After Honda and Toyota it is expected that Pak Suzuki, FAW and other Chinese car assemblers will also increase prices soon.
Honda Atlas Cars Ltd (HACL) on Friday increased the price of various vehicles by Rs 260,000- 425,000, effective from Jun 24, due to recent rupee devaluation and negative exchange rate impacts.
After a jump of Rs 400,000, the new prices of Honda Turbo RS and 1.8L VTI CVT are Rs 4.199 million and Rs 3.599m respectively while the rate of 1.8L VT SR CVT is up Rs 425,000 to Rs 3.824m.
The new prices of 1.3L MT, I.3L AT, 1.5L MT, I.5L AT and 1.5L Aspire MT are Rs 2.179m, Rs 2.319m, Rs 2.239m, Rs 2.379m and Rs 2.394m — higher by Rs 260,000. Meanwhile, 1.5L Aspire AT will cost Rs 2.554m, showing a rise of Rs 280,000.
HACL has jacked up the rates of BRV MT by Rs 305,000 to Rs 2.589m while BRV CVT and BRVS CVT will now cost Rs 2.784m and Rs 2.919m, up by Rs 350,000 each.
The company has informed its authorised dealers that from July 1, any government taxes (federal excise duty, customs duties etc) will be added to these new prices.
The government in Budget 2019-20 had levied federal excise duty in the range of 2.5-7.5pc on vehicles of various engine power.
Previously, Honda Atlas revised the prices of Automobiles in April 2019 and considering the recent hike in prices after the budget, it is expected that Pak Suzuki, FAW and other Chinese car assemblers will also increase prices soon.
Trade In Your Old Car For A Brand New Changan With CarFirst
Lahore, 26th June 2019: CarFirst, Pakistan’s most trusted used car trading platform and Master Motors a Joint Venture with Changan International bring the “Changan Exchange Program” to Pakistan. Customers will be able to bring their used cars of any brand and any age and exchange with brand new Changan vehicles at Changan 3S dealerships. The program initiative will commence from Changan Yazdani Motors located at EBM Causeway, Korangi in Karachi later it will be offered at all 13 Changan 3S dealerships nationwide.
The Changan Exchange Program allows customers to own a brand new Changan with three hassle-free steps. Customers just need to visit a Changan dealership, have their used car inspected and priced, and instantaneously sell their used car to CarFirst and buy their brand new Changan from the Changan 3S dealership. With this program, as opposed to finding a buyer for your used car, you can conveniently and transparently sell your used car to CarFirst. Customers who opt for this program will receive priority facilities including an expedited delivery for their new Changan.
Commenting on this, Raja Murad Khan, CarFirst’s CEO said, “ Our Changan Exchange Program provides our customers with a quick and convenient way of upgrading their car by trading in their old one for a new Changan. This program is one of many ways of selling a car through CarFirst, for many of our customers, our Changan Exchange Program is seen as a quick hassle-free option since they can have their used car inspected, priced, and sold under one roof and also drive away with a new Changan by paying only the difference. We are looking to further expand this program to other cities on a similar scale.”
Commenting on this, Danial Malik, CEO Master Motors Ltd said, ”Our aim is to facilitate automotive users with a complete solution under one roof, Changan is proud to be the first OEM in Pakistan to partner with experts for a car exchange program to address the concern of resale value. Through the Changan Exchange Program powered by CarFirst, our customers can seamlessly trade in their used car for brand new Changan. At Changan we are continuously driving Pakistan’s automotive industry forward through innovation, and playing our role as the leading automotive manufacturer by producing technologically advanced, high quality vehicles at an affordable price point for the young and growing middle class of Pakistan”
About Master Motors Master Motors Ltd is a joint venture between Master Motor Corporation Ltd. and Changan International Corporation with an investment of $100 million focusing on manufacturing and exporting Right Hand Drive (RHD) vehicles to countries like South Africa, Malaysia, Indonesia, etc. For now, the company is working on the production of passenger and light commercial vehicles. MML has launched Changan M-9, 1-ton Pickup with 9×5 ft deck and Changan Karvaan, a seven-seater luxury van with Dual A/C in April 2019. The company has built a state-of-the-art plant in Karachi with a production capacity of 30,000 vehicles per annum within the record time of 13 months. With an ever expanding 3S dealer network, Changan currently has 13 dealerships nationwide offering full range of spare parts and after sales support in all major cities of Pakistan. Master Motors has 30 years of automotive manufacturing heritage ranging from automobile parts for OEMs to producing commercial vehicles. Master Motors produces range of global commercial brands like Mitsubishi Fuso, Foton-Daimler, IVECO and Yutong bus.
Honda Atlas Cars Ltd (HACL) on Friday increased the price of various vehicles by Rs 260,000- 425,000, effective from Jun 24, due to recent rupee devaluation and negative exchange rate impacts.
After a jump of Rs 400,000, the new prices of Honda Turbo RS and 1.8L VTI CVT are Rs 4.199 million and Rs 3.599m respectively while the rate of 1.8L VT SR CVT is up Rs 425,000 to Rs 3.824m.
The new prices of 1.3L MT, I.3L AT, 1.5L MT, I.5L AT and 1.5L Aspire MT are Rs 2.179m, Rs 2.319m, Rs 2.239m, Rs 2.379m and Rs 2.394m — higher by Rs 260,000. Meanwhile, 1.5L Aspire AT will cost Rs 2.554m, showing a rise of Rs 280,000.
HACL has jacked up the rates of BRV MT by Rs 305,000 to Rs 2.589m while BRV CVT and BRVS CVT will now cost Rs 2.784m and Rs 2.919m, up by Rs 350,000 each.
The company has informed its authorised dealers that from July 1, any government taxes (federal excise duty, customs duties etc) will be added to these new prices.
The government in Budget 2019-20 had levied federal excise duty in the range of 2.5-7.5pc on vehicles of various engine power.
Previously, Honda Atlas revised the prices of Automobiles in April 2019 and considering the recent hike in prices after the budget, it is expected that Pak Suzuki, Toyota Indus, FAW and other Chinese car assemblers will also increase prices soon.
Explores Pakistan Hi-Tech Manufacture Sector For Sourcing From Pakistan
Islamabad : June 15, 2019.
Pakistan Aerospace Council (PAeC) in collaboration with National Centre of Physics
(NCP) hosteda four member, senior team from European Organization for
Nuclear Research (CERN) including their head of procurement Dr. Anders Unnervik,
in Pakistan.
Mr. Imtiaz Rastgar, Founder of Pakistan Aerospace Council, visited CERN in October 2018 to present to them possibilities of sourcing from Pakistan’s High Tech Cluster. As a result, a four member senior team from CERN visited Pakistanto interact with private high techmanufacturing industry. More than 25 high tech manufacturing companies from Pakistan Aerospace Council cluster attended the event, organized at National Centre for Physics and gave presentations about their companies, products, skills and expertise. Some companies displayed their products in stalls which were highly appreciated by CERN and other industrialists.
Dr. Andres Unnervik, Director Procurement at CERN
gave atalk on, “Doing Business with CERN”.
In which he explained the whole process of procurement at CERN. He explained
the future projects of CERN and the resources they require. He also explained
the process of assigning projects to companies. Subsequently Dr. Francisco
Sanchez Galan gave presentation on the upcoming High Luminous-Large Hadron
Collider(HL-LHC). He explained the timeline of the project and equipment being
used there and what products and services will be required in future. He also
answered the queries from the audience
about CERN procurement process.
Dr. Haroon Javed Qureshi,
President Pakistan Aerospace Council summed up the presentations of the
Pakistani Private sector Industry with his talk, highlighting Pakistan’s young,
intelligent and innovative engineering workforce, supported by the number of
excellent engineering universities, giving Pakistan the potential of becoming a
leading knowledge based engineering, industrial hub, exporting high tech
assemblies worldwide. Exporting Pakistani products to CERN is a unique
opportunity, also for Pakistani high tech sectorto participate in a prestigious
project like CERN and work together with the worlds leading scientist and
engineers on the exciting possibilities emanating from CERN.Companies which
start to make supplies can also use CERN
logo, a great status for engineering companies.
CERN Team also spent two packed days at Lahore where they visited QadBros Engineering on May 23, 2019, to review processes
leading upto successful deliveries from that company.In Lahore the team also
visited Pakistan
Electron Ltd(PEL)
which produces power transformers and high tension equipment.AEDesign , next on the list, uses modern
design tools for serving their, mainly, European Customers. The also
manufacture light engineering products for their European customers under the
anme BECO.Last visit of the day was to EMCO, who manufactureEHT insulators. The CERN team was
impressed about quality as well as international standard production by all
these companies and showed keen interest for future procurement possibilities
in CERNprojects.
Pakistan Aerospace Council (PAeC)is a platform of Pakistan’s high-tech manufacturing industry, providing networking and business growth possibilities to its members as well a window for customers and government bodies to discuss policy and technology issues. .For more information please visit our website www.pakaero.com.pk
Keeping in view a broader vision on changing landscape of auto sector in the world, Prime Minister Imran Khan on May 18 chaired a meeting on climate change and decided to introduce electric cars and electric bikes by setting up electric vehicle plants for the first time in the country.
Adviser to Prime Minister on Climate Change Malik Amin Aslam briefed the premier on the climate change. The prime minister ordered the authorities concerned to ensure conversion of 30 per cent of all cars running in the country into electric vehicles by 2,030. However, it looks an ambitious target. Mr Aslam said the government planned to introduce electric cars in the country by 2,030 and that the move would have far-reaching impact on the country’s environment. He said electric vehicle policy would be devised shortly under the direction of PM in order to control petrol import bill. “Most countries are opting for electric cars across the world and Pakistan is far behind in it and once introduced in the country, electric vehicles will help save Rs 2 billion worth of oil imported into the country besides reducing the country’s air pollution,” he said.
The government wants to see export of electric vehicles from Pakistan within the period of five years. The adviser said that smoke emissions from vehicles were a major source of air pollution in the country and it contributed heavily to smog during winter season in Punjab, especially in Lahore.
He said that electric cars would help lessen dependence on LPG and compressed natural gas stations, most of which were shut down because of gas closure on different days especially in winter in Punjab and these stations would be converted into charging docks for electric cars.
Referring to the smog issue in Punjab during winter, he said that last year crop burning, one of the major sources of smog in Punjab, was banned. This year, too, he said, crop burning would be prohibited and the government planned to purchase the crop waste to sell it to industrial units.
He also announced plans to launch Green Rickshaws in the country and for this purpose the government was holding talks with different stakeholders.
Chairman Pakistan Electric Vehicles Manufacturers Association, Mohammad Sabir Sheikh said the government should not use the word “electric cars” but also cover electric vehicles, electric bikes, electric commercial vehicles, electric tri wheelers, and electric heavy vehicles especially made for academic institutions. Motorcycle population is far higher than other vehicles due to its massive usage. The government should focus more on electric two wheelers, he said.
Most of the two wheeler units are already closed and they would not need more time to start assembly of electric bikes if they are encouraged with tax incentives and friendly policies, he said. Vendors are also equipped with expertise to develop electric bike parts as these bikes require only body parts and batteries rather than engine. Vendors are capable for making electric bike parts, he added.
Sabir said electric bikes will save millions of dollars import bill of petrol besides ensuring pollution free environment. He said the government should reduce customs duty on CKD parts of electric bikes and remove hurdles at the bureaucracy level especially in Engineering Development Board, Board of Investment and Pakistan Standard and Quality Control Authority. “One of the main advantages of the electric bikes is that it cannot be used in street crime activities because it lacks torque and thrust as compared to petrol driven bikes,” he said.
The government remains committed in introducing alternative energy in all walks of life with a view to reduced dependence on consumption of fossil fuel. In this regard, the government intends to continue its drive and the following proposals are being made. In last year’s budget 2018-2019, the government had incentivized electric vehicles. To promote usage of electric vehicles, which are environment friendly, an enabling fiscal environment for its related infrastructure is necessitated. The government proposed that 16 per cent customs duty on charging stations for electric vehicles may be withdrawn.
Custom duty on import of electric cars was proposed to be reduced from 50 per cent to 25 per cent in addition to exemption from regulatory duty of 15 per cent. Import of CKD kits for assembly of domestically produced electric cars was proposed at 10 per cent. Sabir Sheikh said the government should support with full incentives to promote electric vehicles as the world is fast moving towards electric vehicles as auto parts vendors have the capability to produce anything barring engines which electric cars and bikes do not need.
He said countries like Germany and China are doing a lot of work on electric vehicles. Germany plans to get rid of fossil fuel vehicles completely by 2,022, while other European countries will follow suit by 2,025. India has also set the deadline by 2,030. “Where Pakistan will stand if it has not done anything right now seriously,” he added.
He urged the government to promote electric scooters along with all kinds of vehicles. Electric vehicles can be made completely in Pakistan if there’s a will. Sabir said despite too many incentives, nothing serious had been done in the last few years in electric vehicle segment. Few investors tried to bring in imported electric cars and bikes but could not get a big response as infrastructure is missing coupled with high prices.
He said existing Japanese car assemblers had not hinted any sign for introducing electric vehicles in Pakistan as they are already enjoying monopoly in petrol and diesel driven vehicles. However, Toyota and Honda have been making serious efforts in this regard. He said existing assemblers have been literally enjoying in Pakistan especially on price hike issue.
They have raised car prices by over 10 times in the last 14 months despite achieving up to 70 per cent localization but no governments have ever seriously taken this issue. When existing assemblers are making fun of prices under the umbrella of rupee-dollar parity then one cannot expect price stability from the new entrants owing to very low localization. However, brisk sales of existing local assemblers amid frequent price hikes boosts the morale of new entrants that price hike is not the main issue rather than giving better choice to the consumers which had been missing owing to monopoly of only three Japanese assemblers.
Another development has emerged in the two wheeler segment as the government is considering introducing special low-grade petrol for motorbikes in the country, apparently as a solution to allow obsolete refineries to continue operations and provide a cheaper option to the owners of two-wheelers amid rising petrol prices.
Prime Minister Imran Khan had directed his special assistant on petroleum Nadeem Babar to examine the proposal and practical matters to introduce 80-82RON petrol for two-wheelers. The proposal is reported to have been floated by Dr Abdullah Malik, an official of the Oil and Gas Regulatory Authority (Ogra).
The move appears surprising as Pakistan had already switched over to 92RON from 87RON two years ago while 30 years back, the country was using 82RON. Higher Research Octane Number (RON) means cleaner and better quality petrol. Low quality petrol import would definitely lower import bill of over one billion dollar spent on petrol import. Two wheelers consume over 60 per cent of petrol out of total sales of petrol. Pakistan Automotive Manufactures Association (PAMA), while opposing the move, said the Association was told that majority of domestic refineries, having outdated facilities, were not able to efficiently produce higher RON fuels due to which they had to use an additive to fuels to increase RON which was imported.
If low RON fuels are introduced then import bill of those additives may be reduced. It will also help use unutilised capacity of oil refineries. This policy initiative of 80-82RON will be a huge step backward in a long-standing national goal of achieving international standards, PAMA said. Commenting on this, Sabir Sheikh said majority of consumers in Pakistan are using decades old bikes so there would be no problem if they get low quality petrol at reduced rate than the current petrol price of Euro II fuel.
He said for the last few years – all the assemblers had been producing EURO II bikes which require 92RON petrol which is easily available. There will be no big problem if low quality petrol is introduced for decades old bikes.
Published in Automark Magazine’s June-2019 printed edition
Pak Suzuki launched its locally manufactured passenger car which was previously introduced in the market back in April 2019 at the Pakistan Auto Show. The brand new 600cc car has a R-series engine, with a modern exterior and interior both. There are three variants of this Alto; Alto VX which is without AC, Alto VXR which is with AC and Alto VXL AGS which has AC and automatic transmission.
This is the first time for Suzuki to manufacture vehicles with engine displacements of up to 660 cc overseas. Using the same body and engine as the Alto currently sold in Japan, the model launched in Pakistan is being assembled at Suzuki’s Karachi plant. Before the launch of the new model, Suzuki used the same Alto body but with 800 cc to 1,000 cc engines.
The new Suzuki Alto is well equipped and has focused on enhancing its safety features, such as having Dual Front SRS Airbags, Anti-lock Braking System and keyless entry with immobilizer. Moreover, there are even more advanced features available for those willing to amp up their requirement of technology in the car such as power steering, electronic windows, electrically adjustable side view mirrors and touch screen multimedia.
Introductory price of the Pak Suzuki Alto VX is for Rs.981,000, Alto VXR is for 1,083,000 and Alto VXRL AGS is for 1,277,000. It was announced on Saturday that pre-booking will be done at Rs.500,000 and also chose 30 winners who will get the benefit of zero percent balance payment upon their pre-bookings before 15th of June.
It claims to be a fuel efficient car which has been launched in the place of the 800cc Mehran. The company is offering a three-year or 60,000km warranty. The new Alto will be displayed at over 165 Pak Suzuki dealerships in more than 95 cities nationwide.
Investment plans of other new entrants look intact so far. They look more determined to shake up dominance of three Japanese assemblers
The PML-N government had introduced the Auto Policy 2016-2021 in good spirit to break the monopoly of existing Japanese assemblers and bring a variety of European, Korean and Chinese brands for the consumers.
All was going well with arrival of 17 new entrants (15 in green field and two in brown field) carrying an investment of over one billion dollar for creating additional capacity of 300,000 units (cars, LCVs and SUVs).
The positive response shown by new investors towards the auto sector reminds of the Musharraf era when he opened the bike market for new players to jolt market leadership of Atlas Honda Limited (AHL).
The Musharraf government opened a floodgate for Chinese bike assemblers resulting in arrival of over 100 assemblers in Zardari and Nawaz Sharif periods but now only 20 units are enjoying the field day while 20 others are struggling for their survival. Many bike factories still exist but they have suspended their production owing to stiff market conditions.
However, influx of Chinese bike provided a big relief for low and middle income people because of cheap price compared with Honda CD70cc but this could not really seriously hit Atlas Honda Limited, who is still market leader with over half of the total bike volume amid very high price. This means that Honda bikes virtually rule in rural areas of Punjab and Sindh mainly because of its durability and quality.
Coming back to Auto Policy 2016-2021, auto market has shaken with hovering dark clouds over $165 million Al Futtaim-Renault green field project as market pundits see the above project as “First casualty of the Auto Policy” despite no official confirmation from the two companies.
Market is also abuzz with reports that two more new entrants have yet to receive green field status either they have backed out or adopted wait and see attitude for some other reasons.
People have welcomed Chinese bikes because of low prices but the case of cars is different. Pakistani customers have yet to develop any liking for Chinese cars despite the fact that some Chinese assemblers are faring well in light commercial vehicles because of price advantage.
Many people feel that European cars do excel in quality and durability but their high prices cannot compete with Japanese and Korean cars. Again consumers’ choice for European brands holds a big question.
To some extent, Korean cars had also failed to carve a niche among people but here Dewan Farooqui Motors Limited can be blamed for mismanaging Hyundai and Kia a decade back. Now two big groups – Nishat with Hyundai and Lucky group with Kia – are coming up but they will face a tough challenge to lure buyers.
If massive rupee devaluation against the dollar from January 2018 till to date coupled with ailing economic indicators can be blamed for Al Futtaim Renault debacle then why other assemblers especially Korean and Chinese are not feeling the pinch of soaring project cost.
Reports of Nissan and Renault tussle after their Chairman Carlos Ghosan’s money embezzlement scrutiny might have put Renault in a precarious situation to be very careful in entering any other country.
Market reports say that Al Futtaim, the operators of Al Ghazi Tractors in Pakistan, may not be interested any more in going forward with Renault due to project’s risky and bleak prospects.
Surprisingly, French Senator, Pascal Allizard, leading a three member French Parliamentary Group, had said last month in Islamabad during a press conference that French automobile maker Renault was keen to set up a manufacturing plant in Pakistan. Interestingly, he did not disclose any thing about the joint venture of Renault with Al Futtaim for vehicle assembly at Faisalabad plant.
Before acquiring land in Faisalabad, Renault’s aim to start local assembly in Pakistan had faced a number of challenges from 2016. In November 2017, the French auto maker, after suspending talks with Ghandhara Nissan Ltd (GHNL), made another attempt in December 2018 to assemble and distribute its vehicles in Pakistan in partnership with Al Futtaim, a Gulf-based business house.
Groupe Renault and Al-Futtaim had signed definitive agreements to assemble vehicles in a new plant in Karachi. The two parties expected that the plant would be built starting the first quarter of 2018. Project was shifted to Faisalabad special economic zone from Karachi. Before the project between gulf and France kicked off in Faisalabad, a number of people working with Al Futtaim Renault project are either left their job or searching new jobs since the project has been going at snail’s pace thus causing anxiety among the staffers and market watchers.
Surprisingly, Board of Investment (BoI), Engineering Development Board and a senior executive at Al Ghazi Tractors, who is looking after the project as its head, had played safe. BOI minces words in saying it is yet to get any confirmation from Al Futtaim regarding reports of pull back or delay about the project.
Faisalabad Industrial Estate Development and Management Company official says the UAE Company had purchased land at M-3 Industrial City, Faisalabad in May, 2018 to establish plant to assemble-cum-manufacture Renault cars. Aimed at creating 500 jobs, the company has not started any construction work so far at its 67 acres of land. The land has so far been intact, he says to local English daily adding that he does not have any confirmation regarding pull back or delay by Al Futtaim.
Sources in the auto sector said the Al Futtaim Renault issue has been highlighted before the Prime Minister Imran Khan last month by concerned government departments dealing with Al Futtaim. They said PM has taken asked the concerned departments to remove any bottlenecks at the government’s end to save a huge investment in the auto sector.
Perhaps another issue that haunts Al Futtaim Renault is over 300,000 units of additional capacity coming up in the next one to two years in which new entrants will make die hard effort to grab a share. With lowering volume of used car imports following government’s stric regulations, new entrants can fill the vacuum of 70,000-80,000 units but starting with low volume and existence of well established three Japanese players may pose a serious challenge to new entrants to stay floating in the competition.
Some new entrants believe that the government should avoid giving green signal to more new players while others say that let the market decide the fate of new entrants. Influx of 15 new entrants in the green field and two in brown field under Auto Policy 2016-2021 may create a difficult working environment in the short term for new entrants in grabbing a slight slice of market share from three big Japanese giants.
Low localization level at the start of assembly by new entrants means opening of few new jobs at the assembling units and offices instead of big job opportunities at the vendors’ end. Accelerating localization level in the locally assembled vehicles will take considerable time depending on the response of consumers towards new vehicles.
One new entrant believes that 17 new players are too much in Pakistan, if they all materialize. Country’s installed capacity will double if all the new players were to establish and go forward with their plans. He urged the Government to prevent the creation of a huge over-capacity which will only result in a bloodbath among manufacturers and will not be conducive to localization. The government should keep the ADP 2016-2021 policy framework intact with no extension.
Another big challenge for the new entrants is their vulnerability towards exchange rate impact. Starting car assembly with very few locally made parts means hovering pressure of frequent price shocks to the consumers if losing value of the rupee against the dollar continues. Hence localization is essential even with low volumes.
Let’s discuss status of some new entrants
Regal: Regal Automobile is currently assembling 1,000cc mini van and loader. The company has imported 800cc four wheeler passenger cars from China – Prince Pearl to test its marketing response. The company aims to assemble it locally next year without announcing any price yet.
United: United Bravo 800cc car has already been put on sale but it is not visible on the roads specially in Karachi.
Khalid Mushtaq: The construction work of Khalid Mushtaq Company has almost completed while the company has imported 40 units of Mushtaq KY 10 trucks in CBU form out of 100 units allowed under auto policy. More 60 units will arrive in next phase. The company plans to assemble by end of 2019. However, dealer network is being established slowly. The company claims to have received good feedback from the dealers and customers Price is also acceptable as with this specifications other truck is not available currently in local market neither from China, Japan or Korea.”We are very hopeful for our product,” COO of the company Anwar Iqbal says. Specification of the product: Powerful VVT Technology Gasoline Engine, Power: 110 HP / 82 KW, Torque: 143 NM, Displacement: 1.5 L. Best in Class Fuel Efficiency (100km/=8.8L at Speed 50km/h), Euro-4 Technology Engine For Cleaner Emissions and Thick & Strong Elevated Muffler.
KIA Lucky: Kia Lucky Motors is coming back in the local industry of Pakistan with KIA Picanto 2019 after a decade. It also displayed a number of vehicles at 3-day auto event Auto Parts Show (PAPS) 2019 held in Expo Centre, Karachi where it presented as many as five of its vehicles including Stinger, Picanto, Sportage, Nori and Grand Carnival. Local assembled KIA Sportage and Picanto will be available in Pakistan and expected to release in June and October respectively. The booking of the vehicles will start in June and August 2019 respectively and the delivery is anticipated in end July and October of this year respectively.
KIA has set up an assembly plant and installed assembly line to assemble these two vehicles at their Port Qasim assembly plant in Karachi. KIA Picanto is an entry-level 5-door hatchback powered by 1,000 cc engine displacement mated with a 4-speed automatic gearbox. The Euro-6 compliant 1.0-litre engine produces a maximum output power of 66 hp. The hatchback has a wheelbase of 2400 mm which provides optimum control over the car.
The hatchback comes in 1.0-litre engine mated with a 5-speed manual transmission and a 1.2-litre engine which is offered under the optional automatic transmission. The upcoming car is also equipped with airbags as a basic safety feature but lacks the spare wheel at the back which is a necessity especially while traveling in Pakistan.
The company claims that they will offer a version of Picanto which will have many more additional features as compared to the one showcased at PAPS 2019. The estimated price of the upcoming entry-level hatchback is Rs.1.2-1.5 million.
Hyundai Nishat: The construction for an assembly plant of Hyundai Nishat Motors is almost done. The company will introduce four variants in CKD but the company has kept it secret for all models and variants so far. By November-2019, products will be available for test and trial. While already giving orders for CKD for different variants, the company has already assigned eight to nine dealers across the country. Production will get underway from 2020.
JwForland: JwForland has so far been going well as it is producing five variants in Pakistan. Recently, JwForland celebrated its achievement of assembling 500 trucks in Pakistan. Prime Minister of Pakistan Imran Khan inaugurated phase 1 production facility of JwForland truck assembly plant in Lahore. CM Punjab, Governor Punjab, Information Minister and many other high level government officials were with him on that special visit and on ceremony.
Sazgar: The construction of Sazgar assembly plant is almost completed but the company is unhappy with rupee devaluation against the dollar. However, the company has imported few vehicles for testing and marketing. According market source quality of the vehicles are very good.
MML: Master Motors Ltd (MML) has rolled out its first locally assembled vehicle Changan Karvaan on May 2, 2019 in just 13 months, which is record time for any Greenfield auto manufacturing plant. It is pertinent to mention here that Master Motor Ltd is a joint venture between Master Motor Corporation Ltd. and Changan International Corporation. The company announced local production of three Changan vehicles in Pakistan, namely Changan M8 Pickup, Changan M9 Pickup, and Changan Karvaan van, followed by full range of SUVs, MPVs and other passenger vehicles.
KKH: Khalid & Khalid Holding representative said the company would introduce trucks, buses and trailers while the company has already sold 1,200-1,400 CBUs trucks. Production will start next year at Adam Khail near Mianwali where shade was almost done. Equipments will arrive by end of this year.
KA Hangtang: (Faisalabad M3) has already imported few EV SUV cars for testing and marketing and had good feedback from investors. After recent announcement of PM about electric cars, the company is waiting for some good news and welcome the government decision. The company is very much interested to produce EV SUV and HEV (Hybrid Electric SUV) in Pakistan. Production will start next year but construction has not yet started.
Topsun Motors: Topsun Motors Pakistan has accrued 60-acre land in Sakhi Sarwar, District Dera Ghazi Khan, close to Al GHAZI TRACTOR, and civil work is in progress by the Chinese company. Trail Production will start by June 2020. All investments will be arranging by TOPSUN Motors Pakistan and our overseas partner will assist u in technical issues only. CBU units will be available from August 2019 most probably.
Premier Motor Limited: Government awarded the ‘category-A Greenfield investment status’ to a Karachi-based Premier Motor Limited for assembling /manufacturing of vehicles covered under its contract agreement Volkswagen in April-2019. German automaker Volkswagen has planned to invest $135 million.
The plant would be set up in Balochistan and a land has already been acquired. Since the company has been awarded the status, it would now start construction on the site. The plant would become operational in 2021 and would initially manufacture vans and double cabin vehicles.
This article has been published in Automark Magazine June-2019 printed edition
Importing cars, especially the used ones have gained much important in the past few years. Investments in auto industry increased exponentially from 50% to 70% in the past five years.
While importing cars has its own benefits, not everyone can import cars from abroad. Initially, cars were mainly imported for commercial purposes. With the increased prices of automobiles in the local auto industry, people started buying cars from abroad, especially Japan for personal use and gift purposes.
Having said that, there is an entire market industry of imported automobiles in Pakistan. Dealers from Pakistan buy new and used cars from abroad and sell them in Pakistan. This third party process comes with a lot of custom duties and taxes.
The procedure is mainly based on online auctions. Most of the importing car companies provide access to live auction in auction houses. Firstly, you need to sign up on various companies’ portal. Once it is done, logging in will lead to a page where you have to bid on a vehicle you want to buy. A whole lot of auction sheet will be available containing details of cars available for auction. People can see the specifications like model, year, date of auction and minimum bid etc.
The documentation process from the importing company starts and they send documents including Invoice, original Export certificate in Japanese, translated export certificate in English, and two copies of original B/L (bill of lading). Customer receives their cars from Karachi Port Trust in approximately 15 days, but the figure can go slightly up. Another process of buying imported cars is through Dealers in Pakistan. But it requires people to pay an amount higher than the original one and the process can take a longer time period to be completed.
However, it is not easy as it sounds. Importing cars from abroad, whether personally or through third party is a cumber some process. Adding more complexity into it, the government has recently amended the used cars imported policy and imposed restrictions and high custom duties. The high influx of cars from abroad decreased at higher rate and both the dealers and buyers are being worse off. Now, not everyone can import cars on their own. Conditions under which a used car can be imported have been laid down by the government, making the process more complicated. In conclusion, things got more complicated in the importing sector of automobiles since the announcement of the new policy.
