Automark

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.

by Amara Aqsa

Electric vehicles are all the rage these days for their immense benefit to climate change and global warming. Likewise, Government of Pakistan is also taking serious measures to fight air pollution and climate change through the introduction of electric vehicles in the country. A meeting at BIO (board of investment) was held on May 29, 2019 in this regard. The Ministry of climate change has formulated a policy regarding the vehicles sold in the country; with an expected annual income of Rs 110 billion.

The Government has also decided to introduce 100,000 new electric vehicles such as cars, vans and small trucks under a five year mid-term plan from 2020. A target has been set to convert 30% sales of yearly 60 thousand vehicles to electric cars by 2030 and about 90% vehicles to electric cars by 2040. According to the electric vehicle policy draft prepared by the Ministry of Climate Change, the government has also set a target of introducing 500,000 two, three and four wheel drive electric vehicles in the next 5 years under the long term plan. The policy also includes increasing the annual 900,000 sales of 2, 3 and 4 wheel drive vehicles to 50% as electric cars by the year 2030 and about 90% by the year 2040.

The introduction of electric cars is expected to fight against increased air pollution in the country, while also contributing towards an economic fuel consumption. Vehicle emission is one of the main contributors to air pollution in Pakistan which also negatively affects the growth in the agriculture sector.

Although PM Imran Khan has approved the concept, it will be presented to the cabinet in 2 weeks. The electric vehicle policy is a tough ask for the government due to immense market barriers. There is no proper charging mechanism, revenue collection, import duty statistics and infrastructure for self-assembly industry in place in the country.

The automobile industry has already opposed the decision considering it as a contradiction of Auto-Industry Development Policy 2016-21. They have also emphasized that the electric vehicle policy in Pakistan is relying mainly on imports instead of the local automobile market unlike countries such as the US, India and China which have a proper policy in place to also offer a healthy growth for their local automobile market.

Existing car assemblers were not much interested in the formulation of a separate policy for Electric vehicles. On the contrary, the new auto investors looked quite interested in working with the Electric vehicles and EV policy draft that has been set up so far. The new auto investors under the new auto policy-2016-21 includes the likes of Sazgar Engineering, Topsun Motors, Khalid and Khalid Holding, Ka Hanteng Motor Company are much interested to introduce EV in country.

Stakeholders also urged the government to consider some policy regarding the age limit of old vehicles running on roads especially heavy vehicles such as trucks which cause a lot of carbon emission.

Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) former chairman Mashood Khan is of the view that the country needs to put a proper infrastructure such as electric charges in place before bringing the electric vehicles. He suggests government to gradually introduce electric cars over a period of seven to ten years under long term planning. Auto-Industry experts also want the imports to be reduced to 30% components with remaining 70% to be manufactured by the local automobile authorities of Pakistan.

Written by: Muneeza Shahid

Dubai, UAE: Automechanika Dubai 2019, the 17thedition of the Middle East and Africa’s (MEA) largest automotive aftermarket trade fair, was opened today (10th June)by His Highness Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum.

With 1,880 exhibitors from 63 countries spanning 63,300sqmat the Dubai International Convention and Exhibition Centre, the annual three-day event features 23 country pavilions and 34 international trade associations, while more than half of the 32,000-plus trade visitors are expected to come from outside of the UAE.

The biggest names in the global automotive aftermarket will look to make big inroads in a MEA spare parts market and auto services industry that’s estimated to grow by six per cent annually over the next six years.

“Automechanika Dubai over the years has transformed into a trade event of truly global scale, thanks to its continued track record of innovation, targeting and fine tuning its offerings in line with the particular market requirements,” said Mahmut Gazi Bilikozen, Automechanika Dubai’s Show Director.

“We’re confident that demand for the automotive service industry and aftermarket products will remain robust, with growth largely fuelled by demand from existing vehicle parc and the expected improvement of car sales moving forward.

“With that said, the aftermarket is changing, and with that change comes new opportunities. Our vision for Automechanika Dubai is to be at the forefront of these new opportunities, presenting a unique platform for all industry stakeholders to start discussions, plan ahead, and to ultimately lay the foundations for long-term sustainable success.”

Automechanika Dubai 2019 covers the six major product sections of Parts & Components and Electronics & Systems (1,181 exhibitors); Accessories & Customizing (246 exhibitors); Tyres & Batteries (226 exhibitors); Repair & Maintenance (155 exhibitors); and Car Wash, Care & Reconditioning (72 exhibitors).

It opens as the MEA’s auto aftermarket, valued at US$61 billion in 2018,is estimated to continue its upward trajectory, valuing US$87.3 billion in 2024, according to analysts TechSci Research.

Organiser Messe Frankfurt Middle East also added new sub-sections that underline the show’s evolution, namely Agricultural Parts & Equipment; Body & Paint; Motorcycle Competence; and Oils & Lubricants.

Exhibitors are keen to use Automechanika Dubai’s impressive regional scope to reach out to far-flung markets. Emerald Spare Parts, based in the UAE and distributors of auto parts, batteries and lubricants for Japanese and Korean cars, is looking to reach new markets.

Rajesh Daga, Assistant General Manager of Emerald Spare Parts said: “The majority our business comes from the Middle East and Africa, where we’ve been traditionally very strong. Demand in these markets have been growing at a fast clip, and we’ve also evolved keeping in mind the intricacies of working in these markets.

“We feel some of these markets are maturing and also becoming financially stronger. Hence, we feel high quality products that we represent, will have a greater demand and consumption.”

Balkrishna Industries (BKT) is a manufacturer and exporter of Off Highway Tyres, and one of the headline returning exhibitors to Automechanika Dubai in 2019.

The Indian-headquartered BKT is one of the world’s fastest growing companies in the OHT segment, with a 5th manufacturing facility planned in Tennessee, USA. “This will be the first BKT manufacturing facility outside India, and will be helpful in increasing our presence in the American continent,” said Rajiv Poddar, Joint Managing Director of BKT.

“BKT growth will be mainly coming from the All Steel OTR (Off-The-Road) radials as this the fastest growing segment for BKT. Owing to the sustained market demand, BKT will also grow in Construction and Industrial tire segments with its vast product range.

“At Automechanika Dubai 2019, BKT is launching its first “On & Off road” Tipper tire 12.00R24 in SR423 pattern. In addition, some important sizes in Multi-Purpose Truck segment are being showcased. BKT is also expanding its range in Solid tire segment where 4.00 – 8 ECO Rib pattern has been introduced for Ground Support Equipment and 7.00 – 12 Maglift ECO pattern as a high performance tire for Forklift and Material Handling,” added Poddar.

Elsewhere, Polish manufacturer Troton is a headline exhibitor in the new Body & Paint section, and is launching its Brayt line of polishing compounds and the Rangers bed liner.

“The weather in this region can be harsh on the car, what with the intense heat and dusty conditions,” said Karol Duda, Director of Business Development at Troton.

“Applying Braytprotect a car’s exterior from road dirt and the sun’s harmful UV rays.Polishing systems are recommended for fresh and old paint coatings and easily removes scratches and traces ensuring the achievement of the perfect glossy finish. Optimal modern formulation prevents surface overheating and allows for easy cleaning.

“The Rangers bed liner is designed to protect the underbodies of vehicles to be used on wheel house liners, tub liners, fender flares, bumper bars and industrial applications. We started out as an easy way for truck owners to protect their cargo area, however it’s grown to be more than that. Today, Rangers is in use in all kinds of industries from automotive restoration, off-roaders,bikes, agricultural, and even with heavy equipment,”Duda added.

A key returning highlight to Automechanika Dubai 2019 this week is the Innovation Zone, a dedicated area at the centre of the show floor featuring presentations and product showcases from exhibitors such as Wabcoand FSE that are steering the course for the regional and global automotive aftermarket.

Other features include the Truck Competence initiative, where 1,260 exhibitors are showcasing their products dedicated to the entire value chain in the truck sector, from truck parts and accessories, to workshop equipment, body repairs and care.

The Automechanika Academy (AA) also returns, featuring key presentations such as Dubai’s auto parts and accessories trade in 2018 by the Dubai Customs, along with the findings of a survey exploring innovations in the Middle East automotive industry by global research company Explori.

Other AA highlights include a series of sessions by AMENA and Tiqani, as well as AfriConnections, which explores rising opportunities in the African aftermarket.

• Press Release

About Belt and Road Initiative (BRI)

I had been a member of Pakistan business delegates during 26 April to 28 April 2019 in China organize Belt and Road Forum at Beijing. The Belt and Road Initiative is a grand strategy to manage global deficits, platform for international cooperation and an internationally acclaimed and public good.

Countries heads, diplomats and politicians from Pakistan, Russia, Turkey, Malaysia, Indonesia, Hungary, Vietnam, United Arab Emirates, Belarus, Mongolia, Tajikistan, Cyprus, Uzbekistan, The Philippines, Kenya. Serbia, Egypt, Papua New Guinea, United States, Germany, Italy, Ireland, Cuba, Austria and list goes on..

Twenty-nine international organizations and 126 countries, including developed and developing nations, have signed 174 cooperation documents with China on the BRI. From 2013 it has been transformed from an ambitious plan into concrete results. The trade volume between China and countries and regions participating in the BRI has excesses $6 trillion, according to the National Development and Reform Commission, the country’s top macro-economic regulator.

FDI in the countries along the Belt and Road has increased. According to Ministry of Commerce (china) data, from 2013 to 2018 Chinese enterprises invested more then $ 90 billion in countries along with the BRI at average annual growth rate of 5.2 percent. The investments in BRI projects have not only boosted global investment, but also created more growth.

According to a world Bank research report, the transportation projects under the initiative’s framework, once completed, will reduce the shipment time and trade costs for BRI between 1.7 percent and 3.2 percent, and 1.5 and 2.8 percent. The initiative will also help increase actual income growth in local areas by 1.2 to 3.4 percent and global income growth by 0.7 to 2.9 percent.

Just three days, more than $64 billion in deals were signed at second Belt and Road Forum, parties reached 283 pragmatic outcomes, including intergovernmental cooperation agreements, cooperative projects and the launch of multilateral cooperation platforms. That show Belt and Road conforms to the trend of the times, wining the hearts of the people, improving livelihood and benefiting the whole world.

(Reference from The author is the founder of the centre for China and Globalization, a Beijing-based non-governmental think thank. CHINA Daily )

CHINA President point of view:-

President China Mr. Xi said BRI is an initiative for economic cooperation, rather than a geopolitical alliance or military league. It is an open and inclusive process rather than an exclusive bloc to differentiate countries by ideology or play a zero-sum game. Belt and Road construction should pursue higher-quality development. This requires more efforts to properly address key issues, such as major projects, financial sup-port, investment environment, security and risk management with focus on infrastructure construction and production capacity cooperation.

The results from the BRI open up more space for global economic growth build a platform for international cooperation and make new contributions to the building of community with a shared future for mankind.

BRI cooperation projects will be market-based. To ensure sustainable development, the leaders agreed to promote a level playing field for business communities and create a                                non-discriminatory business environment.    

Countries Leader point of view:-

Serbia: President Aleksandar Vucic said firmly supports and proactively takes part in Belt and Road cooperation and the major cooperation projects including a Chinese-invested steel plant and has greatly promoted the economic development id Serbia.

United Arab Emirates: Vice-President and Prime Minister Sheikh Mohammad bin Rashid Al Maktoum said the visit by Mr. Xi last year was a huge success and provided a boost for the development of bilateral ties.

Indonesia: Vice President Jusuf Kalla said his country stands ready to strengthen exchanges and cooperation in trade. Investment and education, and promote cooperation in Indonesia regional comprehensive economic corridors. 

Malaysia: Prime Minsiter Mahathir Mohammad said Malaysia will move China ties to a higher level. The BRI not only helps solve problems of infrastructure connectivity, but also helps address unbalance development, the initiative is conducive to promoting dialogue between different culture, and eliminating such problems as conflicts, extremism and terrorism.

Belarus: President Alexander Lukashenko said Belarus trusts China wholeheartedly and will remain a trustworthy friend of China and hopes the China-Belarus industrial park will be helpful in promoting the joint building of Belt and Road in the Eurasian region.

Kenya: President Uhuru Kenyatta said the Belt and Road has enabled different countries to establish even closer trade connections and partnerships, and it has been widely recognized by the international community. It has also helped promote the connectivity and industrialization process of Africa countries.

Egypt: President Abdel Fattah El-Sisi said The first Arab country to have established diplomatic ties with China hopes to align closely its development plans with the BRI and is committed to deepening Africa-China cooperation. Egypt highly commends china for upholding justice in the Middle East issue and hopes China continues to play a constructive role.

BRI 2 – Key features announced:-

Zones Developments:

China plans to further advance the building of economic and trade cooperation zones in countries and regions related to the Belt and Road Initiative.  The country will set up new zones in Pakistan (Haier-Ruba Economic Zone) Africa (China-Egypt Suez Economic and Trade Cooperation Zone), China-Road and Bridge Corporation (CRBC), Southeast Asia, South Asia, Middle East, Eastern Europe and Latin America.

China Railway Express (CRE) :

The train, branded under the “China Railway Express (Changdu)” banner, passed through Germany, Poland, Belarus, Russia and Kazakhstan, and entered China through the Alashankou port in Xinjing Uygur autonomous region. CRE has linked 25 overseas cities and 14 Chinese cities. It has seven international railway channels and 5 international rail-sea combined channels to further open up city. Chengdu geographical advantages and key role in future.

Air Silk Road:

Transport hub in Central China, Henan province is taking advantage of its location to further develop air transportation. Over the past few years Luxembourg and Henan have maintained robust development in trade and have established a long-term partnership with construction of the Air Silk Road. Henan should deepen cooperation with Luxembourg and other European countries. That will bolster its transportation advantage in fields including expanding its network of routes, cultivating special industries and exchanging economic and cultural experience, which will be helpful to construct the Air Silk Road and participate in the BRI.

Green Belt and Road Initiative:

Chinese green bond market became the second largest in the world – after the united Sates- with the issuance of $ 30 billion. China has accumulated experience in mixing policy and finance for green transport and developed leading green mobility technologies, particularly in electric vehicles mobility. These experiences, for example from Shenzhen that financed and now operates 17,000 electric buses and 4,600 electric taxies, or from China Railway Corporation that invested in the construction and operation of the 29,000 kilometre high speed rail network can be useful for greening the BRI.

Who Lead by Banking Initiative:

The initiative is aimed at boosting global growth, it should have a more inclusive definition. Belt and Road International Development Plan to emphasize  its overarching economic goal and remove doubts that China is using it as a tool to expend its influence across the world, there is a need to strengthen cooperation between China and international organizations under the Belt and Road framework, in order to enhance overall multilateral cooperation. For instance, the Asian Infrastructure Investment Bank model could be used to better collaborate with World Bank, Asian Development Bank, African Development, Inter- American Development Bank, European Bank for Reconstruction and Development and other regional and international banks and to provide loans for Belt and Road projects.

Global Scientific Cooperation:

China’s scientific out reach, the nation will need stronger government planning and support, as well as better management and services to over come cultural and legal barriers.

The Chinese Academy of Sciences launched the Alliance of International Science Organizations, the first organization created to connect the scientific communities of participants in the BRI with the goal of improving scientific cooperation, sharing knowledge and promoting sustainable development. The first 37 members of the alliance recently published and action plan for 2019-20. They plan establish a prize for contributing to scientific cooperation within the BRI. New scholarship programs, subsidiary groups on specific issues and new joint talent-training programs. 

• China-Pakistan Joint Research Center on earth Sciences
• CAS Innovation Cooperation in Bangkok
• China-Brazil Joint Laboratory for Space Weather
• South America Center for Astronomy – Chile
• China-Sri Lanka Joint Center for Education and Research
• Sino-Africa Joint Research Center – Kenya
• Southeast Asia Biodiversity Research Institute – Myanmar
• Kathmandu Center for Research and Education – Nepal
• Central Asian Center of Drug Discovery and Development – Uzbekistan
• Research Center for Ecology and environment of Central Asia – Kazakhstan

Chinese artificial intelligence technology demand increased in Europe, the Middle East and Southeast Asia.

(Reference  fromCHINA DailyNewspaper)

Pakistan ready to grab this opportunity:

During the BRI – 2, I observed a lot of countries want to be part of this initiative, those who already are a part of this, are trying to transfer advantages to their own community.

We are pioneer partner of this initiative, and a key stake holder as GAWADER and the route that runs in from Pakistan will give access to the rest of the world but somehow, we are near but not ready to getting the true potential of this initiative.

We don’t have a level playing field in any industry, the trade deficit between the two countries is huge and we have to closely be studied and researched to position our industries in China to get maximum benefit. With the trade wars in place, and Pak China relations on full scale, Pakistan has an opportunity to penetrate in many areas.

Businessman:

I really appreciated our businessman who went with the delegation on self-finance and tried to create liaison with Chinese companies and signed MOU’s. More than 19 projects were signed between the two countries. I would like to advise our businessman, to start preparing and do not be part of these delegations if you have not done your homework. It is really important to have a plan. During the discussions I felt a lack of knowledge and direction. Our businessmen are really depending entirely on the government which is not the correct strategy.

Zones Development:

When I look at our zone developmentit really breaks my heart, I cannot estimate how our businessman will survive. Government departments are not aligned with each other and businessmen getting loses.  Currently there are huge gaps with what is being portrayed and the ground realities that exist in the SEZs of Pakistan. At the moment companies are fighting and running from pillar to post to get basic necessities like Energy, tax exemptions, approvals etc. Second most interesting factor is the basic objective of the SEZs is to attract foreign investment like many developed countries have done in their economic infancy days. Currently SEZs are opening throughout the South Asian region, many developing countries are opting for this model. Their economic indicators are much better than ours then how will the government be able to attract and fill its economic zones? We need to upgrade our Ease of Doing Business Index. This will also help and create an environment of trust for our domestic direct investment to start investing.

Railway:

After 14 years we have a chance to update our railway systems, new routes, and increase efficiency. This Is a basic pillar for development of country to save time from port to plant and it ismoreeconomically to transfer the cargo. The Railway network and system has played a vital role in the development of many nations. Our Ministers signed M1 project and start study M2 during this time hope results will come positively. 

Air Link Development:

Last 10 years we have not developed any remarkable international airport.  Pakistan really needs to step up the process of opening airports in remote regions where economic activity needs to be diverted. This is a huge step what is the plan of the government to make it successful.

Green Belt Development :

Our government has done a good job and we must appreciate the million trees to make. We need to do more onECO City developments. All of our environment protection laws and organizations need to be reactivated to ensure that the future is safe for our children.  Our policies and practices need to reflect environmentally friendly.

Our Banks:

I have experienced to meet our bankers at Beijing, I was totally shocked they are not aggressively working to be strong partner of BRI projects to facilitate our Large &SME businessman,  I would suggest to start the B2B from the finance industry.  But it doesn’t mean  perception will be same here B2B means Bankers and Businessman to select as best projects and involves as a nation, to build and Road Projects for peoples of  Pakistan .

Sciences and Technology:

I am also surprised BRI doing scholarship but from our sides who get these benefits and what outcomes for the nation I lack to understand and see. We should start thinking out of the BOX and we need Mr. Atta ur Rehmans  to come back on the team and this time we will need taking initiatives from the infant stages of education.

Conclusions:

The government needs to Plan, take action and keep a strong follow up on all activities, it will have to take the business community on board, invite technocrats and get this ball rolling. We need to set goals and start the hard work to achieve them. It is a long dark road with a ray of hope along the way but a prosperous  and

One nation and one goal to build our self for the world to provide best serving services, industry, trades, communication and IT. 

By Mashood Khan / Director Export / Mehran Commercial Enterprises

Road traffic accidents have emerged as an important public health issue which needs to be tackled by a multi-disciplinary approach. The trend of injuries and death is becoming alarming in Pakistan. The number of fatal and disabling road accident happening is increasing day by day and is a real public health challenge for all the concerned agencies to prevent it. The approach to implement the rules and regulations available to prevent road accidents is often ineffective and half-hearted. Awareness creation, strict implementation of traffic rules, and scientific engineering measures are the need of the hour to prevent this public health catastrophe. This article is intended to create awareness among the health professionals about the various modalities available to prevent road accidents and also to inculcate a sense of responsibility toward spreading the message of road safety as a good citizen of our country.

Multiple distractions, risk factors
A number of risk factors unique to the teen driver increase the likelihood of crashes.

Teens lack experience, may drive at unsafe speeds and maintain shorter following distances, especially with friends in Pakistan. They can be distracted visually (eyes off the road), manually (removing one’s hands from controls) and cognitively (attention diverted from driving). Electronic devices, such as cellphones, can create all three distractions, a major threat to driver safety. Having friends as passengers also creates distraction.

Use of alcohol, illicit substances and certain medications can impair driving. Although alcohol remains the most common ingested substance resulting in crashes and fatalities for teens, drug-impaired driving is a growing concern, with cannabinoids the most commonly detected substance.

Sleep deprivation also is an emerging factor in motor vehicle crashes, as most Pakistani teens do not get enough sleep. The statement discusses the impact of adolescent brain development and its effect on teen drivers.

Improper Turns, the reason that we have stop lights, turn signals, and lanes designated for moving either right or left as opposed to straight is because when drivers ignore the rules of the road, car accidents are often the result. To prevent a car accident, always look for signs and obey the proper right-of-way before you make a turn.

Road Rage, everyone has been angry at another driver for one reason or another, but some drivers let their rage overcome them. By tailgating another driver in anger or speeding past another driver only to pull in front of them and brake, these road “ragers” cause many needless car accidents each year.

Ignorance of fasten seat belt, is the major cause of deaths during crashes Seat-belts can help to save lives. They are important safety features that, like air bags, help to protect a driver or passenger in a collision and minimize injuries. Those who do not wear their seat-belts while in a vehicle put themselves at greater risk of severe injury or even death. It’s been proven time and again, on back roads and superhighways: A seat belt can save a life in a car accident. According to the National Highway Authority Pakistan (NHA), more than 10,000 lives are saved each year in Pakistan because drivers and their passengers were wearing seat belts when they were in accidents.

Things to always remember for safe ride
Buckle up for the love of your life
• Always wear your seat-belts
• Obey all speed limits and signs.
• Be attentive and drive responsibly.
• Never drive under the influence of alcohol or drugs.
• Understand the safe braking distance.
• Before driving a car, do a simple safety check. …
• When you get into the car, adjust all mirrors and seats before placing the key in the ignition.
• Avoid hard braking, acceleration, and cornering

Courtesy – Originally published at :  https://seriousaccidents.com/legal-advice/top-causes-of-car-accidents/

Eight Pakistani companies are exhibiting at Automechanika which is to be held in Dubai. The event will begin on June 10th and conclude on June 12th.

Automechanicka Dubai is one of the biggest exhibitions related to all automobile; be it auto-parts, auto accessories, tyres, batteries, auto machinery and business solutions etc. Therefore, this will be the 17th exhibition held in Dubai.

Auto industry is a sector that has witnessed major growth in the recent years. Hence Pakistani companies focuses on value addition exports which includes auto parts to contribute to this growing sector.

Last year, this exhibition saw a record participation of 1801 exhibitors from over 61 countries. Moreover, around 31,971 people visited from 146 countries whereas 23 official country pavilions were also part of the show. Even from Pakistan, 600 visitors were present at the exhibition last year.

The Trade Development Authority of Pakistan (TDAP) is arranging a national pavilion in the exhibition in order to represent the eight companies from Pakistan. Few of the companies namely Century Engineering, Ghauri Tyres & Tubes, Multi-tech Engineering, Super Horn and Pakistan Accumulators are going under Pakistani pavilion whereas Daewoo Battery, Panther Tyres and Rastgar Engineering are has their own booth at exhibition ground.

Pakistan Auto Spare Parts Importers & Dealers Association (PASPIDA) has also arranged a delegation in order for their executive members to visit the fair in Dubai.

According to company sources Regal Automobiles, assemblers of Prince Vehicles in Pakistan are opening booking of Pearl in July-2019.

Pearl will be available to the customers in September-2019 while price of the vehicles has not announced yet.

Company has been almost ready to produce and assemble this vehicle in Pakistan at the assembly plant in Lahore.
Few units of the Prince Pearl 800cc hatchback car already reached to Lahore for test drive and marketing purpose as per available information.

Specifications: Prince Pearl 800cc hatchback car
– 796cc water-cooled
– EFI engine
– 40 horsepower
– 60 Nm torque
– Ground clearance: 145mm
– Turning radius: 4.5m
– Gross weight: 735 Kg
– Fuel Type: Petrol
– Steering Type: Rack and Pinion with Electric Motor
– Fuel tank capacity: 27L
– Mileage City: 22 KM/L
– Mileage on Highway: 25 KM/L
– Transmission Type: Manual and Auto
– Seating Capacity: 5 persons
– Top Speed: 120-130 KM/H
– Front Wheel-drive
– Brakes: Front: Discs, Rear: Drums
– Suspension: Front: McPherson independent; Rear: Coil Spring
– Tyres: 155/65R13 etc

Prince Pearl Features
– Power window
– Central locking

• Modern-looking LCD

• Power steering
• Seat-belts
• Aluminium Rims
• Air conditioner
• Heater
• Fog Lamps
• Retractable Mirrors/Power Mirrors

About Regal Automobiles:

Regal Automobile Industries Limited (RAIL), country’s third-largest bike assembler, has set up an assembly plant in Lahore with an investment over Rs800 million to produce light commercial vehicles and vans from April 2018.

The company has signed a technical collaboration agreement with China’s DFSK Group to assemble vehicles under the name Prince.

The Ministry of Industries (MoI) earlier in February in last year had awarded a manufacturing license to RAIL.

DUE TO POOR SALES IN THE EXECUTIVE SEDAN SEGMENT AND MORE AND MORE CUSTOMERS BUYING COMPACT AND MID-SIZED SUVS, TOYOTA HAS ANNOUNCED THE DISCONTINUATION OF THE COROLLA ALTIS FROM APRIL, 2020.

A rather shocking news, but Toyota will be discontinuing the Corolla Altis executive sedan in the Indian market from April 2020, when the BS-VI emission norms come into effect. Toyota also had plans of sharing the Corolla Altis with Maruti Suzuki as part of product sharing deal where a Suzuki-badged Corolla Altis would have sold through the Nexa outlets. With this decision, a Suzuki-badged Corolla Altis will never see the light of day either.

With more and more consumers moving to compact SUV and mid-size SUV segments, the sales of executive sedans have seen a sharp decline. Even Suzuki had second thoughts about how successful a Suzuki-badged Corolla Altis would have been in a dying segment of cars. Toyota was also doubtful that the brand strength may not stretch enough to be able to garner healthy margins.

In the financial year 2019, all the executive sedans witnessed a decline in sales by 30%. This includes the Toyota Corolla Altis, the Hyundai Elantra and the Skoda Octavia. Ironically though, Toyota sold 2,783 units of the Corolla Altis, finishing at the top of the segment. However, the overall numbers are still quite small and there does not seem to be much potential from a Suzuki-badged Corolla Altis as the segment itself has not been doing good at all. Toyota therefore sees no viable reason to upgrade the car or bring a new version of the sedan to India.

The Toyota Corolla Altis comes with a 1.4L diesel engine and a 1.8L petrol engine. With the BS-VI emission norms kicking in next year, there was no point upgrading the BS-IV compliant Corolla Altis to the BS-VI specifications as that would call for heavy development costs and the sales anyway aren’t enough to justify that. Also, the diesel Altis constituted a significant portion of sales for the Altis. With the diesel gone, there was no reason to keep the Corolla Altis anyway.