What's new

Pakistan Automobile Industry

.,.,.,

IMC set to introduce locally-assembled hybrid SUV

Recorder
June 22, 2023

KARACHI: The Indus Motor Company (IMC), amidst a challenging economic climate and a downturn in auto manufacturing, is set to achieve a remarkable feat by introducing Pakistan’s first-ever “Make in Pakistan” Hybrid SUV.

The IMC’s commitment to the national economy, reducing carbon emissions, and creating superior vehicles for customers is exemplified by this significant milestone.

In September 2021, the IMC had announced an impressive investment of over US 100 million dollars for the local production of Hybrid Electric Vehicles (HEV). This move aligns with Toyota’s global vision of transitioning toward carbon neutrality and positions IMC as a leader in the SUV category in Pakistan, boasting the highest level of localisation.

While the entire economy, including the auto industry, faces severe challenges, IMC has remained steadfast in its localisation efforts and commitment to the Make in Pakistan initiative.

Ali Asghar Jamali, CEO of Indus Motor Company, emphasised the significance of this achievement, not only for IMC but for the entire automotive industry.

Despite the manufacturing sector grappling with an uncertain economic environment, fluctuating exchange rates, higher inflation, and restrictions on letter of credit (LC), IMC continues to deliver.

The car and light commercial vehicle sector currently operates at capacity levels of only 25-35%, in stark contrast to the same period last year.

The depreciation of the Pakistani rupee against the US dollar has significantly increased production costs. Additionally, the Consumer Price Index (CPI) inflation rate reached 38% in May, indicating the economic challenges faced by the country.

The highlight of the first make in Pakistan HEV SUV is the remarkable localisation achieved, with the manufacturing of skin and interior body parts taking place within the country.

This achievement was made possible through the hybrid incentives provided under the Auto Industry Development & Export Policy (AIDEP) 2021-26. However, sustainable growth and a focus on eco-friendly innovations require consistent government support and policies for the automotive sector.

Jamali stressed the importance of strong government support and the need for sustainable and eco-friendly standards in innovation without compromising the needs of future generations. As a key player in the automobile industry, the IMC is making strides in feasible development through advanced global and local technologies.

Hybrid cars not only offer economical and environmentally friendly solutions but also deliver excellent fuel efficiency while reducing the country’s high dependency on imported fuel.

The introduction of the Make in Pakistan Hybrid SUV by IMC signifies a significant achievement and sets a positive precedent for the future of the automotive industry in the country. With continued support and a focus on sustainability, IMC is driving Pakistan towards a greener and more prosperous automotive landscape.
 
.
.,.,.,.

Tractor prices surge despite localisation

Aamir Shafaat Khan
July 2, 2023

KARACHI: In the outgoing fiscal year, tractor prices witnessed a steep rise despite achieving higher localisation of up to 94 per cent.

While feeling proud, the assemblers and their vendors always refer to the stability in tractor prices as a result of the massive presence of locally made parts used in its assembling.

A comparison showed the prices of Al-Ghazi Tractors model 480S (55HP), Ghazi 65HP, model 640 (75HP), Dabang (85HP) and NH-70-56 (85HP) rose to Rs1.772 million, Rs2.037m, Rs2.651m, Rs2.728m and Rs3.654m in the first nine months of the FY23 from to Rs1.170m, Rs1.352m, Rs1.733m, Rs1.790m and Rs2.355m in July-March FY22.

The prices of various models of Millat Tractors Ltd (MTL) like MF240 (50HP), MF-350 Plus (50HP), MF260 (60HP), MF360 (60HP) and MF385 4WD (85HP) had risen to Rs1.524m, Rs1.770m, Rs1.756m, Rs1.856m and Rs3.083m as compared to Rs1.192m, Rs1.380m, Rs1.378m, Rs1.455m and Rs2.410m prevailing in July-March FY22.

Defending the price hike, a Punjab-based tractor assembler said the supply of tractors was chargeable at 5pc general sales tax till June 2022 and in Finance Act 2022-23 it was exempted by placing in the 6th Schedule of Sales Tax Act.

Accordingly, he added that the input sales tax paid on the purchase of raw materials at 18pc is not adjustable and became part of the cost. Therefore, the prices of tractors have sharply increased as sales tax is no more adjustable.

In addition to changes in the GST pattern, other financial burdens on local assembly included higher power and gas rates and rising labour charges, he said.

Part makers are also dependable on imported raw materials and the rupee depreciation makes an adverse impact on the cost of manufacturing, he said.
 
. .
.,.,.,

Pakistan’s Indus Motor Company starts exports to Toyota Egypt: CEO

  • Agreement signed, Ali Asghar Jamali says 'too early' to deem it turning point for struggling auto sector
Bilal Hussain
July 11, 2023

1689111955565.png


Indus Motor Company, the assembler of Toyota-brand vehicles in Pakistan, said on Tuesday that it has become the first company in the four-wheeler segment to start exports after it signed an agreement with Toyota Egypt.

“We have already sent our first shipment this month,” Chief Executive Ali Asghar Jamali told Business Recorder.

A press release issued by the company also stated that the first consignment of semi-processed raw material to be shipped to Toyota Egypt will mark the “beginning of era from the export point of view by any original equipment manufacturer (OEM) in Pakistan and plans are in place to continue in this direction”.

Jamali said that while significant, it is “too early” to deem it a turning point for the struggling industry.

His remarks come as Pakistan’s auto sector, highly dependent on imports to meet its assembling needs, remains under pressure due to constraints on issuance of Letters of Credit (LCs). The hindrance comes on the back of Pakistan’s low foreign exchange reserves that triggered import restrictions.

While the State Bank of Pakistan (SBP) has lifted restrictions, it will take some time before normalcy returns.

At the same time, a fast-depreciating rupee pushed up prices of automobiles while runaway inflation also took Pakistan’s key interest rate to a record high, discouraging buyers from financing. In response, almost all auto sector’s players have been announcing plant shutdowns with regular monotony.

“This is a baby step at the moment,” said Jamali. “Currently, we have raw material constraints in the country. It would stop us from exporting huge quantities. But I am hopeful.”

The CEO said the company will only be exporting a certain part to Egypt.

“If their confidence is built, we may be asked to export more parts.

“Even if we manage to export one part to many markets, it would increase our export numbers.

“We hope that other manufacturers would also get confidence and find avenues to export as well,” he added.

A statement from the company, meanwhile, said the partnership with Toyota Egypt “is the first step to meet requirements set under the Auto Industry Development and Export Policy (AIDEP) 2021-2026”.
 
.
,.,..,

First Pakwheels Auto show DHA MULTAN || MARK X drifts || REVO Burnouts || Nardo Grey || cinematics​


 
.
.,.,.

Auto sales fail to rev up in July

The Newspaper's
August 12, 2023


KARACHI: The auto sector has failed to shift gears in July, the first month of the fiscal year, with sales of cars, light commercial vehicles, vans and jeeps plummeting by more than half compared to a year ago.

Total sales were 5,092 units in July, down 57 per cent compared to 11,925 units sold in July 2022, according to data released by the Pakistan Automotive Manufacturers Association. Sales fell 16pc month on month, as 6,034 units were sold in June.

The drop comes after the depressing fiscal year 2022-23, when the sector saw its sales decrease by 55pc.

The data for the current calendar year is more alarming, as sales shrank to less than one-third in the January-July period, plunging to 47,855 units from 155,216 a year ago.

Pak Suzuki Motor Company Ltd sold 2,444 units in July, down 19pc from the previous month and 63pc from July last year.

Sales in the seven months from January to July reduced to less than a quarter, falling from 84,255 units a year ago to 19,436.

Sales of the Indus Motor Company, the assembler of Toyota vehicles, plunged 42pc in July from a year ago. The drop was 26pc when compared to sales in June. In January-July, the company’s sales fell 64pc to 14,165 units.

Honda Atlas Cars Ltd sales plummeted 81pc to 494 units in July compared to last year. However, the automaker somehow managed to boost its sales by 61pc when compared to 307 units sold in June. Its sales were down 72pc to 6,270 units in January-July.

The sales of Hyundai Nishat Motor inched up by 2pc to 569 units in July compared to June. The figure was also 183pc higher compared to 201 units sold in July last year. However, the company’s sales came down by 34pc in January-July to 5,602 units.

As for tractor sales, Al-Ghazi and Millat together sold 2,678 units in July, down 10pc compared to June but 19pc higher than July 2022 sales. In January-July, their tractor sales dropped 36pc to 22,107.

In bikes, Atlas Honda Limited Ltd saw a fall of 17pc in July sales of 62,012 units compared to the previous month. The annual decline in sales amounted to 23pc. The January-July sales fell 29pc to 544,650 units.

Truck sales grew 54pc to 165 units in July compared to June but were down 29pc from July last year. The seven-month sales stood 47pc lower at 1,172 units.

Bus sales fell to 30 units in July from 42 in June and 40 in July 2022. Some 364 buses were sold in January-July, down 24pc year on year.

Sunny Kumar, deputy head of research at Topline Securities, attributed the shrinking sales of cars, LCVs, jeeps and pickups to escalating prices, expensive auto finance and the low purchasing power of consumers.

He said bike sales were also hit by rising prices and consumers’ shrinking purchasing power.
 
.

Auto sales fail to rev up in July​

By Staff Reporter | Dawn
Aug 15, 2023

KARACHI: The auto sector has failed to shift gears in July, the first month of the fiscal year, with sales of cars, light commercial vehicles, vans and jeeps plummeting by more than half compared to a year ago.

Total sales were 5,092 units in July, down 57 per cent compared to 11,925 units sold in July 2022, according to data released by the Pakistan Automotive Manufacturers Association. Sales fell 16pc month on month, as 6,034 units were sold in June.

The drop comes after the depressing fiscal year 2022-23, when the sector saw its sales decrease by 55pc.
The data for the current calendar year is more alarming, as sales shrank to less than one-third in the January-July period, plunging to 47,855 units from 155,216 a year ago.

Pak Suzuki Motor Company Ltd sold 2,444 units in July, down 19pc from the previous month and 63pc from July last year.
Sales in the seven months from January to July reduced to less than a quarter, falling from 84,255 units a year ago to 19,436.

Sales of the Indus Motor Company, the assembler of Toyota vehicles, plunged 42pc in July from a year ago. The drop was 26pc when compared to sales in June. In January-July, the company’s sales fell 64pc to 14,165 units.

Honda Atlas Cars Ltd sales plummeted 81pc to 494 units in July compared to last year. However, the automaker somehow managed to boost its sales by 61pc when compared to 307 units sold in June. Its sales were down 72pc to 6,270 units in January-July.

The sales of Hyundai Nishat Motor inched up by 2pc to 569 units in July compared to June. The figure was also 183pc higher compared to 201 units sold in July last year. However, the company’s sales came down by 34pc in January-July to 5,602 units.

As for tractor sales, Al-Ghazi and Millat together sold 2,678 units in July, down 10pc compared to June but 19pc higher than July 2022 sales. In January-July, their tractor sales dropped 36pc to 22,107.

In bikes, Atlas Honda Limited Ltd saw a fall of 17pc in July sales of 62,012 units compared to the previous month. The annual decline in sales amounted to 23pc. The January-July sales fell 29pc to 544,650 units.

Truck sales grew 54pc to 165 units in July compared to June but were down 29pc from July last year. The seven-month sales stood 47pc lower at 1,172 units.

Bus sales fell to 30 units in July from 42 in June and 40 in July 2022. Some 364 buses were sold in January-July, down 24pc year on year.

Sunny Kumar, deputy head of research at Topline Securities, attributed the shrinking sales of cars, LCVs, jeeps and pickups to escalating prices, expensive auto finance and the low purchasing power of consumers.

He said bike sales were also hit by rising prices and consumers’ shrinking purchasing power.
 
.
,..,.,

Al-Ghazi Tractors Limited

BR Research
August 22, 2023

Al-Ghazi Tractors Limited (PSX: AGTL) was incorporated in Pakistan as a public limited company in June, 1983. AGTL is a subsidiary of Al-Futtaim Group of Dubai. The company is engaged in the business of providing agricultural solutions by manufacturing and selling tractors, generators, implements and spare parts. Its operational hub is located in Dera Ghazi Khan which has technical collaboration with Case New Holland (CNH), the largest manufacturer of agricultural tractors in the world. AGTL’s plant has the capacity of producing 30,000 tractors per annum in a single shift. AGTL also has a generator assembly line which can produce 2000 generators per annum in a single shift.
 
.
.,.,,.,.

In face of crisis, auto parts makers diversify business​

Industry focuses more on new products, markets to ramp up exports

SHAZIA FAROOQI
August 29, 2023


The bruised auto parts manufacturing industry is seeking some solace by diversifying business and introducing some new engineering goods in the face of economic turmoil in the country.

Leading auto parts makers have lamented that the industry has been grappling with an unending series of crises for the last nearly one and a half year. The situation forced them to seek product diversification for an easy escape from industry troubles and ensuring their survival.

This product switch is providing them an opportunity to explore international markets and find buyers for new products. “Pakistan’s auto parts makers can significantly increase exports by focusing more on new products and markets,” auto sector expert Mashood Khan told The Express Tribune.

Citing an instance where a parts manufacturer had started producing and exporting various engineering goods, he said that the development would pave the way for the manufacturing of such goods that were required by other sectors as well.

“It is for the first time that an auto parts maker has started producing hydraulic punching and clinching machines. It has fetched export orders from the UAE that have been met successfully,” he pointed out. “It is obviously a big opening for us with a huge export potential.”

Former Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) chairman Abdul Rehman Aizaz told The Express Tribune that though diversification into other engineering fields was not new, “it has become a necessity for survival of the industry”.

“Parts manufacturers have diversified technologies. Be it forging, cast iron foundries, aluminium parts foundries, sheet metal pressing, plastic, rubber, precise machining, metal finishing or different coatings, we have all the capabilities.”

When questioned how he saw the shift in production, the ex-Paapam chairman called it a positive development. “Naturally, it is a good phenomenon but it doesn’t mean that auto parts making will be stopped due to diversification,” he elaborated.

JS Global research analyst Waqas Ghani Kukaswadia attributed the diversification to Pakistan’s persistently unstable economy. Rising inflation didn’t merely lead to increased cost of manufacturing, it also resulted in higher finance expenses and a less conducive business environment, he said.

The challenges confronting the manufacturing sector triggered demand compression, and combined with import constraints, led to overall reduction in economic activities. “This downturn has had a cascading effect, causing plant closures in some cases,” he observed.

"The auto part manufacturers are functioning as a silent but potent force that drives the industry forward," Paapam's executive board member Saad Sheerani noted.

They might be SMEs in scale, but their impact is profound. With each Original Equipment Manufacturer relying on hundreds of these suppliers, these smaller entities collectively employ vast numbers, enriching the national exchequer through taxes and promoting self-reliance via import substitution, he said.
 
.
.,.,.,

Auto industry turns the corner after sales slump​

INP
Sep 27, 2023

The Pakistani auto industry has been through a roller coaster ride in recent years. However, the easing of ban on imports has led to a resurgence in auto sales, signalling a positive shift for the industry, reports WealthPK. The automobile sales surged to 7,579 units in August 2023, posting a staggering 49% month-on-month (MoM) increase. However, on a year-on-year (YoY) basis, sales decreased by 36%.

The Pakistan Auto Manufacturers Association (PAMA) data shows that compared to the same period last year, car sales in the first two months (July-August) of the current financial year declined by 47% to 12,671 units. “Auto sales have recently resurged in Pakistan as a result of the government's decision to lift import restrictions on cars,” said Abdul Waheed Khan, a senior representative of the PAMA. “Prior to this positive development, the industry had been grappling with a decline in vehicle sales, primarily driven by a confluence of challenges,” he said. “First and foremost, the ever-increasing prices of cars have placed a significant strain on consumers' budgets.

The escalating production costs, coupled with inflationary pressures, pushed car prices to levels that were simply beyond the reach of many potential buyers. This, in turn, led to a shrinking customer base and dampened overall demand in the market,” the representative explained.

“Furthermore, the cost of auto financing became prohibitively expensive for a substantial portion of the population. High interest rates and stringent lending criteria deterred many prospective buyers from pursuing car loans, thus further stifling sales.

The limited purchasing power of consumers in the face of these financial barriers only exacerbated the situation,” he added. “However, a ray of hope emerged during July and August of 2023 when import restrictions on vehicles were lifted. As a result, vehicle sales reached their highest level since March 2023,” he said. “Although the auto industry still faces production shutdowns and operational issues, these sales figures are a positive sign for the industry.
 
. .

Seres EVs: Revolutionising Pakistan’s Auto Industry with Cutting-Edge Technology

Seres, in collaboration with Silicon Valley and Huawei launch their line of EVs in Pakistan.

Published September 30, 2023


29134604c12a98e.jpg


The Pakistani automotive landscape is on the brink of a transformation. At the forefront of this revolution is the Seres Electric Vehicle (EV) lineup. These futuristic cars are set to redefine the industry, promising to make mobility more efficient and technologically advanced.

Seres EVs have been introduced in the Pakistani market through a collaboration between Regal Automobiles Industries Limited (RAIL) and Seres Corporation. RAIL, a renowned name in the Pakistani business conglomerate, joined hands with Seres, a trusted player in the global EV market,in 2021. This partnership brought forth the vision to manufacture and market Seres vehicles in Pakistan. RAIL was awarded Green Field status under the Automotive Development Policy 2016-2021, emphasising its commitment to innovation.

291349556f471b6.jpg


The Seres S3, the first in the lineup is nothing short of impressive. This high-performance electric coupe SUV represents the pinnacle of Seres’s engineering. The “S” in Seres stands for Silicon Valley, emphasising the brand’s commitment to cutting-edge design and technology, while its design pays homage to the Valley. Seres vehicles are developed with a global perspective, blending innovative aesthetics with functional efficiency. This focus on design ensures that Seres cars are not just environmentally friendly, but also stylish and technologically advanced. The Silicon Valley aspect draws a host of advantages, including user-friendly interfaces, advanced autonomous driving capabilities, enhanced connectivity, and a global appeal that transcends regional boundaries. The incorporation of Silicon Valley’s expertise elevates the Seres lineup to new heights, promising not just eco-friendly transportation but also a seamless, tech-driven driving experience.

291349555656505.jpg


Seres electric vehicles are not limited to Pakistan. Globally, Seres has made a significant impact, with thousands of units sold each year worldwide, the brand has already established itself as a major player in the EV market. Particularly in Europe, their EVs Seres have become a symbol of eco-conscious transportation. However, their success is to be attributed to their impressive range, advanced safety features, and aesthetic design.

One of the most significant advantages of owning a Seres electric vehicle in Pakistan is the potential for massive savings on fuel costs. As fuel prices continue to rise, EVs offer a financially viable alternative. Those who have solar panels installed for their houses can maximise these savings by charging their EVs with solar-generated electricity. This provides a cost-effective solution for the ever-increasing fuel prices, a major economic setback for every household, whether big or small.

2913495671f92cd.jpg


Huawei, with its extensive expertise in EVs, is pivotal in enhancing the technological aspects of Seres electric vehicles. This collaboration results in vehicles that not only offer eco-friendly transport but also a seamless, tech-driven driving experience. Initiated in 2021, the partnership between Seres and Huawei is a pioneering alliance between an EV manufacturer and an ICT technology giant. Seres concentrates on vehicle development, intelligent manufacturing, service, and creating an enjoyable ownership experience. Huawei plays the role of a crucial software integrator within Seres’ automotive ecosystem, supporting electrification, intelligent hardware, and software technologies.

291349569eaa0f8.jpg


This innovative partnership reflects the changing dynamics of the automotive industry, where advanced software and connectivity are as crucial as physical components. Huawei’s ICT expertise seamlessly integrates into Seres electric vehicles, resulting in a fusion of cutting-edge software and efficient hardware. This synergy ensures that Seres electric vehicles are at the forefront of technological advancements and enhances the overall driving experience.

In a nation grappling with soaring fuel prices, the introduction of EVs like the Seres offers hope for a more economical future for many people. With the backing of Silicon Valley’s technological prowess, Seres is definitely set to redefine the auto industry in Pakistan and align it with global standards. As the global success of Seres continues to grow, the brand is here to stay and further their efforts towards a sustainable automotive future.
 
Last edited:
. . .
,..,,.

Govt, auto sector appear ‘close to resolving manufacturing certificate’ issue

  • OEMs' licence expired at the end of September, and has not yet been renewed due to companies missing the 2% export target in FY23
Pakistan’s auto sector and the government appear close to resolving the issue of the manufacturer’s certificates that expired at the end of September, and were not renewed at the time since the companies failed to meet the agreed export target during fiscal year 2022-23.

Renewal of the certificate was contingent on the auto sector meeting the export target that was mutually decided between the two parties. Under the arrangement, the auto industry had agreed to export 2% in value of what they imported during fiscal year 2023.

An earlier meeting in September between auto industry representatives and Ministry of Industries and Production Islamabad “was put away inconclusively and the decision to be taken was sadly deferred”, according to Pakistan Automotive Manufacturers Association (PAMA) at the time.
 
.

Country Latest Posts

Back
Top Bottom