Pakistan Automobile Industry
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Toyota Indus reveals plans to launch locally made hybrid vehicles
ISLAMABAD: Ali Asghar Jamali, the Chief Executive of Indus Motor Company, revealed plans for the launch of Pakistan’s first locally made Hybrid Crossover Sports Utility Vehicle (C-SUV). Jamali emphasized the critical role Hybrid Electric Vehicles (HEVs) will play in Pakistan’s fight against climate change and achieving the UN’s Sustainable Development goals.
“Pakistan, despite being one of the lowest contributors to climate change, is still facing severe impacts. Our locally made Hybrid Electric Vehicles (HEVs) will be a conscious effort to further reduce emissions and achieve the UN’s Sustainable Development goals,” stated Jamali while talking to a group of journalists on Wednesday.
He highlighted the significance of HEVs, not just as an environmentally responsible choice, but also for their positive economic implications. Jamali explained that these vehicles would boost employment opportunities and open new avenues for exports.
Backing this eco-friendly initiative, Toyota recently invested $100 million in producing HEVs in Pakistan. This strategic move aims to not only cut down Pakistan’s import bill significantly but also save approximately $37 million annually, with the production of 30 thousand units of HEVs.
Despite these positive strides, Jamali acknowledged the challenges faced by the local auto industry, including high taxation, inflation, used car imports, and currency instability. He stressed the urgent need for a well-structured import policy to support the growth of the local auto sector.
Over 6,500 used cars were imported in the financial year 2022-23, with an additional 7,500 units brought into the country within the first three months of the current fiscal year. Jamali expressed concern that this influx of used car imports undermines the progress made in localization by the local auto industry and hampers the potential for further localization in Pakistan.
Despite these challenges, Jamali commended the recent relaxations in the opening of Letters of Credit (LCs) for imports, which have assisted the local industry in procuring essential raw materials. These relaxations led to improvements in the sales of passenger cars and light commercial vehicles for Original Equipment Manufacturers (OEMs) in September 2023, although there was still a 26% decline in sales on a year-on-year basis.
Looking ahead, Jamali expressed gratitude to the government for its efforts to support localization, which he believes holds the key to the auto industry’s recovery and its contribution to the revival of the economy.
As Pakistan gears up to embrace a greener future with HEVs, Jamali assured that Indus Motor Company remains dedicated to overcoming the challenges at hand and steering the auto industry toward a brighter and more sustainable tomorrow.
profit.pakistantoday.com.pk
ISLAMABAD: Ali Asghar Jamali, the Chief Executive of Indus Motor Company, revealed plans for the launch of Pakistan’s first locally made Hybrid Crossover Sports Utility Vehicle (C-SUV). Jamali emphasized the critical role Hybrid Electric Vehicles (HEVs) will play in Pakistan’s fight against climate change and achieving the UN’s Sustainable Development goals.
“Pakistan, despite being one of the lowest contributors to climate change, is still facing severe impacts. Our locally made Hybrid Electric Vehicles (HEVs) will be a conscious effort to further reduce emissions and achieve the UN’s Sustainable Development goals,” stated Jamali while talking to a group of journalists on Wednesday.
He highlighted the significance of HEVs, not just as an environmentally responsible choice, but also for their positive economic implications. Jamali explained that these vehicles would boost employment opportunities and open new avenues for exports.
Backing this eco-friendly initiative, Toyota recently invested $100 million in producing HEVs in Pakistan. This strategic move aims to not only cut down Pakistan’s import bill significantly but also save approximately $37 million annually, with the production of 30 thousand units of HEVs.
Despite these positive strides, Jamali acknowledged the challenges faced by the local auto industry, including high taxation, inflation, used car imports, and currency instability. He stressed the urgent need for a well-structured import policy to support the growth of the local auto sector.
Over 6,500 used cars were imported in the financial year 2022-23, with an additional 7,500 units brought into the country within the first three months of the current fiscal year. Jamali expressed concern that this influx of used car imports undermines the progress made in localization by the local auto industry and hampers the potential for further localization in Pakistan.
Despite these challenges, Jamali commended the recent relaxations in the opening of Letters of Credit (LCs) for imports, which have assisted the local industry in procuring essential raw materials. These relaxations led to improvements in the sales of passenger cars and light commercial vehicles for Original Equipment Manufacturers (OEMs) in September 2023, although there was still a 26% decline in sales on a year-on-year basis.
Looking ahead, Jamali expressed gratitude to the government for its efforts to support localization, which he believes holds the key to the auto industry’s recovery and its contribution to the revival of the economy.
As Pakistan gears up to embrace a greener future with HEVs, Jamali assured that Indus Motor Company remains dedicated to overcoming the challenges at hand and steering the auto industry toward a brighter and more sustainable tomorrow.
Toyota Indus reveals plans to launch locally made hybrid vehicles
ISLAMABAD: Ali Asghar Jamali, the Chief Executive of Indus Motor Company, revealed plans for the launch of Pakistan's first locally made Hybrid Crossover Sports Utility Vehicle (C-SUV). Jamali emphasi
profit.pakistantoday.com.pk
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Daewoo Express, one of Pakistan’s leading inter-city transport service providers, is planning to introduce 200 Electric Vehicle (EV) buses gradually in the next two years along with 1000 EV rickshaws for Karachi and Lahore in collaboration with Sazgar Engineering, Business Recorder has learnt.
If it goes as planned, it will be the first EV-based inter-city bus service in Pakistan.
Daewoo Express is hopeful that multi-million dollar financing for these two projects will be finalised by January-February 2024 with an Asia-based development funding agency.
The electric buses are expected to start operations during summer next year, and all 200 buses will be in operation by mid-2026.
The EV buses will operate on short routes having a maximum distance of 225 kilometres so that they don’t have to stop during journey for charging as it would be inconvenient for passengers.
These 200 electric buses will run on 17 short routes such as Karachi to Hyderabad; Peshawar to Rawalpindi; Lahore to Faisalabad; Lahore to Sialkot etc.
“We will have charging facilities on all of our terminals where these electric buses will operate,” Hassan said.
Hassan said it is difficult to predict how introduction of these electric buses will affect inter-city fares as no one knows what will be the price of diesel and electricity by the time these buses are introduced.
“However, it should be remembered that upfront cost of electric buses is significantly higher than that of diesel buses,” he added.
The company says it’s working with three to four Chinese bus manufacturers, but yet to finalise the one manufacturer it would eventually be purchasing the buses from.
“If this pilot project of 200 buses is successful, we may consider entering into the electric bus manufacturing business,” Hassan said.
The company already has a manufacturing facility in Sundar near Lahore, which the company acquired from Swedish auto manufacturer Volvo that wrapped up their business from Pakistan in early 2000s.
So far, it has signed a Memorandum of Understanding (MoU) with Sazgar Engineering for manufacturing of 1,000 EV rickshaws, which Daewoo Express will operate in Karachi and Lahore as a ride-hailing service.
“Introduction of EV rickshaws will also go a long way in improving air quality and reducing noise pollution in the two biggest cities in Pakistan,” Hassan said.
Separately, a source in the government told the scribe that the company is in talks with the Asian Infrastructure Investment Bank (AIIB) for around $24 million for the project.
Another source informed that the AIIB would also engage other financing agencies since the financing amount required for these green projects is higher than $24 million.
However, the company didn’t share or confirm this detail.
What do experts say?
An official of the Ministry of Climate Change (MoCC), on condition of anonymity, said the Ministry of Finance shared details of the project with them for its ministry’s expert opinion.
“It has been agreed that initially the company will use conventional sources and later they will convert electricity sources to renewables to charge their buses.”
Hassan confirmed this, saying Daewoo Express already has plans to introduce solar farms in Karachi and Lahore as a part of this project.
Dr Aazir Anwar Khan, Founder and Director, Integrated Engineering Centre of Excellence (IeCE), University of Lahore, says bringing 1,000 electric rickshaws would be helpful in reducing carbon emissions.
“It’s a small number as compared to 500,000 rickshaws on roads (and 100,000 being sold every year since 2019) in the country. But it’s a good start,” he said.
Mentioning a study, he shared that on average a petrol CNG/LPG rickshaw emits 8 tons of carbon dioxide, and by introducing 1000 rickshaws, 8000 tons of carbon emissions could be reduced.
“However, there will be a need for swappable battery stations for these rickshaws. Because it will be difficult for these rickshaws to get battery charged from a charger,” he said.
Battery swapping or battery switching is an electric vehicle technology that allows battery electric vehicles to quickly exchange a discharged battery pack for a fully charged one.
“Electric vehicles are also easier to maintain because the number of parts are very much lesser than an ICE vehicle,” he added.
An auto sector expert Mashood Khan said electric buses in the country have been imported separately by different provincial governments.
“Sindh, Punjab and KP are all importing buses separately. If there was a joint plan, a plant for making buses could have been established,” he said, adding that there is a huge potential in two-three wheels as well as buses for public transport on the back of a huge gap presently.
“If work is sincerely done, we can see quite progress. But there is a need for sincerity. There should be investment in the industry. There shouldn’t be just trading that you import and not work on manufacturing in Pakistan,” Mashood Khan emphasised.
Daewoo Express plans to introduce 200 inter-city electric buses in Pakistan
- Another 1,000 EV rickshaws plan for Karachi and Lahore on cards
Daewoo Express, one of Pakistan’s leading inter-city transport service providers, is planning to introduce 200 Electric Vehicle (EV) buses gradually in the next two years along with 1000 EV rickshaws for Karachi and Lahore in collaboration with Sazgar Engineering, Business Recorder has learnt.
If it goes as planned, it will be the first EV-based inter-city bus service in Pakistan.
Daewoo Express is hopeful that multi-million dollar financing for these two projects will be finalised by January-February 2024 with an Asia-based development funding agency.
The electric buses are expected to start operations during summer next year, and all 200 buses will be in operation by mid-2026.
The EV buses will operate on short routes having a maximum distance of 225 kilometres so that they don’t have to stop during journey for charging as it would be inconvenient for passengers.
These 200 electric buses will run on 17 short routes such as Karachi to Hyderabad; Peshawar to Rawalpindi; Lahore to Faisalabad; Lahore to Sialkot etc.
“We will have charging facilities on all of our terminals where these electric buses will operate,” Hassan said.
Hassan said it is difficult to predict how introduction of these electric buses will affect inter-city fares as no one knows what will be the price of diesel and electricity by the time these buses are introduced.
“However, it should be remembered that upfront cost of electric buses is significantly higher than that of diesel buses,” he added.
The company says it’s working with three to four Chinese bus manufacturers, but yet to finalise the one manufacturer it would eventually be purchasing the buses from.
“If this pilot project of 200 buses is successful, we may consider entering into the electric bus manufacturing business,” Hassan said.
The company already has a manufacturing facility in Sundar near Lahore, which the company acquired from Swedish auto manufacturer Volvo that wrapped up their business from Pakistan in early 2000s.
So far, it has signed a Memorandum of Understanding (MoU) with Sazgar Engineering for manufacturing of 1,000 EV rickshaws, which Daewoo Express will operate in Karachi and Lahore as a ride-hailing service.
“Introduction of EV rickshaws will also go a long way in improving air quality and reducing noise pollution in the two biggest cities in Pakistan,” Hassan said.
Separately, a source in the government told the scribe that the company is in talks with the Asian Infrastructure Investment Bank (AIIB) for around $24 million for the project.
Another source informed that the AIIB would also engage other financing agencies since the financing amount required for these green projects is higher than $24 million.
However, the company didn’t share or confirm this detail.
What do experts say?
An official of the Ministry of Climate Change (MoCC), on condition of anonymity, said the Ministry of Finance shared details of the project with them for its ministry’s expert opinion.
“It has been agreed that initially the company will use conventional sources and later they will convert electricity sources to renewables to charge their buses.”
Hassan confirmed this, saying Daewoo Express already has plans to introduce solar farms in Karachi and Lahore as a part of this project.
Dr Aazir Anwar Khan, Founder and Director, Integrated Engineering Centre of Excellence (IeCE), University of Lahore, says bringing 1,000 electric rickshaws would be helpful in reducing carbon emissions.
“It’s a small number as compared to 500,000 rickshaws on roads (and 100,000 being sold every year since 2019) in the country. But it’s a good start,” he said.
Mentioning a study, he shared that on average a petrol CNG/LPG rickshaw emits 8 tons of carbon dioxide, and by introducing 1000 rickshaws, 8000 tons of carbon emissions could be reduced.
“However, there will be a need for swappable battery stations for these rickshaws. Because it will be difficult for these rickshaws to get battery charged from a charger,” he said.
Battery swapping or battery switching is an electric vehicle technology that allows battery electric vehicles to quickly exchange a discharged battery pack for a fully charged one.
“Electric vehicles are also easier to maintain because the number of parts are very much lesser than an ICE vehicle,” he added.
An auto sector expert Mashood Khan said electric buses in the country have been imported separately by different provincial governments.
“Sindh, Punjab and KP are all importing buses separately. If there was a joint plan, a plant for making buses could have been established,” he said, adding that there is a huge potential in two-three wheels as well as buses for public transport on the back of a huge gap presently.
“If work is sincerely done, we can see quite progress. But there is a need for sincerity. There should be investment in the industry. There shouldn’t be just trading that you import and not work on manufacturing in Pakistan,” Mashood Khan emphasised.
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ghazi52
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Automobile sale rises 137.91pc in June
The NationJul 15, 2024
ISLAMABAD: Sale of cars in the country witnessed an increase of 137.91 percent in June 2024 compared to the same month of the preceding year (2022-23), a data released by the Pakistan Automobile Manufacturing Association (PAMA) said.
Sale of cars rose to 10,128 units in June 2024 compared from 4,257 units during the same month of the previous year. Sale of cars during the fiscal year 2023-24 (July-June), however, decreased by 15.63 percent when compared to the sale during the same period of the last year 2022-23. According to the data, as many as 81,677 cars were sold during the period under review as opposed to 96,811 units in the same period of last year.
The breakup figures showed that 11,501 units of Honda Civic and City were sold as compared to the sale of 12,823 units in last fiscal year (2022-23). Toyota Corolla and Yaris car sales also declined by 13.44 percent as it went down to 16,305 units from 18,838 units in last year. Suzuki Swift’s sales also decreased by 40.38 percent as its sales went down to 5,567 units from 9,338 units last year.
Sale of Suzuki Cultus declined to 3,689 units during the fiscal year under review, whereas during the same period of last year, the sale was recorded at 6,956 units while the sale of Suzuki WagonR also decreased to 3,595 units from 5,434 units last year. Suzuki Alto’s sales, however, also witnessed an increase of 1.42 percent from 35,379 units to 35,883 units during the year under review, whereas the sales of Suzuki Bolan decreased to 2,774 units as opposed to sales of 4,447 units in last year.
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Goodbye, Suzuki Bolan:
A legacy ends. 1988-2024
Suzuki Pakistan has discontinued the production of Bolan, also known as Carry Dabba, after a 36-year dominance in the Pakistani market. The company is slated to introduce Suzuki Every in the second week of October 2024, targeting the van segment.
A legacy ends. 1988-2024
Suzuki Pakistan has discontinued the production of Bolan, also known as Carry Dabba, after a 36-year dominance in the Pakistani market. The company is slated to introduce Suzuki Every in the second week of October 2024, targeting the van segment.
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Pak Suzuki to discontinue its Bolan, launch ‘Every’ in Pakistan
Bilal HussainOctober 11, 2024
Pak Suzuki Motor Company has formally announced the launch of its new model ‘Every’, ending decades-long production of its Bolan that remained popular among the masses for several reasons.
In a statement to the media, Head of Corporate Affairs Pak Suzuki Motor Co. Ltd Shafiq Shaikh said the company will display ‘Every’ at authorised showrooms across Pakistan on October 13, 2024.
“Prospective buyers can also take the vehicle for a test drive the same day,” the statement added.
“This launch reinforces our commitment to providing customers with innovative, reliable, and affordable mobility solutions.”
Pak Suzuki Motor Company has been a leading automobile manufacturer in Pakistan, known for its brands such as Suzuki Alto, Swift, and Cultus. It is the biggest passenger car assembler/manufacturer in terms of volume in the country.
Auto sector expert and former PAAPAM chairman Mashood Khan said that he sees a gap in the segment that Suzuki Every could cater.
“I think it will perform,” he told Business Recorder.
Every is a vehicle that can be used commercially as a school van as well as a loading vehicle similar to its predecessor Bolan.
Meanwhile, auto experts lauded the entry of a new economical vehicle into the Pakistani market.
“The entry of Suzuki Every into the local market is a good decision,” Usman Ansari, an auto sector analyst and founder of website carspirit.pk, told Business Recorder.
“Customers criticised discontinuation of the Mehran earlier, saying that Pakistan may not have economical cars anymore. But Alto did better, with better sales. I also expect Every to do better than Bolan, which lacked features and comfort,” he maintained.
Suzuki Every is projected to be priced in the range of around Rs2.6- Rs2.7 million.
“However, the only concern is Suzuki not introducing an automatic version of Every, which is now considered an important feature.”
On the other hand, Abrar Polani, auto sector analyst at Arif Habib Limited (AHL), also put the expected price at around Rs2.6 million.
“It will be a price point where financing is also easier,” said Polani.
He added the car will have better safety features.
The analyst informed that auto sales numbers are improving especially for vehicles below 1000cc category. “Expectations are Every will also be able to perform well.”
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BYD and Hubco Partner to Launch Pakistan’s First Electric Vehicle Assembly Plant
September 22, 2024
Chinese electric vehicle (EV) giant BYD, backed by Warren Buffett, is set to expand into Pakistan through a partnership with Hub Power’s subsidiary, Mega Motor.
This collaboration aims to establish Pakistan’s first electric vehicle assembly plant by 2026, located near Karachi’s Port Qasim. Hubco CEO Kamran Kamal highlighted ambitions for Pakistan to become a key car exporter, with a focus on markets in Africa and South Asia. This marks BYD’s first foray into South Asia, following investment restrictions in India.
Pakistan’s Finance Minister, Muhammad Aurangzeb, emphasized the government’s push to transform the country into an export hub, targeting automotive exports. The BYD expansion is part of the China-Pakistan Economic Corridor (CPEC) initiative, further solidifying the growing Pak-China economic cooperation.
Chinese electric-car maker BYD’s expected expansion into Pakistan has raised hopes in the country that the Warren Buffett-backed company can help jump-start exports in the automotive manufacturing sector.
Pakistan’s biggest private electricity producer Hub Power (Hubco) said last month that its subsidiary Mega Motor was entering a partnership with the Tesla rival to set up the country’s first electric vehicle assembly plant by 2026.
BYD’s Pakistan plan would mark the company’s first venture into south Asia after being blocked in India by Prime Minister Narendra Modi’s government, which has restricted Chinese investment.
Hubco’s chief executive Kamran Kamal said in an interview with the Financial Times that the ultimate goal was for Pakistan to start exporting vehicles from the plant near Karachi’s Port Qasim.
“We have big ambitions to be the leading carmaker in this country by the end of the decade,” said Kamal. “For any industry in Pakistan to be competitive, they should be focused on the export market.”
Pakistan’s finance minister Muhammad Aurangzeb said the government was encouraging BYD to export to markets in Africa and south Asia, including Bangladesh and Sri Lanka. Trade between India and Pakistan has been reduced since 2019 after a security crisis between the two countries.
“We want that Pakistan becomes an export hub, period,” Aurangzeb said in a separate interview with the FT. “Korean brands are here, the Japanese brands have been here . . . but the reality is we haven’t been exporting.”
BYD said details of its Pakistan plans had yet to be formally announced and declined to comment further.
The company’s expansion into south Asia comes as it is also establishing factories in Turkey, Hungary, Thailand and Brazil. BYD has also been scouting locations for a new factory in Mexico.
The carmaker is expanding its manufacturing footprint beyond China as countries impose increasing tariffs on Chinese exports, including on EVs, solar panels and wind turbines.
Tu Le, founder of consultancy Sino Auto Insights, said the aggressive international expansion plans would help BYD export to fast-growing markets despite tariffs in the US and Europe.
But he warned that BYD should not expect the same “unfettered growth” the company has enjoyed in China as it learns to manage factories in different countries.
“Chinese companies are used to having a lot of control. What they are going to find is that due to labour laws, different work ethics, different cultures, they’re going to have a lot less control than they normally would,” he said.
Hubco is a joint venture partner for a number of Chinese power projects established under the China-Pakistan Economic Corridor, a $60bn infrastructure network that is part of Beijing’s Belt and Road Initiative.
The company has no prior experience manufacturing vehicles but it aims to use its extensive power generation network to set up EV charging infrastructure throughout the country of 240mn people, Kamal said.
The exact size of the investment and the types of models that will be assembled in the Karachi plant “are being discussed”, he said.
Hubco said it expected to sell 100,000 BYD plug-in hybrid and fully electric cars in Pakistan a year by 2030, representing about a quarter of total cars sold in Pakistan, according to the company’s estimates.
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Pakistan auto factory rolled out a milestone 10,000th vehicle
By Mariam Raheem | Gwadar ProOct 23, 2024
LAHORE - A milestone was achieved on 12 October as the 10,000th HAVAL vehicle rolled off the production line at SAZGAR Engineering Works Ltd’ KD factory in Pakistan. This occasion marks a collaboration between SAZGAR and Chinese auto brand Great Wall Motor (GWM), which has flourished since its inception.
Since commencing operations in September 2022, the KD factory has witnessed robust growth and has manufactured two globally renowned models: HAVAL H6 and HAVAL JOLION. HAVAL H6 HEV, the first locally assembled New Energy Vehicle (NEV) in the country, has garnered immense popularity since its launch, swiftly becoming the region’s best-selling SUV.
10,000th HAVAL vehicle rolled off the production line in Pakistan, photo provided by GWM
This success highlights the growing demand for eco-friendly and technologically advanced vehicles in Pakistan. These energy products have helped increase the penetration rate of NEVs in the Pakistani passenger car market from less than 1% in 2022 to nearly 11% in 2024.
Attending the roll-out ceremony, Rana Tanveer Hussain, Federal Minister for Industries and Production of Pakistan, emphasized the positive and crucial impact that the collaboration between Pakistan and China has had on the local automotive landscape.
“The collaboration has provided Pakistani consumers with access to new models that meet global standards,” he said. “This has greatly enhanced our travel quality and accelerated the transition towards more sustainable and eco-friendly transportation options.”
In addition to the two assembled SUV models, SAZGAR plans to launch three new energy vehicles—OAR 03, ORA 07, and TANK 500 HEV—this year. Looking ahead, it plans to launch more NEV products, including plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs).
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KIA EV5 is officially launched in Pakistan! Discover the future of electric driving today!
KIA EV5 Air (Short Range) Price Rs. 18,500,000
KIA EV5 Earth (Long Range) Price Rs. 23,500,000
© PAKWHEELS
KIA EV5 Air (Short Range) Price Rs. 18,500,000
KIA EV5 Earth (Long Range) Price Rs. 23,500,000
© PAKWHEELS
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Lower interest rates: car sales in Pakistan increase 27% MoM in October 2024
Car sales in Pakistan surged by 27% month-on-month (MoM) to 13,100 units in October 2024 as lower interest rates...
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Pakistan-based original equipment manufacturer AUTOCOM has exported a sizable shipment of semi-trailers to East Africa.
The trailers were manufactured at AUTOCOM’s purpose-built semi-trailer factory in Port Qasim and shipped in Completely Built Up (CBU) condition.
The trailers were manufactured at AUTOCOM’s purpose-built semi-trailer factory in Port Qasim and shipped in Completely Built Up (CBU) condition.
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The Minsk Tractor Plant (MTZ) has announced plans to supply at least 2,700 Belarus tractors, each with up to 60 hp, to Pakistan in 2025.
This agreement was formalized during Belarusian President Aleksandr Lukashenko’s visit to Pakistan, as shared by the enterprise’s press service.
MTZ General Director Sergei Avramenko highlighted the possibility of assembling these tractors in Pakistan. The local assembly is expected to lower costs for consumers and enhance accessibility.
This agreement was formalized during Belarusian President Aleksandr Lukashenko’s visit to Pakistan, as shared by the enterprise’s press service.
MTZ General Director Sergei Avramenko highlighted the possibility of assembling these tractors in Pakistan. The local assembly is expected to lower costs for consumers and enhance accessibility.
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