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Pakistan Automobile Industry

Govt to investigate the failure of automotive firms in increasing production



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The federal cabinet has reportedly directed the Ministry of Industries and Production (MoIP) to probe the failure of automotive firms in increasing production capacity as they have been unable to meet market demand thereby causing a surge in prices and black marketing of locally produced vehicles.

According to a report by Profit, the Cabinet met on Tuesday to discuss the shortage of locally manufactured vehicles despite increasing demand. As a result of the inability of production capacity to catch up with demand, black marketing of vehicles and the purchase of vehicles ‘on money’ have risen.

The report states that according to a source, Prime Minister Imran Khan himself ordered Minister of Industries Hammad Azhar to investigate the matter.

The source went on to claim that members of the Cabinet had expressed concern over major automotive companies, including Honda, Toyota, and Suzuki not being able to enhance the capacity of their production despite running their business in the country for more than three decades.

The Cabinet was informed that as per the auto policy, the Japanese companies had also failed to localize vehicle parts and were still importing the majority of parts from Japan.

However, a representative of an auto firm claimed that auto companies have long been advising the government to impose taxes on the resale of new vehicles for a given time period to discourage premiums.

According to Profit’s report, the representative further said that setting up manufacturing plants of various parts needs huge investment which could be made according to space in the market, keeping in view the long term policy.

Unfortunately, policies in the country keep changing which risk the major investment of investors,” the representative stated.

Interestingly enough, officials of the Engineering Development Board (EDB) were unaware of the Cabinet’s direction. Despite repeated attempts made by Profit to get in touch, secretary Industries did not attend the phone to comment on the issue.
Furthermore, sources said that the demand for vehicles in the country has increased after the government’s decision to restrict the import of used vehicles through imposing strict conditions.


The restrictions on the import of used cars through the baggage system have almost halted imports,” the sources reportedly said.

According to Profit, Indus Motors Chief Executive Officer (CEO) Ali Asghar Jamali said that they were open to any investigation.
 
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Pakistan's Millat to export 600 Tractors to Angola


The first consignment of 150 tractors has already been delivered.

It seems that Pakistani engineering products are increasing in popularity among #African countries after Pakistan’s leading tractor manufacturer, Millat #Tractors have managed to secure an order for exporting 600 tractors to Angola.

“I wish to congratulate Millat Tractors for securing export order for 600 tractors to Angola,” said Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood. The advisor informed that the first consignment of 150 tractors has already been delivered. “This breakthrough is in line with our ‘Look Africa Policy’” he said.



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Govt’s New Auto Policy to End Monopoly of Big Automakers


As per the reports, the government is planning to formulate a new auto policy to end the monopoly of certain car companies in the local automotive market.

It also highlighted that the Auto Development Policy (ADP) 2016-21 will expire by 30 June, and that the Ministry of Industries and Production has stated that the new policy will allow for the import of cars.

The policy provided numerous concessions and benefits to the automakers seeking to enter the Pakistani market. Moreover, owing to the current ADP, numerous carmakers had either entered or made their comebacks to a warm reception by Pakistani consumers.

The report further states that the new policy will revoke the concessions given to entrants and that the rates of the taxes on the import of cars will be reduced. Additional concessions will be considered to encourage the import of cars.

A few days ago, the federal government had directed the Ministry of Industries and Production (MoIP) to begin an investigation of the automotive firms to determine the details of their inability to increase production capacity.

The automakers’ inability to meet the demands of the local market has given rise to the illegal premium culture whereby certain dealerships add an additional amount over a car’s MSRP.

The introduction of the new policy for the auto industry is definitely a logical step forward. However, encouraging imports instead of country-based manufacturing is a questionable move as it goes against Prime Minister Imran Khan’s vision for a self-reliant and stable auto sector of Pakistan


©ProPakistani


Image may contain: car and outdoor

 

Sazgar-BAIC to launch four cars in Pakistan this year


Sazgar, the largest rikshaw-maker in Pakistan, is set to enter the car market with BAIC D20 that has a hatchback and a sedan version. It plans to launch a crossover X25 and an off-roader SUV BJ40-Plus.

The BAIC group is the third largest automotive group in China, the country which manufactures 26 million vehicles a year — the highest in the world. BAIC sells 3.5 million cars per annum.

Sazgar prides itself for exporting three-wheelers to 20 countries, including Japan.

Sazgar’s assembly line is near completion and trial production may start soon, according to sources privy to the matter. The company may start selling its locally assembled cars within next three months.

With its entry in the car business, the company wants to cater to the entire market with its hatchback, sedan, crossover and SUV. The cars from hatchback to the SUV will be priced between Rs2 million and Rs6 million.



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Govt’s New Auto Policy to End Monopoly of Big Automakers

As per the reports, the government is planning to formulate a new auto policy to end the monopoly of certain car companies in the local automotive market.

It also highlighted that the Auto Development Policy (ADP) 2016-21 will expire by 30 June, and that the Ministry of Industries and Production has stated that the new policy will allow for the import of cars.

The policy provided numerous concessions and benefits to the automakers seeking to enter the Pakistani market. Moreover, owing to the current ADP, numerous carmakers had either entered or made their comebacks to a warm reception by Pakistani consumers.

The report further states that the new policy will revoke the concessions given to entrants and that the rates of the taxes on the import of cars will be reduced. Additional concessions will be considered to encourage the import of cars.

A few days ago, the federal government had directed the Ministry of Industries and Production (MoIP) to begin an investigation of the automotive firms to determine the details of their inability to increase production capacity.

The automakers’ inability to meet the demands of the local market has given rise to the illegal premium culture whereby certain dealerships add an additional amount over a car’s MSRP.

The introduction of the new policy for the auto industry is definitely a logical step forward. However, encouraging imports instead of country-based manufacturing is a questionable move as it goes against Prime Minister Imran Khan’s vision for a self-reliant and stable auto sector of Pakistan


©ProPakistani


Image may contain: car and outdoor

There is the problem of whether or not, Pakistan's foreign exchange levels can support this policy. A better policy would be to further liberalise the manufacture of cars and allow new entrants to manufacture in Pakistan by providing tax-free manufacturing incentives to new entrants ?

I suspect that new policy will cause more problems to foreign exchange and import levels, then it solves.
 

Changan Alsvin price announced.


Changan Alsvin 1.37L MT : 2,199,000/-
Changan Alsvin 1.5L DCT : 2,399,000/-
Changan Alsvin 1.5L DCT Lumiere : 2,549,000/-



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SAIC Motors to Establish Manufacturing Plant

Pakistan’s automotive industry has been making a lot of headlines lately owing to the entry of numerous new automakers. A recent development has revealed that SAIC Motors may be planning to set up shop in Pakistan.



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Car sales rise 15% in in 2020

Car sales rise 15% in in 2020

https://nation.com.pk/NewsSource/web-desk


Web Desk
January 12, 2021


Car sales in Pakistan increased 18% to 78,910 units during the first six months of the current fiscal year.

Industry data showed consumer demand is coming back to normal aided by low interest rates. Suzuki, Indus Motors, Honda and Hyundai sales' were recorded at 67,019 units in the corresponding period last year, Topline Securities said, citing data from the Pakistan Automotive Manufacturers Association. Demand is expected to continue increasing during the year.

Passenger car sales increased 12.6 percent to 11,247 units in December from 9,987 units sold during the same period in 2019. Moreover, sales remained lower against 11,914 units sold in November 2020. Jeeps, buses, tractors, three-wheelers and motorcycles have also shown an increase in sales.
 
Proficient - A revolution denied - A dream killed

When North Karachi challenged Japan!
The automobile which was made in Pakistan

The Dream in early 50s, Its Mid 1980s interpretation - When a local engineer Mr KhaliIur Rehman (Marhoom) produced this automobile which looked exactly like Suzuki pickup but was made almost completely in Pakistan. It was examined and approved by many national & international authorities viz Pakistan Army, World Bank Delegation, Technical Expert Team of General Motors USA, Japanese Expert Team, Pakistan Standard Institution and many others. It had a showroom in Tariq road & a very crude assembly line in North Karachi where hand made car parts were made - at a factory which was a two thousand yard plot with a boundary wall and a three-story, unpainted brick structure in the middle.
In spite of import duties and taxes that have been paid, the Proficient is still available at three quarters of the price of a Suzuki. Thanks to the Govt and Bureaucracy red tape we successfully destroyed this project🙁
This great entrepreneur and son of soil Khalil ur Rahman passed away in 1993 with a broken heart.
May Allah rest his soul in heaven - Ameen
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Proficient - A revolution denied - A dream killed

When North Karachi challenged Japan!
The automobile which was made in Pakistan

The Dream in early 50s, Its Mid 1980s interpretation - When a local engineer Mr KhaliIur Rehman (Marhoom) produced this automobile which looked exactly like Suzuki pickup but was made almost completely in Pakistan. It was examined and approved by many national & international authorities viz Pakistan Army, World Bank Delegation, Technical Expert Team of General Motors USA, Japanese Expert Team, Pakistan Standard Institution and many others. It had a showroom in Tariq road & a very crude assembly line in North Karachi where hand made car parts were made - at a factory which was a two thousand yard plot with a boundary wall and a three-story, unpainted brick structure in the middle.
In spite of import duties and taxes that have been paid, the Proficient is still available at three quarters of the price of a Suzuki. Thanks to the Govt and Bureaucracy red tape we successfully destroyed this project🙁
This great entrepreneur and son of soil Khalil ur Rahman passed away in 1993 with a broken heart.
May Allah rest his soul in heaven - Ameen
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The sad part is that the company was also casting and machining diesel engine parts and installed engine test benches as well. It was a 100% indigenous effort. Just imagine had we supported such industrialists back then, how strong would have been the trickle effects on our indigenous defense projects in general and powertrains, specifically diesel engine development in particular!
 
@Shah_Deu
Though it seemed 40 years late tech than EU at that time but certainly it would have growon immensely. But I believe we are still making a lot of better parts than shown in the picture.
So we can make a better quality car own our own than of 80s even today. But I think we cannot make a 95 onward EU car indigenously.
 
@Shah_Deu
Though it seemed 40 years late tech than EU at that time but certainly it would have growon immensely. But I believe we are still making a lot of better parts than shown in the picture.
So we can make a better quality car own our own than of 80s even today. But I think we cannot make a 95 onward EU car indigenously.
Our automotive industry has evolved undoubtedly, but we still dont have a respectable OEM of our own. Our vendor industry is catering for the needs of foreign OEMs working here like Toyota, Honda, Suzuki and more recently some new entrants.

Having only foreign OEMs in the country is not ideal, because then we are only manufacturing for them and that too on a limited scale. The R&D sector practically is non-existent. Had we had our own OEMs, we would be designing and developing ourselves. And that is where the value lies. The most critical parts like tank engines are the hardest to outsource if the supplier country decides to sanction you.

R&D sector would have created a highly technical workforce and an indigenous technical base. Without R&D, licensed manufacturing means nothing for the strategic projects. We can not ask Atlas Honda or Toyota Indus or Kia Lucky Motors to contribute in developing, for instance, tank engines or even lesser APVs and tailored trucks for the forces. Since they dont do any R&D and can just produce some licensed products for their respective OEMs, the OEMs eventually take a huge chunk of profits which then leaves the country without being invested back here.

I can give the example of germany with a huge indigenous commercial vehicle industry, and the country has gained huge dividends of that in its defense sector too and their factories are fully capable of converting and start churning tanks and APVs at an unprecedented level should the need arise to the scale of what we saw in the two world wars.
 
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The most critical parts like tank engines are the hardest to outsource if the supplier country decides to sanction you.
That is the main thing... we cnanot develop engines for tanks, drones, cruise missiles and for sure jets. That requires R&D and not just manufacturing skills, like licences production of an engine. I still wonder who makes the engine material? if it is cast iron then it is not a big thing. Else, we may import even engines as we cannot make good alloys.
I can give the example of germany with a huge indigenous commercial vehicle industry, and the country has gained huge dividends of that in its defense sector too and their factories are fully capable of converting and start churning tanks
German are too superior in chemistry. automotive, genetics etc
I mean name it best tank, cruise missiles, ballistics missiles, RPGs, submarines, cars, autoban, clean energy, euro fighter, inventor of ammonia/dyes/.. mathematicians like Liebniz, Gauss, etc
just see this figure.
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DE: Germany , EP: european patent offcie..
these are some heat recovery devices.. see Germany share is as much as combined EU...
 

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