SEOUL — Hyundai Motor Co., which is reeling from tumbling sales in China, is considering cutting capacity at its factories in its biggest market, CEO Wonhee Lee said, according to two people with direct knowledge of the matter.

Lee made the comments at a meeting with analysts and investors on Wednesday, the people who attended the event told Reuters.

He told the meeting that the automaker is considering addressing overcapacity at its old factories in China, while slashing headcount in the country, according to a note from one of the people which was seen by Reuters.

A Hyundai Motor spokeswoman said that the automaker is “reviewing various optimization plans to enhance facility efficiency” and has begun voluntary retirement for employees in China.

China’s auto industry, the world’s biggest, is slowing after strong recent growth, with demand hit a weakening economy and the fallout of trade frictions with the United States. China’s car sales fell 2.8 percent in 2018, marking the first contraction since the 1990s, according to industry association data.

Hyundai’s China sales sank 23 percent in the fourth quarter amid a lack of attractive models and strong branding in the face of competition from both Chinese and global car makers.

Lee said Hyundai is also considering shipping vehicle kits from China to Philippines, South America and other countries for local assembly, the note said.

He said that GM, Ford and Honda are also slashing global excess capacity, the note added. Lee said globally automakers have the capacity to produce 135 million vehicles a year, 31 percent higher than the industry demand of 95 million vehicles, according to the note.

This article was originally published by Google.com. Read the original article here.

The reason behind the increase in prices is due to the devaluation of the Rupee against the Dollar. The cost of imported automotive parts has increased, thus the price hike.

Reportedly, the company has already made the new prices effective of March 1st, 2019. A notification has been circulated to all dealerships across the nation.

The motorcycles are assembled locally, however, most parts are imported and as the rupee’s value falls down, the import bill increases. The company told that it passed down the increase in import bill to the customers. Due to the Rupee being the weaker currency, the price of the imported parts has become more expensive, thus the increase in the price of the vehicles.
Reportedly, Honda increased Rs.400 on all of its bike models.

After the price hike, the models will be sold at following prices:

· CD-70: Rs 70,500
· CD-70 Dream: Rs 74,500
· Pridor: Rs 96,500
· CG125: Rs 116,500
· CG 125S: Rs 134,900
· CG 125S (Special Edition): Rs 136,500
· CB 125F: Rs 159,900
· CB 125F (Special Edition): Rs 161,900
· CB150F: Rs 191,900
· CB 250F: Rs 640,000

In the past couple of month, almost all the auto manufacturers in Pakistan have raised prices due to the devaluation of the Rupee against the US dollar.

by Aqsa Mirza

Volkswagen announced recently, that it will be creating a new entry-level brand called Jetta, which will launch in China in the third quarter of 2019. VW has decided to start a new brand due to the fact that a large portion of the Chinese automotive market is in a segment below its main volume segment. Hence, the Jetta brand is being created specifically for the Chinese market so that VW can attract customers from entry-level segments (in which 80 percent of customers are first time buyers). It is worth mentioning that Volkswagen has a sedan in its international car line-up that goes by the same name as the new brand.

 The Jetta brand’s cars will be produced by the FAW-Volkswagen joint venture. FAW (First Auto Works) is a Chinese state-owned automotive company. The brand will initially offer three vehicles in its line-up, which will include one sedan and two SUVs. The sedan and one of the SUVs have already been revealed in images. The sedan appears to be a rebadged Jetta, while the SUV vaguely resembles the Seat Ateca. According to VW, by the end of the year, Jetta is expected to have around 200 dealerships in China.

At this point, VW has not announced if any of the cars will be electric, though in all likelihood an electric car will be offered by Jetta as the Chinese government requires companies to make and sell a certain percentage of zero-emission vehicles.

Tokyo, Feb. 27 (Jiji Press)–Toyota Motor Corp. <7203> informed Japan’s transport ministry Wednesday that it will recall a total of 13,391 vehicles from five Lexus luxury brand models for free repairs.

Work to attach tires to wheel rims was not conducted properly, possibly causing the vehicles’ driving stability to be impaired, according to the leading Japanese automaker.

The five models are the LS500, the LS500h, the IS300, the IS350 and the IS300h. The vehicles subject to the recall were manufactured between August 2017 and July 2018.

According to the ministry, 24 related problem cases have been reported so far.
The vehicles may generate abnormal noise or vibrate, and part of the tires may come off, the ministry said.

Source : The Jiji Press, Ltd.

Atlas Honda has launched a new variant of CG 125 with self-start option for its customers in Pakistan. The variant comes with a price tag of PKR 135,500.
As per the details, the self-start variant CG 125 S is equipped with a 5 gear transmission and available in two different colors, black and red.

In January 2019, Altas Honda has also Introduced also CB 125F in Pakistan. The bike comes in two different variants; basic and special edition. The bike has a 5-speed gear transmission and a fuel tank capacity of around 12.3 liters. It has been shipped in various colors including Red and Black. The price of the special edition is Rs.161,900 while the basic variant comes with a price of Rs.159,900.

by Aqsa Mirza

Meezan Bank, Pakistan’s leading Islamic bank and the Best Bank in Pakistan has recently signed a Memorandum of Understanding with Master Motors Limited (MML) and Master Motor Company Limited (MMCL).

Both the companies are subsidiaries of Master Group, the makers of Master Molty Foam. MML has recently signed a Joint Venture agreement with No 1. Chinese passenger car brand “CHANGAN”. MMCL is the manufacturer of global leading Commercial Vehicles (Trucks and Buses) of renowned Brand like FOTON, YUTONG, FUSO, IVECO from China, Italy & Japan.

Under this MoU, both parties agreed on a joint campaign to promote the “Changan Karvaan” Passenger minivan under “Car Ijara”. The “Karvaan” is a modern and spacious multi-functional minivan for the middle-income group having Pakistan’s most powerful 1.0L engine, spacious 7 seats and powerful Dual AC. The Bank, in turn, will get the opportunity to couple this provision with an attractive financing package including range of additional services and benefits like early vehicles delivery as well as free initial services for its customers.”

Master Motors Limited holds a category-A Greenfield status under Auto Policy 2016-2021. Its manufacturing plant is near completion in Karachi with a production capacity of 30,000 units/year. Changan has chosen Pakistan as their only export base for the right hand drive (RHD) countries.

The signing ceremony took place at Meezan House, Meezan Bank’s Head Office, Karachi. Mr. Irfan Siddiqui – President & CEO, Mr. Arshad Majeed – Group Head Consumer Finance of Meezan Bank Ltd. Mr. Nadeem Malik – Chairman and Mr. Danial Malik – CEO Master Motors Limited attended the ceremony with their respective teams. MOU has been signed by Mr. Irfan Siddiqui and Mr. Nadeem Malik.
Mr. Irfan Siddiqui, President and CEO of Meezan Bank Ltd, further added “The automotive industry will be boosted with the new automotive competitor in Pakistan. Meezan Bank provides our customers quality financial services platform”.

Source: Changan fb page

On 23 Feb, Hyundai-Nishat Motor (Private) Limited officially inaugurates Digital City Store at Emporium Mall, Lahore to offer car enthusiasts a matchless experience through realistic 3D screens and huge floor-to-ceiling video walls.

This is the first time that any automotive brand in Pakistan has introduced the idea of a digital store. The digital store is an innovative automotive retail concept that will feature a 3D technology to grab the attention of users and to enhance customer buying experience. Prospective customers will be able to go through an easy to use dashboard which will enable them to see a 3D model of the Hyundai cars. The dashboard will also show real-time information such as the functions, features, specifications and much more of Hyundai cars.

The inauguration of the digital store also Unveils Hyundai’s most popular cars to Pakistan; the Santa Fe and the Grand Starex;

• Hyundai Santa Fe is a 7-seater sporty vehicle, and it is among Hyundai’s most popular and trendy SUVs. It is available in seven different models across the world.

• The 12-seater, Grand Starex; a premium transporter that is designed to provide superior comfort and convenience to the users. It has lots of space to accommodate a big family along with the luggage on longer journeys. Hyundai also announced its plan to launch Grand Starex van 2.4l in Pakistan starting from 3.99M to 5.2M only.

Talking at the opening, Chief Operating Officer of Hyundai, Mr. Tatsuya Sato stated, “I welcome all of you to the launch of our Hyundai City Store, which is our first achievement in Pakistan. This is an initial step of our incredible voyage to furnish our clients with a top-notch involvement. This specifically computerized showroom is a one of a kind idea store hoping to offer clients a well-disposed condition wherein they can investigate Modern Premium Hyundai Vehicles. Our vision is to end up the most “esteemed” and “cherished” car brand and reproduce the worldwide accomplishment of Hyundai in Pakistan.”

Automotive enthusiasts and the public have warmly welcomed the launching of the digital store in Pakistan as they are ready to experience an exciting journey ahead.

The partnership of Hyundai and Nishat is a positive development for the Pakistani auto industry as it will break the monopoly of three Japanese automakers including Indus Motors, Pak Suzuki Motors, and Honda Atlas which has dominated the local auto industry since past three decades.

In the future, Hyundai also plans to bring more famous models in Pakistan. Their target is to set new records of service and technology in automobiles industry.

by Aqsa Mirza / Hanif Memon

Just two months after the debut of the Geely Boyue-based Proton X70, it appears that Proton is busy testing another upcoming model.

This time around, our friends over at Automachi published photos of the Geely Binyue somewhere in Melaka.

As evidenced by its prominent rear wing and quad muffler tips, seen here is the Sport variant of the Geely Binyue.

To recap, the Geely Binyue rides on the company’s new BMA platform, with two engine choices available. The first is a 1.5-litre turbocharged three-cylinder petrol that does 177 hp and 255 Nm, hooked up to a 7-speed dual-clutch transmission. The other engine is a 1.0-litre turbocharged three-cylinder that outputs 134 hp and 205 Nm, mated to a 6-speed manual transmission.

Geely also mentioned that the Binyue was tested extensively across Asia, Africa, Europe, and North America, clocking over 12 million km for the engine and more than 6 million km for the dual-clutch transmission, ensuring the powertrain’s reliability across the globe.

In China, the Geely Binyue is priced from an affordable CNY 78,800 for the base 1.0-litre turbocharged model, while the more powerful 1.5-litre turbocharged model is priced from CNY 88,800. Just for comparison, the Geely Boyue (Proton X70) is priced from CNY 129,800 for the base model.

Considering the quantum in price gap between the Binyue and Boyue in China, Malaysian consumers can expect the upcoming Binyue-based Proton model to have a ballpark price very close to that of the Perodua Aruz (Priced from RM 72,000).
When the model is launched later this year, it will be challenging the likes of other subcompact SUVs, such as the Honda HR-V, Mazda CX-3, and Toyota C-HR.

Over 70 Chinese companies will participate and exhibit their products in the three-day Pakistan Auto Show scheduled to be held at Karachi Expo Center from April 12 to 15.

“More than 70 companies manufacturing motorcycles and its different parts and automobiles will showcase their products in the show to be organized by Pakistan Association of Automotive Parts and Accessories,” a senior official at Embassy of Pakistan informed here.

He said the government would provide all possible facilities to these companies during the auto show.

China Auto Modification Accessories Association Vice President Zhang Yazhu who purchased 85 booths for Chinese companies to display their products at the exhibition said more companies were willing to participate in the auto show.

She informed that some big companies particularly Congqing Zongshen Group, Chongqing Shun Hong Import and Export, Fujian Dongya Machinery and Shandong Province Liangshan Shenli Auto would also be participating.

These companies were manufacturing motorcycles, motorcycle engine and body parts and piston rings for motorcycle, automobile, and generators, she added.

Zhang, who had been regularly facilitating Chinese exhibitors to participate in the Pakistan Auto Show since 2016, said, the number of Chinese exhibitors kept growing tremendously during the last three years.

“We bought three booths in the auto show held in 2016, 68 booths in 2017 and 81 booths in 2018,” she added.

Pakistan Auto Show is the pioneering trade exhibition for the rapidly developing automotive aftermarket in Pakistan.

The largest exhibition of automobiles in the country will feature a display of the full range of motor vehicles parts as well as components for the drive, chassis, body, electrics and electronic groups, as well as equipment for vehicle service and repair, bodywork repair and painting, tyres and batteries.

The last year’s auto show held in Lahore attracted more than 200 companies, comprising 125 domestic enterprises and 78 international exhibitors.

The international exhibitors included renowned companies from Japan, China, Germany, France, Turkey, Thailand, Taiwan, England USA, UAE, and Sri Lanka.
The event also featured more than 275 international buyers.