It has been largely believed that the government banned installation of CNG kits in zero meter cars due to shortage of compressed natural gas. The shortage of CNG was seen largely because of the increasing prices of oil and people therefore opting for alternates. The unavailability of CNG due to the huge increase in demand forced the government to finally ban CNG kits in zero meter cars.
Pakistani automakers had stopped booking of CNG versions of Mehran, Alto, Bolan, Coure and Corolla when government banned imports of CNG kits and cylinders in January-2012.
Suzuki on the other hand has been trying to lift this ban and through sources it has been revealed that the automaker has been able to convince the government. To all those out there, it’s a good news as Suzuki is going to start providing CNG kits in their zero meter vehicles. Suzuki is the one who is going to benefit the most out of it as compared to Toyota and Honda for obvious reasons.
Through sources it has been revealed that Suzuki is going to start installing CNG kits in Mehran which will later be followed by Cultus. About the Wagon R, Its showed that it’s not going to be provided anytime soon but you never know when there is a change of plan by the automaker.
The allowance of CNG kits to be installed in zero meter Suzuki cars is a double-edged knife, one showing that CNG is going to be available whereas the other edge gives a hint of increasing oil prices, not in the international market but in Pakistan only.
The market sources said that consumers, who used to rely on factory fitted CNG vehicle, would now feel happy after the government decision to allow car assemblers to install company fitted CNG kits in cars, like CNG Mehran.
Please discuss your views on lifting this ban by the government and share your thoughts of what can be done by the government in this matter.
Pak Suzuki Motors introducing back CNG fitted cars in Pakistan by next few months
Motorcycle Rickshaws banned in Sindh once again
Transport system has to be improved especially for citizens of Karachi
The Sindh High Court has once again banned motorcycle rickshaw in the sindh, the news is not new. Ban on Qingqi/motorcycle rickshaw has been so causal; now the topic seems to be boring.
Motorcycle rickshaws are found in large population in major cities of Pakistan such as Karachi and Lahore. Interesting thing about motorcycle rickshaw is that they are not being registered like other proper public transport vehicles. Being unregistered means that they don’t have any proper records with the government and which also proves that they don’t have laws to stop them.
Travelling in a motorcycle rickshaw is nothing but just being selfish to yourself and the society. Have you ever noticed that these Qingqis create huge amounts of noise and air pollution? We are already deprived of fresh air and then these Qingqis add up to more. The seats you get to sit on are nothing but a source of pain. Not only this I would also add up that there is no safety for the passengers, at least for the ones who are sitting at the back side of it. If a car behind you has fail brakes, you’re nothing but dead.
Any educated individual is not going to have issues with Qingqis. The issue is not with the type of transport but the issue is with the whole transport system. There must be some regulation on them. It’s a norm of our country that we let things get out of control and then start planning and controlling, why not just start controlling from the very beginning.
Transport system has to be improved especially for citizens of Karachi. The transport mafia should be handled and strict actions must be taken against them but unfortunately the government falls ill with a one day transport strike.
SHC must think about the class which travels in these motorcycle rickshaws is, instead of banning them, these Qingqis should get registered as none of them is. Not only this but there should be a limit and a proper stand for Qingqis because currently to be honest they are more than they are actually needed.
Foreign automakers plan to enter local market on rising deman
Pakistan’s car market has been dominated by Japanese automakers for decades, but a mini-economic revival looks set to attract new players from Europe and Korea into the mix.
Despite heavy taxation on imported vehicles, enthusiasm for owning a car in Pakistan has remained undented – thanks in part to underdeveloped public transport in the country’s sprawling cities, but also the social status it brings.
Toyota, Suzuki and Honda car assembly plants already work around the clock in Karachi and Lahore – yet customers can still wait for up to four months for new vehicles to be delivered.
Now demand for cars in the country is accelerating even more quickly, as economic growth has reached its fastest pace since 2008 while renewed investor confidence and easing inflation have spurred consumer spending.
Keen to cash in, a delegation from German auto giant Volkswagen visited the country in recent weeks, according to Pakistani officials and German diplomats.
Miftah Ismail, the chairman of Pakistan Board of Investment who took part in the talks, said Volkswagen was not the only company expressing an interest.
“There are a number of other companies from (South) Korea and Europe that we are talking to who are thinking of setting up assembly plants in Pakistan,” he said, without naming the firms.
US and European cars dominated Pakistan’s roads in the early years after it gained independence from Britain in 1947.
But fuel prices made their compact, efficient Japanese rivals more popular and from the 1960s onwards manufacturers like Toyota, Suzuki and Honda gained a stranglehold on the market.
Italy’s Fiat made a brief foray in the 1990s, while South Korea’s Hyundai as well as Daewoo-owned Chevrolet tried – and failed – to gain a foothold in the 2000s before the financial crisis forced them to exit.
Because Pakistan charges heavy duties on imported cars less than three years old, Japanese companies with in-country assembly operations can set prices significantly above the regional average.
The bottom-of-the-range Suzuki Mehran costs the equivalent of $6,300 in Pakistan but sells for around $3,900 in neighbouring India. The most popular Corolla 1.3 sedan starts at Rs1.6 million ($16,000), but buyers have to wait months or pay $1,500 for prompt delivery.
The news that Volkswagen was exploring options to enter the Pakistani market has excited car enthusiasts, who are tired of high prices and limited choices.
“I think it is a great idea because Volkswagen cars are value for money and reliability,” said Romano Karim, a fan of the classic Volkswagen Beetles from the 60s and 70s that can often be seen on Pakistan’s roads.
Haji Mohammed Shahzad, chairman of the All Pakistan Motor Dealers Association, added that having Volkswagen in the market would help drive costs down.
“The monopoly of big three could be broken if Volkswagen produces at least 20,000-25,000 cars annually,” Shahzad said.
Global auto giants are attracted by Pakistan’s booming economy, which the International Monetary Fund predicts will grow by 4.5 per cent in the next financial year.
Investor confidence in the medium-sized economy of $232 billion has improved since a new business-friendly government led by Nawaz Sharif took power in 2013, with Karachi’s share market among the world’s top 10 performers in the past year.
The country is also undergoing a major construction boom driven by Chinese investment after President Xi Jinping visited Islamabad in April to unveil a $46 billion investment plan known as the China-Pakistan Economic Corridor.
Car sales have also boomed thanks to the growth of car leasing and financing facilities. Sales in the 11 months to May this year rose 30 per cent from a year earlier, according to Pakistan Automotive Manufacturers Association.
Next Toyota Prius Plug-In Hybrid To Have 50 To 55 KM Of Range
Cars with plugs have been on sale since December 2010, and a second generation will start arriving next year.
But while long-range battery-electric cars–the 2017 Chevrolet Bolt EV and an all-new 2017 Nissan Leaf–grab attention, another vehicle on the way could be equally important.
That’s the second generation of the Toyota Prius Plug-in Hybrid.
In general, journalists dislike anonymously sourced stories. They don’t let readers evaluate the source, and they offer less accountability if the information proves to be incorrect.
Green Car Reports publishes such stories only with great care–but this is one of the times we’re willing to do so.
Within the last month, we heard from an industry source that the next Toyota Prius Plug-In Hybrid will have “30 to 35 miles” of rated battery range.
If that’s true, it will change the game significantly.
Our source is an executive in the auto industry who’s deeply familiar with the current and future universe of battery-electric and plug-in hybrid vehicles.
We trust that source, and are satisfied with the source’s explanation of how the Toyota information was obtained.
The all-new, fourth-generation Toyota Prius hybrid is expected to launch within the next few months, as a 2016 model.
Toyota itself has said that the plug-in hybrid version of the next Prius will lag the conventional hybrid model by roughly a year.
Production of the current 2015 Toyota Prius Plug-In Hybrid ended last month.
But while that car garnered sales of more than 40,000 units over four years, it was hardly beloved by plug-in car advocates.
The plug-in Prius had just 11 miles of all-electric range, and its battery and motor were marginal enough that it couldn’t complete those 11 miles on the relatively gentle EPA test cycle without switching on its engine after 6 miles.
Its 11-mile range, in fact, was the lowest of any car with a plug sold in North America.
Despite that distinction, the plug-in Prius was awarded single-occupant carpool-lane access in California. Still, Toyota heard the grumbling.
“We have been listening very carefully to Prius [plug-in] owners over the past two years,” said Satoshi Ogiso, Toyota’s chief engineer and the man in charge of developing the next range of Prius models, to reporters in August 2013.
“[We] are considering their request for additional all-electric range,” he concluded.
And if the next Prius Plug-In gets that 30-to-35-mile range rating, it will go from the lowest electric range of any car with a plug to the second-highest range of any plug-in hybrid known today.
Its range will exceed those of the Ford C-Max and Fusion Energis, the Hyundai Sonata Hybrid and future Kia Optima
Hybrid, and the now-withdrawn Honda Accord Hybrid.
It’ll also surely exceed the rated ranges of luxury plug-in hybrid SUVs coming this year from BMW, Mercedes-Benz, and Volvo, with Audi and Mitsubishi piling in next year as well.
And it’ll get significantly closer to the all-new 2016 Chevrolet Volt, which GM says will receive a range rating of at least 50 miles.
It remains to be seen whether Toyota aims to sell as many Prius plug-ins it can, or simply offer the car to get specific credits under California’s zero-emission vehicle mandate.
But the all-new Prius is expected to be better-looking, and sportier, and offer improved driving dynamics, while retaining the Toyota reputation for high quality and reliability.
Add to that an EPA fuel-economy rating of 50 mpg or more, plus 30 miles or more of electric range, and you’ve got what sounds like a very competitive new entry in the plug-in car world.
source:greencarreports
EID MUBARUK TO ALL READERS AND VIEWERS FROM AUTOMARK
EID MUBARUK TO ALL READERS AND VIEWERS FROM AUTOMARK
IMPACT OF ADVANCED EMISSION STANDARDS ON IMPORTS OF CONSTRUCTION, AGRICULTURAL AND LOGISTIC MACHINERY EQUIPPED WITH TIER 4 DIESEL ENGINES
It is imperative to develop understanding towards the international emission control standards applied to diesel engines to avoid making erroneous mistakes of importing machines equipped with sophisticated diesel engine emission control mechanism. These machines will not operate in Pakistan due to sophisticated modifications in diesel engines.
Every year, Pakistan imports new and used construction, agricultural, and logistic machines manufactured in Europe and the USA. There is a fear that due to our non-familiarization with emission standards, serious mistakes might occur in the procurement and lead to huge capital loss, while machines will remain inoperative due to unavailability of ultra-low diesel fuel and other components to support its operation.
The chance of this mistake is high towards used machinery because lack of government control exists to monitor this activity. There is a dire need to put in place a restriction to import used machines equipped with Tier 4 diesel engines, otherwise importers will suffer huge financial losses. Although the industry should gain thorough understanding of current emission standards, the chances of importing new machines with the same technical qualifications is extremely low since manufacturers have restricted the sale of Tier 4 engines (Phased-in over the period of 2008-2015) to Pakistan for obvious reasons.
This article is a sincere attempt to develop a cursory understanding about EPA standards for non-road diesel engines, and to describe reasons for adopting such standards for common understanding. This will help young engineers and industry to be aware that diesel engines with emission standards Tier 4 and above could not be operated in Pakistan due to the enumerated reasons.
There was a time when engine manufacturers’ focus was to make engine fuel efficient as it used to be the salient selling feature of the machine. Since the past two decades there is a significant shift in the approach from an exclusive focus to produce energy efficient diesel engines to address the air quality by neutralizing harmful effects of the exhaust gases coming out of machines after an exhaust stroke. These gases are Hydrocarbons (HC), Carbon Monoxide (CO), Oxides of Nitrogen (NOx), and particulate matter (PM) which is an outcome of combustion and non-combustion (small portion of unburnt gases) in the cylinder during the power stroke of the engine. These gases are dangerously harmful to human health. It is estimated that several thousand people in the world every year die of various diseases (human asthma, allergies, and cancer) caused by these gases (molecules of nitrogen oxide NOx and Hydrocarbons HC).
The Environmental Protection Agency of the USA started working (1999-2010) on establishing the standards for diesel engine manufacturers to minimize the adverse effects of engine emissions. The standards set up depended on various tiers which were started from simple to complicated technology to ensure reduction in emission, and elimination of harmful effects of gases. Tier 1-3 stage did not limit the Sulphur content percentage to an extremely low level (on emissions side the differences between Tier 3 and Tier 0 engines are the nitrogen oxide NOx and Hydrocarbons HC molecules production level), but adopted various methodologies like exhaust gas recirculation (reduces nitrogen oxide emissions), use of intercoolers, and advance fuel system to bring a combination of both, which was reduction in fuel intake and reduction in the discharge of harmful gases into the environment.
In the past we have not paid any attention on these emission standards for diesel engines and it kept gradually moving up in terms of advancement. The reason for our ignorance was that these levels (Tier 1-3) were not affecting us or rather putting any restrictions in terms of input (local diesel) as applied by Tier 4 level, instead these standards were supporting the sales force on the pretext that engines have become more fuel efficient. We never tried to research on these standards to understand the upcoming impact on the construction and logistic machinery import in Pakistan after the implementation of Tier 4. We did not realize that it is not just making engine fuel efficient, but the treatment of emission gases to minimize its harmful effects before being released in the environment.
The technology introduced in the Tier 4 has the prime objective to reduce the harmful contents from the emission gases to provide better environment to human life. To accomplish this task, the EPA has instructed the industry to minimize the Sulphur content in diesel fuel to an ultra-low level (less than 15 parts per- million- sulphur). Furthermore, a new Sulphur-sensitive technology in Tier 4 engines was introduced like as catalytic particulate filters and NOx absorbers.
As a result, for our country where diesel contains high Sulphur, any machinery having diesel engine with emission standards Tier 4/Euro 4 and above could not be operated in Pakistan due to the following reasons:
1. Unavailability of Ultra low sulphur diesel
2. Unavailability of AdBlue (pure water and urea mixture).
(It is standardised as ISO 22241 is an aqueous urea solution made with 32.5% high-purity urea (AUS 32) and 67.5% deionized water)
3. Unavailability of diesel particulate filter.
(It is a device designed to remove diesel particulate matter or soot from the exhaust gas of a diesel engine)
4. Use of Low ash engine oil.
We know that in Pakistan, Sulphur levels are high (1%) in comparison with those in Europe (0.03%). We import cheap diesel that already contains high percentage of diesel and our refineries reduce the sulphur contents to some extent, however the output remains much higher to meet the standards of “ultra-low sulphur diesel”.
The AdBlue is used to treat the emissions of NOx (nitrogen oxides) produced after post-combustion stage in diesel vehicles. This process is called Selective Catalytic Reduction (SCR) which allows reducing the emissions of NOx (nitrogen oxides). This technology requires the use of a reagent called AdBlue. This chemical is not available in Pakistan.
The diesel particulate filter is a special type of filter to arrest harmful diesel exhaust soot particles. Even if we start importing this filter, it will not work due to frequent blocking for reasons of quality of the fuel and the quality of the engine oil. Specificengine oil (low ash engine oil) is to be used; otherwise it can significantly add to the soot buildup in the filter.
Why the world is doing so? It is being done after getting to know that the exhaust gases coming out of diesel vehicles are causing serious health hazards leading to several thousand deaths every year. It is also one of the causes of acid rain affecting crop health. As an estimate, the annual emission reductions after replacement of full inventory of non-road diesel engines (Tier 4) will reduce 738,000 tons of Nox and 129,000 tons of PM from the environment preventing 12,000 premature deaths by 2030.
The incorporation of emission control technology (modified engine) is expected to add up in the equipment cost by 1-3%. Also, reducing Sulphur from diesel to attain 15ppm level would be 7 cents per gallon. The anticipated saving in the machine maintenance cost due to low Sulphur would offset 4 cents per gallons.
There is no huge increase in the cost of the machinery, but the benefits in terms of making the air cleaner is huge with regard to human health and its overall impact on the globe.
Our neighbour India has already attained Tier 3 emission level (under 50 HP in October 2010 and above 50HP in October 2012) considering its impact on the environment and possible deprivation from export market and simultaneous import of modern machines.
In Pakistan we are at Tier 0 level, and so far we are not even introduced to this big change in the making. Despite the fact that it’s an important subject (environment) to be looked into by the government, we are stuck with complications to decide if the old federal legislation should be used (Laws are still valid), or the provinces should make their own laws as environment has become the provincial subject after the 18th amendment in 2012.
The other provinces have not yet enacted new environment legislation after the 18th amendment. In reality whatever progress was made on the Federal level prior to the 18th amendment is getting stale, while the provinces don’t have the capability to do some legislative/regulatory work in the field of environment.
Most of our issues are our own making which could be resolved through political commitment.
References:
https://www.dieselnet.com/standards/us/nonroad.php
www.epa.gov/otaq/nonroad-diesel.htm
United States environmental Protection Agency (2014), office of Transportation and Air quality, EPA-420-F-14-002, USA:
United States environmental Protection Agency (1998), air and radiation, EPA 420-F-98-034, USA.
BY
Syed Mansoor Ali
Published in Monthly AutoMark Magazine’s July-2015 printed edition.
New milestone for Automechanika Dubai as trade visitors to three-day event in 2015 pass 30,000 mark
Middle East and Africa’s largest automotive aftermarket trade show attracts 30,835 visitors from 130 countries
Dubai, UAE: The unrelenting momentum of Automechanika Dubai continues to gather pace with no signs of slowing down, as visitors to the three-day event passed the 30,000 mark for the first time in its illustrious 13 year history.
A total of 30,835 trade buyers from 130 countries passed through the 2015 edition of the Middle East and Africa’s largest automotive aftermarket trade fair, a seven per cent increase over the previous year, according to organiser Messe Frankfurt Middle East.
With 1,889 exhibitors from 59 countries occupying 17 per cent more space than in 2014, Automechanika Dubai 2015 concluded on 4 June at the Dubai International Convention and Exhibition Centre with more international and local representation than ever before.
The increasing global interest in the wider region’s automotive aftermarket also comes as Dubai Customs released figures showing Dubai’s trade for auto parts and accessories was valued at US$12 billion in 2014, 10 per cent more than in 2013.
That figure includes imports of auto parts, accessories, tyres, and engine components worth US$7 billion last year, while exports and re-exports were worth US$5 billion, reinforcing Dubai’s premier status as a major liaison between Asian, European and North American manufacturing countries and consuming regional markets.
Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “The double-digit growth of Dubai’s auto parts trade underlines the Emirate’s important role as a key gateway to emerging markets throughout the world.”
“This growth goes hand-in-hand with Automechanika Dubai, which is the wider region’s only dedicated trade platform where the entire global automotive aftermarket community converges for three busy days to expand their presence and business networks not only in the Middle East and Africa, but also the subcontinent and CIS.”
New product launches, partnerships, distribution agreements, and manufacturing facility announcements by leading global majors and local players alike were the norm at Automechanika Dubai 2015.
At the forefront of new announcements was the show’s Headline Sponsor and UAE-based ENOC, which opened a 5,000sqm lubricants and grease manufacturing plant in Dubai to complement its existing facility in Fujairah.
According to Mohammed El Sadek, Director of ENOC’s Lubricant Division, the two plants have a total production capacity of 300,000 metric tonnes annually, most of which is exported to more than 60 countries.
“The UAE is the Middle East’s largest hub for manufacturing of lubricants, manufacturing close to 1.5 million metric tonnes annually,” said El Sadek. “Only 200,000mt is used domestically, so there’s around 1.3 million metric tonnes exported throughout the region as well as into Asia, South East Asia, Africa, and the sub-continent.
“There is huge potential to build on this business especially for export and Automechanika Dubai gives us the platform to expand into new markets where we are not yet present,” added El Sadek.
“If we look at the mix of visitors to Automechanika Dubai, we are looking at more than 100 countries, and a lot of these countries we still don’t have business in so it’s important to be here.”
Automechanika Dubai focuses on six product sections of Parts & Components and Systems and Electronics (1,340 exhibitors in 2015), Tyres & Batteries (190 exhibitors), Accessories & Tuning (166 exhibitors), Repair & Maintenance (109 exhibitors), and Service Station & Car Wash (84 exhibitors).
The largest section, Parts & Components and Systems & Electronics, spanned more than 41,000sqm of exhibition space alone, and was packed with biggest names of the international automotive aftermarket.
Among these was Belgian-headquartered WABCO, a world-leading supplier of electronic braking, stability, suspension and transmission automation systems for heavy duty commercial vehicles.
Sherif El-Sheikh, Regional Leader for the Middle East and Africa, WABCO Trailer Systems, Aftermarket and Off-Highway Division, said the region presented major growth opportunities for the automotive sector.
“The Middle East continues to close the gap to advanced safety and efficiency technologies more common in developed markets,” said El-Sheikh. “Therefore, we see it as a glass half full because it means there are more opportunities to introduce the latest innovations that have already been around in mature markets.”
“Now is the perfect time to do business in the Middle East and Africa and most of the main players in the commercial vehicle industry are exhibiting at Automechanika Dubai showing off their capabilities. There’s a good reason behind that and that’s because many industry experts are expecting this market to grow for many years to come.”
Among the more innovative product launches at Automechanika Dubai 2015 was Irish company No-H2O’s waterless carwash solutions. No-H2O signed a partnership agreement with Central Trading Company (CTC) – part of the Al Rostamani Group – at Automechanika Dubai. The deal, which is expected to exceed AED10 million, will see CTC take on the role of master franchisee and act as the exclusive distributor for No-H2O in the UAE.
“We’re revolutionising the UAE car market by introducing No-H2O and we will continue to satisfy our valuable customers and exceed their expectations,” said Mohammed Aqel, General Manager of Central Trading Company.
“This region is faced with a lot of water consumption issues and No-H2O supports the growing need to preserve water and reduce waste. All No-H2O products are biodegradable and eco-friendly, using the latest waterless technology on the market today. No-H2O is also the only product of its kind approved for use on commercial aircraft such as Boeing and Airbus, so it’s highly accredited.”
Automechanika Dubai is the definitive must-attend trade show for the wider region’s automotive aftermarket, and has in recent years attracted a growing number of African visitors looking for suppliers of genuine parts, accessories, and components.
More than 3,000 trade buyers from the world’s second largest continent stopped by Automechanika Dubai 2015, including Nigerian Engineer Tunde Koiki, CEO of Teekay Service Centre, who has visited the show for the past six years.
“Every year there’s something I want to achieve at Automechanika Dubai,” said Koiki. “This year my target is to meet manufacturers and establish partnerships in Nigeria where there is a strong demand right now for genuine parts.
“I can meet suppliers one-on-one and can and buy from them directly. Having genuine parts sourced at Automechanika Dubai has helped my business grow so far, and I’m sure that will be the same for any Nigerian car parts dealer.”
As the dust settles on another record-breaking show, the wheels are already in motion for Automechanika Dubai 2016. The 14th edition will take place from 8-10 May 2016 at the Dubai International Convention and Exhibition Centre, a month earlier than its usual dates to accommodate the Holy month of Ramadan.
Porsche Hybrid : Why it’s the car of the season
Porsche has introduced a brand new Cayenne S E-Hybrid, an SUV with the attitude of a sports car. A
beautiful and powerful car, the Cayenne S E-Hybrid has an abundance of exciting features and is a
testament to the premium, luxury style that is expected from Porsche. Porsche is currently the only car
manufacturer that has three plug-in cars: the Cayenne S E-Hybrid, Panamera S E-Hybrid and 918 Spyder.
First impressions of the Cayenne were positive, with the sleek sharp design immediately catching the
eye. Clearly a car of style, the inside is as elegant as the outside, with comfort and ease being a priority.
With spacious and comfortable seating, the Cayenne is easy to feel at home in. The acid green brake
calipers, emblems and needles stand out immediately, giving the car a stylish look and the multifunction
sport steering wheel boasts a host of features, including shift paddles, making for a smooth driving
experience.
As for mechanics, Porsche has created a master-class for all hybrid cars to aspire to. With E-Hybrid
technology built-in, and a massive new 3.0 liter V6 engine, the Cayenne performs impeccably. In the
high-end SUV segment, the Cayenne is the first plug-in hybrid car, boasting a lithium-ion drive battery
with a capacity of 10.8 kWh that can be fully charged in just 3 hours or so through the plug-in function.
The electric motor also gets charged while driving, making the car even more efficient.
Being an E-Hybrid, the car is environmentally friendly, not releasing any local emissions when running on
electricity. Overall fuel consumption is only 3.4 liters per 100 kilometers, making for extremely low CO2
emissions amounting to only 79g/km. The battery allows 18 to 36 kilometers of driving purely on
electricity, with the top electric speed of 125 km/h, easily encompassing most daily journeys without the
need for fuel. The electric motor brings 95hp, while the total output of the powerhouse Cayenne is a
whopping 416hp. With total torque of 590 Nm, the car performs at a sports car level and can reach
speeds of 100km in 5.9 seconds, with a top speed of 243 km/hr.
The suspension, acceleration and deceleration of the car are impressive and the car is a pleasure to
drive, performing with seamless precision. While day to day driving is a charm, the Cayenne has sports
settings that make it a dream come true by bringing sports to SUVs. With blazing speeds, graceful
performance and undeniable style, the Cayenne stands out, racing as smoothly as a sports car and
putting others to shame. This is a hybrid that appeals to the soul of a true driver. Packed with high-
quality features; spacious, comfortable, and speedy, the Porsche Cayenne is the car for the grown-up
who harbours a childhood dream of driving a sports car.
MADE IN PAKISTAN – YAMAHA WIN’S RACE IN GOOD LOOKING NEW MODEL
Bike Dealers charging Premium for New Model, Decades Old Bikes Still In Production, Earlier Yamaha resumes assembly in Pakistan, New Investment.
Some dealers are charging “premium or on money” on spot sale of newly launched locally assembled Japanese bike as buyers cannot buy it at company’s fixed price.
The new Yamaha 125cc was introduced in the last week of April, but some authorised dealers at Akbar Road, Karachi’s main motorbike market and big cities, after running out of stocks were insisting buyers to book the bike which would be delivered either after 12 days or in the first week of June.
However other dealers having stocks were demanding Rs135,000 for on spot sale as against the company’s price of Rs129,400 and another Rs4,000 for registration and lifetime tax.
It is very clear that the assembler has not deliberately cut down the production to check the buyers’ response or it couldn’t able to meet the unprecedented demand. Unfortunately assembler did not have any idea of good response from the buyers for giving CKD orders for future production.
Dealers said despite higher bike snatching/stealing cases in Karachi the response was good. Buyers usually go wild whenever new bikes find way into the market. The demand and supply gap becomes more alarming when impatient consumers from the rural areas also throng the authorised showrooms in large numbers to lift the bike at any price.
Such phenomenon of “on money or premium” is well-known for the new models of locally assembled cars. Bike dealers said that people had actually become sick of using decades-old models of 70cc bikes and were now trying to shift their focus towards over 100cc bikes due to better comfort level, fuel efficient engines and impressive designs.
They said it is too early to predict future sales scenario of Honda and Suzuki but some dealers were of the view that Yamaha may give tough time to its rivals. The main reason is that other two Japanese assemblers marketing decades old models.
Meanwhile, sales of Honda bikes during July-April 2014-15 slightly fell to 526,327 units from 535,078 units in same period last fiscal year. However Honda sales in April 2015 went up to 61,488 units from 53,030 units in March 2015.
Suzuki motorcycle sales plunged to 18,743 units in the first 10 months of this fiscal year as compared to 20,176 units in the same period last fiscal year. Suzuki’s sales in April 2015 crawled up to 2,075 units from 2,007 units in March 2015.
Import of completely knocked down kits and semi knocked down kits (CKDs/SKDs) for assembly of overall bikes rose by 22 per cent to $64 million in July-March 2014-15 from $52.5 million in same period last fiscal year.
Earlier in the month of April 2015, the new investment made by Yamaha will create jobs and bring new technologies,” said Yamaha Motor Company President Hiroyuki Yanagi, adding that, “Pakistan is all set to become one of the top global markets of motorcycles.
Addressing the inaugural ceremony at Port Qasim Industrial Zone, he appreciated the role of the federal government in helping the company set up the plant.
Yamaha Motor Pakistan (Pvt.) Ltd, a newly formed company with 100% equity from Yamaha Motor Company, Japan, is expected to produce 30,000 units in year 2015.
The factory has been established with an initial investment of Rs5.3 billion and its current production capacity is 40,000 units per year. It has hired 200 employees in the first phase. Ishaq Dar speaks.
Finance Minister Ishaq Dar, present on the occasion, said the event is not only historic for Yamaha but also special for the government as it had been looking forward to witnessing this inauguration for the last two years. “The federal government is aggressively looking for Foreign Direct Investment (FDI) because the future of Pakistan lies in it, especially in the manufacturing sector,” he said.
Talking about foreign investors’ concerns, he said, “The government is ready to help in providing additional security in any of the provinces.”
He hoped that Yamaha will get a good response in Pakistan because of the growing demand of motorcycles in the country. “The middle class in Pakistan is growing and people want quality motorcycles,” he added.
In its initial phase, the company has introduced the “YBR125” model, a 125cc engine motorcycle, with a network of 140 dealerships in different parts of the country. Equipped with new technology, industry analysts say the initial price of YBR125 (Rs129,400) is competitive enough for its rival models in the market. Pak Suzuki’s GS150 is available in Rs128,500 while Atlas Honda’s CG125 and CG125 Deluxe is available in Rs102,900 and Rs124,000, respectively.
Japanese Ambassador to Pakistan Hiroshi Inomata said that the presence of the top leadership of Pakistan in the inauguration ceremony signifies the importance of the investment Yamaha has brought into Pakistan.
“We appreciate the efforts of the government of Pakistan in bringing FDI in the country. We believe this is a win-win situation for both Japan and Pakistan,” Inomata added.
Board of Investment Chairman Dr Miftah Ismail said the middle class of Pakistan was growing at a rapid pace. From the current level of 70 million, it will touch 100 million by 2025, making Pakistan one of the top six countries with the largest middle class in the world, he added. Decades old cars, bikes still in production in Pakistan
Pakistan auto industry has been well established for the last 50 years. Around 20-25 years back, India and China were far behind than Pakistan. Because of mediocre policies, greedy rulers, bureaucracy and their hollow vision of policy making, Pakistan looks 100 years back than India and china especially in auto sector.
Many brand names still exist but their models, body shapes and engines have been completely changed decades back by manufacturers in Japan to beat competition, match technological leaps and meet emission standards.
There is no Honda CD-70cc in the world as Pakistan is the sole assembler. More than 100 assemblers are rolling out the same 70cc model with their own brand names. The government of Pakistan introduced tariff based system in 2006 for introduction of new bike models but all the assemblers were literally failed in bringing new models. Said Muhammad Sabir Shaikh, Chairman Association of Pakistan Motorcycle Assemblers (APMA).
India is producing over 100cc bikes of Euro III and Euro IV fuel efficient engines while in Pakistan the manufacture of Honda 70cc had added Euro II facility in decades old CD-70 bike in 2012.
The price of CD 70cc produced by Atlas Honda Pakistan is about Rs. 63,500, while CG-125 sells at Rs.103,000. Honda CD-70 model had inspired Chinese bike assemblers to introduce the same model at a price of Rs.37,000-40,000.
It is not clear why the Japanese bike assembler chooses to keep redundant 70cc model in Pakistan and which formula is being used to determine its price. The assembler claims to have achieved over 94 per cent indigenisation including engine parts in CD-70cc bike. Same is the case with a particular model of Honda CG-125cc. By 2002, the deletion level reached 87 and 80pc in CD-70 and CG-125.
Honda CD-70cc bike has been in production since 1973. The company made overall change in model in 1993. Muhammad Sabir Shaikh, Chairman Association of Pakistan Motorcycle Assemblers (APMA) said that actually CD 70 is not original CD 70 but actually it is CD 90 or JH 90 of Japan and China.
Atlas Honda then changed its 70 CC and 125 CC Engines in to Euro II model in 2012. The local production of CG-125 got underway in 1981-1982 followed by a big engine change in same model in 1993 and then it was transformed into Euro II in 2012.
In over 20 years this bike should have been “Made in Pakistan bike” but this has not happened as its price is jacked up when yen gains value nullifying the claim of localisation. Atlas Honda produced overall 68,637 bikes in 1996-1997 and its production swelled to 639,066 units in 2013-14.
Honda Japan has given exclusive rights to Atlas Honda for manufacturing of CD-70cc and CG-125 in Pakistan and also for their exports to various countries like Sri Lanka, Bangladesh, Afghanistan etc.
There was no formula to phase out the model. “As long as there is demand we do not feel the need for change in the model.”
Sabir shaikh said 70cc and 125cc bikes from China can be imported at $250 and $350, respectively. But they cost dearly here after paying duties and taxes.
Since the PML-N took came into power in May 2013, around 2 years have passed and the government had yet to announce a new auto policy on which Khawaja Asif, convenor was assigned the task to prepare the new auto industry policy draft by taking stakeholders into confidence for submission to the ECC.
Due to delay in AIP, smuggling of auto parts is thriving for the industry and after market and many assemblers have put on hold their local investment plans.
Sabir Shaikh said after the launch of YAMAHA YBR 125 the customers are eagerly awaiting for new models of two wheelers especially in more than 150cc as people are tired of plying 70cc bikes.
He said new models can only be brought in the market when the government will make industry friendly policies by giving relief in local taxes and customs duty on import of spare parts.
He said for the last two years, sales of Honda 125cc, Suzuki 150cc and few Chinese 100cc and 125cc models have shown positive growth. Response of YAMAHA YBR-125 is also very positive. Regular users of 70cc are shifting their focus on high engine power bikes as they are also fuel efficient. In case petrol prices come down in future the sale of high engine power bikes will swell sharply, Sabir said.
This exclusive article published in Monthly AutoMark Magazine’s June-2015 printed edition.