MAN Diesel & Turbo Pakistan hold Customer Day in Karachi on 29th September-2018
by Automark creative team
United Motors starts bookings for Bravo at Rs. 8.5 Lacs
The newly introduced 800cc United Bravo has been officially launched in Punjab region and booking has been started with PKR 200,000. Car delivery time is approximately 2 months that has been given to customers, as sources said.
The car enthusiasts and the automotive industry are showing a great interest in the vehicle which was recently introduced to break the monopoly of other auto assemblers in the market. While company source also confirmed that dealers have an overcrowded response and they have booked all cars of the quota which they got from the company.
United Motors appointed 6 3S dealers in Punjab region as United Bedian Motor Engineers (Lahore), United Motor Experts (Islamabad), United Faisalabad Motors (Faisalabad), United Meer Motor (Faisalabad), United Jehlum Motors (Jehlum), SMR United Motors (Multan) and many more are in pipeline while they don’t have any dealer in Karachi. As per company policy, all dealers should have facilities of Sales, Service, and Parts (3S).
Launched on 8th September, the 800cc car comes equipped with a 3-cylinder water-cooled Euro II engine with 30 liters fuel capacity, 4-speed manual transmission enabling 60 nm torque and 50 BHP. It also boasts of an electric power steering, inside fuel led opener, power windows, central locking, fog lights, rear-view camera, alloy wheels, and interactive media panel with USB ports. The car comes with a price tag of 8.5 lacs.
Its launch has made a bigger impact in Pakistan’s developing auto market and is expected to push other auto manufacturers to focus on delivering features at economical price instead of the conventional products that have been continuously sold locally.
United Auto Industries (Pvt) Limited is the 1st local brand and 2nd Largest selling brand of United Motorcycles in Pakistan. The Company received Green Field Investment status under new auto policy 2016-2021 from Ministry of Industry and Production in June-2017.
by Aqsa Mirza
Honda Cars recalls for immediate replacement of Takata front airbag inflators in Pakistan
LAHORE (PR) – Honda Atlas Cars Pakistan Limited (HACPL) has announced the range of Honda vehicles in Pakistan which require replacement of Takata front airbag inflators. HACPL strongly encourages its customers for immediate replacement of front airbag inflator at its authorized dealerships as a precautionary measure to ensure safety for its customers. The Takata front airbag inflator (in specified models) may have a probability of malfunctioning if deployed, which can result in a safety risk to vehicle occupants.
The company is offering its consumers free replacement of airbag inflators. Customers can visit nearest Honda authorized dealerships for free replacement/checkup of airbag inflators. HACPL has already sent SMS and direct notification letters to the affected car owners, urging them to contact any authorized Honda dealer nationwide to schedule an appointment or contact Honda Customer care at 0300-8402509 for a free replacement of the affected parts. The replacement of the affected airbag inflator under this campaign will be done free of charge and will require approximately an hour.
Source : The Nation
Toyota car fault prompts massive recall
Japanese car giant Toyota has announced a recall of more than 2.4 million hybrid vehicles worldwide because of a fault in their systems that could cause them to lose power.
The recall of Prius and Auris cars includes 1.25 million vehicles sold in Japan, 830,000 in North America and 290,000 sold in Europe.
All those affected were produced between October 2008 and November 2014.
Toyota said it was not aware of any actual accidents caused by the fault.
However, the carmaker said that in “rare situations”, the fault could cause vehicles to stall when entering “failsafe” driving mode.
“While power steering and braking would remain operational, a vehicle stall while driving at higher speeds could increase the risk of a crash,” the company said.
Toyota said the cars affected had already been recalled previously for other reasons in 2014 and 2015.
“The remedy conducted then did not anticipate the new condition identified in this recall,” it added.
In recent years, Toyota has had to recall large numbers of cars for various reasons, including faulty airbags supplied by vehicle parts firm Takata.
In 2015, it had to recall 6.5 million vehicles globally over a faulty window switch that was liable to short-circuit.
Source: BBC
Renault’s China electric crossover may go global
Renault will introduce a low-cost urban vehicle in China next year — the electric K-ZE, based on the Kwid subcompact crossover sold in India and other emerging markets.
The K-ZE, shown as a concept but which is close to production form, will have a range of 250 km under the New European Driving Cycle emissions test. The EV was developed as part of a new joint venture with Renault alliance partner Nissan and Dongfeng Motor Group to build electric vehicles for China, where the K-ZE will be produced.
Carlos Ghosn, CEO of Renault and chairman of Nissan Motor and Mitsubishi Motors, would not say what the price would be, although last year he said the K-ZE would cost about $8,000. He said it would stand out from domestic competitors by offering a higher level of features, such as air conditioning, a large touchscreen, rearview camera and parking sensors, and connected navigation and services, Ghosn said.
“This is a very strong product, and we’re going to compete,” he said.
The K-ZE most likely will be sold outside China, Ghosn said, adding, “We’re starting with China, but the scope will be global.”
Renault plans to sell 550,000 cars in China by 2022 under the company’s Drive the Future strategic plans. Last year the company sold about 72,000 vehicles there, up from 35,000 in 2016.
Renault has long had a joint venture with Dongfeng to build internal-combustion vehicles, and it also hopes to boost sales through a new joint venture with Shenyang Brilliance Jinbei Automobile Co. to produce and sell light-commercial vehicles. Including the K-ZE, Renault plans to launch three EVs and nine new cars overall by 2022.
The Chinese government wants to increase annual output of new-energy vehicles — its term for battery-electric vehicles, plug-in hybrids and fuel-cell vehicles — to 2 million units by 2020, Bloomberg News reported last year. Such automobiles are expected to make up more than one-fifth of total sales by 2025, according to the latest auto industry plan released by the Ministry of Industry and Information Technology. Last year about 25 million cars were sold in China.
Source: Automotive News Europe
Kumho Signs Technology Transfer Agreement with Pakistani Manufacturer
Kumho Tire Co. signed an agreement to transfer its tire manufacturing technology to Century Engineering Industries of Pakistan.
Kumho called the agreement “monumental” for South Korea’s tire industry because it allows Kumho to enter into a developing country’s market. Under the 10-year agreement, Kumho will provide its technology to Century which also includes Kumho’s resources on design to quality control as well as education and problem-solving skills related to running a tire manufacturing business. Under the contract, Kumho will receive $5 million along with 2.5% of Century’s annual sales in royalties. A total of 28 tire products for passenger and commercial vehicles are subject to the deal, which will be renewable for another five years upon expiration.
Century, a Pakistani-based battery manufacturer, has been committed to expanding its business portfolio by building a tire manufacturing line in Pakistan since May 2017. After Century’s research on global scale tire manufacturers, Century approached Kumho about its global business and technology with the hope of partnering with the tiremaker.
Kumho said Century will improve upon Pakistan’s limited infrastructure for tire manufacturing by investing in a tire plant with hopes to expand its business in the automotive industry. Century forecasts it will manufacture a million tires per year and eventually aims to grow its annual capacity to 5 million units.
“Kumho has enjoyed a good reputation as a technology powerhouse. The deal will eliminate concerns caused by some issues over the years such as its acquisition by Double star and prove that Kumho’s quality and technology remain intact,” said Kim Jong-ho, CEO of Kumho Tire. “We will leverage this deal as a starting point to establish technology the transfer as a new revenue source and develop a variety of business models that build on our expertise in tire manufacturing in order to further enhance our business.”
Pakistan’s battery market saw a phenomenal growth during last decade, as the long hours of electricity blackouts compelled people to use available SLI batteries in their home and office Un-interrupted power supplies (UPS). SLI batteries are designed to provide high voltage current required at start an automobile for few seconds then they need to be charged. If exposed to long use- more than 40 percent of their total capacity-the thin lead plates start to break, making battery unusable. The disposable units are hard to repair.
After the gradual increase in electricity production in recent years and availability of thick lead plate- long lasting – deep cycle batteries for solar and UPS use- the SLI batteries were restricted to automobile use mainly. Cut-throat competition, availability of modern alternate secondary storage units and improved regulations were other reason to seek diversification for the relatively new company.
With robust network of existing battery sales force, the company is not eyeing new car entrants only but Suzuki, Honda and Toyota also in coming years, due to increasing bad quality perception of their existing vendor. Century is already supplying Phoenix batteries to Pak Suzuki Motors, Ghandhara Nissan cars and trucks, Al-Ghazi Tractors and Sazgar Rikshaw.
Vision for SME Development in Pakistan – A New Economic Era
SME’s employ nearly 80% of Pakistan’s non-agricultural work force; prosperity within this sector has huge upstream and downstream benefits. Since most of the large corporate giants and their upper management/owners have better access to corridors of power and hence policy influence, the on-ground voice of SME’s is lost and seldom heard. Over the years, there has been a lack of focused attention from government leadership including a lack of vision and objectives, which define structural improvement in SME policy.
Research, analysis, policy making and implementation must be driven from the very top of government. It is also discouraging to see that there is practically no representation or platform for high performing SME’s to partake in the discourse on economic policy in Pakistan. This disconnect is evident in resultant economic performance indicators. The hard-hitting target of increasing industrial productivity must be approached from multiple directions by resolving a variety of issues in parallel.
An increase in industrial productivity will result injob creation, rising incomes and higher spending/local demand oriented economic activity. This will catalyze more efficient businesses that will naturally form competitive and comparative advantages through the free market and will become the bedrock of our export orientation and economic sustainability in volatile global environments.Tariffs and protection will only work to increase local manufacturing productivity if it is coupled with improvement in manufacturing efficiency and skill development of workforce.
Otherwise, in the long run, tariffs and protectionism only harms local industries in any country because it reduces motivation for businesses to improve, as they know they will always have a safety net and will be protected with tariffs to make imported goods more expensive. It is important to understand that this comfort zone actually harms the country and their own ability to be competitive. This lack of competitiveness will be evident in lack of exports or loss of local business if foreign companies decide to set up operations in Pakistan. While protectionist policies have some short to medium term advantages, they must be part of a 360-degree approach to improving domestic productivity.
Development strategies should also not focus simply on monetary and fiscal measures. They should focus on thought and mentality within SME’s, which will unlock and catapult a mindset of growth and entrepreneurship. Every large enterprise was once an SME at some point in its history and this will always be the same cycle, an economy should focus on its roots and the outcome will always be strong.
Sometimes it is too easy for people to invest in non-business ventures and park their money in relatively safe investments. The government should make a conscious effort at encouraging people to start businesses and develop their thinking along the lines of need based business ideas and technology based businesses. As mentioned above, the need for skills development to enhance the productivity by mentality change of employees is essential. These programs should mainly be government run as private initiatives will never be able to roll them out at a scale that is needed, nor have cross industrial buy-in that government machinery can achieve.
It may also not be a lucrative return on investment for a private initiative. The above is in addition to the dire need of basic vocational training for the various industries in operation in Pakistan such as textile, plastics molding, sheet metal, casting, food processing, pharmaceuticals, sports foods, surgical goods, cloth weaving, furniture, etc. the list is endless. It is also important that this should be rolled out in the form of a short and basic curriculum in the public schooling system of Pakistan before FSC.
This will in turn become a feeder for vocational training institutes for interested students. It is essential that students be given awareness and an opportunity of vocational skills at a young age to see the benefit of it out of their own interest rather than be forced to take it up later due to lack of other opportunities. If the vocational skills training sector of Pakistan improves, the follow on affect of this is so huge, many people do not realize the benefits. There are whole industries currently formed out of uncertified skills such as electricians, plumbers, mechanics, etc.that exist in the market will not only become organized and skilled, they will be able to charge better prices for quality certified services. Steadily this will elevate the vast majority of our population in terms of education, skill and income and will create a wave of new micro business owners.
Pakistan is at the precipice of huge economic growth via our SME’s. All potential for local productivity and technology improvements to reduce reliance on imports and export-oriented growth will come from businesses that are right now SME’s, 40% of our GDP comes from SME’s alone. There are multiple methods and strategies through which a comprehensive SME development plan can be devised with SMART (Specific-Measureable-Actionable-Relevant-Time bound)objectives and result oriented KPI’s. It is important to understand that SME businesses do not have tall and multilayered management hierarchies, there is a constant and direct connection between owners, employees, production challenges, quality issues, technology constraints, purchase and sale supply chains as well as daily administrative and government office interaction. An SME owner is at the true forefront of observing policy in action and challenges faced by the average Pakistani.
Exclusive written by
Ahmad Usman
Director operations Plastech Autosafe
Atlas Honda increases its bikes prices once again
Following the recent price increase by car makers, Pakistan’s leading bike manufacturer, Atlas Honda has also raised the prices of its bikes. The new prices of Honda bikes will be effective from 3rd October as per notification issued by company to dealer.
New prices are as follow:
• CD-70 PKR 65,900
• CD Dream PKR 69,900
• Honda Pridor PKR 91,400
• CB150F PKR 176,000
The previous prices were as follow:
• CD-70 PKR 65,500
• CD Dream PKR 68,900
• Honda Pridor PKR 90,900
• CB150F PKR 172,000
According to market sources, Atlas Honda is taking advantage due to rising demand for two-wheelers which was apparent from record-breaking sales and production in Pakistan’s history as compared to other two wheeler auto makers.
Atlas Honda sold 171,070 units in July/August month of 2018. United sold 68,185, Road Prince sold 28,181, Ravi sold 5,508, Suzuki sold 3,876 and Sazar sold 2,898 units during July/August month of 2018. This is evident from the stats that Atlas Honda is leading the market by its production and selling rate.
Market experts said that due to the depreciation of the rupee against the dollar, there has been an increase in the cost of imported spare parts, thus Atlas Honda has announced an increase in its prices to cater to the issue. Being the leader in manufacture and production of bikes in Pakistan, Honda bikes are the top choice for people.
By Aqsa Mirza
A game changer model for Proton–X70
PETALING JAYA: Proton Holdings Bhd’s X70 sport-utility vehicle (SUV), which is set to be launched later this year, could just be the game-changer model that the struggling national car company has been waiting for to help turn it around.
Response to the model has been promising, having received some 5,000 bookings within a week of being made available to the public – a good sign for a company that has, for years now, been striving hard to rebuild its brand loyalty and regain consumer confidence in its products.
“The emergence of China’s Zhejiang Geely Holding Group Co Ltd as a foreign strategic partner was a milestone for Proton and will help provide the national carmaker with the turnaround opportunities it has been needing all these years,” said an industry observer.
Geely completed its acquisition of a 49.9% stake in Proton in September 2017. Vehicles engineered with Volvo technology, such as its GC9 sedan and the Boyue SUV (the platform on which the X70 is based on) have been a hit in China, the world’s biggest auto market.
China-based vehicles have, for a long time, been getting a “bad rap” from customers and industry observers due to their quality. However, in recent years, the demand for Chinese makes has been on the rise.
“Having models with Volvo-engineered technology has helped Geely grow by leaps and bounds,” said an analyst. “With proven technology and European-like features, their models have been a hit in China; and it’s no surprise why the model will be a hit here as well,” he said, adding that the X70 could also pave the way for future Proton models.
Another analyst said having a rebadged vehicle would also bode well for Proton, especially for parent company DRB-Hicom Bhd, which has a 50.1% stake in the national carmaker.
“By having a rebadged vehicle, Proton will no longer have to incur huge development costs in developing new models, as the cost will be incurred mostly by Geely. This will definitely help boost the national carmaker’s bottom line.
“Building a model from the ground up is more expensive and if it doesn’t do well, you will struggle to recoup your development cost.”
Building a brand new model could cost north of RM700mil for Proton – but less than half of that when collaborating with a partner, he said.
Last month, DRB-Hicom announced that it is expected to make a gain of RM735.4mil from its proposed sale of Alam Flora Sdn Bhd to Malakoff Corp Bhd’s unit.
DRB-Hicom said part of the proceeds from the proposed disposal would be used to repay its borrowings, as well as help turn around Proton.
For its first quarter ended June 30, 2018, DRB-Hicom suffered a net loss of RM66.60mil compared with a net loss of RM182.79mil in the previous corresponding period. Revenue dipped to RM2.65bil from RM3.13bil a year earlier.
The company said its earnings were affected largely due to lower sales of vehicles by Proton and certain other automotive companies.
In its notes accompanying its first-quarter results, DRB-Hicom, nevertheless, said it is optimistic about the prospects for its current financial year.
“The group’s automotive sector is expected to pick up momentum with the impending Proton SUV to be launched by the end of 2018. New product launches from other marques, as well as promotional activities, will act as catalysts to drive the sales volume further,” it said.
Courtesy: The Malaysian Reserve
Proton resumes overseas shipments after Chinese Geely expand partnership
KUALA LUMPUR — Chinese automaker Zhejiang Geely Holding Group has begun turning Malaysia into a base for exports to Southeast Asia and beyond, after improving quality controls at local car producer Proton Holdings.
Local unit Proton resumes overseas shipments for first time in three years. Company shipped 225 cars to Egypt on Thursday, after sending 453 autos to Iraq and other Middle Eastern countries in July. These marked Proton’s first exports to anywhere since 2015.
Building up automaking as an export industry has long been a goal for Malaysia, which started Proton as a national project in the 1980s under Mahathir Mohamad, then serving his first tenure as prime minister. But the road has been rough.
Geely, one of China’s rare privately owned automakers and the owner of Sweden’s Volvo Cars, bought into the struggling Proton last year in a state-led turnaround, taking a 49.9% stake.
In August, Geely and Proton expanded their partnership with plans for a new car factory in China and cooperation on electric vehicles.
Though Southeast Asia “will remain as the main priority for Proton’s export business,” Middle Eastern demand will help fuel its growth, Proton CEO Li Chunrong said in July.
“The Middle Eastern markets hold high regard for products from Islamic countries like Malaysia,” Li said.
The shipments bound for the Middle East were drawn from Proton’s existing models, including Saga and Exora. Proton adopted the quality management system used by Geely and Volvo, paving the way for its latest bid to crack export markets.
The Malaysian automaker achieved a threefold improvement since adopting the system, which tracks the rate of problems discovered on production lines. Proton received 1,786 demerit points as of the end of June — a smaller number means better quality. By comparison, Geely scored 1,200 points, while Volvo had 850.
Proton aims to reach 1,500 points at the end of 2018 as the company prepares to roll out the X70 sport utility vehicle, a rebadged version of the Boyue, one of the best-selling Geely vehicles in China.
That model will be fully built in China, but Geely is expected to make Proton a global production hub for exporting vehicles with right-hand drive, according to automotive news site paultan.org.
Proton’s sales remain sluggish, totaling 44,700 vehicles in the first eight months of 2018 for a 10.6% share of the Malaysian auto market, Southeast Asia’s third largest in terms of new-vehicle sales.
Geely also is bolstering Proton’s dealership network by upgrading showrooms to include after-sales service and parts. The group said Proton has achieved 92% of its target for upgrading outlets as of the end of August.
Malaysian automotive group DRB-Hicom owns the remaining 50.1% of Proton but has given its Chinese partner the lead in managing the company.
Article originally published in1 Nikkei Asian Review