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Pakistan Automobile Industry

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Chinese company Yutong Bus accepted the offer to set up a public transport plant in Sindh following a meeting between provincial minister for transport Sharjeel Inam Memon and Yutong Bus Country Manager Paul Zhang, on Thursday.

The plant would either be set up in Karachi or Hyderabad. The parties agreed to create a 'concrete' proposal regarding the matter by next week.

The plant is to apparently be constructed on 15 to 18 acres of land.

“The Department of Transport is making every effort to set up a public transport plant in Sindh,” Sharjeel Memon said, adding that this venture would improve the public transport system.

According to the transport minister, the project would bring in foreign investment into Pakistan and create new employment opportunities.


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Auto sector posts record sales in FY22​

Dawn
Jul 16, 2022

KARACHI: Despite surging prices, record fuel and interest rates, curbs on auto financing and the suspension of advance booking by some assemblers in May, the sales of cars, jeeps and pickups posted an all-time high in FY22.

However, a marginal decline was seen in the sales of two-and three-wheelers.
Based on the old advance booking orders in hand made a few months back and whose deliveries are being made, total passenger car sales posted a fabulous growth of 55 per cent to 234,180 units in FY22 from 151,182 units in FY21. Suzuki Alto 660cc emerged as the highest selling car with 71,198 units as compared to 37,720 units in FY21, up by 89pc.

According to figures released by the Pakistan Automotive Manufacturers Association (PAMA), the second highest sales in terms of volume were recorded in combined sales of 56,526 units of Toyota Yaris and Corolla as compared to 46,650 units.
Honda Civic and City finished third, thanks to a 39pc increase in sales to 35,197 units, up from 25,276 units in FY21.

Suzuki Cultus and WagonR sales increased by 32pc and 83pc, respectively, to 23,169 and 23,131 units, compared to 17,510 and 12,659 units. Bolan sales increased by 51pc to 12,361 units from 8,196 units. Suzuki Swift sales soared to 6,190 units from 2,316 units after the launch of a new model in April 2022.

Hyundai Elantra and Sonata sales have clocked in at 3,610 and 2,782 units.
The month of June 2022 also proved satisfactory with car sales of 23,547 units as compared to 19,395 units in May 2022.

Among jeeps and pick-ups, Toyota vehicle sales increased to 18,005 units in FY21 from 10,586 units in FY21, while Honda BR-V sales increased by 6pc to 4,255 units from 4,015.

With a 48pc jump, Suzuki Ravi sales stood at 14,230 units as compared to 9,631 units. Hyundai Tucson and Porter sales increased by 31pc and 55pc, respectively, to 4,895 and 1,845 units, up from 3,748 and 1,187 units. Sales of Isuzu D-MAX increased by 50pc to 473 units from 316.

In farm machinery, Fiat sold 58pc more tractors in FY22 than in FY21, totaling 23,942 units, while Massey Ferguson sales fell 1pc to 35,005 from 35,527 units.

PAMA truck members’ sales increased by 57pc to 5,802 units from 3,695 units, indicating improved local and foreign trade and business activities, including import and export goods movement. Bus sales increased by 6.7pc to 696 units, from 652.

Overall two- and three-wheeler sales fell 4.3pc to 1.821 million units, down from 1.903m units.

The assemblers of Honda, Suzuki, and Yamaha sold 1.360 million, 37,846, and 23,289 units, respectively, up from 1.292 million, 24,851, and 19,924 units, a 5pc, 52pc, and 17pc increase despite persistent jump in prices by the assemblers to cash soaring demand.

In contrast, low-priced Chinese assembled bikes like Ravi, Road Prince, and United Auto Motorcycle sales plummeted by 40pc, 36pc, and 28pc in FY22 to 3,563, 89,900, and 265,677 units from 5,941, 141,230, and 368,643 units in FY21.

In three-wheelers, sales of Qingqi, Sazgar, Road Prince, and United stood at 13,935, 15,683, 8,361, and 3,156 in FY22 as compared to 18,753, 15,665, 10,116, and 6,653 units in FY21.

Published in Dawn, July 16th, 2022
 

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KP govt to issues universal numbers plates for vehicles​


The Frontier Post

PESHAWAR (APP): Khyber Pakhtunkhwa Minister for Finance Taimur Salim Jhagra on Friday told the Provincial assembly that the government has started issuing universal number plates for vehicles.
Responding to a question of Khushdil Khan of ANP during the question hour, he said that the new number plate would have the full name of the province, adding that the fee for the new number plate was very nominal to facilitate the people. He said the decision was taken because there were several complaints by the general public that the vehicles bearing KP registration were stopped by Islamabad and Punjab police on every picket and therefore people were reluctant to register their vehicles in KP.
 

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Tractor production increases 16.01pc in FY 2022​


News desk
July 28, 2022

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The production of farm tractors in the country witnessed an increase of 16.01 percent to 58,880 units during the twelve months of fiscal year 2021-22, against the production of 50,751 units in same months of last year.

During the period under review, the production of trucks also witnessed an increasing trend as it went up from 3,808 units as compared to 5,659 units, showing an increase of 48.60 percent, according to Pakistan Automobile Manufacturing Association (PAMA) revealed.

Production of pickups, Light Commercial Vehicle (LCVs) and Jeeps also rose by 42.96 percent to 44,421 units during the fiscal year under review from 31,072 units during fiscal year of last year.—INP

Similarly, the production of buses witnessed an increase of 15.96 percent from 570 units to 661 units during the period under review, PAMA added.

Meanwhile, the production of passenger cars also posted a record increase of 49.17 percent as it plunged to 226,433 units during the period under review against the production of 151,794 units during July-June 2020-21, the data revealed.

The manufacturing of motorcycles and three wheelers in the country plunged to 1826,467 units during July-June from the production of 1902,415 units during July-June, showing nominal decrease of 3.99 percent, it added.—INP
 

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Made in Pakistan
MUVA electric rickshaws are made in Pakistan completely from scratch at their state-of-the-art facility in Lahore.
MUVA electric rickshaw is an ultra-light commercial EV that seats a driver and three passengers.


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Carmakers may be forced to use local parts​

Manufacturing of auto parts in country to drive prices down

Usman Hanif
August 03, 2022


The local manufacturing of auto parts can provide some relief from the rising tide of inflation. The government is expected to bind car producers through some regulations to increase the levels of localisation. At a corporate briefing, the management of Honda Atlas Cars (HCAR) disclosed efforts for localisation of different auto products and parts.

For example, Honda City has achieved a localisation level of 70%, Civic has achieved 60% and BR-V 50%, according to a report of AL Habib Capital Markets’ auto analyst Asad Ali. “However, in value terms, this number is reduced to 25% to 30% due to the absence of auto-grade steel industry and highend technology, which requires consistent policy and heavy investment.” As per Honda Atlas, they have localised all parts, which can be done in Pakistan.

Due to the lack of technology, the management indicated that all completely knocked down (CKD) parts cannot be localised, according to Aba Ali Habib Securities’ auto analyst Ali Asif. For this, heavy investment is required, which the management is considering at the moment. HCAR announced a profit of Rs658 million for the first quarter (1QMY22), as compared to a profit of Rs928 million in the same period of last year.

The decrease in profit was attributed to rupee devaluation, higher material prices and higher freight costs. HCAR has recently increased prices by 22% to 24% due to steep devaluation in line with other major industry players. After the drastic fall of Pakistani rupee against the dollar, the company set the parity for prices at Rs235. That said, the company expects gross margins to be in the range of 3% to 3.5% as they have not fully transferred the cost pressures to consumers and are themselves taking a hit.

To promote localisation, the government needs to make a consistent policy for long-term auto sector growth, said Asad Ali. They need to incentivise the local vendors to manufacture high-tech parts as this requires huge investment. In a similar manner, there is a need to bring autograde steel players into the country. However, attracting investment in this business would be difficult if auto sales are less than 0.5 million, he said. “More localisation is the answer to the current skyhigh prices of vehicles,” said Paapam Chairman Abdul Rehman Aizaz.

The government will bind the original equipment manufacturers (OEMs) through some kind of regulation, he said. For example, 5% localisation per year might be a good starting point for the industry. The auto manufacturers have to work on technology to increase utilisation, said Topline Securities’ senior analyst Sunny Kumar. This will also require a significant amount of investment so that the manufacturers can get the same quality material as the one imported.

Previously, more than 40% of cars sold used to be purchased on consumer financing but due to rapid increase in interest rates and SBP amendments to auto financing tenure, this has reduced to 30%. Additionally, 65% of the total auto sales come from urban areas. Looking towards the future, FY23 is expected to be a tough one where a decline of 25% to 35% in the auto industry is on the cards. Despite these challenges, HCAR is optimistic and intends to reduce this gap with the launch of new cars.
 

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Syed Nasir Ali Shah owner of Frontier Motors Peshawar..

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A Look Back at Frontier Motors History..

Among Peshawar's automobile establishments, Frontier Motors was a prominent name. It was located on the main Saddar Road next to Lansdowne (later Falaksair) Cinema, situated exactly where the Bilour Plaza stands today. It was a General Motors dealership which also included BEDFORD, VAUXHALL and OLDSMOBILE.

A second branch of Frontier Motors was located in Rawalpindi in Saddar. It was a General Motors dealership which included BEDFORD, VAUXHALL and OLDSMOBILE (where now Faisal Bank stands, just besides Mei Kong restaurant) on Haider Road (formerly Lawrence Road).

The Peshawar showroom lasted till late 1950s and the Rawalpindi branch remained till 1970s which also served as a Tyre Retreading Plant by the name Pak Re-Rubbering towards the end.
Courtesy : Ali Jan
 

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MG Motors now says it will introduce three CKD models in Pakistan

  • Company again expresses intent to make its plant operational during current fiscal year
Bilal Hussain
August 11, 2022

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MG Motors General Manager Syed Asif Ahmed has expressed his company’s intent to launch three completely knocked down (CKD) models in Pakistan including the MG-HS, expanding its product line that has so far been dominated by imported units of the vehicle.

“MG’s five-year plan consists of introducing three models,” said Ahmed in a written response to Business Recorder.

The MG-GT, which is seen as a competitor to the Honda Civic, will also be part of the expansion plan in Pakistan, shared another official on condition of anonymity.

The company did not convey information on its third CKD model, and hesitated to share pricing details of the vehicles it plans to launch in Pakistan.

Pakistan is a “very CKD-oriented market,” Ahmed said while referring to the vehicles that are assembled at a local plant as opposed to completely built units (CBUs) that are imported.

“We are working closely with the Engineering Development Board (EDB). Despite global logistical crises, especially in China after Covid-19 lockdown and restrictions, plant equipment has arrived in Pakistan. We are working day and night to get it operational in the current fiscal year,” he said.

Ahmed’s statement reiterates the company’s stance that it wants to roll out locally-assembled MG vehicles in the country. While it has been importing units for over two years, introducing a locally-assembled lineup has so far eluded it.

MG JW Automobile Pakistan is a joint venture between Saic Motor International (Smil), a subsidiary of Shanghai Automotive Industry Corporation (SAIC), and JW SEZ Group.

With an investment of $100 million, SAIC holds 51% shares in MG JW Automobile Pakistan, which intends to assemble vehicles under the brand name of MG at its assembly plant on Raiwind Road, Lahore.

“We want to provide the Pakistan customers with multiple options and features in our vehicles,” he said.

Ahmed also called safety features in locally-assembled vehicles “considerably weak”, and vowed to stick to global standards and features for MG vehicles, claiming that these would be without any “extra charges”.

He emphasised that MG is “not in the race to become the biggest player” in Pakistan.
 

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Locally assembled Haval H6 about to launch in Pakistan!!
🇵🇰

As per the reports two local variants are about to be launched.
1.5T FWD and 2.0T AWD.


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An Electric Vehicles charging station has been installed and inaugurated by Pakistan State Oil (PSO) at the Bhera service area on the Islamabad-Lahore highway (M2).

Inauguration festivities were held in Rawalpindi and is a good step towards increasing the feasibility of Electric Vehicles in Pakistan. For the convenience of commuters going from Lahore to Islamabad and vice versa, the charging station is reportedly available on both north and southbound routes.

The fast charging capabilities of the charging stations allow commuters to save valuable time. To make it easier for EV users to travel between the two cities and beyond, PSO has situated these stations midway between Lahore and Islamabad.

The Oil Marketing Company (OMC) claims that in order to ensure the normalization of EVs in Pakistan, it seeks to further extend its network of EV charging stations.

Last month, two EV charging stations next to M2 were officially opened by Pakistan’s Tesla Industries. The first facility is in Bhera, and the second is at Pindi Bhattian.

Both charging stations contain a 120 kWh charger that requires 40 minutes to fully charge a 70 kWh battery and a 60 kWh charger that requires more than an hour.
Both stations have executive lounges where travellers may unwind while their cars are refueling. The business has added another 60 kWh charger at Hardees near Gujrat for GT Road commuters.

In Pakistan, the EV charging infrastructure is progressively growing. However, the public continues to be skeptical about the lack of EV charging infrastructure and its sluggish development. Other than that, EVs are extremely expensive, which slows down Pakistan’s adoption of them.
 

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Honda Pakistan Exported 12,000 Bikes in Last 6 Months​


ByAisha Saleem
October 6, 2022

From last six month, Atlas Group has achieved a milestone through an outstanding export. Firm approximately exported 12,000 motorcycles with its additional auto parts of cost nearly US$ 2million.

As per details shared by the company, such export shows the acceptability of auto parts made in Pakistan in an international markets.

Atlas spokesperson stated that, “The company is looking at more export markets for motorcycles and parts in future.

New parts and models are under study for their suitability for export. Evaluation criteria places special emphasis on them having potential of becoming part of the global supply chain,”
Motorcycle industry could have major growth as the representative expressed hope..
 

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Pakistani tractors set to plough foreign land

Khalid Hasnain
October 7, 2022

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“We are soon launching soil surveys in these countries in a bid to manufacture tractors compatible with their agricultural land. The tractors we are manufacturing for Pakistan are not compatible with the target countries’ land,” he added. In this case, he said, the company also plans to deploy experienced export-focused people as we aim to execute this plan in these countries by starting exports of our Pakistan-based technologies, which are compatible with their farmers and the soil conditions.

About the impact of the ban imposed by the government on the spare parts’ imports in a bid to cut the import bill and enhance exports, Mr Ikram said the government should separately examine the tractor manufacturing industry and the automobile industry. Fortunately, he said, 90 per cent of the parts of tractors are being manufactured by this industry in Pakistan. “However, we import only 10 per cent of the parts, including fuel injectors.” But due to the ban, our manufacturing is seriously disturbed and the government would have to look into this issue since it related to food security,” he explained, requesting the government to remove some vital tractor parts from the list under the HS code.

He said his company, in the last eight or nine months, manufactured over 42,000 tractors besides allowing an increase in the warranty period of new model tractors up to 18 months.

“If we see our last 10 years, we have so far manufactured 400,000 tractors, attaining 46 percent share — the highest one so far - in the market.

The company while commemorating 40 years of its existence, introduced the 2023 models.

Published in Dawn, October 7th, 2022
 

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