Automark

Prime Minister’s Advisor on Commerce, Textile, Industry & Production and Investment Abdul Razak Dawood acknowledged the efforts and appreciated the range of quality products the company is manufacturing to increase the export and revenue of the country.

Millat Tractors Limited yesterday organised the celebration ceremony to mark the company’s success in exports of its products and achieving high sales record in the current fiscal year. While speaking at a celebration ceremony Abdul Razak Dawood said that value-added engineering products could earn much needed foreign exchange and generates a plenty of revenue for the country besides making it self-sufficient locally.

Millat Group’s Chairman Sikandar Mustafa Khan and Millat Tractors Limited’s Chief Executive Officer S M Irfan Aqueel were also present on the occasion.

Abdul Razak Dawood also inaugurated the export consignments of tractors being sent to Tanzania and Madagascar. He said that it is remarkable event and achievement that Millat had taken the lead in the automobile sector by setting up a broad vending base and exporting its products successfully in the global markets, which will not only portray a positive and soft image of Pakistan but also will result in saving and earning of foreign exchange.

He was briefed that the company is being manufactured products including Millat made Massey Ferguson tractors, tractor engines, electro pack engines, assemblies and sub-assemblies of spare parts that are being exported to Europe, Africa, South Asia, Turkey and Australia.

The exports have been a result of Millat’s agreement with their Principal AGCO, signed in 2015. It is important to note that Millat made products were competing in the global markets not only because of its affordable price ranges but also for good quality and high standards.

He also evaluated two newly manufactured tractor models, MF 360-4wd and MF 375- 4wd ready for export to global and local markets.

Speaking on the occasion, Sikandar Mustafa Khan said that the company’s exports are a testament of technical strength of its products, competing for the global markets successfully. He also paid tributes to all the stakeholders including foreign partners of the company which stood by it all the way and helped the company in achieving a milestone.

by Aqsa Mirza

As we all well known that China-Pakistan Economic Corridor (CPEC) will bring a lot of opportunities for Pakistan and auto sector. This in turn will benefit the transport warehousing and freight forwarding services by further expanding the auto and logistics sector of Pakistan.

Over the years the automobile industry world-wide has become a true reflection of the economy, similarly Pakistan’s economic indicators are improving with the present peak of the automobile industry.

The auto industry in Pakistan is currently entering a new phase in its development as many new players set their plants in Pakistan. From a virtual stagnation for nearly 10 years, the automotive industry is finally coming of age, with volumes growing exponentially and demand for quality, price and prompt deliveries being the order of the day.Now the question is that how new team players will fill the huge gap of skilled persons for their new facilities.

Why Skilled Manpower Are Important
Staying organized in the workplace can save a company time and money. Organizational skills are essential for multitasking and keeping a business running smoothly and successfully. Employers aim to recruit applicants who can work to achieve results consistently, even when unforeseen delays or problems arise.

Workers with strong organization skills are able to structure their schedule, boost productivity, and prioritize tasks that must be completed immediately versus those that can be postponed, delegated to another person, or eliminated altogether. In previous two years we saw in Pakistan Automotive industry peoples left their previous organization and move to join new team players with lot of attractive also business leaders are reacting in several standard ways: recruiting hard for the few candidates who are out there, offering higher pay and benefits to attract and retain them but no one from government either Automotive side to investing in learning and development programs to increase the skills of current employees.

The skilled labor shortage is affecting companies not only in the Pakistan but all over the world. According to the latest Manpower “Talent Shortage Survey” 44% of employers across the globe report they cannot find the skills they need.
The German Economic Institute recently calculated that the lack of skilled labor — estimated at 440,000 qualified workers — is costing the German economy 30 billion euros a year in GDP growth (0.9 percentage points to be exact).

The problem of skill shortages has also to be resolved for reducing income inequalities. When the country has skill shortages those possessing the requisite skills are able to command high premiums on their earnings. These benefits widen income inequalities which, in turn, slow down the process of poverty reduction despite reasonable growth rates.

To cop up this situation Pakistan Automotive OEM`s need to close liaison with the government for collaborative training programmes, there is less enthusiasm and willingness on the part of the government to realize their importance in relation to the opportunities arising from new developing industries of Automotive.

This is suggests suggested that unskilled issue could be addressed to a large extent by just imparting skilled technical education to the youth. “No skilled person has been found to be unemployed, and companies would take benefits from these skilled persons and produce high quality products in Pakistan

Written By : Nadeem Aftab, Head of Production, Plastech Autosafe

Careem, a Dubai-based ride-hailing company, is planning to launch bus services in Pakistan and Saudi Arabia in the near future, the National reported Monday.

Careem has already started its bus service in Egypt’s Cairo as it aims to expand into mass transportation business. Careem Bus, a service aimed at attracting middle-income earners, will have fares fixed at a set rate that is 60 to 70% cheaper than its car service, the company said.

Source : SAMAA

Following a recent wave of rupee devaluation against the US dollar, two tractor assembly plants, along with 200 plus tier-one vending base are moving towards the closure as tractor bookings decreased largely, said the Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM). Tractor industry has around 100000 skilled and experienced employees, particularly in Lahore.

Mumshad Ali former chairman Pakistan Association of Automotive Parts & Accessories Manufacturers said that this sharp drop in bookings come after showing a strong growth in the last 2 years where the industry manufactured between 60-70 thousand tractors annually.

The enormous growth came due to the friendly and favourable policies by PML N’s government towards the agriculture sector and CPEC. As CPEC projects are put on hold and rupee devalues, drop in sales of auto industry particularly tractor industry was eminent. Tractor sales are a good indicator for the country’s robust economy in general and agriculture economy in particular.

Industry experts believe that this financial year will observe less than 50,000 units of sale compared to 70,000 + sales last financial year as investors and stakeholders pull their money out from this industry to invest somewhere else. Tractor sales are usually in demand twice a year to meet the demand surge after the Rabi and Kharif crops are harvested and agri economy cash cycle moves forward.

This is not the first time that tractor industry is facing decline in sales. Previously, the industry has also faced a drop in demand for different reasons, such as imposition of GST, tractor subsidy schemes, news of new and old used tractor imports, commodity price crashes, floods, and crop failures.

The industry holds great potential for exports to Africa due to the price, design and durability of the Pakistani tractor. The revival of the industry is possible if CPEC projects restart again and government support the Pakistani farmer.

by Aqsa Mirza

Atlas Honda has once again increased its bike prices yet again as the rupee continues to fall against the dollar. It is for the 6th time within a year that the company has increased its bike prices.

The automaker has hiked the prices of its motorcycles by Rs. 2,600-8,000. The new prices are as follows:

Honda CD 70 New price is Rs 69,500

Honda CD Dream New price is Rs 73,500

Honda Pridor New price is Rs 95,500

Honda CG 125 New price is Rs 114,500

Honda CB 150F New price is Rs 187,000

Honda said that the recent dollar appreciation against the Rupee was the main reason behind the price increase. However, despite the price bump, Honda’s sales have gone up by 3.66% as the company sold 373,698 units in 4MFY19, as compared to 360,516 units in the same period last year in 2017.

Chairman of Association of Pakistan Motorcycle Assemblers, Mohammad Sabir Sheikh, told the local media that the hike is due to rupee devaluation against the US dollar as it pushes up the cost of imported parts. He further said that the cost of imported sheet metal and other parts has also raised due to the increase in customs duty.

The chairman further stated that the increase in Honda prices in December had been the highest as previously the company used to hike prices within the range of Rs. 400-5,000 on different bike models.

by Aqsa Mirza

Indus Motor Company held (on Thursday 29th Nov.) a Career Day Drive Activity inaugurated by CEO Indus Motor Company and Pro-Vice Chancellor NED University Prof. Dr. M. Tufail, with Toyota Technical Education Program (T-TEP) students (Auto & Diesel) at St. Patrick’s Institute of Science and Technology.

T-TEP is Toyota Global’s Program started in 1970’s under which Toyota Motor Corporation supports its worldwide distributors to train and develop Human Resource in their local community by establishing a long term affiliation with running vocational institutes. Following the suit, IMC is running T-TEP in Pakistan to train Youth and Manpower.
This event held after 5 years as the long gap was due to change of management from St. Patrick Tech and also from Indus Motor.

Chief Executive IMC Ali Asghar Jamali said, “The main objectives of T-TEP are service to society by familiarize young generation with the latest automobile technology and to create employment opportunities, since the beginning of T-TEP in 2000, we have successfully invested more than 950 Thousand man hours, passing 4,397 students successfully. Not only that we have successfully inducted 35% of these students in Toyota Network which is approximately 1,543 students.

IMC has provided financial support of more than 74.6 million PKR to our 4 T-TEP institutes in terms of training, tools and equipment and other development activities.

Courtesy: Ali Zulqarnain from NED University – Karachi