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Pakistan Aerospace Council Charts Course for High-Tech Export-Oriented Future

The Pakistan Aerospace Council (PAeC) convened its Annual General Meeting (AGM) on December 28th, 2024, at Trojans Head Office in Islamabad. The gathering brought together prominent figures from Pakistan’s burgeoning aerospace and high-tech sectors, fostering a dynamic environment for discussions, collaborations, and strategic planning to propel the industry forward.

Focus on High-Tech Export & Private Sector Empowerment

Air Marshal (Rtd) Farhat Hussain Khan, CEO of ADIC, NASTP Kamra, and the event’s Chief Guest, underscored the critical need to empower the private sector and minimize reliance on government-led initiatives to ensure sustainable growth within Pakistan’s aerospace sector. He emphasized the importance of:

  • Professionalizing the Civil Aviation Authority: Streamlining regulations and fostering a conducive environment for private sector participation.
  • Indigenous Avionics Development: Prioritizing R&D in cutting-edge avionics technologies to enhance aircraft performance and competitiveness.
  • Streamlining Bureaucratic Processes: Reducing administrative hurdles and fostering a more agile and responsive ecosystem for innovation.

Drawing inspiration from successful models like Turkey and China, Air Marshal Khan highlighted the importance of strategic partnerships and leveraging global best practices to accelerate the growth of Pakistan’s aerospace and high-tech industries.

Outgoing President Emphasizes Export-Oriented Strategy

In his farewell address, Dr. Haroon Javed Qureshi, outgoing President of PAeC, expressed gratitude for the support and trust of the executive members. He urged aerospace and defense companies to aggressively pursue export markets to overcome challenges and showcase Pakistan’s advanced manufacturing capabilities to the world. Dr. Qureshi extended his best wishes to the incoming executive committee and reaffirmed his commitment to supporting PAeC’s continued growth and success.

“Power of the Flock” – A Call for Unity and Shared Vision

Mr. Imtiaz Rastgar, Founder Convener of PAeC, emphasized the “Power of the Flock” – a collective approach that prioritizes unity, shared vision, and collaborative efforts as cornerstones for advancing Pakistan’s aerospace and high-tech sectors. He advocated for a dedicated platform for dialogue with policymakers to address industry-specific challenges and foster a supportive regulatory environment. Mr. Rastgar stressed the importance of transitioning to system-driven business models to achieve global recognition and sustainable growth.

Leveraging Human Capital and Public-Private Partnerships

Convener of PAeC, Mr. Mansoor Malik, expressed gratitude for Mr. Rastgar’s foundational role in establishing PAeC. He emphasized the critical importance of leveraging Pakistan’s pool of highly skilled aeronautical engineers and technicians to drive private sector growth. Mr. Malik outlined PAeC’s vision to utilize existing public sector infrastructure and skilled human resources to foster a thriving aerospace ecosystem. He urged the new leadership to ensure a smooth generational transition to ensure the continued progress and sustainability of the industry.

Key Industry Leaders and Stakeholders in Attendance

The AGM was attended by several prominent figures, including Dr. Mohammad Mujahid, Rector of PAF-IAST; Mr. Ilyas Malik of Fazal Steel; Air Cdr Waqar Haider; Mr. Noman Waseem; Ms. Sarah Qureshi; Mr. IftekharYezdani; Mr. Asif Ahmed; and Mr. Umair Aslam of Global Defence Insight. The PAeC leadership team, including Dr. Haroon Javed Qureshi, President; Mr. Asif Jah, Secretary General; Engr. Tanveer Ahmed, Treasurer; Mr. Imtiaz Rastgar, Founder Convener; Engr. Mansoor Malik, Dr. Javaid Ahsan Bhatti, Mr. Inayat Ali Shah, Javaid Anwar, and representatives from Teresol and AKSA Solutions, were also present.

Looking Ahead: A Vision for 2025 and Beyond

The meeting provided a comprehensive review of PAeC’s significant achievements and milestones throughout the year. It also served as a platform for members to share innovative proposals and strategies for advancing the aerospace sector. The council outlined a strategic vision for 2025, focusing on:

  • Accelerating Collaboration: Fostering stronger partnerships between industry, academia, and government.
  • Resolving Industry Challenges: Addressing critical issues such as access to finance, skilled workforce development, and regulatory hurdles.
  • Driving Innovation: Promoting R&D in cutting-edge technologies, including artificial intelligence, unmanned aerial vehicles, and space exploration.

New Leadership and Advisory Board Appointed

The AGM concluded with the election of Mr. Shahid Rafiq as President, Mr. Inayat Ali Shah as Vice President, and Dr. Javiad Ahsan Bhatti as Secretary General of PAeC. The establishment of an Advisory Board further strengthens the organization’s leadership. These appointments and developments augur well for the future of Pakistan’s aerospace community as the sector continues its dynamic growth and ascends to new heights.

Dysin Automobiles Limited

Dysin Automobiles Limited (DAL), established in June 2013, is a public limited company and the exclusive authorized dealer of China National Heavy Duty Truck Company (CNHTC), commonly known as SINOTRUK, in Pakistan .As part of the Dynamic Group of Companies, DAL imports, assembles, and market a wide-range of commercial vehicles, including Rigid Trucks, Prime Mover, Dump Truck and special vehicle chassis under the Sinotruk brand. Initially, from 2013 to mid-2016, DAL imported Completely Built Units (CBUs) for the local market after getting positive feedback, the company transitioned to local assembly by partnering with Adam Motor Company Limited in July 2016, utilizing their facility in Bin Qasim, Karachi, for Semi Knocked down (SKD) units

DAL’s headquarters are located in Lahore, with a nationwide presence that includes four regional offices. The company supports its operations with a robust dealer network comprising well-established 3S(Sales, Service, Spare parts) dealers across Pakistan. In addition to vehicle sales, DAL offers a comprehensive range of services, including vehicle inspections, after-sales support, pre-delivery and 24/7 services to their customers.

DAL’s CKD Plant: A Step Toward Growth

Dysin Automobiles Limited (DAL) has taken a monumental step in transforming Pakistan’s commercial vehicle industry through its Completely Knocked Down (CKD) assembly operations. Established in partnership with Sinotruk, one of the world’s leading heavy-duty truck manufacturers, DAL’s CKD plant is a shining example of innovation, local industry support, and economic progress.

Establishing the CKD Plant

In July 2016, DAL transitioned from importing Completely Built Units (CBUs) to locally assembling vehicles in Pakistan. Partnering with Adam Motor Company Limited, DAL set up its CKD plant in Karachi. This facility has since become the cornerstone of DAL’s operations, enabling the company to produce vehicles tailored to the specific needs of the Pakistani market.

The CKD plant’s will not only reduces the overall cost of production but also shortens delivery times and ensures adherence to high-quality standards. The plant has the capacity to produce a range of commercial vehicles, including heavy-duty trucks, light-duty trucks, and specialized vehicles for various industrial applications.

Advancing Local Industry

By establishing the CKD plant, DAL has made significant contributions to Pakistan’s industrial growth. The facility has:

  • Created Jobs: Employing a skilled and semi-skilled workforce, the plant has generated numerous job opportunities in the region.
  • Promoted Skill Development: Workers and engineers receive training to operate advanced machinery, fostering technical expertise.
  • Import Substitution: Local Assembly of trucks will reduce reliance on fully imported vehicles.
  • Technology transfer: The transfer of advanced manufacturing technology from China to Pakistan fosters innovation.
  • Self-Reliance: By assembling trucks domestically, Dysin Automobiles helps reduce Pakistan’s dependency on foreign-made vehicles, promoting industrial self-sufficiency.
  • Cost Efficiency: Locally assembled trucks are most cost effective, making them affordable for local businesses and enhancing competition.
  • Overall Industrial Growth: Local assembling of trucks encourages the development of ancillary industries such as local parts suppliers, contractors, logistics, and maintenance services.

Additionally, the CKD setup allows for technology transfer from Sinotruk, enhancing the technological capabilities of the local automotive industry.

Meeting Market Demands

The CKD plant’s output caters to the diverse needs of Pakistan’s growing economy. From heavy-duty trucks for infrastructure projects to light-duty vehicles for urban logistics, the plant’s production capabilities ensure that DAL can serve a broad customer base. The ability to customize vehicles during assembly further enhances the value proposition for clients across various industries.

Nationwide Impact

The CKD plant is part of DAL’s larger strategy to establish a robust network across Pakistan. With its headquarters in Lahore and regional offices nationwide, DAL supports its customers with comprehensive after-sales services, including maintenance and spare parts availability. The plant’s operations integrate seamlessly with DAL’s 3S (Sales, Service, Spare parts) dealerships, ensuring that customers receive unmatched support.

Looking Ahead

Dysin Automobiles Limited’s CKD plant is more than just a manufacturing facility; it is a symbol of progress and innovation. As DAL continues to expand its operations, the plant will remain at the forefront of driving industrial growth in Pakistan. The company’s focus on local production, job creation, and environmental sustainability positions it as a leader in the country’s commercial vehicle sector.

Through its CKD plant, Dysin Automobiles Limited has demonstrated the potential of local assembly to transform industries and economies. The facility not only strengthens DAL’s market position but also underscores its commitment to contributing to Pakistan’s development. With its forward-looking approach, DAL is set to lead the way in shaping the future of transportation in the country.

Published in Automark’s January-2025 printed and digital edition

Addressing Consumer Challenges and Building the EV Ecosystem in Pakistan

Electric vehicles (EVs) are increasingly recognized as a sustainable and efficient alternative to internal combustion engine (ICE) vehicles worldwide. They reduce dependency on fossil fuels, lower greenhouse gas emissions, and offer cost advantages in terms of fuel and maintenance. For Pakistan, transitioning to EVs is critical to achieving environmental goals, reducing its oil import bill, and addressing urban air pollution.

However, despite the government’s ambitious Electric Vehicle Policy 2025-2030, which envisions 30% EV penetration in passenger vehicles and the installation of 3,000 EV charging stations by 2025, progress has been slow. This article explores the challenges that hinder EV adoption in Pakistan and proposes practical solutions to foster a supportive ecosystem.

Challenges Hindering EV Adoption in Pakistan

1. Limited EV Penetration and Utilization

Currently, there are fewer than 2,000 EVs on Pakistan’s roads, with only a handful of operational charging stations. This low adoption rate discourages investment in charging infrastructure as operators struggle to achieve profitability. It mirrors the decline of compressed natural gas (CNG) stations, which faced similar utilization challenges.

2. High Upfront Costs of EVs

EVs in Pakistan are priced approximately 1.6 times higher than their ICE counterparts, primarily due to high import duties, lack of local manufacturing, and absence of government subsidies. This cost disparity reinforces the perception that EVs are a luxury item rather than a practical choice for middle-income households.

3. Inadequate Charging Infrastructure

  • Home Charging Limitations:
    Many urban residents live in apartments or multi-story buildings without designated parking or access to electrical outlets for charging. This makes overnight home charging—a cost-effective and convenient option—unavailable for a significant portion of the population.
  • Community and Public Charging:
    Public charging networks in Pakistan are underdeveloped. Existing stations often face operational issues, with an estimated 40% being non-functional. These challenges exacerbate range anxiety and the fear of running out of charge without access to a nearby station.
  • Lack of Real-Time Information:
    Consumers often face difficulty locating functional charging stations due to the absence of a centralized system providing real-time updates on station availability, pricing, and functionality.

4. Policy and Regulatory Gaps

Pakistan’s EV policies are fragmented and lack cohesive implementation. The absence of region-specific policies, consumer-focused incentives, and mandatory regulations for infrastructure development hampers progress.

5. Skepticism About Viability

The slow pace of EV adoption has led to doubts about the profitability of investing in charging stations. The challenges faced by CNG station operators in the past fuel further skepticism.

Proposed Solutions to Accelerate EV Adoption

1. Expand Charging Infrastructure

  • Home and Multi-Story Building Solutions:
    • Introduce mandatory regulations for new buildings to include EV charging infrastructure.
    • Retrofit existing residential complexes with shared charging facilities, with implementation costs borne by users but ensured by building owners.
  • Community Charging:
    • Mandate that at least 10% of parking spaces in commercial areas, malls, workplaces, and residential complexes have EV chargers.
    • Convert underutilized petrol and CNG stations into EV fast-charging hubs to optimize existing infrastructure.
  • Public Charging Networks:
    • Develop a centralized mobile app offering real-time updates on charging station availability, pricing, and status. This app should integrate with vehicle navigation systems for seamless route planning.

2. Introduce Government Incentives

  • Financial Support for EV Buyers:
    • Offer subsidies, reduced registration fees, and low-interest financing options to make EVs more affordable.
    • Waive or reduce customs duties on EV imports until local manufacturing becomes viable.
  • Support for Charging Infrastructure:
    • Provide tax incentives, grants, or subsidized electricity rates for businesses investing in charging stations.
    • Ensure a consistent electricity supply to charging networks, particularly in high-demand urban areas.

3. Enhance Policy and Regulatory Framework

  • Streamlined EV Policies:
    • Develop a comprehensive EV roadmap integrating federal, provincial, and local government initiatives.
    • Include stakeholder input from automakers, energy providers, urban planners, and consumer groups in policy formulation.
  • Regulated Pricing Mechanisms:
    • Set a cap on charging prices to ensure affordability and uniformity.
    • Introduce time-based pricing to encourage off-peak charging.

4. Raise Awareness Through Education Campaigns

  • Launch mass campaigns to educate consumers about the environmental and economic benefits of EVs.
  • Address misconceptions, such as EVs being unreliable or overly expensive, by highlighting long-term cost savings.

5. Leverage Increased Electricity Usage to Tackle Circular Debt

The adoption of EVs can contribute to alleviating Pakistan’s Independent Power Producer (IPP) circular debt, a chronic issue stemming from low electricity consumption and payment defaults. With increased electricity demand from EV charging, power plants will be compelled to produce more electricity, ensuring consistent operations and payment of dues.

A portion of the electricity costs will be borne by EV owners and charging station operators, creating a new revenue stream for utilities. This increased utilization of power generation capacity can enhance cash flows for IPPs, reducing circular debt and benefiting the broader energy sector.

6. Learn from Global Best Practices

Countries with successful EV adoption rates offer valuable lessons for Pakistan:

  • Norway: Legislation mandates EV charging facilities in residential and community areas.
  • Netherlands: Local governments collaborate with private companies to expand charging networks.
  • China: Aggressive government support through subsidies and large-scale infrastructure development has positioned it as a global leader in EV adoption.

A Holistic Approach to Pakistan

To transform its EV landscape, Pakistan must adopt a multi-pronged strategy:

  • Focus on consumer-centric policies and incentives to build trust in EV technology.
  • Prioritize the development of a reliable charging infrastructure to address range anxiety and operational challenges.
  • Leverage existing resources and infrastructure to reduce costs and accelerate implementation.
  • Use the enhanced electricity demand from EVs as an opportunity to address the financial health of the power sector.

The government must align its goals with the needs of all stakeholders, ensuring that policies are practical, scalable, and inclusive.

Key Takeaways

Pakistan stands at a pivotal juncture in its journey toward sustainable mobility. By addressing challenges such as high costs, inadequate infrastructure, and fragmented policies, the country can pave the way for a cleaner, greener future.

A robust EV ecosystem is not just an ambition—it is a necessity for Pakistan’s economic and environmental sustainability.

This exclusive article has been published in Automark’s January-2025 printed and digital edition. Written by Asif Mehmood

The Key to Aftersales Success – Understanding Service Retention Rate

Wishing all automotive professionals, enthusiasts, and Automark members a year 2025 marked with collaboration, resilience, and success as work to redefine the future of transportation. To innovation, progress, and drive the world forward—Happy New Year!

As we accelerate into 2025, the automotive industry stands at the forefront of transformative innovation and sustainable practices. The dawn of electric mobility, self-driving capabilities, and green manufacturing waits all in 2025.

The promise will be for a future of technology that walks hand-in-hand with environmental stewardship. Here’s to a transformative opportunity for the automotive industry’s visionary engineers, designers, and leaders whose efforts will shape the next generation of mobility. As we move ahead, let us embrace the principles of sustainability, innovation, and collaboration. We can achieve milestones that will redefine transportation and contribute to a cleaner, smarter, and more connected world. EV adoption is expected to rise with improved battery technology, expanded charging infrastructure, and government incentives.

Automakers will release more affordable, longer-range EVs to make electric mobility accessible. Autonomous vehicles in Level 4 and Level 5 will gain further ground in 2025, with pilot programs opening up to more urban settings. Advanced driver-assistance systems will become the norm, boosting safety and convenience. A strong focus on eco-friendly materials, energy-efficient manufacturing processes, and circular economy principles will also be strengthened. Carbon-neutrality goals will continue to challenge manufacturers to look for innovative ways to minimize emissions throughout the value chain.

The industry will also continue investing in upskilling and reskilling programs to prepare the workforce for advanced technologies and AI-driven systems. Acute collaboration with academia and training programs will ensure the next generation of automotive professionals will be prepared to lead transformation.

Let’s understand the key performance indicators critical to assessing performance, efficiency, and profitability of Aftersales Service operations in the automotive industry. A strong set of KPIs will help dealerships and service centers optimize processes, enhance customer satisfaction, and boost revenue. Monitoring and optimizing aftersales service KPIs is necessary for driving profitability, customer satisfaction, and long-term business success. Focusing on key metrics such as service retention, first-time fix rates, and workshop efficiency can turn after-sales operations into a reliable revenue stream for dealerships. A data-driven approach not only fosters loyalty but also ensures competitiveness in a rapidly evolving automotive industry.

In last month’s article on Service Absorption Rate (SAR), published in Automark Magazine, we explored the financial resilience of aftersales operations and its pivotal role in sustaining automotive dealerships. Earlier, the Fix It Right principle was highlighted as a cornerstone of operational excellence.

When these two concepts are interlinked, they form a robust strategy for ensuring profitability and customer satisfaction in the automotive aftersales segment, Service Absorption Rate (SAR) represents the percentage of a dealership’s fixed operating expenses covered by profits from aftersales services (service, parts, and accessories). A high SAR reflects a dealership’s ability to remain profitable even during fluctuations in vehicle sales. The intersection of Service Absorption Rate and Fix It Right principles demonstrates the power of embedding financial metrics with customer-centric practices. By striving toward operational efficiency and prioritizing customer satisfaction, dealerships can double their advantage: financial stability, and sustained customer loyalty.

As these concepts evolve, they will keep on being the benchmarks of excellence in the automotive after-sales industry, this month’s editions of Automark Magazine, let’s understand the Service Retention rate.  The Service Retention Rate (SRR) is not just a metric. It is a reflection of how well a service center or dealership meets and exceeds customer expectations. By focusing on quality, transparency, and customer-centric initiatives, businesses can enhance retention rates, driving long-term profitability and customer loyalty. The Service Retention Rate is the percentage of customers who return to a dealership or service center for repeat maintenance or repair services after their initial visit. It is a critical performance indicator in the aftersales segment, reflecting customer loyalty, satisfaction, and the effectiveness of retention strategies.

The formula for the computation of the Service Retention Rate:

Service Retention Rate (%) = (Number of Returning Customers / Total Number of Customers) x 100

Returning Customers: Those customers who come for service or repair within a stipulated period.

Total Customers: All customers serviced during the same period

The Service Retention Rate (SRR) is one of the most potent metrics to determine the success and sustainability of aftersales operations in the automotive industry. Dealerships can achieve higher retention rates through quality, convenience, and customer-centric strategies. Thus, investment in SRR improvement is not just a matter of financial returns but also building long-term relationships that can help to develop trust and brand advocacy.

Factors that Affect Service Retention Rate: Several interrelated factors influence the Service Retention Rate (SRR), which is vital for keeping customers satisfied, loyal, and returning for regular service. By focusing on providing high-quality service, creating a positive customer experience, using technological progress, offering competitive pricing, and maintaining transparency and trust, automotive businesses can raise their SRR and keep customers for life. Ultimately, a high SRR contributes to profitability, customer loyalty, and a reputation in the long run in the automotive industry.

Quality of Service: A Pillar of High Service Retention Rates: The quality of service offered at a dealership or service center is one of the key factors that determine the Service Retention Rate (SRR). Good quality service ensures customers find trust in the provider for value and are incentivized to return for more when needs arise again. Below, read further into how the actuality of service quality drives retention rates and ways to build its potential. Experienced, manufacturer-certified technicians who can cover regular maintenance and perform detailed repairs. Training programs regarding newer technologies, like electrical cars and ADAS advanced driver-assistance systems. The Dealership / Repair workshop shall use only authentic, manufacturer-approved parts for the vehicle’s reliability and longevity.

First-Time Fix Rate: ensuring that repairs and maintenance are done correctly the first time. Quality checks and audits regularly to avoid errors. A good service quality directly determines the SRR as customers will come back trusting you, feeling loyal, and having a good experience at your workshop. By focusing on qualified technicians, authentic parts, timely delivery, and open communication, an automotive service center will have high retention rates and build long-term relationships with its customers. In a competitive market, service quality delivered is the key differentiator to drive immediate and long-term success.

Customer Experience: The Heart of Service Retention: Customer experience (CX) is one of the most important factors that drive the Service Retention Rate (SRR). It includes every interaction a customer has with the dealership or service center, from initial contact to the completion of service. A positive experience fosters trust, loyalty, and a willingness to return for future services. Providing detailed explanations of diagnostics, repair processes, and costs, meaning to say have clear communication with customers. Customer experience is not just about providing good service; it’s about creating memorable and seamless interactions that exceed expectations.

A positive experience builds trust, drives loyalty, and encourages repeat business, significantly boosting the Service Retention Rate (SRR). By focusing on convenience, transparency, personalization, and continuous improvement, service centers can ensure customers return time and time, making CX a cornerstone of aftersales success.

Pricing and Offers: The Value Proposition in Service Retention: Pricing and offers are essential factors that determine the SRR. Customers expect value for money in terms of quality service, and well-crafted promotional offers can persuade them to come back for future needs. The key is finding the right balance between competitive pricing and profitability to sustain loyalty and improve the overall after-sales experience. Prices must be benchmarked against the competition, including independent garages and third-party service providers.

Discounts or packages tailored to individual customer profiles, such as loyalty rewards or age-based discounts for older vehicles. Bundled maintenance packages (e.g., oil change, tire rotation, and inspection) at a discounted rate to encourage repeat visits. Running targeted offers during specific times of the year, such as pre-winter vehicle checks or summer road trip packages. Points-based systems in which customers collect rewards for return visits to be redeemed against future services or accessories. Pricing and offers are much more than a monetary incentive. They show the value of a service center to its customers.

Maintaining competitive, transparent pricing along with a good design in promotional strategies helps dealerships enhance customer loyalty and thus increase the SRR. This helps customers gain satisfaction while increasing long-term profitability and growth in the fiercely competitive market of automotive after-sales.

Technological Integration: Redefining Retention in Automotive Services: This is now a hallmark element in affecting the SRR for the automobile industry. Employing advanced technologies, systems, and processes improves efficiency and personalizes services while adding to the satisfaction of a customer; hence, a key aspect of retention. A detailed elaboration is given on how technological innovation affects SRR and what service centers can do for effective incorporation of innovations in the customer car business. Appointment booking via mobile apps, websites, or service portals is also provided at the client’s discretion. The technological assimilation into the automotive after-sales arena brings forth unprecedented possibilities to enhance SRRs.

By accepting digital tools and processes, service centers can provide outstanding customer experience, proactive maintenance, and solutions customized for a particular vehicle. While there are challenges, the strategic implementation of technology leads to long-term customer loyalty and sustained growth in the competitive automotive market.

Effect of Brand Perception on Service Retention Rate (SRR): A good brand reputation makes customers return for services instead of looking elsewhere. A good brand perception develops a relationship of trust between the customer and the service center. The chances of return service are higher if customers trust that the brand will provide reliable, transparent, and quality service. Brand perception is a vital element in shaping the Service Retention Rate (SRR).

A positive perception encourages customers to return, fosters loyalty, and ensures they choose the service center over competitors. Service providers need to focus on consistent quality, transparency, personalized experiences, and continuous engagement to build a strong brand that not only attracts new customers but also retains existing ones for the long term. In this way, automotive businesses can drive customer satisfaction, improve service retention, and ensure sustainable growth.

Takeaway from this article:

Service Retention Rate (SRR) is a critical metric for the long-term success and sustainability of any automotive business, particularly in aftersales service. A high SRR signifies that customers are satisfied with the service provided, trust the brand, and are likely to return for future needs. This, in turn, leads to increased profitability, stronger customer loyalty, and a competitive advantage in a crowded market. Other elements determining SRR are the level of service, customer satisfaction, technology, price, and perception of the brand.

Therefore, if superior services are offered in a very personalized way, at very competitive prices, and on more efficient technologies, the level of SRR for the automotive business can be greatly improved. In essence, service retention is not just about a repeat visit but also to build long-term relationships between the two parties involved built upon trust, transparency, and value. Businesses that work on enhancing their SRR can expect to have stronger customer loyalty, better word-of-mouth referrals, and a more stable revenue stream. Therefore, prioritizing SRR should be a key focus for any automotive service center looking to sustain growth and success in the ever-evolving market.

Navigating the Crossroads: Balancing Growth and Fairness in the Evolving Automobile Landscape

Dear Readers the automobile industry, an engine of economic progress and technological innovation, finds itself at a pivotal juncture. Established automobile assemblers and their associated vendors, who have spent billions on localization, plant setup, and human resource training, may be observing a shift in regulatory priorities favoring new ventures. Such initiatives might aim to invigorate competition and stimulate growth, they also raise pertinent questions: Are regulators inadvertently sidelining the pioneers who laid the groundwork for industrial development? And if so, what does this mean for the broader ecosystem that thrives on their contributions?

Investments of Established Players: A Foundation for Growth

The contributions of entrenched automobile assemblers and vendors are monumental. These organizations have invested substantial resources in setting up state-of-the-art manufacturing facilities. Localization, in particular, has been a cornerstone of their strategies, enabling them to:

  1. Reduce Costs: By sourcing materials and components locally, companies have mitigated the impact of currency fluctuations and import duties.
  2. Build Expertise: Localization fosters a skilled workforce adept at managing complex manufacturing processes.
  3. Boost the Economy: Local vendors benefit from the trickle-down effects, creating jobs and driving regional development.

Such investments are not confined to physical infrastructure. The human element plays a pivotal role. Established players have devoted years to training employees, nurturing technical and managerial talent that aligns with global standards. These efforts have collectively positioned the industry as a competitive force in international markets.

Challenges Posed by Regulatory Shifts

While the rationale behind prioritizing new entrants may stem from a desire to foster innovation, diversify the market, and encourage competition, it also introduces several challenges for established firms:

1. Financial Pressure

Investments by vendors in localization related parts and plant setups by assemblers are often recouped over decades. If market dynamics shift too abruptly, established players may find it difficult to achieve the projected return on investment. This is particularly concerning when newer ventures are given incentives that incumbents did not receive during their formative years.

2. Market Share Erosion

New ventures, backed by favorable policies, might gain a competitive edge. This could result in a loss of market share for existing companies, disrupting their economies of scale and leading to increased unit costs.

3. Workforce Implications

A decline in the fortunes of established players can have ripple effects on employment. Vendors reliant on these companies may also face reduced orders, affecting their financial stability and workforce.

4. Supply Chain Disruption

The automobile industry thrives on a well-oiled supply chain. Disrupting this equilibrium to accommodate new ventures can strain relationships between assemblers and vendors, causing inefficiencies and delays.

Regulatory Perspectives: A Balancing Act

From a regulatory standpoint, nurturing new ventures is essential for long-term growth. However, this must be balanced against the risk of alienating established players. Policymakers need to consider:

1. Historical Contributions

Regulations should reflect an appreciation for the groundwork laid by incumbents. This includes acknowledging their role in developing a skilled workforce, fostering innovation, and contributing to national economic growth.

2. Level Playing Field

Incentives for new ventures should not create an uneven playing field. Instead, policies should encourage fair competition, ensuring that all players—old and new—can thrive.

3. Collaborative Ecosystem Development

Rather than focusing exclusively on new entrants, regulators can create policies that promote collaboration. Established players and new ventures can work together to enhance technological capabilities, optimize supply chains, and share best practices.

Vendor Perspectives: An Overlooked Stakeholder?

The ripple effects of regulatory changes on vendors deserve special attention. Local suppliers form the backbone of the automobile industry, and their fortunes are intricately tied to those of assemblers. If established companies face challenges, vendors may encounter:

  • Order Reductions: A decline in production volumes for assemblers can directly impact vendor revenues.
  • Investment Hesitancy: Vendors may hesitate to invest in new technologies or capacity expansions if market stability is in question.
  • Employment Concerns: Many vendors operate with thin margins and rely on consistent orders. Disruptions can lead to layoffs, affecting thousands of workers.

Strategies for Harmonizing Growth and Stability

To address these concerns, regulators and industry players can adopt a multi-pronged approach:

1. Transparent Policy Frameworks

Policies must be transparent and predictable, allowing all stakeholders to plan their investments and operations effectively. This includes:

  • Clear guidelines on incentives for new ventures.
  • Recognition of the contributions of established players.
  • Mechanisms for periodic consultation with industry stakeholders.

2. Incentivizing Innovation Across the Board

Rather than favoring specific entrants, incentives can be structured to reward innovation. Established players investing in advanced manufacturing techniques or sustainable practices should receive support comparable to that offered to newcomers.

3. Strengthening Vendor Ecosystems

Special attention should be paid to vendors. Initiatives such as low-interest loans, skill development programs, and technology grants can enhance their resilience, ensuring they can adapt to changes in the market.

4. Encouraging Public-Private Partnerships

Collaboration between the government and industry can yield mutually beneficial outcomes. For instance, public-private partnerships can:

  • Fund research and development initiatives.
  • Develop shared infrastructure, such as testing facilities.
  • Promote exports through joint marketing efforts.

5. Continuous Stakeholder Engagement

Creating platforms for dialogue between regulators, assemblers, vendors, and other stakeholders can help preempt conflicts and foster a sense of shared purpose.

The Road Ahead

The evolving priorities of regulators in the automobile industry present both opportunities and challenges. While the emphasis on new ventures can stimulate competition and drive innovation, it is imperative to ensure that the contributions of established players are not overshadowed. These companies have been the bedrock of the industry, shaping its trajectory and contributing significantly to economic and social progress.

A balanced approach—one that harmonizes the aspirations of new entrants with the interests of incumbents and vendors—is essential for sustainable growth. Policymakers, industry leaders, and stakeholders must work collaboratively to navigate this transition, ensuring that the industry remains a robust engine of progress for decades to come. In doing so, they will not only preserve the legacy of past achievements but also lay the groundwork for a vibrant and inclusive future.

This exclusive article has been published in Automark’s printed and digital edition. Written by Aqeel Bashir

Osamu Suzuki, visionary leader behind Suzuki Motor’s global expansion, dies at 94

Former Suzuki Motor Corp. Chairman, Osamu Suzuki, passed away on December 25, 2024, the automaker has confirmed. He was 94. The automotive icon died of lymphoma, Suzuki confirmed in a statement, leaving a strong legacy for the global giant with major operations in India. Osamu Suzuki is credited for spearheading the brand’s entrance into the Indian market, which now contributes the largest share of Suzuki’s global sales.

Under his guidance, Suzuki Motor Corporation expanded significantly. When he first became president in 1978, the company had around 300 billion yen in sales. By 2006, that number had grown to over 3 trillion yen. Suzuki also played a crucial role in establishing a dominant presence in India through its subsidiary Maruti Suzuki, which controls a significant share of the Indian car market.
Despite his many successes, Suzuki’s tenure was not without challenges. In 2016, the company faced a scandal over improper fuel efficiency testing methods. Following this incident, he stepped down as CEO but remained as chairman until 2021.

MG Launches Pakistan’s First Locally Assembled Plug-in Hybrid

MG Motor has achieved a significant milestone with the launch of its locally assembled MG HS PHEV, TRUE HYBRID ELECTRIC. Led by Syed Asif Ahmed, General Manager – Marketing Division, this launch underscores MG’s dedication to introducing advanced automotive technology to Pakistan. As the nation’s first locally assembled Plug-in Hybrid Electric Vehicle (PHEV), the MG HS PHEV signifies MG’s commitment to pushing the boundaries of automotive innovation in the region.

A Fusion of Style and Technology

The MG HS PHEV, TRUE HYBRID ELECTRIC seamlessly blends cutting-edge engineering with a sophisticated design, setting a new benchmark for the local automotive industry.

Delivering on Promised Time

The timely launch of the MG HS PHEV demonstrates MG’s commitment to fulfilling customer expectations. With deliveries already underway, the brand ensures smooth access to its innovative offerings.

Redefining Hybrid Driving

As a “True Hybrid Electric Vehicle,” the MG HS PHEV boasts impressive features including 52+kilometer electric range, a 16.6 kWh battery, regenerative braking, and external charging capabilities, providing a combined fuel mileage of upto 58.8KM/L. These features combine to provide a seamless and efficient hybrid driving experience

Embracing New Energy Vehicles

The introduction of the MG HS PHEV reaffirms MG’s focus on New Energy Vehicles (NEVs). This strategic move aligns with the company’s vision of integrating advanced mobility solutions into Pakistan’s automotive market.

Experience Future of Mobility

MG invites customers and enthusiasts to visit their dealerships to experience the MG HS PHEV up close. Launched at a price of PKR 9,899,000, the vehicle currently offers an exclusive early bird deal at PKR 9,499,000. This groundbreaking model embodies the future of hybrid mobility, highlighting the cutting-edge potential of advanced automotive technologies.

Shaping the Future of Pakistan’s Automotive Landscape

The launch of the MG HS PHEV underscores MG’s commitment to delivering innovative vehicles that meet the evolving needs of modern drivers. With this launch, MG continues to shape the future of Pakistan’s automotive landscape, offering products designed to inspire and excite.

Automechanika Dubai breaks new ground with largest show on record

Automechanika Dubai 2024 will take place at the Dubai World Trade Centre from 10-12 December

2,228exhibitors confirmed, an increase of 15% compared to the previous year, and floor space increased by 18% year-on-year to facilitate demand during the three-day showcase.

Dubai, UAE: Automechanika Dubai, the largest automotive aftermarket trade exhibition in the Middle East, will return to the Dubai World Trade Centre (DWTC) from 10-12 December, celebrating the 21st edition of the showcase with record exhibitors numbers.

With 2,228exhibitors confirmed, Automechanika Dubai will be the largest to date, spanning an impressive 17 halls, increasing the show floor space by 18%, and showcasing the latest trends and innovations driving the automotive aftermarket sector forward, regionally and internationally.

The event, organised by Messe Frankfurt Middle East,will focus on five global pillars: sustainability, electrification and digitalisation, innovation, training, and recruitment. Additionally, there will be a specific regional focus on safety within the automotive aftermarket industry.

A range of automotive industry experts will also be welcomed as part of the eventscontent series. Returning features include the Automechanika Academy, a knowledge-sharing platform for the automotive aftermarket industry featuring distinguished speakers, including His Excellency Sheikh Nasser Al Qasimi, Assistant Undersecretary for Infrastructure & Transport, Ministry of Energy & Infrastructure, UAE, with key themes centred on collaboration and innovation in the automotive industry, and adapting to change and enhancing service delivery.

Mahmut Gazi Bilikozen, Portfolio Director, Mobility & Logistics at Messe Frankfurt Middle East, said:“The automotiveindustry isrenowned globally for its rapid development of technologies, focus on sustainability and far-reaching market dynamics. To assist those within the industry, we have developed a series of conferences to showcase innovation and advancements from the industry while providing unrivalled opportunities to learn, advance, and collaborate.”

Innovation4Mobility will return as a main feature with a focus on futuristic concepts and visionary ideas, as will the Lubricants and Base Oils Conference, Modern Workshop, and AfriConnections, which will explore the dynamic opportunities Africa’s automotive aftermarket industry has to offer.

This year will also see aRegional Focus on Southeast Asia, where experts will discuss the pivotal role automotive aftermarket companies from that region play in the UAE’s automotive aftermarket industry growth.

Automechanika Dubai 2024 will also debut two new features: the PowerTread Workshop, which will take a deep dive into the latest trends, technologies, and advancementsin tyres and batteries,and the Future Fleet & Telematics Workshop, whichwill gather industry pioneers in telematics to discuss the latest innovations, trends, and applications.

The fourth edition of the Automechanika Dubai Awards will highlight the outstanding achievementsmade within the industry by individuals and companies, with winners announced on day two of Automechanika Dubai duringthe awards ceremony at the Dubai World Trade Centre.

The popular PitStop Challenge will bring together mechanics, repair professionals, and motoring enthusiasts as they go head-to-head and pit their knowledge, expertise, agility and accuracy in repair and maintenance-related tasks.The 2024 edition will also see the introduction of the Find the Fault competition, where auto refitters, body repair specialists, and collision repair technicianswill be tasked with identifying faults within a time limit.

“We are excited to bring a range of new features, underscoring our market-leading positioninthe automotive aftermarket industry in the region. The record-breaking number of exhibitors will ensure the show floor will be a hive activity in what we expect to be another groundbreaking year for Automechanika Dubai,” added Bilikozen.

Automechanika Dubai covers nine specialised product categories: Parts & Components, Electronics & Connectivity, Accessories & Customising, Tyres & Batteries, Car Wash & Care, Oils & Lubricants, Diagnostics & Repair, Body & Paint, Management & Digital Solutions.

The exhibition will run alongside Logimotion, a pioneering event dedicated to the logistics industry, amplifying cross-industry collaboration and innovation opportunities.

The latest Automechanika Dubai news stories are available on the ‘Press Releases’ page.

Pakistan Auto Show: The quiet earthquake you’ll feel for months to come

Amidst all the shine that the latest EVs from China were showing off in Hall 1 of the Pakistan Auto show held in Lahore over the weekend, or the lights on latest iterations from Japanese assemblers in Hall2, or the loud music of the Koreans brands in Hall 3, none made it on the rector scale of earthquakes as did one disruptive EV bike: the “1,2-fire” manufactured by YES Electromotive, Pakistan.

Dressed in Matt black and kinetic green contours, this unassuming yet revolutionary EV play on the ‘125’ cc bikes of Pakistan is a game changer for the country- with one solar panel etched on their “Power Tree” and YES integrated circuitry charging one of 2 LFP battery packs, their claim of “Free for life” fuel is not a marketing slogan – a mere 10,000 of these alone over its 8 year battery life can save 100M$ worth of fossil Fuel! Wonder what a million such bikes will do.
This solarized, rugged mid drive motorized EV bike, designed in the country and made for the masses is the way of the future for Pakistan mobility.

Imagine the freedom, the future with the “Power trees” planted across the countryside harnessing nature’s free fuel every morning for our bikes. Can you feel the earthquake now ?

AI as the Game Changer in the Automotive Industry: Driving the Future of Mobility

Dear readers
The automotive industry is undergoing a transformative evolution, fuelled by the integration of Artificial Intelligence (AI). Once considered a futuristic concept, but traditionally slower in adopting cutting-edge technology compared to sectors like finance and healthcare, the automotive sector is now embracing AI as a critical enabler of innovation. AI is now the cornerstone of innovation, reshaping vehicle design, production processes, and customer interactions. The integration of AI is transforming the industry into a smarter, safer, and more sustainable ecosystem, promising a future defined by unparalleled convenience and efficiency.

AI in Automotive: From Theory to Application
AI has evolved from theory to a transformative force in the automotive industry, revolutionizing mobility and efficiency.
Realized AI powers technologies like Tesla’s Autopilot and predictive maintenance tools, addressing real-world challenges with advanced driver assistance and operational insights.
Theoretical AI, including Artificial General Intelligence (AGI) and Artificial Superintelligence (ASI), promises vehicles capable of reasoning, emotional adaptation, and ethical decision-making. However, these remain experimental, with significant technical and ethical hurdles.
AI Capabilities:

  • Narrow AI drives current innovations with specialized functions like collision avoidance and autonomous navigation.
  • AGI aspires to human-like reasoning for advanced personalization and decision-making.
  • ASI, though theoretical, envisions surpassing human intelligence, offering opportunities but raising profound ethical concerns.
    AI is reshaping the automotive landscape, bridging the gap between innovation and future possibilities while presenting challenges that demand careful navigation.
    AI’s Role in Transforming the Automotive Industry
  1. Smart Cars: Personal Co-Pilots
    Modern vehicles are evolving into intelligent companions. AI-driven personalization systems adapt to driver preferences, offering customized music, navigation, and climate settings. These features create a more engaging and user-centric experience.
  2. Autonomous Driving:
    A Safer Journey
    Autonomous vehicles are the epitome of AI’s potential in mobility. Companies like Tesla and Waymo leverage sensors, cameras, and machine learning to enable self-driving cars that navigate urban complexities. AI also enhances safety with predictive algorithms that preemptively avoid hazards.
  3. Predictive Maintenance:
    Proactive Care
    AI-driven diagnostics monitor vehicle health, detecting issues before they escalate. For EVs, this includes battery degradation predictions, while for ICE vehicles, it monitors engine performance. This approach reduces breakdowns and extends lifespans.
  4. Smarter Manufacturing
    AI streamlines production processes by automating repetitive tasks, reducing errors, and optimizing resource allocation. Consumer trend analysis helps manufacturers design vehicles tailored to evolving market demands.
  5. Connected Cars in IoT Ecosystems
    AI enables vehicles to communicate with smart infrastructure, improving traffic flow and safety. However, this increased connectivity demands robust AI-powered cybersecurity solutions to mitigate threats.
    Transforming Aftersales Services with AI
    Aftersales services are a critical touchpoint for customer satisfaction, and AI is revolutionizing this domain by streamlining operations, improving diagnostics, and enhancing customer experiences.

  1. Predictive Maintenance
    AI systems monitor vehicle health through sensors, identifying potential issues before they become significant. For EVs, this includes predicting battery degradation, while for ICE vehicles, it monitors engine wear and tear. This proactive approach minimizes emergency repairs and builds trust.

2. Automated Diagnostics
AI-driven tools diagnose vehicle problems with precision and speed. These systems can identify faults in EV drivetrains or traditional ICE systems, enabling technicians to resolve issues more efficiently.

3. Efficient Parts Management
AI optimizes inventory by predicting demand for spare parts, ensuring timely availability. This reduces vehicle downtime and enhances customer trust in service centers.

4. Personalized Service Schedules
By analyzing driving patterns, AI creates tailored maintenance schedules. Customers benefit from optimized service intervals, avoiding unnecessary visits while ensuring reliability.

5. Enhanced Customer Relationships
AI-powered CRM tools, such as chatbots and predictive analytics, improve communication and provide personalized solutions. Proactive alerts for maintenance and service reminders foster stronger customer relationships.

6. Streamlined Insurance Claims
AI simplifies insurance claims through automation, reducing processing times and improving transparency. Predictive models also help prevent fraudulent claims.

Challenges of AI Adoption in Aftersales and Beyond

  1. Workforce Transition:
    Automation risks job displacement; upskilling technicians is essential.

2. Algorithmic Bias:
Faulty data can lead to inaccurate diagnoses and erode trust.

3. Data Privacy:
Protecting sensitive customer data in connected systems is critical.

4. Cybersecurity:
AI-driven services face cyber-attack vulnerabilities, demanding robust security.

5. Ethical Dilemmas:
Liability in autonomous driving and opaque AI decisions challenge trust.

  1. Over-Reliance on AI:
    Excessive automation risks diminishing human problem-solving skills.

Embracing AI for a Sustainable Automotive Future

  1. Workforce Development:
    Train teams to effectively use AI tools.
  2. Data Security:
    Invest in advanced cybersecurity to protect customer information.
  3. Quality Control:
    Ensure AI systems are reliable through rigorous testing.
  4. Ethical Standards:
    Create frameworks for transparent and accountable AI operations.
    Key Note:
    AI is Driving the Next Generation of Mobility
    Artificial Intelligence (AI) is reshaping the automotive industry, driving the next generation of mobility.
    Far from being a mere trend, AI represents a paradigm shift that is revolutionizing smart cars, autonomous driving, and aftersales services. With its potential to unlock unprecedented opportunities for innovation and growth, AI is setting the stage for a smarter, safer, and more sustainable future of mobility.
    However, this transformation is not without challenges, as the industry must address workforce adaptation, data privacy, and ethical concerns to fully harness AI’s benefits.
    The integration of AI is significantly impacting the job market, automating repetitive tasks and reshaping roles across industries. Jobs involving data entry, telemarketing, assembly lines, and basic bookkeeping are particularly vulnerable to automation.
    In customer service, AI-powered chatbots and virtual assistants are replacing traditional roles, while autonomous vehicles pose a threat to transportation jobs. Similarly, manufacturing, logistics, and retail sectors are witnessing the rise of robots and automated systems that are streamlining operations but reducing the need for human intervention.
    Yet, AI is not just a job displacer—it is also a creator of opportunities. It is driving demand for new roles in AI development and maintenance, such as machine learning engineers, data scientists, and AI trainers.
    Emerging fields like robotics, cybersecurity, and renewable energy are also benefiting from AI advancements, while creative and strategic industries are leveraging AI-enhanced tools for design, marketing, and content creation. Furthermore, the need for AI ethics and regulation is giving rise to specialized roles to ensure its responsible use.
    The overall impact of AI on jobs is a mix of displacement and creation. According to the World Economic Forum, AI could displace 85 million jobs globally by 2025 but create 97 million new ones. PwC predicts that around 30% of jobs may be at risk of automation by the mid-2030s, with low-skill roles being the most affected.
    To navigate this transformation, it is crucial for businesses, governments, and individuals to invest in upskilling and reskilling efforts, ensuring that the workforce is prepared for the evolving job landscape.
    For automotive leaders, the key lies in balancing innovation with responsibility. Companies that embrace AI’s potential while addressing its challenges will not only lead the industry but also set benchmarks for its ethical and sustainable implementation.
    The road ahead is clear: AI is the driving force behind the automotive industry’s evolution. The question is no longer whether AI will reshape the world of mobility—but how quickly it will accelerate us into a future defined by intelligent, innovative solutions.

First published in Automark Magazine: Driving Innovation, Empowering Mobility

Exclusive written by Asif Mehmood for Automark’s December-2024 printed and digital edition.