Automark January 2011

AUTOMARK MAGAZINE Generated by Foxit PDF Creator © Foxit Softwarehttp://www.foxitsoftware.com For evaluation only.

Businessmen demanded the government toannounce comprehensive action plan to addressthe key issues that are affecting businesses,economy and lives of masses. Pakistan isconfronted with multiple problems such as loweconomic growth, skyrocketing food and energyprices, high inflation, rising unemployment,continued fiscal indiscipline, growing poverty,alarming increase in government borrowings,compounding circular debt, weak revenuecollection coupled with increased spending, andlow foreign investments.The recent surge in the petroleum prices hascreated a new wave of inflation. Prices of manyproducts have increased because of escalationin the transportation cost, leaving a very negativeimpact on cost of doing business. "Getting creditfrom banks has been made more expensive forthe private sector - as a result no moreinvestment is coming to begin new businessventures that will generate economic activityand employment in the country,"The tight monitory policy said that it could notbring positive results and also the growth graphis declining, thus State Bank of Pakistan shouldreview its course of action. That Pakistani rupeeis depreciating, while currencies of the regionalcountries are getting stronger, which gives thema competitive edge in the international marketfor exports. "Political uncertainty has also slowedbusinesses in the country and foreign buyersare reluctant to start long-term business withPakistani companies," the government shouldimmediately sort out these issues to give stabilityto the country.Government to chalk out an action plan formaintaining stable prices, keeping the interestrate low, generating energy resources and towork on the key areas for economicdevelopment.

Editorial

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The Magazine for Pakistan Automotive Sector

January 2011 Vol 4, Issue 01

Editor :

Sub Editor :

Contribution Writers :

Advisor :

Circulation Manager :

Designed By :

M. Hanif Memon

Dr. Raja Irfan Sabir

Asif MasoodSyed Mansoor AliAli HassanMohammad Owais KhanSabir ShaikhIHT FarooquiOmar RashdiShahzad TabishMuneeb JawedJ. PereiraAbdul Majeed SheikhImtiaz RastgarIHT Farooqui

Abdul Khaliq

Mustafa Hanif

MONTHLY

Important AnnouncementThe management of monthly Automarkmagazine is pleased to announce thatEngineer IHT Farooqui has joined theAutomark advisory panel from January-2011.He will now be advising and overlookingAutomark magazine's key contents.Mr. Farooqui is involved with the Pakistan

auto industry since the last 28+ years with executivemanag ement profess ion al in product ion f ie ld.He holds a BE Degree in Mechanical Engineering and doingMaster of Engineering from NED University.He Prepared localization plans for Changan brand Pickups,FAW brand Vans and Belarus Tractors, negotiated with vendors,placed development orders and completed all formalities ofEDB to local manufacturer of these vehicles in Pakistan.Presently working as General Manager Plant in KarakoramMotors (Pvt) Ltd.In the past he worked for Pak Suzuki Motor Co., Millat Tractors,Dewan Farooque Motors, World Korean Motors, Adam Motors,Roma Automobiles, Fecto Group o f Indus tr ies.After his joining at Automark as an advisor (the leadingpublication of the Pakistan automotive sector), he will contributeto fur ther improve the already established quality of ourprestigious publication, bringing at par with the internationalmagazines of the automotive industry.

Pakistan is confronted withmultitude of problemsLow economic growth andskyrocketing prices


The Monthly Magazine for Pakist an Automotive Sector Your trust is our success

CONTENTS

EDB devises certain arameters of minimumin-house acilities for 2 & 3 wheelers 09-10Exclusive Article on Auto Sectorby Ali Hassan

Would Pakistan be able producer 11-12of cheapest in the world?Cover Story - by Syed Mansoor Ali

Two years Tractor production in Pakistan Fig. 13

AIDC focuses more on future issues 14-15rather than ever rising car pricesExclusive Review by M. Owais Khan

Use cars import issue - Update news 16

From Past to PresentAutomobile Industry in PakistanComposed by Muneeb Jawed from NED -Karachi 17

The “Pickup” in the News Toyota Hilux 20Exclusive Article by Shahzad Tabish from NED-Karachi

Rise & Fall of local motorcycle industry 2001 to 2010 21-24Exclusive Review by Sabir Shaikh - Chairman APMA

DuPont helps upgrade CDA's fire systems - Event Report 28

Electronic Fuel Injection (EFI) & CarburetorExclusive Article by Omar Rashdi 33

Environmental Sustainable Transport Sector 39-41Development - PakistanExclusive by Asif Masood from Islamabad

Local assembled car price list - Updated Jan-2010 43Master Motor - Launched Fuso in Pakistan - Events 46-47

Dynasty Electric Car - by IHT Farooqui 48-49

Motorcycle price list - Uptated Jan-2011 50-51

visit: www.automark.pk

e-magazine Issueat our website

The only ONLINE automotive magazine in Pakistan


The Engineering Development Board(EDB) has devised certain parametersof minimum in-house facilities for theassembly and manufacturing of two andthree wheelers besides guidelines toverify these facilities.The main reason of devising parametersis to make detailed evaluation of thefacilities to ensure uniformity as well asto calculate time lines involved indifferent processes of production ofvehicles such as treatment area,assembly line, and test bench etc besidesassessing plant capacity of the unit.The EDB in its letter circulated toleading bike makers on December 24,2010 said that it is mandatory for theassemblers of two to three wheelers toi n s t a l l a n d m a i n t a i n t h emachinery/equipment and necessarytools required for the assembly ofvehicles as defined in Annexure-A ofS R O 6 5 6 ( I ) 2 0 0 6 . T h emachinery/equipment prescribed in theSRO does not provide details likemake/model, specific ation/si ze,operating modes i.e. whether manual orautomatic and mode of testing facilitiesetc. to keep up uniformity in theevaluation of facilities and installedcapacity.A leading Japanese bike maker of Hondabikes and Pakista n AutomotiveManufacturer Association (PAMA) arereported to have submitted tariffstructure for two wheeler industry tothe EDB, which is infamous for takingcare of the interest of Japanese bike

makers mainly.The existing rate of customs duty oncompletely built up (CBU) is 65 per centfor 2010-2011 and it is proposed 60 percent under tariff plan under AutoIndustry Development Plan (AIDP) for2011-2012. PAMA has suggested CBUcustoms duty rate at 55 per cent from

2012-2013 to 2016-2017.The rate of CKD kit (in percentage) is15 per cent under existing tariff during2010-2011 while it is proposed at 10 percent under AIDP tariff plan for 2011-2012. PAMA has proposed 10 per centtariff from 2012-2013 to 2016-2017.The tariff structure on components formaking two wheelers as listed in SRO693(I) 2 006 dat ed 01.07 .200 9(localized) is 47.5 per cent under existingtariff for 2010-2011 while it is proposed45 per cent under AIDP tariff plan 2011-2012. PAMA has proposed the rate ofduty at 42.50 per cent for 2012-2013,40 per cent for 2013-2014, 37.50 percent for 2014-2015, 35 per cent for 2015-2016 and 32.50 per cent for 2016-2017.Atlas Honda and PAMA have suggestedzero per cent duty on tariff structure onlocalized parts ti ll 2016-2017. Theexisting tariff on sub components for2010-2011 is five per cent while it isproposed 2.5 per cent from AIDP tariffplan for 2011-2012 till 2016-2017. Thereis 10 per cent duty on components underexisting tariff 2010-2011 while it isproposed 2.5 per cent from AIDP tariffplan under 2011-2012 till 2016-2017.Existing tariff for 2010-2011 on subassembly is 20 per cent and it issuggested 10 per cent under AIDP tariffplan for 2011-2012 and 7.5 per cent for2012-2013 and five per cent from 2013-2014 to 2016-2017.Motorcycle volume (2010-2011 actualothers projected) is 900,000, 1.050million under AIDP tariff plan 2011-

09AUTOMARK | January-2011

The EDB in its letter circulated to leading bike makers onDecember 24, 2010 said that it is mandatory for the assemblers

of two to three wheelers to install and maintain themachinery/equipment and necessary tools required for the

assembly of vehicles as defined in Annexure-Aof SRO 656 (I) 2006.

EDB devises certainparameters of minimum

in-house facilities for twoand three wheelers

The main body of bikeassemblers (Chinese),Association of Pakistan

Motorcycle Assemblers (APMA)is not happy with the PAMA

proposals and its allegations onlow cost bike producers.

APMA chairman MohammadSabir Shaikh said he had

informed the EDB about hiselection as new president of theAssociation asking the Board to

invite in the meetings onminimum in house facility andother issues but the Board is not

taking it seriously.

Exclusive Article by Ali Hassan

continued on next page



2012, 1.250 million in 2012-2013, 1.450million 2013-2014, 1.6 million in 2014-2015, 1.8 million in 2015-2016 and twomillion in 2016-2017.The bike makers in organized sector areat a clear disadvantage as compared tounorganized sector. Under invoicing,mis-declaration, outright smuggling andnon payment of sales tax and othergovernment levies by the informal sectorhave placed the formal sector at a majorcost disadvantage.The bike industry is highly cost sensitive.The cost differential between the formaland informal sector is making it moreattractive to be in unorganized sector.It is a fact that at present most of theassembly is through commercial importor through imported parts procuredthrough illegal sources. This is formingbusiness out of the country and not onlythe assemblers are suffering but thissituation is a major set back for thevendor industry too.Solution lies in reducing the cost ofindustry. To keep business in theorganized sector, the cost has to bebrought down for them. Rationalizingtariff rates is the way forward. Reducedtariff rates will make present practicesof the unorganized sector unattractiveand it will make business sense toprocure locall y. V olumes makelocalization attractive and importscostly.The main body of bike assemblers(Chinese), Association of PakistanMotorcycle Assemblers (APMA) is nothappy with the PAMA proposals and itsallegations on low cost bike producers.APMA chairman Mohammad SabirShaikh said he had informed the EDBabout his election as new president ofthe Association asking the Board toinvite in the meetings on minimum inhouse facility and other issues but theBoard is not taking it seriously. The EDBis reluctant in taking on board the mainbike makers which hold 60 per centshare in total country’s production. TheEDB has not shared the draft with theAPMA and the Board is taking feed backfrom the producers having 40 per centshare which is not justified.

He said the Association cannotaccept certain parameters of

minimum in house facilities whichare being made on the dictation ofa leading Japanese bike maker inorder to create bottlenecks for thecheap bike makers.“There should be only three tariffstructure on CBU, CKD and zeroper cent on raw material and thetariff structure on rest of the itemslike components, sub componentsetc hold no importance,” he said.Sabir said it is strange the EDB, astrong arm of the industryministry, has been trying to createhurdles for the cheap bike makers.How ever consumers’ risinginterest towards Chinese bikes has

proved that they are moreinterested in buying low pricedbike in view of prevailing high costof living. Despite all odds, Chinesebike makers have excelled inproduction output as compared toJapanese bike makers.Before the December 24, 2010 letterissued to some leading bike makers fromthe EDB, the issue of minimum in housefacility was discussed in the fifth andsixth meetings of Auto Industr yDevelopment Committee (AIDP) heldin first week of November and December8, 2010.The EDB official had informed the 5thAIDC meeting that the Board hadforwarded the recommendationsprepared in consultation with all thestakeholders to the Federal Board ofRevenue (FBR) along with al l thebudgetary proposals for 2010-2011. Theamendments as recommended by thetechnical committee headed by Mr.

Feroz Khan to provide specific minimumin house facilities for specific vehicleswe re a l s o pa r t o f t h e E DBrecommendati ons. Some of theparticipants were of the view that thisdocument needed to be shared with thestake holders so as to see the exactfacilities proposed.In the 6th AIDC meeting GeneralManager informed the house that EDBhad already circulated list of facilitiesto stakeholders to get a feed back withthe FBR. PAMA had already submittedits feedback on December 7. The Housein principle agreed to requirement ofd e fi n i n g mi n i m um i n - h o u s eassembly/manufacturing facilities forassembly/manufacturing of vehicles.EDB is reviewing the PAMA suggestionsand will amend it accordingly if foundappropriate and forward the reviseddocument to FBR for subsequentamendment in the relevant SRO.It was decided in the meeting that theexisting players will also follow the sameassembly rules in case of any shortfall.However, they may be given sufficienttime to upgrade facilities according torevised rules and with a level playingfield to the new entrants.Under minimum in house facility fortwo and three wheelers, detailedevaluation will be made of variousfacilities.For example, assembly of engines shallbe done in a well lit and dust freeenvironment to avoid deterioration offinished, machined, delicate and tinyparts and to avoid mixing of anyunwanted/extra content in the engine.The purpose may be achieved throughan air tight/air conditioned room withfood-mates and controlled entrance.The assembler will give a timeline to betaken in the assembly of one vehicle ortime taken in complete cycle. The EDB’stechnical team will check the timelinegiven by the assembler to assess thepaint capacity.In final inspection (in-house), 1: anautomated electronic based system tocheck the effectiveness of front and rearbrakes. The assembler will provide thes p e c i f i c a t i o n o f t h eequipment/machines installed alongwith its make/model etc…..

Plan aims to evaluate the facilities to ensure uniformity andto calculate timeline involved in different processes

of production of vehicles

Exclusive - Article



Pakistan is the only country in the worldproducing the cheapest (Fiat and MF)moderate quality branded tractors inthe range of USD 7000-9000 only.Within the country , rapid increase inthe market prices of the farm producehas bettered the purchasing power ofthe farmer, resulted in the increase indemand of tractors. These two factorshave brought the total industry volumeto the tune of approximately 70,000tractors per year. The development inthe industry could be noticed from thefact that in 1998-99 industry sold 30,166tractors(local & imported) only.

The analysis of the demand supplysituation reveals that only local marketneeds at least 10,000 more tractorsthan the current total Industry Volume(TIV) per year . While the export marketwhose potential has not yet beenascertained would be needing similarquantity. In the export market,countries who have not yet imposed EPAstandards (Tier 1,2 or 3) are more thanwilling to buy Pakistani tractors. It isestimated that at present average 3-4000 tractors are exported out of thecountry every year. Tractor dealers ortraders in the open market are exportingthem without the knowledge of Principlecompanies. The numbers could not bec o n fi rm ed f ro m t he t ra c t o rmanufacturers as they are contractuallynot allowed to export tractors out of thecountry.

The major factorscontributing in the rapidgrowth of the localtractor demand are as

such:• Low pricesof Tractors VsInternationalMarket.• Easy loanfacility (private banksstarted offering agri.machinery loans).• Increase in cultivablearea.• Interest of Investors.• Export due to low prices.(Afghanistan etc)• Increase in crop prices.(e.g. Wheat price went upto 850Rs /40kg from450Rs/40kg).• Overseas: Attractions

Would Pakistan be ableto take an advantage

of being a producer ofthe world's cheapest

tractors (moderate quality)in the world?

by Syed Mansoor Ali

New entrants are not very successful becausethey are not able to find any good tractor fromEurope which could price match or even come

closer to the existing local manufacturers.Even Chinese tractors are higher in pricescompared to our production but still lesser

than European prices

Exclusive Article on Tractor sector



from relatives outsidePakistan to invest inTractors. (sold higher thanmarket prices).• Government Initiatedseveral Subsidy Schemes.On the other hand, demand for exportmarket is increasing due to extremelyaffordable prices , acceptable qualityand popular brand name.Concisely, we have a short fall oftractors; local production capacity andimports are not meeting the demand.

The question is that could webe able to get into a win- winsituation by adopting thestrategy to meet local demandand tap the export market .This will become a substantial source offoreign exchange earnings needed badlyby our country.This deficiency was noticed by thegovernment of Pakistan and privateentrepreneurs. Federal board of revenue(FBR) amended its SRO 575(1)/2006through a notification issued on June11,2008 wherein agriculture machineryare exempted from custom duty andsales tax provided that the same are notmanufa c tured in t he co untry .In the private sector several newentrants are struggling to arrest theopportunity. In this regard , John Deere(Agro tractors Ltd.), Foton (Dewangroup) ,Euro-F (PM autos), Belarus liketractor (Hero Motors, Hyderabad) ,Changfa ( Ali Corporation )and Ursus(Farmall Technology, Lahore) areamong the prominent names .Already Foton-Dewan project wasclosed last year and it is said that a newparty in Lahore is trying to get into ajoint venture with Foton. John Deereis a big name but they were importing

Chinese John Dere and met the samefate like other Chinese tractors in thecountry. Hero Motors tried to producean amalgamation of Belarus, Fiat andMF which was stopped by government.Changfa is 100% imported and thecompany is trying to set up a plant inLahore. Ursus's plant is in Lahore,making a slow progress in theproduction of tractors. After John Deerethey have an edge on technology as thesetractors have the same technology likeMF tractors in Pakistan.G.M. Motors are manufacturingUniversal ractors but their productionis very limited (average 400 units peryear). M/S Shehzad Traders, for thelast two years, are importing Belarustractors from Minsk Tractor Works tothe tune of approximately 4000 tractorsper year.

The existing producers oftractors have their focus on

producing same tractors thatare in production for years now.

However, they have thepotential, capacity and capabilityto grab this market as theyhave very established infra-

structure both in marketing andvendors. In consultation with

their principals they can set up separate assembly line for the

export.

Furthermore, they could start producing new models of modern tractors to step

into the next generation of tractors .This will secure their future in the

market.Briefly, the overall challenge lies infinding the sustainable solution to seizethis opportunity. In the previous year'sgovernment ran several subsidy schemesbut these schemes helped more toinvestors and black marketers than theactual farmer.New entrants are not very successfulbecause they are not able to find anygood tractor from Europe which couldprice match or even come closer to theexisting local manufacturers. EvenChinese tractors are higher in pricescompared to our production but stilllesser than European prices. As a resultmajority of the new entrants have noother choice but to go for Chinesetractors. Unlike other Chinese items inthe country, agricultural tractors arenot acceptable in the Pakistani market.The reason is that since the start oftractor marketing in Pakistan ourfarmers are operating European tractorslike MF, FIAT and Ford.In a nutshell, the current situation viz-a-viz tractor sales in local as well as iexport market are extremely favorablefor Pakistan. There is a dire need tomake a significant headway in this fieldby formulating a strategy to seize thisopportunity immediately. This will be atremendous help towards th edeteriorating economic situation of thecountry .

Exclusive Article on Tractor sector

Euro-F


AUTOMARK | December-2010

While putting aside the issue of everrising car prices, the government, carmakers and vendors are more concernedon future issues.They have been discussing (one and ahalf year earlier) on the future of TariffBased System (TBS), alternative systemto replace TBS and Auto IndustryDevelopment Plan (AIDP) in the lasttwo meetings of the Auto IndustryDevelopment Committee (AIDC).However, the Chinese bike makers saythey are being sidelined on this futureissue.The TBS is going to expire in 2011-2012but stakeholders have put their headsdown to provide requisite informationto the government and the EngineeringDevelopment Board (EDB).Chairman Association of PakistanM ot orcycle Assemblers (AP MA)Mohammad Sabir Shaikh has informedthe EDB that he has been elected for2 011 term. As per approva l ofGovernment of Pakistan ChairmanAPMA is a Member of AIDC. He askedthe EDB to allow him to attend the AIDCmeeting on behalf of the Association.The EDB is in the process of formulatingAIDP for next five years for 2/3 wheelersand Pakistan Automotive ManufacturersAssociation (PAMA) had submitted aproposal in this regard.

He said he has come to know that insuch meetings that proposal was tabledit was decided that this proposal shouldnot be discussed with Pakistani Brand

Assemblers the Members of APMA.Sabir said APMA is a representativeassociation of local two wheelers and

Auto CNG Rickshaw assemblers whichare producing more than 60 per cent ofbikes and auto CNG rickshaws but due

to DTO rules/influences DG TradeOrganization are not recognizing our

position for which we are in appeal withthem.

On the other hand PAMA is notgiving memberships to OEMs ofPakistani Brand. Some localassemblers members of APMAfiled complain against PAMAwith DG Trade Organization.He said any policy formulated by theEDB without taking view of the 60 percent stakeholders will not be acceptedwhile PAMA is not representative of 2/3wheelers assemblers.The fifth AIDC meeting deliberatedmainly on depression and the revivalprocess in the auto sector besidesdeveloping a strategy on the issues likef u t u r e o f T B S , re v i e w a n di mplemen ta t io n of AID P, lowproduction levels and ever risingincrease in prices. However, the car priceissue was not discussed in the 6th AICCmeeting held on December 8, 2010.On the life of TBS and AIDP, it wasinformed that TBS was implementedthrough finance bill and it has no timelimit while AIDP is consisted of five yeartariff plan which is up to 2011-2012. As

such AIDP is a time bar document andTBS has no time binding. However, itcan further be reviewed /refined in lightof present operational environment ofthe local industry.In the 6th AIDC meeting, it wasinformed that PAMA and PAAPAM hadheld meeting on November 12, 2010 butmore meeting were needed to reach aconsensus. In this regard, they are goingto have next meeting on February 15,2011 after which they will provide aworking plan and time line to theEDB/AIDC.On Review of minimum in-houseassembly/manufacturing facilities formanufacturing/assembly of vehicles,the EDB official had informed the 5thAIDC meeting that the Board hadforwarded the recommendationsprepared in consultation with all thestakeholders to the Federal Board ofRevenue (FBR) along with all thebudgetary proposals for 2010-2011. Theamendments as recommended by thetechnical committee headed by Mr.Feroz Khan to provide specific minimumin house facilities for specific vehiclesw e re a l so p a rt o f t he E D Brecommendations. Some of t heparticipants were of the view that thisdocument needed to be shared with thestake holders so as to see the exactfacilities proposed.

In the 6th AIDC meeting GeneralManager informed the house that EDBhad already circulated list of facilitiesto stakeholders to get a feed back withthe FBR. PAMA had already submittedits feedback on December 7. The Housein principle agreed to requirement of

defining minimum in-houseassembly/manufacturing facilities forassembly/manufacturing of vehicles.

EDB is reviewing the PAMA suggestionsand will amend it accordingly if foundappropriate and forward the revised

AIDC focuses more onfuture issues rather than

ever rising car pricesElectric car maker tries to satisfy EDB,

local assemblers

Automotive Sector - 6th AIDC meeting Review by Owais Khan

continued on next page14


AUTOMARK | January-2011

Automotive Sector - 6th AIDC meeting

document to FBR for subsequentamendment in the relevant SRO.It was decided in the meeting that theexisting players will also follow the sameassembly rules in case of any shortfall.However, they may be given sufficienttime to upgrade facilities according torevised rules and with a level playingfield to the new entrants.On draft standards for trailers and semitrailers, Mr. Sohail P. Ahmed, convenerof the sub-committee of the Safety,Quality and Environment Standards ofAIDC had informed the November AIDCmeeting that the draft standards fortrailers and semi trailers had alreadybeen forwarded to PSQCA. He furtherinformed that Mr. Ahmed Saeedmember of the sub-committee had againraised few observations which werecurrently under review by the EDB andthe industry. In this regard issue ofmarking fee being charged by the PSQSAand enforcement of standards was alsodiscussed in detail. The participantsstressed upon the need for revampingof the Motor Vehicle ExaminationSystem in the country. They were of theview that consumers view point alsoneeds to be considered while makingany standards.It was decided that the Sub Committeeof the Safety, Quality and EnvironmentStandards of the AIDC would take upthe matter with the Ministry of Scienceand Technology for early settlement ofmarking fee issue.Sub Committee may also develop closelinkages with other organizationsinvolved in refinement of Motor VehicleExamination System both in terms ofinfrastructure and amendment in MotorVehicle Ordinance.In December 8 AIDC meeting Sohail P.Ahmed informed the meeting that subcommittee had not been able to meet

the Ministry of Science and Technologyfor early settlement of marking fee issue.Like in the past meeting PAAPAM in

the December 8 meeting againexpressed serious concern over non

acceptance of budgetary proposals bythe FBR and Ministry of Finance and

requested EDB to pursue the matterwith the FBR to ensure implementation

of proposals in totality, as all theproposals made earlier are still valid.

EDB would follow up with FBR on thisissue.

On local assembly and manufacturingof electric car, General Manager Tariffinformed the 5th meeting that M/s.Karakoram Motors had approached theE D B t o a l l o w i m p o r t o fitems/components of Dynasty ElectricCar at zero rate of customs duty. In thisregard the EDB before taking anydecision has requested AIDC to giveconceptual approval of the project.Majority of the members have showedreservations on seriousness of thecompany based on their past experience.AIDC approved the concept of electriccar project subject to reviewing thecomplete technical details of the project.

In the 6th AIDC meeting,the management again

made presentation on theElectric car project. The

participants afterpresentation raised

enquiries on price of thecar, duty on components,how electric car would helpin energy conservation assuch the project is good for

the countries wherealternate source of energyis freely available, support

required from thegovernment, life of thebattery, competency ofAIDC to deal with such

project, local

manufacturing of parts etc.Representatives of Karakoram Motors

replied that price of the electric carwould be around Rs800,000. Duty onparts and components would be aroundfive to 15 per cent or few parts would be30 per cent. Overall duty element in car

price would be around Rs 150,000-200,000. Electric car would almost have

zero per cent emission.In other countries support is availableat the sale stage in the form of subsidies.In India, British Pound discount isavailable to electric car which is exportedto the UK.Charging of Electric car would bethrough front plug-in system initially athome and subsequently governmentmight establish public charging stationsat different parts of the city. Normallyelectric car would have 10km reserveindication to alert the owner for arecharge.Life of the battery would be 800 daysand up to five years in case of lithiumbattery. Initial localization level wouldbe around 50 per cent.The House formally approved theconcept of the project. It was decidedthat the company will identify exacti nc en t iv es re q uire d f rom t hegovernment. The House decided tofurther review the project in the nextmeting of the AIDC.On holding of AIDC meeting, on therequest of PAAPAM members, the nextAIDC meeting will be held on or afterJanuary 18, 2011. EDB along with someother participants were of the view thatthe AIDC meetings can only bemeaningful after PAMA and PAAPAMsubmit their progress reports in thisrespect which both jointly havepromised to finalize by February 15,2011. However, PAAPAM stressed tohave monthly meeting or at least onemore meeting after one month……..

The car price issue was not discussed in the 6th AICC meeting heldon December 8, 2010.

On the life of TBS and AIDP, it was informed that TBS was implementedthrough finance bill and it has no time limit while AIDP is consisted of

five year tariff plan which is up to 2011-201

KEEP A LONGDISTANCE

RELATIONSHIP15



Car prices in the country have notincreased more than five to six per centover the past year, whereas the cost ofproduction has increased manifold andbeen absorbed by car manufacturers,says Director Marketing Indus MotorCompany Raza Ansari.“One should also look at the problemsfaced by local manufacturers, who arein losses due to an unprecedentedincrease in production costs,” assertedAnsari.He was talking to Press in reference tothe government notification issued whichincreased the age limit of imported usedcars from three to five years. The moveis expected to hit local assemblers hardas the import of used vehicles is likelyto go up.Purchasers, on the other hand, willbenefit in the form of lower price tagsand more options to choose from. “Thiswi l l certa inly h i t al l loca l carmanufacturers, but most importantly itwill badly affect local vendors who supplyparts to assemblers,” said Ansari.Manufacturers have been repeatedly

asking the government not to increasethe age limit for import of used vehiclesbut the government has been underpressure from the public as prices oflocally manufactured cars have beenincreasing sharply for the last fewmonths.Deal er s ve rsus manuf ac tu re rsAnsari said that all three big carmanufacturers are facing toughconditions owing to a difficult businessenvironment. The Pakistani rupee hasbeen depreciated 17 per cent againstthe Japanese yen over the last one year,bumping up the cost of production.“Should we support car manufacturerswho provide employment and taxes tothe government or automobile dealerswho do not pay taxes,” he questioned.Meanwhile, car dealers assert that thesharp increase in pr ices of locallymanufactured cars was mainly due tothe high margins of manufacturers.“We do not have any objections overpr oposa ls t o br ing mor e ca rmanufacturers to the country,” counteredAnsari, in reference to the government’s

proposa ls to soften inves tmentconditions, for example by reducingannual production criterion from 500,000to 100,000 units.What analysts say“Based on our preliminary estimates,we expect that an additional 5,000 carscould be imported during this fiscal yearif the decision is implemented within afew weeks,” commented Furqan Punjanifrom Topline Securities.According to Punjani, of the total 150,000cars sold during the previous fiscal year,only 5,500 were imported vehicles.“Going forward, the import of cars cango up to between 10,000 and 13,000units.”He contrasted the current move with thesimilar situation three years back whenthe import of cars up to five years of agewas allowed.Given the prevalence of low consumerconfidence, higher imports can beexpected in the 1,000cc-1,300ccsegment where Pak Suzuki and IndusMotor are likely to be affected.

Pakistan Association of AutomotiveParts and Accessories Manufacturers(PAAPAM) hailed the CommerceMinistry decision to withdraw December8 SRO regarding used cars import underpersonal baggage, gift and transfer ofresidence schemes.A former executive committee ember ofPAAPAM, Tahir Javaid Malik said thedecision would go a long way and localvending industry would get a new leaseof life. He said the permission to allowfive-year old cars was bound to damagelocal vendor industry. He said thevendors were deeply concerned that newentrants could be allowed to import 100percent CKD parts at 5 percent, 10percent and 20 percent rates of dutiesin the first, second and third yearsrespectively. staff report

Car Assemblers decryrelaxation

PAAPAM hailswithdrawal ofSRO for usedcars’ import

The government is considering opening

up the country’s automobile industry,

particularly for investors from China,

by increasing the age limit for import of

all used vehicles, including buses,

coaches, wagons, trucks and tractors.

It has been learnt that after the age limit

for the import of used cars was relaxed

to five years, Minister for Industries and

Commerce Mir Hazar Khan Bijarani

directed his ministry to prepare a

proposal for increasing the age limit for

import of other vehicles, except

motorcycles and th ree-wheelers.

According to officials from the ministry

for industries and production, the

summary of the proposal has been sent

for approval to the Cabinet’s Economic

Coordina tion Committee (ECC).

For initiating the immediate production

of cars, the ministry has also offered to

provide bases in state owned enterprises

(SOEs). Chinese and other investors can

partner with these SOEs under a

mutually agreed equity basis. The

proposal also allows reduced customs

duties on the import of cars and parts

for new entrants.

The government claims that it is keen

to break the monopoly of local car

manufacturers and to rationalise the

prices of cars. Therefore, the government

says that it is willing to open its auto

industry for other international

competitors and for China in particular.

Age relaxationGovt considering including all vehicles

visit: www.automark.pk

Automotive Sector - Update


From Past to Present

Automobile Industry in Pakistan

Composed by: Muneeb JawedAutomotive Engineering from NED Karachi

Nine plants were in operation when theindustry was nationalized in 1972 andPakis tan Automobile Corporation(PACO) set up. It was only after 1979that PACO was finally able to implementits programs to develop the automobileindustry. To meet local requirements,PACO launched the Suzuki Project,which started production in 1984. In1991, Suzuki was manufacturing 40,846cars per annum and the deletion rateachieved was above 50 per cent. Fortransportation of smaller loads, PACOunits started the assembly of Suzuki,Isuzu and Mazda pickups, coasters, jeepsand vans. To meet the demand forheavier trucks and buses, Isuzu andHino production was undertaken atNational Motors and Republic Motors.Later Hinopak Motors was incorporatedin the private sector.In 1987, Ghandara Nissan Diesel Ltd.,a joint venture company of GhandaraNissan (Pvt) Limited, Nissan of Japanand Toyo Menka Kaisha of Japan startedcommercial production. The companymanufactures Nissan trucks and busesin Pakistan and is about to introducepassenger cars soon.In 1990, Indus Motor Company (IMC)began operations with a 20,000 unitcapacity plant to manufacture Toyotacars in Pakistan. In 1992, under theprivatization program, many PACOunits were privatized. Since then, thegovernment poli cies in respec tto the automobile manufacturingindustry remain inconsistent; its effortsto control the budget deficit have alsoslowed down development activitiesresulting in a reduction of economic

activities. The economic slump stillprevails; sales tax and other budgetarymeasures over the last years have provedto be unfavorable for the local autoindustry.Not with standing various attempts bythe Automobile industry to recommenda long term industry friendly policy toenc ourage local production a ndindigeniza tion, t he governmentcontinues to burden this industry byincreasing tariffs, sales tax from 15 to18 per cent and additional CommercialVehicle Tax (CVT). Mr. Javaid IqbalAhmed, Director of Honda Atlas Cars(Pakistan), said in a recent interviewthat an increase of three per cent in salestax, 2 to 15 per cent additional CVT andeight per cent customs duty will resultin lowering the government revenuesby Rs.5 bil lion. Besides that, theproduction cost of the units would goup, resulting in a further price increase.The compound effect of these taxes isso high on the price of the products thateither it will result in a drop in thevolume of sales or will soak up the profitmargins of these units.As compared to international Scenariothe Japanese, Europeans and Americansare pouring billions into Asian assemblyplants and parts factories. They arecounting on politically connected localpartners, setting up dealership s,conducting market research and creatingpromotional campaigns.During 2008, Pakistani rupee showeda severe depreciation against majorcurrencies, especially US dollar and Yenthat appreciated by 28% and 58%respectively, adversely affecting the auto

sector. The unexpected appreciation ofyen resulted into r ising cost ofproduction for the auto assemblers inthe country and stock pileup. However,Increase in selling prices was notsufficient to cover the hiked cost ofproduction. The overall trucks & busesmarket showed a decline of 42% during2008-2009, with total of 2626 unitssold from July 08 to March 09.The economic situation may well beseeing a turnaround in the country andexpect some big orders in the public andprivate sector including UTS Lahore,WASA, and Rescue tenders. Recentlyan order of 50 units of CNG buses fromCity District Government Karachi and50 units of Hino Dutro trucks from CityDistrict Government Lahore have beenawarded to us.But still the overall auto industry slumprecovery seems to be a long process dueto various macro economic factors,including tight liquidity, and lower creditavailability, slower GDP growth ratesand the current depressed consumerconsumption.Though the challenge is serious, we arehopeful that this phase will be reducedwith the passage of time. It is theresponsibility of the economic mastersto show professionalism and maturityduring these hard times. The uplift ofauto sector will also depend on theability to develop and produce a widerange of superiorquality vehicles for our markets, strongbond with major suppliers, reduction inproduction costs, and fi nanci aldevelopments for capital investments.

Mr. Javaid Iqbal Ahmed, Director of Honda Atlas Cars (Pakistan),said in a recent interview that an increase of three per cent insales tax, 2 to 15 per cent additional CVT and eight per centcustoms duty will result in lowering the government revenues

by Rs.5 billion.


Exclusive Review


by Shahzad Tabishfrom NED University


Toyota is a brand name recognized

globally. The company itself evolved inthe year 1936 & since then it has looked

ahead & “Moved forward” as its ownslogan defines its progress well. As far

as sales are concerned Toyota finds itselfat the very top. From North America to

Europe & from Middle East to Asia,Toyota has invaded each & every terrain

& has been successful, keeping the primeobjectives of providing quality along

with affordability.A vast & diverse range of vehicles area

available in the lineup of vehicles thatroll out with Toyota’s badge upon them.

Amongst the vast variety of brands thathave a rich history of Toyota’s supreme

reliability & workability in any condition,Hilux finds itself amongst the top

brands, if not right at the top.Hilux is a compact utility pickup truck

produced since 1968. Just like otherToyota brands, since its introduction

four decades ago, its evolution has notstopped. It is justified if said that Hilux

has mastered & God fathered the pickuptruck category with implementation of

continuous research. The Hilux isrenowned for its supreme & sturdy

reli ab il it y c hara ct eri st ic s. Theengineering that makes up the Hilux is

simple & easy to understand yet it

incorporates the research of very latest

technology & this fact takes the Hiluxahead of any other counterpart. Many

components of the vehicle are easilymodified of replaced if necessary to

suit the terrain it is desired to be usedon, without changing the drive

chara cter istic s of the vehi cle.Globally the Hilux is available in

multiple engine configurations, inaccordance to the respective regions

customer & market needs. Engines ofthe Hilux are fitted with a turbo charger

or a combination of intercooler & turbocharger to enhance the performance &

encounter the lack of air in higheraltitudes.

Very recently advert movie has beenlaunched on local television by Indus

Motor Company, previewing the Hilux.The local Hilux has a 2KD-FTV engine,

displacing 2.5L, producing 100bhp &260Nm torque. The engine features

direct fuel injection technology for allfour 4 cylinders, that is why it is named

D-4D. The drive train of the vehicle hasa 4x4 option that makes it a perfect off-

roader. Tests by several authorities &television motor shows have proved the

off roading capability of the Hilux,making it a “go anywhere” utility vehicle.

The vehicle is available locally in 2options. The standard 4x4 & the up spec

4x4. The standard version has a startingprice of around 2,350,000 pkr & the up-

spec is available for 2,750,000 pkr.Safety features include ABS & two

frontal SRS Airbags, both of thesefeatures are available as an option in the

up-spec version; however the 15” frontaldisc brakes ensure very efficient braking

effect even without ABS. The overallsafety performance in case of collision

(frontal & side impact) or roll-over of

the vehicle gets 4 star

safety ratings fromAutomobile safety

authorities.The interior of the

vehicle is very basicyet it is a nice place

to be. The frontpassenger cabin is very spacious &

comfortable & has utility spaces forbottles, cup holders & storing different

stuff. The rear seats however do not fitthe comfort standards that well & are

not ideal at all for long drives; howeverthe seats can be utilized for storing stuff

beneath them. Another feature includesthe touch screen DVD audio system

which is available only in the up-specversion as an option. All in all if an

individual is ready to invest over 2million pkr for an automobile, he must

go for the up-spec version of the vehicle,as it provides every option all the way

from safety to luxury.The overall characteristics of the vehicle

are ideal for northern mountainousreg i ons of Pa ki st a n; h owev er

enthusiast’s nationwide find will find itas an option for a means of touring any

terrains across Pakistan.Hilux has been a famous brand for over

two decades in Pakistan & it continuesto be a dominator in its class. No rival

can even come close to the standardsthe vehicle has offered for almost half a

century. This vehicle does not need anyadvertisement campaign that we see

now days on television; it just remindseveryone about the legacy of the vehicle

that exists & is to remain. Hilux is amust buy for the people who seek a

vehicle in this particular category.Cheers!

The “Pickup” in the NewsToyota Hilux

This vehicle does not need any advertisementcampaign that we see now days on television;

it just reminds everyone about the legacyof the vehicle that exists & is to remain.

Automotive Sector - Review


Rise and Fall of localmotorcycle industryfrom 2001 to 2010

Irrespective of the business environmentprevailing in the Army and thedemocratic set ups in the country from2001 to 2010, the two wheeler industryhas performed exceptionally well ascompared to other engineering sectors.Pakistan had witnessed several politicalchanges. General Pervaiz Musharraftook over country’s control in 1998 byousting Nawaz Sharif government.Musharraf stayed till 2007. A democraticgovernment of Pakistan Peoples Party(PPP) came into power in 2008. BenazirBhutto lost her life in a suicide attack inRawalpindi in December 20 07.From 2001 to 2010, consumerscontinued to buy two wheelers especiallyin rural areas where the share is over60 per cent in total bike sales dependingon good yield in var ious crops.Because of unsatisfactory public andprivate transport system in the cities,consumers were more interested in

purchasing two wheelers in order toreach the place of work more quicklyrather than wasting time in trafficcongestion.Japanese bikes are more popular in ruralareas because of their durability whileChinese bikes hold good population inurban areas especially in the mega cityKarachi.The real boost in bike sales came in theMusharraf era owing to liberal policiesof allowing Chinese bike makers aimedat providing cheap bikes to theconsumers besides breaking themonopoly of a leading bike maker in70cc category.Because of the fact that Japanese bikeswere highly priced – consumers receiveda sigh of relief with the introduction ofChinese bikes owing to a difference ofRs 15,000-20,000 as compared toJapanese bikes.However, the Engineering Development

Board (EDB) had created a lot of hurdleson the dictation of a Japanese bikemaker but Chinese bike makers sailedsmoothly.A tough time had come in the Zardarigovernment when overall motorcycleproduction had plunged to 917,628 unitsin 2008-2009 as compared to 1,054,102in 2007-2008 owing to looming politicaland economic uncertainty, rupeedevaluation against the dollar, some lowproduction of various crops, increase inbike prices etc.The year 2009-2010 proved highlybeneficial for both Chinese and Japanesebike makers of achieving the productionof 1,387,000 units thanks to good cropof wheat, cotton, rice and some minorcrops besides some polit ical andeconomic stability in the country. Theprices of bikes especially Japanese ofmakes had been raised sharply owingto rising Yen against Pak rupee, increase

The real boost in bike sales came in theMusharraf era owing to liberal policiesof allowing Chinese bike makers aimed

at providing cheap bikes to the consumersbesides breaking the monopoly of aleading bike maker in 70cc category.

by Sabir Shaikh - Chairman APMA

AUTOMARK | January-2011 21

Exclusive Review - for Automark magazine




in sales tax and other levies, raw materialprices etc in the last three years but itdid not make any big impact on sales.The current fiscal year 2010-2011 hasnot been so impressive in terms of salesand production as compared to 2009-2010 owing to floods from July toO c t o b e r i n 2 0 1 0 i n K h y b e rPakhtunkhawa, Punjab and Sindhmainly, destroying land and crops etc.Sales of bikes remained under pressurefrom July to October 2010 but startedrecovering from November 2010. Theyear 2010 also see frequent price hikemade by Japanese bike makers.If the industry is compared with Indiabike industry, Pakistani industry lackfar from the Indian industry where 70cc

two wheelers had been suspendedseveral years ago. In Pakistan 70cc hadbeen dominating for decades and noefforts were made to do away from itsproduction.Consumers are still using 1993 made70cc bike design introduced by AtlasHonda which was followed by theChinese bike makers. Those companieshaving volume are not ready to take therisk of changing the designs as it willc ost more and may lose heavyinvestments in case the end users do notlike it. Some Chinese bike makers havinglow volumes are venturing to bring newdesign CD-70cc in order to test the tasteof consumers.Even in 100cc and 125 cc, a leading

Japanese player is producing same olddesign. Only stickers of petrol tank andside covers have been changed ratherthan making a complete change indesign.Chinese bike assemblers said that thegovernment should reduce the importduty on CBU bikes so that theassemblers could bring the new designmodels from their parent companiesabroad in order to test the market.However, Atlas Honda had introducedEuro II models in 100cc segment.Here is a journey of motorcycle industryfrom 2001 to 2010 that faced ups anddowns during the decade.

Exclusive Review

Year 2001- CBU Rate of Duty on Motorcycles 105%This rate is applicable since last 20 years (from 1981)CKD Rate of Duty on Motorcycle Parts 25%

- Government Policy for motorcycle industry Deletion Program- Checking Department on Motorcycle Industry by EDB/CBR- Number of Assemblers: 3 Japanese and 3 Chinese: Total=6- Association: PAMA with only 3 Japanese were members.

Year 2002Finance Minister Shaukat Aziz reduced CBU rate of duty inthe budget 2001-2002 from 105% to 75% after two weeks onthe request of Atlas Group and PAMA. Finance Ministerincreased CBU rate of Duty from 75% to 90%.

- CKD Rate of Duty on Motorcycle Parts 25%- Government Policy for motorcycle industry Deletion Program- Checking Department on Motorcycle Industry EDB/CBR- Number of Assemblers: 3 Japanese, Honda, Yamaha andSuzuki. 3 Chinese, Sohrab, Qingqi, and HeroMany Motorcycle Dealers including Babar Autos, Sitara AutoImpex, Moon Traders from Karachi and Lahore startedImporting CBU Motorcycles from China due to duty reductionby the Government from 105% to 90%.- Government introduced PSQCA laws for motorcycle industry.Many motorcycle dealers who also became importer of CBUmotorcycles started local assembling of motorcycles such as:-

1. Rocket Motorcycle2. Guangta Motorcycle3. Star Motorcycle4. Jinan Motorcycle5. Super Star MotorcycleThese five companies started local assembling of motorcyclesbut the EDB stopped them for manufacturing because theytold them before starting assembling you must have to approveDeletion Program from EDB.

Local Assemblers established their own association namelySindh Motorcycle Assemblers Association – SMAA andMuhammad Sabir Shaikh was the First President of localmotorcycle assemblers.

Year 2003- CBU Rate of Duty on Motorcycles reduced from 90% to 75%-CKD rate of duty reduced from 25% to 20%- Govt. approved 4 motorcycle assemblers to start localassembling in the same year government again approved 3motorcycle assembler to start production.- Number of vendors / parts manufacturer increased fromless than 100 to 125 units.- Motorcycle sales increased in Pakistan.- Japanese assemblers reduced Rs. 10,000/- on theirmotorcycles-The 70cc Motorcycle price comes down to Rs. 70,000/- Rs.49,900/-- Local assemblers became eight after approval of EDB.

Year 2004- CBU Rate of Duty on Motorcycles only 75%- CKD Rate of Duty on Motorcycles increased 30%- Govt again approved 10 motorcycle assemblers in this year- Number of vendors/parts manufacturer increased from 125to 200 units.- Near about sixteen motorcycle assemblers started productionof 70cc bikes.

Year 2005

- CBU Rate of Duty on Motorcycles only 75%- CKD Rate of Duty on Motorcycles increased to 30% Number of approved Assemblers closed to about 60- Very tough completion started and near about 20 motorcycleassembling units came on verge of collapse- Total motorcycle production increased to 375,000 units- Govt started making draft to close chapter of deletion program




Exclusive Review

and new policy would be issued in next year.

Year 2006- CBU Rate of Duty on Motorcycles 75%- CKD Rate of Duty on Motorcycles increased 30%- Govt closed the policy of auto sector of deletion program- Govt introduced Tariff based system (TBS) to auto sectorthrough SRO655/2006 and SRO 656/2006 and an otherSRO693/2006- Due to new policy assemblers were very happy and blackmailing of EDB/CBR was closed.- As many as more than twenty small and medium-sized unitsacross the country were nearing closure and the manufacturersfeared that their small-sized units would be in jeopardy byJuly this year 2006. Vice Chairman Muhammad Sabir Shaikhof Association of Pakistan Motorcycle Assemblers (APMA)said that some 22 out of 38 units had been compelled to shrinktheir business volumes in the wake of rising competition, non-implementation of TBS and largely provided credit facility bythe big manufacturers to the dealers.At that time most of the companies had cut down the size oftheir employees and have fired 50 percent of the staff membersas these units are small in size and could not spend too muchon employees salaries.“Giant – sized companies manufactured their motor bikes inbulk quality and engaged in offloading their stocks aggressivelyinto the markets besides offering special and attractivepackages to their dealers, which small assemblers could notafford.Some financially sound companies were throwing their unitsinto the market and conveyed to their dealers to sell theirproducts either on full cash or through leasing. The small-sized motorcycle manufacturers were perplexed over thesituation in which big companies were launching new modelsand designs, while, they (small-sized assemblers) were fightingfor their survival. On the one hand, Chinese bike makers werecompeting with big companies by improving our product’squality and design, while on the other hand, the prices of ourproducts have also declined significantly from Rs. 36,000/-to Rs. 32,500/- per unit during the past four to five monthsdue to stiff completion.In these circumstances TBS was coming thus creating fearthat the big companies would slash their products prices moresignificantly this time resulting in losing the market share.The aggregate investment in the motorcycle industry hadreached to Rs. 5 billion, while the units which were near toclosure at this point in time, got the license and had investedapproximately Rs 50 million each some three years back.US AID and independent agency through CSF made a progressreport on Motorcycle Industry of Pakistan.

Year 2007CBU rate of custom duty on motorcycles 65%CKD rate of duty on non localized parts 15%CKD rate of duty on localized parts 47.5%Raw material rate of duty 0%Sub Component (%) 5%Components 10%Sub assembly 20%Through new formula / structure of custom duty in TBS big

companies started big fraud with the government throughofficially tax evasion by using different import formula forlocalized parts also and importing parts instead of 47.5% bypaying only 5%, 10% and 20% using sub-component,component and sub-assembly term it was a big joke inmotorcycle parts history because up to 150cc motorcycle itwas not a very big technology it was same as engine less cycleor toy.

Year 2008In Pakistan due to many motorcycle assemblers and pricereduction the import of CBU motorcycles were stopped because65% duty was very high and if any importer importedmotorcycle paying 65% custom duty cannot survive in themarket.The very important point is that if we import small car inPakistan the CBU rate of duty is 50% and if we importmotorcycle the CBU rate of duty is 65% why?In this year due to government’s change in Pakistan the dollarprice was increased from Rs. 62.00 to Rs. 83.00. It was a bigshock to all industry including motorcycle sector of Pakistan.

Year 2009

Due to very high rate of US$ the motorcycle industry was introuble because more than sixty players were in the marketand all of them were making 70cc motorcycle and the wholesale price was Rs. 36000/- and the retail price was Rs36500/-and no profit to motorcycle assemblers, electricity problem,gas problem, law & order problem etc. Due to very toughcompetition this year assemblers were in trouble but the goodnews was that many assemblers started export to Bangladesh,Afghanistan and some other countries of the world.

Year 2010In the year 2009-10 all motorcycle assemblers produced recordaround 1.4 million motorcycles out of this 3 Japaneseassemblers produced 622,000 units and all other PakistaniAssemblers affiliated with Chinese companies produced778,000 units which was more than 60% of total production.Japanese assemblers were producing 40% of the market.Local Chinese bike assemblers were producing 60% of themarket.EDB is still same attitude and not inviting local assemblersin the policy matters and Japanese assemblers have influencein the EDB directly and through PAMA and all the policymatters discussed with PAMA members and not localassemblers through their association APMA.

Decision by APMA Managing Committee for theyear 2011- If PAMA and PAAPAM including EDB interested to makesome consensus on new policy for auto sector includingmotorcycle industry and they want to discuss all these issueswith Mr. Muhammad Imtiaz Ahmed Ex-Chairman APMA butthey must have to call newly elected Chairman APMA for theyear 2011 Mr. Muhammad Sabir Shaikh for all the discussionsotherwise 60% producing industry will not happy with newpolicy.....




Exclusive Review

Due to very high rate of CBU duty on motorcyclesthe imported motorcycle business is closed inPakistan.The small cars CBU duty in Pakistan is 50% but onmotorcycles CBU duty is 65%.If Govt. reduced CBU rate of duty on Motorcyclesfrom 65% to 45% it is guaranteed that not morethan 2% of total Pakistan production will be importin Pakistan.

The government must reduce CBU rate of duty onMotorcycles from 65% to 45% becausethis is in the favor of Pakistani motorcycle industryt o i ntroduc e more model s/desi gns aft erc hecking / test ing through CBU import s.All over the world including China, India, Japan,Thailand and many countries have more than 100models / designs in motorcycle industry but we haveonly 3 models / designs in Pakistan motorcycleindustry.

Sourc: PAMA


Al Ghazi Tractors Ltd, an Al-Futtaimgroup company and Pakistan's leadingagricultural tractor manufacturers, wasnamed winners of the 2010 B.I.D.International Quality Crown Awardduring the awards ceremony held inLondon recently.AGTL wa s ho noured for theirnoteworthy commitment to quality,excellence and innovation at theInternational Quality Crown Conventionin front of an august gathering of leadingcompanies from 43 countries. The B.I.D.International Quality trophy is presentedto those companies from around theworld that best adhere to excellence andinnovation in their practices, puttingquality first.Parvez Ali, Chief Executive Officer,AGTL received the award from Jose E.Prieto, President of Business InitiativeDirections, who applauded Al GhaziTractors strict adherence to qualitypractices and innovation.Robert Willett, Group CEO, Al-Futtaim,said the prestigious award is a truereflection of the company's sustainedbenchmarking qualities for excellenceand innovation, and congratulated Mr.Ali for keeping the Al-Futtaim groupstandards high."The award is a rare distinction andspeaks well of Pervez's leadership andhow the global business communityviews AGTL. Pervez has put strongvalues of quality and customersatisfaction which has helped reap himrich rewards. This award is trulydeserved and will serve as a role modelfor other companies in the Al-Futtaimenterprise. On behalf of everyone in theGroup, I congratulate Pervez and histeam for this great achievement andwish him more successes," Mr Willettsaid.B.I.D.'s International Quality CrownHall of Fame has Fortune 500 listcompanies including India's RelianceIndustries & Reliance Energy (ranked206); Indian Oil Corporation Limited(116); Korea Electric Power (245) andBeijing COFCO Plaza Development(398). Other firms worthy of mentioninclude Turner Construction (USA);

Plamex-Plantronics (USA); and giantfrom USA-Mexico, Franklin Electric,Viking Line (Finland); Alcoa Howmet(France); Haki (Sweden); AnsaldoEnergy (Italy); Zepter (Austria); RAO-Unified Energy Systems (Russia); Als &Cachou-TBWA (France) and Tata Group(India).Len Hunt, President, Al-FuttaimAutomotive and Chairman AGTL,commented: "AGTL led by Pervez servesas an example for other companies thatwish to progress in the constantlychanging and challenging economic andbusiness environment. His leadershipinspires the rest of Al-Futtaim'sautomotive division to abide by the samehigh standards of quality. Kudos toPervez and his team!"The Quality Crown award is among aslew of top notch awards won by AGTLthis year (2010) including the TopCompanies Award of the Karachi StockExchange, Corporate Excellence Awardof the Management Association ofPakistan, Best Annual Reports Awardof t he I nst it ute o f Cha rt eredAccountants, Best Presented AccountsAward of SAFA-South Asian Federationof Accountants and the Best CalendarAward of the National Council OfCulture and Arts.Mr Ali said: "I'm indeed excited thatAGTL today stands among globalstalwarts in the business world. I wishto thank our business partners and Al-Futtaim for giving us the support andcommitment. Our attitude - striving forconstant change instead of just acceptingthe status quo - continues to win usglobal accolades and this major featherin our cap will spur us to greater glory."

About Al-Ghazi TractorsLtdIncorporated in June 1983, privatisedin December 1991 and listed on theKarachi Stock Exchange, Al-GhaziTractors Limited is part of the Al-Futtaim group with over 94% foreignshareholding. With its head office inKarachi, the AGTL plant at Dera GhaziKhan manufactures New Holland (Fiat)tractors in technical collaboration with

CNH - Case New Holland, the NumberOne manufacturer of agriculturaltractors in the world. AGTL was the firstautomobile company in Pakistan to earnthe ISO-9000 certification. With yearlyaudits the company is now registeredfor ISO-9001:2008 up to December 30,20 12. AGTL was also the f irstautomobile company in Pakistan tointroduce a high profile ERP solution toput the IT process in full circle.Commissioned in January 2002, thiscomplete ERP thus inter-links al lprocesses and supports company's widerstrategic objectives. With mechanisationof farming and water conservation highon the Pakistan government agenda,AGTL now offers smart irrigationsolutions in technical collaboration withworld renowned companies.

About Al-FuttaimEstablished in the 1930s as a tradingbusiness, Al-Futtaim is one of the mostprogressive regional business housesheadquartered in Dubai, United ArabEmirates. Al-Futtaim operates throughmore than 65 companies across sectorsas diverse as commerce, industry andservices, employing in excess of 20,000people across the UAE, Bahrain, Kuwait,Oman, Qatar, Saudi Arabia, Egypt,Pakistan, Sri Lanka, Syria, Singapore,Malaysia and Europe. Entrepreneurshipand rigorous customer focus has enabledAl-Futtaim to grow its business byresponding to the changing needs of thecustomers and societies in which itoperates. Al-Futtaim is committed tooffering customers an unrivalled choiceof th e world's best brands withexceptional standards of customerservice and after sales support.Structured into f ive operationaldivisions; automotive, retail, electronics,engineering and technologies, real estateand construction, and financial services,Al-Futtaim maintains a decentralisedapproach, giving individual businessesflexibility and versatility to maintain acompetitive stance . This benefitsemployees, providing a clearly definedwork culture where individuals areempowered wit h a uthor ity andresponsibility for their work.. .. .


Al Ghazi Tractorswin prestigious

Quality Crown Award

Agriculture Sector - Milestone



Car manufacturingChina invited toestablish plant

The Ministry of Industries & Production(MoI&P) offers the Government ofChina for establishment of the plant ofelectric cars manufacturing in its ExportProcessing Zones (EPZs).Pakistan invites Chinese investors to setup such a facility in the ExportProcessing Zones (EPZs) with a view totarget the Middle East market which inaddition to having close proximity toPakistan is a Trans-shipment hub forre-export to other countries of MiddleEast, Far East, Africa, Europe, Americaand Central Asia. Best locations forestablishment of such a plant areKarachi and Gwa dar. Attractiveincentives for manufacturing in Export

Processing Zones are that an import ofall the inputs for manufacturing in theEPZs are exempt from all duties andtaxes for the purpose of exports andfrom this zone is on 0% duties. Moreincentives over and above available toPetrol or Diesel cars for such a projectare also under consideration. It ispertinent to mention here that theChinese government is determined tobecome a world leader in greentechnology and it plans to invest billionsof dollars over the next few years todevelop electric and hybrid vehicles.According to available informationChina has plans to have 5 million electriccars on the roads by 2020 which

accounts for 35% of the global electricvehicle market. Presently a localentrepreneur has set up a facility formanufacturing of Electric car with thename of Karakoram Motors Companyat Karachi. The plant has been relocatedfrom Canada. This facility is basicallyintended for export and local market.The c ompa ny has suc cess ful lymanufactured a prototype of electriccar. Government of China as a jointventure with this (Karakoram Motors)Company or with 100% equity mayexplore possibility of making Pakistanhub of a ctivi ty in t he f ield ofmanufacturing and marketing electriccars in this region and beyond.....

Pama flays newentrant policy

The Pakistan Automotive ManufacturersAssociation (Pama) has stronglyobjected to the proposed 'unprecedentedpreferential treatment' to the newcomersat the cost of the investment alreadymade by the existing original equipmentmanufacturers (OMEs).At the same time, it has suggested thatif the government wants to facilitate newentrant, it can provide facilities like softloans, land, infrastructure, etc, to thenew entrants, which may not hurt theexisting players.In a letter sent to Finance Minister DrAbdul Hafeez Sheikh on Dec 31, PAMAreferred to reports that the governmentis planning to further relax the NewE ntrant P oli cy (Auto IndustryInvestment Policy), contained in AutoIndustry Development Program (AIDP).PAMA members welcomed the additionof new OMEs to Pakistan's auto industryas "healthy competition always resultsin increase in the market size andbenefits the consumer and the localvendor industry." However, giving anundue and unfair edge to the newentrant will damage the investmentalready made by existing OEMs. TheAIDP provided facility to a new entrant

to import 100 percent CKD kit at aconcessionary rate of 32.5 percent forthree years without using any locallymade component.Again, PAMA, referring to reports, saidthat the government has further relaxedthis new entrant policy by allowingimport of 100 percent CKD at 5 percentcustoms duty in the first year, 10 percentduty in the second year and 20 percentduty in the third year, "which isworrisome for our members as itprovides unequal opportunity for newand existing players." To support thispolicy change, it is cited that the existingOMEs, when they star ted thei ro pera ti ons, als o enj oye d suchconcessions, which is inaccurate andcould be confirmed from the ministries'records, PAMA said.It further emphasised that no existingOME enjoys the privilege of importing100 percent CKD. There was a ProductSpecific Deletion Program (SPDP) whichhad to be followed with initiallocalisation. Later, the system wasreplaced with Industry-Specific DeletionProgram (ISDP) which was followedbefore the current Tariff Based System(TBS). New entrant or introduction of

new mode by existing OEM enjoyedsame treatment.To update, initially in the ISDP (firstedition from 1996 up to June 2001), thenew entrant was supposed to start atthe industry level of localisation achievedin the previous year, which used to be2 percent less for 800cc, 3 percent lessfor 800 to 1000cc and 4 percent less forabove 1200cc. This was followed by thecurrent Tariff Based System (TBS).Later in the second edition of ISDP i.e.,from July 2001 to 2005, deletion levelfor new entrants was further relaxed to6 percent less than the existing deletiontarget but had to catch up with theindustry level in two years, and half ofwhich was to be done within the firstyear. Thus, in no case duty concessionwas allowed to the existing OEM whent hey sta r ted thei r opera ti ons.In the light of above, PAMA submittedthat the new entrant policy in itsproposed form is discriminatory and thesame may, therefore, be modified so asto give level playing field to all players,the existing and any new entrant in theautomobile sector....

Autmotive Sector - Update



Automotive Sector - Update

Consistent policies tostimulate investment in

auto industry

Press Conference

CEO Indus Motor Corporation (IMC), Pervaiz Ghais, said thatthe government wants to lure new car manufacturers but at

the same time it is encouraging car imports.

Consistent and long-term policies arenecessary to ensurefurther investment int h e a u t o mo b i l ese ct o r, Di rec to r

Gen era l P a ki st a n Aut omo t i veManufacturers Association, AbdulWaheed, said on January 7, 2011.In a media briefing, Waheed said thatautomakers would welcome new carmanufacturers or original equipmentmanufactu rers (OEMs) as it wil lstrengthen the auto industry withhandsome investments and a healthycompetition.The government should facilitate newentrants with soft loans, land provisionand infrastructure development insteadof deviating from the Auto IndustryDevelopment Plan (AIDP), he added.He explained that OEMs are importingcomponents, which are not produced inthe country, at 32.5 per cent duty.However, if they import any componentsthat are produced in the country theywould have to pay a duty of 50 per cent.“It is an agreed arrangement thatprotects rights of local vendors,” he said.However, if new entrants are allowed toimport 100 per cent components at 32.5per cent duty for some years, it willseverely affect the business of local auto-part vendors and will also give an edge

to the new entrants over exis tingmanufacturers.He said that a proposed policy hasrelaxed customs duties for new entrantsallowing them to import completelyknocked down (CKD) kits at five percent duty in the first year, 10 per centin the second year and 20 per cent inthe third year, which will deny a level-playing field to existing manufacturers,besides pushing auto venders out ofbusiness.CEO Indus Motor Corporation (IMC),Pervaiz Ghais, said that the governmentwants to lure new car manufacturersbut at the same time it is encouragingcar imports.Director Marketing IMC, Raza Ansari,s a i d t h a t l o c a l a ut o m o b i l emanufacturers have been workingaggressively on AIDP to bridge thesupply and demand gap which has beenreduced to zero and cars of IMC areavailable with its dealers.

Ansari said that pr ices of someimportant inputs such as steel haveincreased 26 per cent over the last twoyea rs, while Ja pa nese yen hasappreciated by 22 per cent and the USdollar by six per cent. However, IMChas increased its vehicle prices by onlyseven per cent during the period.He claimed that many IMC variantsbeing produced in Pakistan are cheaperthan those in India and Thailand.Ansari said that implementation of AIDPwill help the government support theailing economy as the local industry willnot only save foreign exchange but willalso provide more revenues th animported vehicles.Meanwhile, car importers met PresidentFederation of Pakistan Chambers ofCommerce and Industry (FPCCI),Senator Haji Ghulam Ali, on Friday toraise their concerns. Ali assured thedelegation of All Pakistan Motor DealersAssociation (APMDA) that he willdiscuss the issues in the Senate and atgovernment level.After allowing imports of five-year-oldcars, the government abruptly scrappedits decision in less than a month,sparking worries among car importerswho have already purchased used carsworth Rs5-6 billion......

Director Marketing IMC, Raza Ansari, said that localautomobile manufacturers have been working aggressively

on AIDP to bridge the supply and demand gap whichhas been reduced to zero and cars of IMC are

available with its dealers.

AUTOMARK | January-2011 27



DuPont Pakistan Operations (Pvt.) Ltd.,under a community fund programme,has rec ently upg ra ded Ca pi ta lDevelopment Authority (CDA) FHQ'scontrol room in Islamabad. Under thisprogramme, DuPont renovated CDA firehouse and contributed Nomex(r) heatand flame-resistant suits, fireman glovesand hoods, fireman Tychem(r) C & Fchemical protection suits.In this connection, a formal ceremonytook place at the CDA Emergency &Disaster Management headquarters"I am really thankful to DuPont fortaking this initiative. They have helpedus by upgrading the CDA fire station.Our firefighters wil l now be betterequipped with DuPont suits, an excellentmaterial when faced with acute firesituations. With recent incidences ofaircraft crash and ot her crisis,contributions by DuPont will enhanceefficiency. The current system needshelp and I am grateful to DuPont. Wehope to see continued support fromthem in the future too. I would also liketo thank and congratulate al l our

firefighters for their hard work anddedication," said Mr. Shaukat AliMohmand - Member (Administration),Capital Development Authority. "Safetyand protection, as well as our other corev al ues of re spec t f or peopl e,environmental stewardship, and highethical standards, are at the heart ofeverything we do at DuPont. Thesefirefighters are our real heroes of thecountry that serve our community andprovide safety and protection tothousands of people. We hope thiscontribution wil l help support the

important work of thesebrav e f i ght ers, whop r o v i d e c r i t i c a lemergenc y responseservices. Contributing tosafer communities is justone more way tha tDuPont is working to bea good corporate citizenin Pakistan," said TauqirAhmed, Chief ExecutiveOfficer, DuPont PakistanOperations (Pvt.) Ltd."The CDA Emergency &

Disaster Management has played a keyrole in managing major crises, including2005 earth quake crisis and recentfloods. Centrally located, CDA firestationfacilitates major business centers proneto substantial fire incidences. Numerousindustr ial accidents and naturalcalamities have led to several losses ofprecious lives and property due to lackof resources available to our fire stationsand fire fighters. They have no accessto strong protective gears to face theseextreme conditions. Hence, DuPontPakistan is extending its contributionst o the E me rg en cy & Dis ast erManagement to help save lives. I wouldlike to thank Mr. Ahsan Ali Mangi,Mansoor Ahmed Khan - DirectorateEmergency & Disaster Management andthe entire CDA team and our specialthanks to our distributor EscortsInternational for their generous supportand financial contribution to thisprogram," said Kamran Khan, BusinessM a n a g e r , D uP o n t P ro t e c t i o nTechnologies. -PR

DuPont helps upgradeCDA's fire systems

I would like to thank Mr. Ahsan Ali Mangi, Mansoor Ahmed Khan - DirectorateEmergency & Disaster Management and the entire CDA team and our specialthanks to our distributor Escorts International for their generous support and

financial contribution to this program,"said Kamran Khan, Business Manager, DuPont Protection Technologies.

Community Services - EventSocial Responsibility – Event


After carbu retor, Electronic FuelInjection (EFI) is the well-knowntechnology to the world, which iscompletely being used in Japan,America, Europe, Malaysia and othermost developed countries, but in thirdworld countries like India, Pakistan,Bangladesh and so fourth, there are stillusing both EFI and carburetor. In thelate 1980s, the first world automobilecompanies stopped their assembly linesfor carburetor; they have not beenmaking carburetor cars since 1980s.There are many reasons and benefitsbehind this.EFI is fully computerized controlledsystem which takes help with sensors.It does not require tuning. It has fuelinjectors in order to inject the fuel incylinder, the injector break the fuel intofine particles which help to give bettercombustion in power stork. EFI consiston fuel system, air supply and fuelmanagement. Fuel management is sub-divided into sensor, ECU and actuator.It use electronically computerized fuelinjector to spray the fuel. There are twobasic systems. Throttle body injection(also called single point injection) andMulti-Point injection. Throttle bodyinjection sprays the fuel into the air asit passes through into the intakemanifold. Multi-Point injection hasinjector freed cylinder which sprays thefuel directly into the intake valve port.

PartsThe hold system has a fuel tank to storethe fuel. A Fuel Pump to circulate fueland provide pressure in the system. AFuel Filter to clean the fuel and protectthe injectors. Fuel Rail pipe to supply

the fuel to the injectors. Injectors whichspray into the intake valve ports. APressure Regulator to control thepressure in system. A Throttle body withThrottle valve to control the fowl of airto the engine. A air cleaner, ducking andair flow meter to provide clean measuredair and a plenum chamber or searchchamber to tempt the flow of air. Thereis also an Electronic Control Unit, acomputer that receive data from sensorsaround the engine, it process is thestarter and uses the results to operatethe injectors.

BenefitsSmoother and Dependable engineresponse during quick transit ions.It exhausts less pollution to theenvironment.Better operation at a high or low ambienttemperature.Increase fuel efficiency.Increase maintenance intervals.Per liter, it gives more powerAt low temperature EFI engine startsearlier.It controls the ideal speed at low rpm.

CarburetorCarburetors have been around almostas long as the car itself. Its functionalitycan be explained as a device that deliversthe correct amount of fuel to the engineaccording to the air that is forcedthrough the engine by atmosphericpressure. The initial cost of a carburetorengine is almost five times cheaper thanan electronic fuel injected one, althoughmaintenance costs could perhaps setone back a bit. The clear advantage of acarburetor engine is that it is notrestricted by how much gas is pumpedfrom the fuel tank. This means that anymodifications to the cam in an attemptto make the engine "breathe better" willallow the cylinders to pull more fuelthrough the carburetor resulting in amore dense explosive mixture in thecombustion chamber. The end result…unrivaled power!The carburetor does, however, comewith a host of disadvantages. Firstly,with the way the world is moving toward

lower gas emissions,driving a car with acarburetor enginemay get you lockedu p i n c e r t a i ncountries. Secondly,fuel ec onomy isd e f i n i t e l y n o tsomething that youcan expect from your standardcarburetor. You would have to almostindefinitely be tuning your carburetorengine to offset changing weather andatmospheric conditions. Finally, withthe current unpredictable fluctuationsin gas prices worldwide, maintaining acarburetor engine would eventually onlyis an option for car enthusiasts who arenot adversely affected by erratic worldmarkets.

Advantages of fuelinjectionsA fuel injection system delivers a moreaccurate and equal quantity of fuel toeach cylinder than carburetor does. Thisimproves the cylinder-to-cylinderdistribution.The accurate fuel metering helps inreduc ing the tox ic combustionbyproducts emitted.Fuel injection helps in emitting less airpollutants than a carbureted engine doesand helps in reducing pollution.A fuel injected engine produces morepower than an equivalent carburetedengine.Fuel injection improves fuel efficiencyof the engine. Because of the cylinder tocylinder fuel distribution, less fuel isrequired for the same out put.


Electronic Fuel Injection(EFI) & Carburetor

Fuel injection helps in emitting less air pollutants than a carburetedengine does and helps in reducing pollution

by Omar Rashdifrom St. Patrick’s Technical InstituteAutomotive Inside - Exclusive Article


Federal Secretary, Ministry of Industries

and Production, Abdul Ghaffar Soomrohas said that the ministry has once again

started consultation process with thes t a k e h o l d e r s t o p r e p a r e a

comprehensive industrial policy.Addressing a joint meeting of industry,

investment and privatisation and humanresources and social development sub-

committees of Karachi Chamber ofCommerce and Industry (KCCI) on

Monday, he said that the country hasno comprehensive industrial policy at

present which has created manyproblems for smooth operation and

investment in the industrial sectors.He added that earlier, efforts were made

to prepare an industrial policy and

directives were issued to consult all

stakeholders rather than preparingpolicy while sitt ing in the office.

However, he admitted, the draft of policyprepa red i n co nsulta ti on wit h

stakeholders was neither impermeablenor practicable. He stressed that

industries and investment issues cannot be resolved without having a

comprehensive industrial policy.Repl yin g to a quest io n a bo ut

Engineering Development Board (EDB)which only caters to the needs of auto

sector development and does nothingfor other sectors, Soomro said the

board's role in engineering sectordevelopment will be defined in the

industrial policy. He informed that a

draft of national engineering export

strategy has been prepared to boostexport of engineering goods. This draft

will be presented in the cabinet meetingfor consideration and approval. "We

have to diversify our exports," he saidadding that Prime Minister's Quality

Awa rd will b e l aunched soon.The federal secretary agreed that interest

rates and cost of manufacturing arehigher in Pakis tan and should be

reduced. He further said the country'sbiggest issue is gas and power shortage.

Efforts are being made and severalpowe r-g ene rat i ng prog ra mme s

launched to overcome this shortfall. Headded that an agreement was signed

with Iran for gas supply and saidcompleting these wil l take time.

Speaking on the occasion, Advisor toChef Minister Sindh for Investment,

Zubair Motiwala said Pakistan could notcompete with its competitors in

international marks due to high cost ofutilities in Pakistan, which is 50 percent

higher than Bangladesh. He termed Oiland Gas Regularity Authority (Ogra)

and National Electric Power RegulatoryAuthority (Nepra) as 'white elephants'.

These organisations did not botherabout the interest of general public, he

added.Former chairman Site Association of

Industry (SAI), Engineer Abdul Jabbatremphasised the need that EDB focuses

all engineering sectors, adding that atpresent, it is more focused on the auto

industry sector. In his address, FormerSVP KCCI, Jawed Bilwani said EDB

must take pain to collect intimation asto why industries are closing down in

the country and adopt measures forrevival of these.

Earlier, Acting President KCCI TalatMahmood briefed the federal secretary

ab out KCCI's working and it smembership.....


Industrial policy likelynext month

Consultation begin to formulateindustrial policy: Soomro

The Engineering Development Board(EDB) and the National ProductivityOrganisation (NPO) have agreed tocooperate in the development andpromotion of engineering industry ofPakistan, particularly in the area ofenergy conservation in steel industries.EDB CEO Aitazaz A Niazi and NPO chiefY ou sa f M K ha w a ja si g n ed aMemorandum of Cooperation (MOC)on Monday. The memorandum willremain in force for an initial period offive years and may be renewed by afurther agreement. According to details,both organisations will cooperate in thedevelopment of pilot projects in the steelre -ro ll ing s ect or a c cordi ng torecommendations and preliminarysurvey conducted by the EDB with theassistance of foreign experts.These will be implemented by energyaudit teams of the NPO which will assessthe quantum of energy saved forfeedback. A joint survey of the entire re-rolling sector will be conducted for

replicating the results of the pilotprojects.The NPO and EDB in consultation withan engineering university will developa ‘thermal model’ to assess the impactof various furnace parameters on energyconsumption and furnace efficiency.It was also agreed to constitute a steeringcommittee for the re-rolling sector forimproving energy efficiency. It wouldconsist of representatives from re-rollingsector, refractory, instrumentation,energy suppliers and subject specialists.Conferences, round table discussions,meetings, seminars, presentations andsurveys will also be held and reports willbe prepared. These will identify focalpoints to facilitate coordination andimplementation of their activities forincreasing cooperation includingappropriate follow-up review andassessment.For this purpose, a joint work plan withdetailed roles, responsibilities, activitiesand milestones will be prepared...

Accord reached for cooperation inenergy conservation

Industrial Sector - Update



The federal government has withdrawnthe exemption from 3.5 percentwithholding tax on the purchase ofagriculture produce vide FBR S.R.O.1161dated 31st December 2010.Through this notification, FBR hasamended SRO. 586 (1) / 91 saying:(a) In the aforesaid notification, in clause(ii) the phrase "a local authority" shallbe replaced by the phrase "a localgovernment" and (b) In the aforesaidnotification, in the beginning of clause(v), the word "person" shall be replacedby the words "growers/producers ofagriculture produce" and after thephrase "or an Association of Persons(AOP) having turnover of Rs 50 millionsor above" the phrase "or an individualhaving turnover of Rs 50 millions orabove" shall be inserted.Talking to media agro-economist and

tax experts apprehended that after thiswaiver of exemption flour, sugar, pulsesand ghee will become costly and theprices of every such product will increasein which agriculture produce is used asa raw material.Criticising the government decision, TaxExpert, Shahid Jami said the policymakers have pushed the public andbusiness class towards tax revolt bymaking decision against the groundrealities such as prevailing economicc runch a nd the food inflation.He recalled that through notificationSRO 586 of 1991 agriculture producewas exempted from withholding tax.Now after elapse of twenty years whenthe inflation is at the peak , theexemption has been withdrawn whereagriculture produce has not beenpurchased directly from the farmers.

Since most of the buying of agricultureproduce is made through commissionagent, therefore exemption available tothe farmers would be meaningless.He said withholding tax at concessionaryrate of 1.5 percent is already levied onrice, cottonseed and edible oil, whichare not considered as agricultureproduce, whereas now such agriculturalproduce which have not undergone anyprocessing withholding tax shall becharged at the higher rate of 3.5 percentand the commission agents would beforced to pay more tax than their earnedcommission. Therefore, withdrawal ofsuch notification is in the interest ofboth government and the public, whichhas been issued untimely and unwiselyand even the Federal Board of Revenue(FBR) has not issued any press release....

Purchase of agri produce

The Federal Board of Revenue (FBR)has allowed initial depreciationallowance at the rate of 50-90 percenton various parts of machinery andequipment.The FBR has proposed amendment tothe Income Tax Rules 2002 through anotification issued on Monday. Thefacility of initial depreciation allowancehas been allowed through amendmentin the companies' returns. The FBR hasgiven legal backing to the in it ialdepreciation allowance on plant andma c h i ne ry t hro ug h pro po se damendment to the return.According to the proposed amendment,90 percent initial depreciation allowancewould be applicable on machinery andequipment qual ifying for 1st yearallowance. However , the annualdepreciation allowance would be 30percent on machinery and equipment

qualifying for 1st year allowance .Zero percent in itial depreciationallowance would be available oncomputer hardware including printer,monitor and allied items that have beenpreviously used in Pakistan. However,the annual depreciation allowance wouldbe 50 percent on computer hardwareincluding printer, monitor and allieditems that have been used previously inPakistan.The proposed notification said that zeropercent initial depreciation allowancewould be available to any plant ormachinery that has been used previouslyin Pakistan. On the other hand, theannual depreciation allowance wouldbe 15 percent on any plant or machineryth at has been used previously inPakistan.Zero percent in itial depreciationallowance would be available to any

plant or machinery in relating to whicha deduction has been allowed underanother section for the entire cost of theasset in the tax year in which the assetis acquired. Whereas , the annualdepreciation allowance would be 15percent on the same kind of plant ormachinery.As per notification, S.R.O.1119 (I)/2010,the draft of certain further amendmentsin the Income Tax Rules, 2002, whichthe Federal Board of Revenue proposesto make in exercise of the powersconferred by sub-section (1) of section237 of Income Tax Ordinance, 2001(XLIX of 2001), is hereby published.The draft has been circulated forinformation of all persons likely to beaffected thereby and notice is herebygiven that the draft will be taken intoconsideration after fifteen days of itspublication in the official Gazette.

Machinery and equipmentFBR allows 50-90pc initial

depreciation Allowance

Govt withdraws exemptionfrom 3.5pc withholding tax

FBR and Tax - Update


British Petroleum (BP) announced onTuesday it had entered into anagreement to sell almost all of itsexploration and production assets inPakistan to United Energy GroupLimited (UEG) for a total cashconsi derati on of $77 5 milli on.UEG - an unlisted company - would payBP a total of $775 million in cash forassets that comprise nine producing andexploration blocks in Sindh and fouroffshore exploration blocks in theArabian Sea.The assets are held by three associates:BP Pakistan Exploration and ProductionInc., BP Pakistan (Badin) Inc. and BPExploration Alpha Ltd.The company expects transaction to becompleted in the first half of 2011,“subject to closing conditions, includingthe receipt of all necessary governmentaland regulatory approvals”.Ear lier in the day, Oil and GasDevel opment Company Limited(OGDCL) notified to the stock exchangesthat the joint bid by Pakistan PetroleumLimited (PPL) and OGDCL was no moreunder consideration.Company secretary at OGDCL Cram AliAziz disclosed to the bourse: “BPInternational Ltd. after considering thefinal offer submitted jointly by PPL andOGDCL has decided not to engage infurther discussions or negotiations withus regarding the proposed sale of BPPakistan upstream interests.” Alreadya 12 per cent stakeholder in BP, OGDCL,the country’s biggest listed firm, hadmade a joint bid with PPL for BP assetson Dec 6 -the last day for submitting thebid documents.The OGDC-PPL duo did not, however,disclose the price they had offered, but

analysts had put the cost of assets figureat around $690 million.The buyers, assuch, seem to be going into acquisitionat considerable premium to theconsensus fair value of BP Pakistanassets.Under the terms of the agreement withUEG, the prospective buyer is requiredto pay BP a cash deposit of $100 millionwith the balance of the proceeds due oncompletion of the sale.The company said in a written statementthat the sale of those interests inPakistan was part of the BP’s plan,announced in July 2010, to divest up to$30 billion of assets by the end of 2011.Market watchers commented that muchof the global asset sale was aimed atraising cash to pay for its Gulf of Mexicooil spill.Before the agreement to sell those assetsin Pa kista n, BP had concludedagreements (globally) in the amount,totaling approximately $21 billion.Bob Dudley, the BP group CEO was

quoted to have said: “Today’s agreementis further evidence of the rapid progressBP has made towards the divestmenttarget we set out last summer. We nowhave agreements in place to secure themajority of our divestment target.” Hefurther said, “We are continuing toidentify further assets that may bestrategically more valuable to othersthan to BP as we complete theprogramme.” The company mentionedthat current net production of BPPakistan was about 35,000 barrels ofoil equivalent a day (boed). Gross oilproduction was around 10,000 bpd,while gas production was approximately200 million standard cubic feet a day.Analysts at AHL Research observed thatthe BP asset buyer-United Energy GroupLimited - is a listed company on themain board of Hong Kong StockExchange.The company is in investment holdingbusiness and principally engaged inupstream oil and natural gas business,including exploration, development,production of crude oil and natural gas.U EG a l s o p ro vi d es pa t e nt e dtechnologies supporting services tooilfields and property investment andmanagement in China.....


BP sells Pakistan assetsto UEG for $775 million

The company expects transaction to becompleted in the first half of 2011,

“subject to closing conditions, including thereceipt of all necessary governmental and

regulatory approvals”

Oil & Gas - Update


Chinese automotive and green energytechnology manufacturer BYD unveilsplans to launch US-ready green-technology vehicles and products at theNorth America International Auto Showfrom 10 to 23 January 2011.BYD wil l unveil their "green citysolutions", their green electric vehicleseries, and a portfolio of eco-friendlyproducts which will help cities electrifyall public transportation and reduce airpollution and carbon emissions.The company will showcase the pure-electric vehicle- the e6 Premier a 2012year model and the new dual modeelectric SUV- the S6DM at the event.Theworld's first mass-produced F3DMsedan low-carbon version and the coredrive technology of the pure-electric buswill also be showcased.BYD e6 Premier is a 5-seat crossoverwhich has a dynamic and sporty exteriordesign and is equipped with BYD Iron-phosphate "FE" battery and has anexpected range of 186.4 miles with aprojected top speed of 87 mph which isideal for daily commuters and in-towndriving. The vehicle can be fully chargedin forty minutes on the 100kW fastcharging cabinet and six hours toovernight-charge on the 10kW standard

charging pole.The core technology of the pure-electric12-meter-long K9 e-Bus is equipped within-wheel electr ic dr ive and thee l e c t ro n i c a l l y - c o n t ro l l e d a i rsuspension.It also features ample spaceand a low-floor for easy passengerloading and unloading and is able to run155 miles on a single charge. The BYDS6DM SUV is the world 's fi rstindependent 4WD dual-mode electricSUV which can travel over 38 miles onelectric power and over 310 milesextended range when engaging theenvironmentally friendly 2.0L gasolineengine.This SUV is equipped with a 10kWelectric motor (M1) paired with a smooth6-speed dual-clutch transmissionpropelling the front wheels while apowerful 75kW electric motor (M2)powers the rear wheels.The F3DM low-carbon version alsofeatures the BYD Fe battery togetherwith a BYD 371QA 1.0-liter gasolineengine. It is equipped with a solar panelsunroof to parallel charge the Fe batteryand can travel over 38 miles and itsextended range HEV mode allows thecar to achieve another 313 miles with amaximum speed of about 93.2 mph.....

BYD to launch green-technology vehicles,products at North AmericaInternational Auto Show


Electric Tata Vista to go on sale in Europe in 2011

Tata Motors is now very close tocompleting work on the lithium-ionbattery-powered version of the IndicaVista, which will be manufactured in theUK and which will go on sale in Europeearly next year.The Vista EV, Tata Motors’ f irstproduction-spec electric car, has beendeveloped by the company’s UKsubsidiary, Tata Motors European

Technical Centre (TMETC) and will gointo production at Tata’s West Midlandsfacility in the UK, later this month. Thecar, a fully electric four-seater hatchbackthat has a range of 175km and a topspeed of 114km/h, will be offered inselect European markets in 2011 andwill be launched in various othermarkets (including, perhaps, India!) in2012.

International Automotive - Sector

Indus Motor announced that they wouldreduce the prices of Daihatsu Cuore andToyota Corolla sedans effectiveDecember 29, 2010. The reductionranges between Rs 15,000 to Rs 40,000per vehicle.The company spokesperson added thatover last several months IMC has mademajor capital investments amountingRs 2 billion in the Phase 2 of Press Shopproject and also in the engine assemblyand testing facilities. These projects arenow reaching implementation and startup stage that enables the company topass the b enefits of enhanc edlocalisation and assembly to our valuedcustomers, accruing from these projects.The price reduction will be valid on allorders, received after December 29,2010. The new selling price of thepopular Corolla Xli will be Rs 1,337,000down from Rs 1,354,000 and the newprice of Gli will be Rs 1,462,000 fromthe previous price of Rs 1,479,000. TheAltis MT (including Sun roof variant)price will be reduced by Rs 35,000, AltisAT (including Sun roof variant) will bereduced by Rs 40,000. Daihatsu Cuoreprices will be reduced by Rs 15,000across the range of vehicles.It may be recalled that the auto industryand the GOP have been in dialogue overcar prices for some time. Weakening ofthe economic environment in the postfloods scenario and strengthening ofYen adversely affected the businessprofitability for the company to considerany price reduction earlier. IMC isgrateful to the Ministry of Industriesand the Engineering DevelopmentBoard for their support which hasenabled IMC to pass the benefit to thecustomers.-PR

Indus Motorsreduces prices of

Cuore, ToyotaCorolla sedans


A major revenue generation measurecould include levying withholding taxon all kinds of procurement made bythe government from the farm sector.Analysts told media that withholdingtax is a major source of revenuegeneration on the direct tax side. Totalshare of withholding tax in grosscollection rose to 66 percent in the firstquarter of 2010-11 from 65 percent inthe first quarter of 2009-10.The government is the single largestprocurer of farm outputs. Therefore,imposition of withholding tax would notonly generate revenue but would alsohelp in documentation of the untaxedsectors. When the withholding tax iswithheld the payee would be in aposition to obtain adjustment, and liableto file his/her due income tax return.The information pertaining to thewithholding tax deduction on thepurchase of farm outputs would help indetermining the actual turnover andsales of farm sector.The government last year purchasedabout 7.5 million tons of wheat at Rs950 per kg. Wheat is the only farmproduct for which the government fixesthe 'support' price, while it announces'intervention' prices for other majorcrops, like cotton, sugarcane, paddy andmaize.According to sources, the farm sector iscontributing nothing to the nationalexchequer, as far as federal taxes areconcerned. The documentation ofpotential persons, engaged in agritrading and farming, is possible throughimposition of withholding tax onprocurement made by the governmentfrom the farm sector. The FBR has

proposed to impose 'reformed generalsales tax' (RGST) on agri trading, but itis yet to be implemented.Analysts said that at present withholdingtax is applicable on contracts executed,supply of goods and services to thefederal government under section 153of the Income Tax Ordinance 2001.Under section 153(1)(a) of the Ordinance2001, payment for goods and services(supply) are subjected to withholdingtax at the rate of 1.5 percent and 3.5percent respectively. This source ofwithholding tax has huge potential, butthe figures of actual collection of tax anddue on the development expenditure ofthe government and deductions madeby private sector need reconciliation.Therefore, a macro analysis of activitiesand monitoring of all withholding agentsis necessary. The FBR has to examinethe deduction for contracts executed,supplies made and services rendered.The Board could examine the totalpayments on account of purchases,services, expenses and amount of totaldeductions during the relevant period.Similarly, a comprehensive analysis ofgovernment development projectsshould be conducted. All major

organisations in public sector need tofile annual contract awards andwithholding reports, stating the taxdeducted from payments to primecontractors of public funded projects.Besides, the contracts are sub-let veryfrequently in Pakistan, but deduction isrestricted to the prescribed persons only.In the cases of sub-letting of contracts,the terms and condition and mechanismof tax deduction from the payments tosub-contractor should be examined, taxexperts said.Sources said that the board had declaredgovernment departments/autonomousbodies as withholding agents fordeducting 3 percent of the total 17percent payable sales tax involved intransaction of supplies made to thesedepartments. It is primarily anenforcement measure for complianceby both the withholding agents and thes uppl i er s t o t he g ov e rnme n tdepartments. However, it has beenobserved that some governmentdepartments do not provide detailsabout persons from whom they havewithheld sales tax under the Sales TaxSpecial Procedure (Withholding) Rules,2007. Resultantly, the FBR could notmaintain the data of suppliers, etc, ofgovernment departments, which isnecessary for obtaining accurateinformation about the businesstransactions made by them.In this case, some departments are notproviding information of their suppliersfrom whom sales tax has been withheldon supplies made to the autonomousorg ani sa ti ons a nd g ov ern men tdepartments/organisations, tax expertsadded....


WHT on govt purchasesmay be major source to

generate revenue

Farm Sector - Update

According to sources, the farm sectoris contributing nothing

to the national exchequer, as far as federaltaxes are concerned.



Energy sector issues and developmentcontinue to severely constrain Pakistan’seconomy in 2009-2010. Against thebackdrop of a sharp increase in theinternational price of oil in 2009, whichput enormous upward pressure on thecost structure in the power generationand transport sector, in particular, largedomestic supply shortages of electricityand gas occurred. Lower accumulationof water reserves in dams compoundedthe severity. The cumulative effect ofthe energy crisis on the economy isestimated at 2 per cent of GDP during2009-2010 alone.The Government of Pakistan hasresolved to revitalize national actiontowards achieving greater energyefficiency in the country to help meetthe challenges of rapid demand growth,improving economic competitiveness,ensuring equitable and affordable energyaccess across all consumer categories.Transport System has always played animportant role in the development ofeconomics of the country. There cannotbe two views on the fact that efficient,reliable, affordable movement of People& Cargo is basic & fundamental toeconomic prosperity. Public Transportprovides people with mobility, accessfor employment, Medical care andrecreational opportunities to the masses.Mass transit provides benefits to thosewho choose to ride & also to those whohave no other choice. Public transportalso helps the people to expand businessopportunities, reduce sprawl and createsense of community. It also enhancessafety & security in society.

Pakistan’s PrimaryCommercial EnergySupply SituationGovernment of Pakistan is working ona program to phase out Diesel buses &wagons in major cities of Pakistan. Theprogram combines economic as well asenvironmental considerations. Theprogram will reduce the import bill ofDiesel Oil & on other hand this willimprove air quality. During financialyear 2008-09, primary commercialenergy supplies witnessed a decrease by0.6% to 62.6 million tonnes of oilequivalent (MTOE) from 62.9 MTOE in2007-08. Increase in the supplies camefrom oil (0.9 MTOE), natural gas (0.4MTOE) and imported electricity (0.01MTOE). Supplies from coal, nuclear,hydro and LPG showed decrease ascompare to the last year. The share ofnatural gas in primary energy suppliesduring 2008-09 was 48.3% followed byoil 32.1%, hydro electricity 10.6%, coal7.6%, nuclear electricity 0.6%, LPG 0.6%and imported electricity 0.1%. Oilconsumption decreased by 1% during2008-09 over the preceding year. Thedecline in consumption was due to

agriculture (36%),domes ti c (19% ),industry (10%) andtransport (6%) whilethe increase was ingovernment sector(18%) followed bypower (7%). Product-wise, Furnace Oil(FO) consumptionincreased by 6% and gasoline by 5%,while High Speed Diesel (HSD)consumption was decreased 8% overthe last year. Imports of petroleumproducts increased by 10.5% ascompared to the previous year. FOimports increased by 19% while HSDimports decreased by 3% during 2008-09. Oil consumption decreased by 1%during 2008-09 over the preceding year. The decline in consumption was due toagriculture (36%), domestic (19%),industry (10%) and transport (6%) whilethe increase was in government sector(18%) followed by power (7%). Product-wise, FO consumption increased by 6%and gasoline by 5%, while HSDconsumption was decreased 8% overthe last year.

Energy Demand andEmission ForecastsPakistan is presently not a majorcontributor to global warming and isnot likely to become one in theforeseeable future either. Following aresome serious concerns;Beginning from a low base, theemissions reach a figure of 475 milliontons of CO2 in the year 2020. This, inrelative is low, both in absolute and in

Environmental SustainableTransport Sector

Development - Pakistan

Environment and Transport

Road Transport is one of the major areaswhere energy efficiency measures can be

applied very effectively. An increasing amountof oil is consumed by the transport sector.

by Asif Masood

Asif MasoodChief Technical officer

ENERCON / ECF



Energy sector issues and developmentcontinue to severely constrain Pakistan’seconomy in 2009-2010. Against thebackdrop of a sharp increase in theinternational price of oil in 2009, whichput enormous upward pressure on thecost structure in the power generationand transport sector, in particular, largedomestic supply shortages of electricityand gas occurred. Lower accumulationof water reserves in dams compoundedthe severity. The cumulative effect ofthe energy crisis on the economy isestimated at 2 per cent of GDP during2009-2010 alone.The Government of Pakis tan hasresolved to revitalize national actiontowards achieving greater energyefficiency in the country to help meetthe challenges of rapid demand growth,improving economic competitiveness,ensuring equitable and affordable energyaccess across all consumer categories.Transport System has always played animportant role in the development ofeconomics of the country. There cannotbe two views on the fact that efficient,reliable, affordable movement of People& Cargo is basic & fundamental toeconomic prosperity. Public Transportprovides people with mobility, accessfor employment, Medical care andrecreational opportunities to the masses.Mass transit provides benefits to thosewho choose to ride & also to those whohave no other choice. Public transportalso helps the people to expand businessopportunities, reduce sprawl and createsense of community. It also enhancessafety & security in society.

Pakistan’s PrimaryCommercial EnergySupply SituationGovernment of Pakistan is working ona program to phase out Diesel buses &wagons in major cities of Pakistan. Theprogram combines economic as well asenvironmental considerations. Theprogram will reduce the import bill ofDiesel Oil & on other hand this willimprove air quality. During financialyear 2008-09, primary commercial

energy supplies witnessed a decrease by0.6% to 62.6 million tonnes of oilequivalent (MTOE) from 62.9 MTOE in2007-08. Increase in the supplies camefrom oil (0.9 MTOE), natural gas (0.4MTOE) and imported electricity (0.01MTOE). Supplies from coal, nuclear,hydro and LPG showed decrease ascompare to the last year. The share ofnatural gas in primary energy suppliesduring 2008-09 was 48.3% followed byoil 32.1%, hydro electricity 10.6%, coal7.6%, nuclear electricity 0.6%, LPG 0.6%and imported electricity 0.1%. Oilconsumption decreased by 1% during2008-09 over the preceding year. Thedecline in consumption was due toagriculture (36%), domestic (19%),industry (10%) and transport (6%) whilethe increase was in government sector(18%) followed by power (7%). Product-wise, Furnace Oil (FO) consumptionincreased by 6% and gasoline by 5%,while High Speed Diesel (HSD)consumption was decreased 8% overthe last year. Imports of petroleumproducts increased by 10.5% ascompared to the previous year. FOimports increased by 19% while HSDimports decreased by 3% during 2008-09. Oil consumption decreased by 1%during 2008-09 over the preceding year. The decline in consumption was due toagriculture (36%), domestic (19%),industry (10%) and transport (6%) whilethe increase was in government sector(18%) followed by power (7%). Product-wise, FO consumption increased by 6%and gasoline by 5%, while HSDconsumption was decreased 8% overthe last year.

Energy Demand andEmission ForecastsPakistan is presently not a majorcontributor to global warming and isnot likely to become one in theforeseeable future either. Following aresome serious concerns;Beginning from a low base, theemissions reach a figure of 475 milliontons of CO2 in the year 2020. This, inrelative is low, both in absolute and in

per capita terms. However, the morealarming implications from a nationaland global perspective are demonstratedby the exponential growth of emissionsover this period. This trend is based ona number of developments:

• Depleting natural gasreserves have begun toinduce a switch to oil basedproducts, particularly inprivate power generation• Large, high-sulphur, coaldeposits in the Thar desertare likely to be tapped as oilimports become difficult tosustain• There will be considerableexpansion of rural energyinfrastructure• A ppl iance use wil lintensify• Selective subsidies forhighly emitting fuels, suchas diesel, will continue tor e m a i n p o l i t i c a l l yintractableVisuals replicate the situation incountries, which Pakistan seeks toimita te, where development isaccompanied by high levels of pollution.The combined global environmentalconsequences are likely to be disastrousand, as such, Pakistan has an obligationto adopt pre-emptive measures to loweremissions.

Government Strategieson EnvironmentSustainable Transport(EST)The transport sector is emerging as thefastest growing source of global GHGsemissions and accounts for 23% ofenergy-related CO2 emissions in theworld. The concept of EnvironmentSustainable Transport (EST) is centeredon the transportation system andtransportation activity that meets social,

Visuals replicate the situation in countries, which Pakistanseeks to imitate, where development is accompanied by high

levels of pollution. The combined global environmentalconsequences are likely to be disastrous.




Energy sector issues and developmentcontinue to severely constrain Pakistan’seconomy in 2009-2010. Against thebackdrop of a sharp increase in theinternational price of oil in 2009, whichput enormous upward pressure on thecost structure in the power generationand transport sector, in particular, largedomestic supply shortages of electricityand gas occurred. Lower accumulationof water reserves in dams compoundedthe severity. The cumulative effect ofthe energy crisis on the economy isestimated at 2 per cent of GDP during2009-2010 alone.The Government of Pakistan hasresolved to revitalize national actiontowards achieving greater energyefficiency in the country to help meetthe challenges of rapid demand growth,improving economic competitiveness,ensuring equitable and affordable energyaccess across all consumer categories.Transport System has always played animportant role in the development ofeconomics of the country. There cannotbe two views on the fact that efficient,reliable, affordable movement of People& Cargo is basic & fundamental toeconomic prosperity. Public Transportprovides people with mobility, accessfor employment, Medical care andrecreational opportunities to the masses.Mass transit provides benefits to thosewho choose to ride & also to those whohave no other choice. Public transportalso helps the people to expand businessopportunities, reduce sprawl and createsense of community. It also enhances

safety & security in society.

Pakistan’s PrimaryCommercial EnergySupply SituationGovernment of Pakistan is working ona program to phase out Diesel buses &wagons in major cities of Pakistan. Theprogram combines economic as well asenvironmental considerations. Theprogram will reduce the import bill ofDiesel Oil & on other hand this willimprove air quality. During financialyear 2008-09, primary commercialenergy supplies witnessed a decrease by0.6% to 62.6 million tonnes of oilequivalent (MTOE) from 62.9 MTOE in2007-08. Increase in the supplies camefrom oil (0.9 MTOE), natural gas (0.4MTOE) and imported electricity (0.01MTOE). Supplies from coal, nuclear,hydro and LPG showed decrease ascompare to the last year. The share ofnatural gas in primary energy suppliesduring 2008-09 was 48.3% followed byoil 32.1%, hydro electricity 10.6%, coal7.6%, nuclear electricity 0.6%, LPG 0.6%and imported electricity 0.1%. Oilconsumption decreased by 1% during2008-09 over the preceding year. Thedecline in consumption was due toagriculture (36%), domestic (19%),industry (10%) and transport (6%) whilethe increase was in government sector(18%) followed by power (7%). Product-wise, Furnace Oil (FO) consumptionincreased by 6% and gasoline by 5%,while High Speed Diesel (HSD)consumption was decreased 8% over

the last year. Imports of petroleumproducts increased by 10.5% ascompared to the previous year. FOimports increased by 19% while HSDimports decreased by 3% during 2008-09. Oil consumption decreased by 1%during 2008-09 over the preceding year. The decline in consumption was due toagriculture (36%), domestic (19%),industry (10%) and transport (6%) whilethe increase was in government sector(18%) followed by power (7%). Product-wise, FO consumption increased by 6%and gasoline by 5%, while HSDconsumption was decreased 8% overthe last year.

Energy Demand andEmission ForecastsPakistan is presently not a majorcontributor to global warming and isnot likely to become one in theforeseeable future either. Following aresome serious concerns;Beginning from a low base, th eemissions reach a figure of 475 milliontons of CO2 in the year 2020. This, inrelative is low, both in absolute and inper capita terms. However, the morealarming implications from a nationaland global perspective are demonstratedby the exponential growth of emissionsover this period. This trend is based ona number of developments:

• Depleting natural gasreserves have begun toinduce a switch to oil basedproducts, particularly in

* @ 3412 Btu/kWh. Includes railway traction.** Compressed Natural Gas (CNG).Source: Pakistan Energy Yearbook 2009



The overall market share of PetroleumMarketing Business (PMB) of BycoPetroleum Pakistan Ltd (BPPL) inpetrol, diesel and furnace oil segmentshas jumped from 0.7 percent inJuly-November 2009 to 2.7 percent inthe same period in 2010.This was stated by the president PMBof BPPL, Kalim A.Siddiquiwhile talking to reporters includingAutomark magazine, at an informalinteraction last month."This is a robust growth and we havetaken over some market shareof other oil marketing companies(OMCs) with the help of ouraggressive and innovative marketingstrategy", he said.Siddiqui pointed out that his companyis 7th in size and 6th in market shareamong OMCs in the country.He said the number of retail outlets havebeen increased to 163 all over thecountry and some 50 to 100 more willbe added to the existing network by June2011.He pointed out that 60 of them havebeen completely re-b ra nded t onew design and colour scheme with allthe ambiance. Most of them arein Karachi, Lahore and Islamabad, he

added.He maintained that PMB is notcompromising on quality. "We areensuring that the customers must getquality products and full quantity atByco outlets. We will launch three fullyloaded mobile testing laboratories tocheq ue quality and quant ity ofpetroleum products at our outlets", headded.Responding to a question about thesecond refinery, he said that 80 percentof the work has been completed of thesecond refinery with 120,000 barrelsper day capacity coming up in Hub at acost of $ 500 million.However, we are currently focussing onour single point mooring which willenable Byco to directly receive 150,000to 250,000 metric ton of large tankersto get oil. This will cut the transportationcost by at least $ 2 per barrel, he noted.Similarly, our isomerizing plant is alsoready to covert naphtha in to highquality motor gasoline and hi-octane.We are also producing and marketingliquefied petroleum gas and our LPGcylinders are in sold in the market,Kaleem Siddiqui.Replying to a question, he said that talksare continued with Asia Pipeline Ltd

(APL) and PSO to lay a 500 meterpipeline to supply oil to HUBCO insteadof 85 kilometers long pipeline of APL.To another question, Siddiqui said thatthe issue of circular debt can be resolvedby bringing in efficiency in power sector,cutting line losses and raising the shareof nuclear, hydel and coal in powergeneration.....


Byco's market sharejumps to 2.7 percent:

said SiddiquiByco Petroleum has urged the government toresolve the circular debt crisis and increase oilrefinery margins. Both these steps will help

reduce the country’s reliance onrefined oil imports.

He said the number of retail outlets have been increasedto 163 all over the country and some 50 to 100 more will

be added to the existing network by June 2011.

Oil & Gas - Point of view


CHEVROLETModel Price

Rs. 569,000CHEVROLET JOY CNG

Rs. 539,000CHEVROLET JOY Petrol

Price updated January 2011

MEHRAN VX 800ccMEHRAN VX (CNG) 800cc

MEHRAN VXR (CNG)

MEHRAN VXR

ALTO VX 1000cc

ALTO VX (CNG)

ALTO VXRALTO VXR (CNG)

Rs. 453,000Rs. 499,000Rs. 505,000

Rs. 549,000

Discontinued

Discontinued

Rs. 656,000Rs. 705,000

SUZUKIModel Price

TOYOTA COROLLAModel Price

ALTIS 1.8 VVTi M/T

2.OD SALOON M/T

GLI 1.3 VVT-i Rs. 1,462,000

XLi 1.3 VVT-i Rs. 1,337,000

2.OD SAL SUNROOF Rs. 1,824,000

2.OD Std. 2000cc Rs. 1,385,000Rs. 1,734,000

Rs. 1,705,000

ALTIS 1.8 VVTi A/T Rs. 1,790,000

LIANA 1.3L RXI MT PETROL

CULTUS Efi VXRICULTUS Efi VXRI (CNG)

CULTUS Efi VXLI

CULTUS Efi VXLI (CNG)

LIANA 1.3L RXI MT (CNG)

LIANA 1.3L LXI MT PETROL

LIANA 1.6L Eminent ATRAVI PICKUP ST308R VX

RAVI PICKUP ST308R VX CNG

BOLAN VAN VX PetrolBOLAN VAN VX CNG

SUZUKI VAN CARGO

BOLAN VAN VTR PETROLBOLAN VAN VTR CNG

LIANA 1.3L LXI (CNG)

Rs. 850,000

Rs. 891,000

DiscontinuedDiscontinued

Rs. 1,149,000Rs. 1,219,000

Rs. 1,140,000

Rs. 1,241,000

Rs. 532,000Rs. 584,000Rs. 592,000

Rs. 645,000Rs. 507,000

Rs. 1,210,000

Rs. 473,000

Rs. 524,000

SUZUKI SWIFT 1.3L PETROL Rs. 1058,000

NISSAN CARSModel Price

Sunny Ex-Saloon 1.6L M/T Rs. 1,225,000Sunny Ex-Saloon 1.6L CNG Rs. 1,305,000

S. Super Saloon 1.6L M/T Rs. 1,370,000

S. Super Saloon 1.6L CNG Rs. 1,450,000

DAIHATSUModel Price

Rs. 7,30,000

Rs. 7,15,000

CX ECO (CNG)

CX AUTOMATIC

Rs. 6,85,000CUORE CX

NISSANS. Super Saloon 1.6L A/TS. S. Saloon 1.6L A/T CNG

Rs. 1,470,000Rs. 1,550,000

NISSAN DIESEL TRUCKSDiesel Truck PKB 211Diesel Truck PKD 411HDiesel Truck PKD 411EDiesel Truck PKD CD 411Diesel Prime Mover CWM 454

Rs. 3,000,000Rs. 4,150,000Rs. 4,260,000Rs. 4,600,000Rs. 5,500,000

MASTERModel Price

Master Highland M-260 (1,5T) Rs. 625,000Master Forland Super M-330 (3T) Rs. 699,000

Master Econg M-390 (3.5T) Rs. 930,000Master Grande M-410 (4.5T)

Master Rocket Faw (7.5T)Rs. 11,30,000Rs. 12,60,000

Master Feng EQ 1061 Strip Chassis Rs. 832,000

Master Feng EQ 1032 Strip Chassis Rs. 832,000

CIVIC VTI Pt Oriel

HYUNDAI

Model PriceACCORD Rs. 5,866,000

CITY I-VETC AT Rs. 1,454,000CITY I-VETC MT Rs. 1,324,000

CIVIC VTI Mt

CIVIC VTI Mt Oriel

Rs. 1,659,000

Rs. 1,834,000

ACCORD CR-V Rs. 5,316,000

CIVIC VTI Pt Rs. 1,779,000

Rs. 1,909,000

HONDA

Model Price

CHERY QQ

CHERY QQ Petrol Rs. 588,000CHERY QQ CNG Rs. 628,000

LAND ROVERModel Price

Rs. 2,269,431Rs. 2,545,000Rs. 2,150,260

DEFENDER

(90 S/WJEEP STD)(110 S/W A/C)(90 Soft Top)

Car / Light Vehicle Price ListCar / Light Vehicle Price List


January-2011

www.automark.pk

[email protected]



Indus Motor makes careers with Toyota Technical Education Program

6th T-Tep Career Day Eventat St. Patrick’s Institute of

Science & Technology

Glimpses of the eventAutomotive Sector - Event



The OEM enter in Pakistanimarket with the FE light-duty trucks with grossvehicle weight (GVW) of 6.5to 7.2 tonnes, and FV super-great heavy-duty primemovers with GVW of 28tonnes. Mitsubishi Fuso willimport these trucks fromJapan as completelyknocked-down (CKD) kits.

On the day of 20th December 2010 and

at the venue of Expo Centre, the city of

Karachi becoame witness to the event

of the future. Yes! The launching of

locally assembled Fuso commercial

vehicles by Master Motor Corporation

Limited, the authorized assembler and

distributor of Mitsubishi Fuso in

Pakistan. Mitsubishi Fuso is a top

Japanese brand as Mitsubishi Fuso

Cater Truck is a global market leader in

light commercial vehicles category while

Mitsubishi Fuso FV Prime Mover is a

recognized global performer.

The who’s who of the industry

c o m p r i s i n g p ro m i n e n t a n d

distinguished personalit ies from all

sections

Of auto and auto related sector, financial

institutions, military and paramilitary

forces, corporate and public, private and

private organizations were in full

attendance at this most anticipated event

which was graced by the Chief Guest

none other the Federal Minister of

Industries and Production, Mir Hazar

Khan Bij ara ni who rendered a

heartwarming speech on the occasion.

The Guest of Honour and Vice president

Sales and Services International,

Mitsubishi Fuso Trucks and Bus

Corporation, Dr. Kai-Uwe Seidenfuss

gave an extensive presentation of his

company.

Also honouring the event were Mr. T.

Ichida, Assistant General Manager,

Sumitomo Corporation Tokyo, Dr.

Akram Sheikh and Mr. Aitazaz Niazi,

CEO Engineering Development Board.

Mr. Nadeem Malik, Manager Director

– Master Motor Corporation Limited,

enlightened the audience with the

current state of the automobile industry

and apprised listeners of his Company’s

achievements,

Goals and future aspirations to

everyone’s applause.

There were many highlights of this grand

event starting with the unveiling of the

Fuso Canter Truck and Fuso FV Prime

Mover amidst a glittering light and laser

show. Technological prowess was on full

display with the Fuso Canter Truck

appearing agile, athletic, adaptable,

stylish and efficient while the Fuso FV

Prime Mover Looked robust, powerful,

highly enduring, roomy and safe.

Following this the guests were dazzled

Master Motors LaunchedMitsubishi Fuso in Pakistan

MMC entered into an agreement withMitsubishi Fuso Truck and Bus

Corporation (MFTBC), Japan for theassembling, manufacturing and

marketing of Trucks and Prime Moversin Pakistan.

Automotive - Commercial Vehicles




by a spectacular aerial acrobatics show

performed by a famous group ofacrobats flown in especially from Dubai.The event concluded with the icing onthe cake being the performance of fusionof eastern and western composition ofDhol and drums by the very popular popgroup Overload and Pappu Saeen.All in all an event that could easily betermed as the defining event of thetechnological advancement in the 21stcentury and not to have been missed aswe don’t know when we would witnesssuch a spectacular show every again.

Today, MasterEnterprises alone has amarket share of morethan 60% and enjoysthe trust of millions ofcustomers.Products such as MoltyFoam Mattress,Master Office Chairs, Master CelesteSprings Mattress, Master ThermoShield(Spray-Polyurethane roof insulation),MoltyFiber Pillow and Comforters offera perfect peace of mind to its users.Their brand 'Molty' has become ahousehold name all across the country.Master Motor Corporation came intobeing and became a flagship unit of

Master Group, MMC has entered theautomobile market with long-term plansand huge task of assembling andmanufactur ing excellent qual ity,competitively pr iced vehicles inPakistan.Master Motor Corporation came intobeing and became a flagship unit ofMaster Group, MMC has entered theautomobile market with long-term plansand huge task of assembling andmanufactur ing excellent qual ity,competitively pr iced vehicles inPakistan.MMC has the most state of the arttechnology at its newly built plant at BinQasim, Karachi and has introduced 1.5ton, 3 ton, 3.5 ton, 4.5 ton and 6.5 tonlight duty trucks. With innovativemarketing approach and a commitmentto deliver quality, Masters Trucks havebecome the leading brand among itscompetitors by achieving 25% marketshare in 3 ton category and 50 % marketshare in 3.5 ton and 4.5 ton category infront of already established Japaneseand Korean companies.It also promises a comprehensive After-Sales-Service back up through 3SD ea l ers N e t wor k n a t i on wi de .Master believes in the future oftechnology and will continue to expandindustrially. We believe in striving

constantly to better ourselves. Our teamat Master is driven by the quest forperfection and is determined to providehigh quality products to the customers.

Objectives of MMC- Build high quality and affordablevehicles, to meet the demand of thePakistani customers.- Provide high quality of after salesservices including immediate availabilityof Spare Parts.- Efficient dealer network to providebest customer service and support allover Pakistan.- Achieve the deletion level as perGovernment’s policies defining deletionprogram.-Adopt progressive Advertisement and- Sales promotional activities througheffective product Ads, Sales Campaigns,and Events.- Explore potential markets in theneighboring countries for the export ofvehicles produced by MMC- Realize high resale value for thevehicles produced by MMC.

Awards & CertificationMa ster Motor Corporation ha sISO9001:2000 and currently in theprocess of acquiring TS 16949:2002certification.

Automotive - Commercial Vehicles


With the growing demands of the worldof today for sustainability of energy &Environmental friendliness, theAutomobile industry finds itself at achallenging curve in its history that itselfexpands for over a mil lennium ofproduction.Due to the advancements in technology& common awareness of global warming& depletion in ozone layer, drasticmeasures are either taken or plannedby authorities globally. Automobileindustry faces utmost concerns due tothe immense pollution hazards, theproduct of the industry causes.Similarly, the reserves of mineral oil aredeter iorating so replacement oftechnology of propelling an automobileis a major concern.As far as Asia is concerned most of thecountr ies in this continent aredeveloping countries so, very littlee mph a s i s i s g i v e n t o t h e s e

characteristics. However in Pakistan,eyeing the future; recently an initiativehas been taken by Karakoram motorsto revolutionize the means of urbantransport.Karakoram Motors is a well knownname in local Automobile industry, theyare assembler and manufacturers ofChangan utility vehicles and are soledistributors for LIFAN & GONOWproducts. In two wheelers Raftar 50ccmotorbike was an indigenous conceptof Karakoram motors; this motorbikewas known for its supreme fueleconomy.Having established its authority in thelocal industry, Karakoram Motors nowintend to introduce an electric car, thefirst of its kind in Pakistan Automotivesector. The technology of this electriccar is based on Dynasty Electric CarCompany of Canada.

Dynasty was designed by a well knowninternational automobile designer PaulDutchman who had designed severalmodels for General Motors, Daewoo &Benz. The company was established inthe year 2003 but due to certain reasonscould not survive. Karakoram Motorsbought all the plant equipment andmachines including the proprietaryrights . In 2007 Karakoram Motorsshifted all the manufacturing facilitiesof Dynasty car from Canada to theirassembly plant at Karachi , and erectedand installed the facilities at their plant.Additionally the company developed inhouse facilities for chassis frameassembly, body panels and sheet metalcomponents.An electric car is a car powered by anelectric motor rather than a gasolineengine. Under the hood, there are a lotof differences between gasoline andelectric cars:

• The gasoline engine isreplaced by an electricmotor.• The electric motor getsits power from a controller.• The controller gets itspower from an array ofrechargeable batteries.A gasoline engine, with its fuel lines,exhaust pipes, coolant hoses and intakemanifold, tends to look like a plumbingproject. An electric car is definitely awiring project. There is no Radiator, nowater and fuel hoses, no fuel tank, nomuffler, no catalytic convertor, no fueland oil filters etc, etc. So there is noquestion about the emission problem

Dynasty Electric CarPakistan’s first peek into a greener future


by I.H.T. FarroquiAutomotive Sector - Article


Karakoram Motors is a wellknown name in local Automobileindustry, they are assembler andmanufacturer s of Changan util it yvehicles and are sole dis tr ibutorsfor LIFAN & GONOW products.In two wheelers Raftar 50cc motorbikewas an indigenous concept of Karakorammotors; this motorbike was known for itssupreme fuel economy

As it has been discussed earlier, the running& maintenance cost of an electric vehicleare significantly low.



and the vehicle is called as ZeroEmission Vehicle.Dynasty introduces this vehicle as asmart hatchback & makes it available in5 di ff eren t v a r ia nt s . Gene ra lconfiguration is 4 door,4 seaterpassenger car & 2 door 2 seater utilityvehicle. The vehicle is best suited forindustrial parks, airports, universities& parks etc.The car features an High g radeAluminum chassis along with a fiberglass body which makes the structurevery light, however safety does not getscompromised in the process. The carmeets NHTSA & DOT (InternationalAgencies of Automobile safety) safetyrequirements. As an electric automobileit also features zero emissions & no noisepollution.

The standard variant that hasbeen introduced itself weighsjust 400 kg & can seat 4passengers to carry a maximumpayload o f 700-750 kg.Maximum speed of the vehicleis around 45-60 km/h & on afull charge the vehicle gives arange of 50 km. The batteriesthat power the standard variantare Deep Cycle gel batteries. Intotal 6 batteries, each giving apotential difference of 12V isutilized, giving out 72V & 8.8KW of power in total. The DeepCycle Gel batteries can berecharged completely within 6-8 hours & is designed to give1000 cycles of complete charge& discharge. This constitutes to2.7 years of use of the batteryif it gets complete charge &discharge on daily basis, beforeits life ends & replacement isrequired.As it has been discussed earlier, therunning & maintenance cost of anelectric vehicle are significantly low. Thedynasty electric automobile costs Rs1.76/km as compared to 6 km/l & 3.87

km/l of an ideal 1.0L interna lcombustion engine vehicle, running onPetrol & CNG respectively. Thisconstitutes to an annual budget of Rs29,200 of Electric car to Rs 98,550 &63,510 of Petrol & CNG vehiclesrespectively.The electric car introduced by dynastyhas been designed to supply power togrid in case of power failure. In this waycar works out as an instant means ofpower supply as a backup source.Another feature of the vehicle is theregenerative braking system. It ensuresthat the braking energy losses arerecovered & are utilized to charge thebatteries instantaneously.As far as future plans are concernedKarakoram motors intend to offer thecar with Li-ion batteries.These batteries not only increase therange of the vehicle drastically (150 km)but also reduce the charging time toalmost half of Deep Cycle gel batteries,giving very similar cycle time in theprocess.However the Li-ion batteries cost a lotmore than the Deep Cycle gel batteries;so it is a majordis advantage. Future plans also includeon board charging facilities via a gasgenerator or solar panels to enhance therange of the vehicle.

One of the majordevelopments credited toKarakoram motors is the

localization of various partsthat include in house

production capabilities offiber glass doors, roof, side

panels etc, while seats,wiring harness, trim parts,

rims etc are made availablelocally utilizing various

vendors.However some complex parts thatinclude electric motor & controller,battery, chassis frame material etc haveto be imported as locally the technologyneeded for the production of thesecomponents does not exist.Coming back to the scope of the electriccar it is worth mentioning thatinternational government like fromEuropean countries, America & otherswelcome the concept of introduction ofelectric cars in their countries, In factmany governments wave off import,custom, road, vehicle, registration taxesetc in order to promote customersinterest in this green technology.Dynasty electric car has a wide scope inthe international market as well,enquiries from UK, Japan, Poland,North America & Singapore have beenreceived.In accordance to an international surveyby http://ecomodder.com/blog/10-electric-cars-buy-today/Dynasty isranked 3rd amongst the best electriccars an individual can purchase today,globally.As far as local availability is concernedKarakoram motors intends to introducethis car as soon as possible in the localmarket. The cost of the car has beenestimated to be around Rs 800,000 PakRs. for a basic model, subject to allowthe import of electric components atzero rate of custom duty , this wil lfacilitate the company to compete morewith the international car manufacturerswho are planning to launch their electriccars in the coming years (Suzuki, Toyota,GM, Nissan, BMW ).The effort of Karakoram motors has tobe appreciated & applauded, for beingthe pioneer industry in Pakistan to breakthe shackles of local monopoly &introducing a vehicle that basical lyrepresents the future. We hope that thisvehicle receives over whelming responsefrom consumer sector & governmentalso supports the cause in the process.The future is Electric cars and Dynasty& Karakoram Motors, working for agreener future......

Running & maintenance cost of an electric vehicle are significantly low.The dynasty electric automobile costs Rs 1.76/km as compared to 6 km/l

& 3.87 km/l of an ideal 1.0L internal combustion engine vehicle, running onPetrol & CNG respectively.

Automotive Sector - Article


MADE IN PAKISTAN MOTORCYCLESRETAIL PRICE LIST

70cc Motorcycle

Retail Price

Rs. 42,500/=

Rs. 39,000/=

Rs. 39,000/=

Rs. 39,500/=

Rs. 398,000/=

Rs. 45,300/=

Rs. 39,000/=

Rs. 39,500/=

Rs. 41,000/=

Rs. 39,900/=

Rs. 46,000/=

Rs. 47,000/=

Rs. 41,000/=

Rs. 62,900/=

Rs. 40,000/=

Rs. 40,500/=

Rs. 38,500/=

Rs. 38,500/=

Rs. 38,000/=

Rs. 38,500/=

Rs. 42,900/=

Rs. 38,000/=

Product &

Model Name

Aan AI-70

Asia Hero AH-70

Bionic AS-70

Crown Lifan CRLF-70

Diamond SD-70

Dhoom YD-70

Eagle DG-70

Ghani GI-70

Guangta GT-70

Grace CT-70

Hero RF-70

Hero RF-70 Plus

Habib HB-70

Honda CD-70

Hi-Speed SR-70

Jinan JN-70

Leader LD-70

King Hero KH-70

Moon Star MT-70

Master MD-70

Metro Hi-Tech MR-70

New Asia NA-70

Sr./

No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

Product &

Model Name

Pak Hero PH-70

Ravi Premium R1

Ravi Hamsafar-70

Road Prince RP-70

Royal Star RS-70

Royal RL-70

Racer AS-70

Safari SD-70

Sakai SK-70

Star DL-70

Sohrab JS-70

Sonica SM-70

Super Asia SA-70

Super Star SS-70

Super Power SP-70

Super Power Delux

Toyo TG-70

Target TT-70

Unique UD-70

Union Star US-70

United US-70

Zxmco ZX-70

Retail Price

Rs. 42,500/=

Rs. 47,000/=

Rs. 43,000/=

Rs. 39,000/=

Rs. 39,000/=

Rs. 42,500/=

Rs. 39,000/=

Rs. 40,000/=

Rs. 39,000/=

Rs. 39,900/=

Rs. 41,500/=

Rs. 42,400/=

Rs. 39,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 45,000/=

Rs. 39,500/=

Rs. 39,500/=

Rs. 41,000/=

Rs. 42,000/=

Rs. 40,000/=

Rs. 40,500/=

Sr./

No.23.

24.

25.

26.27.

28.

29.30.

31.

32.

33.34.

35.

36.37.

38.

39.

40.41.

42.

43.44.

Price updated Jan-2011



MADE IN PAKISTAN MOTORCYCLESRETAIL PRICE LIST

125cc Motorcycle 100cc MotorcycleBrand & Model Name

Habib HB-125

Sitara ST-125

Super Star SS-125

Hero RF-125

Honda CG-125 STD

Honda CG-125 DX

Metro MR-125

Ravi Storm-125 Euro II

No.

1.

2.

3.

4.

5.

6.

7.

8.

Retail Price

Rs. 88,000/=

Rs. 55,000/=

Rs. 54,000/=

Rs. 75,000/=

Rs. 86,500/=

Rs. 108,900/=

Rs. 55,500/=

Rs. 78,000/=

Brand &Model Name

Asia Hero AH-100

Ghani GI-100

Habib HB-100

Honda CD-100

Sitara ST-100

Super Star SS-100

Super Power SP-100

Unique UD-100

No.

1.

2.

3.

4.

5.

6.

7.

8.

Retail Price

Rs. 46,000/=

Rs. 45,500/=

Rs. 55,000/=

Rs. 70,900/=

Rs. 51,000/=

Rs. 48,000/=

Rs. 45,500/=

Rs. 52,000/=

Sr./

No.

1.

2.

3.

Yamaha MotorcycleProduct &

Model Name

Yamaha YD100

Yamana Yama4

Yamaha YB100 Royale

Retail Price

Rs. 73,300/=

Rs. 69,900/=

Rs. 70,000/=

Sr./

No.

1.

2.

3.

4.

5.

Suzuki MotorcycleProduct &

Model Name

Suzuki Sprinter ECO

Suzuki Sprinter STD.

Suzuki GS-125

Suzuki GS-150

Suzuki Shogan

Retail Price

Rs. 67,000/=

Rs. 70,000/=

Rs. 79,900/=

Rs. 86,000/=

Rs. 76,000/=



Automark January 2011

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Transcript of Automark January 2011