Pakistan Automobile Industry

[ghazi52]

The country's auto industry on Thursday opposed unrestricted incentives to Electric Vehicles (EVs) as investors can misuse the incentive, well-informed sources in Engineering Development Board (EDB) told Business Recorder. This opposition came at a time when some investors are preparing to invest in EVs as per the policy of federal government. The meeting was convened in the Ministry of Industries and Production to discuss composition of Working Group, Terms of References ToRs) of Working Group and reconstitution of AIDC.

Another purpose of the meeting was to discuss unconfirmed minutes of the 27th meeting of AIDC, held in November 2018. As per the minutes, the policy dictates that the new investor's policy shall be reviewed after every two years by a working group formed by AIDC.

The sources said discussion on Electric Vehicles (EVs) attracted interest of those present. EDB requested all participants to share proposals regarding EVs to formulate policy framework for companies which aspire to bring EVs.

Some participants shared concerns arguing that the EVs have the same parts as the fuel run cars so the incentive should only be given in battery or EV specific parts not the whole vehicle.

They were of the view that this is necessary to protect localization already achieved in the country. Some participants emphasized that the definition of EV, hybrid, semi EV etc should be well defined in the policy beyond any doubt.

According to sources, there was a concern shared in the meeting that this new category may become an avenue to import parts and vehicles at next to no tariff and turn the industry upside down.

The participants appreciated EDB and FBR for their role in removal Regulatory Duty (RD) from parts imported under SRO 655.

It was also pointed out that AIDC should be reconstituted and its ToRs be reviewed because there are many petty procedural issues that are being referred to AIDC.

After a threadbare discussion on the matter it was agreed that a Working Group constituted by the AIDC does not have jurisdiction to reconstitute AIDC. The FBR representative also shared that according to rules of business of Government of Pakistan the TORs of AIDC can not be reviewed.

The sources said that some participants inquired that if such matters, petty or not, cannot be discussed in AIDC then what is the forum to bring up those issues?

A detailed discussion within members of Working Group was generated regarding new entrants. The representatives of new entrant companies, that have invested billions of rupees in Pakistan as a result of favourable Greenfield and Brownfield options, were of the view that as there is no Association of such companies as yet, therefore it should be decided which companies will be members of this forum. It was decided that two big companies on the basis of investment from Chinese companies, Korean companies and European companies will become members of the working group.

The sources further stated that on TORs of Working Group formed on Thursday, participants wanted clarity on whether the Working Group will review the "new investor policy" or the ADP 2016-21.

Acting CEO EDB, who according to the Chairman EDB Board will be replaced soon with permanent and competent CEO, responded that the Working Group will only review the procedural issues that are not given in ADP 2016-21 and have no mandate to change the policy itself.

Earlier, PAMA, in its letter had made it clear that reconstitution of AIDC is neither the jurisdiction nor the competence of the Working Group. PAMA argued that AIDC was constituted on June 2, 2016, adding that only its composition "shall change" after every two years, which may effect by the competent authority.

The incumbent AIDC is legally hit by the mandatory requirement of change of composition every two years which time has lapsed on June 1, 2018. Therefore, it would be lawful to first have the requisite change in the composition of AIDC notified.

After submitting arguments, against the EDB's meeting agenda, PAMA requested EDB to postpone the meeting of February 21, 2019 till the re-composition of the AIDC but EDB did not entertain the request of auto assemblers.

Besides officials of the MoI&P and EDB, representatives of different auto assemblers also participated in the meeting and gave suggestions on the three proposed agenda items.

Copyright Business Recorder, 2019

 

[AbdullahTariq694]

As per my information Road prince Motorcycle Company is launching a car. In the half of this year 800cc category car price between 7 to 8.5 lac according to my information.If someone has information about this topic please share it.

 

[Tamiyah]

View attachment 541107 As per my information Road prince Motorcycle Company is launching a car. In the half of this year 800cc category car price between 7 to 8.5 lac according to my information.If someone has information about this topic please share it.

Maybe post #204 and #210 have what you need

 

[Pindi Boy]

BAIC Motors– a Chinese state-owned car maker, in collaboration with Sazgar is introducing BAIC BJ40 Plus (SUV), Senova X25 (Crossover) and Senova D20 (Hatchback). Note here that Sazgar Engineering Works has already been granted Category “A” Greenfield status by the Ministry of Industries & Production of Pakistan.

Sazgar Engineering Works receives Greenfield status
Now coming to the vehicles the company is planning to introduce:

BAIC BJ40 Plus:
BJ40 Plus is a proper off-road vehicle produced by BAIC Motors. The vehicle first came in production in 2013 as BJ40– a two-door SUV vehicle, and after that, in 2016 its 4-door version debuted which was named as BJ40 L. It has a strong resemblance to iconic Jeep Wrangler. BAIC BJ40 Plus is basically a facelift of BJ40.

It comes in two different engine options; 2.0 Turbo and 2.3 Turbo coupled with manual and auto transmission, respectively. The 2.0 L engine makes 204 hp and 280 Nm of torque whereas the other one, 2.3 L produces 250 hp and 350 Nm of torque. The SUV is equipped with all the bells and the whistles. The styling of the exterior and the interior is awe-inspiring. Let’s wait and see what engine option the company will give to its customers in Pakistan.

BAIC Senova X25:
The other vehicle is BAIC Senova X25. It’s a subcompact crossover which debuted in 2015. The crossover comes equipped with 1.5 L gasoline engine mated to both auto and manual transmission. See the pictures below:

BAIC Senova D20:
Lastly, the company is bringing a 5-door hatchback in the country namely Senova D20. It is produced by BAIC under the Senova brand. The car made its way through the production in 2012. It’s a front-wheel drive that comes with two engine options, a 1.3 L gasoline engine and 1.5 L gasoline coupled with 5-speed auto and manual transmission. Let’s wait and see what engine and transmission options the company will give to Pakistani consumers.

Sazgar has also been exporting auto rickshaws to Japan for quite some time now; making Pakistani built rickshaws known internationally.

 

[ghazi52]

Suzuki Mehran vs. United Bravo vs. Prince Pearl: A brief comparison!

 

[ghazi52]

The Event Coverage of Changan’s Assembly Plant in Chongqing, China

Cars have proven to be one of the biggest inventions of the 20th century, considering the magnitude of impact on our daily lives. Automobile manufacturing, while depending on research and automation to further innovate and improve, also lays substantial emphasis on the capability and quality of the assembly system. As most of us know, Pakistan lacks severely in Auto-Mobile research and almost all major cars including Honda’s, Toyota’s and Suzuki’s are only assembled in Pakistan, thus for the Pakistani Market, a good litmus remains the capability of one company in assembling Quality products.

Changan’s Assembly Plant located remotely in the outskirts of Chongqing, provided to be a refreshing take on how quality products and proper systems are implemented. The Yuzui factory; is house to the manufacturing and assembly plants. Given, that the efforts and investment being put into Research and Development by Chinese companies, is a story in its own, the Yuzui factory showed strong capability and infrastructure in materializing what is conceived in the R&D phase.

Changan’s Assembly Plant located remotely in the outskirts of Chongqing, provided to be a refreshing take on how quality products and proper systems are implemented. The Yuzui factory; is house to the manufacturing and assembly plants. Given, that the efforts and investment being put into Research and Development by Chinese companies, is a story in its own, the Yuzui factory showed strong capability and infrastructure in materializing what is conceived in the R&D phase.

Our visit to the said installation proved to be very beneficial, as the top models, of which some have been introduced and the others that will be released in Pakistan, are being assembled in the same plants. Take my word for it people; the installation is definitely world class, far better than any of the current giants in the automobile industry. On the top of my list to see was the model CX70T that has already been revealed in Pakistan; a car which has also been discussed in detail in our blogs. CX70T is a turbocharged crossover SUV, we believe is on the cards for a near future release in Pakistan. A800, is the second model that has also been tipped to enter the Pakistan market, a 7 seater MPV which is also being assembled at the said Yuzui plant.

Briefed by Yuzui officials, the plant has a capacity of producing around 300,000 units of vehicles annually, and spans an area of 333.350 square meters.

Pertaining to current industry trends, the plant boasts overall process automation of 70%. This includes the supply and subsequent welding of the parts. Welding alone has an automation factor of 80%. It takes 48 man hours for a car to be completed, The plant follows an assembly line system, where the car stops for 70 seconds at each station before moving on to the next, with each station being there for a specific job. Around 3000 employees work on the plant.

Changan Automobile follows IATF-16949 and has established an end-to-end quality management system covering the whole process of R&D, production, supply chain and marketing services. IATF stands for International Automotive Task Force – an ad hoc group of automotive manufacturers and their respective trade associations formed to provide improved quality products to automotive customers worldwide whereas IATF-16949 is one of the automotive industry’s most widely used international standards for quality management. IATF includes companies like Daimler AG, BMW, General Motors, PSA Group, Ford Motor Company and many more. Witnessing all of this, it has become clearly evident that Changan Automobile also follows the same industry-wide standards other international automakers follow.

 

[ghazi52]

BYD to Introduce Electric Vehicles in Pakistan

Rahmat Group have signed an agreement with BYD– China’s largest electric vehicle maker for assembly and manufacturing of electric vehicles (EVs) in Pakistan. According to available information, various EVs including buses, passenger cars, vans, batteries, chargers and related components will not only be made for Pakistani market, but will serve the region as well.

According to Shaukat Qureshi, CEO of Rahmat Group, the company has also shared the advantages of EVs with the Prime Minister of Pakistan, Imran Khan via a letter. As per which the EVs would primarily benefit motorbike owners, who will be able to save up to Rs 4,000 a month on account of fuel costs, alongside zero maintenance. Small passenger cars and LCV owners would be able to save up to Rs 25,000 per month followed by coaches and buses which will see Rs 300,000 to up to 500,000 savings per month. The EVs also produce zero emissions which is a big bonus to tackle environmental pollution concerns.

Backed by US billionaire Warren Buffett, BYD has footprints spanning over 6 continents, 50 countries and more than 200 cities across the world, with largest market share in the USA, followed by Europe. BYD has over 40 manufacturing sites, with a workforce of 230,000+ employees worldwide.

Related: Rahmat Group to Establish Electric Vehicle Complex at Nooriabad

Shaukat Qureshi further added that BYD intends to set up charging stations in collaboration with Total Parco. Last year, Rahmat Group signed at least 14 MoUs and technical collaboration agreements with various Chinese companies to establish Electrical Complex at Nooriabad. The company will also develop two wheelers through MOUs with other companies

 

[ghazi52]

Malaysia's Proton to set up car factory in Karachi

Highlights

• Malaysian car manufacturing company Proton has announced to establish a factory in Pakistan
• This would be the company's first assembly plant set up in any South Asian country
• The car plant will be established in Karachi, also known as the economic hub of Pakistan
• Proton was established in 1983 and has so far sold 3 million cars

KARACHI: Renowned Malaysian car manufacturing company Proton has announced to establish a factory in Pakistan, Malaysian High Commissioner Ikram Mohammad Ibrahim said on Thursday.

This would be the company's first assembly plant set up in any South Asian country.

Ibrahim added that the announcement will be made formally by Malaysian Prime Minister Mahathir Mohammad during his visit to Pakistan.

The agreement between Pakistan and Malaysia will be signed on Saturday, he said.

The High Commissioner further went on to say that the car plant will be established in Karachi, also known as the economic hub of Pakistan.

The Malaysian-based corporation, Proton was established in 1983 and has so far sold 3 million cars.

Proton cars are sold in more than 25 countries including Britain, Singapore and Australia.

 

[ghazi52]

Swedish firm to set up modern vehicle inspection centre at Rawat
Transport officials claim the modern inspection method will be helpful in controlling the road accidents and entering this sector into a modern era.”


Abandoning decades-old transport inspection system, Rawalpindi city will have a modern vehicle inspection, certification station in Rawat by the end of March.

According to Regional Transport Authority (RTA) official, the Punjab government had made mandatory for commercial vehicles in passenger and freight sector to pass fitness test of OPUS Inspection, a Swedish firm which would start its operations here soon as land has been allotted to the firm in Rawat at G.T. Road and the arrangements to inaugurate the facility are being finalised.

Opus Inspection, the Swedish firm, is establishing 39 vehicle inspection and certification stations (VICS) in all 36 districts of the province. Stations have already been made operational in Lahore, he added.

 

[ghazi52]

Master Motor to start assembling pickups and vans in April

Master Motor Corporation, in collaboration with the Chinese auto leader Changan, is all set to kick-start the production of light commercial and passenger vehicles in April.

The $100-million investment venture, with Changan owning a 30% stake and Master Motor the remaining 70%, is going to assemble M9 and M8 pickups, and Changan Karwan van from the next month. The company also aims to assemble sports utility vehicle (SUV) CX70 in future, said an official, associated with the joint venture.

In January, the company first imported the completely built units (CBU) of Changan Karwan van and M9 pickup.

 

[ghazi52]

Master Motors has got a Greenfield status, which offers relaxation in taxes to new players. “This is the right time for the company to start assembling the vehicles as demand has picked up due to the removal of ban on non-filers of tax returns,” said Daniyal Adil, an analyst at Topline Securities.

The joint venture aims to meet an initial capacity of 30,000 units per annum. It has future plans to export right-hand vehicles to SAARC and ASEAN countries as well, especially Malaysia and Indonesia, according to the company official.

The auto imports have almost ceased due to strict conditions by the government. Last year, the volume of imported vehicles was 70,000 units annually, out of which 80% vehicles were less than 1300cc engines.

“It’s a big chunk, which will, of course, be available to these new locale assemblers,” said Adil. He said that even though, demand-wise, it is a good opportunity for incoming players, the competition will increase and margins of companies will contract. Many new entrants are entering Pakistan’s market as the country has a motorisation rate of only 18 vehicles in 1,000 people, which is a huge opportunity to tap, the analyst added.

Moreover, Kia Motor’s local production will commence in the first quarter of financial year 2019-20; while in early 2019, Hyundai will mark its entry, following six other players that have shown interest in the Pakistani market.

 

[ghazi52]

The Wait is Finally Over! Khalid Mushtaq Motors announces CBU operations of Mushtaq KY10 Pickup Truck on March 30th 2019.

 

[ghazi52]

Pakistan’s auto industry capacity to reach 600,000 cars by 2021

The current capacity of the local auto industry is 285,000 cars, which are expected to reach 600,000 by 2021, said Indus Motor Company CEO Ali Asghar Jamali.

He told the Senate Standing Committee on Production and Industries that the government should adopt wholesale-retail mechanism, as is practiced globally, to increase efficiency of the auto sector. He added that this mechanism can curb menace of premiums, which burdens end users. He said that the motorization rate of 18 cars per thousand persons shows there is huge potential for the auto industry in this sector as Pakistan will be a 5.35-million units market by 2025.

 

[ghazi52]

Auto sales crawl up 2% in March 2019

Pakistan’s auto sales increased 2% to 22,866 units in March 2019, according to the Pakistan Automotive Manufacturers Association (PAMA). Sales were recorded at 22,380 units in March 2018.

The meagre growth came on the back of a general slowdown in the economy.

On a month-on-month basis, the sales were up 14% in March 2019 from 20,117 units in February 2019. On the contrary, sales in first nine months of FY19 declined 4% to 185,000 units.

 

[ghazi52]