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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

Govt may withdraw waiver for non-filers

ISLAMABAD: The Finance Minister, Asad Umar, says he’s ready to reconsider the budget proposal of lifting ban on the non-filers of tax returns wishing to purchase property and new cars — a move that sparked controversy, as it meant incentive’s the tax-evaders and penalizing the taxpayers.

“Yes, it can be reconsidered. There shouldn’t be an ego problem. I am neither all-knowing nor I have any personal interest in granting this waiver. We have invited suggestions to identify genuine cases among them where exemption merits,” Asad told The News on Saturday. “Where I am convinced that the cases merit exemptions, it will be done. This is my personal opinion. Final decision will be taken collectively,” he explained.

During his budget speech late on Tuesday, Asad had justified the proposed waiver for non-filers on the ground that the ban slapped by the PML-N government had hurt the overseas Pakistanis intending to invest in the real estate. As the controversy raged on, two other reasons were listed in defense of the waiver by the financial wizards of the government. The ban on non-filers is in violation of fundamental rights prescribed in Article 23 of the Constitution, according to the State Minister for Finance Hammad Azhar. That it has also affected the transfer of inherited property, as doing so also required the beneficiary to be a filer is another excuse.

Source: The News

Proton’s first ever SUV X70 – official details finally released in Malaysia

Weeks away from the official launch of Proton’s first ever SUV, and a closed-door viewing at the company’s headquarters in Kuala Lumpur, finally revealed crucial details of the car, as well as the name, which is X70. The new model will be sold through qualified Proton sales outlets only.

To start, there will be four variants on offer, starting with the base Standard 2WD, Executive 2WD, Executive AWD and Premium 2WD. All variants will feature a 1.8 litre TGDi turbocharged four-cylinder petrol engine producing 181 hp and 285 Nm of torque.
Design-wise, it’s pretty much the same as we’ve come to expect, seeing the number of times the X70 has been leaked. Up front, it gets a unique winged grille design with three horizontal bars that converge into the Proton badge, and the entire piece is encased in thick chrome surrounds. Very little cosmetic changes have actually been made, because the bulk of work has been to convert it from left-hand drive to right-hand drive – the Boyue is the first Geely model to be converted to RHD.

Proton’s head of design, Azlan Othman, had earlier said the reason for the minor cosmetic tweaks is to speed up the X70’s market introduction, but more visual changes will come in the CKD version, which is slated for a mid-2019 arrival.

For now, the X70 gets keyless entry (with active touch sensors on the front door handles) with push-start, electrically foldable wing mirrors, LED projector headlights with LED DRLs, LED fog lamps, 18-inch alloy wheels with Hankook Dynapro HP2 (225/60 R18) tyres, and dark-tinted LED tail lights. As with all recent Proton models, both the head- and tail-lights feature Proton lettering.

Inside, again, things remain fairly similar to the Geely Boyue facelift, on which the X70 is based on. There’s brown Nappa leather on the seats, door card inserts and steering wheel (on the Premium model, Exec get black synthetic leather), automatic dual-zone climate control and a widescreen 8.0-inch touchscreen infotainment system (1,920 x 720 pixels) with 4G connectivity. Auto headlights and wipers are also on.

There’s also voice recognition support (designed with Malaysian English in mind), as ‘demonstrated’ by our premier Tun Dr Mahathir, as well as a fully-digital and configurable instrument panel, which is a first for the Proton brand.

Decorative trim and material include brushed silver and wool inlays on the dash and silver grab handles. There’s also an Infinite Weave design element found on the door handles and speaker grilles. Elsewhere, there are rear air-con vents and a full-sized panoramic glass roof, but the latter is only available on the top variant.

According to Yang Jun, VP of group engineering at Geely, the X70 will not be short on technology and equipment. Other features include a 360-degree camera, which shows a 3D view of obstacles surrounding the car, as well as a forward-facing camera at the top of the windscreen to enable the car’s driver assist systems. These enable functions such as autonomous emergency braking and adaptive cruise control. The X70 will also come with a blind spot monitor.

Also on are the “Smartphone Remote Control” and “Smart Air Purifier” features, the latter in reference to the “Air Cleaner” system that can be found above the rear air-con vent between the front seats. A tyre pressure monitoring system is also on the equipment list, and safety kit will include six airbags.

Other amenities include USB charging ports for the front passenger seat, two more at the back of the centre console, as well as another port behind the rear-view mirror, for those who want to install driving video recorder (dashcam). On the top-spec Premium, the front passenger seats are powered with Toyota Camry-like shoulder controls to boot, while a rear subwoofer is present under the boot floor, sandwiched between the space-saver tyre.
In terms of performance, the output seen on the 1.8 litre TGDi turbocharged four-cylinder petrol engine – which uses Shell oil as the recommended lubricant – is the highest tune available for the petrol-powered Boyue, and the mill is mated to a six-speed automatic transmission. There are front-wheel drive or all-wheel drive versions to be had. According to the energy consumption label found on cars in China, combined fuel consumption for a TGDi front-wheel-drive Boyue weighing 1,690 kg is 7.8 litres per 100 km (12.8 km/l).
So far, the available exterior colour options as we can tell are Flame Red, Snow White, Armour Silver, Jet Grey and Cinnamon Brown. As for the name, Proton adds that ‘X70’ was the most popular choice from almost 90,000 participants that voted in the company’s poll, accounting for 60% of the total votes.

So far, the national automaker has 77 test vehicles in its fleet and has performed up to 300 vehicle tests and over 500 vehicle system tests on the car. Approximately 750,000 man-hours have gone into the making of this model, and the test mule has clocked over two million kilometres of reliability testing.

 

Non-filers are now allowed to purchase vehicles and property

Finance Minister Asad Umar presented various amendments to the budget for the fiscal year 2018-19 on Tuesday. He proposed various amendments regarding the economy of the country.

Asad Umar has eliminated the previous condition according to which only a tax-filer could buy or import new vehicles. The minister uplifts the ban and proposed a new amendment in this regard.

According to the new proposed finance bill, Income tax non-filers will be allowed to buy any locally manufactured or imported vehicle.

However, a duty of 20 percent will be added on vehicles above engine displacement of 1800cc. He said, “We have doubled the federal excise duty on cars of 1800cc engine capacity or more from 10pc to 20pc.”  Additionally, non-filers can also purchase the property regardless of its worth.

In May 2018, the former Pakistan Muslim League Nawaz (PMLN) led government had restricted the purchase of vehicles and property for non-filers.

Earlier, the Federal Board of Revenue (FBR) had imposed a restriction on non-filers from purchasing new motor vehicles manufactured in Pakistan or imported vehicles, irrespective of engine capacity, from July 1, 2018.

The government’s decision to stop non filers from buying cars did not suit the new entrants who had invested millions to assemble cars and other vehicles in the next one to two years. Assemblers had also urged the customers to change their status as tax filers.

However, with this new move auto assemblers and automotive dealers are happy and considering it a big step forward for the auto industry of Pakistan.

by : Aqsa Mirza

Al-Futtaim Honda Launches ‘Explore the Ultimate’ Promotion All Through September

Al-Futtaim Honda, the exclusive distributor of Honda cars, bikes, marine engines and power products in the UAE, has launched ‘Explore the Ultimate’ promotion across all its showrooms in the UAE making it easier for customers to purchase their dream car.

The campaign, which runs all through September, covers the entire Honda sedan, SUV and MPV range including the all-new Honda Accord which is available from as low as AED 999 per month, the sleek and sporty Honda Civic from AED 799 per month, delivering advanced sporty design, best comfort and best fuel efficiency in its category – Honda City from AED 599 per month and the Honda Jazz offering unmatched versatility as well as class-leading space starting from AED 699 per month.

The all-new urban chic Honda CR-V is also available from AED 999 per month, the modern family SUV Pilot from AED 1,199 per month. The offer also applies on the Odyssey J with prices as low as AED 1,099 per month and the Odyssey from AED 1,399 per month.

The Al-Futtaim company is also offering 5 years unlimited mileage warranty, up to 100% finance and roadside assistance on all new cars and up to 5-year or 100,000 kms service contract on selected new car models. Trade-in of all makes and models is also accepted.

  • Press Release

PAAPAM Participates in Automechanika Frankfurt-2018

Automechanika Frankfurt-2018 – Germany Sep 11 – 15 is the world’s most successful B2B trade fair for the auto engineering industry of the world. The automotive aftermarket is of major economic significance, and Automechanika offers a shared platform for everyone involved. Visiting the platform is absolutely essential for anyone looking to keep up with the rapid developments in the automotive services sector. Automechanika Frankfut is where the leading companies and visionary first-movers come to showcase their innovations, and it is where industry experts discuss the latest challenges facing the industry.

About 133,000 professional visitors from 170 countries attended the show this year where 4,843 exhibitors from 76 countries presented their innovations, products and solutions.
This year 15 companies and dozens of businessmen from Pakistan participated in the mega event. The Former Chairman of PAAPAM Mr. Mashood verified that this year, due to the growth in the auto sector of Pakistan, companies were eyeing to create a liaison with the Pakistani companies. I have visited many associations from different parts of the world and this year their feedback was different then before. Following associations were given a detailed presentation on the future of Pakistan and the Industry:
– Eastern Cape Development Corporation / South Africa
– Argentina Association of Auto Parts
– Automotive Components Manufacturers Association INDIA
– Association of Small & Medium Enterprises Singapore
– German Trade and Investment
– And many more

Mr. Mashood was representing the Pakistan Association of Automotive parts & Accessories Manufacturers PAAPAM at the mega event, with the basic objective of trying to create a joint cooperation between two industries with cooperation through the association.
We want to attract visitors, buyers and exhibitors from different parts of the world to come and see what Pakistan has to offer in the next Pakistan Auto Parts Show scheduled to be held in Karachi in April 2019. This exhibition is great opportunity to brand Pakistan as the next engineering destination and that is the Plan of the association to create an international footprint through its members.

  • Press Release

New entrants, new models to check their luck under Imran Khan’s government in Pakistan

A major policy initiative by the PML-N government to announce new Auto Development Policy 2016-2021 will materialize under the tenure of new Prime Minister Imran Khan of Pakistan Tehrik-e-Insaaf.

Auto consumers are anxious to see a galore of models from new entrants like Hyundai, KIA, Renault, Nissan, United etc vehicles. Not only new jobs will open but the economy will also strengthen.

Around 300,000 units of additional capacity in cars, light commercial vehicles, light trucks and buses from new automobile entrants will come up in the next one to two years as 11 players got Greenfield status followed by Brownfield status awarded to two companies while Greenfield status for two companies is under approval.

Some 11 companies who got Greenfield status are KIA Lucky Motors, Renault Al Futtaim, Hyundai Nishat, Sazgar Engineering, Regal Automobile, Khalid Mushtaq, Master Motors, United Motors, Topsun Motors, Pak-China Motors, United Motors and JWForland Auto Park.

Ghandhara Nissan and Daehan Dewan fall in Brownfield category while as per market reports two companies – Cavalier Automotive and Habib Rafiq have also applied for green field status and waiting for approval.
It means that Pakistan has succeeded in bringing in over one billion dollar investment in the auto sector alone through new entrants.
One of the key players aiming to cash their luck in Pakistan is KIA Lucky Motors which aims to produce 25,000-30,000 cars, SUVs, MPVs and LCVs per year at Bin Qasim Industrial Park.

All eyes are set at Hyundai Nishat having plant capacity of 30,000 vehicles per annum to produce over 6,000 cars, LCVs and SUVs at Faisalabad plant.
Lahore-based Sazgar has plant capacity of over 20,000 vehicles per annum to produce cars, SUVs and LCVs.

United Motors already had introduced 800cc car and soon roll out local assemble cars at its Lahore plant with the annual capacity 35,000 units per annum, while Khalid Mushtaq, having annual plant capacity of 1,200 vehicles per annum, will make vehicles at Nooriabad Industrial area.

With plant capacity of 30,000 units per annum, Master Motors in its Port Qasim plant will assemble cars and LCVs. At an annual capacity of 32,000 vehicles per year, Ghandhara Nissan will make cars, LCVs and SUVs at its Port Qasim plant.

So far everything looks good but one thing must be causing some anxiety among new entrants and that is unstable exchange rate and government’s future policy on used car imports. These two things pose a serious threat to the new players.
It is premature to predict a stable or a difficult future of new players but one thing is clear that Chinese cars especially may take a lot of time to create a niche in Japanese dominated market. It is observed that people do not have trust on reliability and quality of Chinese cars mainly.

KIA and Hyundai have already tested their luck which later proved a bad luck for Korean auto giant as its local partner became defaulter resulting in closure of local production. It will be interesting to see how Kia and Hyundai will manage to strengthen its position in their second chance. Kia and Hyundai vehicles in the last few years in other countries have emerged as strong challenger to Japanese and European rivals but Pakistan is totally an uncertain market.

Nissan has also tested its Sunny but it did not succeed due to multiple reasons. Now Nissan with its local partner will again test their luck through Datsun models. Lets see how Datsun will be able to compete with imported 660cc vehicles and upcoming locally made Alto 660cc. The road ahead is quite bumpy for Nissan.

Some existing Japanese players are excited keeping in view of their future plans. Pak Suzuki is coming out with Alto 660cc car second quarter of next year, replacing iconic Mehran VXR. Pak Suzuki has already decided to stop production of VX and VXR models, thanks to Pak Suzuki.

As per market reports the Indus Motor Company (IMC) is planning to launch Vios in December 2018 by replacing XLI and GLI models. IMC may launch four to five models of Vios with 1,300-1,500cc both automatic and manual transmissions.
Ghandhara Industries had launched imported D-Max SUV model but later it will be produced locally.

New entrants will avail the benefits of low rates of duties for importing their parts as completely knocked kits (CKD) for three years.

The new players may give tough competition to the existing Japanese assemblers. Barring Honda Cars Limited (HACL), Pak Suzuki Motor Company Limited (PSMCL) has been notorious in maintaining its outdated and obsolete technology for 30 years especially in the case of Suzuki Mehran, Ravi and Bolan.

The competition between new and existing players is set to become tougher than ever and consumers will have choices to purchase cars as per their desire. However, it is feared that a new cartel will emerge to join hands with the existing cartel of Japanese assemblers leaving the consumers helpless again who may witness three to four times price hike in a year on excuse of rupee-dollar parity.

However, one bad news appears in the local media regarding shelving of plan of Honda Brio by Honda Atlas Cars Pakistan (HACP) recently due to volatile exchange rates making the cost of vehicle unfeasible.
The management HACP has deferred the introduction of a new locally-assembled car owing to the country’s uncertain economic condition.
The company had already given the drawings of dies, tools and moulds to local vendors some six months back.
HACP has now asked local vendors to cancel their activities for parts development, vendors for Honda cars said adding the company has also asked the vendors to give back the drawings.
The car assembler became skeptical when the rupee lost the value by five per cent few months back. Now the currency situation is highly volatile, making the cost of vehicle unfeasible.
HACP was considering introducing locally assembled 1,200cc Brio by 2019 which could add more than 3,000 units in company’s total production.

The reason given by the company to suspend local assembly is hard to stomach when other existing and new assemblers are already taking a high risk to come out with new models despite the fact that their stakes are definitely in other auto businesses like two wheelers and are certainly not well organized in big vehicle segments.

It is time that Pakistan should move forward and for this purpose the Ministry of Science and Technology has already alarmed the local assemblers to gear up for future challenges.
As per Science Ministry, technology requirement is globally raised by an automaker (OEMs) to meet a market need or enhance competitiveness. The R&D must be carried out with the firm or in a university or by an auto part maker (APM), in conjunction with the OEM.

In Pakistan there is no local auto maker, the R&D is carried out back home by the foreign partner and the local OEM and the APMs all make to print, having been provided the design, drawing, technical data and standards. Additionally technical support through technical man power, training and visits is provided. However design parameters and testing details and procedures are not provided, so technology is not wholly transferred.
Technology Foresight 2017-2025 in this environment is challenging, especially when the automotive industry is in transition facing challenges daily of revolutionary technologies shaping and de-shaping.

The Ministry said Pakistan’s automotive industry had its beginning soon after the birth of the country. It did not inherit anything in the automotive field and little else in other industrial sectors too.

General Motors started assembly of Bedford trucks in 1949 from semi knocked down kits. They later became Ghandhara Motor and introduced CBU Vauxhall cars, whilst indigenization of Bedford trucks continued steadily. Even an engine assembly plant for the truck called Bela engineers, was set up as separate company in the beginning of 70’s.

In the 60’s American Motors Jeep began to be progressively manufactured, but car manufacturing came into its own only when Suzuki tied up with Pakistan Automobile Corporation (PACO) and in early 80’s the first Suzuki FX was rolled out, followed later by Toyota and Honda in early 90’s. Nissan came in the same decade but played a very short innings. Chevorlet came and went at about the same time, with its Daewoo’s small car, Matiz, Hyundai LCVs came later, as well as their Santro Car. The LCV became very popular but due to dispute within the sponsoring family could not sustain. KIA also came and went as a shooting star because the local sponsors ran into problems with the government.
Pakistan has had many false starts in indigenous manufacturing of vehicles. In late 70’s Pakistan produced the first indigenous 4×4 vehicles called Nishan based on American Motors Jeep being manufactured by Naya Daur Motors. This was led by the armed forces at the behest of the head of government. The project had a very short life. In 80’s the first local LCV called proficient based on Suzuki Pick up, was launched, in the 90’s the first local truck Yasoob came and later in the first decade of the century a local car REVO was introduced as well as Zabardast truck and Zabardast 4×4. The LCV and the car plus the Zabardast brand of Vehicles, died because of paucity of working capital whilst the truck was killed by the armed forces, who had helped give it birth.

Pakistan is ranked 33rd by volume amongst the auto manufacturing countries. It produces all kinds of vehicles under collaboration but currently has no local manufacturer of any indigenous 4-wheeler.

In 2007, the government launched the Auto Industry Development Programme (AIDP) – as policy interventions to encourage Original Equipment Manufacturers (OEMs) / vendors / new investors to make medium to long term decisions to develop critical components and acquire technology transfer. AIDP aimed to facilitate the auto industry a safe transition from deletion programmes, not allowed under TRIMS to the Tariff-based system environment and also assist in planned expansion of the capacity of OEMs and Vendors, achieve competitiveness, encourage technology enhancement, and achieve further localization and possible integration with the global value chain.

However, AIDP did not yield desired results due to lack of implementation in letter and spirit. Some of the salient reasons were; lack of government funds to meet the programme parameters, as Technology Assistance Funds, HR development funds, machinery funding were not provided.

As many as 49 fiscal interventions were made during the period inducing uncertainty conditions laid down for new investors in new investor’s policy were not attractive.
Even the suggested tariff rates in the plan were not implemented on one pretext or another.

The Economic Coordination Committee of Cabinet constituted a committee entrusted to formulate Automotive Development Policy. As a result of deliberations of committee members from academia, industry, government representatives and community / consumer, the Automotive Development Policy (2016-21) was formulated in 2016 which envisaged development plans for the automobile Industry in Pakistan to facilitate higher volumes, attract investment, ensure a level playing field for competition and offer higher quality in-line with emerging opportunities within the country and in the region.

The policy as finalized by the PML-N government approved and notified, was discriminatory against the existing OEMs in the country and did not offer anything to APMs. The provision of Funds for Technology Assistance and HR development were also withdrawn. The enunciated objective of the policy is to create a balance between industrial growth and tariffs to ensure sustainability for all stakeholders whilst attaching prime importance to consumer welfare. The policy provides consistency and predictability for new investors with a mid-term policy review mechanism to cater to emerging developments to increase production of automotives by the year 2021. The main Goals of the policy are;
Automotive industry contributes 2.8 per cent of GDP; the industry is contributing over Rs 120 billion to national exchequer; over 2.4 million Pakistanis are employed because of auto and allied industries, supporting minimally 12 million people.

It is the count of road motor vehicles per 1000 inhabitants. Motorization Index of Pakistan and has been calculated using statistics of Passenger cars, Jeeps, station wagons, and tax-cabs as given in Pakistan’s Statistical Year Book 2015 excluding two and three wheelers. It shows an increasing trend.

Pakistan has 15.6 vehicles/1,000 persons, India 18, Philippines 30, Indonesia 69, Thailand 206, and Malaysia 361. Thus the potential for growth and ameliorating the economy is very large. This is called the Motorization Index.

Due to lower per capita, only 16 out of 1,000 people in Pakistan currently own a vehicle, which is significantly lower than other regional countries. It is obvious that the potential for growth is huge which will substantially ameliorate the economy of the country.

In the era of globalization, the key to economic success lies in continuous innovation to achieve ever-higher productivity and thus enhanced competitiveness. Higher productivity calls for new technologies. Thus, technology innovation is decisive for increased competitiveness and economic and social development.

Exclusive article published in Automark Magazine’s printed edition of September-2018

by Owais Khan for Automark Magazine

Car carrier companies increase freight rates to transport passenger cars

The Car carrier transport companies have increased freight rates to all automotive dealers and car assemblers across the country. The Car carrier companies have issued a notification of increased freight charges keeping in view the new rules proposed by National Highway Authority (NHA) as per our sources.

According to the National Highway Authority (NHA), in order to prevent the chances of road accidents, the length of the carrier vehicle is suggested to be reduced to 65ft before 10th September 2018. The decrease in length of carrier vehicles will reduce the number of cars required to be transported from 15 to 9 units. Due to the lesser number of units to be transported, the car carrier companies have asked up to 70% increase in freight rates.

However, Automark comes to know that after successful negotiation between car assemblers and carrier transporters, both parties have agreed on a reasonable increase in freight rates. Now, it’s on assemblers end to pass on these price effects on customers or not.

by Aqsa Mirza

Governor opens 6th Pak-China Industrial Expo in Lahore

The three-day ‘6th Pakistan China Business Forum-Industrial Expo 2018’ started on Friday. The event has been organised by Everest International Expo Pvt Ltd in collaboration with Comsats University Islamabad.

Governor Ch Sarwar opened the exhibition along with SM Naveed, president PCJCCI, Wang Zihai, chairman China Affairs PCJCCI, Frank Fa, CEO Everest International Expo, and Mi Wenpeng, deputy director general of Jinan Federation.

More than 500 Chinese participated in trade fair. The companies belonging to several sectors showcased their latest technology, equipment and innovative ideas of new products from all over the world.

The governor, on this occasion, said that this exhibition would lead the way in delivering the most outstanding opportunities for all participants in different sectors like cranes, energy & mineral equipment, engineering and construction ,forklifts, general industrial equipment, industry lesser equipment, machine tool equipment, machine engine & parts, metal & metallurgy machinery, mining machinery, refrigeration equipment, cnc, laser machine, welding equipment, electrical generation, electricity, boilers, lubricant , solar cell panel, solar chargers, solar collector, solar energy system, solar water heater, uninterrupted power supply, electric vehicles, auto parts, agricultural machinery, construction materials, bricks making machinery etc.

S.M Naveed, while expressing his view about the event, hoped that expo will open a wide way towards contemporary opportunities for business ventures to the local businesses and industries. Further, it shall act as a source for the upgradation of local industry by introducing emerging technologies and to develop our businesses based on futuristic approach in order to take maximum benefits out of CPEC.

Wang Zihai, Chairman of China Affairs PCJCCI, invited other countries to participate in “high quality and shared development” under BRI. I reckon that the role of PCJCCI becomes increasingly important in near future. He also said, “This exhibition will definitely prove to be a fruitful initiative for development and the promotion of bilateral trade relations between Pakistan and China.”

Speaking on this occasion, Ms Mi Wenpeng stressed, “This business-to-business exhibition aims to be a one-stop shop for all industry products from processing technology to the finished products.” She further added: “Such exhibitions will help in developing bilateral relations between Pakistan and China. Jinan and Shandong are the two major parts of China which showed extreme enthusiasm for developing friendly trade relations between the both nations.”