RevoChamp-V G M/T 1GD-FTV 2755cc

4,865,000 Revo V A/T 1GD-FTV 2755cc Vigo Champ-G AT 5,095,000

Rs. 4,555,000

FAW MOTORS Price

Model FAW Carrier DL 1000cc FAW Carrier 1000cc STD FAW Carrier 1000cc (Flat Bed) FAW X-PV 1000cc Std FAW X-PV 1000cc A/c FAW V2 1300cc M/T Local Assembled

Rs. 919,000 Rs. 939,000 Rs. 929,000 Rs. 1034,000 Rs. 109,5000 Rs. 1,289,000

Monthly AutoMark Magazine - International Price updated Feb2019

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International Automotive Industry - Update

Monthly AutoMark

VW will add $800 million EV plant in U.S.

Germany to reach target of 1 million electric cars later than planned Germany will likely have to delay its target of having 1 million electric vehicles on the road by two years to 2022, according to a government-sponsored report. “Considering the current market dynamics, the 1 million target will likely shift to 2022,” the report by the German National Platform for Electric Mobility, which was submitted to Chancellor Angela Merkel on Wednesday, said. New registrations of electrical vehicles more than doubled in Germany last year, the fastest growth in the world, and there were 131,000 such vehicles registered by the end of 2017, according to the report. Sales were helped by the launch of a German subsidy scheme in 2016 worth about 1 billion euros ($1.2 billion), partly financed by the German car industry, to boost electric car usage. However, many consumers have been discouraged by the cost of the cars, their limited driving ranges.

India invites Chinese participation in its plans to expand Electric Vehicles China EV100, a private electric vehicle association of over 200 leading Chinese electric mobility industries, is organising the 5th China EV100 Forum in Beijing. India plans to achieve electric mobility by 2030 and welcomes Chinese industries participation and investment in the expansion of Indian Electric Vehicles (EV) Market, NITI Aayog Principal Advisor Anil Srivatsava has said. Srivastava, who led an industrydelegation from India and addressed summit forum 'Global Zero Emission and All Electric Vehicle' held from January 11-13, met Chen Qingtai, President of China EV100, and invited China's participation in India's ambitious plans to go for full electric mobility.

Volkswagen Group is adding a second U.S. plant to build electric vehicles for Volkswagen and potentially other brand s, wi th an $800 mil lion investment expected to create 1,000 jobs at the automaker's only U.S. assembly operation. The new factory will be built next to VW's existing plant in Chattanooga, Tennessee. It will begin producing EVs for North America in 2022. The EVs will be built on VW's modular electric toolkit chassis, known as MEB. W he n p r o d uct i o n be g i ns , t he Chattanooga site will be one of six VW Group assembly plants globally dedicated to producing battery-electric vehicles, and the only one in North America. The 3.4 million-square-foot Chattanooga plant employs about 3,500 workers. "The U.S. is one of the most important locations for us and producing electric cars in Chattanooga is a key part of our growth strategy in North America," VW Group CEO Herbert Diess said in a statement. "The management team, led by Scott Keogh, is committed to continuing to increase our market share

in the coming years. Together with our ongoing investments and this increase in local production, we are strengthening the foundation for sustainable growth of the Volkswagen brand in the U.S." Plan for North America Diess and leaders of Volkswagen Group of America have laid out an aggressive battery-electric plan for North America, beginning with the I.D. Crozz crossover set to arrive in the United States in 2020, and including what the automaker calls a "multipurpose" electric vehicle based on the I.D. Buzz concept. The I.D. Buzz was a retro styled version of VW's former Microbus, and is expected to return to the U.S. in 2022. VW Group has committed almost $50 billion through 2023 to carry out the EV plans worldwide. Those plans include at least two other battery-electric models for U.S. consumers, part of the automaker's blueprint to produce and sell as many as 27 full-electric models globally by 2022. VW believes it can sell at least 150,000 EVs globally by 2020, and ramp that number up to 1 million worldwide by 2025.

GM sold 200,000 electric vehicles in U.S. by 2018, triggering tax-credit phaseout: source GM, which said previously it expected to reach the 200,000 sales figure before the end of 2018, declined to comment ahead of the release of its quarterly sales results on last month. General Motors Co hit 200,000 total electric vehicles sold in the United States by the end of 2018, reaching a threshold that triggers a phase-out of a $7,500 federal tax credit over the next 15 months, a person briefed on the matter said last month. The largest U.S. automaker reached the figure in the fourth quarter of 2018, which means the credit will fall to $3,750 in April, and then drop to $1,875 in October for six months. The credit will completely disappear by April 2020. The 200,000 figure covers GM's cumulative EV sales since 2010. GM, which said previously it expected to reach the 200,000 sales figure before the end of 2018, declined to comment ahead of the release of its quarterly sales results on last month. GM and Tesla Inc, which hit the 200,000 figure in July 2018, have both

lobbied Congress to lift the cap or extend the existing tax credit. Tesla's EV tax credit fell to $3,750 on Tuesday and Tesla said it was cutting prices on its EVs by $2,000 to partially offset the lower tax credit. In March, GM Chief Executive Mary Barra called on Congress to expand the consumer tax credit for electric vehicles as the company boosted production of the EV Bolt in response to consumer demand. She repeated the request last month during a visit to Capitol Hill. GM said in November it was doubling resources allocated to developing electric and self-driving vehicles as part of a significant restructuring that includes ending production at five North American plants. GM also announced it would halt production of the plug-in hybrid Chevrolet Volt by March. In November, a congressional report said 57,066 taxpayers claimed $375 million in EV tax credits in 2016. Congress estimates the cost of the EV tax credit at $7.5 billion between the 2018 and 2022 fiscal years.

www.automark.pk | February-2019 | Page 39

Corporate Event media coverage

Master Motor inaugurated their first state of the art 5S facility and showroom in SITE, Karachi

Master Motors’ assembly plant at Port Qasim will start producing Changan vehicles next month. The event was attended by auto experts, dealers, vendors, media and business representatives. The chief guests of the ceremony were Managing Director Master Motor Mr. Nadeem Malik and Chief Executive Mr. Danial Malik. Danial Malik while addressing the audience announced that the company is going to start production of Changhan branded vehicles in Pakistan from next month. The Karvaan 6+2 seater minivan and M9 1-ton pickup with 9ft loading deck will be launched in the initial stages which will then be followed by M8 1-ton pickup with an 8ft loading deck. Danial Malik said the company also plans to introduce 7-seat Changhan

CX70T SUV and 7-seat A800 MPV, both powered by 1.5 litre turbocharged engine, by the end of this year or early next year. The company will invest about $15 million in an Italian brand, Iveco trucks, and start assembling these trucks in the next five to six months. While at the sideline of the event, talking with Automark Danial said “This joint venture between Master Motor and Changhan Automobiles from China, set up with the initial investment of $100 million with Chinese company under a joint venture agreement, would provide 10 thousand direct and indirect employment opportunities,”. He further said, the company has already established 10 dealerships in major cities of Pakistan while this dealership was its first 5S facility.

Completely built units (CBU) of Changan karwan van and M9 pickup have reached Pakistan and we have already got bookings up to March. We are fully sold out,” he said. Furthermore, Master Motor is also starting the local assembling of IVECO trucks this year, which is the first Italian automotive brand being manufactured in Pakistan. The company already sells OGRA compliant IVECO, FUSO and FOTON heavy vehicles in the country. Master Motor Managing Director Nadeem Malik said that the company is aimed to provide quality products and serv i ces t o it s cust omers and inaugurating its first state-of-the-art 5S facility and showroom in Karachi is a step forward in this direction.

www.automark.pk | February-2019 | Page 40

Cooperation MOU - PR

Meezan Bank and KIA Lucky Motors Pakistan Ltd. sign a MoU for Promoting KIA Lucky Motors’ Grand Carnival!

Meezan Bank has signed a MoU with KIA Lucky Motors Pakistan Ltd. Picture shows Mr.Ariful Islam - Deputy CEO, Meezan Bank, Mr.lrfan Siddiqui-President & CEO, Meezan Bank, Mr.Muhammad Faisal Chief Operating Officer - Kia Lucky Motors signing the agreement along with Mr. Asif Rizvi - CEO, Mr. Azam Mirza - Director Marketing & Sales and other officials present at the occasion. Karachi, January 24, 2019: Meezan Bank, Pakistan’s leading Islamic bank and the Best Bank in Pakistan has recently signed a Memorandum of Understanding with KIA Lucky Motors Pakistan Ltd - a collaboration between KIA Motors Corporation, South Korea and the Yunus Brothers Group, Pakistan, formed to start vehicle assembly / manufacturing operations in Pakistan. The signing ceremony took place at Meezan House, Meezan Bank’s Head Office, Karachi. Mr. Irfan Siddiqui President & CEO and Mr. Ariful Islam - Deputy CEO of Meezan Bank, Mr. Asif Rizvi - CEO and Mr. Muhammad Faisal – COO of KIA Lucky Motors attended the ceremony along with their respective teams. MoU was signed by Mr. Ariful Islam and Mr. Muhammad Faisal. Under this MoU, both the parties have agreed upon a joint promotion campaign for the KIA Grand Carnival. Meezan Bank has created a prospect for providing priority vehicle delivery to its customers across Pakistan. KIA is one of the world ’s fastest growing automobile manufacturers. Mr. Ariful Islam, Deputy CEO of Meezan Bank, while speaking at the signing ceremony said, “Meezan Bank Car Ijarah

has been developed to comply with the principles of Shariah for providing convenient car financing. The Bank follows a strategy of maintaining stringent credit criteria and fast deliveries to maintain optimal customer service in line with the service values of the Bank.” Mr. Irfan Siddiqui, President and CEO of Meezan Bank further added, “This is an important event for Meezan Bank that corresponds with our strategy to remain the No. 1 bank in Islamic autofinance market. Our agreement with KIA Lucky Motors Pakistan will make the luxury car, Grand Carnival more affordable to a large population of brand lovers. The Bank, in turn, will get the opportunity to couple this provision with a range of additional services and benefits including faster vehicles delivery as well as free initial services for its customers.” Meezan Bank is the 7th largest bank in Pakistan and the leading Islamic bank of the country. The Bank provides a comprehensive range of Islamic banking products and services through a retail banking network of more than 600 branches supported by a countrywide network of 600 ATMs, VISA & MasterCard Debit cards, a 24/7 Call

Center, Internet Banking and Mobile Banking facility. Meezan Bank has consistently been recognized as the ‘Best Islamic Bank in Pakistan’ by numerous local and international institutions. The Bank has also been recognized as the ‘Best Bank in Pakistan’ by Pakistan Banking Awards– the most prestigious awards in Pakistan’s Banking sector, which is a testimony of the Bank’s commitment to excellence. Other awarding institutions include Islamic Finance News Malaysia, Global Finance magazine New York, Asset AAA - Hong Kong, Asia money – Hong Kong, The Banker – Uni ted Ki ngd om, South A sian Federation of Accountants, Islamic Finance Forum of South Asian Awards, Pakistan Banking Awards – Dawn & IBP Pakistan, Employers Federation of Pakistan and CFA Association Pakistan. The JCR-VIS Credit Rating Company Limited, an affiliate of Japan Credit Rating Agency, Japan has reaffirmed the Bank’s long-term entity rating of AA+ (Double A Plus) and short-term rating at A1+ (A One Plus) with stable outlook. The rating indicates sound performance indicators of the Bank.

www.automark.pk | February-2019 | Page 41

Rs. 41,800/= Rs. 43,800/= Sr./ Product & Model Name No. 1. Honda CD-70 2. Honda CD Dream 3. United US 70 4. United Extreme 70 5. Road Prince Bullet 6. Road Prince 70cc 7. Unique UD-70 8. Super Power SP-70 9. Super Power Deluxe 10. Super Star SS-70 11. Hi-Speed SR-70 12. Ravi Premium R1

Retail Price Rs. 69,500/= Rs. 73,500/= Rs. 43,500/= Rs 44,500/= Rs. 45,500/= Rs. 41,000/= Rs. 46,000/= Rs. 45,700/= Rs. 55,000/= Rs. 44,000/= Rs. 47,000/= Rs. 46,950/=

125/150/200cc Motorcycle No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25.

Brand & Model Name

Retail Price

Honda CG-125 STD Rs. 114,500/= Honda CG-125 DX Rs. 129,500/= Honda CD-125 Dream Rs. 109,400/= Honda CB-150F Rs. 187,000/= United US-125 Euro 2 Rs. 70,000/= Road Prince 125cc Rs. 67,000/= RP WEGO 150cc Rs. 180,000/= Super Power SP 125cc Rs. 69,000/= Super Power Archi 150cc Rs. 140,000/= Super Power SP 200cc Rs. 2,00,000/= Rs. 70,000/= Unique UD 125cc Unique UD 150cc Crazer Rs. 165,000/= Super Star SS-125 Rs. 68,800/= Super Star SS-125 DLX Rs. 67,000/= Rs. 76,000/= Hi-Speed SR-125cc Hi-Speed Infinity SR-150 Rs. 175,000/= Hi-Speed SR-200 Freedom Rs. 200,000/= Metro MR-125 Regular Rs. 67,000/= Ravi Piaggio Storm 125 Rs. 108,000/= Yamaha YBR-125Z Rs. 123,500/= Yamaha YBR-125G (2018) Rs. 144,500/= Yamaha YBR-125 Rs. 139,500/= Crown CR-125 Rs. 65,000/= Zxmco ZX-125-Euro II Rs. 71,600/= Zxmco ZX-200cc Rs. 2,45,000/=

Sr./ No. 13. 14. 15. 16. 17. 18. 19. 20.

Product & Model Name Ravi Hamsafar-70 Bionic AS-70 Crown CR-70 Metro Premier+ 70cc Union Star Ms Jaguar MS 70

( DREAM)

Zxmco ZX-70 Regular Leader LD-70

Retail Price Rs. 43,500/= Rs. 45,500/= Rs. 42,000/= Rs. 45,600/= Rs. 44,000/= Rs. 43,800/= Rs. 42,300/= Rs. 44,000/=

100cc/110cc Motorcycle No. Brand &Model Name 1. Honda Pridor 2. United US-100 Euro 2 3. Road Prince 110cc 4. Unique UD-100 5. Super Power SP-100 6. Hi-Speed Classic SR-100 7. Hi-Speed Alpha SR 100 8. Super Star SS-100 9. Crown CR-100 10. MS JAGUAR MS 100 11. Zxmco ZX-100-SS 12. Leader Classic LD-100

Retail Price Rs. 95,500/= Rs. 50,000/= Rs. 48,500/= Rs. 80,000/= Rs. 60,000/= Rs. 51,000/= Rs. 90,000/= Rs. 57,000/= Rs. 52,000/= Rs. 48,800/= Rs. 51,600/= Rs. 52,900/=

Suzuki Motorcycle Sr./ Product & Retail Price No. Model Name 1. GS-150 SE Euro-II Rs. 180,000/= 2. GD 110S Self Start Rs. 155,000/= 3. GS-150 Rs. 162,000/= 4. NEW GR-150 Rs. 243,000/= 5. Sprinter Rs. 119,900/= Heavy Bikes Sr./ Product & Retail Price Model Name No. 1. Inazuma GW 250 Rs. 599,000/= 2. Intruder M800 Rs. 1,700,000/= 3. Hayasuba GSX1300R Rs. 2,600,000/= 4. Bandit GSF650SA Rs. 14,50,000/= 5. Honda ADA CB250F Rs. 6,40,000/= 6. Super Power Sultan-250 Rs. 2,90,000/=

Prices updte Feb-2019 www.automark.pk | February-2019 | Page 42

International Automotive Industry - Update Honda CB300R Launch in India Confirmed, Bookings Open for Rs 5000 Honda says that the CB300R will be Made-in-India and priced below Rs. 2.5 lacs (ex-showroom). Honda Motorcycle & Scooter India confirmed that the Neo Sports Café inspired– Honda CB300R will be launched in India. The CB300R will be available for sale through the Completely Knocked Down (CKD) route for the Indian market. The CB300R will be available in two colors - Matte Axis Gray Metallic and Candy Chromosphere Red. Honda has opened bookings for the CB300R across India for Rs 5000. Commenting on the announcement, Yadvinder Singh Guleria, Senior Vice President - Sales and Marketing, Honda Motorcycle and Scooter India Pvt. Ltd. said, “Driven by the need to discover and challenge new frontiers, the CB300R is for true enthusiasts willing to try new ideas and experiences. Not only will it add more adrenaline to daily riding, Neo Sports Café styled CB300R is sure to turn around heads on the streets.

SUV like Suzuki Ertiga cross will challenge BR-V, Rush, Xpander The Honda BR-V, Mitsubishi Xpander, and Toyota Rush have been racking up rather healthy sales figures in the past couple of months. These small, sevenseat 'SUVs' are proving popular in certain markets and now, Suzuki wants in on the craze too. Tentatively dubbed the Ertiga Cross it is, you've guessed it, a higher-riding version of the standard Ertiga. There aren't much details surrounding it for now, but it's more than likely to be aimed squarely at the tall MPVs of Honda, Mitsubishi, and Toyota. However, a leaked patent photo circulating around the internet gives us a glimpse of the raised MPV. So far, the only hint suggesting a more rugged look for the Ertiga is a faux skid plate on the rear bumper, along with some extra cladding. With that, one can expect the production model to have more cladding in front, plus a faux skid plate, and bolt on fender flares on its flanks. A pair of roof rails could also be added on to the raised Ertiga, as the patent photo suggests.

Monthly AutoMark

Hyundai Motor pitches high-performance and hydrogen vehicles in China South Korea’s top automaker Hyundai Motor is deploying high-performance models and hydrogen-powered vehicles in China in hopes to hold its ground in the world’s largest automotive market amid fast rise in domestic brands. The carmaker showcased a lineup of its high-performance N brand cars and hydrogen fuel cell vehicles at the China International Import Exposition (CIIE) 2018 which took place in Shanghai on last month. The CIIE designed to highlight China`s commitment to opening up and boosting consumer-led growth attracted about 2,800 companies from around the world. The N brand made its first debut in China with the introduction led by Thomas Schemera, head of the product planning and strategy division at

Hyundai Motor. The lineup is the carmaker’s first strategic pick to win back consumers after its top manager was replaced by the first foreign vice president in the product planning position. “We are closely examining which highperformance cars in the N lineup will be put forward into the Chinese market in the future. We are also considering the N brand for our green cars,” he said. Hyundai Motor have limited its N models to Korean and American markets. As of the end of September, Hyundai Motor’s five plants in China turned out 181,000 units, half of their capacity. Sales fell to 70 percent of the levels of 2012-2015 and its market halved to 3 percent range from above 6 percent until 2015.

Toyota recalls 1.7M vehicles in N. America to fix air bags Toyota announced the recall of 1.7 million North American vehicles on Wednesday, a part of the ongoing recall involving potentially deadly Takata front passenger airbag inflators. The Takata airbag recall has affected virtually all major automakers. The airbags were made with the chemical ammonium nitrate and were prone to exploding upon deployment, potentially hurling fiery shrapnel into passengers. At least 23 people worldwide have died in incidents blamed on the defective devices. The latest recall affects certain Toyota and Lexus models, including 1.3 million in the U.S. Among the impacted Toyota models: • 4Runner (2010 through 2016) • Corolla (2010 through 2013) • Mat rix (2010 t hrough 2013) • Sienn a (2011 through 2014) Impacted Lexus models include: That said, it isn't likely that the Ertiga Cross will come with an all-wheel drive option given that its competition sticks to two wheel drive. What is possible is the inclusion of a diesel option, already available in the India-market Ertiga. At the moment, the Ertiga's engine range consists of a mild-hybrid gas and mildhybrid turbodiesel, as well as a non-

• ES 350 (2010 through 2012) • GX 460 (2010 through 2017) • IS 250C (2010 through 2015) • IS 350C (2010 through 2015) • IS 250 (2010 through 2013) • IS 350 (2010 through 2013) • IS-F (2010 through 2014) Also included: the Scion XB (2010 through 2015). Owners can check to see if their vehicles have been recalled by going to Toyota's website. They will also receive a mailed notification, starting in late January, a Toyota release says. This week, the Ford Motor Co. issued a recall of nearly 1 million vehicles in North America in connection with the Takata airbag recall. The most vulnerable vehicles were fixed first, but safety advocates say more vehicles should have already been repaired, given the danger associated with the inflators. hybrid version of the gas-fed engine. Still in patent drawing stages, the Ertiga Cross won't be making an appearance at least for the first half of the year. However, it is likely that it could make its world premiere towards the end of 2019 or the first half of 2020.

www.automark.pk | February-2019 | Page 43

Corporate Business Event Update

Monthly AutoMark International

China Tires & Rubber Tech Expo 9 - 11 April, 2019 International Convention Center Qingdao - China www.automark.pk | February-2019 | Page 44

International Automotive Industry - Update

Monthly AutoMark

Toyota and Suzuki joins hands to build environment-friendly, fuel efficient vehicles

British Lotus cars to be 'Made in China' at new Geely plant The Chinese owner of Lotus plans to start producing the British sports car brand in China for the first time with the opening of a new 9 billion yuan ($1.3 billion) factory in Wuhan city, company job advertisements and government documents showed. The previously unreported plans are Zhejiang Geely Holding Group's first move to shake up the British brand since its purchase of a majority stake in 2017. The move is in line with Geely's ambitions to build more up-market cars and throw off its reputation for copycat designs and shoddy quality. For Lotus, it could mean greater production volumes and new models such as SUVs to boost sales. "For Geely, going high-end can help it take more market share," said Alan Kang, Shanghai based analyst at LMC Automotive. "Geely needs to do that to better compete with global brands." Lotus cars are currently built in Norfolk, England. Geely and Lotus said in a joint statement that while Norfolk was Lotus's manufacturing home, a key part of the firm's strategy to revive the brand was expanding the brand's manufacturing footprint globally.

One of the biggest Japanese automotive giants, Suzuki Motor Corporation and Toyota Motor Corporation have officially come together under a new business partnership. The auto manufacturers had first announced their plan towards a business partnership over new ideas back in October 2016. In February 2017, Toyota an d S u z uk i ha d co n c l ud e d a memorandum and joined hands officially and since then, they have been working on innovative projects for collaboration in areas including environmental technology, safety technology, information technology, and component sharing. The news emerged as one of the biggest in the auto industry globally as one of the biggest carmakers will be exploring new ways of cooperation in tech, safety and the mutual supply of products and components. In March last year, both the auto giants finally announced the new partnership and concluded a basic agreement for supplying hybrid and other vehicles to each other in the Indian market. As per the agreement, Japanese auto major Toyota is gearing up to launch its version of Suzuki’s premium hatchback Baleno in the Indian market in the second half of next fiscal while Toyota has been working on incorporating its own unique features to the model. Furthermore, in November 2017 the

automakers also announced an MoU to consider a cooperative structure for introducing battery electric vehicles in 2020. In a latest news Japanese auto major Toyota is gearing up to launch its version of Suzuki's premium hatchbackBaleno in the Indian market in the second half of next fiscal, according to sources. T oy o t a h as be e n wo r k i n g o n incorporating its own unique features to the model that has been a runaway success for Suzuki's Indian arm -- Maruti Suzuki. "Under the Toyota-Suzuki tieup, each company will sell mutually supplied vehicles under their own respective brands and nameplates. Beyond that, at this point in time, we are not in a position to discuss further details such as vehicle specifications of our future product plans," Toyota Kirloskar Motor Vice President Atsushi Oki told . He said Toyota will further boost its outlook on component localisation in support to "Make in India" initiative to achieve cost effectiveness. On how Toyota would position its version of Baleno in the market in terms of pricing, Oki said, "We understand the price sensitivity of Indian market. We will continue to keep up the price momentum in these directions. At this point in time, details on pricing are under discussion."

Toyota and Panasonic to make electric-vehicle battery packs in 2020, compete with Chinese producers • Toyota will take 51 per cent of the venture, while Panasonic will hold the remaining st ake, a source say Toyota Motor and Panasonic are set to launch a joint venture next year to produce batteries for electric vehicles (EV) in an effort to compete with Chinese rivals, a source familiar with the matter said. The joint venture, to be owned 51 per cent by Toyota and the rest by Panasonic, could also provide batteries to Toyota’s EV technology partners Mazda and Subaru, the source said on Sunday. The source declined to be identified because the talks on the joint venture are private. A joint venture would build on the agreement that the pair announced in

late 2017 on joint development of batteries with higher energy density in a pri smat ic cell arr an gemen t. Toyota and Panasonic each said the plan to set up a joint venture, first reported by the Nikkei business daily on Sunday, was not what they have publicly announced. A Toyota spokesman said the two companies have been working on the battery partnership announced in 2017. Panasonic made the same comment in a statement. Under a planned joint venture, Panasonic would shift most of its prismatic battery-related equipment and facilities in Japan and China to the joint venture, while those producing batteries for US electric-vehicle maker Tesla will remain under the company,

the source said. Panasonic already makes prismatic batteries for Toyota, whereas for Tesla, it makes cylindrical batteries of a type similar to those used in laptops. The two companies may announce the joint venture plan as early as this week, according to the source. The battery joint venture will help Toyota achieve an annual sales target of around 1 million zero-emission battery EVs and fuel-cell vehicles (FCVs) by 2030. It will also give Panasonic cost and scale advantages in battery production at a time when China’s Contemporary Amperex Technology has grown to be on par with the long-time industry leader on the back of the rapidly growing home market.

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Exclusive by Talal Hussain Malik

A Wake Up Call for Atlas Honda

Just when the world was celebrating in the usual jubilant ways the arrival of the new year, the leaked news of launch of a new 125cc motorcycle by Atlas Honda Pakistan in early January took the biker community by a pleasant surprise and there were several speculations about what to expect in the new product till the bike was launched on January 04 when all the speculations, high hopes and any excitement that there was dashed to ground. It is a matter of shame for Atlas Honda for trying to make a fool of motorcycle enthusiasts in Pakistan with the launch of CB125F, a bike that is nothing but a CG Deluxe in new robes, same old 5 transmission OHV engine. A bike that everywhere else in the world comes better equipped in lesser price. Imagine

CB125F in India with PGM-FI, two valve OHC engine, more attractive frame and stylishly designed alloy wheels. With the launch of CB125F Atlas Honda continues its mission of making a fool of biker community in Pakistan by introducing yesterday technology at tomorrow's price. To bring an end to the nightmare it is time government should deal automobile manufacturers with iron hands and tell them to localize the manufacturing of all sorts of parts for bikes and cars instead of importing them and increase prices every now and then in the name of increased dollar rate. This CB125F should in no way be anywhere near to the real world CB125F, notice the pathetic approach of Atlas Honda by giving such a cheap, foolishly

placed self-start button, which gives a feeling that just before coming out of the assembly line someone said, "Ok add a self-starter to the bike too". Aesthetics seem to have completely died out in Atlas Honda products. To add insult to injury they start campaigns like Brits on Bikes for promotion of their products as though there is dearth of bikers of class in Pakistan. With more stylish, lesser priced Chinese bikes coming to the country it will not be a matter of surprise that Japanese manufacturers in Pakistan may incur dropped sales and therefore huge losses. A 125cc bike with OHV engine priced at Rs.160000/- should be a wakeup call for Atlas Honda.

12th BIRTHDAY of Pakistan BIKERs Club

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Monthly AutoMark International

Tractor industry in trouble

Tractor industry sees sharp slump CEO Al-Ghazi Tractors Shahid Hussain said production has plunged to 8,155 units in the first half of current fiscal year from 12,061 units last year Demand for tractors has plummeted so sharply it is now threatening an industry shutdown amid reports of widespread layoffs. Chief Executive Officer Al-Ghazi Tractors Ltd (AGL) Shahid Hussain said production has plunged to 8,155 units in the first half of current fiscal year from 12,061 units last year following the slowdown in the market coupled with the non-release of massive sales tax refunds by the government. “Our sales and distribution activities are going on but the company has unsold stock of 1,000 tractor units,” he said adding the assembly line was shut down last week due to annual maintenance and it may continue till second week of January. Vendors for the tractor industry say they have already begun employee lay-offs am i d d ec l i n i n g d e ma nd f r o m assemblers. The decline in demand for tractor parts since Nov 2018 has cost the jobs of numerous daily-wage workers in the vending industry, whereas, though assemblers have maintained their existing workforce despite slump in sales. Former chairman Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Mumshad Ali said that “I have fired 125 people, mostly daily-wage workers, contractual and permanent employees in January from my two plants,” adding that “I have not been providing parts to tractor assemblers from last week of November last year.” He said that assemblers are not buying parts from vendors since they still have unused inventories at their plants and dealership networks. He added that, in addition to the rupee devaluation pushing up the prices, tractor sales have also been affected by the delay in cash disbursement to sugarcane growers by millers on account of late start of crushing season. “I think tractor market will shrink to

Rs30 billion in the ongoing fiscal year from Rs60bn owing to depressed sales during first six months of the current fiscal year,” he said hoping that arrival of wheat crop at the beginning of second quarter of 2019 may encourage growers to lift locally assembled tractors. Moreover, the wait-and-see approach of growers over the government’s plan to allow imports of five-year old tractors has also affected tractor sales. Co-Convenor Tractor Committee Paapam, Maqsood Rana said, “I have removed 15 out of 40 semi-skilled workers and machine operators from the service since sales halted from Nov 2018 onwards.” Former chairman Paapam Tariq Nazir said, “I have kept my 200 workers intact at my plant despite no sale of parts to tractor assemblers from Nov 15, 2018.” But he said, “I may remove half of my workforce in case our sales remain suspended from Jan 15 onwards,” claiming that 80 per cent of Paapam members have retrenched more than 50pc of their workers in the last two months. President Pakistan Kissan Itehad (PTI), Khalid Mahmood Khokar said growers are not purchasing tractors due to cash crunch. “I have asked the federal government to remove 5pc general sales tax on tractors and provide subsidy which can bring down prices and enable growers to purchase tractors,” he said.

Hussain noted that, “farmers and growers do not have surplus funds to buy tractors.” Water scarcity, rising input cost of crop, late crushing of sugarcane and cotton crop crisis have adversely affected farmers and growers he claimed. He said that the industry has been pleading with the government to address the anomaly between input tax and output tax that leads to completely imbalanced and massive accumulation of refund claims which stand at around Rs2bn for AGL alone. Millat Tractors Limited (MTL) has also shut down its manufacturing plant from December 10-31 last year while the restart state had been extended to January. The company issued parts’ procurement schedule from vendors for Oct-Dec 2018 and January but cancelled it in Nov 2018 due to huge inventory of tractor parts as well as completely built up tractors in the company. An MTL official said that so far, no employees have lost their jobs but overall trading activities have stopped due to liquidity crunch in the market. Besides, suspension in China-Pakistan Economic Corridor and government infrastructure projects — in which tractors were used for hauling construction material and debris — had also adversely affected sales. Courtesy: Dawn

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