Automark

As the world hurtles toward a future defined by clean energy, electric vehicles, artificial intelligence, and advanced defense technologies, the raw ingredients fueling this transformation are not just data and devices—they are minerals, water, food, and people. The future belongs to those who can master the sustainable management of these finite resources.

In the unfolding saga of 21st-century global power dynamics, ‘’REM’’ rare earth minerals have quietly taken center stage. These 17 elusive elements—hidden in the Earth’s crust—are driving the Fourth Industrial Revolution. They form the backbone of cutting-edge technologies such as electric vehicles, wind turbines, solar panels, defense equipment, and smartphones. Yet, behind their scientific obscurity lies a geopolitical chess game with profound consequences.

The Strategic Value of Rare Earth Minerals (REM)

Rare earth minerals (REMs) like neodymium, lanthanum, cerium, and dysprosium are not as scarce as the name suggests. But their mining, refining, and processing require highly sophisticated infrastructure and technical expertise. The world’s heavy reliance on REMs in renewable energy, electronics, and national defense systems has elevated them to a position of critical strategic importance.

The Mineral Awakening – Powering Tomorrow’s Technologies

Rare earth minerals such as lithium, cobalt, nickel, graphite, and neodymium are the new global power currency. These strategic materials are indispensable for EV batteries, semiconductors, 5G networks, military hardware, renewable energy systems, and satellite communications.

According to the International Energy Agency, global demand for rare earth and critical minerals could rise by 400–600% by 2040. Countries such as the United States, China, Australia, and the Democratic Republic of Congo are aggressively securing these resources through investment, mining, and trade control.

China’s Global Monopoly: 90% Market Control

Over the past two decades, China has carefully orchestrated its rise to dominate the global REM value chain. Currently, it controls nearly 90% of the global supply—from raw mining to high-purity processing. It is also heavily investing in education, with 39 universities running dedicated REM programs to ensure a sustainable and skilled talent pipeline.

In an unprecedented geopolitical maneuver, China banned the export of 12 key rare earth elements to the United States as a retaliatory response to Trump-era tariffs. This marked the first instance of any country using REM sanctions as a strategic weapon against the U.S.—a country that heavily relies on these minerals for its defense systems, semiconductor production, and high-tech industries.

The Silent War: Technology, Resources, and Sanctions

This confrontation has ignited a silent but strategic war—a battle not of arms, but of access. Western nations, alarmed by their dependence on China, are scrambling to secure alternative REM supply chains. Australia, Canada, and even some African nations are rapidly mobilizing exploration and processing efforts.

The U.S. Defense Department, for instance, has started funding local rare earth projects. The European Union is also prioritizing critical mineral strategies under its Green Deal Industrial Plan. The stakes are high. Whoever controls REMs controls innovation—and in turn, global influence.

Pakistan’s Untapped Treasure and Strategic Shift

Pakistan is sitting on immense untapped mineral wealth—especially in regions like Balochistan, home to one of the world’s largest undeveloped copper-gold mines: Reko Diq. In early 2025, Pakistan hosted the Minerals and Metals Investment Conference, signaling its serious intention to develop the mining sector.

At the conference, the government, supported by the military and private sector stakeholders, laid out the National Minerals Investment Policy 2025 and the National Mineral Harmonisation Framework. These initiatives aim to:

– Streamline licensing and ease investor entry
– Emphasize sustainable, water-efficient mining
– Ensure community benefit sharing
– Foster domestic refining and value-added exports
– Create green mining corridors and human capital development hubs

Pakistan is clear in its vision: it does not want to become a raw material exporter, but a value-added player in the global rare earth supply chain.

The Water Crisis – The Silent Emergency

While minerals are being unearthed, Pakistan is simultaneously sinking into a water emergency. With per capita water availability below 900 cubic meters, Pakistan is now one of the top ten most water-stressed nations. Climate change, glacier melt, groundwater depletion, urbanization, and poor water management are worsening the crisis.

Regions rich in minerals, such as Balochistan, are also the most water-deficient. The expansion of mining must therefore come with cutting-edge water conservation measures such as:

– Solar-powered desalination
– Tailings recycling and wastewater reuse
– Integrated Water Resource Management (IWRM)

Food Security – A Ticking Time Bomb

Over 90% of Pakistan’s water is used for agriculture. Yet, outdated irrigation techniques, monoculture practices, and climate disruptions are leading to falling yields and rising food insecurity. With 38% of the labor force dependent on agriculture, this presents both a social and economic threat.

There is a pressing need to modernize agriculture through:

– Climate-smart precision farming
– Crop rotation and drought-resistant seeds
– Drip irrigation and agro-solar integration
– Linking mining revenues to rural farming reform

Population Pressure – The Overlooked Dimension

While rare earth minerals, food, and water dominate the strategic discourse, one of the most critical—and often underestimated—challenges facing Pakistan is its explosive population growth. With a population surpassing 240 million, Pakistan ranks among the most populous countries in the world. This demographic explosion is a double-edged sword: it offers a vast labor force and potential market, but it also threatens to overwhelm the country’s limited resources and infrastructure.

The race for clean water, nutritious food, education, healthcare, and economic opportunities is intensifying. Pakistan’s per capita availability of natural resources—including land, water, and energy—is shrinking fast. Without targeted investments in human development, mass education, resource management, and skills enhancement, even the most abundant mineral reserves will become a liability rather than an asset.

The demographic challenge isn’t isolated—it compounds Pakistan’s already daunting internal vulnerabilities:

• A population growing at over 2% annually, adding millions of mouths to feed every year.
• Rapid urbanization, creating unplanned megacities that strain water, sanitation, housing, and transport systems.
• A youth bulge, with over 60% of the population under the age of 30, largely undereducated, underemployed, and underprepared for the demands of a modern economy.
• Worsening food and water insecurity, aggravated by climate change, outdated agricultural practices, and inefficient water use.
• Political and governance instability, creating investor uncertainty and slowing the pace of reform.

If Pakistan does not address the population challenge in parallel with mineral and environmental strategies, it risks falling into a resource curse—a paradox where natural wealth leads not to prosperity, but to conflict, inequality, and ecological collapse.

What Needs to Be Done?

If Pakistan is to benefit from the global REM revolution, immediate and aggressive action is required:

1. Launch a National REM Task Force to map, regulate, and develop this sector.
2. Introduce dedicated rare earth engineering and geology programs in universities.
3. Partner with friendly nations like Germany, Japan, or Turkey for tech transfer and joint ventures.
4. Digitize mineral data for transparency and protection from resource theft.
5. Establish a mining sustainability framework to ensure environmental and community protection.

The Way Forward – A National Resilience Strategy

Rather than treating minerals, water, food, and population separately, Pakistan must integrate them into a single national development strategy. A few cornerstones of this strategy should include:

– Strategic Resilience Funds: Invest mineral profits in food and water systems
– Triple Nexus Governance: Link mining, agriculture, and water authorities under one framework
– Skill Development: Train youth in mining engineering, hydrology, agro-tech, and environmental science
– Geopolitical Readiness: Build alliances with rare earth-consuming countries and diversify trade routes

From Crisis to Catalyst – The Century of Resilience

Pakistan’s rare earth revolution must not be seen as a stand-alone mineral surge—it must be embedded within a broader human development and national resilience agenda. The true value of mining lies not just beneath the earth but in what we build above it.

Mining revenues must be reinvested into:

• Education systems that foster scientific thinking and technical skills
• Healthcare and nutrition to support a productive, healthy population
• Vocational training to equip the youth for roles in green industries
• Digital literacy to prepare citizens for an increasingly data-driven economy

Only through inclusive growth, equitable resource distribution, and community participation can Pakistan transform its demographic pressure into demographic power. The resource-rich future must belong to all Pakistanis—not just a few.

The countries that will lead in the 21st century are not merely those endowed with rare minerals, but those that govern them wisely, process them cleanly, and share them justly. The global rare earth race is not just about extraction—it’s a test of sustainability, innovation, and leadership.

For Pakistan, the intersection of mineral opportunity, water scarcity, food insecurity, and a surging population is not a ticking time bomb—it is a once-in-a-century opportunity to reimagine its national destiny. Through smart policy, international partnerships, and local empowerment, Pakistan can turn this convergence of crises into a platform for renewal.

Let this be the century of minerals, but more importantly, let it be the century of balance, foresight, and resilience.

Because Pakistan does not just need a mineral revolution.

It needs a national transformation.

This exclusive article has been written by @asif-mehmood and published in Automark’s May-2025 printed/digital edition.

1. IMF’s Standard Approach vs. Pakistan’s Economic Reality

The IMF advocates for tariff reductions to promote a free-market economy, arguing that high tariffs protect inefficiencies and prevent competition. However, in a developing economy like Pakistan, prematurely removing tariffs without a comprehensive industrial growth strategy would lead to deindustrialization, rising imports, and a deteriorating trade deficit. Even developed countries like USA, Canada and others increasing the tariff to safe guard the manufacturing industries in their countries.

2. The Fallacy of Immediate Liberalization

The IMF assumes that reducing tariffs will automatically improve efficiency and attract Foreign Direct Investment (FDI). However, Pakistan lacks the investment environment of Vietnam, India, or Thailand. Without strengthening local production and export capabilities, tariff reductions alone will not attract investors or enhance industrial competitiveness.

3. Pakistan’s Vision: Becoming an Export-Oriented Automotive Hub

Pakistan must develop a long-term strategy to position itself as a global hub for small fuel-based and small electric vehicles or Hi-Tech Industries. Government incentives should be linked to export commitments, ensuring the industry’s sustainability and contribution to foreign exchange earnings.

Global Success Stories and Lessons for Pakistan

Thailand: The “Detroit of the East”

Thailand has established itself as a leading global automotive production and export hub through strategic government policies promoting localization, foreign investment, and export-oriented growth.

Key Strategies:

• Product Champion Approach: Targeted incentives for 1-ton pickup trucks and eco-cars.
• Infrastructure Development: Investment in the Eastern Seaboard Economic Corridor for state-of-the-art logistics and export capabilities.
• Result: Thailand became the world’s 10th largest automotive producer, with exports comprising over 35% of locally assembled vehicles.

Taiwan: From Import Substitution to Export Powerhouse

Taiwan transitioned from import substitution in the 1950s to an export-driven economy by the 1980s, fostering strategic alliances and investing in innovation.

Key Strategies:

• Export Promotion: Currency devaluation and policy incentives to boost competitiveness.
• Strategic Alliances: Partnerships with foreign manufacturers to enhance domestic production.
• High-Tech Integration: Heavy investment in automotive electronics and innovation.
• Result: By 2016, Taiwan’s automotive industry reached a $20 billion output, making it a key player in vehicle electronics and components exports.
• Export-driven policies helped Taiwan achieve $479 billion in merchandise exports in 2022.

Indonesia: Regional Automotive Export Hub

Indonesia has strategically developed its automotive sector by focusing on local production and global market penetration.

Key Strategies:

• Electric Vehicle (EV) Incentives: Reduced taxes for hybrid and electric vehicles to boost adoption and local manufacturing.
• Export Growth Initiatives: Vehicle exports surpassed 505,000 units in 2023, with projections exceeding 1 million units in future.
• Investment in Nickel Processing: Strengthened EV battery production, positioning Indonesia as a supplier for global EV giants like Tesla.
• Result: Indonesia has attracted major EV manufacturers and strengthened its global automotive footprint.

Vietnam: Strategic Integration into Global Markets

Vietnam has positioned itself as a rising automotive force through strategic policies and free trade agreements (FTAs).

Key Strategies:

• Automobile Industry Development Strategy: A roadmap to enhance domestic production and export capabilities.
• FTA Participation: Trade agreements with ASEAN and the EU Countries.
• Green Vehicle Initiatives: Incentives for battery-powered and hybrid vehicles align with global sustainability trends.
• Result: Vietnam aims to export 90,000 vehicles worth $10 billion by 2030, leveraging its integration into global supply chains.

Pakistan’s Roadmap to an Export-Driven Automotive Industry

To transform Pakistan into a global automotive hub, the government must adopt a long-term strategic vision centered on export growth:

1. Policy Stability & Consistency:
   • Establish a clear, stable auto policy with a focus on export-led growth.
   • Offer predictable incentives to attract both local and foreign investment.
2. Export Incentives & Localization:
   • Provide tax benefits and subsidies for companies committed to exporting vehicles and auto parts.
   • Encourage localization of key components to reduce reliance on imports.
3. Infrastructure & Logistics Development:
   • Develop dedicated industrial zones for automotive manufacturing.
   • Enhance port facilities and logistics networks to support exports.
4. Strategic Alliances & Investment:
   • Facilitate joint ventures with global automakers to transfer technology and expertise.
   • Promote Pakistan as a cost-competitive destination for manufacturing.
5. Specialization in Small & Electric Vehicles or Hi-Tech Industries:
   • Position Pakistan as a hub for small fuel-based cars and small electric vehicles (EVs) or Hi-Tec Industries.
   • Invest in EV battery production to integrate into global supply chains.

Suggestion: A Strategic Pivot Towards Global Competitiveness

Pakistan’s economic future depends on shifting from an import-dependent model to an export-oriented industrial base. Learning from countries like Thailand, Taiwan, Indonesia, and Vietnam, Pakistan must embrace long-term policies that prioritize industrial growth, technological advancement, and global market integration. By fostering a competitive automotive industry with a strong export focus, Pakistan can enhance foreign reserves, ensure economic stability, and establish itself as a key player in the global automotive sector.

By @mashood-khan, Director – Mehran Commercial Enterprises, Expert Auto Sector / Former Chairman PAAPAM

This exclusive article has been published in Automark’s May-2025 printed/digital edition.

Dear Readers Pakistan, with its strategic location, rising population, and emerging logistics needs, presents a unique opportunity in the commercial vehicle sector. While private automotive markets—especially motorcycles and small cars—have seen rapid expansion, the commercial vehicle industry remains relatively stagnant. A combination of fragmented planning, policy loopholes, and strategic missteps from key local players has left a significant vacuum in this market.

This article explores the current approximate size of Pakistan’s commercial vehicle market, a breakdown of different segments including LCVs, pickups, heavy-duty trucks, vans, MPVs, and luxury buses, and uncovers why the vacuum exists—mainly due to misaligned priorities and underinvestment by major local entities.

1. Market Size and Overview

Pakistan’s commercial vehicle market has not kept pace with the country’s logistics and infrastructure demands. With road freight still accounting for more than 92% of goods transport in Pakistan, the demand for commercial vehicles—especially LCVs and heavy trucks—should ideally be higher than current numbers suggest.

Estimated Annual Sales by Segment (approximate figures based on industry insights and market trends up to 2024):

Segment	Annual Units Sold (2023)	Comments
LCVs (Light Commercial Vehicles) – Pickups (0.5 – 2 tons)	20,000–25,000 units	Dominated by Suzuki Ravi, Toyota Hilux
Medium Pickups / 3-ton Trucks	4,000–6,000 units	Fragmented; some Chinese imports
Heavy-Duty Pickups / 5-ton	3,000–4,000 units	Primarily for industrial use
Heavy Trucks (above 6 tons)	5,000–6,500 units	Increasing demand with CPEC/logistics
Vans / MPVs	12,000–15,000 units	Used for passenger/family + school
Luxury Buses (Intercity + Executive)	1,500–2,500 units	Mostly import-based, high-margin segment

Total Market Size (2023): 50,000 to 60,000 units/year

Despite a sizable freight and passenger demand, these numbers reflect underutilization of potential, especially in freight vehicles and intercity buses.

2. Key Players and Brands

Local OEMs / Assembling Players:

• Ghandhara Industries (Isuzu trucks and buses)
• Master Motors (Foton, Changan, Yutong)
• Hinopak (Hino trucks & buses – facing decline)
• Suzuki Pakistan (Ravi, Bolan – LCV segment)
• Toyota Indus Motors (Hilux – premium pickup)

Import Players (Used/New):

• Chinese brands like Dongfeng, JAC, FAW
• Japanese imports (used buses, MPVs)
• European players in luxury segment (Volvo, Mercedes)

Many of these brands are under-marketed, poorly positioned, or neglected due to a shift in business focus or financial constraints.

3. Segment-Wise Insights

a. LCVs & Small Pickups (0.5 – 2 Ton)

This is the most active segment due to its use in small logistics, agriculture, and urban goods transport. The Suzuki Ravi dominates due to price point, though it’s outdated and lacks features.

Growth Potential: Huge. A modern alternative with better payload, safety, and efficiency could disrupt this space.

b. 3-Ton and 5-Ton Trucks

Historically served by Hino and Isuzu, this segment is now underserved. With industrial logistics growing (e.g., e-commerce, FMCG, pharma), demand for efficient mid-size trucks is increasing.

Challenge: Lack of product innovation, dealer networks, and financing options.

c. Heavy-Duty Trucks (6–30 Ton)

Demand is largely project-driven: CPEC, highways, ports, and fuel tankers. Players like Isuzu and Foton have attempted to serve it, but limited financing and low aftersales coverage slow adoption.

Opportunity: Leasing-backed sales model and fleet programs could unlock growth.

d. Vans / MPVs

Used by schools, tour operators, and families (especially in northern areas), MPVs like Suzuki APV, Toyota Hiace, and Changan Karvaan have steady demand.

Growth Driver: Tourism resurgence, rural mobility needs.

e. Luxury & Intercity Buses

A niche yet highly profitable market. Mostly served by Yutong and Higer (through Master Motors), these buses are used in premium intercity services like Daewoo, Faisal Movers, Road Master, etc.

Missed Potential: No local bus manufacturing plant has captured the premium market fully.

4. The Vacuum: Why the Market Isn’t Thriving

Despite economic and logistical potential, the market lags. The key reasons include:

a. Lack of Strategic Focus by Local Players

Some major players, particularly those with strong history in truck/bus manufacturing (like Hinopak), have failed to innovate or adapt. They have also diverted resources to other segments or haven’t invested in R&D.

b. Shift to Passenger Vehicles

Local assemblers and investors have prioritized passenger cars, MPVs, or SUVs due to:

• Easier financing
• Consumer-driven demand
• Higher margins per unit
• Lower regulatory complexity

This has left the commercial sector in a state of under-service.

c. Poor Government Policy / High Duties

• High import duties on CKD and CBU units
• Lack of tax benefits for fleet modernization
• No scrappage policy for old commercial vehicles

These discourage investment in new commercial vehicle lines.

d. Financing Bottlenecks

• Most commercial vehicles are bought cash-down
• Financing options are rare outside Tier-1 cities
• No government-backed fleet-leasing programs

This reduces sales penetration, especially in heavy segments.

5. Benefits of Filling the Vacuum

If stakeholders take action, the payoff could be significant:

a. Economic Multiplier Effect

More commercial vehicles = faster goods movement = better supply chains. This fuels growth in:

• Agriculture
• Retail/FMCG
• Manufacturing
• E-commerce logistics

b. Employment Generation

Every new truck/bus supports 2–3 direct jobs (drivers, mechanics) and dozens indirectly (logistics companies, suppliers).

c. Export Opportunity

With right scale and focus, Pakistan could export commercial vehicles to:

• Afghanistan
• Central Asia
• East Africa
• Smaller Gulf states

d. Environmental Modernization

Upgrading to Euro-IV/V compliant fleets can drastically reduce emissions. Government support can make Pakistan a green transport leader in South Asia.

6. What Needs to Change?

To unlock the potential, key reforms and actions are needed:

Stakeholder	Required Action
Local OEMs	Invest in R&D, launch modern commercial models, create fleet-leasing programs
Government	Reduce duties, incentivize local assembly, offer commercial vehicle financing schemes
Banks & NBFCs	Launch tailored CV loan products, especially for SMEs and logistics startups
Investors	Reassess commercial sector profitability vs saturated car markets
International Partners	Encourage CKD partnerships with Chinese and Japanese commercial brands

The commercial vehicle sector in Pakistan stands at a critical juncture. While demand for logistics and mobility continues to rise, the supply side—especially for trucks, LCVs, and buses—remains underdeveloped due to poor planning, diverted corporate focus, and policy neglect.

This vacuum is not just a gap—it’s an opportunity waiting to be seized by forward-looking automakers, logistics firms, and policymakers. With the right alignment of vision and investment, Pakistan could transform its transport landscape and unlock billions in economic value.

This exclusive article has been written by @Aqeel Bashir, and published in Automark’s May-2025 printed/digital edition.

Mr. Ajlan bin Saad Al-Ajlan has officially opened the seventh edition of Automechanika Riyadh

Key topics to be discussed during the three-day sold-out event include tackling skills shortages and embracing digital change, establishing the Middle East as a global automotive hub, and the importance of a customer-centric approach

The event will welcome a record number of exhibitors, with more than 450 from over 30 countries with over 19,000 visitors expected

Riyadh, KSA: Automechanika Riyadh, Saudi Arabia’s leading regional trade show for the automotive aftermarket industry, has been officially inaugurated by Mr. Ajlan Saad Al-Ajlan, Vice Chairman of Board of Directors, Riyadh Chamber, with the event continuing until Wednesday, 30 April, at the Riyadh International Convention and Exhibition Centre (RICEC).

As part of the official opening ceremony and tour, by Mr. Ajlan Saad Al-Ajlan visited several of the 450 exhibitors, including Neweast, Al-Kadi Commerce & Industry LLC, Hexis Middle East, DJ Auto Parts Co. Ltd, and RedLine Car Services.  Automechanika Riyadh saw an increase of 32% on last year’s exhibitor numbers, which also includes a record number of Saudi businesses covering all aspects of the automotive aftermarket and underscoring the market growth within the country, with several new and returning exhibitors.

This year’s exhibition is set to break previous attendance records, with more than 19,000 visitors expected throughout the three days, resulting in an extended show floor which has seen the number of halls increase from three to five to keep pace with demand from exhibitors and visitors.

Following the official opening, Dr. Faisal Al-Kadi, Chief Executive Officer of Al-Kadi Commerce & Industry and Automechanika Riyadh Advisory Board member, shared expert insights on key industry developments within the automotive aftermarket in the region as part of his opening keynote speech.

Bilal Al Barmawi, CEO and Founder of 1^st Arabia, the licensee of Automechanika Riyadh directed by Messe Frankfurt Exhibition GmbH, said: “We are proud to officially open Automechanika Riyadh 2025, a platform that continues to drive transformation across Saudi Arabia’s automotive aftermarket. This year’s edition marks our most expansive and ambitious show yet, reflecting the Kingdom’s dynamic progress under Vision 2030.”

Aly Hefny, Show Manager, Automechanika Riyadh, Messe Frankfurt Middle East, said: “We’re excited to welcome a record number of visitors and exhibitors to this year’s Automechanika Riyadh, which promises to be our most international and dynamic edition yet. The strong growth in participation from global brands underscores the Kingdom’s rising influence in the automotive aftermarket. At the same time, the diversity of Saudi companies exhibiting highlights the strength of local innovation and industrial development. Together, they reflect the Kingdom’s evolving mobility landscape and our ongoing commitment to connecting markets and unlocking new opportunities.”

The Automechanika Riyadh Academy, which is held under the theme Localisation & Aftermarket Innovation on day one, featured a range of industry leaders, including Ulf Schulte, COO, EVIQ, who highlighted the rapid expansion of EV charging infrastructure in Saudi Arabia through strategic partnerships and the role of aftermarket solutions in enhancing the longevity and efficiency of charging networks.

Elsewhere, Mohammed Alsuhaim, Managing Director, National Automotive & Vehicles Academy (NAVA), outlined the critical role of training and development in shaping the future automotive workshop and showcased how NAVA is addressing the skills gap through hands-on, targeted training programs.

A panel discussion led by Emad Daghreri, Co-Founder & CEO, Autobia, and Alisdair Walton, Senior General Manager – Digital Transformation & IT, Abdul Latif Jameel Enterprises, focused on driving digital innovation and profitability for aftermarket distributors where they discussed implementing integrated e-commerce platforms and developing data-driven pricing strategies.

This year, Automechanika Riyadh will showcase case a range of product areas, including Parts & Components, Electronics & Systems, Tires & Batteries, Oils & Lubricants, Accessories & Customising, Diagnostics & Repairs, Body & Paint, and Car Wash & Care.

–ENDS-

About Automechanika Riyadh

Automechanika Riyadh, licensed by Messe Frankfurt GmbH, will take place from 28 April – 30 April 2025 at Riyadh International Convention and Exhibition Centre. This will be the 7th edition of Automechanika in Saudi Arabia, which is the leading exhibition dedicated to the automotive aftermarket industry in the Kingdom. The dedicated exhibition is one of 14 instalments of Automechanika – the most successful and largest automotive aftermarket exhibition brand in the world. 

For more information, please visit our website.

About 1st Arabia

1st Arabia Tradeshows & Conferences is a leading exhibition & conference organizer in the Kingdom of Saudi Arabia. Headquartered in Riyadh, 1st Arabia has regional offices in Jordan and is set to expand its operations in more countries regionally. 1st Arabia organizes top international trade exhibitions and conferences that provide unparalleled networking and business opportunities for companies looking to excel and grow within the Kingdom. Apart from conducting quality and high profile B2B trade fairs, country specific shows, corporate events, conferences, events management and festivals, 1st Arabia also provides a complete marketing tool and exhibition solutions to their valued clients. 1st Arabia is the only MICE organization in the Kingdom of Saudi Arabia who is a member of the International Organizations like IAEE, ICCA, MPI PCMA, SISO and, UFI.

Greetings, Dear Readers!

Nowadays, all OEMs (Chinese, Korean, Japanese, etc.) claim to have ADAS features. It is very important to have a thorough understanding of ADAS from all angles. The most important thing is to have an understanding of standard bodies who develop ADAS standards and keep them up-to-date.

My purpose in this article is to describe all standards governing bodies that are currently working on ADAS standards because the rapid pace of ADAS technologies and the accompanying technology testing creates a challenge for standards bodies and enforcement agencies. Some of the ADAS technologies installed in cars, trucks, and buses today were absolutely unthinkable even 10 years ago.

There is already an array of organizations around the world, each involved in various aspects of vehicle safety. And since ADAS (advanced driver assistance systems) are increasingly built into cars, trucks, and buses, these organizations have been steadily incorporating more and more ADAS-related standards and protocols. 

ADAS is meant to reduce human errors that lead to vehicle accidents, as i covered in my 1^st article of this series. ADAS operates both passively, i.e., alerting the driver of a potential collision, or actively, by braking and/or steering the vehicle. But whether an ADAS system simply warns the driver or takes control of the steering wheel and performs an automatic emergency brake maneuver, the goal is the same: to save lives. Please refer to my 1^st article published in Automark Nov’24 edition of this series for a comprehensive list of ADAS features.

These organizations are continually defining, refining, and mandating automotive testing and regulations across Europe, North America, and around the world.

Due to the dynamic nature of ADAS development, it’s a constant challenge for regulators to keep up. So, while over-regulation can sometimes constrain development, under-regulation might lead to compromised safety protocols, and no one wants that. The point of ADAS is to save lives by preventing accidents. The regulators are charged with making sure that any technology built into our cars only improves safety, and does not present a hazard itself.

Below are the major organizations involved in setting, maintaining, and in some cases, enforcing these standards.

1.SAE International

The Society of Automotive Engineersare used by 120,000 members all around the world, in the automotive and aerospace domains. SAE standards do not have legal authority, but they are often referenced and incorporated by the National Highway Traffic Safety Administration (NHTSA) in America, as well as Transport Canada. For example, SAE J3016, which defines the six levels of automation for cars, has been adopted by the NHTSA.

2.ISO 26262 ASIL – automotive safety integrity level

ISO is the International Organization for Standardization. ISO develops and publishes International Standards for a wide range of technologies, including automobiles. ISO 26262 defines a risk classification system, also known as an “ASIL” (Automotive Safety Integrity Level) for the functional safety of road vehicles.

ISO 26262 defines four levels, where A is the lowest level of risk, and D is the highest. Systems including airbags and anti-lock brakes get the highest level, since their proper function is so critical to safety, whereas less critical systems such as brake lights rate an A level.

ASIL levels are determined by three factors: severity, exposure, and controllability, and each one of these three has several classes. For example, severity is classified from S0 to S3:

S0: No injuries

S1: Light to moderate injuries

S2: Severe to life-threatening (survival probable) injuries

S3: Life-threatening (survival uncertain) to fatal injuries

3.NHTSA – National highway and traffic administration

NHTSA is a department within the US DOT (Department of Transpiration) They describe their mission as, “Save lives, prevent injuries, reduce vehicle-related crashes.” They manage and enforce automotive-related safety standards, including those developed internally as well as some external standards from SAE, for example. The NHTSA famously invented the crash test dummy in the 1960s. They license foreign and domestic manufacturers to sell their vehicles within the USA, and they have the power to block the import of vehicles that do not meet the Federal Motor Vehicle Safety Standards (FMVSS).

4.UNECE

Part of the United Nation  the UNECE is the United Nations Economic Commission for Europe. UNECE fosters economic harmonization among nations. In 2012 the UNECE’s World Forum for Harmonization of Vehicle Regulation established new regulations intended to improve passenger safety, including:

• Lane Departure Warning System (LDWS)

• Child Restraint Systems (CRS)
• Advanced Emergency Braking System (AEBS)

5. Transport Canada

Transport Canada is a federal agency that is responsible for transportation policies and programs in Canada. They manage defects and recalls, the importing of foreign-made vehicles, child car seats, and a wide range of safety standards for private and commercial vehicles. Canada has a set of safety standards similar to the USA’s FMVSS called the CMVSS (Canada Motor Vehicle Safety Standards).

Transport Canada performs extensive crash testing at their Motor Vehicle Test Centre in Quebec. They manage safety recalls for the Canadian market, and are involved in every aspect of road and vehicle safety.

6. EURO NCAP

EURO NCAP (The European New Car Assessment Program) has a five-star rating system that ranks the safety of vehicles, for the benefit of consumers and vehicle fleet managers. They derive these results by conducting tests on their own and accredited proving grounds.

Their rankings from 0 to 5 stars are defined on their website.

0-star safety: Meeting type-approval standards so can legally be sold but lacking critical modern safety technology.

1-star safety: Marginal crash protection and little in the way of crash avoidance technology.

2-star safety: Nominal crash protection but lacking crash avoidance technology

3-star safety: At least average occupant protection but not always equipped with the latest crash avoidance features.

4-star safety: Overall good performance in crash protection and all-round; additional crash avoidance technology may be present.

5-star safety: Overall excellent performance in crash protection and well equipped with comprehensive and robust crash avoidance technology.

6. JARI (Japan)

The Japan Automobile research Institute (JARI) is a foundation dedicated to automotive research and testing In 2003, JARI merged with the Japan Electric Vehicle Association (JEVA) and the Association of Electronic Technology for Automobile Traffic and Driving (AETATD).

7. CATARC (China)

The China Automotive Technology and Research Center (CATARC) is a scientific research institute. Established in 1985 to help China manage its automotive industry, it is now a part of SASAC (State-owned Assets Supervision and Administration Commission of the State Council).

Among other things, they are involved with C-NCAP, C-ECAP, and proving ground testing.

8. NTC (Australia)

The Australian government’s Department of Infrastructure, Transport, Regional Development, and Communications administers the Australian Design Rules (ADRs), which are national standards of vehicle safety. They are focused on driver protection, emissions, braking, and much more.

 Every automobile driven on Australian roads, regardless of where it was manufactured, must comply with the ADRs. The official policy of the Australian government is to bring their standards into harmonization with international regulations of the UN (see above), wherever possible.

Exclusive written for Automark Magazine, April 2025 printed edition. By Muhammad Usman Iqbal

I mean with profound feelings of certainty that if we could develop Small Enterprises (SE) for manufacturing classified & chosen export products to produce in special clusters of Zones is an practical approach to search and enter the Global market & find potential to EXPORT to them.

This way of coordinated efforts will not only enhance the EXPORT volume but will also be able to reach targeted ONE Billion US$ EXPORT within a given time.

I am confident about presenting this action plan in line with my vision for “One Zone One Product One Billion US$ Export.” This strategic initiative aims to not only revitalize our engineering exports but also position Small Enterprises Zone with one product, for example, ONE PRODUCT of Aluminium Die Casting as a global exporter in specialized engineering products.

“Unveiling Opportunities for Small Enterprises“

International Market Research to identify the buyer and product. To exhibit their products in Global exhibition  to visit and meet the buyers.

“The Import Value of the World Products”

Aluminum Die casting is shown as US 72 Billions in 2020 and forecast  2032 is US$ 144 billions

Toys is shown almost as 100 billions in 2023 and forecast 2028 is US$ 180 Billions

Shoes is shown as 390 Billions in 2023 and forecast 2028 is US$ 470 Billions

Examples:

1. Focus ONE PRODUCT  i.e Aluminum Die Casting :

Recognize the vast opportunities in Aluminum Die Casting and prioritize efforts to strategically focus on this product category for EXPORT.

2. Special EXPORT Policy for Zone Small Enterprises:

1. Provide zone Small Enterprises with special support of financing at 3%,
2. Participating in exhibition at 80% discount on international trade fairs at least 3 exhibitions in a year.
3. Incentive of EXPORT rebate of 5% on export sales amount.
4. One time import of machinery should be made available to enterprise free of all taxes and duties according to same policy of SEZ companies. 
5.  All SEZ companies in the region should be made liable to procure 10% of materials and sub components from Small Enterprises. This will amplify visibility on the domestic and global stage to find place in the market.
6.  Small Enterprises need support for technical standards and international certification to meet the requirement of buyers in EU & USA.

All these actions are the requirement demanding a specific EXPORT policy for Small Enterprises Zone to be declared and notified by the Government to achieve ONE BILLION US$ EXPORT target in certain time of 5 years

3. Cost Effectiveness:

Offer zone Small Enterprises special minimum electricity rates in line with Bangladesh & India or explore alternative cost-effective sources to ensure for making our products globally competitive. Solar and wind energy is the real options as minimum energy cost.

4. Zone Location at Karachi – PIDC Area:

Without pondering over the land requisition, at the beginning stage, I suggest to utilize the land of 5 Acres out of approximately 17 Acers available existing land of PIDC opposite SEZ near Steel Mill Area. AT & TC was previously situated in some portion of this land. This will serve as a model case for promotion and enhancement of export.

6. Land Allocation for Small Enterprises:

Allocate land within the zone to small enterprises, offering them a 10-year installment plan for 1200 Square yards at Rs 7.5 million. This will empower small enterprises to thrive and contribute significantly to my export goals.

7. Income & Sale Tax Incentives:

Grant zone enterprises a 2% income tax incentive for a minimum of 10 years, providing them with the financial stability needed for sustained growth.

 Zone enterprises will produce goods to export and has to procure local raw materials required for production. At this point zone enterprises pays 18% Sale Tax which will appear on weboc on export and Sale Tax is refundable. Refund is a problematic issue in FBR and time consuming activity. Enterprises immediately need refund of sale tax just after exporting Goods.  The Government is to devise a procedure for immediate refund of Sale tax.

8. Focus on Production and Export Orders: 

Encourage zone enterprises to prioritize production and meet export orders efficiently. Refer my Aluminum Die Casting market size of the world standing at US$ 72 Billion and I am confident to get Pakistan share at least one and a half percent from Aluminum Die Casting Products.

9. International Market Research:  

Continuous efforts in International Market Research for obtaining orders engaging regular productivity amongst the Small Enterprises. One Small Enterprises is to be established as a EXPORT HOUSE on behalf of ZONE Small Enterprises for market research to  obtain data collection and negotiation to finalize export order from foreign companies. These orders will be placed to Small Enterprises in the ZONE and the Marketing Small Enterprises will export the products from the Zone.

I believe that the successful implementation of these actions will play a pivotal role in realizing my vision of ONE ZONE ONE PRODUCT ONE BILLION US$ EXPORT.

Let us work together as a NATION with a firm belief, will, dedication and support of the government to bring a fundamental shift in the industrial policy only designed and exclusively for Zone Small Enterprises.  SMEs have been recognized as the backbone of industrialization. To achieve substantial growth by industrialization we have to establish, promote and support Zone Small Enterprises.

By Mashood Khan,  Director – Mehran Commercial Enterprises / Expert Auto Sector / Former Chairman PAAPAM

Published in Automark Magazine’s April-2025 printed edition.

Electric vehicles (EVs) are transforming the global automotive landscape, offering sustainable alternatives to traditional internal combustion engine vehicles. While financial incentives like tax breaks and reduced import duties have been pivotal in promoting EV adoption, non-financial incentives often subtle yet impactful play a crucial role in accelerating this transition. In Pakistan, integrating such incentives can significantly bolster EV acceptance and integration.

The Power of Non-Financial Incentives

Non-financial incentives, though not directly monetary, enhance the overall appeal and convenience of owning and operating EVs. These incentives can be instrumental in influencing consumer behavior and fostering a supportive environment for EV adoption. Key non-financial incentives include:

1. Dedicated Parking Spaces

Allocating exclusive parking spots for EVs in public areas, shopping centers, universities, and office complexes not only underscores the importance of sustainable transportation but also offers tangible convenience to EV users. Such measures have been effective in various regions, encouraging more drivers to consider EVs. Municipal authorities can designate EV-only parking spaces in urban centers and public facilities, enhancing the convenience for EV owners.

2. Toll Reductions or Exemptions

Implementing reduced toll fees or complete exemptions for EVs on highways and toll roads can serve as a significant incentive. This approach has been adopted in several countries to promote cleaner transportation options. Collaborating with highway authorities to offer reduced or waived toll fees for EVs can serve as a compelling incentive for long-distance travelers.

3. High-Occupancy Vehicle (HOV) Lane Access

Allowing EVs to use HOV lanes, regardless of the number of occupants, can significantly reduce commute times and serve as a strong incentive for potential buyers. This strategy has been successfully implemented in various regions to encourage EV adoption.

4. EV-Only Zones in Congested Urban Areas

Implementing EV-only zones in densely populated city centers can effectively reduce air pollution and noise levels. By restricting access to internal combustion engine vehicles, these zones encourage the use of cleaner transportation options, leading to improved public health and environmental benefits. Such initiatives have been successful in various global cities, resulting in decreased emissions and enhanced urban livability.

5. Enhanced Parking Incentives at Educational Institutes

Providing dedicated parking spaces and charging stations for EVs at Educational Institutes can encourage students and staff to transition to electric vehicles. This not only promotes sustainable transportation habits but also serves as an educational tool, showcasing the institution’s commitment to environmental stewardship. Universities that have implemented such incentives have observed increased EV adoption rates among their communities.

Mandating Electric Public Transportation

Transitioning public transportation fleets to electric power is a crucial step toward reducing urban pollution. The Punjab government’s recent initiative to introduce electric buses in Lahore exemplifies this approach. In January 2025, the Chief Minister inaugurated the first electric bus service in the city, highlighting the administration’s commitment to providing affordable, safe, and environmentally friendly transportation. The initiative includes free travel for students, senior citizens, and individuals with special needs, with other passengers charged a subsidized fare of Rs20. The Chief Minister emphasized that these electric buses are a significant step toward achieving a cleaner, greener Punjab.

Furthermore, the Punjab government has announced plans to deploy 400 electric buses in Lahore as part of a comprehensive strategy to combat smog and enhance eco-friendly transportation. This initiative aims to improve air quality and reduce pollution levels in the city.

Global Success Stories

Norway stands as a testament to the efficacy of non-financial incentives. The country has implemented measures such as free parking for EVs, access to bus lanes, and exemptions from tolls, leading to a remarkable increase in EV adoption. As of 2024, nearly 89% of new cars sold in Norway were fully electric, showcasing the impact of these incentives.

The Path Forward for Pakistan

Pakistan’s National Electric Vehicle Policy (NEVP) has laid the groundwork by offering various incentives to promote EV adoption. However, to further accelerate this transition, integrating non-financial incentives is essential.

While financial incentives are vital, the integration of non-financial incentives can substantially enhance the appeal of EVs in Pakistan. By adopting strategies such as dedicated parking, toll reductions, access to restricted zones, and the mandatory electrification of public transport, Pakistan can create a more supportive environment for EV adoption, steering towards a sustainable and eco-friendly transportation future.