Automark

Gone are the days when Pakistani women would only dream about excelling in life and building a career for themselves. A proud moment for the country as the first-ever Pakistani woman, Amna Mustabeen Baig, has started working at the Supercar Automotive Engineer at Koenigsegg.

Baig holds a Master’s degree from the UK in Business Management and another master’s in Supply Chain Management from Sweden. Baig has more than three years of experience working as an automotive engineer. She has also worked for other well-known Swedish automotive companies such as Volvo Trucks and Scania.

With Baig’s appointment, women’s roles in the automotive industry have been augmented to a great extent.

For the unversed, Koenigsegg Automotive AB is a Swedish manufacturer of high-performance sports cars based in Sweden. Usually, this industry is a male-dominated industry.

Earlier, Farukh Kamran, a young Pakistani graduate from UET, became a part of the Swedish hypercar brand, Koenigsegg.

Courtesy: Daily Pakistan

PKR 220 million for flood relief fund by Atlas Group & Honda

Suzuki Motor Corporation in Japan announced on August 31, 2022 that it will donate 10 million yen to help with the flood disaster in Pakistan.

While Al-Gazi Tractor Limited, CEO met with the Prime Minister Mian Shahbaz Sharif at the PM House and presented a cheque of PKR 22 million for the Prime Minister Flood Relief Efforts. At the occasion, the CEO appreciated the efforts made for the relief for flood affectees.

Additionally, the company in partnership with its shareholders will provide further aid in the shape of medicines, food supplies etc., making the full amount of PKR 100 million.

Pakistan State Oil contributed PKR 10 million for the flood relief activities and PSO employees have contributed an additional approx. PKR 9 million from their salaries to help our brethren in deed.

This current situation in Pakistan has overwhelmed all of the people in the world to donate funds to the flood relief, Hereby some automotive industry companies have donated too. The Auto Industry of Pakistan is trying its best to help who are in need.

The large organizations should take these kinds of initiatives as the government cannot do so in the current situation.

According to study auto financing increased by 19.4% year-on-year in the fiscal year ended June 2022 & similarly gave boost to car sales.

Dear Readers Car sales in June-22 grew 106% YoY and 24% MoM in anticipation of increase in vehicle prices post-imposition of taxes.
Year-on-year increase in auto financing came mainly due to heavy order backlog, on a month-on-month basis, slowdown started to emerge on the back of rising auto financing rates.
Car financing was up only 0.32% month-on-month in June. New budget 2022-23 policies implementation started from July 1st, original equipment makers (OEMs) did not make any significant bookings considering huge dollar inflation & SBP import polies not issuing Letters of Credit (LCs) in compliance with State Bank of Pakistan’s (SBP) instructions to curb imports.

Loan on used car / financing
Buying a used car on loan from bank is a good deal it can reduce borers burden to pay amount upfront. It is obvious that a second-hand car will cost less compared to brand new car, thereafter, the used car loan financing will also be a lesser amount, meaning lesser monthly installments to pay.
When getting a used car, the choice of models isn’t dependent on its current on-road price. The amount you invest in a new car of a particular model can buy you a higher model in the same amount or probably even lesser in case of a second-hand car of the same make. So you may also be able to retain its original value when you intend to resell it in the future.
To get your car on loan, you will also be required to make down payment and pay government taxes as applicable.
Different Banks offer different loan option/ package considering customers profile, since demand of used cars is increasing banks & other financing institutions are introducing optional plans to create ease for customer’s in-accordance to updated SBP PL lending guidelines.

Options offered by Banks on used cars
Buying used cars on residual value, used vehicle up to 9 year can be financed, Minimum markup & insurance rates are being offered on used car by Institutions. Considering recent economic recession some Banks have also started cash loan against pre-owned vehicles as collateral.

Used Car Financing program offered by Assemblers in collaboration with financing institutions.
Toyota &Pak Suzuki in alliance with banks offer New and Used Car financing options for those who wants to own a car. Partnering Banks also offer customer ease of choosing a suitable payment plan.Rumors are that more industry assemblers are working on their Certified used car segment & intend to lunch same in the coming time.

Documentsrequired with regards to SBP PL for financing vehicle.
• Filled Application form
• CNIC copy’s
• 2 passport size photographs (colored)
• Bank Statement/Bank certificates (6 months)
• Recent Salary Slip (3 months)
• Any other documents may be required under the Bank approved policy.

Eligibility
• Minimum income criteria (Monthly installment should be around50% of net per month Income)
• Income segments: Co-applicants (up to 2), Rental Income, Foreign remittance, Saving/Term Certificates
• Age Criteria
o Salaried – min 21 years & max 60 years
o SEB/SEP – min 21 years & max 65 years
o Co-Applicant – min 21 years & max 70 years

Lists of CF Banks in Pakistan*.

1. Bank Alfalah
2. Habib Bank Limited
3. Muslim Commercial Bank
4. Askari Bank Limited
5. United Bank Limited
6. Bank Al Habib
7. JS Bank
8. Meezan Bank
9. Standard Chartered Bank
10. Summit Bank
11. Bank Islami Pakistan
12. Bank of Punjab
13. Bank of Khyber
14. Al Baraka Bank
15. MCB Islamic Bank Limited
16. Faysal Bank
17. Dubai Islamic Bank
18. Allied Bank Limited
19. Habib Metro Bank

ORIX Leasing Pakistan Limited (“OLP”)
OLP Financial Services Pakistan Limited (“formerly ORIX Leasing Pakistan Limited”) was established in July 1986 as a joint venture between ORIX Corporation, Japan and local investors. The Company is listed on the Pakistan Stock Exchange.
OLP is headquartered in Karachi and has 38 branches situated in 35 cities. Its major shareholder is ORIX Corporation Japan having 49.6% shareholding. Established in 1964, ORIX is one of Japan’s leading integrated financial services groups with operations in 37 countries worldwide.
OLP offers value-added financial products and innovative customized services to a wide array of customers throughout Pakistan. The blend of international experience and local expertise acquired over the last 33 years provides OLP a distinctive competitive edge. OLP is the largest SME focused Non-Banking Finance Company in Pakistan.
OLP Consumer Auto Division offers flexible product range suiting specific requirements and financial needs of individual customers. OLP claims that their plans are as easy to understand as road signs.

Salient Features
• OLP Consumer Auto Division offers both leasing and financing facilities of vehicles.
o Straight Leases
o Cash Back Leases
o Step up and Step Down Leases
o Balloon Payment Leases
o Leases with Grace Period
o Financing against vehicles
• An auto lease contract is a non-cancellable contract for a specific period of time, typically from three to five years.
• The lessee will receive the full benefits of all warranties, guarantees, etc., offered by the manufacturers.
• The vehicle is insured by OLP on behalf of the lessee with Pakistan’s leading insurance companies and OLP’s lessees will enjoy the following distinctive features: No deductible amount on the policy, coverage of terrorism, coverage of life insurance, coverage of third party limited liability insurance.
• The auto lease comes with a complementary Tracking Device option.
• Leasing is acceptable within the Islamic modes of financing as fixed rental payments are made.
• OLP Branch Network is present throughout Pakistan.
• OLP Consumer Auto Division can lease almost all types of vehicles ranging from small to large ones.
Eligibility Criteria
Any individual who relates to:
• Business entity from sole proprietorship and partnership to public and private companies.
• Corporate employees from small and medium-sized enterprises to large corporations.
• Self-employed persons such as doctors, engineers, architects, lawyers etc.
• At least 21 years of age at the time of leasing or financing.
• A resident of Pakistan.

In the month of July 2022 Indus Motor Company the assemblers of Toyota vehicles massively increased the prices of all models, the prime reasons explained for this unprecedented increase in prices by the company officials were the consistent decline in the value of Pakistani Rupees against U.S Dollar, increase in taxes and duties. The other reasons were increased in raw material prices and cost of transportation as the fuel prices has also drastically increased in last three months resultantly cost of transportation has also increased.

On the other hand capital value tax – CVT, on 1300 CC and above vehicles is imposed. It may be noted that all original equipment manufacturers OEM are dependent on parts supplier / vendors. These vendors production cost are also tremendously increased. All these factors impacted on OEM’s cost of production. So Toyota forced to increase their product prices. This trend of price increase is followed by the other two big Japanese car assembler’s i.e. Honda and Suzuki. After that all other newly established OEM’s like Hyundai, Kia, Changan RAIL, Hawal etc. etc. followed the same pattern and increased their product prices.

Fortunately from end july till mid August Pakistani rupees recovered by more than 12% in interbank against the U.S Dollar. This is due to Forex inflows from Saudi Arabia and U.A.E. furthermore deal with the I.M.F is confirmed by G.O.P. it seems that rupee now reached at an stable stage. In this circumstances auto assemblers again forced to reduce the prices. Again the first company that announced the reduction was Indus Motors and runner up was Pak Suzuki. The third company was Honda Motor Company. Behind these three giants new entrants were lined up. So Hyundai, Kia, Changan, Cherry, Hawal etc etc are also slashed their prices.

Before this Ping Pong between price increase / decrease, Government took one more step. In May 2022 the ban on CBU imported vehicles was imposed. Even after this Government was still feeling pressure on Forex reserves. So a new mechanism was introduced for establishment of letter of credits for all imports. Now central bank is monitoring and controlling the establishment of L/C, Central Bank allows according to the available quantum of Forex reserves. This practice is causing unnecessary delays in opening L/C’s. In the mid of August 2022 Pakistan foreign exchange reserves have increased by USD 52 million and foreign exchange reserves reached at the level of eight billion US dollar.

Beside this, after much back and forth, the I.M.F has finally announced that they will release funds to Pakistan soon. So the Ministry of Commerce issued SRO 1562(I)/2022 on August 19, 2022, for lifting the ban on luxury item including motor vehicles. But finance minister said that the regulatory duty will be imposed by three times higher than the current level. So practically CBU import will become unviable.

The major outcome of these upheavals, major automakers cut their production volume and vehicle sales fell precipitously in July 2022. According to the latest figures from the Pakistan Automotive Manufacturers Association (PAMA), automakers (PAMA members only) a staggering 58 percent reduction in vehicles sold by Toyota Indus Motor Company (IMC), a 62 percent reduction in sales Pak Suzuki Motor Company (PSMC). Sales at Hyundai Nishat Motors Private Limited (HNMPL) fell by 89 percent during the same period. Hyundai was unable to sell even one unit of the Elantra or Sonata, therefore they continued to be the worst-selling vehicles.

According to some experts, sales will start growing through September 2022. However, manufacturers’ observance of non-production days is what caused the early decline (NPDs). Due to debilitating inflation, price increases, and significant delivery delays, all automakers anticipate a sharp fall in demand in the coming days.

We’re terribly sorry to inform you that there has been a dreadful road accident of Pak Suzuki staff today in early morning of 5 September 2022, when the staff was going on their job to Pak Suzuki assembly plant.

Reportedly, two Hiaces of Pak Suzuki were taking a wrong way at Steel Mill Chowrangi crashed into oil tanker, resulting in 4 deaths and some badly injured, as per the FIR report.

Automark sends sincerest condolences to Pak Suzuki and the people who were involved in this accident and to their relatives and family. May ALLAH protect us all, and give a healthy life. We pray that the injured people get well soon!

On 1st September 2022, the locally assembled Haval H6 underwent lining-off assembly at Sazgar Engineering Works Limited (SEWL) in Lahore.

The ceremony was held at newly build state of the art assembly plant in Lahore, with senior management, company staff and dealers.

Since last year Sazgar imports Haval H6 in CBU condition and market this variant. Production capacity of the plant 24000 variants /annum.

Early this year, the business made the new aboriginal H6 prices, features, and variants public. Sazgar has 12 dealerships across country and more are in pipeline.

However, the prices have significantly increased due to the current inflation.

As per our reliable sources pre book already started while formally booking will be start by end of  end of this month. Deliver will be in 3 to 4 months time.

A price cut for Haval’s SUV is scheduled to take effect from August 19, 2022. Yes, the Haval H6 is the topic at hand, and its price has been cut by up to Rs. 3 lacs.

However, considering the rising fuel prices, few people will favor large gas consumption. Given these elements, H6 now faces competition that is even tougher than before.

What do you think of the Pakistani versions of the Haval H6 that are locally assembled? Tell us in the comments section below.

Pakistan increases the regulatory duty on imported vehicles by 100%

Instead of a complete import ban, the Government of Pakistanhas increased regulatory and additional custom duties earlier this week on a variety of imported vehicles.
The Federal Board of Revenue (FBR) issued SRO 1571(I)/2022, through which it would raise the regulatory tariff rate on imported motor vehicles from 90% to 100%.
Regulatory duties on imported vehicles are applied at a rate of 100% which included the following:

For vehicles in 1000cc to 1300cc category, customers will experience the high estrise in regulatory obligations. Since this is typically a highly price-sensitive sector, the fourfold increase in regulatory duties for the 1000cc to 1300cc category is anticipated to affect overall car imports. In this area, customers search for the greatest offers as an alternative to locally produced goods.

In Pakistan, sales of minivans are rather low, but ATV and SUV buyers are already accustomed to paying more.
To sustain the balance of payments and stop rupee value losses, the government previously banned the import of CBU(Completely Built-Up Vehicles) motor vehicles on May 19, 2022.

However, on August 20, 2022, the government agreed to lift the prohibition due to pressure from the IMF (International Monetary Fund).
The hike in duties may provide local vehicle producers a break as a knock-on effect. The State Bank of Pakistan (SBP) is more likely to abandon its expanded administrative monitoring of completely knocked-down (CKD) kits if Foreign exchange outflows are restricted.

People buy used imported cars as per required with their families. At the same time, used vehicle costs are relatively high, making it quite challenging for customers to afford them during the present economic downturn.

The government’s recently introduced Roshan Digital Apni Car Scheme is exactly what is taking place. According to the program, Non-resident Pakistani can finance a car digitally from anywhere in the world, more easily and at lower rates than Pakistanis who are residents of Pakistan.

The intention is for Pakistanis who are not citizens to purchase more vehicles at home and send more earnings to do so.
If cars are imported from overseas Pakistani people, they pay with foreign exchange, the currency of Pakistan is not going out so why is their high rate of duties on used cars?

The government should consider this matter, and put high rates of duties on the cars which affect Pakistani currency.

People burnt to death and 6 people got critically injured on the predawn of 17th August 2022. The crash occurred when a Daewoo passenger bus rear ended a tanker carrying ethanol and caught fire on the Multan-Sukkur Motorway (M-5).

The mega crash bears an uncanny similarity to an incident back in 2015 when a passenger bus rear ended an oil tanker near Shikarpur, ending 62 lives.

In 2011 again, a bus slammed into an oil tanker in Jamshoro, Sindh, setting off a blazing inferno that gutted both vehicles which killed 32 people and critically injured nine.

All three incidents involved a bus rear ending a tanker. All three incidences occurred around pre-dawn, when the chances of driver micro sleep are at its maximum. The front door in all three busses jammed upon impact and all three busses had no emergency exit in the back. All three had the same tragic results. -busses and Oil tankers is a match made in hell.

Driver fatigue is a common denominator, even reputed companies like Daewoo have little regard of local laws such as ‘Road Transport Worker’s Safety Ordinance 1961’ which allow a maximum 8 hours driving per day, 48 per week, and a mandatory rest period every 4 hours. The violation has never been checked or enforced. Companies dealing with hazardous material like Shell, Total and Mol Pakistanprohibit all logistics movement at night but hazardous chemicals are being transported at night by the unregulated industry and even some industry giants.

Tanker design is another factor. Pakistan OGRA standards require a min 4mm shell thickness and the bumper to be extended at least 15cm beyond the tank to minimize the chances of tank leakage in case of rear end collisions.

According to M. Asfandyar, crash safety research engineer in ADCR, the only crashworthiness research company in Pakistan “Vehicle crashworthiness standards in Pakistan are old and fragmented, companies often fail to see the long-term picture when it comes to investing in safety and bid for short term profits –the government sleeps too. For example, there is no law in the archaic Pakistan motor vehicle rules of 1969 mandating and emergency escape door in busses. It’s not rocket science, nor does it cost much. Ironically, transport companies do not demand it from the manufacturers either. The tragic results are evitable! We shall see a change only when companies realize the cost benefits of safe operations”

Breaking the chain is not a one dimensional, it would require an effort from all sides. The government needs to wake up and realize how outdated its laws are. The transportation industry also needs to realize that such tragedies are preventable and save huge reputational and monetary losses. Effective driver management and safer vehicles is doable and profitable. Until then – history will continue to repeat itself.

By Abdullah Bin Nadeem, ADCR

Lahore – Monday, 27th June, 2022. All is set to enthral the car lovers and popular auto players to exhibit their innovations at the Pakistan Auto Show 2022 (PAPS-22) at the International Expo Centre, Lahore, on the 29th, 30th, and 31st, July 2022, under the theme “MADE IN PAKISTAN.”

The Pakistan Association of Automotive Parts and Accessories Manufacturers, a leading trade body of more than 350 members, is behind this mega event which fascinates the leading auto-players of the auto world.

The well-known official sponsors of this much-awaited mega event, as of now, are MG motors, Indus Motor Company (IMC), Honda Atlas Cars Pakistan Limited (HACPL), Atlas Honda Ltd., (AHL), Al-Haj Automotive (Pvt) Ltd, Pak Suzuki Motor Company Limited (PSMC), and Chevron Pakistan Ltd.

More than 150,000 local visitors show up every year at PAPS to see the renowned companies from Japan, Germany, Korea, China, France, Turkey, Thailand, Taiwan, England, USA, UAE, and Sri Lanka; while over four hundred international visitors, including 150 global buyers and delegations too visit this bustling Auto Show.

The diverse categories of exhibitors include Passenger Cars, Trucks, Buses, Tractors, Rickshaws, Motorcycles, Auto parts Manufacturers, Services providers, Machinery makers, Toolmakers, Antique cars, and Heavy motorbikes, along with related service industries like accessories, tracking & insurance, etc. The Chairman of PAPAAM, Mr Abdur Razzaq Gauhar, stated, “With the exponential growth of auto and related industries in Pakistan, the local consumers and international investors are showing keen interest in the automotive sector.” PAAPAM is seeing the growth potential of local industry and, keeping in mind the needs of consumers, provides a platform, Pakistan Auto Show, to display their products to the masses and have B2B and B2G meetings.

The Pakistan Auto Show 2022 (PAPS-22), the country’s largest exhibition of the Auto Industry, will take place at the Expo Centre in Lahore on the 29th, 30th, and 31st of July 2022. The ‘Pakistan Association of Auto parts and accessories manufacturers (PAAPAM), representing over 350 large, medium & small auto part industries from all over Pakistan, has taken a noteworthy initiative. The theme of this year’s PAPS show is “MADE IN PAKISTAN.”

• PRESS RELEASE

Karachi, 14.06.2022 – Audi in collaboration with SIEMENS today unveiled Pakistan’s first and only Ultra-Rapid DC Charging Station equipped with Siemens SICHARGE D series chargers with power up to 160kW in Karachi.

“I am particularly pleased to be present today at the inauguration of this example of brand new German innovation. The future is electric – we are learning that more and more today in times of climate change and global warming. However, electro-based mobility also requires a corresponding infrastructure. I am pleased that another step in this direction is being taken here today.” said Germany’s Ambassador to Pakistan Hon Bernhard Schlagheck.

Speaking as the chief guest on the occasion, Barrister Murtaza Wahab, Advisor to CM Sindh for Law, Spokesperson for the Government and Administrator Karachi (KMC), commented: “Karachi must also become a metropolis geared towards the new world of transportation with electric vehicles, which will vastly improve emissions in our city by reducing exhaust fumes from fossile fuels. We need to build up an infrastructure of charging stations. Germany’s innovative technology can lead us in this direction. Let us plug-in Karachi into its electrical future!”

Audi is driving its transformation as a provider of sustainable premium mobility. The brand plans to ramp up its efforts by 2025 with a wide range of more than 20 fully electric models. The key to its success and the crux of this transformation is the availability of charging infrastructure. Together with LIBRA, this Ultra-Rapid DC Charging Hub is the start of significantly expanding charging infrastructure in Pakistan. CEO of Premier Systems Syed Arshad Raza said, “As announced, 2020 marked the start of Audi in Pakistan’s major electric offensive. We successfully launched the e-tron model range and are already following that up with the next model, the dynamic and fascinating e-tron GT. We can proudly say that Audi is the number #1 brand of any car manufacturer in Pakistan leading this transformation. Audi is also making an important contribution to the urgently needed expansion of the charging infrastructure, and the LIBRA Charging Hub is the first step in achieving this goal”.

Commenting on the launch of LIBRA Charging Hub, CEO of Siemens Pakistan Mr. Markus Strohmeier said “We need significantly more charging points in Pakistan to cater to the growing requirements of electric vehicles. For that reason, stakeholders including policy makers, investors and power utilities must continue their efforts in the coming years. Siemens SICHARGE D is a high-power charger using the latest technology designed to enable cities, businesses, and individuals to make the most of what Electric Vehicles have to offer now and, in the years, to come.”

“The LIBRA Charging Hub with Siemens’s Ultra-Rapid charger addresses future peak demands and the lack of charging opportunities in Karachi,” said Abdul Haseeb Khan, owner of LIBRA Charging Hub.

Pakistan approved an ambitious National Electric Vehicles Policy, with targets and incentives aimed at seeing electric vehicles Capture 30% of all the passenger vehicle and heavy-duty truck sales by 2030, and 90% by 2040. It sets even more ambitious goals for two- and three-wheelers and buses; 50% of new sales by 2030 and 90% by 2040. The world is now moving towards electric vehicles and Pakistan would follow suit. The technology will help cut the demand for oil and Pakistan could save about Rs2 billion annually. In addition, pollution will reduce by up to 70 percent.

Venue: Libra Charging Hub, near Fawwara Chawk

• Press Release