Automark

The market was abuzz with rumors that the Suzuki Alto car prices would again be increased. After the last price increase, their statement said “The above prices are subject to change without notice and prices at the time of delivery shall apply. Any government tax applicable will be charged to the customer.”

According to industry sources, Suzuki Alto might be going for another price increase that would be somewhere around 25k to 40k, however, the news is not confirmed yet that on which variant they will increase the price. This would be their third price revision since the car was launched back June 2019.

The Auto industry is going through a hard time especially with the depreciation of the rupee value in the market. However the dollar has gong slightly down by 3-4%, so it was expected that the automakers would revise prices to go downward. At the moment it does not seem likely that it would be happening anytime soon.

When the car was launched the introductory price of the Pak Suzuki Alto VX was Rs.981,000, Alto VXR was for 1,083,000 and Alto VXRL AGS was for 1,277,000. However, as tax became a burning issue at that time and the rupee devalued many companies raised their prices. Among them, there was Suzuki Alto 660cc and it was confirmed on 30 July 2019 that the prices were revised which were implemented from 1^st August 2019 and were as follows:

Note that while the above-mentioned prices are inclusive of Ex-factory price and freight charges incurred on the vehicle to reach dealership premises, they are exclusive of Advance income tax.

Now, this was quite a shock to the buyers but it was expected after the cost of high taxes and duties imposed by the government.

But another price increase at this time suggests that Kia Picanto which was introduced last week to compete against Suzuki has failed to cause any stress lines on the Suzuki Automakers and they’re least bothered with the competition offering a better car but with a higher price.

Although the stress goes on to the consumers who are struggling to find budget cars especially with imported cars out of the option and locally produced car makers hiking their prices despite a decrease in the US dollar.

Is the Auto Industry really troubled and losing business? 

by Hawwa Fazal

Hongqi brought two concept cars to Germany; the S9 supercar (see earlier post), and this E115 electric SUV.

The E115 previews Hongqi’s new flagship pure electric SUV, which will be launched on the Chinese car market next year. It will be an ultra luxurious four-wheel drive vehicle with L4 autonomous driving capabilities and air suspension. Hongqi claims a 600 kilometer range and a 0-100 in 4 seconds.

The E115 is the first Hongqi fully designed by former Rolls-Royce design director Giles Taylor, who is working for Hongqi now. There are defenitely some Rolls-Royce design clues on the E115, especially from up front, but overall is seems a great looking car.

Hongqi calls their new design direction ‘Smart Blade’, which sounds very cool. May there be more.

Geely has been on an acquisition spree and already owns a stake in Daimler AG and owns Volvo Cars. The company has now helmed a round of investment which raised 50 million euros (USD 55 million) to help Volocopter launch its VoloCity air taxi on a commercial basis within the next three years, according to a Bloomberg News report. Geely and Volocopter will form a new joint venture firm that would eventually bring flying cars to the Chinese market.

Volocopter is also involved in talks to raise even more funds by the end of 2019. Daimler has owned a stake in the company from 2017.

Geely’s investment makes sense in light of the fact that China is trying to get more motorists to swtich to the use of more environment friendly vehicles in a bid to reduce the massive levels of air pollution and the country’s dependence on oil supply from overseas.

Li has been diversifying Geely by venturing into different fields like microchips and low-orbit satellites. Back in 2017, Geely had announced that it was acquiring American firm, Terrafugia which had ambitious plans to commercialize a flying car by 2019. Geely had also finalized an agreement with China Aerospace Science and Industry Corp., which is owned by the Chinese government to build “supersonic trains” using homegrown technology.

“Geely is transitioning from being an automotive manufacturer to a mobility technology group,” Li said.

Many other companies are working on their very own versions of “flying cars” with the most mentionable being Toyota, Uber, Airbus SE and Boeing. Japanese company, NEC Corp. just last month made a flying car that managed to hover over the ground for about one month.

Mr. Mansoor Rizvi, a member of our editorial board travelled to Sukkur to take this very important interview from Mr. Hassan Chachar (Senior Vice President Sindh Chamber of Agriculture) to apprise our readers about the state of Agriculture in the province of Sindh. Automark is very thankful to Mr. Chachar for giving his precious time for an interview. He has shed light on many important techniques in agriculture that are not happening thus needing immediate attention by the Sindh Government to improve agriculture in the province. We trust that the honorable Chief Minister who is a very qualified person, a position holder in civil engineering from NED, and a graduate of Stanford University will immediately take notice of the concerns discussed in the interview.

Q1. What are the basic issues that we are facing in agriculture in Sindh?
A. There are many issues but the main oneis the non-fixation of commodity prices(agricultural products) by the Government. This has not been done for the last many years. As a result, our farmers face a lot of difficulty in marketing their commodities (Wheat, rice and sugarcane) in the absence of support prices. They are then left at the mercy of marketers and subsequently become a subject of massive exploitation by these profiteers. While the government does not fix the prices, so they do not purchase wheat from the farmers. This situation has further been exploited by the agents. Some ten years back Govt use to fix prices of various commodities.This year sugarcane prices were fixed at 182Rs/maund but sugarcane mill owners did not honor it. The millowners even did not make the payments to the growers of the prices they agreed to pay. They finally paid whatever they liked to with full of harassment and blackmailing to growers.Also, the rice growers met with the same fate and badly exploited by the agents (shopkeepers).
The situation of farmers is very dismal,they are suffering losses of millions of Rupees due to no support prices, exploitation by the hands of agents, high input cost, shortage of water, adulterated pesticides and high cost of fertilizer. Sindh is also suffering due to water scarcity because its justifiableshare of water is not given due to poor water management by the Government. The shortage of water is turning agricultural lands of Sindh particularly at tail end barren. The government machinery of Sindh is no good to check the sale of adulterated pesticides and seeds causing tremendous loss of yield and brings huge financial losses to the farmers. Fertilizer prices are out of reach of farmers because fertilizers companies increase prices without any justification. The retailers took its advantage and add further into the price. This makes farmers life difficult because they are compelled to pay high prices. Most of the time they are not able to apply prescribed amount of fertilizerwhich compromise yield. In a nut shell government do not support small growers (around 93% farmers own up to 12.5 acres of land) in terms of loaning. No subsidy is given to support agricultural mechanization (Tractors, tube well, Harvesters and other related agricultural equipment.

Q2. How these issues could be resolved?
A. Sindh Government does not have any concrete Agricultural policy. There should be a proper agricultural policy document to be drafted involving all the stake holders to achieve a unified approach as what steps to be taken to improve, strengthen and reinforce agriculture in Sindh. Unfortunately, the controlling authoritiesto check adulterated pesticides, seeds and other vital agricultural inputs are either non-functional or not very upright to perform their task honestly with due diligence. Unfortunately, those who matter care less about national development and its prosperity rather personal gains and benefits. In fact, easy loaning facility should be provided to small growers (responsibility of Sindh/Federal Government) to encourage them to grow more. Production loans are given to some extent, but development loans are totally non-existent on the pretext that loans will be mis-utilized, and recovery would be difficult or rather impossible from farmers (small and moderate farmers) so theyare not given any loans. This tendency is causing huge loss to agriculture and nation. We have around 90% small farmers owning less than 12.5 acres. However, if we analyze the bad debts situation it’s all coming from politicians, big businesses and big landlords. Some 15 years ago small growers were given loans which has resulted in improvement in Agriculture. Since our Governments started giving loans tobig people instead of small growers the bad debts increased manifold and banks were left with no money to disburse to small growers. There is a tremendous potential of fish farming, poultry farming and livestock that could be carried out by small farmers provided easy loans are offered to them. Various foreign companies have offered 30% Equity-70% foreign investment proposal to materialize these projects. The reason it did not work out because small farmers do not have money to even pay their 30% share.

Q3. Why particularly Sindh province is behind in Agriculture comparing to neighboring province? What is your professional advice to Sindh Government?
A. The answer is very simple, Sindh Government has never tried to understand the issues of small and medium growers, you can say lack of total awareness about the challenges being faced by the farmers. Sindh growers were never provided any technical assistance to learn new farming techniques. They have no laser levelling while with a little exaggeration I can say Punjab is now fully laser levelled. The agricultural extension department is not performing their duties effectively as a result farmers knowledge on agriculture like right sowing/harvesting time, need of fertilizer (right quantity), selection of proper seed and quantity is not known to them. No check on the sale of adulterated pesticides, seeds and fertilizers. You must have heard that many a times our rice crops got destroyed completely because of the adulterated pesticide application. You can compare the yield of different crops in Sindh with Punjab. The difference is almost double.

Q4. What are the main reasons of water crises in Sindh? What could be the possible resolution?
A. Small Dams should be constructed in Sindh to store water. This will help in mitigating the water shortage in Sindh. Another major area of concern is due to the sheer violation of inter-provincial agreement by the Indus river system authority. According to the agreement Thal and Chashma link canals are flood canals, water will only be released to Punjab from these canals when (source of water is Tarbela Dam ) all barrages of Sindh got full supply or there is an emergency flood situation(water exceeds capacity of canals). On the contrary, Punjab keeps these canals running which helps irrigating their barren areas while Sindhnot only get deprived of their legitimate share but gets no water at the tail-end. It was agreed at the time of the construction of these canals that water to these canals could be released only with the consent of Sindh. But during the rule of Gen Zia, Punjab Governor Gen Ghulam Jilani refused to accept the agreement and ordered water release. During the tenure of previous Government when the KP government was under Imran Khan did not support the Sindh stand because Mr. Khan wanted to construct the Kalabagh Dam. Sindh Irrigation department, unfortunately, miserably failed in pursuing this matter efficiently and effectively with the Government. This is due to lack of national approach in them. Their focus is to oblige big landlords to gain personal favors instead of raising voice for poor peasants. Concisely speaking all minors in Sindh (tail-end) are suffering with acute water shortage.

Q5. What is your point of view about the construction of Kalabagh Dam?
A.There are many for and against points about Kalabagh Dam. Sindh, Balochistan, and Khyber Pakhtunkwa are generally not in favor of Kalabagh Dam. This could be better described by quoting the common man saying that “Construction of Kalabagh Dam will turn Sindh and Baluchistan into desert while KPK will be submerged into water.
In my opinion the major road block is the trust deficit. In view of my above description where trust is being breached by running the flood canals to deprive Sindh of its legitimate share of water, who will guarantee that this will not be repeated after the construction of Kalabagh dam. Geographically the location of Kalabagh dam is more favorableto conveniently construct parallel canals from there. The opening of the canals from Kalabagh dam will be extremely brutal for Sindh and literally this will turn this province into desert. Other than this there are many socio-economic and political reasons that are not favorable for Sind. The Sindhi wetlands such as the Keenjhar and Haleji Lakes will dry up. Kalabagh Dam has the potential to make the agrarian Indus Basin barren and unproductive by preventing flooding and situation in riverine areas. It will also damage to the Indus Delta and animal habitat.
However, we are greatly in favor of the construction of Bhasha Dam because the terrain in the surrounding is not very conducive to take out canals to steal our water.

Q6. It is said that Feudal in Sindh and Sardars in Baluchistan are the real reason of the poor state of these two provinces. Is this true? What is resolution in your opinion.
A. No one can deny it, but we must understand that it’s due to their insecurity coming from the feeling that by developing these areas their hegemony will be jeopardized. What could be done to eliminate this fear from their head? The only answer is education. At present the state of education in Sindh is very dismal because besides having schools, colleges and universities in the province the standard of education is so poor that it became difficult to differentiate between an educated and non-educated person. This has happened in the past 20 years due to greater involvement of political parties in the educational institutes.

Interviewed by: Mansoor Rizvi

This investment will enable the electric vehicles with 800V to reduce charging time significantly by a charging capacity of up to 350 kW, claims Hyundai in a release.

Hyundai has invested in IONITY to enhance the availability of electric vehicle charging network in Europe, informed the South Korean automaker in a release.

The brand joins the IONITY in cooperation with founding partners BMW Group, Daimler AG, Ford Motor Company and the Volkswagen Group with Porsche AG.

As Hyundai claims, this investment will enable EVs with 800V to reduce charging time significantly by a charging capacity of up to 350kW. It also says that the commitment to the electrification of the European transport sector relies on international cooperation across the automotive industry.

Under the agreement, Hyundai and Kia will play a key role in further enhancing the availability of EV charging stations with additional convenience benefits for its customers. Starting in 2021, Hyundai and Kia electric vehicles will be equipped with 800 volt charging systems to accommodate IONITY’s maximum charging power of 350 kilowatts.

The Hyundai and Kia customers will be able to use IONITY’s HPC facilities, which are equipped with digital payment options, to significantly reduce charging times and better facilitate long-distance travel.

The IONITY is a joint venture established in 2017 between BMW Group, Daimler AG, Ford Motor Company, and Volkswagen Group with Porsche AG. The company currently has nearly 140 charging stations across Europe and 50 more are under construction.

It is expanding the charging network to 400 fast-charging stations by 2020, with an average of at least one site every 120 kilometres along major European highways.

Thomas Schemera, Executive Vice President and Head of Product Division at Hyundai Motor Group, said, “Our participation in this joint venture reaffirms the Group’s commitment to future electromobility. I am confident that our work with IONITY will open a new era of high-power charging experiences, where charging will be seamless and easier than refuelling for our customers.”

Courtesy: https://auto.economictimes.indiatimes.com/news/aftermarket/hyundai-invests-in-ionity-to-expand-ev-charging-network-in-europe/71045967

Kia Picanto’s booking which was awaited by the Pakistanis will start next week. The cars, however, would be seen on the roads in November or December most probably as per industry sources. 

Kia Picanto was displayed to the Pakistani audience at Pakistan Auto Parts Show (PAPS) 2019. The Kia Picanto is a small city car produced by the South Korean manufacturer since 2004. It is also known as Kia Morning in its homeland South Korea and few other markets.

The Picanto about to be launched in Pakistan happens to be the second generation TA series which was sold in international markets from 2011 to 2017. The variant which will be introduced in Pakistan will be locally assembled, however the percentage of local parts still remain to be unknown. 

The second-generation Picanto was a massive dive forwards as compared to the first generation, designed under the supervision of Peter Schreyer who is the former designer at Audi and the current at Hyundai and Kia.

The Picanto making its way in Pakistan is has a 999cc engine with a horsepower of 68hp and has a great fuel economy which happens to be 23-25km/Liter. Moreover, the EURO-6 compliant engine is quick and responsive.

Picanto is going to introduce us to some exciting features. It is an entry-level 5-door hatchback with a wheelbase of 2400mm which provides optimum control over the car

The hatchback comes in 1.0-liter engine mated with a 5-speed manual transmission and a 1-liter engine which is offered under the optional automatic transmission. Although the car comes airbags that are a basic safety feature it won’t have the spear wheel at the back which is quite the need on Pakistani roads. 

Studying the features it seems like the car is directed to compete with Suzuki’s Wagon-R and Cultus. With an advantage of its economic fuel offers and an impressive interior and exterior tailoring. It might prove to be just the competition KIA needs to beat the popular Suzuki models

However, the price of the model has not been yet set for end-users and they will be announced with the booking.

Our fair idea is that the price would be around 1.6mn+ and the booking is starting from mid September 2019.

However, the marketing expert opinion says it would be around 1.7mn at the booking (introductory price) and then later 1.9mn after the release. It remains to be a mystery until the company makes the official announcement.

However, the price would determine how serious of a competition Kia Picanto can be in the market. Possible chances are that it would be able to create some serious stress lines for Suzuki in the small car segment.

But alas, only time will tell how Kia’s entry in the market after a decade with Picanto will prove to be.

by Hawwa Fazal