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Mantra of Success @ Toyota: Fix it Right DOJO

Dear readers !!!

Hope you had read my last article published in Automark magazine of April edition with the title of “the significance of Dojos in Automotives” The outcome from last article was to understand the concept and importance of Dojo in the Automotive industry.

Dojo is an integral part and this program serves as a dedicated space for individuals to train and develop the arts and skills for the team, with the specific practices. The core principle of Dojo is to provide a place where the company provides an opportunity to improve the knowledge, and skills of their team, develop a character like customer handling, and bring the team as part of an exciting system by following the defined procedure, this is a powerful approach to have a focus towards the problem-solving and continuous improvement in the process that promotes cross-functional collaboration, skill development, a culture of continuous improvement, and sustainable solutions.

The Dojo training program helps to improve the quality of the products being produced, reduce costs during manufacturing, enhance innovation while practicing, standardize processes and sequence of the work, and most important, is to develop skill and talent.

This month’s article, I would like to share the success story of implementing the Dojo of Fix It Right with Toyota IMC. This “Fix It Right” dojo concept was a structured approach to problem-solving, providing a platform with a dealership network for continuous improvement in the dealership network, inspired by Lean and Six Sigma principles.

It involves bringing together a cross-functional team to rapidly identify, analyze, and solve problems or process inefficiencies in a collaborative manner. The goal is to fix the root causes of the problems rather than just addressing symptoms and to create sustainable solutions that prevent a recurrence.

The benefit of implementing the “Fix It Right” dojo concept in organizations is that this is a faster problem-solving approach, the dojo concept promotes a structured and disciplined approach to problem-solving, allowing teams to quickly identify and analyze issues, and implement solutions in a timely manner. This helps organizations address problems promptly and prevent them from escalating into larger issues.

The dojo concept provides an opportunity for team members to skill development and approach development towards their problem-solving, critical thinking approach, and analytical skills through hands-on problem-solving exercises, team members can learn and apply various tools and techniques for root cause analysis, data analysis, and solution implementation, enhancing their overall problem-solving capabilities. The dojo concept encourages bringing together individuals from different functions or departments to work collaboratively on problem-solving.

This promotes a holistic approach to problem-solving, as team members with diverse perspectives and expertise contribute their ideas and insights. This can lead to more innovative and effective solutions. By addressing the root causes of problems, the “Fix It Right” dojo concept can lead to cost savings (practicing to avoid repeat repair jobs) in the extensive, by eliminating inefficiencies, reducing defects and errors, and optimizing processes, dealerships can achieve cost reductions and improved financial performance. This can result in significant cost savings over time, contributing to the organization’s bottom line.

The dojo concept fosters a culture of continuous improvement, where teams are encouraged to identify and address problems proactively. It promotes a mindset of learning from failures and using them as opportunities for improvement, rather than blaming individuals or departments for problems.

This helps create a positive and collaborative work environment where continuous improvement becomes part of the organization. The dojo concept emphasizes addressing the root causes of problems rather than just treating symptoms. This helps organizations to implement long-term solutions that prevent the recurrence of problems, leading to sustainable improvements in processes and performance.

Employee engagement and empowerment: The dojo concept encourages frontline employees to participate in problem-solving and improvement initiatives, giving them a sense of ownership and empowerment. This can lead to increased engagement and motivation among employees, as they see their contributions making a tangible impact on the organization’s success.

The beauty of Toyota is its outstanding framework. Since Frameworks play a critical role in the automotive industry, providing a structure for designing, developing, and producing vehicles and after sales support.

Toyota provides comprehensive training and education programs for dealership personnel, including sales, after sales service, and management training. These programs aim to improve the skills and knowledge of dealership staff, allowing them to better serve customers and achieve higher sales and customer satisfaction.

As a leading automotive manufacturer, Toyota offers various programs for dealership development to support their dealers and enhance their business operations.

Overall, Toyota’s dealership development programs offer a wide range of benefits to support their dealers in improving their operations, increasing profitability, and ultimately providing the best quality service and delivering excellent customer service like with the concept of “Best in Town” Service, Quality Service to every customer.

These programs help dealerships stay competitive in the automotive market and enhance their relationship with Toyota as a business partner. These frameworks are typically complex systems that enable manufacturers to streamline the production process, improve quality control, and reduce costs.

The importance of the framework in the automotive industry enables manufacturers to produce high-quality vehicles that meet specific requirements and regulations, while also improving efficiency and reducing costs. Frameworks help to ensure that the manufacturing process is consistent and that vehicles meet a high level of quality. This is essential for maintaining customer satisfaction and loyalty.

By improving efficiency, reducing waste, and standardizing processes, frameworks can help manufacturers reduce costs and increase profitability. This is important for staying competitive in a highly competitive industry. Frameworks help to standardize the design and development process, allowing manufacturers to produce vehicles that meet specific requirements and regulations. This ensures that vehicles are safe, reliable, and meet industry standards.

Take away from this article:

Overall, the “Fix It Right” dojo concept is a powerful approach to problem-solving and continuous improvement that promotes cross-functional collaboration, skill development, a culture of continuous improvement, and sustainable solutions. By implementing this concept, organizations can achieve faster problem resolution, improve their processes, engage and empower employees, and drive overall organizational success. So, it is worth considering as a valuable approach for organizations seeking to improve their problem-solving capabilities and achieve sustainable improvements in their operations.

In the last, I’d like to share a quote that I found really impactful: “If you don’t step forward, you will remain in place”. So, keep moving!

This article has been published in Automark Magazine’s May-2023 printed edition.

Highlights of Auto Shanghai 2023

People visit the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

The Hycan ATELIER concept car is on display during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

People look at an AITO M5 on display during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

People look at a Nio ES6 on display during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

A Yangwang U8 SUV is on display during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

People visit the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

People look at a BMW concept car on display during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

People look at a Lamborghini Revuelto supercar during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

A Hongqi E001 electric car is on display during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

People visit the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters.

People visit the exhibition area of Ora, a brand under Chinese automaker Great Wall Motors (GWM), during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters. (Xinhua/Wang Xiang)

People look at a Neta GT Speedster on display during the 20th Shanghai International Automobile Industry Exhibition in Shanghai, east China, April 25, 2023. The exhibition, also known as Auto Shanghai 2023, is the first A-class international auto show held in China since the country adjusted its COVID-19 response. With 13 indoor exhibition halls, it boasts an exhibition area of more than 360,000 square meters. Source: Xinhua/Wang Xiang – China

The Future of Electric Bikes in Pakistan

Electric bikes, or e-bikes, have been around for a while now and are becoming increasingly popular worldwide. They offer an eco-friendly alternative to traditional bikes, with the added convenience of an electric motor to help you along. In Pakistan, e-bikes are still a relatively new concept, but with the country’s growing environmental concerns and a push towards sustainable transport options, the future of electric bikes in Pakistan looks bright.
First, let’s take a look at the current state of e-bikes in Pakistan. While they have been available in the country for a few years now, they have yet to gain widespread adoption. One of the main reasons for this is the cost. E-bikes are generally more expensive than traditional bikes, which can be a barrier for many people. Additionally, there is a lack of awareness about e-bikes and their benefits, which can make people hesitant to invest in one.
However, there are some signs that this may be changing. In recent years, there has been a push towards more sustainable transport options in Pakistan, with a focus on reducing air pollution and congestion. This has led to initiatives such as the introduction of electric buses in major cities and the promotion of cycling as a means of transportation. E-bikes could fit into this trend nicely, as they offer a way to cycle without having to worry about getting too tired or sweaty, which can be a deterrent for some people.
Another factor that could drive the adoption of e-bikes in Pakistan is the country’s geography. Pakistan is a mountainous country, with many steep hills and challenging terrain. This can make traditional cycling difficult, but e-bikes with their electric motors can make it much easier to tackle hills and other obstacles. This could make e-bikes an attractive option for people who live in hilly areas or who want to cycle longer distances without getting too tired.
In addition to these factors, there are also some practical benefits to e-bikes that could make them more appealing to people in Pakistan. For example, e-bikes are generally cheaper to maintain than traditional motorbikes or cars, which could be a selling point for people on a budget. They also offer a way to avoid traffic congestion, which can be a major problem in cities like Karachi and Lahore.
Of course, there are still some challenges that need to be addressed in order for e-bikes to become more popular in Pakistan. One of these is the lack of infrastructure to support them. For example, there are very few charging stations for e-bikes in the country, which can make it difficult to use them for long distances. Additionally, there is a need for better regulations around e-bikes, particularly in terms of safety standards and licensing.
However, there are some steps being taken to address these challenges. For example, the government of Pakistan has announced plans to install electric vehicle charging stations across the country, which could make it easier for people to use e-bikes for longer distances. Additionally, there are efforts underway to develop safety standards and regulations for e-bikes, which could help to ensure that they are used safely and responsibly.
In conclusion, the future of electric bikes in Pakistan looks promising. While there are still some challenges to overcome, there are also many factors that could drive the adoption of e-bikes in the country. With a growing focus on sustainable transport options and a need for more affordable and practical transportation solutions, e-bikes could be the perfect fit for Pakistan’s future. If the government and private sector work together to develop the necessary infrastructure and regulations, we could see a significant increase in the number of e-bikes on Pakistan’s roads in the coming years.

However, as per data of Engineering Development Board (EDB), 23 local organizations have registered their companies to establish electric bike setup in Pakistan. Our of 23 registered upcoming assembler/manufactures few of them already introduce e-bikes for customers and many more are working on it.
Other than these companies many other local and foreign investors are keen to invest in EV sector in Pakistan. Some trading companies have import e-bikes in CBU condition to test the local market.
Recently, Foxtrot A Pakistan Company has partnered with Energica Motor Company Italy, the world’s leading manufacturer of electric superbikes marking a new era in sustainable and high-performance mobility.
Energica will offer its customers fastest and most powerful electric motorcycles in the world! With acceleration from 0-100 in just 2.6 seconds (faster than the fastest ICE bike), a range of 420 km on a single charge, and the fastest charging time of just 25-30 minutes Energica bikes are the perfect blend of performance and sustainability.
It is quite rare that a globally renowned automotive brand is launching in Pakistan even before launching in India. This is indeed a great beginning for the EV market in Pakistan

What is the significance of Dojos in Automotives?

A “Dojo” is a Japanese term for a training facility that’s often used in the context of martial arts. However, it has also been adopted in various industries, including the auto industry, so let’s understand the concept and sole purpose of the DOJO to refer to a training program or facility that helps employees acquire new skills and knowledge.

The term “dojo” can be translated as “place of the way,” indicating that it is a space where individuals come together to train in the way of their respective martial art. In this blog, we will explore the history and significance of dojos in Japanese culture, as well as the practices and customs that take place within them.

In the Auto industry, dojos are used for several reasons:

Improving quality: Dojos help to improve the quality of the products being produced by providing a controlled environment for employees to practice new techniques and processes.

Reducing costs: By providing employees with the necessary training and skills, dojos can help to reduce costs associated with rework, scrap, and defects.

Enhancing innovation: Dojos encourage innovation and creativity by providing employees with the opportunity to experiment with new ideas and processes.

Standardizing processes: Dojos help to standardize processes and procedures across different teams and departments, ensuring that everyone is using the same best practices.

Developing talent: Dojos provide employees with the opportunity to develop their skills and knowledge, which can lead to career advancement within the company.

In the automotive industry, the Japanese technique of “dojo” has been used for decades to improve the efficiency, quality, and safety of production processes. In the automotive industry, the “dojo” is a dedicated space where workers can come together to collaborate, learn, and continuously improve their skills. The “dojo” is typically equipped with the necessary tools, equipment, and materials to support hands-on learning, experimentation, and problem-solving.

One of the primary goals of the “dojo” in the automotive industry is to reduce waste and improve efficiency. Workers in the “dojo” are encouraged to identify and eliminate any unnecessary steps, movements, or materials that slow down the production process. This can include anything from reorganizing workstations to streamlining communication between workers.

Another important aspect of the “dojo” in the automotive industry is safety. Workers in the “dojo” are trained on best practices for handling equipment, avoiding accidents, and responding to emergencies. The “dojo” is also used to simulate real-world scenarios, allowing workers to practice and refine their safety protocols in a controlled environment.

In addition to improving efficiency and safety, the “dojo” in the automotive industry is also used to promote quality. Workers in the “dojo” are trained on the proper techniques for inspecting, testing, and verifying the quality of their work. This can involve everything from using specialized tools to identifying defects and making necessary adjustments.

Overall, the Japanese technique of “dojo” has been a valuable tool for the automotive industry, helping to improve efficiency, safety, and quality. By providing a dedicated space for learning, collaboration, and continuous improvement, the “dojo” has helped workers in the automotive industry to master their craft and achieve excellence in their work.

History of Dojo:

The concept of dojo originated in Japan during the medieval period. At this time, martial arts were primarily taught in private settings, such as the homes of individual instructors. However, as the popularity of martial arts grew, many instructors began to establish dedicated training spaces, or dojo, where they could teach students in a more formal setting.

The first recorded use of the term “dojo” can be traced back to the 17th century, during the Edo period in Japan. During this time, the samurai class was largely disbanded, leading many former samurai to turn to martial arts as a means of employment. This led to the establishment of many dojos throughout Japan, where individuals could train and develop their martial arts skills.

Over time, the practice of martial arts in the dojo evolved beyond simply training in techniques and fighting skills. In many cases, dojo became centers of spiritual and philosophical learning, emphasizing concepts such as discipline, respect, and self-improvement.

Practices and Customs within Dojo

In modern times, a dojo typically adheres to a set of practices and customs that are intended to foster an environment of respect, discipline, and self-improvement. These practices may vary depending on the martial art being practiced, as well as the specific dojo in question. However, some common practices and customs within the dojo include:

Bowing: Bowing is a common practice in many dojos, and is often done at the beginning and end of each training session. Bowing is a sign of respect, and is meant to show appreciation for the opportunity to train and learn within the dojo.

Uniforms: Many martial arts require practitioners to wear a specific uniform, These uniforms often serve a practical purpose, such as providing freedom of movement during training. However, they also serve as a symbol of the expert’s commitment to the art and the dojo community.

Etiquette: Dojo often has a specific set of protocol rules that are required to follow. These may include rules regarding behavior within the dojo, such as not wearing shoes on the training floor, as well as rules regarding interactions with other practitioners and instructors.

Testing and Ranking: Many martial arts have a system of testing and ranking, where practitioners can earn higher levels of proficiency through demonstration of skill and knowledge. Testing and ranking within the dojo are often done in a formal setting, and are meant to provide motivation and recognition for practitioners who have achieved a certain level of proficiency.

Community: Dojos are often seen as more than just a training space – they are also a community of individuals who share a common passion for martial arts. Within the dojo community, have an opportunity tobond and develop lifelong friendships.

Takeaway from this article:

Dojo is an integral part of Japanese culture, serving as a dedicated space for individuals to train and develop their paramilitary arts skills. While the specific practices and customs within a dojo may vary depending on the martial art and the specific dojo in question, the core principles of respect, discipline, and self-improvement are shared by training experts, the dojo is a place where you can improve your skills, develop your character, and become part of an exciting community. Overall, dojos are important in the Auto industry because they help to improve the quality of the products being produced, reduce costs during manufacturing, enhance innovation while practicing, standardize processes and sequence of the work, and most important is to develop skill and talent.

The Landscape of the Auto Industry in Pakistan

1972, socialism deeply influenced PPP Government to wrap up the entire industry under nationalization. The entire auto industry was reshaped and renamed. Japan acquired 40% shares of Pak Suzuki Motor Co. In 1972, Pakistan Automobile Corporation (PACO) was formed; after Sindh Engineering was renamed Wazir Ali Engineering, Ali Autos was renamed as Awami Autos, Republic Motors was renamed Haroon Industries, Gandhara Motors was renamed National Motors, Hye Sons was renamed Mack Trucks, Kandawala Industries renamed by Naya Daur Motors, Jaffer Industries changed as Trailer Development Corporation, Rana Tractor renamed by Millat Tractor.

SPEL started producing plastic parts in 1978. In 1980 Awami motors assembled the famous Suzuki Pick-Ups and Sindh Engineering Mazda Trucks. Production of Agri auto parts also started in Pakistan in the year 1981 by the Agriauto Industries. Auto Industry accepted the huge positive change by the production of Suzuki cars in 1982. Vendor Development & Technical Cell (VDTC) was formed in 1983; Al-Ghazi Tractor introduced Fiat Tractors in the same year. The 1st Generation Suzuki Potohar was introduced in 1985 and got very popular in government circles. In 1986 Pakistan Association of Auto Parts and Accessories Manufactures (PAAPAM) came into existence which organized the vender sector in Pakistan and impacted mightily this sector. In 1986, another new company was formed, i.e, Hinopak Motors limited by the joint venture of PACO, AL-Futtaim, Hino Motors & TTC. In 1987 Gandhara Nissan started the production of Nissan Diesel Trucks.

The 1993 is another landmark of the Auto Industry when Indus Motor started the production of the Toyota Corolla and introduced the market to new horizons, followed by Honda Atlas manufactured Honda Civic. The auto and parts industry attained another milestone when PAAPAM organized the first Pakistan Auto Show in the Marriot Islamabad in 1995, setting the automotive industry in Pakistan on the fast track. During the Musharraf rule, banks got very extroverted and filled the roads with glazing brands. At the start of the Millennium, dual fuel options were introduced to run both on petrol and CNG to enhance the affordability for a commoner. Although that proved to be a later intuitive and swam stupidity. However, it generated a thrill for the time being and left a long-term negative effect. Many small assemblers and importers of motorcycles surfaced to present replicas of the ever-popular Honda 70 from 2001-2007. To safeguard their business interests, the Pakistan Automobile Manufacturers Association (PAMA) came into existence in 2007. During this period, Afzal Motors got a license from Daewoo and assembled locally. From 2007 to 2009, the auto sector experienced a bearish trend due to high-interest rates and Yen’s appreciation against the PKR. But this recession proved to be short living, and the industry bounced back mightily; auto sales rebounded. The auto industry filled the market demand with the app. US$88 million during this decade.

The Auto Policy 2016-21 fascinated new producers in the market traditionally dominated by Honda, Toyota, and Suzuki. The fully documented auto industry stood as the second-largest indirect taxpayer, followed by the petroleum industry in Pakistan. During this period, Toyota started the local assembly of its sedan Corolla. United Motors made the first local car. Ghandhara Nissan began producing Isuzu d-max in Pakistan. Pakistan Rose by 171% between just 2014 and 2018. That accounted for app. 3% of Pakistan’s GDP and employs a workforce of over 4 million people as of 2018; Pakistan is the 35th largest producer of automobiles. Its contribution to the national exchequer is nearly 50 billion (US$220 million). Pakistan’s auto market is among the smallest but fastest-growing in this continent. Two hundred sixty-nine thousand seven hundred ninety-two cars were sold in the year 2018 but declined to 186,716 in 2019 due to Covid19. Currently, the auto market is mostly dominated by Honda, Toyota, Kia, Changan, and Suzuki. New Auto Policy (2021 to 2026) which offered tax incentives to new automakers to establish manufacturing plants in the country. In response, Renault, Nissan, Proton Holdings, Kia, SsangYong, Volkswagen, FAW, and Hyundai have expressed interest in entering the Pakistani market. MG JW Automobile Pakistan has signed a memorandum of understanding (MoU) with Morris Garages (MG) Motor UK Limited, owned by SAIC Motor, to bring electric vehicles to Pakistan. NLC signed an agreement with Mercedes Benz for the manufacturing of Mercedes Actros trucks in Pakistan. On July 8, 2022, Jolta Electric launched the production of electric motorcycles.

Despite oddities, Pakistan has almost attained 95% localization for tractors and motorcycles, 50 % for cars, and 20-25% for trucks and buses. Some seasoned repeated car models have even more than 50% localization. Unfortunately, the economy of scale demands one million productions of cars for more localization, whereas we are resolving around 200k per annum.

The critical phase for the auto and part sector started in July 2022 when the Government restricted the import of CKDs and parts abruptly under the looming shadows of default. As usual, the government did not bother to take stakeholders on board, leaving this industry in the lurch. After that Government introduced an import quota regime on the basis of 50% import performance which met the industry’s satisficing needs. In the second move, the State Bank of Pakistan (SBP) hung the drum around the neck of commercial banks to bring the entire sector of the economy to a grinding halt. Tractors, cars, and Chinese motorcycle producers are the top affectees of this ongoing crisis.

Food security is perfectly co-related with the tractor industry which is also tumbling. I feel at this point the Original Equipment Manufacturers (OEMs) would have repented for not transferring the technology to maximize the indigenization which could have kept them unaffecting during the rainy days. Only national purchasing power can scale up the auto market to more than a million automobiles in Pakistan which can only be attained through export and localization. We need to evolve this mindset as early as possible. Now production has been grounded and many OEMs either have closed or are in a propelling situation of closure. The markup rate was another bomb that had a great brunt on the whole industry.

The way forward lies with exports and localization, which can be categorized into the short-term and long-term. As a trade-off action, the government should restore the quota regime immediately. At least machinery, equipment for measurement, metrology, calibration equipment, designing equipment, CAD, CAM, and CAE software, Molds, dies and fixtures, 3-D Printing, etc., should be duty-free.

The rationalization of duties on the import of parts and raw materials needs immediate review. Government should have a dialogue with OEMs to bring technology to Pakistan and export products to a certain incremental portion of the production. We stand nowhere on the global index of efficiency. The cluster-based training initiative can reduce the gap. Safety testing equipment and laboratories do not exist in Pakistan and how export can be possible without them? This issue could also be addressed through clustering and government support.

Exports of auto parts have never been encouraging if we compare ourselves with the other countries in the region. It’s bad news and the silver lining at the same time on the account that a lot of export potential is still virgin. Only auto parts have about 200 billion’s potential for exports, regarding automobiles export. Millat Tractors Ltd (MTL) had started good export inroads but the economic uncertainties thwart its effort. We will have to see the issues hampering our exports like irrational duties, technology transfer by our OEMs, low markup, rebates, and capacity building to meet the modern challenges. Localization and enhancement of export baskets are open secrets to synergies in this sector. If your direction is right, you have a future, no matter at what speed you are crawling.

Despite all oddities, the future of auto and related industries look glazing in Pakistan, although under speed and experiencing speed breakers. The auto sector, which is currently contributing just 3% to GDP, has much more potential to single-handedly shift the economic paradigm if supported. The current auto policy from 2021-26 has a lot to allure foreign investors. Pakistan has 8-10 cars per 1000 people. This is the lowest ratio among emerging economies. An approximated fluxing of millions of youths in mainstream economic activities will cause drastic market demands. The local market of 230 million has great depth. The current car production in Pakistan is just 227000 plus 45000 other vehicles per annum against the 70 million population Thailand produces 1.2 million and a total of four wheels 2 million.

By Ghulam Murtaza (GM) is a freelance writer connected to the automobile and parts industry.

50TH ANNIVERSARY CANADIAN INTERNATIONAL AUTOSHOW CROSSES THE FINISH LINE

TORONTO, Ont. — The 2023 Canadian International AutoShow has marked a successful return as Canada’s largest automotive and consumer show. 

Celebrating its 50th anniversary, the AutoShow has been a showcase of automotive excellence and innovation, from the latest models offered by some of the world’s biggest automotive brands to the newest EVs that are leading to an electrified future to the luxury and exotic cars that tickle the imagination. For 10 days at the Metro Toronto Convention Centre, the automobile was the centre of attention, delighting fans young and old.

“The AutoShow has always been a reflection of the automotive industry, and we have seen that clearly at the 2023 AutoShow,” says Jason Campbell, General Manager of the AutoShow. “Over the course of this year’s show, we have seen the direction the sector is headed. New innovations are changing the way we drive. The government has put us on path to zero-emission vehicles, and we are exploring more electric and hydrogen options. Our manufacturer partners are connecting with potential consumers at the Show in new ways through engaging attractions and interesting cars.” 

Some highlights of the 2023 AutoShow include:

NEWEST VEHICLES
·   The global debut of the all-new 2024 Buick Encore GX. 
·   The North American debut of the Hyundai N Vision 74 hydrogen hybrid concept car. 
·   Canadian debuts of the Hyundai RN22e concept, Nissan NISMO Off Road Frontier V8 concept, Dodge Hornet, Alfa Romeo Tonale, Jeep Wrangler Rubicon 20th anniversary edition, Kia Seltos, Subaru Crosstrek, GMCSierra EV Denali and Toyota Grand Highlander. 
·   A showcase of electrification of the automotive sector. More than 75 fully-electric vehicles were found across the AutoShow’s displays and attractions this year, along with 18 hybrids, 14 plug-in hybrids and two hydrogen cars.
·   Concept cars, including the ones mentioned above along with Buick Wildcat, Nissan ARIYA Surfwagon and the Project Arrow car, a collaborative project of the Automotive Parts Manufacturers Association and 50 partners that produced an all-electric vehicle that was designed, engineered and built in Canada, entirely with Canadian parts. 
TORONTO, Ont. — The 2023 Canadian International AutoShow has marked a successful return as Canada’s largest automotive and consumer show. 

Celebrating its 50th anniversary, the AutoShow has been a showcase of automotive excellence and innovation, from the latest models offered by some of the world’s biggest automotive brands to the newest EVs that are leading to an electrified future to the luxury and exotic cars that tickle the imagination. For 10 days at the Metro Toronto Convention Centre, the automobile was the centre of attention, delighting fans young and old.

“The AutoShow has always been a reflection of the automotive industry, and we have seen that clearly at the 2023 AutoShow,” says Jason Campbell, General Manager of the AutoShow. “Over the course of this year’s show, we have seen the direction the sector is headed. New innovations are changing the way we drive. The government has put us on path to zero-emission vehicles, and we are exploring more electric and hydrogen options. Our manufacturer partners are connecting with potential consumers at the Show in new ways through engaging attractions and interesting cars.” 

Some highlights of the 2023 AutoShow include:

NEWEST VEHICLES
·   The global debut of the all-new 2024 Buick Encore GX. 
·   The North American debut of the Hyundai N Vision 74 hydrogen hybrid concept car. 
·   Canadian debuts of the Hyundai RN22e concept, Nissan NISMO Off Road Frontier V8 concept, Dodge Hornet, Alfa Romeo Tonale, Jeep Wrangler Rubicon 20th anniversary edition, Kia Seltos, Subaru Crosstrek, GMCSierra EV Denali and Toyota Grand Highlander. 
·   A showcase of electrification of the automotive sector. More than 75 fully-electric vehicles were found across the AutoShow’s displays and attractions this year, along with 18 hybrids, 14 plug-in hybrids and two hydrogen cars.
·   Concept cars, including the ones mentioned above along with Buick Wildcat, Nissan ARIYA Surfwagon and the Project Arrow car, a collaborative project of the Automotive Parts Manufacturers Association and 50 partners that produced an all-electric vehicle that was designed, engineered and built in Canada, entirely with Canadian parts. 

NEW SPECIAL FEATURES
·   The first Canadian appearance of Camp Jeep, an indoor course with five-man-made obstacles that showcase the rugged capabilities of the famed 4×4 vehicles.  
·   Electric City put a spotlight on the infrastructure needed to support the EV future and electrified micro-mobility alternatives. A repayable Government of Canada investment of $500,000 through the Tourism Relief Fund, delivered by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) to create Electric City supports the federal mandate for zero-emission vehicles in Canada.
·   The EV Test Track— the largest indoor track of its kind in Canada — proved immensely popular, with as many as 925 test drives being taken a day.
·   The REVZONE showcased some of the cars and events that are broadcasted on REV TV, with several interactive exhibits and live broadcasts. 
·   Accessible Mobility with Universal Motion featured six modified vehicles highlighting support available for those in our society who find themselves challenged by their mobility.
·   Mississauga-based manufacturer Roshel showcased its Senator APC, an armoured personnel carrier. The Canadian government purchased 200 of the vehicles to be sent to Ukraine as part of Canada’s contribution to the international effort in aid of that country’s defence. 

FAMILY FEATURES
·   The LEGO Group returned to the AutoShow with another full-sized model of a supercar — this time the Lamborghini SIAN FKP 37, which made its first-ever appearance in North America. The model took 10 months to build and is made from more than 400,000 pieces.
·   Hot Wheels helped the AutoShow celebrate its 50th anniversary with a selection of six life-sized versions of cars from the Hot Wheels Garage of Legends and the original “Sweet 16” diecast Hot Wheels that were the first produced by the brand in 1968. In partnership with PASMAG Tuning 365, Hot Wheels presented The AutoShow Anniversary Selection, a collection of customized cars selected from fan submissions. 

FAN FAVOURITES
·   Auto Exotica once again featured stunning and rare luxuries and exotics: A Bugatti Chiron Pur Sport and Koenigsegg Regera among the collection from Grand Touring Automobiles; cars once owned by celebrities Jenifer Lopez and Floyd Mayweather in the Autostrada display; some classics brought in by Barrett-Jackson; a championship Porsche in the Pfaff display; the S, 3, X and Y from Tesla
·   Cobble Beach presented 75 years of Porsche, a collection of 16 rare and important Porsches from over the past three-quarters of a century, including the most expensive car at this year’s AutoShow, a 1969 Porsche 917 Long Tail Chassis 005. 
·   OBLIVION, a Celebration of the Cars and Culture of the ’80s and ’90s, brought back a replica of the DeLorean time machine from the Back to the Future movies, along with some unique cars from the era that included the Magna Vehma Torrero prototype from the late 1980s. 

As the final Saturday of the 2023 AutoShow was drawing to a close, the Canadian Motorsport Hall of Fame inducted its 2022 class in a gala event in the John Bassett Theatre in the Metro Toronto Convention Centre. 

The induction included 12 individuals and one racing team, plus another racing team in the International Category. The 2022 inductees are: 
·   AIM Autosport 
·   Uli Bieri 
·   Chris Bye 
·   Gary Elliott 
·   Terry Epp 
·   Robert Giannou 
·   Carl Harr
·   Dave Lloyd 
·   Derek Lynch 
·   Bob MacDonald 
·   Dick Midgley 
·   Scott Spencer 
·   Bruce Biegler 
Pfaff Motorsports was honoured in the International Category. (For more information on each inductee, please see the Backgrounder below.)

Planning will now begin for the 2024 Canadian International AutoShow, which will take place February 16th to 25th, 2024, back in the North and South Buildings of the Metro Toronto Convention Centre. 
 
About the Canadian International AutoShow, presented by The Toronto Star
Celebrating its 50th year, the Canadian International AutoShow features more than 650,000 square feet of exhibits, displays and attractions spanning the North and South Buildings of the Metro Toronto Convention Centre. With an annual attendance in excess of 330,000, the Canadian International AutoShow is not only the largest automotive expo in Canada, it is also the country’s largest consumer show. A leader in lifestyle, technology and all things automotive, it is a showcase for the latest cars, trucks, SUVs, concept cars, exotics, classics, muscle cars, electric and alternative fuel vehicles.
– PRESS RELEASE
 

Consumer Behavior in Automotive Industry

As well said by Mr. Donald Potar that “Customers don’t expect you to be perfect. They expect you to fix things when they go wrong.

Since last two decades, it has been seena huge development in the dealership network with outstanding network by each company (OEMs) has been established in order to provide the best and complete solution to customers under one roof. Complete or best solution for customers under one roof means to have complete process cycle “Customer Experience” from vehicle booking / purchase to Aftersales Service, Warranty obligation and management of the entire repair solution and resale etc. The whole exercise from the companies to have best dealership network to meet with customers expectation because customers have high standards: the words “great customer experience” or “excellent customer service” occur most often in positive dealership reviews, followed by variations of “best” or “great buying experience.” Words such as “friendly,” “helpful,” and “knowledgeable” emerge often in positive dealership reviews.

Let’s understand what customers want and what they have exceptions from dealership or company. Customer expectations had two levels: desired (what the customer hopes to obtain) and sufficient (what the customer would find acceptable). Of course, there’s a third level: unsatisfactory, where companies miss the mark entirely. Customers satisfaction is about meeting customer expectations and best customer satisfaction always have an impact on both existing and potential customers.

These are the factors which should be consider for the customers satisfaction and makes sure that customer having these expectationsfrom that dealership, likeQuick and appropriate response, dealership to Listen their VOC, dealership to dobest for customers, deliver beyond as per customer expectations, dealership needs to continually ensure your customers value what you offer, empathize with customers, educate customers about the product and necessary engagement with customer for the periodic maintenance of vehicle etc.however, the most factor is “KYC” Know Your Customer Wants”

What customer is demanding when he is visiting to the auto workshop for complaint or for repair services that his vehicle (i) should be return to him within Promise time (ii) by fixing all issues right at first time (no repeat repair) (iii) the promise time should be reasonable. Because for a customer, there’s nothing more frustrating than being without a vehicle for an extended period of time (more than promised time) and then needing to bring that same vehicle back to the auto shop for the same issue because of repetition of same issue (in case of non-fix-it-right). In Automotive industry, customer service is everything, hence the Fix-it-Right, right at first time of customers complaint is right approach to gain the customer trust and their satisfaction. it is essential for businesses to effectively manage customer satisfaction. To be able do this by the company, firms need reliable and representative measures to be initiative for the customer satisfaction.

When it comes to purchasing a vehicle or any other product or service from a company or dealership, customers have certain expectations that they want to be met. These can include:

Trustworthiness: customers typically want trustworthiness from a dealership. This includes honesty, transparency, and a commitment to providing good customer service. Trustworthiness can help build a positive reputation for the dealership, which can lead to repeat business and positive word-of-mouth recommendations. Trustworthiness can also help to build trust and a good relationship between the dealership and the customer, which can lead to more successful transactions and a more enjoyable overall experience for the customer. They want to be able to trust that the company or dealership they are dealing with is honest and transparent about their products and services. They want to know that they are getting a fair deal and that the company is not trying to take advantage of them.

Knowledgeable staff: knowledgeable staff from a dealership means that the staff should have a good understanding of the products and services that the dealership offers, as well as the industry as a whole. Knowledgeable staff can provide customers with accurate and helpful information, which can help customers make more informed decisions. Additionally, knowledgeable staff can also be better equipped to answer customers’ questions and address any concerns they may have, which can help to build trust and improve the overall customer experience.

Excellent customer service:Yes,customers want excellent customer service from a dealership. Excellent customer service can include things like friendly and helpful staff, prompt response to customer inquiries, and a commitment to addressing customer concerns in a timely and effective manner.Benefits of excellent customer service for customers include is to have quick resolution of issues and problems, positive experience, which can lead to repeat business and positive word-of-mouth recommendations, and ultimately this will increase the customer satisfaction and loyalty, which can lead to a better long-term relationship with the dealership. Benefits of excellent customer service for dealership include (i) increased customer loyalty and repeat business (ii) positive reputation and word-of-mouth recommendations (iii) greater potential for upselling and cross-selling products and services (iv) better chances of attracting new customers through positive reviews and feedbacks.Also, customers want to be treated with respect and kindness when they interact with a company or dealership. They want to feel valued and appreciated as a customer, and they want to be able to get help and assistance when they need it.

High-quality products or services: Customers want to be able to purchase products or services that are of high quality and that meet their needs and expectations. They want to be able to rely on the products or services that they purchase to work well and last a long time.

Competitive pricing:Yes, customers typically want competitive pricing means that the prices offered by the dealership should be in line with or better than those offered by other dealerships in the area.They want to be able to purchase products or services at a fair and competitive price and to get a good value for their money, and they want to be able to compare prices and options before making a purchase.

Benefits of competitive pricing for customers include: (i) getting a good deal or value for their money (ii) saving money (iii) having more options to compare

Benefits of competitive pricing for dealership include: (i) attracting more customers (ii) increased sales volume (iii) better chances of closing deals

Improved profitability by avoiding price wars and keeping the margins.this is important to note that while competitive pricing is important for customers, it’s not the only factor that they consider when making a purchase decision. Many customers are willing to pay more for a dealership that provides excellent customer service, knowledgeable staff, trustworthiness, and a good reputation which is discuss above.

Efficient and simple buying process:customers want to be able to purchase products or services quickly and easily. They want a buying process that is straightforward and hassle-free, and they want to be able to complete the process with minimal effort and time.There are several factors that can affect a customer’s experience with an efficient and simple buying process:Clear and accurate information meansknow exactly what they are buying, including features, specifications, and pricing. Clear and accurate information can help to reduce confusion and uncertainty, and make it easier for customers to make informed decisions.Streamlined process buying process can help to make the process quicker and more efficient. This can include things like online forms, digital signatures, and online payments.

Personalized assistance can help to make the buying process more efficient and simpler. This can include things like a dedicated salesperson or customer service representative who can help to guide the customer through the process and answer any questions they may have.

Flexibility in terms of payment methods, financing options, return policies, and other aspects of the buying process can help to make it more efficient and simpler for customers.Transparency in terms of pricing, fees and any additional costs can also help to make the buying process more efficient and simpler for customers.Overall, an efficient and simple buying process can help to build trust and improve the overall customer experience, which can lead to repeat business and positive word-of-mouth recommendations for the dealership.

Good warranty or maintenance program: Customers want to be able to have a peace of mind that they are protected against any defects or malfunctions of the product they bought, they also want to have a good maintenance program that they can rely on to keep their products or services in good working order.

A good warranty or maintenance program can have a significant positive impact on dealership services (i) increased customer satisfaction and loyalty (ii) reduced customer concerns about potential costly repairs (iii) improved customer experience (iv) building positive reputation and trust (v) competitive advantages over other dealerships that don’t provide such services (vi) additional revenue from maintenance and repairs (vii) Better control over the service schedule, which can improve the performance of the car and reduce unexpected breakdowns (viii) can increase customer retention as they will be more likely to return to the dealership for their vehicle’s warranty and maintenance services

After-sales service:Aftersales services can have a significant impact on dealership services, as it can be a key driver of customer satisfaction and loyalty. Aftersales services can include things like maintenance, repairs, and warranty work, and can be an important way for dealerships to generate repeat business and build positive relationships with customers.Benefits of aftersales services include: (i) increasecustomer retention and loyalty (ii) additional revenue from service and repairs (iii) increased customer satisfaction (iv) improve customer experience (v) building positive reputation and trust (vi) competitive advantages over other dealerships that do not provide such services

Take away from this article:

Pakistan the automotive industry and dealership services have likely been affected by the economic crisis in 2022, although the specific impacts will depend on a variety of factors. Some potential effects could include a decrease in consumer spending on cars and car-related services, a decline in demand for new and used vehicles, and financial difficulties for car manufacturers and dealerships. Additionally, the economic crisis may lead to an increase in competition among companies in the automotive industry, as they strive to maintain market share and profitability.

customers want a variety of things from businesses, including high-quality products and services, competitive prices, convenience, and good customer service. They also often value things like transparency, reliability, and a positive overall customer experience. Additionally, customers are increasingly interested in socially responsible and sustainable products and services, and may be more likely to do business with companies that align with their values. In the automotive industry, customers tend to look for good quality cars, fair prices, and good after-sales services. They also tend to be interested in the latest technology, safety features, and fuel efficiency. Therefore, it is important for businesses to understand the needs and wants of their customers and to strive to meet those needs through their products, services, and overall customer experience.

This exclusive article has been published in Automark Magazine’s February-2023 printed edition.

Diversification & refined strategies always help to overcome recession

Dear Readers according to study most prominent examples of diversification strategy is General Electric. Originally, the company was focused on electrical goods. However, over the years they have acquired and created operations in the aeronautic, rail, power plant, gas and kitchen appliances industries.

Three types of diversification techniques:

Concentric diversification. Concentric diversification involves adding similar products or services to the existing business.

Horizontal diversification.

Conglomerate diversification.

How China is strengthening its electric vehicle market during COVID-19 |  World Economic Forum

Possible RecessionImpact on Auto Industry

With an economic recession now a days, many auto industry workers are wondering how the industry will be impacted in the coming months. With ongoing supply chain issues, interest rates at an all-time high in over a decade, and inflation climbing at an unprecedented rate, it’s no wonder why people are worried about how the auto industry will be impacted in 2023.

Recession May Have Limited Effect on Used Motor Bikes & Cars Market

It’s unlikely that the recession may have much of an effect on the used car market. Business Car recently shared that, past recessions have not caused used car prices to fall substantially.

The reason behind is buyers, who are already having budgets or in some-way may be switching to a smaller fuel efficient economical model due to increasing fuel prices & possible recession or switch from new to used car purchases which increases demand as a result. Used cars aren’t likely to fall much because of the higher MSRP of new cars.

This, combined with additional inventory, should make for a better year for auto dealers – they should be able to fill their lots with less difficult without having to lower their prices by much.

Used Cars prices unlikely to come down

Many auto experts opinions are divided regarding when and how significantly used car prices will fall, the majority seem to believe that some sort of price decrease is very unlikely. To reiterate what was stated, used car prices are not likely to fall then their current prices. While used car prices are still more appealing to middle-class consumers than new vehicles.

Car dealerships have no reason to cut their prices any more than they already have as the demand continues to remain high.

The recession will have some effects on the industry, it may be less significant than others have anticipated. Overall, the economy isn’t in the best shape, but we can hope that businesses– both big and small– can sustain, and manage to come out.

Software base process monitoring helps in many ways

If one happens to operate an auto business, whether it is an auto dealership, auto transport brokerage or in car hauling business, one might be experiencing a bit of hardship. If that’s the case, then one needs to cut costs wherever possible – to do that, one should have reliable software that can help save time and money. 

Is Auto industry recession proof!

According to experts used car market is ‘recession proof’ as buyers turn to finance to pay for vehicles. Leading industry expert has described the used car market as ‘recession proof’ as prices remain high with less production despite economic struggles elsewhere.

After Sales Service: Why It Is Important & How to Improve It

Dealerships Struggle

Prices of M. Bikes & Cars both new and old have skyrocketed, as less production by local assemblers due to government restrictions large number of dealers struggle to keep stock on their lots.

Some common challenges dealerships face today.

Less Dealer Loyalty.

Increased Competition.

High New and Pre-Owned Prices.

Used Car Pricing and Aging.

Difficulty Securing Inventory.

External Economic Factors.

Auto Parts Images - Free Download on Freepik

Promotion of auto parts business.

To grow your business, you need to identify prospects that need the type of products and quality of service you are offering and communicate the benefits clearly.

Stand Out from Competitors.

Look for Prospects.

Make it Easy.

Be Flexible and Convenient.

Cater to Large Customers.

Promote Your Business.

Market your dealership to increase sales

Website design that puts users first.

Optimize your website for mobile visitors.

Expand your online presence.

Drive organic search through SEO.

Target car shoppers with paid ads.

Manage customer reviews.

Develop a multi-channel marketing strategy.

Make dealership more profitable by increasing business

Few ways that dealerships today can give process efficiency a profitable boost:

Promote Prepaid Maintenance Plans.

Consider Non-Commissioned Auto Sales.

Adopt a One-Price Sales Model.

Ensure Single-Point-of-Contact (SPOC) Auto Sales.

Optimize the Online-to-in-Store Process for Customers.

Promote Dealership on social media

Some Example Social Media Post Ideas for Car Dealerships

Introduce Your Team. Many people dread going to car dealerships because they don’t want to deal with pushy, intimidating salespeople.

Share Blog Posts.

Showcase Your Inventory.

Explain Confusing Terminology.

Advertise Discounts and Deals.

Promote Other Small Businesses.

KPI in a dealership

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Pakistan's Motorcycle Sales Soar With Expanding Middle Class

Measuring ones Key Performance Indicators (KPIs) is important in running an effective and profitable dealership. These indicators will help one in better understanding how well dealership is doing as a whole, what areas need improvement, and how efficient each of your departments are.

5 Important Key Performance Indicators for any dealership

Revenue growth.

Revenue per client.

Profit margin.

Client retention rate.

Customer satisfaction.

Aftersales

Many dealerships aftersales department brings in more revenue than sales. Beyond simple stuff like oil changes and changing filters, one have to look at the hourly service rate at theirdealership.

That is why dealers like to push little things that cabin filter change, fuel system injector cleaning, transmission flush, etc. In some cases the hourly labor for the service ways exceeds the cost of the actual part needed.

Exclusive article written by Aqeel Bashir and published in Automark Magazine – February2023 printed edition

MG BRINGS BACK VINTAGE VIBES!

To mark the auspicious occasion of its 99-year-old legacy, MG Pakistan is celebrating by hosting a vintage show displaying an array of classic MG cars from the past each with its own unique story to narrate. This is not just happening in one place. The vintage display is hosted at all MG dealerships across Pakistan.

The grand vintage display will unveil many hidden gems from the past, such as the stellar 1960s MG MGA, MG MIDGET, and MG MGB, along with many other MG heritage cars. Brought forth in a classic MG experiential fashion, these vintage cars represent British origin, timeless designs, and value.

Celebrating its 99-year-old legacy, the brand represents the thrill of motoring life, heritage, and value. This is a testament to its sporty DNA and constant innovation that even today’s MG feels like generations of good times built into its DNA. After all, MG is truly not just a car, it’s an experience.

Furthermore, a series of exclusive events called MG Nights for MG owners will also be happening across MG dealerships in Pakistan.

The event marks the opening of doors of a lifelong relationship with MG owners that aims at creating a positive impact and letting the consumers step into dealerships with just fun on their minds.

General Manager at MG Motor Pakistan, Syed Asif Ahmed said “MG Pakistan is on a mission to revolutionize the automotive industry and to make Pakistan an export market for MG vehicles. The testament to our commitment lies in the fact that we never compromise on safety standards, offer a tremendous global specifications range, and provide a thrilling 3S dealership experience to increase the desirability for consumers.”

Since 1924 MG has stood the test of difficult times and our resolve will see us making a positive impact on the history of Pakistan’s automotive history and the prosperity of the country in general.

  • Press Release