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124 BRANDS ARE PRODUCING SAME 70CC DECADES OLD MODEL IN PAKISTAN

Pakistan’s Motorcycle assemblers have a total installed capacity of 4 million motorcycles per annum but the production for the last two fiscal years has remained low at 1.7 million bikes per year.

Relatively a small country with population of 200 million, the country has 124 bike assemblers including three Japanese giants. In Pakistan Two Japanese assemblers Yamaha and Suzuki are not producing 70CC Bikes, but all other approx 122 assemblers are producing same CD-70 cc bike with only brand name change, these 122 brands are Bionic, Racer, Laser, Safari, Aan, Royal Star, Mehran, Honda, BML, Blue Star, Grace, Crown, Star, Eagle, Hero, Ravi, Habib, Raftar, King Hero, Leader, Super Star, Metro, Hunza, Moon Star, Super Powr, New Asia, Osaka, Pak Star, Sohrab, Hi Speed, Royal, Rohi, Diamond, Union Star, Jinan, Guangta, Star Asia, Geo, Supreme, Toyo, United, Zxmco, Guru, Tez Raftar, Saszgar, Super Asia, Unique, SKM, Ghani, Qingqui, Aiwa, Sakai, Shaheen, City Super, Unipak, Asia Hero, Super Speed, Treet, Buraq, Pal Style, Sonica, Master, Road Prince, Excel, Hawk, Aerolite, Sky Wing, Captain, Rockey, Super Shahbaz, Champion, Stahlco, ST-70, Jan Power, Challenger, Crown, King Rider, Josh, Laser, Long Life, Pak Hero, Super Hero, DHL, Hi-Deluxe, Shahcar, Rebon, Eagle Star, Sutlej, Lucky, Vicky, Shine Star, Gold Star, Hi-Metto, Fara, Imperial, Pak Speed, NXG, Stalion, Classic, Express, Jaguar, Metro, Elite, Akai, Royal Metro,  DYL Dhoom, My Hondo and Power.

The government is reported to have given go ahead signal to around 20 assemblers in the last two years without realizing that existing assemblers have failed in rolling out bikes as per their plant capacity.

Surprisingly, the previous governments gave permission to many assemblers whose annual installed capacity was ranging between 1,200-8,000 units.  It means that parties associated with other kind of business had invested in bike assembling business without having any technical expertise. As a result most of them had either closed down or slowed down their production due to intense competition, lowering profit margins and heavy production losses, but experts of motorcycle industry and marketing are also fail in bike assembling due to corrupt system of taxation and TBS by the government of Pakistan.

Some assemblers are in a precarious position owing to which they are failing to pay the outstanding amount on received parts for production from their vendors.

Consumers have failed to get any benefit from the huge lot of assemblers as they have been producing more than three decades old 70cc models mainly and due to competition they are decreasing the quality of products.

Sources said the ministry of industries has compiled a data of number of bike assemblers in the country coupled with their products, installed capacity and their production during 2013-2014 and 2014-2015 to ascertain the actual situation. The Ministry is also searching as to how many units are now struggling for their survival.

Chairman Association of Pakistan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh said around 13 units in Karachi and Hyderabad have closed down or stopped production followed by same situation with around 26 units in Punjab, three in Khyber Pakhtunkhaw and two in Azad Jammu Kashmir.

He said there was no need to allow more bike assemblers as most of the existing Chinese assemblers are already facing stiff competition and only 10 units are enjoying relatively good sales as compared to their competitors.

He said closure of units or slow down in production have already led to massive unemployment in the sector. Many of the units are on the verge of collapse while others are heading towards the dead end.

Atlas Honda Limited (AHL) has the installed capacity of 750,000 units per annum and despite its higher price than Chinese bike, the company produced 639,506 units in 2013-2014 and 653,193 units in 2014-2015.

Anticipating a big bike market in coming years, AHL has decided to invest $100 million.

Assemblers are producing lower number of bikes as per their installed capacity. The second highest bike producer is Lahore based United Auto Industries of United Bikes whose yearly installed capacity is 288,000 units while it assembled 215,897 in 2013-2014 and 230,837 in 2014-2015.

N .J. Auto Industries (maker of Super Power bikes) produced 114,158 units in 2013-2014 as compared to 124,250 units in 2014-2015 as against its annual installed capacity of 205,000 units.

Memon Motors of Super Star bikes have the capacity to produce 126,500 units per annum but it assembled 75,181 units in 2013-2014 and 35,836 units in 2014-2015.

The maker of Road Prince Bikes Omega Industries of Lahore made 134,612 units in 2014-2015 as compared to 117,108 units in 2013-2014 while its installed capacity is 150,000 units per annum.

D.S. Motors Hyderabad, maker of Unique bike, produced 115,731 units in 2014-2015 as compared to 107,619 units in 2013-2014 as against its installed capacity of 157,000 units per year.

Plum Qingqi Motors has a installed capacity of 100,000 units but it only produced 26,141 bikes in 2013-2014 and 30,155 units in 2014-2015.

In order to revive the production of closed units, Sabir said the current government has to fix sale and production quota of every assembler keeping in view last five years production and sales. Otherwise the government must close approval of new units for assembling 70cc bikes.

If the government did not experiment the above, the industry would fail to produce quality two wheelers. Atlas Honda despite being its high price and producing same 70cc as Chinese are producing is enjoying good sales due to high quality.

The difference in valuation of the import of motorcycle parts between commercial importers and assemblers – valuation for assemblers is mostly higher – is leading to an increase in the  smuggling of motorcycle parts from China, industry officials said.

Customs department increased valuation on motorcycle items or parts for local assemblers, which commercial importers import from China on lower valuations. Thus, smuggling increased manifold with 124 assemblers out of which 80 assemblers are active  in the country now using smuggled parts in the motorcycle assembling industry.

Commercial importers are those who import motorcycle parts for approximately 20 million motorcycles that are plying on the country’s roads. On the other hand, motorcycle assemblers import parts from China and then use them in the assembling industry.

Industry officials say the increase in smuggling is denting the national exchequer, and can possibly reach up to Rs5 billion on an annual basis. With the rise in valuation for assemblers, industry officials estimate that the cost of a Chinese assembled motorcycled has risen by Rs3,000 to Rs6,000. This is why motorcycle assemblers are now shielding themselves by using smuggled parts in assembling.

Pakistan produces around 1.6 to 1.7 million motorcycles every year (since last 5 years) out of which 1 million units are assembled with Chinese technology. Branded Japanese motorcycle makers fill the remaining market share.

This exclusive article published in Monthly AutoMark Magazine’s December-2015 printed edition. Written by AM team

 

Al-Haj Faw Motors are expanding in Pakistan

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.

It has been noticed that FAW has recently started doing great in the Pakistani market. Automobile market of Pakistan is very complex and it is not easy for a new investor to compete against the current established players of the market. Along with local production done, the market is also filled with imported cars which further increase the competition.

Al-Haj 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.

The joint venture between FAW group, China and Al-Haj 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. It is safe to say that the car is better than Suzuki Cultus, Suzuki Wagon R and even Toyota Passo.

Receiving positive response Al-Haj FAW has finally decided to inject 600 million into their plant. The investment is focused for a new paint shop, extended warehouse facilities and modern assembly line. As per plan and government policy company keep on the way of localization of the parts and now they are ahead to bring CKD’s for the other vehicles which are now import CBU condition.

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.

3S dealership is where Al-Haj FAW management thinks that they are different from others and they can overcome that image in the public of being a Chinese firm. There core remains 3S dealership. In the beginning their sales suffered, but by sticking to their policy of 3S network, the results have started to bear fruits.

Although this particular automotive group faced a lot of difficulties by the government along with the current position of Pakistani automotive world, still the group has delivered progress and is consistent with it. Many out there think that the group is just producing V2 due to the intense publicity done but the group has heavy and light vehicles both in the menu. The group under light vehicles has FAW Carrier which is 1000cc with a standard grade price of PKR 724,000; the automaker has V2 which is a 1300cc vehicle with a price tag of PKR 1,050,000; then comes FAW XPV which is again a 1000cc vehicle with a price tag of PKR 875,000 and Sirius S80 1.5L and 1.3L with PKR 1,885,000 and PKR 1,705,000 respectively.

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.

The company started its operation here in Pakistan with 7 acres land and now is proud to have an operating land of 27 acres. While talking to the Marketing Manager, Farhan Hafiz, he informed that the automaker is planning to introduce new passenger models in the year 2019. The introduction of newer models can be a turning point in the automobile industry of Pakistan if measures are taken properly and quality is continued to be provided.

PAAPAM & CBI returned from AGRITECNICA 2015 with glorious export results

Results Give Confidence to Pakistani Participants

Hannover, Germany: AGRITECHNICA – The world’s largest trade fair for agricultural machinery and equipment ended with good prospects for the Pakistani manufacturers of tractor parts and agricultural machinery.

Thanks to CBI, the Dutch Government’s department forpreparing Pakistani Engineering Sector Companies for EU market entry with CBI’s Export Coaching Programmes
Ambitious entrepreneurs in Pakistan were prepared through CBI’s Export Coaching Programme(ECP) to
• Adapt their company and products to EU market requirements and standards;
• Become familiar with EU markets and business practice;
• Develop an export marketing strategy;
• Export to the EU market;
• Consolidate export position in the EU.

With good home work and preparation carried out under the guidance of CBI Experts, five Pakistani Companies exhibited their products at Agritechnica 2015. To help these companies with their export efforts and give on the spot guidance, CBI Experts Imtiaz Rastgar and Jan Oude Elferink were present at the CBI Stand. AMI Gears, GMS Forging (Pvt) Ltd., Landi Engine Work (Pvt) Ltd., Mehran Commercial Enterprises, Power Vision and Quality Vision
Innovations in agricultural machinery and equipment and the latest solutions and concepts for the future of plant production are presented every two years at AGRITECHNICA in Hanover, Germany.

TDAP STAND AT AGRITECHNICA 2015
The importance of this fair has been realised by Pakistani manufacturers of Agri tractor parts. Somehow the other opportunities which Agritechnica offers are still out of sight of Pakistani industry.
Most of the Pakistani participants at the TDAP Stand displayed focused product lines. Several were previous CBI ECP participants, while the effect of CBI training workshops could be observed on others.
SPEL displayed an expanded product line which has gone beyond Steering Wheels to modern looking steering columns. They have made a lose collaboration with a Czech hydraulic pump manufacturer, whose pumps are used to power steering systems.
Kortech was resent with Mr. Usman Malik, who was seen busy with his aftermarket customers from UK,Ireland and Europe.
MGA industries was present with there usual products.
Infinity Engineering, Mr. Razzaq Gohar was displaying parts for MF and CNH Agri tractors.
SB Gears displayed their line of gears for Agri Tractors.
Darsons was present with their rubber products.
AgriPak , Dr. Saqib). http://www.agripak.com.pk/showed posters of their line of backhoe, diggers, planters and a range of small tractors. This company is already exporting tractors and farm machinery and intend to display actual machines at the EIMA next year.
According the Senior Vice Chairman, PAAPAM Mr. Mashood Ali Khan who attended the exhibition as a CBI ECP participant, most of Pakistani exhibitors received good response and had leads from buyers across Europe , inspire of the fact that there were exhibitors from many other countries like China, India, Italy and Turkey displaying similar products.
This year Trade Development Authority of Pakistan (TDAP) had play it’s role well for the AGRITECHNICA from the stand booking till the end of event.
Pakistan Association of Automotive Parts & Accessories (PAAPAM) in cooperation with CBI, is providing in-house facilities for the technical training and skill development of the members companies with a reasonable cost at its Skill Development Centres at Karachi and Lahore. Exporting Skills are being imparted at PSDC for preparing Pakistani manufacturers for for export markets. During training participants are coached and mentored by Experts to make them stable exporters and lead their companies to export led growth.
Well trained experts are available for other coaching program, during whole year at above locations. Any PAAPAM member company can participate in the training and attend the workshops and other seminars organised by PSDC.
AGRITECHNICA is the innovations forum for the entire agricultural sector. The leading technologies and new developments shown make the exhibition a unique information platform helping to solve all problems encountered in farming and questions related to agricultural equipment and machinery.
Known as the melting pot where people, technology, and innovation come together Agritechnica spans seven days and is spread over 23 halls. Held in Hanover, Germany, this biennial event draws 2,800 exhibitors and more than 400,000 visitors from 88 countries.
One of the goals of this event is to take a futuristic look at innovations that have the potential to impact agricultural practices in the not-so-distant future.
In the Smart Farming exhibition area, attendees will have the opportunity to rate the ideas presented at Digital Cropping. Farmers are asked to give their opinion on whether a development is viable enough to prove itself in day-to-day farm work. Does it reduce the number of passes or operations? Does it make life easier? Does it save critical resources?
Fourteen exhibitors showcasing soil sensors, satellite signals, soil sampling, prognosis models, yield mapping, field mapping, application maps, yield potential maps, soil maps, drones and crop sensors will be critiqued by farmers.
AGRITECHNICA will be held again from 12 to 18 November 2017 and Senior Vice Chairman Mashood ALi Khan hope that during these two years the Private Sector SME companies will prepare themselves to Export Marketing Plan as well as training on Cultural Sensitiveness needed for export sales, Buyer Behavior, This regional Trade Fair for sub contracting and networking will prepare the group participants for their entry to European trade Fairs.
Senior Vice Chairman Mashood Ali Khan also invited European and Turkish Tractors OEMs to come and join our PAPS 2016, Pakistan have potential to invest and make your brands here.

Suzuki Cultus to be replaced with Suzuki Celerio in 2016

Pak-Suzuki has announced Suzuki Cultus 2016 is going to be replaced with Suzuki Celerio 2016.

Pak Suzuki has been in the market since long. It has enjoyed several successful glorious years of increasing sales trends. However, in recent times with the new trends in auto industry and usage of social media, consumers’ taste has changed as Suzuki since quite a while, has not been innovative in the Pakistani market.

It has been producing Suzuki Mehran in the market since 1980’s and has not introduced several changes in the model since its launch.  The sale of Mehran hence has now faced a declining sales trend.

Due to several new variants developed by the competitors catering to different target markets, the consumers now have a wide choice to choose from and it’s hard to say that Suzuki Mehran has hardly remained a choice for them.  If we consider each factor leading to consumer choices, we will find that for instance in the case of efficient fuel consumption we now have hybrid cars, and we now also have several options for economically budget constrained consumers.

Hence, in the current market scenario Suzuki having discontinued its Alto, no innovation in Mehran, the failure of Wagon R, is having quite a tough time.

To recapture what’s lost and get back in the action again Suzuki has decided to replace its Cultus with the all new Maruti Suzuki Celerio. So much to its excitement, the new Celerio would feature a 3-cylinder engine which is known to be K10B. This new engine is the K-Next series. It doesn’t have a clutch pedal and hence, would provide an ease in shifting gears without the effort of pushing on the pedal.

Speculators say Celerio would be a huge success and its sales would reach new heights. The designers of Suzuki have tried to develop the Celerio as a similar model to Suzuki Swift.

Maruti Suzuki Celerio would add to the large Suzuki automobile model as compared to its competitors and would provide a sense of innovative touch to the current portfolio so as to develop a perception of the corporate brand of Suzuki as keeping up with the changing trends among its target market.

Keeping in view the race for market share in 1000CC cars, the competition is also keeping up as Toyota  recently has also announced to assemble Vitz and Vios in Pakistan which would not only reduce the cost of these models but would also increase the buyers’ confidence as now there would be no need to import Vitz having no surety of how much its value is depreciated before being previously reconditioned, also not to mention the import duties levied on these cars because now they would have the opportunity to buy a brand new model from within Pakistan and that too at a cheaper price.

Likewise, Honda is also keeping up and is introducing the all new HR-V subcompact crossover.

Summing Up…

Hence the competition in the upcoming years 2016 will be much more intense as these big car manufacturing giants with vast economies of scale would fight over capturing the market with new offering but this too would benefit the target market as previously mentioned hence good news for the car folks especially those interested in buying a 1000CC car.

Guest post by http://www.pakwheels.com

DY200-3 Specs

 

Item Details
Size 2070*780*1230
Wheel base(mm) 1363
Net weight(kg) 155
Max load capacity(kg) 150
Front tire specifications 100/80-17
Rear tire specifications 130/70-17
Max. speed ≥95
Engine 200cc
Bore and stroke(mm) Φ66×57.8
The maximum net power and corresponding speed [kW/(r/min)] 10.5/7500
The maximum torque and corresponding speed [N.m/(r/min)] 15.5/5500

Dayun DY200-3 (3)

 

Meet The Yamaha Motobot: A Humanoid Robot That Will Learn To Ride Motorcycles Better Than Humans Can

Yamaha is delving into the world of autonomous vehicles in a way fitting of the unique company that it is: by building a robot capable of piloting a motorcycle better than a human can—but not just any human: nine-time MotoGP champion Valentino Rossi, who won this year’s championship on a Yamaha YZR-M1 and who some consider practically super-human.
In one of the most astounding announcements at this year’s Tokyo Motor Show that, nevertheless, was somehow overshadowed by other unveilings—including the Hyundai IDS Concept and even Yamaha’s own Sports Ride Concept—the Japanese maker of motorcycles and musical instruments revealed an “autonomous motorcycle-riding humanoid robot” called Motobot.
The blue, human-shaped machine has stationary arm- and leg-like appendages. It also has a head, and the entire robot is mounted atop the company’s flagship YZF-R1 motorcycle, looking very much like a professional MotoGP racer crouching low toward the handlebars to accelerate down a racetrack.
Yamaha’s goal with the Motobot project is to apply three decades of know-how creating assembly robots for industrial applications in a thinking machine of another sort.
Most robots in use today perform a single task with precision beyond what a human can do, such as joining together two heavy metal parts and creating a series of precise welds in a matter of seconds, for example, or torquing down 20 bolts at varying levels of tightness, all at once and with exacting precision.
Motobot, however, is far more complicated. It must be capable of performing innumerable fine adjustments to control the complex motions of a motorcycle—something humans can do relatively easily, but robots cannot.
The project is not an end unto itself, though. Yamaha plans to apply what it learns in building Motobot to improve its other lines of business, which include motorcycles, snowmobiles, ATVs, musical instruments, industrial robots, and more.
“We want to apply the fundamental technology and know-how gained in the process of this challenge to the creation of advanced rider safety and rider-support systems, and put them to use in our current businesses, as well as using them to pioneer new lines of business,” Yamaha said in a release announcing the Motobot.
So while other automakers are focusing their attention on making vehicles autonomous, Yamaha is looking instead to creating autonomous robots that can pilot a regular vehicle, such as a motorcycle, without modification. The potential for robotic chauffeurs comes to mind, but Yamaha did not make mention of such plans.
Motobot has six actuators for the steering, throttle, front brake, rear brake, clutch and gearshift pedal. Eventually, the goal is to employ high-precision GPS, various sensors and artificial intelligence—what Yamaha calls “machine learning”—to “enable Motobot to make its own decisions regarding the best lines to take around a racetrack and the limits of the motorcycle’s performance, so that it can improve its lap times with successive laps of the track,” the company said.
By the end of this year, Yamaha aims to have Motobot capable of cornering, running a slalom course, and riding in a straight line up to 62 miles per hour. By 2017, the goal is to have Motobot lap a racetrack at 124 miles per hour or higher and start to develop capabilities that exceed those of a human rider.
Yamaha anticipates that Motobot will be adaptable to other vehicles like snowmobiles and personal watercraft. By 2020, the company hopes to start incorporating technology and learnings from the Motobot project into consumer products.
“By using Motobot technologies to optimize control of vehicle dynamics, we will develop higher performing and safer forms of mobility,” the company said.
In total, Yamaha unveiled six world debuts at the Tokyo Motor Show, besides the Motobot. These include a sports car design study called the Sports Ride Concept, a three-wheeled motorcycle called the MWT-9, two electric motorcycles—including one called the PES2, with innovative two-wheel drive—an electric mountain bike, and a retro-styled motorcycle called the Resonator125.
The 2015 Tokyo Motor Show opened to the public October 30, following two press days, and runs through November 8.

DY125-20 Specs

Item Details
Size 1925*700*1120
Wheel base(mm) 1240
Net weight(kg) 105kg
Max load capacity(kg) /
Front tire specifications 2.50-17
Rear tire specifications  2.75-17
Max. speed ≥85
Acceleration noise[dB(A)]
Climbing ability(°)
Fuel Consumption(L/100km)
Engine 125cc
Bore and stroke(mm) φ52.4×57.9
The maximum net power and corresponding speed [kW/(r/min)]  6.0kW/7000r/min
The maximum torque and corresponding speed [N.m/(r/min)] 9.7n.m/5000r/min

Dayun DY200-3 (1)