Automark

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

Prime Minister Imran Khan on Friday inaugurated the Chinese JW Forland’s $150 million vehicle assembly plant in Pakistan which is a major push to the country’s automobile industry.

Speaking on the occasion, PM Khan welcomed the Chinese company’s investment in Pakistan and said: “For the first time in Pakistan’s history, a complete car manufacturing plant was being set up and this would create 5,000 jobs which would increase to 35,000 in the future.”

With the launch of the project, there will be technology transfer from China to Pakistan. “Progress only starts after the technology is transferred,” said Prime Minister Khan. “We will produce cars which can eventually be exported,” Khan remarked.

On this occasion, Chairman JW SEZ Group, Mr Shah Faisal was present along with CEO Haier, Javed Afridi and CEO Alex Xu of JwForland.

PM also appreciated Afridi Brothers’ for their positive and prominent role in the auto industry of Pakistan and bringing the Chinese investment in the country.

Mr Shah Faisal Afridi said that “JW Forland is bringing in $350 million worth of investment to the economy. This will be a huge booster for all the stakeholders and the new Government as well. It will also provide confidence to foreign investors who are willing to invest in the Pakistani market”.

Javed Afridi said that “JW Forland Glass Project is worth $350 million alone which our group is leading. It will generate jobs, industrial and economic stability. All major global players in automotive, beverages and various other industries are coming in with massive investment just like us.” Mr. Alex, CEO of Forland while talking to HUM News said,

FW is the leading international commercial brand in China, and based on Pakistan ’s auto policy 20116-21, we are here in Pakistan and with our brilliant partner SEZ group started this joint venture to manufacture commercial and passenger vehicles in the country. In phase 1, we are ready to invest $150 m for commercial vehicles but the total investment is $900m. He further said, this is the first time we started this kind of joint venture out of China, it is not just a technical agreement, but to support local industry and create 45000 jobs for the local market.

Alex further said, “We have high hopes from PTI government and new government’s policies are good to us. We appreciate the PTI’s vision and expect to reach a high target soon.”

Abid Saeed, Director JW Forland while speaking to HUM News said, JW-FORLAND became the first Pakistani company to have a 50/50 business deal with a leading Chinese company in the auto sector. It is also for the first time in the auto sector of Pakistan that due to this agreement the Chinese technology will be transferred to Pakistan that includes specialized parts like transmission, engine etc. He further said, Pakistan soon will be able to export vehicles in South Asia and Middle East region by the end of 2019.
The company confirmed its entry into Pakistan and announced to start manufacturing and assembling its vehicles locally from May 2018. The sale of its initial introductory units was well received in the market.

JWForland Automotive also inaugurated its assembly plant six months ago in Lahore, Punjab. The company claims to aim at manufacturing environment-friendly and fuel-efficient vehicles in Pakistan along with generating more jobs locally.

This initiative is another achievement of the Pak-China friendship that is strengthening with the new policies. This project will not only bring in the latest technology but also will open avenues for more opportunities. This will also create jobs on both sides of the border.

by Aqsa Mirza / Hanif Memon #Automark

Foton JW Auto Park (Pvt) Ltd., is formally going to inaugurate its automobile assembly plant on Friday, November 30, 2018, in Raiwind Road, Lahore. However, the inauguration ceremony will be held in Islamabad and Prime Minister Imran Khan is expected to attend the launch event.

The company is owned by JW SEZ and has been awarded the Greenfield status by the government under the auto policy 2016-2021.

Foton JW Auto Park (Pvt) Ltd., is collaborating with Changsha Foton limited in a 50/50 joint venture to launch vehicles in the Pakistani auto market. The company is aimed to manufacture environmentally-friendly and fuel-efficient vehicles in Pakistan. JW currently operates in more than 60 countries and is known for its quality commercial vehicles.

Sources have told #Automark that Changsha Foton Vehicle Technology Co., Ltd., President Wang Tao and JW SEZ Group President Shah Faisal Afridi on behalf of Foton JW Auto Park (Pvt.) Ltd. will attend the launch event.  While Chinese Ambassador and two Chinese government CPEC officials will also attend the launching ceremony of the plant. It is expected that the JW Forland will likely to be introduced as an official CPEC partner and manufacturer in the country.

The assembly plant is located in Lahore over 50-acre land while the current plant capacity is 30,000 units per annum. The product range (Phase-I) includes light and medium commercial cargo and dump trucks, minivans and SUVs. Meanwhile, the new plant is expected to boost the job opportunities in the country and expected to provide over 500 direct employment.

The joint venture was established apparently owing to the regressive growth of the economy through the China-Pakistan Economic Corridor (CPEC). A dialogue was earlier held between JW SEZ and Foton that gave rise to a Joint Venture, named Foton JW Auto Park. Foton JW Auto Park is aimed to become the leading commercial vehicle manufacturer in Pakistan within the next 5 years.