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Monthly automotive magazine April 2012 issue that covers Pakistan auto sector, energy sector

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Page 1: Monthly Automark April 2012

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Page 4: Monthly Automark April 2012

AutoMark REGD: SC-1330Published every month by M. Hanif MemonPostal AddressActive CommunicationsD-68, Block-9, Clifton,KarachiVisit us: www.automark.pkE-mail: [email protected] [email protected] : 021-32218526 Mobile: 0321-2203815

Islamabad Chamber of Commerce andIndustry (ICCI) strongly criticized themassive surge in the POL product andCNG prices.

Rejecting another unjust increase in thepetroleum and CNG prices, massiveincrease in POL and CNG prices wouldhave a crushing impact on poor massesand shatter all segments of society.

Over the past four years, petrol pricesin the country have gone up by 51percent as oppose to an increase of 15percent in the international marketfollowed by CNG price which hasalarmingly increased by almost 110percent to Rs88.70 per kg from Rs31per kg in 2008.

Industry people expressed deep concernupon sluggish production activities inthe industrial units due to power loadshedding and said that the recentincrease in petroleum products priceswould give a big blow to the industryand have devastating impact on othersectors as well.

Many sayes that due to inappropriateand badly chosen policies of theGovernment the prices of essentialcommodities are going higher day byday. In such a critical situation, theannounced increase in prices on POLproducts would jack up the graph ofinflation further high and hit the commonman hard as our citizens were alreadyburdened with bleak economic conditions.

There has not been much of an increasein the international price of oil since2008. On contrary, Government wascontinued to give excuse of internationaloil price hike to justify high power pricesbeing charged domestically.

Chamber of Commerce and industry forthe last many months had been callingthe concerned government circles totake measures for the promotion ofalternate fuels as trade deficit was fastwidening due to heavy imports underthe head of petroleum products, butgovernment in not doing anything.

Surge in CNG prices

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

Sub EditorDr. Raja Irfan Sabir

Technical EditorMuhammad Shahzad

Advertising ManagerAbdul Khaliq

Circulation ManagerTahir Siddiqui

Computer OperatorSalman Hanif

Web MasterMustafa Hanif

CONTRIBUTING IN

THIS ISSUEMuhammad Shahzad

Asif Masood

Salman Ahmed Shaikh

Ali Hassan

Ali Abbas

M. Owais Khan

AdvisorsImtiaz RastgarCEO, Rastgar Group &CBI External Expert,Ex-chairman EDBIslamabad

Abdul Majeed SheikhPresident,AOTS-ABK Dosokai,Karachi Regional Center& Director (MME),NED University,Ex-Director Pak SuzukiKarachi

M. Yakoob GazianiCEOLORD Institute of Tech.Karachi

Haider NawabAdvisor Planning &DevelopmentToyota Southern MotorsToyota Defence MotorsKarachi

J. PereiraMaster Motor Corporation Ltd.Karachi

Engr. IHT FarooquiGeneral Manager PlantKarakoram Motors (Pvt) Ltd.,Karachi

EditorM. Hanif Memon

The views expressed by contributingwriters and comments do not

necessarily reflect the views andpolicies of the Monthly AutoMark

magazine's management.

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Page 5: Monthly Automark April 2012

CONTENTS

Problems of Chinese bike assemblers 14-15intensify ahead of budgetExclusive Article by Ali Hassan

Yamaha to invest $150mn in Pakistan 16

Chinese, Korean vehicle assemblers eye 17-18big market share in next five yearsExclusive Article by M. Owais Khan

General Tyres to start 19manufacturing bike tyres

The Automotive Parts Trade in Pakistan 20by S.M. Naeem

The Hell…Under Your Car’s Hood! 21-23Exclusive car care articel by M. Shahzad

Automobile sector of Pakistan - Review 29-30

Team CLAPTRIX and Solar Car 35by M.Yousuf Abbas

Indus Motor holds Suppliers Convention 37

Hydrogen Fuel Car, NED students 38by Zeenat Anjum

Communication in Customer Service 39Exclusive by Ali Abbas

Dutch Ambassador to Pakistan Pours 40Metal in Pakistan Foundry

Energy Conference in Islamabad 41-43by Asif Masood from Islamabad

Road ahead for Pakistan economy 45By Salman Ahmed Shaikh

Local Assembled/Imported car price 46

Motorcycles market prices 48-49

visit: www.automark.pk

Monthly AutoMark

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Page 6: Monthly Automark April 2012

Exclusive Article by Ali Hassan Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 14

Some low cost bike makers, like pastexperience, are again in trouble aheadof announcement of Budget 2012-2013due to bottlenecks being created byvarious government departments.A number of government departmentsunder an influence of a leading Japanesebike maker have been putting up a lotof pressure on Chinese bike assemblersbut the low cost bike makers have beenover passing the hurdles except for somelow volume assemblers.Some big Chinese bike makers havejoined the Pakistan AutomotiveManufacturers Association (PAMA), ana ssociation of Japanese vehicleassemblers, to avoid any tension inworking environment while others, nonmembers of PAMA, are facing problemsin running their industries.The Federal Board of Revenue (FBR)has served audit notice under section25 and 38 of the Sales Tax Act, 1990 andother audit procedure for previous yearswhich the assemblers believe are aimedat keeping them busy in legal formalitiesso that the assemblers could not sendtheir pre-budget proposals or hold anyimportant meeting in relation to budgetwith government officials.Besides, a number of small bikeassemblers cum exporters are also facingproblems in getting rebate paymentfrom the government against export ofbikes.Chairman Association of PakistanMotorcycle Assemblers (APMA),Mohammad Sabir Shaikh says that thisis a sheer discrimination against smallbike exporters for not getting any rebateor facing monthly delays while bigassembles cum exporters are not facingany kind of this problem.He says that when government

departments delay the rebate paymentsthen how could timely exports could beexecuted.According to Model Collectorate ofCustoms Appraisement Sitara AutoImpex has exported two consignmentscontaining 180 units of 70cc toAfghanistan vide GD No. 3765 dated12.10.2 011 and No. 1080 dated29.07.2011. Now Sitara Auto Impex hasimported 500 kits of 70cc bikes in CKDconditions claiming adjustment andrelease of 180 kits free of customs dutyout of the aforesaid 500 kits in terms ofSRO 656(I) 2006 dated 22.06.2006.In order to ascertain the bonafide ofclaimed exemption, it is requested toconfirm the genuineness of the exportsand to check whether the rebate against

t h e a f o re s a i d t w o e x p o rt e dc on si gn me nts w as c la i me d o rsanctioned.Quoting an example of back biting orforcing another government departmentto conduct audit of local companies,S ab ir S hai kh sai d t he DeputyCommissioner Inland Revenue Karachihas served a notice to a bike makerregarding audit under section 25 and38 of the Sales Tax Act 1990. The lettersaid that investigation and prosecutioncell of this zone has carried outthe exercise of risk areas which interaliai nc ludes hi g her i nput s, lowe routputs, minimum amount of net taxpaid and negative variations of revenuefigures in comparison to preceding taxperiods.The Engineering Development Board(EDB) is actually behind these kind offutile exercises forcing FBR to conductaudit which is tantamount of misusingits power.The EDB has recommended conductingaudit for the year 2010 to 2011. Thecompany was asked to submit variousdocuments which included monthlysales tax returns, purch ase/salesinvoices, purchase invoices/bills ofentries, record of export (shipping bills,bills of lading, form E, export realizationcertif icate, customs invoices andcommercial invoices etc) , list ofmachinery installed in business andmanufacturing premises, original bankcredit advices, part wise ledger showingthe details of payments/receipts, bankstatement,, proof of payment, detail ofinventory/stocks register showing thedescription of raw material purchased,consumed as well as description wisegoods produced, supplied/exported andbalance , utility bil ls and records

Problems of Chinese bikeassemblers intensify

ahead of budgetChairman APMA M. Sabir Shaikh says that this is a sheerdiscrimination against small bike exporters for not gettingany rebate or facing monthly delays while big assemblescum exporters are not facing any kind of this problem

continued on next page

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Page 7: Monthly Automark April 2012

Exclusive Article by Ali Hassan Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 15

maintained under customs notification.In a case regarding manual selection ofcase for audit under section 177 tax year2011 – M/s/ Al-Fazal Autos/MoonTraders, these companies throughadvocates of High Court and TaxAdvisors had sent a letter to theCommissioner of Inland Revenue onprovision of section 214C regardingselection of audit by the Board.The Board may select persons or classesof persons for audit of income tax affairsthrough computer ballot which may berandom or parametric as the Board maydeem fit.Audit of income tax affairs of personsselected under sub section (I) shall beconducted as per procedure given insection 177 and all the provisions of theOrdinance, except, the first provision tosub section (I) or section 177 shall applyaccordingly.For the removal of doubt it is hearbydeclared that Board shall be deemedalways to have had the power to selectany persons or classes of persons foraudit of income tax affairs.The Advocates informed the InlandRevenue that therefore no mutualselection can be made and this will be acomplete violation of FBR instructionsand guidance in terms of section 213and 214 of the Ordinance.Without prejudice to the above, theAdvocates further submitted thatprovisions of section 214C (2) are veryclear which provides that the audit willbe conducted as per the instructions andguidance given by the FBR and noinformation in terms of section 177(I)can be called which are correlated tosection 214(C) of the Ordinance.However, Sabir Shaikh is happy over amove by Exc i se an d Ta xa ti onDepartment Punjab g overnmentregarding issuance of security featureddocuments to the owners of motorvehicles for registration of motor carsand motor cycles.The Excise and Taxation Department isresponsible for registration of motorvehicles under Punjab Motor VehicleOrdinance 1965. The documents of

motor vehicles are issued by themanufacturers of the vehicles which aresubmitted to the department ofregistration.Recently the percentage of bogus/fakedocuments presented before the MotorRegistration Authorities of Punjab haveconsiderably increased. The vehiclesregistered on bogus documents can alsoliable to be misused by unscrupulouselements in commission of crime or evenacts of terrorism.The Department is in the process ofintroducing security featured bookletsfor registration of motor vehicles, T.O.forms and transfer stickers with effectfrom July 1, 2012 which will address theinternal issues of the departmentincluding transpar ent process ofregis tration and post registrationtransactions by eliminating the role ofagent mafia and stamp vendors.However, the documents issued by themanufacturers of different types ofvehicles are equally important in theprocess. As long as those can be easilycopied, mere restriction of use of securityfeatured documents at this end will notyield desired results.It is therefore imperative that themanufacturing companies also startusing such documents/papers whichcannot be copied.The Excise and Taxation Departmenthas asked the manufacturers to examinethe possibility of use of some specifics e c u r i t y f e a t u r e s i n y o u rinvoice/ownership documents whichcannot be copied to ensure that theproblems related to fake registration areminimized.Sale of some popular bike makes (both

Chinese and Japanese assembled) isgoing brisk despite adverse political andeconomic conditions. However, Hondabikes enjoy a good support from therural buyers mainly in Punjab thanks togood price of cotton, wheat, sugarcaneand rice crops as well as risingproduction these crops.Production and sale of Honda bikesstood higher in March 2012 with 51,930and 52,232 units as compared toprevious months. The July-March 2011-2012 production and sales of Hondabikes surged to 437,015 and 437,033units as compared to 407,577 and407,133 units in the correspondingperiod of last financial year.Sale of Suzuki bikes, which furtherbecame costlier on April 1, 2012, alsoposted positive growth 16,434 from15,148 units.Meanwhile some leading Chinese partsmakers have started highlighting theirproducts through advertisement in localmonthly automotive magazines withcomplete address and email at a timewhen Pakistan plans to enhance its withborder trade with India.These companies are either looking forjoint ventures for local counterparts ortrying to lure the traders for importingtheir products in Pakistan.However, local bike assemblers claimto have achieved over 90 per centdeletion in two wheelers but theycontinued to raise prices on the pretextof some hi tech parts used in assemblyof engines.China’s is Pakistan most trustedneighbor and business partners whileI ndia a nd e ven the P aki st an igovernment is looking forward to fostertrade between two countries.Perhaps Chinese parts makers knowthat opening trade with India may notauger well for Pakistani bike industryas India does not produce 70cc bikes sothere is hardly any chance of importingparts from India.Besides, the opening of proper businessbetween Pakistan and India will takemore time and China will have enoughtime to satisfy loc al t raders.. . .

China’s is Pakistan most trusted neighbor and business partners whileIndia and even the Pakistani government is looking forward to foster

trade between two countries.Perhaps Chinese parts makers know that opening trade with India may

not auger well for Pakistani bike industry as India does not produce70cc bikes so there is hardly any chance of importing parts from India.

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Page 8: Monthly Automark April 2012

Automotive Sector - Update Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 16

Yamaha Motor of Japan will use Indiaas one of its four regional procurementbases to source parts for its two-wheeleroperations worldwide.The others are Japan, China and ASEANwhich will jointly contribute to Yamaha'sgoal of keeping its costs in check. Thetarget is to bring these overheads downby nearly Rs 5,000 crore in 2012 as partof a larger recast exercise.Yamaha may not be doing big vehiclenumbers in India yet but has been quickto recognise the potential its ancillarysupplier base has to offer in terms oftop quality parts at competitive costs.This will allow headquarters in Japanto focus on technologies while the globaloperations (primarily its ASEANintegrated development centres) willplay a far more proactive role in productdevelopment.BIKE VOLUMESWhile its India bike volumes are slowlystarting to build up, Yamaha has beenmore successful in Indonesia, Thailandand Vietnam where it closed 2011 at 4.6million units. The target for this calendaris 5.5 million units of which nearly 40per cent of its two-wheelers will havefuel injection options. This conversion(from the carburettor alternative) isexpected to be complete by 2015 whenproduction in these three countries willbe over six million units.As for India, Yamaha wrapped up 2011with a little over five lakh units, of whicha third was exported. The company hastargeted 6.4 lakh two-wheelers for 2012where exports will account for 1.9 lakh

units. When it reaches its one-millionmilestone by 2015 (which has alreadybeen made public), exports willconstitute 20 per cent and will head outlargely to Central/South America andAsia.INDIA STRATEGYThe Yamaha strategy for India is to buildits brand presence in 150cc bikes whereit has a market share of 20 per cent. Thevolumes for the future are expected tobe generated from its new 125cc scooterkeeping in mind the growth witnessedin this product segment over the lastfew years.Over the years, Yamaha has struggledto get its India act in place despite thefact that it has been around for over 25years now. Valuable time was lost inputting its house in order after the splitwith the Escorts group. Industryobservers say the company also erredin its product strategy by trying tocompete in the numbers game inmotorcycles. It has since figured out thatits DNA lies in powerful bikes whichfirst drew India customers by the drovesin the 1980s.Scooters could just end up doing thetrick for Yamaha in the coming years asit sets about working towards itstargeted one million units in India.HMSI (Honda Motorcycle & ScooterIndia), TVS Motor Company and Suzukihave seen their gearless scooterbusinesses grow rapidly over the yearsand this will be the best bet for Yamahatoo....

Yamaha to tap India base forbigger global play

The Japanese motorcycle manufacturingcompany Yamaha will invest US$ 150million for establishing a motor cycleplant in Karachi.A business delegation led by seniormanager, Yahama along with othermembers of the company called on theAdvisor to Prime Minster on Industries,Mohammed Basharat Raja.The delegation informed that theinvestment will provide the employmentopportunities for about 45,000 peoplebesides technology transfer for themotorcycle industry.They said that the company will alsoprovide technical education for thepeople which will help in economicdevelopment in the country.The Advisor to Pr ime Mi nisterwelcomed the Japanese investment inthe sector and assured full facilitationand cooperation of the government.He informed th e delegation th atmotorcycle industry has rapid lyflourished in the country during the lastfour years and there was a huge marketof motorc ycles in the c ountry.Raja Basharat said that Pakistan wasproducing about 1.5 million motorcyclesper annum and also exporting to othercountries.A large portion of the local populationwas consist of middle class which havethe power to purchase the motorcycleand due to this reason Pakistan was thebest place in the region for investing inauto-sector.He informed the delegation that moderntechnologies would be introduced formanufacturing energy efficient andenvironment friendly motorcycles tocreate space in the internationalmarket....

Yamaha to invest$150mn inPakistan

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Page 9: Monthly Automark April 2012

Chinese, Korean vehicleassemblers eye big marketshare in next five years

by M. Owais Khan - Exclusive Article Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 17

Chinese vehicle assemblers have notmade deeper inroads like Chinese bikeassemblers while Korean assemblers arealso struggling to carve a niche in amarket dominated by Japanese vehicleassemblers for decades.In bikes consumers had only one costlyoption of world’s leading bike makersproducts -- Honda CD-70cc which isstill a market leader despite presence ofover 50 two wheeler Chinese bikeassemblers at low prices. A major pricedifference between Japanese andChinese bike makers is one of the mainreasons of luring lower income grouppeople to go wild otherwise Honda stillholds a major market share thanks toits permanent buyers in Punjab ruraland urban areas.In bikes one can afford to take risk dueto its low price irrespective assemblers’market share in world markets. In fourwheelers the mind set of people is totallydifferent despite low price as comparedto Japanese assembled vehicles.With a wide price margin a number ofChinese vehicle producers plunged inthe market but hardly anyone provedthreatened to the dominance ofJapanese vehicle assemblers. Peopleknow the reliability and qual ity ofJapanese vehic les whic h ma nycustomers feel that they cannot trustthe Chinese vehicles as they do not enjoyany big presence in world markets.On the contrary, Korean vehicles aremuch superior in terms of quality andreliability but in Pakistan they did notlive up to the expectations of thecustomers. The production of HyundaiShehzore, once a road king few yearsback in light commercial category, hasbeen suspended for months amid itsreport of re-entry in the country. DewanFarooqui Motors, which introducedHyundai Shehzore, also successfullytested Hyundai Santro 1,000cc carwhich started with a bang but endedcheaply either due to mismanagement

of its local partners or because of arrivalof used vehicles like Toyota Vitz, ToyotaPlatz, etc.The popularity graph of Hyundaivehicles is going up in world marketsbut in Pakistan the Korean giant hasunderg one really a tough time.Market is abuzz with reports that DewanFarooqui Motors is all set to resumeproduction of its two popular modelsbut the company is yet to make thishappen practically. The suspension ofShehzore truck has paved the way forgood sale prospects for some Chineseand Korean truck assemblers likeMaster. Light commercial vehicles ofToyota and Suzuki also benefitted fromShehzore’s hard luck.The same local company Dewan Groupalso introduced Kia vehicles but theproduction of almost all cars had alsobeen suspended prior to the fate ofHyundai vehicles.Few years back the country saw thedeparture of most popular truck andmini bus – Mazda of Japan, fromPakistan which was later replaced byDong Feng of China but after production

of few units the Chinese vehicle failedto impress the transporters.A leading Korean commercial vehiclemaker said that both Korean andChinese assemblers will take away majorshare from Japanese assemblers in thenext five years owing to very to very highprices of Japanese vehicles.Monthly AUTOMARK tries to analyzethe fate of existing and new Chinese andKorean four wheelers makers in view ofrising market share of Japanese vehiclemarkers. Many of them are strugglingfor their survival.

General Manager Plant,Karakoram Motors Private

Limited, Mr. IHT Farooqui recallsthat Karakoram Motors is the first

company which started localassembly and manufacturing of

Chinese mini vehicles in Pakistan.In 2006 the company entered into atechnical collaboration with M/sChangan Automobiles of China andst a rt ed lo c a l a sse mb li ng a ndmanufacturing of 800cc mini pick up.This pickup named KALASH is verypopular in Pakistan due to its newattractive design, additional featuresand reasonable price. About 50 per centof this product is localized and we arealso in house manufacturing some sheetmetal par ts like Cargo Box, etc.Recently, he says that KarakoramMotors have introduced some newversions in this product like Flat Bed,Econo Model and Super model also. Thisis a viable project and we are planningto completely indigenize this productwithin next five years.In 2010, Karakoram Motors also enteredinto a technical collaboration with M/sChery Automobile of China for the localmanufacturing and assembling of 800ccChery QQ. All necessary infrastructurelike Welding line, Assembling line andtester line is now completed and the trialproduction of this car is now started.After acquiring the assets of defunct

Huge prices may prove challenging for Japanese vehicles assemblers

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Page 10: Monthly Automark April 2012

Exclusive Article Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 18

Naya Dau r Motors, he says thatKarakoram Motors had invested asizeable amount on this old plant, a newCED Paint shop was erected, productionfacilities were revamped and for localdevelopment vendors were paid heavyadvances.Today about 7,000 vehicles are runningon road which include local assembledand imported Changan vehicles. “Wehave very ambitious plans for furtherdevelopment of Kalash and within nextfive years this vehicles will be totallyindigenized,” he says adding“our future project of Chery QQ is alsoin advance stage and we plan to startcommercial production by Septemberthis year.”Mr Farooqui says his company hasalready applied to the EngineeringDevelopment Board (EDB) for projectapproval few months back. Chery QQ isa n exc lusi ve product of CheryAutomobiles of China and has nothingto do with Chevrolet.“We have entered into agreement withChery with clean hands and we have nodispute with Nexus Automobile orothers for the local assembly of this carin Pakistan,” he says. This car wasinitially imported by Pakistan CheryAutomobiles in CBU but later Cheryterminated their agreements withPakistan Chery and signed an exclusivede al ership a nd ma nufa c tur in gagreement with Karakoram Motors.When asked whether the EDB had anyobjection on Cherry QQ ca, he says noadding that EDB will put our case innext AIDC meeting for approval.On future of Chinese vehicles inPakistan, he claims Chinese vehicles arenow getting popular in the country dueto price increase by the Japaneseassemblers.He says Japanese vehicles had a verylong history in Pakistan, but Chinesevehicles are also getting proper share int he market. In China very fewmanufacturers have RHD vehiclesexcept Light Commercial vehicles whichare imported in the Asian countries. Thequality of the Chinese vehicles are nowmuch improved and if the local partnergives proper attention towards afterSales service then the future ispromising.He says the proposed new entrant policyis not attracting new entrants due tocomplexity of the policy. One windowoperation and clear policy is requiredto implement this excellent policy.

Chief Executive Officer SilverSeal Anwar Iqbal says that his

company is importing 15seater commercial vans fromChina in direct competition

with two other players.“We usually import 30 vans per monthin which 10-15 vans are sold,” he saidadding that the customs duty on importof van over 10 person seating capacityis 20 per cent as compared to 65 percent customs duty on import of 10seating capacity vehicles.The product name is Hamza and is beingdistributed through Sherwani Motors.Anwar Iqbal said that there is huge pricedifference in Japanese vans either madein Pakistan or imported by the localassemblers. For example, he said thatthe 15 seater vans being imported bythree companies carry price tag betweenRs 1.8-1.9 million as compared to 2.8-3 .0 mi lli on of Ja pa nese v ans.He said time is not far when Chinesevehicles will hold a major share inJapanese dominated market due to bigprice difference.

In March 2012, Al-HAJ FAWMotors Private Limited, a

leading name in automobileindustry, launched two lightvehicles i.e. FAW X-PV and

FAW Carrier in Pakistan withlatest technology andaffordable prices. The

Company also announced toassemble FAW light vehicles.Addressing the launching/unveilingceremony, Mr. Hilal Khan Afridi ChiefExecutive officer (CEO) of A-HAJ FAWMotors said the company has investedRs one billion to set up an assemblingplant to start production of new vehicles.AL-HAJ FAW has recently completedits assembly plant located at mainnational highway, Zulfiqarabad, Karachiby its own resources.A new production line has been setupin the Al-Haj FAW plant, locatedZulfiqarabad assembling plant toassemble these two new light vehicles.FAW X-PV is 1,000 CC mini van with aseating capacity of seven plus one (7+1),while other one FAW Carrier is also1.000 CC mini pickup for loadingpurpose and with a loading capacity ofone ton, which is much higher than mostother vehicles of its category.As per quality, these new additions haveEFI technology and Euro4 emission

standards, which are still not availablein the Japanese small vehicles beingassembled in the Pakistan. These twosmall vehicles are a new induction inthe Pakistan’s automobile industryaimed to provide comfortable andaffordable transport to the generalmasses, CEO said.AL-HAJ FAW MOTORS has beena ctively involved i n the HeavyCommercial Market (CBU & SKD) since2006 and has been continuouslyincreasing its market share and nowstands among the market leaders in itsclass.“Our Group previously was onlyassembling heavy vehicles, now hasdecided to start production of smallvehicles as well. We are the secondlargest heavy vehicle provider inPakistan with 40 percent market share”,Hilal Afirid claimed.Under this project Chinese automobiletechnologies will also be transferred intoPakistan in the next one and half year,he said.The plant has a capacity of 11,000 unitsper annum which can be extendeda cc ordi ng t o the requirement.“We plan to further penetrate in theJapanese dominated automobile marketthrough introducing our product line inLCV and Passenger car categories”, hesaid.

“Our vision is to introduceand capture significant share

of the local automotivemarket by providing quality

Chinese vehicles to thecustomer with full back up

support through nationwide3S dealer network”, saidFarhan Hafiz, Marketing

Manager Al-Haj FAW Motors.“Our focus is to change people’s mindsetabout Chinese automobile in Pakistanimarket by providing them quality,durability, after sales support, hencegiving them the best value against theirmoney,” he added.Talking about the previous Chineseexperience in the local market, FarhanHafiz said that there are many reasonsfor their failure, among them somemajor reasons were, poor productselection, poor product quality, poorback-up support and most importantlyno proper support from the Principal.Hence our focus should be to avoid allthese mistakes....

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Page 11: Monthly Automark April 2012

General Tyres, the leadingtyre manufacturer ofPakistan, is investing

Rs500 million inexpanding its production

facility and has startedmanufacturing tyres forCNG rickshaws. It also

plans to bring motorcycletyres into the market by the

end of the fiscal year inJune.

“Despite unfavourable businessconditions, General Tyres has beengradually investing in its manufacturingfacilities,” Chief Executive MohammadShahid Hussain said while talking tomedia on the sidelines of a pressconference on held last month. “Today,business conditions are better and areimproving with every passing month.”Speaking to the media, Hussain said thecompany wanted to capitalise on thefast growing market of compressednatural gas (CNG) rickshaws andmotorcycles in the country.This year, Pakistan is expected toproduce 1.8 million units of motorcycleswhile 140,000 CNG rickshaws arealready on roads. “Fortunately, there isno smuggling problem in the motorcycletyre category,” he pointed out.Replying to a question on opening oftrade with India, Hussain said Pakistanshould raise the issue of non-tariffbarriers with the Indian government,which create hurdles in the way ofexports. On the other hand, “our marketis open for Indian exporters owing torelatively less intrusive laws andrestrictions.”Hussain pointed to the problem of

under-invoicing and smuggling of tyres,which have severely hit the domesticmanufacturers.“Though the government has tightenedup on smuggling and under-invoicing,st i ll t here i s muc h room forimprovement,” he said, adding billionsof rupees could be saved by improvingthe customs c learanc e syst em.If the cost of a Chinese tyre was around$2 40-$ 245, some traders wereimporting the same by declaring a valueof $130-$140, causing severe losses tothe national exchequer. And, then theygave all taxes on this lower import price,he said. Pakistan imports some 60% oftyres from China.

“Tax evasion actually helps tyreimporters to sell these at low

prices, making it almostimpossible for us to competewith them,” Hussain added.He, however, believed that

Pakistan had the potential to bea big tyre exporter, provided the

government created a levelplaying field for the

manufacturers and controlledunder-invoicing and smuggling.

General Tyres manufactures tyres for

cars, light trucks and tractors. Some60% of its tyres are sold to the originalequipment manufacturers (OEMs) –carmakers – in th e country. Thecompany also exports its products toAfghanistan, Yemen and Syria and isexplor ing new export markets.

Introduction:The General Tyre and Rubber Companyof Pakistan Limited (Gentipak) isPakistan‘s premier industry. It wasestablished in 1963 by General Tire USAand has been in production since 1964.Gentipak has a Technical ServicesAgreement (TSA) with CONTINENTALA G (G e rma ny ’ s l a rg e st t y remanufacturer) which enables it toproduce tyres of “GENERAL” brand andprovides the latest technology forproduct io n o f t yres ba sed onContinental’s, R&D.The Plant and the Offices, are locatedin suburb of Karachi. Initial productioncapacity was only 120,000 tyres perannum but is now around 2,000,000tyres per annum. Our plant is constantlyupgraded and is equipped with the mostm o d e rn t e c h n o l o g y i n t y r emanufacturing.

Automotive Sector - Update

www.automark.pk | April-2012 | Page 19

General Tyres to startmanufacturing bike tyresThis year, Pakistan is expected to produce 1.8 millionunits of motorcycles while 140,000 CNG rickshaws

are already on roads. “Fortunately, there is no smugglingproblem in the motorcycle tyre category,” he pointed out.

Monthly AutoMark Magazine

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Page 12: Monthly Automark April 2012

Exclusive Articel by S.M. Naeem Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 20

The automobile Industry directlyinfluences the economics of any countryaround the world. And due to itsimportance the automobile Industry hasacquired the status of a key sector of theeconomy for all major countries of theworld.In Pakistan too, since 1953, when thefirst assembly plant of General MotorsLtd was established, this sector hasreceived the special attentions of theGovernment, and it was alwaysprotected by Government by many tariffand non tariff based measures, and itwas always the desire of the Governmentthat this sector should play an importantrole to boost the economy of the country.The automobile Parts industry inPakistan, in real terms was establishedin early 80s, and the period of 20 years(1985-2005), which is considered as a“PREPARATION PHASE” had a fullprotection by the Government byimplementation of compulsory localcontent conditions or the DELETIONPROGRAMMES . And according to areport of Ministry of Industries theeconomic objectives of that time wereachieved to a large extent.The second phase “DEVELOPMENTPHASE-2005-2012” started with a newenvironment by abolishing the deletionprogramme and from 1st July 2006, theTBS was introduced. During this“Development Phase”, the local Industryhas been protected by higher rate ofimport duties on all parts notmanufactured in Pakistan and anadditional RD of 15% had been leviedon all the parts manufactured inPakistan. And according to TBS, theimport duties were to be reduced everyyear, to bring it to normal level.The third phase “The Global Era”starting from 2012, in which theAutomobile Industry of Pakistan has toreposition itself to become a globalplayer and is expected to achieve all thescales of progress as from its PreparationPhase, and completion of DevelopmentPhase, which is a period of over 25 years

of full support and protection by theGovernment’s Non-Tariff and Tariffbased policies, it is bound to deliver theresults to the nation.It will not be wrong to say that due tothe tariff based protections, if on onehand this policy had to play a vital rolein the development of the AutomotiveIndustry in Pakistan, but, on the otherhand it should also be admitted that thenegative impact of this policy has madedamages to the national economy. Thehigher rates of import duties not onlyencourag ed smug gling but a lsoencouraged the other illegal activitiesin the trade. And it had discouraged thelegitimate business, but also the nationalexchequer suffered with heavy losses byincrease in smuggling and use of illegalchannels.Another aspect of the Automobile Partsindustry to be considered, is theeconomic scale of production quantities.To be competitive in terms of price andquality, every industry needs certainvolume of production, which in termsof quantity, unfortunately, from thepresent O.E. business is still noteconomical, and in aftermarket segmentof the business, the problem is moresevere as due to a large number ofmodels running in the country, theaf termarket business of the localmanufacturers, except for the items theyalready manufacture for O.E. use, cannotbe competitive and feasible. And it isalso a fact that OE quality is always muchhigher in cost than the aftermarket

required quality, and as there is noguarantee/ warranty involved foraftermarket parts, the OE parts are notcompetitive, as compared to aftermarketparts. So OE parts are not the firstpreference of the users. Therefore, byapplying tariff barriers on the import ofaftermarket parts, the users are deprivedof g et ting the standard qualityaftermarket products at cheaper prices.The users who are already under heavyfinancial burdens of higher costs due tocontinuous devaluation of the currencyand increase in costs of Petrol, CNG,and Electricity, do not mind to buy theparts imported through illegal channelsat lower prices. Thus considering allthese factors involved in AutomobileTrade and Industry, continuation of highrates of custom duties are no moreadviseable for the trade, industry,consumer and also the nationalexchequer and economy of the country.The Government is advised to lower therates of import duties on the commercialimports of Automotive Parts, which willreduce the burden of Transporters andconsumers, Curb the smuggling enhancethe legitimate business.Thus, with the starting of “Global Era”of Automotive Industry in Pakistan from2012, in which the industry is going tocompete in the international market, itis also time to review the rates of customduties in Pakistan, and tariff baseprotection should be abolished and theimport duties in Pakistan should bebrought down to the minimum possiblelevel. And this will not only encouragethe legitimate business activities in thecountry, but also will increase the Govt.revenues significantly.

About writer:S. M. NaeemChairmanFB R/C ust oms S ub -Co mmit t ee,Pakistan Automobile SpareParts Importers and DealersAssociation.

The AutomotiveParts Tradein Pakistan

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Page 13: Monthly Automark April 2012

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

www.automark.pk | April-2012 | Page 21

We all like to enjoy a hot summer onthe lake or beach to cool us down duringa heat wave. Our bodies can bear up toa certain temperatures before we runthe risk of a high fever or a heat strokewhich may cause serious damage to theorgans in our body. The engine of a caralso has a limit to high temperaturesbefore it runs into a melting or seized-up stage. The cooling system is asnecessary to the engine as sweating isto our bodies to get rid of the heat.Your vehicle has an internal combustionengine. That means when air, fuel andfire (ignition) enters into the engine andcreate a blast in the cylinders, thetemperature inside the engine can reachas high as 4500°F (2500°C). Now if youadd outside temperature up to 50°Cespecially in the hot climatic zone ofPakistan, with the combinations, it willtake only half that heat to melt iron andyour engine would be a useless lump ofmetal in about 20 minutes. Boilingcoolant out of the engine can burn yourskin in seconds, or your car’s hood(bonnet) can reach to an extremetemperature – hot enough to warm-upa pizza or cook an egg omelette or to flipwell-done burgers in a matter ofseconds. In fact, the cooling system ona car driving down th e highwaydissipates enough hot air to heat up abig bungalow in the winter.

Purpose of the CoolingSystemThe cooling system is your engine’s lifesaver. The purpose of the cooling systemis to do three things. The first is tomaintain the highest and most efficient

operating temperature within theengine. The second is to remove excessheat from the engine. The third is tobring the engine up to an operatingtemperature as quickly as possible. Ifthe engine is not at the highest operatingtemperature, it will not run efficiently.Fuel mileage will decrease and wear onthe engine components will increase. Italso support automatic transmission asoil cooler and provides cabin heating forcomfortable driving in the winter season.

Heat Removal ProcessAlthough engines have improved a lotthey are still not very efficient when itcomes to turning chemical energy intomechanical power. Within the gasolineor diesel engine, energy from the fuel is

converted to power for moving thevehicle. However, not all energy isconverted to power. When 100% of theenergy is going into the engine, about25% is used to push the vehicle. About9% of the heat generated by the fuel islost through radiation and 33% is sentout through the exhaust system. Theremaining 33% must be removed by thecooling system. If this is done correctly,the temperature of the vehicle will be atits highest efficiency. The engine runsbest when its coolant is about 200°F(93°C), same as you will feel active whenyour body temperature is about 37°C or98.6°F. If the engine temperature is toohigh, various problems will occur.

These include:1. Overheating of lubricating oil –This will result in the lubricating oilbreaking down.2. Overheating of the parts – Thismay cause loss of strength of the metal.3. Excessive stresses betweenengine parts – This may causeincreases in friction, which may causeexcessive wear.If the engine temperature is too low,various problems will occur. Theseinclude:1.Poorer fuel mileage –Thecombustion process will be less efficient.2.Increases in carbon build up –As the fuel enters the engine, it willcondense and cause excessive build upon the intake valves.3.Increase in Varnish and sludgewithin the lubrication system–Cooler engines enhance the build-up

The Hell…Under YourCar’s Hood!

Beat the Heat with the Tender Treat

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Exclusive Article Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 22

of sludge and varnish.4.Loss of power. If the combustionprocess is less efficient, the power outputwill be reduced and fuel economy willsuffer.5. Fuel not being burnedcompletely –This will cause fuel todilute the oil and cause excessive enginewear.

How Cooling SystemsWorkThe water pump sends the fluid into theengine block, where it makes its waythrough passages in the engine aroundthe cylinders. Then it returns throughthe cylinder head of the engine. Thethermostat is located where the fluidleaves the engine. The plumbing aroundthe thermostat sends the fluid back tothe pump directly if the thermostat isclosed. If it is open, the fluid goesthrough the radiator first and then backto the pump.There is also a separate circuit for theheating system. This circuit takes fluidfrom the cylinder head and passes itthrough a heater core and then back tothe pump.On cars with automatic transmissions,there is a separate circuit for cooling thetransmission fluid built into the radiator.The oil from the transmission is pumpedby the transmission through a secondheat exchanger inside the radiator.The main components of themodern cooling system are:

Water PumpThe water pump is a simple centrifugalpump driven by a belt connected to thecrankshaft of the engine. The pumpcirculates fluid whenever the engine isrunning. The fluid leaving the pumpflows first through the engine block andcylinder head, then into the radiator andfinally back to the pump.RadiatorA radiator is a type of heat exchanger.It is designed to transfer heat from thehot coolant that flows through it to theair, blown through it by the fan.Radiators usually have a tank on eachside or on top and bottom, and insidethe tank is a transmission cooler. Thetransmission cooler is like a radiatorwithin a radiator, except instead ofexchanging heat with the air, the oilexchanges heat with the coolant in theradiator.

Radiator Cap

The radiator cap actually increases theboiling point of your coolant by about45° F (25° C). How does this simple capdo this? The same way a pressure cookerincreases the boiling temperature ofwater for fast cooking. Never add coolantthrough this cap when hot, always addinto Reservoir tank to avoid injury.

Reservoir TankThis tank or bottle is located near theradiator and connected with a tube. Thepurpose of this coolant recovery systemis to store the overflow coolant andreturn to radiator when required.

Fluid/Coolant/AntifreezeEngine operates in a wide variety oftemperatures, from way below freezing-50° C to well over 100° F (38° C). Sowhatever fluid is used to cool the enginehas to have a very low freezing point, ahigh boiling point, and it has to have thecapacity to hold a lot of heat.Water is one of the most effective fluidsfor holding heat, but water freezes atvery low temperature and boil over atvery high a temperature to be used incar engines. The fluid that most cars useis a mixture of water and ethylene glycol(C2H6O2), also known as antifreeze. Byadding ethylene glycol to water, theboiling and freezing points are improvedsignificantly.

ThermostatJust as an athlete needs to warm upwhen they begin to exercise, your car'sengine needs to warm up when it is firststarted. The thermostat is almost alwaysplaced between the engine and theradiator as the coolant flows. Thethermostat's main job is to allow theengine to heat up quickly, and then tokeep t he engi ne a t a c onst anttemperature.

FanLike the thermostat, the cooling fan has

to be controlled so that it allows theengi ne to ma intai n a const anttemperature. Front-wheel drive carshave electric fans because the engine isusually mounted transversely, meaningthe output of the engine points towardthe side of the car. Rear-wheel drive carswith longitudinal engines usually haveengine-driven cooling fans.

OvercomingOverheatingIf your engine coolant temperaturegauge indicates very high or enginecoolant warning light comes on dash,this is sure indication that your engineis overheating. You can take first stepto turn off A/C (if in use) open allwindows and turn the heater with thefan at full blast. This will dissipate theengine heat through heater and maydrop temperature, you may feeldiscomfort in summer but it may saveyour engine life from a serious damage.However if you experience a loss ofpower, or if you hear a loud knockingor pining noise with the steam underthe hood all these symptoms are sureindication that engine has probablyoverheated.

Beat the heat with thefollowing treat• Pull safely off the road, stop thevehic le an d t urn on youremergency flashers. Put thetransmission in “P” (automatic)or neutral (manual) and apply theparking brake.• If coolant or stream is boiling outof the radiator or reservoir, stopthe engine. Wait until the steamsubsides before opening the hood.If there is no coolant boiling overor steam, leave the engine runningand make sure the cooling fan isoperating. If it is not turn-off theignition.To help avoid personal injury, keep thehood closed until there is no steam.Escaping steam or coolant is a sign ofvery high temperature.• Visually check to see if the engine drivebelt (Water pump belt) is broken orloose. Look for obvious coolant externalleaks from the radiator, hoses, and underthe vehicle. However, note that waterdraining from the A/C is normal if it hasbeen used.When the engine is running, keep handsand clothing away from the moving fan

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Exclusive Article Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 23

and engine drive belts• If the engine drive belt is broken orthe coolant is leaking, stop the engineimmediately and call for breakdownassistance to tow to workshop.• If the engine drive belt is O.K. andthere are no obvious leaks, check thecoolant reservoir. If it is low or dry, addcoolant (you may add water just to getto the nearest fuel station to replace withproper coolant) to the reservoir whileengine is running. Fill about half full.Do not attempt to remove the radiatorcap when the engine and radiator arehot. Serious injury could result fromscalding hot fluid and steam blown outunder pressure.After the engine coolant temperaturehas cooled to normal, again check thecoolant level in the reservoir. Ifnecessary, bring it up to half full again.Serious coolant loose indicates leak inthe system. While you are checkingunder the hood make sure the enginehas enough lubrication oil, low or noengine oil may cause overheating. It isrecommended to keep an extra jug ofwater or coolant and oil for suchemergencies. Avoid driving and call forbreakdown assistance and tow yourvehicle to a nearest dealer/workshop.Common ProblemsLet's look at the common problems carsha ve wit h the cooli ng sy stem.• LOSS OF COOLANT OR WATER INTHE SYSTEM DUE TO LEAK OREXCESSIVE EVAPORATION is theprime cause of overheating.• Broken hose: Hoses wear out and canleak. Once the coolant has left the systemit can no longer cool the engine and itoverheats.• Broken water pump belt: Thewater pump is driven by the enginethrough a belt. If the belt breaks, thewater pump can not turn and coolantwill not be circulated through the engine.This will also lead to engine overheating.• Electric fan failed: Most cars areequipped with an electrical fan mountedbehind the radiator to draw air forcooling purpose, check to see, if fuse orloose connections is causing fan to stopworking.• Faulty radiator cap: The radiatorcap is designed to hold a certain pressurein the coolant system. Most caps hold 8- 15 PSI. This pressure raises the pointin which the coolant will boil andmaintains a stable system. If your capdoes not hold pressure, then the enginecould overheat on hot days since the

system never becomes pressurized.• Water pump failure: Most commonlyyou will hear a screeching noise and willbe able to see coolant leaking from thefront of the pump or under the car. Earlysigns are small spots of coolant underthe car after being parked overnight anda strong coolant odour while driving.• Head gasket leaked: Is there a largeamount of white smoke flowing out ofyour exhaust? That could cause by theleaky head gasket. The head gasket sealsthe cylinder head to the engine blockand also seals the coolant passages.When this gasket fails coolant can enterthe cylinder and it will be turned tovapour as the engine fires. Head gasketsmost often fail after the engine hasexperienced an overheating situation.When super hot, the cylinder head canwarp and allow the gasket to fail.

PreventiveMaintenanceOver heating is the major cause of theengine failure, it’s like having high fever.The engine cannot go very long withoutbeing cooled. If the cooling system failsfor any reason, the engine will soonreach a temperature where the pistonswill actually weld themselves to thecylinder wall. Once this happens, youthrow the engine out and replace it witha new one.Since the cooling system controls thetemperature of the engine, it is highlyimportant that the system be regularlyinspected and serviced.• Keeps an eye on a temperaturegauge or warning light whiledriving.• Check all belts and hosesregularly. Check coolant strength forwinter driving. Always top up with

antifreeze not plain water. (at oil changeis a good time)• Look out for coolant leaks underneaththe car, they could be signs of troubleto come, except A/C drain( if it has beenuse)• Check and clean radiator air fins forfree air flow if blocked.• Change your coolant every 2 - 3 yearsor depending on your car manufacturer’srecommendations.• Inspect your radiator cap fordeterioration of the rubber seal. Replaceif you think it is worn. It’s a muchcheaper solution.• Have your coolant system flushed every2-3 years. It gets all the corrosion whichhas built up out of the system.Remember, engine overheating is themajor cause of your car breakdown onthe road especially in the hot summerin most parts of Pakistan. Proper coolingsystem maintenance not only saves youmoney but it also keeps you safe fromunexpected breakdowns. DRIVE SAFEand have a fun summer… Safetyalways starts with you!

This exclusive article on Tires has beenwritten by Mohammad Shahzad S.A.E.,D.M.P(Automotive Eng ineer/Doctor ofMotors) He is a Senior Group Managerfor Customer Management Operationswith The Brimell Group, Brimell Toyotaand Brimell Scion in Toronto, Canada.Free advice for Automark readers; pleasedo not hesitate to contact him ats h a h @ b r i m e l l t o y o t a . c o m o [email protected]

Next article: Next article: 101 ways toachieve better fuel mileage.

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Page 16: Monthly Automark April 2012

Energy & Automotive Sector - Update Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 24

The government is considering liftingthe ban on company fitted compressednatural gas (CNG) cylinders and kits inthe locally manufactured vehicles afterdiplomatic missions from Japan, Italyand Argentina objected to them.This has been revealed in a Ministry ofIndustries’ ‘secret’ letter to theforthcoming meeting of EconomicCoordination Committee (ECC) of theCabinet to be convened this week.Sources said this ban would be reviewed,keeping in view the objections raised bythe ministry in th is connection.The letter spells out the objections inconcrete terms, arguing that theMinistry of Petroleum and NaturalResources initiated a summary for ECCof the Cabinet regarding ban on CNGkits and their import.The diplomatic missions from Japan,Italy and Argentina approached thisministry and voiced concerns that hugeinvestments made by the companiesmanufacturing CNG kits such as Landi,Renzo/Lovato, BRC, Tesla etcetera, aswell as vehicle assemblers like ToyotaIndus Motors and Pak Suzuki are atstake.The missions said the decision will notonly result in huge financial losses tothese companies but may also sendadverse signals to future prospectiveinvestors in the automotive sector.The use of CNG was encouraged as aconscious policy decis ion of thegovernment for being an environment-friendly fuel during the 1990s. As ar es u l t , h ug e i n v e s t me n t s i ninfrastructure development have beenmade by the aforesaid companies, aswell as by local investors and theconsumers.Furthermore, the Ministry of Industrieshas pointed out that the Ministry ofPetroleum and Natural Resourcesviolated the Rules of Business, 1973, by

not submitting its views and commentson the draft summary in this connection,sent down to it [and Federal Board ofRevenue (FBR)], despite reminders.The FBR, however, agreed to impose 10percent import duty on CNG conversionkits and cylinders. It says that impositionof such duty would discourage use ofenvironment-fr iendly and causeescalation of prices of CNG-fuelled carsin use of the lower-income strata ofsociety.It proposes that ban on company-fittedCNG cylinders and kits in local lymanufactured cars may be lifted. Itpleads that import of CNG cylinders,conversion kits and their parts beallowed.

It is pertinent to mention that presentlyaround 3 million CNG vehicles includingpublic transport vehicles, are plying onroads out of which around 1.6 millionvehicles are private vehicles (630,000cars) that have factory-fitted CNGcylinders and kits.According to Pakistan Energy Book2010, the share of CNG consumed intransport sector is only 7.7 percent ofthe entire consumption of natural gasin Pakistan.Moreover, private vehicles and autorickshaws consume roughly 3.5 percent,while the vehicles with factory-fittedCNG kits and cylinders consume lessthan 1.3 percent of the total gasconsumption.Furthermore, CNG consumption bycommercial transport vehicles is in thevicinity of 60 percent of the total whileprivate vehicles consume not more than40 percent.CNG kit manufacturing companies areexporting approximately 60,000 kits toother countries and earn $6 millionforeign exchange a year. Moreover, asroughly 50 percent of the componentsof CNG kits are being manufacturedlocally, the vendor industry will also faceadverse impact on employment andsuffer financial losses.Besides, a complete ban on installationof CNG cylinders and kits in private cars,including taxi and auto rickshaws willseverely affect people from lower incomestrata of society, who will be compelledto abandon the use their vehicles due tothe relatively higher cost of alternatefuels like petrol and diesel.Hence a paradigm shift in the policymay result in decrease in foreignexchange earnings and discouragefurther potential foreign investment inthe automotive sector, besides invokingadverse reaction from the masses.......

Govt likely to lift ban oncompany-fitted CNG

cylindersThe diplomatic missions from Japan, Italy and Argentina approached this

ministry and voiced concerns that huge investments made by the companiesmanufacturing CNG kits such as Landi, Renzo/Lovato, BRC, Tesla etcetera,

as well as vehicle assemblers like Toyota Indus Motors and Pak Suzuki are at stake.

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Page 17: Monthly Automark April 2012

Automotive Sector - Review

www.automark.pk | April-2012 | Page 29

HISTORY:It was in early 50s that Pakistan saw itsfirst vehicle in the form of Bedford truck.At that t ime the servic es a ndmanufacturing sector had almost nocontribution towards the economy asPakistan's economy was completelyagrarian and regularised. After de-regularisation the industry took to thepath of growth.Major developments in the sector camein mid 80's and early 90 when majorJapanese car makers entered thePakistani market.Over the years thesector saw many ups and downs andcame out to become one of the biggestengineering sectors in Pakistan. Withthe arrival of Japanese car makers,Pakistan saw technology, job creationand investment coming into Country.The Japanese cars being less costly andfuel efficient are in majorities' reach andtherefore have dominated the Pakistanimarket.At present the auto sector of Pakistanis manufacturing/assembling all kindsof vehicles from trucks, buses andtractors, to passenger cars and twowheelers.A sizeable portion of the auto industryconsists of the vendors and OEM's, theallied industry developed in line withthe main auto industry. The significanceof auto sector can be seen by the factthat it is contributing more than fivepercent to the national exchequer andis directly employing more than200,000 people.

CURRENT SITUATIONAND THREATS:The auto sector faced a big blow in2008-09 when the world saw its biggestfinancial crisis, sales fell to 82,844 units.However Pakistani auto and allied sector

quickly took to the path of recovery.The good agriculture support prices setup by the government and the highremittances spurred in growth in theautomobile industry.However in two years' span the industrygrew at an average growth rate of 26.5percent and sales reached a level of127,944 units in FY11. In the first eightmonths of FY12 the sales for passengercars stood at 98,252 units. The biggestengineering sector of Pakistan howeverhas to face a lot of problems.The debilitating power crisis is thebiggest concern of manufacturing sector.In addition, rising fuel price has pushedup the cost of production.The devaluation of rupee against Yen,which has spiked up the input costs andforeign exchange risk, is also of theutmost concern for the sector, becauseof its dependency on the import ofcritical parts from Thailand, Japan, andKorea etc.Apart from these costs auto-sector alsohas to face the inconsistent andi rrati onal g overnment pol ici es.Furthermore, overnight changes, lackof long term vision and thoroughresearch before policy division andimprovisation is also impeding growthof the sector.In addition to the unfavourable importpolicies and almost no efforts by thegovernment to stop the influx ofsmuggled auto parts, which were alreadyputting the sector under immensepressure, now the industry, especiallyt he allied sector can face sti ffcompetition from the India due to theMFN status.Secondly the favourable new entrantpolicy is threatening the sector, as theexisting players fear that Chinesemanufacturers would come in and take

a sizable portion of the market.

SECTOR WISEPERFORMANCEPASSENGER CARSALES: The passenger car segmentwent against all odds in 8MFY12 andmanaged to grow by 17 percent ascompared to the same period last year.The ever rising remittances andpurchases made under the yellow cabscheme were the main contributors tothe spike in demand. Up till now the1000cc category has been leading thegrowth in FY12, with a growth rate of35 percent over the same period lastyear.The main growth driver within thiscategory is Suzuki's Cultus, whichmanaged to grow by 38 percent.Following this segment was the "below1000cc category" with a growth rate of29 percent.

The only shining star in the1300cc and above segmentwas Suzuki's Swift which

has gained immensecustomer confidence and

managed to grow by 86percent in 8FY12 over the

same period last year.Company wise Suzuki led the growthwith a rate of 35 percent in 8MFY12,over the same period last year.The growth however, includes thepurchases made under the yellow cabscheme of the Punjab government.Over the same period Indus motors grewat a rate of four percent. FY12 was themost miserable year for Honda, firstHonda's Japan plant was shut down dueto tsunami and then Honda's Thailandplant was shut down due to flooding......

Automobile sector ofPakistan

The debilitating power crisis is the biggest concern of manufacturingsector. In addition, rising fuel price has pushed up the cost of production.

The devaluation of rupee against Yen, which has spiked up the inputcosts and foreign exchange risk, is also of the utmost concern for thesector, because of its dependency on the import of critical parts from

Thailand, Japan, and Korea etc.

Monthly AutoMark Magazine

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Automotive Sector - Update

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The unavailability of components whichHonda Pakistan procures from overseasplants resulted in three months ofcomplete suspension in Honda Pakistan.

MOTORCYCLES ANDT HR E E - WH E E L E RSALES: The motorcycle and three-wheeler segment grew at a steady rateof roughly five percent in 8MFY12, overthe same period last year.A total of 551,677 units were sold in the8MFY12, out of which 70 percent of thesales were made by Honda Atlas.During the period under review three-wheeler also witnessed healthy growth,leading the rickshaw category was the"Qinqqi three wheeler" which grew by50 percent in 8MFY12, compared to theprevious year.The affect of goodrural/farm incomes is reflected in thesales of two and three wheelers category.Earlier, while talking to BR research anindustry member said that "majority ofthe demand for motorbikes comes fromrural areas, and the primary reason whythe b ike manufa ct urers didn'texperienced a slowdown during the

recent financial slowdown was thehigher support prices." He added, "thehigher support prices are and wouldcontinue to benefit the two wheelersindust ry in the c omi ng time".Hence, the affect of better rural/farmincomes would be reflected in the salesof two and three wheelers category.Another positive sign for the industry isthe recent upwards revision of wheatsupport prices yet the higher input costs(urea, DAP) are a ruling threat for theindustry.TRACTORS FY12 has been the mostturbulent year ever in the history oftractor industry.The total tractor sales in the 8MFY12have been roughly 30,000 units, this isa 52 percent decline compared to the45,500 units sold in the same periodlast year.The decline in sales is attributed to theunclear tax policy of the government.Analysis shows that the decline did notresult due to the imposition of sales tax.In addition according to industrysources the tractor manufacturers sawa quick decline in demand when in June

the President of Pakistan announcedthat farmers with landholding of lessthan 12.5 acres would be exempted frompayment of sales tax.Sources tell that a committee wasformed to look into this matter.The sales in March 2011 when this taxwas imposed were 5,032 units but inJul y (mont h a ft er pres iden t'sannouncement) 1,036 units were soldas people antic ipat ed c ompleteelimination of the sales tax.CONCLUSION Despite quick recovery,serious efforts are needed to bring theauto sector to the pre-recessionary level.Special revision is needed on the usedvehicles import policies, and the newentrant policy.The government should support the newentrants but not at the expense of theexisting players.If these i ssues are taken intoconsideration with the consultation ofall the stakeholders then the auto sectorwould surely come back to the pre-recessionary level.

Monthly AutoMark Magazine

The government has suffered a loss ofover Rs10 billion in the past six monthson account of Customs duty loss byallowing import of used cars underspecial regime as over 35,000 vehicleshave been shipped into Pakistan duringlast 12 months. Besides, the automotivepartsvending industry has lost anestimated Rs25-27 billion in sales, asexpected jump in sale of locallyassembled new cars was hindered bythe arrival of used cars.This was observed by the Chairman ofPakistan Association of AutomotiveParts and Accessories Manufacturers(PAAPAM) and Business Forum ofPunjab in a meeting held here on Fridayto discuss the repercussions of unbridleddumping of used cars in the country. Hesaid the local production of cars andLCV’s have registered a massivereduction of 22000-25000 owing toimport of used cars in huge volumes,also hurting the domestic auto partsvending industry by a massive amountof Rs27 billion.He said that giving the CustomsDepartment discretion, to further reduce

applicable duties by up to 60 per centdepreciation, has literal ly allowedimports of used cars free into Pakistan.With double digit interest rates,unpr ec ed en te d e xc h a ng e ra tedepreciation and unavailability of gasand electricity, the government mustintervene t o ensure that loc alengineering units do not shut down, hesaid.Now precious foreign exchange will haveto be wasted on import of spare partsfor these used vehicles, which will alsocause a loss to the exchequer to the tuneof $50 million only in one year, heestimated. Instead of giving attentionto the core issue of curtailing inflationarytrend eng ulfing resources a ndendangering national integrity, thegovernment is allowing import of eachand everything into Pakistan tojeopardize localindustry, he said.“Hundreds of components such as wheelrims, tyres, batteries, radiators, mufflers,wire harness, instrument panels,steering wheels, air conditioners,sunvisors, other sheet metal parts andplastic parts, which are produced by

local vendors, will now be imported,”he said. He said that the vendors weredirectly providing jobs to almost200,000 skilled workers (plus over 2million indirect work force), who fearedlosing jobs if imports of used vehiclesar e continued in high numbers.Munir K. Bana, Vice Chairman ofPAAPAM, added that the situation wasgetting out of control as allowing largevariants of models coming into Pakistanwo ul d surely al so enta il hugeexpenditure of foreign exchange onspare parts imports. He said that theworst part is that every vehicle importedis also a lost opportunity for oureconomy to create employment. We areestimating a loss of over 30,000 jobsthat could have been created, he pointedout.On rising prices of locally assembledcars, Bana said that the best way ofreducing car prices is to increase levelof local ization. He emphasized tothegovernment to implement AutoIndustry Development Program (AIDP)in letter and spirit to achieve the benefitsof cost reduction.....

Govt suffers loss of over Rs10bin six months

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By M.Yousuf Abbas Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 35

"The difference between the impossibleand the possible lies in a person'sdetermination."“A dream doesn't become reality throughmagic; it takes sacrifices, determinationand hard work.” said by the team whoare going to make PAKISTAN stand ona great international platform inEUROPE this year.The project, SOLAR CAR, is thebrainchild of Team CLAPTRIX,a group of 10 students —MuhammadYousuf Abbas , Danish MuhammadSaleem , Faaiz baqer, Murtaza ahmed ,Ali Siddique, Akif jawed, ArsalanUsmani, Fahad ur rehman, Umair &Adilnadeem of NED University ofEngineering and Technology — whohave spent 4 months and Rs. 400,000on the project so far, said by themarketing manager of the team.Last year some of the blessed studentsof this brilliant team from NED-UEThad achieved a target to makeP A K I S T A N s t a n d o n a nI NTERN ATI ONAL pla tfo rm b yparticipating in SHELL ECOMARATHON ASIA, 2011 held inMALAYSIA from 6th - 9th July, 2011 onF1 TRACK by making a SOLARPOWERED CAR having efficient fuelconsumption and Eco friendly drive.They have initiated an idea for thebetterment of economic crisis in theWORLD and as well as in PAKISTANby using ALTERNATE FUEL i. e.SOLAR.This time again they are going tocompete in the WORLD CHALLENGEnamed as SOLAR CAR CHALLENGE2012 but now in the Cyprus, Europe.CYPRUS INSTITUTE is once againgoing to organize a dynamic event,“SOLAR CAR CHALLENGE”. The

internationale v e n tcoincides withCyprus' EUP r e s i de n c yand will begoing to beheld this timeat the publicr o a d s o fP a p h o s ,C y p r u s ,Europe. TheE v e n t i sscheduled on7th- 8th July,2012.One of the team member of this brilliantteam said, "The idea behind reducingthe weight and increasing the strengthof material is to enhance the efficiencyof the car."The competition challenges students,from all over the world, to design energy-efficient cars.Team CLAPTRIX is the only team fromentire Asia which is going to participatein this event to represent PAKISTAN inEUROPE. Not even the two big nationsfrom Asia, India and China, made itto the competition.The Team has said that the wheels usedare of rubber with carbon enforcementto reduce the weight and increase thestrength whereas the rims used are ofaluminum. The body is made up offiber cloth to make the car lightest upto maximum extent. Solar cells used areof Monocrystalline type. Its crowningglory lies in its fuel consumption. It'sone of the hybrid type cars as in nightsthe battery could be charged by plugginginto electricity. Being a two seater it isamazing to run continuously for 4 hours

without getting any kind of recharge andat a speed of 50 km/hour.For this great ach ievement greatstudents of Pakistan need support andfunds from the public, industries, socialorganizations, NGO'S and everyPakistani, to get their team and Pakistanon the winner stand this year in 2012 inCyprus. If all went well and if they gotan investor then it could go into massproduction, offering the car to the localmarket and will probably make Pakistana tough competitor in the market."Nothing great will ever be achievedwithout great mean, and men are greatonly if they are determined to be so."Charles De Gaulle

For more details and updates ourfacebook us:https://www.facebook.com/pages/Team-ClaptriX-NED/125073104263168

Team CLAPTRIX andSolar Car

The project, SOLAR CAR, is the brainchild of Team CLAPTRIX,a group of 10 students —Muhammad Yousuf Abbas , Danish Muhammad Saleem,

Faaiz baqer, Murtaza ahmed , Ali Siddique, Akif jawed, Arsalan Usmani,Fahad ur rehman, Umair & Adilnadeem of

NED University of Engineering and Technology

For this great achievement great students of Pakistan need support and funds from the public,industries, social organizations, NGO'S and every Pakistani, to get their team and Pakistan on

the winner stand this year in 2012 in Cyprus

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Page 20: Monthly Automark April 2012

The Engineering Development Board(EDB) discussed the joint budgetproposal 2012/13 of motorcycle makersand vendors received through thePakistan Automotive ManufacturersAssociation (PAMA) and PakistanAssociation of Automobile Parts &Accessories Manufacturers (PAPAAM)in a meeting.They have urged the government torationalise tariff in order to bring downthe cost of products and also allow theimport of machinery, parts and mouldsat zero duty, industry sources said.The proposal demanded loweringimport duty on the completely knockeddown kits (CKD) to 10 percent from 15percent, reducing import duty oncompletely built units (CBU) to 55 from65 percent, on sub-assembly to 10percent from 20 percent and reducingduty on components to 7.5 percent from10, sources said.The assemblers said that the improperimplementation of SRO 656 was giving

unfair advantage to unorganised sectorin the two/three wheeler sector of theauto industry.They a ls o demanded t ha t t hecomponents attracting lower rates ofduty than CKD rate should be allowedat statutory rates.The budget proposals suggested zeroimport duty on components needed forassembling two and three wheelers asper the Euro II standards. Afterimplementation of the Euro II standardsas Pak II, the cost of vehicles has goneup.They also suggested restoring issuanceof income tax exemption certificate atimport stage to manufacturers; onepercent withholding tax on the proceedsof exported goods should be reduced to0.5 percent as recommended by theEngineering Development Board (EDB)in the National Engineering & ExportsDevelopment Strategy (NEEDS) reportin 2010.....

The Engineering Development Board(EDB) and Dutch Centre for Promotionof Imports from the developingc ountri es (CBI) would enhancecooperation for development of exportsof engineering industry of Pakistan.A formal agreement would be signedsoon, as the EDB has completed the laiddown procedures by getting approval ofthe Ministry of Industries and theCabinet, it said, adding that the samehas also been vetted by the Law Division.According to the EDB, the progress wasreviewed in a recent meeting, which wasattended by a three-member delegationof the CBI, Netherlands headed by Donvan Luijn and the EDB team.After signing the agreement, the EDBwould become the first business supportorganisation in the government sectorto make this institutional arrangementwith the CBI, the statement said....

Automotive Sector - Update Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 36

Bike, rickshaw makersseek lower duties on

imported parts

EDB to enhance

exports through

international

collaboration

Engineering Development Board (EDB)

Ministry of Industries has flayed 100

percent increase in car prices by the

Original Equipment Manufacturers

(OEMs) during the past four years and

said they should bring down prices of

their cars in accordance with the

devaluation of Pak rupee against dollar.

EDB Chairman Aitazaz A Niazi said, “I

have told the OEMs that Pak rupee has

devalued by 50 percent but prices of

locally assembled cars have been raised

by 100 percent.

Niazi said, “I held a lengthy meeting

with the stakeholders on Friday which

was attended by top executives of Indus

M o t or s, H o nd a M o t or s, P a k

S u z u k i , P a k i s t a n A u t o mo t i v e

Manufacturers Association (PAMA) ,

Chairman and Vice Chairman Pakistan

Association of Automotive Parts

a ndAc ce sso r ie s M a nuf ac t urers

(PAAPAM).

During the meeting EDB stressed that

prices of all automobiles including cars

could only be brought down by

maximum localization of auto partsas

per incentives under SRO 693 and the

5-year Auto Industry Development

Plan(AIDP) 2006.

Niazi said instead of implementing the

AIDP for 80 to 90 percent localization

of the auto parts, the car assemblers

(OE Ms) ha ve ag ai n aske d t he

government to revisit the SRO 693 and

AIDP and postpone the indigenization

of the auto industry.

Chairman PAAPAM Nabeel Hashmi

said that during the meeting PAAPAM

representatives demanded of th e

government to follow consistent policy

for the local vending industry and ensure

complete implementation of the five-

year AIDP in letter and in spirit.....

100pc increase in car pricesby OEMs flayed

First high powered Chinese delegationfrom Wujin Chamber of Commerce andIndustry will visit Pakistan during thismonth or next month (May).This was informed by patron-in-chief ofPakistan China Business Council andformer president FPCCI, Tariq Sayeed.Chinese delegation’s visit to Pakistan isa follow up of the very successful visitof President Asif Ali Zardari to China atthe time of Business Forum in Urumqiin September 2011, said a release fromFederation of Pakistan Chambers ofCommerce and Industry (FPCCI).Tar iq Sayeed advised P aki st anicounterparts to prepare viable proposalsenabling FPCCI’s Pakistan- ChinaBusiness Council to line up matchmaking meetings.During the visit of President Asif Zardarito Urumqi (China), President of FPCCISenator Haji Ghulam Ali had signedMoU with the All China Federation ofIndustry and Commerce which is theapex body and has membership of 15million businessmen throughoutChina......

Chinese tradedelegation to visit

Pakistan

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Page 21: Monthly Automark April 2012

Automotive Sector - Update Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 37

"Auto vendors and suppliers shouldcontinue lending their excellent supportto the local auto industry and worktogether as a team to meet the growingdema nd of P aki sta ni ma rket ."These views were expressed by IndusMotor Company (IMC) CEO ParvezGhias at the company's Annual SuppliersConvention, says a press release issuedhere on Friday.He said that under the theme 'AchievingGoals, Together!' the event is an annualfeature with the aim of recognising theefforts of IMC vendors. Special lyemphasising on safety at workplace,quality and cost competitiveness, Ghiassaid those three factors were thepreconditions of a business.Evaluating last year's performance, 'AOne' was recognised top performingvendor for the year 2011-12, while OmarJibran (OJ) and Metaline were awardedSupplier Excellence Award.Sharing his views on "The Toyota Way",

S Yasui, Chief Engineer Corolla, ToyotaMotor Corporation, appreciated IMC'srole in putting best efforts to minimisethe impact of disruption to global autosupply chain due to Japan Tsunami andThailand floods.He specially applauded the suppliers'role for their continuous support inrunni ng produc t io n smoot hly .Mike Rausa, Senior Vice President,TMAP lauded the improvement madeby suppliers over the last few years andappealed them to further enhance thequality of locally manufactured partsand lower costs to achieve entry in theregional market.The convention was attended by seniormana g eme nt of Toyo ta M ot orCo rpo ra t i on , D a i ha t s u M o to rCorporation, House of Habib, IMC'ssuppliers, representatives from thea ut omo b il e in dus tr y a nd th emanagement of IMC.....

After almost a year of dawdling, themuch anticipated rebound in tractorsales was seen in February.The latest sales figures released byPakistan Automotive ManufacturersAssociation (PAMA) for the 8MFY12show that total tractor sales for themonth of February stood at 8906 units.The unit sales in February were up by478 percent, compared to the monthlyaverage of 1,862 units throughout7MFY12.This massive turnaround came aftersettlement of the GST dispute betweeng o v er nm en t a nd t h e t ra c t o rmanufacturers.

The query is: If the spike in sales is aone-time event or the demand frenzywould continue throughout 2012? Andwould the unit sales in 2012 be higherthan the level achieved in 2010? Whiletalking to media a leading analyst saidthat "the most important variable incalculating the demand for tractors isthe farmers income".He added "factors affecting the incomeprimarily include the major commodityprices (wheat, rice, cotton, etc) and farminput prices Urea, DAP, etc.A look into the main commodity pricesspecially cotton and rice does not posea very good picture for tractor sales.Right now cotton prices are almost 50percent lower than the average level ofCY11 and the level is expected to remainlow as the demand for textiles from theWest is expected to remain sluggish.In addition the Urea and DAP priceshave risen by 25 percent and 7 percent,respectively, compared to the averagelevel of CY11, again dampening farmersincomes...

Indus Motor holdsSuppliers Convention

Tractor salesPlowing back lost ground

P a ki s t a n , r i c h w i t h e x c i t i n g

opportunities, is an emerging market

for Chinese investment in diverse

sectors. These views were expressed by

VP SAARC Chamber of Commerce and

Industry, Pak chapter Iftikhar Ali

Malik,a veteran trade leader and

SVP,LCCI Meher Kashif Younis on

Sunday while talking to APP.

They said “Pakistan is now open to

Chinese b usinessmen with best

atmosphere of investment which provide

significant possibilities for Chinese and

other foreign investors.” With Chinese

investment, Pakistan would achieve

s u s t a i n e d g r o w t h i n k e y

sectors,including increase in per capita

income and improvement in micro-

economic in the years to come, they

added.

Iftikhar Ali Malik said current visit of

Prime Minister Syed Yusuf Raza Gilani

to China at Boao Forum will not only

further strengthen bilateral relations

but also boost trade ties between the

two countries.

He observed that Pakistan is ideally

located which has geographically

immediate access to the Central Asian

Republics and has a competitively

affordable and expanding work force of

36 million. He said Pakistan’s foreign

investment policy was open and liberal,

which was a good news for Chinese

companies interested in doing business

here.

Meher Kashif said Lahore Chamber and

all other chambers across the country

including Federation of Pakis tan

Chamber would help Chinese corporate

sector to identify opportunities in

Pakist an’s va st resource ba sed

industries, such as oil, gas and

petrochemic als, a fast g rowing

infrastructure sector and other

industries such as power and water, IT,

garments, Agriculture, livestock,

co mmuni c at i on , sof t wa re a n d

automotive manufacturing...

Pakistan anemerging

market forinvestment

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Page 22: Monthly Automark April 2012

by Zeenat Anjum from NEDUET Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 38

As we all know that we are living in thea g e o f d e g r a d a t i o n a n ddemoralization.In present era, peopleparticularly students are not encouragedto think in new dimension.In Pakistan, due to exceeding populationand limited chambers, it has always beenabout competition to supercede by anymeans rather than showcasing andfollowing innovative ideas.From here my story begins.. ..InPakistan, there exists a society whichdoes not encorage and promote youthfor their innovative ideas as comparedto foreign countries.We are students of Automotive andMarine Engineering at NED universityof Engineering and Technology situatedin Karachi, Pakistan.We, Team VICTORY have designed acar which is "Most Fuel Efficient".Thisis Hydrogen car which will work on thetechnology of fuel cell and will purelybe operated on hydrogen.As per ritual of our society, our thoughtwas hilarious to many and only fewaccepted and appreciated it. Our teamdid get demotivated for short span butsoon our spirits were high after ourpassion whi ch superceeded t hedemotivation offered by the society.Anyhow, We are a team of upcomingengineers working on this project. Wehav e designed t his c ar for anInternational event called Shell ECOMarathon Asia 2012 which will be heldat Sepang International Circuit inKualalumper, Malaysia.We students want to depict a potray of"soft image" of Pakistan at Internationalplatform.Our objective is to representPakistan at this International event.In Pakistan, there has always been crisisof energy. Through this car , we areaiming to resolve the energy issue inPakistan by making a car that will havemileage of more than 2500km in 1kg ofHydrogen.In addition to the solution of energy

crisis, we are seeking to save theenvironment and conserve the naturewhich has already been damaged anddestroyed upto noticeable extent byharmful gases given out by cars runningon fosssil fuel. Thus, this car is "SuperEnvironment Friendly" because it givesoff exhaust of "Steam".Our team is positive in serving thesociety with an engineering aspect.- We are working on alternative fuelwhich will not only serve Pakistan but

will also turn out to be effective forthe society.- By the encouragement of our project,new generation of upcoming youthwith innovative ideas would getpromoted to implement their ideasand showcase their efforts to play partin prosperity of society.- Our project would play active role toprovide economic relief to the people.Team Victory faces alot of problems dueto limited resources but we can assureto work our level best if we get financialassistance.After current sponsorship status, thisproject requires 1.5 to 2 million PKR.We are students and cannot afford thishigh cost on our own that is why werequire support from OUR NATION tohelp us out in this project which willsurely push Research and Developmenta step ahead in Pakistan.The estimated cost of this project is waybeyond our personal and collectivereach. For this, we are requestingdifferent organizations to join handswith us to build the most economic andenvironment friendly vehicle Join ourhands for a better and developingPakistan!!

HYDROGEN FUELTHE NEXT GENERATION

Our project would play active role to provide economic relief tothe people.

Team Victory faces alot of problems due to limited resourcesbut we can assure to work our level best if we get financial assistance.

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Page 23: Monthly Automark April 2012

By Ali Abbas - Toyota Southern Motors

www.automark.pk | April-2012 | Page 39

While writing my last article I wonderedhow we can extend our courtesy towardscustomers someone replied, bycommunication, I asked how? Naturallyby listening, writing, and speaking. Nodoubt the basic communicating methodsare listening, speaking and writing.Communication is basically an act ofconveying and sharing information. Itis a two way process of reaching mutualunderstanding in which participants notonly exchange information but alsoc r e a t e a n d s h a r e m e a n i n g .Communication has been derived fromthe Latin word “communis” meaning toshare. It requires a sender, a message arecipient this process is completed oncethe receiver has understood the messageof the sender.Human beings are communicating witheach other since the dawn of civilizationbut t he f irst maj or model ofcommunication came in 1949 by ClaudeShannon and Warren Weaver for BellLaborites. The initial model consists ofthree primary parts, sender, channeland telephone itself.What role communication playsin automobile field?It is the customer who is affected bycommunication. Sales person, partsmen, service people each and every onecommunicates with the customer. Minuscustomer communication, auto industrywill come to stand still. Communication

plays a major role in selling cars, sellingparts and providing services.

Customer service is basedon communication skills

Effectiveness of customer satisfactiondepends on the communication skills ofsales, service and parts people.Communication skills can be categorizedin two ways. Emotional and Logical.Emotional are mostly our body languagelike listening, reflecting, and non-verbalcommunication. Where as Logical arequestioning writing and explaining. Themost important feature is listening. Itis how one listens to what is being saidand this is understood earnestly thanemotional and logical process iscompleted.The listener should have self control onhimself, his expression and his reactionsto the speaker. Is he showing interest inlistening, paying attention or is absentminded, his body language, attitude,attention, enthusiasm and how mushhe absorbs from the speaker are

important for the listener, awareness tothe subject is also important. If one islacking behind he will continuously askthe speaker to repeat or ahead of thespeaker ‘I know what you want to say’attitude are negative approaches for thelistener. The best is to stay with thespeaker and follow what is being said.Is the listener able minimize theenvironmental distraction if not possibletoeliminate them and jumping toconclusions is a bad habitOn the other hand there is distraction(Barriers) from the speaker himself. Likehow he presents himself, his dressing,talking style, speed and clarity of speechchoice of words and attitude also playsa role in communicating with each other.Telephone plays an important role incommunication, a whole essay isrequired to explain telephone mannersbut in short always remember thatsmiles travel on wires also. Yourvoice shows your presence, attentionand attitude on the phone. One canjudge the speakers mood on the phone.A natural question is how we canimprove our listening skills. In otherwords if we are speakers, how we wouldlike to be ‘Listened’. If we are goodlistener we can be could speaker andvisa versa. It is our mindset and positiveattitude which makes us a good speakerand a good listener and this goodlistening will help us in questioning andin writing, noting down customerconc erns. Our quest ioning, ourreflections, our explanations each andevery skill is connected to our listeninghabits Even God has given us one tongueand two ears to listen more and talk less

“Courage is what it takes to standup and speak; courage is also whatit takes to sit down and listen.” SirWinston Churchill

Communication inCustomer Service

The listener should have self control on himself, his expression and hisreactions to the speaker. Is he showing interest in listening, paying

attention or is absent minded, his body language, attitude, attention,enthusiasm and how mush he absorbs from the speaker are important

for the listener, awareness to the subject is also important.

(Claude & Warren Model)

(David Berlo Model)

Monthly AutoMark Magazine

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Page 24: Monthly Automark April 2012

Corporate Visit - PR Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 40

ISLAMABAD, 19 MARCH 2012:

Ambassador of the Netherlands to

Pakistan, His Excellency Mr. Hugo

Gajus Scheltema, vis ited Rastgar

Engineering Co, an Islamabad based

exporter of auto parts , together with a

delegation of the Dutch CBI and took

keen interest in the production

processes. His visit was marked by a

ceremony where he poured molten iron

into a sand mold in commemoration of

his visit and his government’s continuing

policy of Economic cc-operation with

Pakistan and measures which have been

put in place to enhance trade between

Pakistan and the Netherlands. During

the visit, the Ambassador reiterated his

government’s policy of assistance to

Pakistani businesses with regard to

technology up gradation, enhancement

of exporting skills and facilitation of

joint ventures.

During the visit, the Ambassador was

accompanied by the visiting three

member CBI Team, headed by Ms.

Minke Vorstenbosch , and the Dutch

Economic Counselor, Mr. Jan-van

Renselaar . CBI is a part of the

Netherlands Ministry of Foreign Affairs

and provides assistance with cultivation

of skills required for exports from

countries like Pakistan to Europe. In the

process, the CBI is engaged in several

initiatives in Pakistan, ranging from

Export Coaching Programs for Pakistani

SMEs to capacity building of Business

Support Organisation in Pakistan. It

works closely and in harmony with with

the various Trade Associations,

individual exporters as well as with the

Ministry of Commerce, TDAP, EDB and

Chambers of Commerce.

Export Coaching Programs of the CBI

have resulted in conversion of several

Paki stani SME compa nies int o

becoming suc cessful exporters,

particularly in Engineering Goods and

Surgical Instruments. Trade areas like

export of auto parts, machinery export

and steel forgings , have come up on

Pakistan’s t rade horizon a s un

conventional exports being made to un

conventional markets like the EU and

United States. From Pakistan’s point of

view, this is a healthy diversification of

exports away from reliance on cotton

and textile based exports as the major

export earners. CBI has several Export

Coaching Programs for horticulture, sea

food, eco-tourism etc which can further

help diversify Pakistani exports.

Several auto parts manufacturers have

already attended the Export Coaching

Prog ra ms of CBI and a re now

successfully exporting Pakistan made

auto parts to various parts of the globe.

Recently the CBI has launched its new

series of Export Coaching Programs for

which many progressive Pakistani

companies have applied.

During the last two years, the CBI held

six work shops in Pakistan to train

Pakistani firms on Costing & Pricing for

Exports, Process Control and market

Research....

Dutch Ambassador toPakistan Pours Metal in

Pakistan FoundryVisit Highlights Dutch Economic Cooperation with

Pakistan and Policy of Enhancing Trade and TechnologyUp-Gradation Related Initiatives

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Page 25: Monthly Automark April 2012

By Asif Masood

www.automark.pk | April-2012 | Page 41

Monthly AutoMark Magazine

Pakistan is passingthrough the worstEnergy Crisis, onlyb ecause of poorpolicies and worstplanning. The gapb e t we en e ne rg y

supply and demand in Pakistan is at itsworst level since last one decade saidD r N adee m- Ul- Ha que, De putyChairman, Planning Commission in hisInaugural speech of two daysInternational Conference on Pakistan’sEnergy Options Technology, Availability,Affordability and the Role of RegionalGrids Islamabad on 29-30 March 2012organized by Guhlam Ishaq Khan (GIK)Institute of Engineering Science &Technology, Society for the Promotionof Engineering Science & Technology inPakistan (SOPREST), AlternativeEnergy Development Board (AEDB),Islamabad, SAARC Energy Centre(SEC), Islamabad & Global ChangeImpact Studies Centre (GCISC),Islamabad. He further added that, thereis no shortage of energy but we are facingintellectual crisis. The conference wasattended by Government Organizations& Academia including foreign delegates.The action will truly transform oureconomy, protect our security and saveour planet from the ravages of climatechange. The prevailing energy crisisshould be seen as an opportunity toaccelerate the building of a cleaner, moresecure energy future. The gap betweenenergy supply and demand in Pakistanis at its worst level since last decade.Even today half of the population inPakistan has no reliable and affordableelectricity supply. In particular theinhabitants of about 100,000 villagesin rural areas have to rely upon candlesand lamps for basic energy needs. Theelectricity supply in urban areas ischaracterized by growing gap between

supply and demand.Due to gravity of present situation andrising demand for power, governmenthas to take immediate measures to addminimum of 5000 MW to National gridthrough mid-term plans and not therental plans. Even now on the last dayof the month (31st March 2012) theGovernment has announced the newprices of petroleum product, withpresent price hike the petroleum producthas completed his century. Oil pricesare getting out of reach and the situationhas further worsened due to inability ofconsecutive governments to exploithydro & coal power potentials of thecountry. The next Government will anuphill task to double the generationcapacity by uti lizing all availableresources including Hydel, Coal andalternate energy projects, to cater forthe demand for coming 10 to 15 years.The next elected government needs topursue the hydel, renewable & energyefficiency projects on war footing andb uild new wa ter reservoirs foragricultural and industrial growth afterbuilding National consensus withoutpoliticizing as had being done in the

past. Hydro electricity is the cheapestsource of energy and by building smallhydel projects in addition to mega dams,the feasibilities of which already exist.We can easily add 50,000MW in ourNational Grid.Mr. Shams Ul Mulk (Phd), (HI),President of SOPREST/GIKI and ExChairman of WAPDA said water is themost critical aspect of human living.Fresh water reservoirs are almostindispensable component of theecosystem. Increasing scarcity of water,aggravated pollution and destruction ofwater resource all around the world hastriggered a severe water crisis in manyparts of the globe. It is also alarmingthat world population is growingexponentially while there is no new freshwater source available as it was theresome 2000 years ago. World wide waterconsumption has increased six fold withhighest percent increase in agriculturesector. On soaring issue of mega hydelproject, he added that present regimehas failed to obtain mutual consensusof numerous projects such as KalabaghDam.Controversies are not the reflection of

Pakistan’s Energy OptionsTechnology, Availability

and Affordability,the Role of Regional Grids

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Page 26: Monthly Automark April 2012

Energy Conference - Islamabad

www.automark.pk | April-2012 | Page 42

'difference of opinion' rather it informsus about the inability of individuals orsociety to resolve the issues in a saneand rational manner. There are manyfactors which led to the formation ofcontroversies. However, presentcontroversy about Kalabagh arose dueto malfunctioning and ill coordinationbetween different political processes. Itwould not be wrong to say that thecontroversy about Kalabagh dam is oftwo fold, technic al & polit ical.

Lack Of ConservationApproach

Institutional policies of Agriculturalsector in Pakistan have assumed thisbelief that geographical location ofPakistan is water abounded. This viewhas resulted in high amount of waterwastage that occurs in irrigationpractices and the way water resourcesare consumed for domestic andeconomical purposes. Respondents areof opinion that current water crisis canbe resolved by introducing effectivewater conservation policies andeliminating water intensive crops fromSindh. They suggested that awarenesscampaigns should be organized andtraining programs need to be initiatedby provincial government to mobilize

people about how to improve yield atthe same time decreas ing waterconsumptions. An expert said that theonly alternative to Kalabagh is to havea conservation strategy. "Water savingtechnology and water conservationstrategy is the alternatives to Kalabagh"Power generation through alternateenergy resources like Solar, Wind,Geothermal and Hydel are economicalviable solution for Pakistan. It isabsolutely essential that minimumelectricity growth rate is maintained.Ministry of Water & Power is becominghabitual of finding temporary solutionsto its problem. Due to this they are shyin finding innovative solutions &hesitant in initiating long term projects,because they have already wasted a lotof time.Dr. Jalal Bukhari, Advisor, PCRET,Islamabad & Dr Asif , Asstt Prof ofGlasgow Caledonian University, UKemphasized on use of renewable energyspecial ly, on the fabrication andcharacterization of Nanocrystalline DyeSensitized Solar cell and microgeneration renewable energy system likeSmall Hydropower plants (SHP) whichare an alternative and has emerged asa desired option, especially for hillyterrains, where natural waterfalls are

abundantly available. Small hydro power& mini hydro power are referring toschemes below 1MW, micro-hydrobelow 100 kw & Pico hydro below 5kw.All these technologies could be regardedas small hydro power. Generallyspeaki ng, mi cro & Pic o hy drotechnologies are used in developingcountries to provide electricity toisolated communities where electricitygrid is not available, whereas mini hydrotends to be grid connected. In most ofthe cases, no dams or reservoirs forstorage is involved in Pico, micro & minihydro schemes. In past, PCRET hasimplemented 290 micro - hydro powerplants in FATA & in Northern areas withtotal capacity of 3.5MW, ranging from3-50kw per plant with participation oflocal community. All of these plants arerun-of- river type in the low (four meter)head range. Similarly, Agha Khan RuralS upport Program (AKRSP) hasconstructed 171 micro–hydro unitsproviding electricity to around 18,000households in the remote and isolatedregion of northern Pakistan, andcurrently provided 11,000 householdswith electricity in very remote locations.These plants not only providedelectricity for light at night but are alsoused to run small industrial units suchas flour mills for wheat and maizethreshing, and cotton ginning duringday time when electricity is not requiredfor lighting. Once the plant is installed,the local community takes the operatingresponsibility for sustainability. A Majoradvantage of micro hydel is that it canbe built locally at a relatively low cost.For instance, imported turbine setsg e ne ra t i n g u p t o 5 0 kw c o s tapproximately $ 500 to $1000 per KW,while the local manufacturers offerfacilities for turbine manufacturing atUS $ 150 to US $ 200 per KW, withmarginally reduced turbine efficiencies.The cost of local manufacture can bereduced further by developing localengineering capabilities and advisory

Due to gravity of present situation and rising demand for power,government has to take immediate measures to add minimum of5000 MW to National grid through mid-term plans and not the

rental plans. Even now on the last day of the month(31st March 2012) the Government has announced the new prices

of petroleum product, with present price hike the petroleum producthas completed his century.

Over a dozen huge windmills line the roadside of the town of Jhimpir, close toKarachi, in the Sindh province.

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Energy Conference - Islamabad

www.automark.pk | April-2012 | Page 43

services. In order to accelerate thedev elopment a nd enha nce theperformance of small hydro power inthe country, it is imperative tobenchmark the work of the SHP industryto identify, understand and adapt theproven best practices of the world leaderindustries. As the huge potential ofhydro power remains as yet untapped,t here i s a g rea t pot enti al forbenchmarking in the Small Hydro Power( S H P ) i n du st r y i n P a k i st a n .Decentralized renewable energy systemscan also help t o reduce energydistribution losses and result in system-wide and national efficiency gains.Renewable energy and greater use ofindigenous resources can help diversifycountry’s energy mix and reducedependence on imported fossil fuels,thereby mitigating supply disruptionsand price fluctuation risks. In additioncosts and risks relating to fuel stockingt ra nsportat io n, and te mporarysubstitute arrangements are alsoirrelevant for renewable energy systems,except for backup purposes.

Institute of Space Technology (IST)represent at iv e hi ghl ig hted theimportanc e of Envi ronmenta llyS us t ai n a bl e T ran spo rt (E S T).Urbanization in Pakistan is influencingmobility patterns and private vehicleusage. As vehicle Ownership and usagerapidly increase in the country & withoutconcerted efforts at the local andnational levels to address issues such asair pollution and greenhouse gas (GHG)emissions from the transportationsector, the trend of urbanization, andincreasing accidents, human health,urban environmental quality, economicproductivity, social equity, and all otheraspects of sustainability would beundermined. The transport sector isemerging as the fastest-growing sourceof global GHG emissions and accountsfor 13 per cent of all GHG emissions and23 per cent of fossil fuel-based CO2emissions.Office of Research, Innovation &Commercialization (ORIC) as envisagedby Higher Education Commission(HEC) initiate designed to position as a

leader and hub for research anddevelopment endeavors to promote andfacilitate university and industrylinkages for commercial ization ofinnovative ideas both in the public &private sector. Office of Research,Innovation & Commercialization (ORIC)platform has provided the opportunityto harness this exceedingly valuable andneeded effort to dovetail with our questfor quick tapping all resources toestablish Industrial & Academiarelationship for development ofsystematic framework in order to ensurecoherent, coordination activities withappropriate practical mech anism.Today, Institute of Space Technology(IST) is playing the leading role in thecountry’s crusade against inefficienciesin all sector of economy by seekingcollaboration from relevant actors in thefie ld in consonance with HigherEducation Commission Agenda. To startwith Institute of Space Technology (IST)has planned following pilot activities• Small Solar home Systems• Promotion of clean fuels like biodiesel from Jatropha & CasterBean• Establishment of Bio gasdomestic plant in association withWinrock InternationalThe growing demands for energy havemade it imperative to look for Alternateand Renewable sources of energy inorder to bridge the big demand andsupply gap. Renewable Energy & EnergyEfficiency should be seen, as one of theanswers to the current crisis and wemust resolve and strive to enhancee nerg y eff ic i enc y & in cul c at econservation culture, and harness thevast power of clean resources availablein the country. Mr. Asif Masood is Consultant Office of

Research, Innovation & Commercial(ORIC) Institute of Space Technology

(IST) Islamabad.

The next elected government needs to pursue the hydel, renewable& energy efficiency projects on war footing and build new waterreservoirs for agricultural and industrial growth after building

National consensus without politicizing as had being done in thepast. Hydro electricity is the cheapest source of energy and bybuilding small hydel projects in addition to mega dams, the

feasibilities of which already exist. We can easily add 50,000MW inour National Grid.

Monthly AutoMark Magazine

Minister for Petroleum and NaturalResources Dr. Asim Hussain informedthe National Assembly that the supplyof LNG from Qatar would begin withinone year and a half.“Pakistan plans to import five hundredmmcfd LNG from Qatar to meet itsenergy requirements and most likely itssupply will start within one year and ahalf .” Dr Asim said the NationalAssembly during question hour. He saidthat an agreement to this effect has beensigned with Qatar but the price of LNGis yet to be decided. “The price will bedecided in accordance with the

prevailing international price in theregion,” he said.About gas shortage, the minister saidthat the installation of big number ofCNG stations have become a burden onthe system. However, steps are beingtaken to provide gas to domesticconsumers on priority. He said the gaspressure situation will improve as soonas the temperature gradually rises.He said that in accordance with theformula approved by ECC of the Cabinet,the CNG station owners are allowedreturn at the rate of 20% of their totaloperating and cost of gas.…

Asim says CNG stationshave become a burden

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www.automark.pk | April-2012 | Page 44

By Engr. IHT Farooqui, GM - Plant

Karakoram Motors (Pvt) Ltd., has streamlined theproduction of it’s mini truck KALASH.Kalash is much popular product in Pakistan due toit’s quality, specifications and competitive prices.Last week a self quality audit of the rolled off Kalashwas held at Karakoram Motors Assembly Plant, inwhich all the workers, and executives of the companyparticipated and to improve the quality submittedtheir suggestions.Karakoram Motors always welcome feedback fromit’s honorable customers, employees and dealers toimprove the quality, and to make the product morecompetitive, because we know that Quality is acontinues journey.Kalash is now available all over the Pakistan at ourdealers with 3S facilities.

Executives writing their suggestions

Group photograph of KMPLengineers and staff

Karakoram Motorsresumed it's mini pick

up production

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By Salman Ahmed Shaikh Monthly AutoMark Magazine

www.automark.pk | April-2012 | Page 45

With exports touching $25 billion inFY11, remittances maintaining anaverage of $1 billion constantly sincelast year, foreign reserves reachinganother peak after 2007 and economystill growing in excess of 2% despitefloods and security threats, the economyof Pakistan has shown some resilience.But, on the other hand, the economyalso faces sharp increase in poverty,income inequality, deterioratingenvironmental base, acute shortage ofenergy and is most affected by securitycrisis and its consequent problems. Bysome estimates, poverty has touched43% and unemployment has also peakedto cross 15%.In this brief article, we suggest fewimportant steps that can be taken tohelp bring improvement in economicperformance.

Broad based Tax ReformsA reduced uniform tax rate along withuncomplicated tax procedures and easein interest rates is needed to boostproduction.Tax base needs to be increased throughdocumentation. Tax disclosure shall bemade necessary in most materialtransactions. A strong and vibrantinformation network is necessaryencompassing major financial, legal,accounting, auditing and tax institutionsfor timely disclosure of malpractices andtax evasion.Income tax should be levied onagricultural income, stock trade and realestate investment. Services especiallythe hotels/restaurants, franchises etcmust be brought in tax net rather thanlooking to burden the already registeredtaxpayers.Amnesty scheme shall be introduced forpeople to whiten their money. Ratherthan using the stick approach, the carrotapproach could be used this time andpeople be given a one-time final chanceto whiten their money in an attractivescheme.

Facilitating &Incentivizing ValueAdditionValue addition is the key for growth in

exports. A targeted subsidy in the formof tax holidays and R & D support shouldbe provided to induce value addition.Services industry like IT outsourcing,gem stones polishing, Medicare, tourismetc shall be given priority as they requireless infrastructure and are laborintensive.Value addition requires venturing intoproduction/manufacturing. It requiresa clear incentive in manufacturing overtrading. In the absence of incentive inproduction/manufacturing , ‘rentseeking’ behavior sets in and moreproducers opt for trading. This extendsthe supply chain with excess middlemenwhich also results in increase in prices.A distinct monetary incentive (i.e. cheapfinancing) and/or fiscal incentive (i.e.tax concession) to production isnecessary to deal with rent seekingbehavior.

Dealing with Energy CrisisEnergy is the main asset for any countryfrom now onwards. More energyresources will reduce the cost ofproduction leading to decrease in pricesand cost of a healthy standard of living.It will induce production, exports andattract foreign investment whilereducing unemployment and increasingpurchasing power. Investment in energysector shall be encouraged andprioritized.Cross checking and random checkingon rotational basis be made compulsoryin utility companies to identify linelosses in particular regions. Theconnivance of officials with people whoare not paying utility charges can bebroken this way. In an independentcross check, if line losses exceed athreshold limit, the person responsiblefor that region shall be expelled. Ratherthan paying penalty (which are notrational, outdated and extremely lowfor many crimes) and which encouragecontinuing theft operations as before,the door of corruption must be seizedfor the corrupt. This is going to be muchmore effective than running expensiveTV ad campaigns.Alternate sources of energy must beexplored especially solar and wind

energy. Price hikemus t t a k e i n t oaccount that highend consumers beburdened with pricehike more than thelow-end consumers.But, it must be notedthat too high a price could once againincrease line losses.

Enhancing CapitalFormation and InvestmentOverseas Pakistanis shall be encouragedto invest in industry rather than in stockmarket and real estate. It is vital tofacilitate investors especially overseasPakistanis which can come even if theyare provided with very few incentives.Investment facilitation from scratch tothe complete set up of industry can alsobe provided on a fee basis. Most foreigninvestors will opt for investmentfacilitation and it will increase not onlythe pace with which an investmentproject will be completed but also opena new window of revenue generation forthe government.Foreign investment in Pakistan hascome into sectors like real estate andstock market which does not create realincrease in output and does not provideemployment to the masses. Governmentschemes should promote investment inlocal industries, local plants andequipment and manufacturing withinPakistan so that employment generationcan take p lace i nside Pakistan.Law and order situation in Pakistan hasbeen very poor especially in a largemetropolitan and hub of trading citylike Karachi. Law and Order is essentialfor the Foreign Direct Investment.Deteriorated law and order situation notonly af fects trading and businessactivities, but also creates a lot of fearand disappointment on the part ofinvestors and entrepreneurs.

(Salman Ahmed Shaikh is pursuing PhDin Economics from IBA. He is author of"Proposal for a New EconomicFra mewo rk B a se d on I sl ami cPrinciples". He can be contacted [email protected])

ROAD AHEAD FORPAKISTAN ECONOMY

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Karakoram MotorsModel Price

Chery Standard Petrol Rs. 7,20,000Chery Standard CNG Rs. 7,70,000

Chery Deluxe Petrol Rs. 7,70,000

Chery Deluxe CNG Rs. 8,20,000

Gonow VictorGonow Troy Standard

Rs. 1,499,000Rs. 9,99,000

Gilgit (Double Cabin) Pet.Gilgit (Double Cabin) CNGKaghan XL PetrolKaghan XL CNG

Rs. 3,85,000Rs. 4,20,000Rs. 1,285,000Rs. 1,375,000

Gonow Troy Deluxe Rs. 1,049,000

TOYOTA COROLLA

Price updated April- 2012

MEHRAN VX 800ccMEHRAN VX (CNG) 800cc

MEHRAN VXR (CNG)MEHRAN VXR

ALTO VXR

ALTO VXR (CNG)

Rs. 520,000Rs. 591,000Rs. 572,000Rs. 640,000

Rs. 737,000

Rs. 821,000

SUZUKIModel Price

LIANA 1.3L RXI MT PETROL

CULTUS Efi VXRI 1000cc

CULTUS Efi VXRI (CNG)

LIANA 1.3L RXI MT (CNG)RAVI PICKUP ST308R VX

RAVI PICKUP ST308R VX CNG

BOLAN VAN VX PetrolBOLAN VAN VX CNG

SUZUKI VAN CARGO

BOLAN VAN VXR PETROL

BOLAN VAN VXR CNG

Rs. 945,000

Rs. 1,015,000

Rs. 1,411,000

Rs. 1,351,000

Rs. 599,000Rs. 663,000

Rs. 675,000

Rs. 736,000

Rs. 565,000

Rs. 547,000

Rs. 621,000

SUZUKI SWIFT 1.3L DLX Rs. 1,096,000

HYUNDAI

Model PriceHonda CRV Automatic 2400cc Japan Rs. 7,117,000

Honda City Automatic 1300cc Rs. 1,560,000Honda City Manual 1300cc Rs. 1,419,000

Honda Civic VTI Manual 1800cc

Honda Civic VTI Manual SR (Oriel)

Rs. 1,908,000

Rs. 2,058,000

Honda Accord Automatic 2400cc Japan Rs. 6,617,000

HONDA

Car / Light Vehicle Price ListCar / Light Vehicle Price List

APV 1.5L JL SX MT (CBU) Rs. 1,999,000

APV 1.5L JL DX MT (CBU) Rs. 2,074,000

Rs. 1,788,000

Rs. 1,980,000

Honda Civic VTI Prosmatec SR (Oriel)

Honda Civic VTI Prosmatec 1800cc

Model Price

GLI VVT-i 1.3 M/T 1299cc Petrol Rs. 1,602,500

XLI VVT-i 1.3 M/T 1299cc Petrol Rs. 1,477,500

GLI VVT-i 1.6 A/T 1599cc Petrol Rs. 1,772,500

Model Price

2.OD SALOON MT Rs. 1,809,000

2.OD STD 2000cc Rs. 1,607,500

XLI VVT-i 1299cc ECOTEC Rs. 1,602,500

GLI VVT-i 1299cc ECOTEC Rs. 1,732,500

SUZUKI SWIFT 1.3L DX STD Rs. 1,176,000

JIMNY JLX SX CBU (SN) Rs. 1,974,000

JIMNY JLX DX CBU (SN) Rs. 2,123,000

Model Price

DAIHATSUModel Price

Rs. 3,560,000

DEFENDER

STATION WAGON 90

LAND ROVER

Rs. 2,770,000Terios 4X2 lwb at

Rs. 2,770,000Terios 4X4 lwb mt

Model Price

Hilux Pickup 4x sc

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

Rs. 1,614,500

Model Price

Hilux Pickup 4x4 D/C

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

Rs. 2,489,000

Model Price

Toyota Avanza (Up Specfication) Rs. 2,160,000

Toyota Avanza (Standard) Rs. 1,960,000

ALTIS 1.6L Dual VVT-i AT SUNROOF Rs. 2,022,500

ALTIS 1.6L Dual VVT-i AT Cruisetronic Rs. 1,932,500

Rs. 1,932,500ALTIS 1.6L Dual VVT-i MT SUNROOF

ALTIS 1.6L Dual VVT-i MT Rs. 1,842,500

2.OD SALOON SUNROOF Rs. 1,914,000

Rs. 8,47,200CUORE CX std

Rs. 8,97,200CX ECO (CNG)

Rs. 9,58,200CX ECOMATICRs. 3,960,000STATION WAGON 110

Rs. 3,336,000Soft Top 90

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MADE IN PAKISTAN MOTORCYCLESRETAIL PRICE LIST

70cc Motorcycle

Retail Price

Rs. 42,500/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 42,000/=

Rs. 40,000/=

Rs. 40,000/=

Rs. 49,000/=

Rs. 39,000/=

Rs. 45,000/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 46,000/=

Rs. 47,000/=

Rs. 41,000/=

Rs. 66,500/=

Rs. 43,000/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 44,800/=

Rs. 40,000/=

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

Guangta GT-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 Hi-Tech MR-70

New Asia NA-70

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

Pak Hero PH-70

Raftar KM-70

Ravi Premium R1

Ravi Hamsafar-70

Road Prince RP-70

Royal Star RS-70

Royal RL-70

Racer AS-70

Safari SD-70

Sakai SK-70

Star DL-70

Sohrab JS-70

Sonica SM-70

Super Asia SA-70

Super Star SS-70

Super Power SP-70

Super Power Delux

Toyo TG-70

Target TT-70

Unique UD-70

Union Star US-70

United US-70

Zxmco ZX-70

Retail Price

Rs. 42,500/=

Rs. 42,000/=

Rs. 47,000/=

Rs. 43,000/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 42,500/=

Rs. 41,500/=

Rs. 40,000/=

Rs. 39,000/=

Rs. 39,900/=

Rs. 41,500/=

Rs. 42,400/=

Rs. 39,500/=

Rs. 41,500/=

Rs. 40,500/=

Rs. 45,000/=

Rs. 41,000/=

Rs. 40,000/=

Rs. 42,000/=

Rs. 42,000/=

Rs. 40,000/=

Rs. 42,000/=

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.

MADE IN PAKISTAN MOTORCYCLESPRICE LIST

Price updated Feb-2012

www.automark.pk | April-2012 | Page 48

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