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Pakistan Automobile Industry

ghazi52

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January 10, 2022 -

Mechanics work on the chassis of a Ford van at a workshop in Peshawar. — Dawn

Mechanics work on the chassis of a Ford van at a workshop in Peshawar. — Dawn

PESHAWAR: Driver Akram Hussain’s wagon has undergone several transformations even if one wouldn’t know by looking at its shell. The exterior is still of a Ford van, even if nothing within remotely original. From a patrol driven vehicle, it became one with a diesel engine along the way. Now, it is run by CNG.

“Other than the shell, the wagons you see on the roads are fitted with used parts from brands,” said Hussain, whose public transport wagon shuttles between Haji Camp in the city’s east end to Karkhano Market in the west.

Refitting vans with auto parts from other brands is a choice dictated both by necessity and convenience. Of the hundreds of vans plying between the city and Karkhano, almost all are the Ford Transit, 1980 model. The body parts for that model are no more available, but more importantly used parts of other brands are.

Scraping and refitting old models with old body parts is a big business in Peshawar — an undocumented economy that employs scores of auto-hands moving vehicles and body parts within the city, the rest of the country and between Pakistan and Afghanistan. While that make eminent economic sense, the business is also an environmental disaster by way of keeping on roads obsolete vehicles with old body parts, decades past their sell-by date.
Obsolete vehicles are reborn as fixtures of equally dead brands
According to officials of transport department, there is not a single scrapping and crushing unit in Pakistan to retire old vehicles, only workshops engaged in reusing them as spares. In the city, vehicular emissions are a leading cause of air pollution, spiking air quality index (AQI) well past the WHO safety standards and endangering health and wellbeing of the people.

Although no official data is available on such emissions, carbon-spewing obsolete vehicles have become a major cause of concern for environmentalists and citizens alike.

When it comes to public transport on roads of Peshawar, as ubiquitous as the Ford Transit van is the Bedford Bus. But while the brand that was based in Bedfordshire in England retired in 1991, its buses have yet to here in Peshawar.

Driver Mohammad Iqbal’s bus is one of the many Bedford vehicles that run on two routes -- between the city to Bara and Landi Kotal in the neighbouring Khyber district. Like the Ford van, his Bedford, which he likens to a bus-brother to the sister-van, has undergone many a transformation. And yet, he feels, the old Bedford still has years in it to stay on these roads.

“It could take you all the way to Russia without so much as a squeak or a sputter,” he said. No wonder, the old bus brand has come to earn the moniker “rocket” for speeding, among the commuters in Peshawar.

Officials in Directorate of Transport and Mass Transit Peshawar said that fixing age limit for use of vehicles or scrapping was not possible in a country like Pakistan. There is no mechanism or policy to scrape old vehicles like developed countries where proper technology is used to scrap worn-out vehicles after specific time. Even the government regularly auctions condemned vehicles instead of scrapping.

After launching Bus Rapid Transit (BRT), a multi-billion rupees public transportation system in Peshawar in August 2020, TransPeshawar launched scheme to keep old busses off the road by purchasing worn-out buses, mini-buses and wagons from the owners to address the issue of traffic mess along the BRT corridor.

Under the scheme, officials said, around 380 vehicles had been purchased from the owners and scrapped since 2020. The scheme is still in progress and contractors have hired workers to dismantle these vehicles. The company pays Rs1.4 million against one wagon and Rs1.5 million for one passenger bus.

“For the first time such scheme has been launched in Pakistan to scrap old vehicles,” said an official.

As opposed to timely retirement of old vehicles, the provincial transport department through a notification has relaxed rules by allowing such vehicles on the roads for indefinite period. Initially, officials said, maximum age for commercial vehicles was 25 years.

“Under the new notification, the maximum age limit of 25 years has been replaced with subject to fitness certificate in C-categories of routes,” said an official while requesting anonymity. He said that the Punjab model had been replicated in KP by amending Rule-57-B (3) of the Motor Vehicles Rules, 1969.

After amending the relevant rules, officials said, the transporters would get fitness certificate from the Vehicle Emission Testing Station, an auxiliary of the transport department that was earlier functioned under the Environmental Protection Authority (EPA).

Officials working at VETS, Peshawar said that the body lacked capacity, resources and manpower to check millions of vehicles for road fitness. “This is impossible to check every vehicle on the roads in Peshawar and issue fitness certificate, keeping in view our limited resources,” said an official.

He said that VETS could not enforce standards to check the vehicles on its own and was completely dependent on the traffic police.

The provincial government has also changed the policy for the use of official vehicles. Officials said that initially age of staff cars/vehicles was three years or completion of 160,000 kilometres mileage. Under the new policy, maximum age for the official vehicles is up to seven years or 320,000 kilometres mileage.

Meanwhile, the relevance of Ford vans and Bedford rocket busses for commuters remain the same in a city where despite BRT public transport needs of an ever-growing population are far from resolved. According to provincial transport department, 526 Bedford busses and 646 Ford vans remain on the roads of Peshawar.

“These vehicles have, over time, become an amalgamation of many brands, with body parts borrowed from other vehicles,” said a worker at a workshop in Peshawar. “The market is so huge that you will never run out of spares.”

With all this altering of the auto vehicles, perhaps it is appropriate to call a Bedford bus a “rocket” -- a local brand name instead of the original. Especially, now that brand Bedford is no more.

Published in Dawn, January 10th, 2022
 

ghazi52

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Lucky Motor Corp to launch Peugeot 2008 this month

Ali Ahmed
10 Jan, 2022


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Lucky Motor Corporation (LMC) is likely to introduce Peugeot 2008 later this month, officials familiar with the matter told Business Recorder on Monday.

The development would make Lucky Motor the only company in Pakistan at the moment to have different brands associated with its name.

The price tag of the subcompact crossover SUV, with a 1,200cc turbo engine, is expected to be in the range of Rs4.8-5.5 million, it was learnt.

Peugeot 2008 is manufactured by the PSA Group, a French multinational automotive manufacturing company that was taken over by the Stellantis Group.

Talking to Business Recorder, Tahir Abbas, Head of Research at Arif Habib Limited (AHL), said the development would mean that “after decades, a local company will be launching multiple brands”.

Back in 2000s, Dewan Farooque Motors partnered with multiple Korean brands including Hyundai and Kia. However, the partnership ended.

Abbas said the entry of Peugeot would add to healthy competition in the auto sector.

Last year, LMC launched KIA Stonic, a subcompact crossover SUV (B-segment), and KIA Sorento, which has three different variants: the 2.4-litre Front Wheel Drive, 2.4L All-Wheel Drive, and 3.5L Front Wheel Drive.

The company is also expected to launch the Peugeot 2008 later.

Meanwhile, in an exclusive interview with BR Research, Asif Rizvi, Chief Executive Officer (CEO) of Lucky Motors said that the company has focused on creating more competition among the auto players.

"We strategised that we wanted to be a SUV-only company. People across the world are migrating toward SUVs. In fact, globally in the last couple of years, there has been a decline in overall auto sales but an increase in the sales of SUVs," he told BR Research.

“Sportage created its own segment, the newly-launched Stonic is part of the small SUV segment while Peugeot will create its own segment being a very modern-styled European vehicle. Sorento has filled the gap between Sportage and the large SUV of our competitor,” he said.
 

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Sazgar Engineering
BR Research
13 Jan, 2022

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Sazgar Engineering (PSX: SAZEW) is one of the largest domestic rickshaw manufacturers in Pakistan and has been incorporated since 1991 with plants located in Lahore. Aside from them manufacturing of auto rickshaws, Sazgar also manufacturers and sells tractor wheel rims and home appliances.

The current capacity for the plant is to manufacturing 20,000 rickshaws annually. Utilization, in accordance with demand, stands at 79 percent.


In the outgoing year—FY21—Sazgar began commercial trial operation of passenger cars and off-road vehicles under the brand “BAIC”. The company signed a vehicle assembly and technical cooperation agreement with a Chinese manufacturer of passenger cars and commercial vehicles called Great Wall Motors. Sazgar’s first launch in the segment is HAVAL which is operating all over the world and will officially become part of the growing SUV segment in Pakistan.

As a three-wheeler manufacturer, Sazgar did not have any prior experience in other automotive segments, but in Jan-21, the company decided to spread its wings and diversify its product base by venturing into the expanding passenger vehicle segments. Sazgar wanted to utilize the benefits offered by the Auto Development Policy 2016-21 and launch sedans and hatchbacks from the Chinese brand BAIC, which is one of the largest Chinese automotive groups.

Over the past decade, the three-wheeler segment has proliferated with more players entering and expanding their production whilst sharing and dividing the rather subdued market. From selling 9800 units in 2008, Sazgar’s sales grew to 21,000 in FY18 which was a phenomenal year for the automotive industry in general. Since then, Sazgar’s volumes have shrunk in line with the rest of the industry to 12,000 and 15,000 in FY20 and FY21. There is growth but sales are not close to the peak even though the company is operating at 80 percent capacity utilization at the moment.

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airmarshal

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Sazgar Engineering
BR Research
13 Jan, 2022

61df9581efcc5.jpg



Sazgar Engineering (PSX: SAZEW) is one of the largest domestic rickshaw manufacturers in Pakistan and has been incorporated since 1991 with plants located in Lahore. Aside from them manufacturing of auto rickshaws, Sazgar also manufacturers and sells tractor wheel rims and home appliances.

The current capacity for the plant is to manufacturing 20,000 rickshaws annually. Utilization, in accordance with demand, stands at 79 percent.


In the outgoing year—FY21—Sazgar began commercial trial operation of passenger cars and off-road vehicles under the brand “BAIC”. The company signed a vehicle assembly and technical cooperation agreement with a Chinese manufacturer of passenger cars and commercial vehicles called Great Wall Motors. Sazgar’s first launch in the segment is HAVAL which is operating all over the world and will officially become part of the growing SUV segment in Pakistan.

As a three-wheeler manufacturer, Sazgar did not have any prior experience in other automotive segments, but in Jan-21, the company decided to spread its wings and diversify its product base by venturing into the expanding passenger vehicle segments. Sazgar wanted to utilize the benefits offered by the Auto Development Policy 2016-21 and launch sedans and hatchbacks from the Chinese brand BAIC, which is one of the largest Chinese automotive groups.

Over the past decade, the three-wheeler segment has proliferated with more players entering and expanding their production whilst sharing and dividing the rather subdued market. From selling 9800 units in 2008, Sazgar’s sales grew to 21,000 in FY18 which was a phenomenal year for the automotive industry in general. Since then, Sazgar’s volumes have shrunk in line with the rest of the industry to 12,000 and 15,000 in FY20 and FY21. There is growth but sales are not close to the peak even though the company is operating at 80 percent capacity utilization at the moment.

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Their auto rickshaw is a very good product. Wonder why they dont export?
 

ghazi52

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In the Pakistani car market, Pak Suzuki Motor Company (PSMC) has been an unstoppable force, setting sales records twice in the calendar year 2021. PSMC reached a new monthly record of over 15,500 units sold in December, surpassing its previous high of over 15,200 units sold in July 2021.

According to official figures, both records were set as a result of the incredible sales of the Suzuki Alto. PSMC sold 9,195 Altos last month, making it the best-selling vehicle in December 2021. This is a 280 percent rise from November 2021, when it sold 2,420 copies.

Along with that, the Alto has been named the best-selling car of the calendar year 2021, with 53,887 units sold.

The Suzuki Alto is now the only locally produced supermini that can be regarded good value for money, with foreign Kei vehicles being its closest competitors. However, due to the government’s import limitations, those too have become incredibly expensive.
 

airmarshal

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Sazagaar should start it's own alto type car in the future
It's a Pakistani brand and as/if economy improves they can become a major force in Pakistan car industry

Just did a Google search. Found that Sazgar does export. But the volume must be much bigger.


 

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Pakistani Companies Unveiled the Country’s first Commercial Electric Vehicle

The first electric commercial vehicle (ECV) in Pakistan was introduced by a private enterprise in conjunction with Tesla Industries.

According to a report in the main daily, an 11-seater minibus and a cargo truck capable of transporting up to a ton were displayed in a ceremony. The solar charging station and AC chargers for ECVs were also on display. In their remarks during the ceremony, the company’s top leaders stated that electric vehicles are urgently needed in the face of rising gasoline prices and significant increases in air pollution.

The average cost of these vehicles will be around Rs 3.5 per kilometer. These vehicles are initially being imported from China, but their assembly will start in the South Asian country in a year or two.
 

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Al-Haj Automotive conducted the line off ceremony of the first Locally assembled Proton X70 that was also attended by Shahid Afridi.

Al-Haj Automotive, the progressive assembler of Proton Vehicles in Pakistan conducted the line off ceremony of the Locally Assembled Proton X70, which was also attended by Shahid Afridi as its chief guest.

Al-Haj worked with technical experts of Proton Malaysia to ensure compliance of locally assembled X70 with Proton Global Quality Standards.


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ghazi52

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Peugeot 2008 is Launching in Pakistan Today

One of the most anticipated new arrivals in the SUV market — Peugeot 2008 — will finally officially debut in Pakistan today.

According to the report, Lucky Motor Corporation Limited (LMCL), which also launched Kia in Pakistan, will reveal its official price and features besides opening bookings for the SUV on 28 January 2022.

A few weeks ago, a viral video on social media showed the 2008 SUV rolling off the local assembly line, which indicates that it will be offered as a locally assembled vehicle
 

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Regarding the auto industry, Khan stated that tractor exports had climbed by 10%, with the country producing 90% of the parts.

However, this is not the first time the premier has quoted the bike industry's apparent success. Last year, Pakistan's prime minister claimed that in the fiscal year 2020-2021, the country saw the highest number of motorcycle sales in its history.

He said that the country's low-income segment is making improvement, citing record-breaking motorcycle sales as evidence. Because motorcycles are known as "aam admi ki sawari," or "common man's ride," the PM claims that rising motorcycle sales indicate "aam admi" empowerment.

Meanwhile, the prices and sales of bikes indicate otherwise. Bike companies raised prices many times in 2021. According reports, Honda increased prices seven times, Yamaha five times, and Suzuki increased prices of their bikes by four times.....
 

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Pakistani netizens are dragging Suzuki for relaunching the Bolan with an AC and 'washing machine knobs'

.After three decades, the van has no airbags, no additional safety measures, just an AC and vibes, according to Twitter users.


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Suzuki Pakistan has re-launched its 30-year-old Suzuki Bolan with an amazing and highly innovative update — an air-conditioner — and Pakistani netizens are as amazed as you, dear reader.

In an age of electric cars and keyless drives, Suzuki's 'update' hasn't impressed anyone, nor has the asking price — a whopping Rs1.3 million, according to Developing Pakistan. On the official Suzuki website, the price of the Bolan is almost Rs1.2 million, however, there is no mention of an air-conditioner in the model online.

Other than the rather bulky AC knobs, the Bolan looks exactly as it did 30 years ago, when it used to ferry children to school in the morning and adults back home after work in the evening.

"And the wait is finally over as Suzuki Bolan with AC is here. Launched by Pakistan Suzuki with a price tag of Rs.1,265,000," Developing Pakistan wrote in a tweet....
 

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