Automark

Apparently it seems that new auto policy 2016-21 is has made a positive impact on the automobile industry of Pakistan. Some big international players already announced their intentions to enter into Pakistan automobile industry like Audi, Volkswagen and Peugeot. On the other hand some Korean and European Car makers already joined hands with Pakistani partners.
Younus Brothers Group (Lucky Cement) has tied up with KIA Korea. Nishat Mills (Mansha Group) has announced that they have signed an MOU with Hyundai Korea. Renault France technical team has started working on the plant with Bibojee Group (Ghandhara Nissan). A part from this some Chinese automobile giants are also very active to enter in Pakistan market or enhancing their existing plant capacities.
AlHaj FAW Motors was incorporated in July 2006 and launched first product in October 2006, Started with two variants of heavy duty trucks. They had signed a distribution license agreement with FAW in July 2006, which allowed them to import, distribute and sell FAW products in Pakistan.
Initially they were importing Prime Mover in CBU condition from China. As far as marketing and sales was concern they had an edge over existing players that they have the capability to offer lease rental facility to the end customer with their own resource. This marketing tool gave their sales an immediate boost. On the other hand over all quality of FAW Trucks is also at par with their Japanese rivals. In November 2012 they established an assembly plant in Karachi and started assembly of these prime movers locally. In the year 2013 they started the assembly of 1000cc pickup and cargo vans in the same plant. Now they are going to start the assembly of SUV and Passenger Cars in this plant.
In the mean while the Government has made a change / amendment in new auto policy through SRO 483 dated 29th June, 2016 that it is compulsory every light commercial vehicle assembler has to establish ED Coat Painting system in his auto assembly plant. Now fortunately AlHaj FAW has attained that sales volume which can justify the investment cost of ED Painting System. AlHaj FAW is investing around Rupees 40/50 Crores for the establishment of ED painting system including the cost of land and material. This ED painting system shall be consists of eleven tanks and backing system can bake more than one vehicle at a time. The dipping tanks and baking ovens size is too huge that can even paint and bake Prime Movers cabin. This would be of the latest ED painting facilities in the country. Design and technology is from Korea and China. The installation and test time of this facility is around six months.
AlHaj FAW is fortunate enough that they have the back up of one of the largest automobile group of China. They are able to introduce any type of “Product Mix”. It means, light commercial vehicles, passenger cars, medium duty trucks, electric cars, hybrid cars in one time. This “product mix” give them the advantage of attaining the target of high sales volume in a short time which can easily justify the investment of Forty Crore Rupees in ED Paint Shop establishment.
The joint venture between FAW group, China and AlHaj group Pakistan, the automaker was able to launch their successful 1.3 L hatchback. FAW V2 is a good car with all the basic and some additional features which surely are lacking in our local cars.
The automaker has many different offerings in the heavy duty vehicles which include J5M 220 HP 4×2, J5M 280 HP 6×4, J5P 330HP 6×4, J5P 420HP 6×4 and FAW Tiger V. FAW Tiger V was recently launched in Pakistan and success is on its way.
In the past, when Chinese automakers came to Pakistan, they unfortunately partnered with weak groups or those who did not have a long term plan. This is what left a bad image on Chinese vehicles. It is not necessarily about the product being inferior in quality; it is just the image that created problems. But after bad experiences, Chinese companies are now smarter in picking partners.
There are many other companies who are planning to enter into Pakistan automobile market in cooperation with Chinese OEM but relatively on a smaller scale. These companies are mainly focus on light commercial vehicle segment. It may be noted that the investment cost of normal / conventional painting system is around two crore rupees. If we analyze the economic viability of these upcoming project in reference to sales / production volume and payback period of investment, one can easily understand the difference of 40 crore and 2 crore rupees. So if a new comer / investor install ED coating painting system the project will become totally unviable. In our opinion for a healthy competition “level playing field for all,” formula should be adopted. Existence of relative small companies should also be guaranteed, otherwise only big giants of the international stature will be benefitted with the new auto policy and government hopes and objectives shall not be materialized. As a result situation of unemployment will not improve. The old players of automobile industries shall maintain their monopolized stature and new big international automobile industry giants will join their “monopoly club”. Customers will suffer immensely and forced to pay huge premium money as usual.
Specially light commercial vehicles plays a pivotal role in progress of economy. They are suitable for inter city transport of goods. They are the main tool to transport agriculture goods from farms to main roads. They also use for the transportation of passenger in country side and in small towns. These are utility vehicles, do not need extraordinary cosmetics. Their main function is loading of goods, so customer wants
powerful engine and sturdy chassis.
ED (Electro deposition) Coating process actually increases the body life of the vehicle as it provides.
– Excellent resistance to corrosion.
– Realization of uniform High quality Paint coating free from Rag, Pinholes and Body rashes.
– Friendly to environment with reduced coating loss and solvent discharge.
First Automobile Works is a global contributor in the automotive industry with a 50 year history of innovation. The company FAW was established in 1953 and the name was changed to China FAW Group Corporation in 1992.

RECTIFIED POTENTIAL VEHICLE RECALLS CAN BE SAFE FOR MOTORISTS

Today, cars are being manufactured with the latest innovated automotive technology and most advanced features. In facts, 75% are made by robots and 85% car operations are controlled by computers, and when mass production cars turns into millions, there could be possibility of minor defects left in the vehicles. It all depends on where (Plant location) and when(production date) that particular car was made, based on the 17-digit VIN (Vehicle Identification Number) found mostly on the driver door pillar or front dash which can be viewed from front windshield.
It goes without saying that vehicle recalls, once identified by car manufacturers and Ministry of Transport of local government, must be notified to both dealers and their customers.
Today, raised awareness of liability claims resulting from potential safety issues has led auto manufacturers to consider recalling their vehicles even when there is only a very slight risk stemming from safety, liability and quality concerns.
When such recall news is released through the media, it can often cause customers to panic, which can result in a difficult situation for the dealers.
However, like many other aspects, it is often how the dealer handles customer concerns that will have a bearing on the future in terms of relationships and business.

MOST COMMON QUESTIONS ASKED BY CUSTOMERS

What is car recall?
An auto recall occurs when a manufacturer determines that a car model (or several models) has a safety-related defect or does not comply with a safety standard. When this happens, the automaker will alert owners to the problem and usually offer a free repair. Keep in mind that a recall doesn’t mean that the entire vehicle will be replaced.

What does a recall letter/notice include?
A recall letter should contain the following information:
• A description of the defect based on model and production period.
• The risk or hazard posed by the problem (including the kinds of injuries it can cause)
• Potential warning signs
• How the manufacturer plans to fix the problem (including when the repair will be available and how long it’ll take)
• Instructions regarding what you should do next

What should I do if I receive a recall letter/notice?
The recall letter should have instructions as to your next steps. Generally, you’ll be instructed to call your local dealer to set up a repair appointment.

What if don’t receive a recall letter?
When a recall is issued, manufacturers will do their best to contact all affected owners. If you don’t receive a car recall notice, however, you can contact your dealer. Whether you have received a letter or not, the manufacturer is still obligated to repair the defect (for free).

Does a safety recall mean I ‘m in immediate danger?
No, unless it is related with safety of your car such as brakes. If your car is on a recall list, it doesn’t automatically mean you’re in danger. However, if you learn that your car has been recalled, its best not to take the risk especially with recalls related the brake system. Have your car repaired as soon as possible, especially if the defect could pose a major hazard.

Do I have to pay to have my car fixed?
No! If your car is on recall list, all recall-related fixes should be done free of charge. You’ll need to take your car to an authorized dealer since they contract directly with the manufacturer. And to avoid complications, it’s best to bring your recall letter with you (if you have one).
If your dealer tries to charge you for the recall fixes, ask to speak to a manager and explain the situation. If you still run into issues, your next step is to contact the manufacturer directly (their number should be provided in the recall letter).

Will the problem be fixed?
Good question. The local government’s transport ministry monitors each safety recall to ensure the manufacturers provide owners with safe, free, and effective remedies. If you’re concerned that the error wasn’t resolved or believe a further problem exists, contact head office of your local car manufacture or Ministry of Transport.

Do I have to pay for extra?
You don’t have to pay for repairs to parts that have been recalled, but some drivers could still end up with a bill. Any extra work that the dealer may recommend is not mandatory and not covered. Some dealers feel that the recall issue of a car is an opportunity to build a business relationship with the customer.

Will I be facing delay?
Many car owners may face long delays before getting a car fixed. There can be a delay if parts aren’t ready, but this can be a huge disadvantage to owners/drivers, some of whom might feel pressured to keep driving a car that they need but don’t feel is safe.
However, car manufacturers do need to fix the car, but there is no requirement that they fix it right away, unless it is unsafe to drive. Some dealer may provide rental or loaner car while your car is in the shop for fixing recall issues.
As authorised dealers, do not hide recalls to make money later. In fact, follow up and encourage your customers to bring their car in to fix genuine recall concerns and issue alternate transport if required. At the end of the day, customers can save substantially on unexpected repairs resulting from recall campaigns.
For dealers, the key question is not whether your dealership will face a recall, the question is when. Is your dealership staff is fully trained and ready to respond to and stay in control during these events? There is only one way to minimize risk during this situation – be fully prepared to face a recalls.
Consider recalls as an opportunity to invite new and welcome back lost customers to explore and expand service business, and in many cases dealers can improve customer retention and loyalty by fixing free recalls issues that could translate into prospective business.

Written by: Muhammad Shahzad exclusive for Monthly AutoMark Magazine’s March-2017 printed edition

Rastgar Air Compressors Hosted a Dinner for Honoring Pakistan’s Industry
9th March, 2017 Karachi:The need for high quality air for meeting the needs of Food, Pharma, textile and other industries was stressed by Chairman, Imtiaz Rastgar while addressing guests at a dinner in honour of dignitaries from manufacturing industries and the visiting team from Gardner Denver FZE, UAE.
“It is part of our corporate social responsibility to attend to the Compressed Air utility in industry so as to supply the appropriate quality of air to each process at the lowest possible energy cost”, said Imtiaz Rastgar.
Rastgar & Co, Authorized distributor of CompAir Air Compressors in Pakistan, hosted a dinner on 8th March, 2017 at Marriott Hotel, Karachi, Pakistan to honor industries of Pakistan for their business to Gardner Denver FZE and Rastgar.
Mr. David Fenwick, Director Sales Gardner Denver FZE, specially thanked industrialist for showing confidence on CompAir Air Compressors and Rastgar services.He met individually to all guests and spoke about latest innovation in compressed air technologies to make their businesses more profitable, with more energy efficient and productive machines.
Managing Directors, CEOs and Directors from major industrials groups and Associations of Pakistan attended the dinner and appreciated the efforts put in by Rastgar Air Compressors for offering reliable products and aftermarket services. Some of the guests were Mashood Ali Khan, Chairman PAAPAM, Haseeb Ahmed, Director Sitara Chemical Industries, Tariq Haroon Dada, EVP TATA Textiles, Qamar ud Din Khan, CEO Mehran Commercial Enterprises, Adnan Yousaf, MD Transpak Ltd, Dr. Rajpoot, Technical Director Nabi Qasim Industries, Asif N. Ansari, GM Hilton Pharma, Menin, CEO Shamrock and many more.
Gardner Denver is a leading global provider of flow control technology, application expertise and support services to a diverse customer base through a family of trusted brands.CompAir, A brand of Gardner Denver, focuses on developing engineered solutions for its customers’ biggest operational challenges, with an emphasis on providing absolute reliability, increased efficiency and lower energy expenditures wherever possible.Ground breaking compressed air technologies, such as Quantima, deliver superb efficiency and performance. Plus with the dedicated in-house AirEnd manufacturing CompAir is able to specifically influence the performance of the compressor to achieve the highest levels of reliability and efficiency
Rastgar Air Compressors is authorized distributor of CompAir Air Compressors in Pakistan. For more information visit www.rastgar-co.com

Pak Suzuki Motor Company Limited achieved yet another milestone for being first in the history of automobile industry of Pakistan to commence locally manufactured Knock Down (KD) parts’ export operations to Vietnam Suzuki Corporation for mass production of Suzuki mini-truck model.

In this regard, a ribbon cutting ceremony was held at Pak Suzuki Motor Co. Ltd., Bin Qasim Plant, Karachi on 09^th January, 2017. Mr. Hirofumi Nagao, Managing Director and CEO of Pak Suzuki and Mr. Abdul Razzaque, CEO of M/s. Metalline Industries were chief guests on that occasion.

The 1^st ever locally manufactured knock down (KD) parts’ exports consignment was shippedby sea from Karachi International Container Terminal (KICT) on 20-Jan-2017.

This step by Pak Suzuki will further contribute towards the national economy in the form of foreign exchange revenue. Pak Suzuki is already among the top list of OEMs contributing a substantial amount in terms of duties and taxes towards the national ex-chequer.

Pak Suzuki has plans to further enhance the export market operations for locally manufactured knock down parts.

The Korean company, Daewoo Pakistan Express Bus Service, which has been operating inter-city buses nationwide and Lahore City buses for the last 18 years, has imported 35 articulated, state-of-the-art buses, which comply with global standards of rapid mass-transit. The Multan metro buses are equipped with CAN system,and have environment friendly Euro-3 engines which produce 75% less emissions (pollution) compared to other diesel buses. These buses will transport over 90,000 commuters daily on very affordable fare of Rs.20 one-way. The Multan Metro Bus Service will run on a dedicated corridor across the city which is 18.5 kms long comprising of 21 stations.
Speaking on the occasion, Mr. Shaheryar Chishty, Chief Executive Officer of Daewoo Express stated that operating Multan Metro Bus Service for the Government of Punjab is a matter of pride for Daewoo Express and we are very impressed by the professional manner and transparency through which the entire bidding process was conducted by Punjab Mass Transit Authority. He also said that this encourages us more to invest further into other transport projects of the Government in other cities of the country for the benefit of the public at large.

In the fast-paced world of today, the driving needs and dynamics have changed dramatically. A person who has worked hard and made a fortune for himself wants a ride that complements his achievements and pronounces his accomplishments.  The lust for prestige lures the individual to go for an SUV to articulate the masculine self-esteem on the go. However, for a practical person who uses his ride for transportation, apart from the projection of his success, a sleek sedan serves the purpose better.

To cope with both the demands, car manufacturers across the globe have recently introduced the crossover category – an automobile that combines a car platform, preferably a hatchback, and the bold features of an SUV. In Pakistan, due to this changing trend and steadily climbing economy,the demand of SUV’s is currently on the rise.

Suzuki is globally known as a small-car specialist, but one should not forget that Suzuki has also produced very successful range of 4×4’s, one of which was the world’s first crossover, named Vitara, which started being manufactured way back in the year 1988. At that point in time, Suzuki was thinking about the future, and pioneered with a crossover in a consumer segment with low customer interest at that particular time. Due to this fact, the Vitara was redesigned to become a grown-up SUV in its 2^nd and 3^rd generations, the last of which was released in the year 2005.

With the trend changing, favoring the crossover again, the 4^th generation Vitara was unveiled at the Paris Motor Show in 2014 as a crossover. Combining the sleekness in a stylish modern design with the boldness of an SUV, the Vitara won hearts for its design while inspiring many with its competitive feature package.

The 4^th generation Vitara that is launched in Pakistan comes with a 1.6L naturally-aspirated engine, which delivers a decent 118bhp at 6000 revs. This may not sound much, however the USP of this product is its weight. Weighing in at only 1185 kg, the Vitara is one of the lightest SUVs on offer. This not only allows it to carry more, but also improves its power-to-weight ratio which stands in at 104 bhp/ton. It needs to be mentioned that the big brands offering turbocharged engines may offer more power, however the power-to-weight ratios remain well under 100, which clearly indicates how well the Vitara is when it comes to performance.

As far as the feature package is concerned, the Vitara comes as standard with a multifunction steering that features Cruise control and Audio control. The 6-speed Automatic Transmission is enabled with a manual mode which allows the driver to have the manual changing sensation with the paddle shifters equipped on the steering wheel. The multifunction display shows the economy, mileage and range of the vehicle along with other variables. The air conditioning system of Vitara can be automatically controlled with input from outside temperature sensors. The hi-spec Vitara also comes equipped with a panoramic sunroof which makes the drive even more pleasurable. Keyless entry is also enabled for the hi-spec variant, along with automatic headlamps and wipers for drivers’ convenience.

A Unique aspect of Vitara is its infotainment system. The infotainment system features 10.1-inch touch screen with Android OS. The system also has the ability to connect to users’ mobile phone via Bluetooth and mirror link.

As far as safety is concerned, the Vitara provides unprecedented passive safety, as it combines high tensile steel for passenger cabin safety, with cleverly designed crumple zones that enable enhanced accidental safety for the occupants. Not only the vehicle structure, but the safety feature of 7 SRS airbags along with seatbelts having ELR and pre-tensioners ensure that the occupants remain safe post-accident.

The Vitara also comes equipped with ESP which means that the driver can depend on the vehicle to remain under control even on the harshest terrains. The ABS coupled with EBD ensures high levels of braking performance. The car also features Hill hold and hill descent controls which ensure the car remainunder control on hilly terrains. The car also comes equipped with parking sensors, to enable the driver to park with ease. One feature that adds to the beauty along with safety of the Vitara is its LED projector headlamp, which provides excellent visibility in dark, unlit roads.

The most unique feature of Vitara is its 4WD function. The indigenous “All Grip” function combines 4 driving modes which have been incorporated to give the driver maximum control of the vehicle on all terrains and driving conditions. The car automatically switches between 2WD and 4WD in order to facilitate the driver to ensure the Vitara grips the terrain. The other driving modes include the Sports Mode, which facilitates aggressive driving and maneuvering from the driver,whereas the Snow Mode complements the driver by maintaining traction on slippery surfaces. The car also comes with a dedicated Lock feature as well which maximizes the extrication of the vehicle if stuck.

Compared to its rivals, the Vitara comes equipped with features which are available as optional extras to the consumers. This means that the consumer is ripped-off if he wants to purchase a standard car which has almost no special features.

In this regard, we have to admit that Vitara comes packed with features which not only enhance driving pleasure and performance but also provide unparalleled safety to the occupants. Therefore, it is bound to present the driving pleasures to the individual who has earned his success.

by Shahzad Tabish

This exclusive review published in Monthly AutoMark Magazine’s printed edition of January-2017 issue

Chief Minister Punjab, Shahbaz Sharif has approved the launching of a ‘motorbike ambulance service’ in Lahore and some other major cities of Punjab.
Sources report that the Chief Minister of Punjab has approved the launch of 100 Motorbike Ambulances in the provincial capital-Lahore, while 50 each in Faisalabad, Gujranwala, Multan and Rawalpindi districts, initially. This scheme is primarily aimed to pick/treat injured and to deal with emergencies in congested areas, where the access to a typical ambulance remains an issue. Not only will this service rush to narrow streets, small roads and poorly accessibly localities, but will also decrease the response times drastically.
Sources reveal that the typical ambulances will follow smaller and nimbler motorbike-ambulances up to main roads to receive the injured from bikers and shift them to nearest hospitals.
This idea of motorbike-ambulances is derived from the Japan, Turkey and UK models and it is also being reported that in the latest development, the Rescue 1122 director-general had initially forwarded the proposal for this service to the Chief Minister, under the health reforms programme.

In March, earlier this year, the government approved a new automobile policy, which offers benefits exclusively for new entrants in the market, including tax incentives, in a bid to aid them in establishing manufacturing plants in the country.
The new auto policy includes the following features:
• One-off duty-free import of plant and machinery for setting up an assembly and manufacturing unit;
• Permission to import 100 vehicles, of the same variants, in the form of completely built units (CBUs) at 50% of the prevailing duty, for test marketing after the project takes off.
• Reduced 10% customs duty on non-localized parts for five years, in place of the previous 32.5% for the new investors.
• For existing investors, the duty will be reduced to 30% from July;
• Localized parts can be imported by the new entrants at 25% duty, as compared to the current 50% for five years.
• For existing players, the duty on import of localized parts
will be brought down to 45% from July, 2016.
The new automotive policy has, indeed, brought in solid interest from foreign as well as local companies, to invest in the automotive sector, with German automotive giants BMW and Audi AG, and French automakers Renault already planning on launching locally-produced cars in Pakistan. On the domestic scale, Yunus Brothers and Kia Motors will also set up auto-assembly plants in the country, whereas Dewan Farooque Motors Limited has applied for resuming vehicle production at its closed unit.
Additionally, the National Logistic Cell has shown interest in investing in the automotive sector in collaboration with Germany, while several Chinese automobile manufacturers and assemblers are also keen on establishing vehicle manufacturing plants in Sindh.
All this foreign as well as local investment in the automobile sector is, undoubtedly, good for Pakistan’s rapidly growing economy. However, it remains to be seen if these European automobile giants do actually enter into the oscillating Pakistani automobile market, and how well they perform should they start manufacturing and launching newer and more expensive brands into the market.
Some questions, however, remain unanswered: Do the people of Pakistan really need this type of transport? Are they ready to allow a larger number of cars on the already congested and heavily-jammed network of roads in the country? Are they ready to pay a higher price for their vehicles, considering
the present difficulties of everyday commute?
Unlike Lahore, Karachi has not been given much attention to in terms of development of infrastructure. Being the largest and, undoubtedly, the busiest city of Pakistan, the people of Karachi have to go through hours of traffic standstills every day because of blocked roads, unattended traffic diversions, and the ever-increasing number of cars and motorbikes. The absence of a mass transit system and a network of good roads has forced the people to revert to smaller modes of transportation, such as motorcycles, and the poor public transport system of minibuses, auto-rickshaws, and taxis, all of whom are key culprits in the worsening traffic situation of the city. The increasing capital inflow is, without a doubt, beneficial for the country’s growing economy, but the solution of the problem does not lie in the inflow of cash. The problems lie much deeper and it would take much more than foreign investment to correct them.