Automark

• Dwindling demand had already seen Pakistan’s auto industry reeling under pressure in 2019.
• Partial lockdowns due to coronavirus have taken a toll, especially on local component makers.

Some of the world’s largest automotive markets have taken a massive beating since the coronavirus pandemic reared its ugly head around the world. Sales in China fell to record lows in February and March has seen production facilities in many countries in Europe and India being temporarily suspended. In the US, manufacturers like Ford and GM have turned to the prospect of making masks and ventilators. While the forecast for 2020 remains extremely gloomy for the automotive market at large, Pakistan’s auto sector could be at the receiving end of an even more painful blow.

There have been over 1,800 positive cases of coronavirus in Pakistan, according to the country’s media outlets. Several provinces have ordered lock downs but the country’s Prime Minister Imran Khan has so far steered clear of such a measure on a national scale. With an already shambolic economic condition, there is a suspicion that Imran is trying to avoid a further deterioration at the cost of human health and safety.

Even if there has been no national lockdown imposed thus far, the effects of the dreaded coronavirus is already being witnessed – especially in the country’s nascent automobile sector. Reports suggest new launches have already been pushed back – Yaris from Toyota being the biggest of these. Local component manufacturers have started feeling the pinch which may have already also had rippling effects on production lines.

Demand for newer vehicles is also dwindling. Sales had been falling since 2019 itself and production was temporarily halted by some companies back then. A forced suspension of operations due to a possible national lockdown, if it does take place, could well critically worsen the situation. According to Pakistan’s The News, 240,335 units of cars and Light Commercial Vehicles (LCVs) had been sold in the last fiscal year, down 7% from the fiscal year before that. This fall number has the potential of now entering double digits, many fear.

Pakistan’s auto industry is hardly alone in wading through troubled waters in current times. Its prevailing situation, however, appears more desperate than ever before and more than anywhere else.

• Datsun cars to be sold until stocks last
• Production facility stopped in January 2020
• Only 7,000 Datsun cars sold in Indonesia in 2019

Japanese car manufacturer Nissan had officially discontinued the Datsun brand in Indonesia. The company has stopped producing Datsun cars in the country earlier this year and will continue the sale of Datsun cars until the existing stocks are cleared with the dealers. Datsun, the entry-level brand from Nissan has failed to gain a positive response in the Indonesian market, which has eventually led to its demise in the country. Last year, the company sold only 7,000 units in the country.

The decision is reportedly a part of Nissan’s global restructuring program to retire low-selling nameplates and reduce capacity by 10 per cent, which has also resulted in 12,500 job losses across the globe. The company had two plants in Indonesia. The Karawang facility which built Nissan vehicles, stopped production in September 2019. The Purwakarta facility that manufactured the Datsun range was shut for operation in January this year.

Datsun’s product line-up in Indonesia included the GO, GO Plus and the GO Cross. Back in 2019 Nissan had also confirmed that the Datsun brand will be globally phased out by 2022.

Source: https://www.carwale.com

Indus Motor, Honda Atlas Cars (Pakistan) Limited, Pak Suzuki Motor Company, Hinopak, FAW Motors, Jwforland, KIA Motors, Hyundai Nishat Motors, Master Motors, JwForland, Dysin Automobile, Regal Automobile, United Bravo and Changhan Motors said on Monday that they have halted operations at their plants in Pakistan due to the spread of the new coronavirus. Announcements issued from the assemblers after recent decision to lockdown by the provinces.

Indus Motors has suspended operations at its plant in Karachi near Port Qasim as employees could not commute to the sites after the Sindh government instructed for complete lockdown and public transportation operators to suspend business.
Indus Motor Company also released a memo stating that they fully support the government’s efforts to stop the spread of CONVID 19. Hence, their production plants have been closed until further notice. They also said that the halt will lead to a delay in the delivery of new vehicles to the customers, for which they apologized.
Indus Motors just introduced Toyota’s new model of Yaris last week and the variants are ready for display and test drive at all dealerships across the country, which have also been delayed.

Honda Atlas Cars (Pakistan) Limited also has stopped operations at vehicle assembly facilities for all models of cars as well as two motorcycle plants until 6th April. Punjab government also announced for lockdown of the whole Punjab province for 2 weeks.
Leading passenger vehicle assembler Pak Suzuki, the market leader in Pakistan stopped output at their Port Qasim, Karachi plant.

FAW, first Chinese vehicle assembler of passenger car, light and heavy commercial vehicle also halt production of all vehicles at their facilities in Karachi.

Similarly Korean assemblers KIA shutdown their newly stablish plant at Port Qasim while Hyuandi Nishat stopped production of recently launch Hyuandi light commercial pickup Porter H-100. Japanese truck assembler in Pakistan Hinopak also halt it’s all truck assembling. Chinese assembler Jwforland, Regal Automobile, United Motors, Master Motors, Changan Motors and Dysin Automobile said it has halted its auto plant in the Pakistan for the safety of employees and will restart after official lockdown from government is over.

Likewise, all trye manufactures including Service Industries Limited, Panther Tyres Limited, General Tyre and other brands also shutdown their manufacture plants.
It is worth to mention here that all parts suppliers of the OEM’s also shutdown their parts manufacturing facilities across the country after announcements of lockdown and OEM shutdown intimation.

Japanese carmakers’ production in Central and South America has also been effected.
Nissan said it will suspend its vehicle manufacturing in Mexico from Wednesday to April 14, while Toyota will halt its plant in Brazil from Tuesday to April 3 and has stopped production at its factory in Argentina from Friday to March 31.

Mitsubishi Motors Corp., meanwhile, stopped operations at its factory on the northern Philippine island of Luzon from March 17 and will continue the measure until April 12th in line with the Philippine government’s measure restricting residents from going outdoors.
Toyota and other Japanese automakers have resumed operations in China, where the coronavirus epidemic started, but have been shutting operations at its factories in the United States and Europe in line with governments’ requests for residents to stay indoors to prevent the spread of the coronavirus.

The compact SUV comes with an air filtration system capable of preventing viruses such as Covid-19 from entering the cabin, claims the company.
To combat the coronavirus epidemic which has resulted in 95,000 infected patients and over 3,000 deaths globally till date, the Chinese automaker Geely Auto has unveiled its new compact SUV Icon which comes equipped with an air filtration system capable of preventing bacteria and viruses such as Covid-19 from entering the cabin, claims the company.

“In response to the new Coronavirus epidemic, Geely Auto developed in record time a new Intelligent Air Purification System (IAPS) that is N95 certified. This highly efficient air purification system works in tandem with the Icon’s air conditioner to isolate and eliminate harmful elements in the cabin air including bacteria and viruses,” said the company in a press release.

The Icon SUV was launched online on February 24 and reportedly has received 30,000 pre-orders before the official launch, as per the parent company of Volvo and Lotus brands.
Geely had pledged to spend $53m on combating the virus. The N95 standard has the ability to block at least 95% of very small (0.3 microns) particles. However, coronavirus particles often measure less than this, so its effectiveness still needs to be gauged.

The Icon SUV is based on a concept that the Chinese company showed at the 2018 Beijing Motor Show, and is offered in petrol and hybrid setups.

Due to the coronavirus outbreak, the launch of Toyota Yaris by Indus Motor Company (IMC) which was set to be 27^th March 2020 in Lahore is now rescheduled in Karachi at Indus assembly plant at Port Qasim on 24^th March 2020.

However, with the ongoing situation, Toyota Yaris launch plans may be postponed due to corona virus. A new date has not been announced yet.

According to Automark sources “No firm decision has been taken about the launch as the situation is changing daily.”  However, market sources say that the company might do a soft launch.

The company at the start of March did a line-off ceremony of Toyota Yaris in the Karachi plant at Port Qasim and the car was only displayed to the dealers.

Also Read : Indus Motor Company finally reveals the awaited model ‘Toyota Yaris’ in Pakistan

According to market sources, the corona outbreak has to have an adverse effect on the automotive market in Pakistan and vendors are facing a shortage of vehicle spare parts. Like most of the world, corona has hit Pakistan and the question is whether the industry is able to sustain these delays and shortages?

Toyota Yaris has been in replacement of the discontinued models namely XLI and GLI which were the most popular models of Toyota since their introduction back in 2000-2001 and they gave Toyota about 65% of their sales.

The features of the car are yet to be released. However, the car enthusiasts say that the length, width, and height of the car would be as 4425mm, 1730mm, 1475mm. Whereas the wheelbases would be 2250mm.

The engine of the car is in line 4 cylinders, 16-valve DOHC with it-i. The engine capacity is 1496cc. The highest power output is 6000rpm and the torque us 4200 rpm. The speed is 170km/h, fuel consumption 5.8/100 km and the tank capacity is 42 liters.

The price of Toyota Yaris is expected to be set around a bracket of 23-24 lacs.  The Yaris is a popular model that has been popular in many countries. It was first introduced in Thailand with the name Yaris Ativ.

The delay and the closing of plants have already left the industry at a loss. If the coronavirus lasts longer, the effects will be larger than one can imagine now.

Fiat Chrysler is temporarily closing four plants in Italy as the novel coronavirus takes its toll on the world’s eighth biggest economy.

The move follows a decision by the Italian government to impose sweeping restrictions on travel and public gatherings as it tries to contain the worst outbreak of the coronavirus, or Covid-19, outside China.

The Italian-American automaker said in a statement Wednesday that plants will be closed and production rates reduced “to support the nationwide campaign addressing the Covid-19 crisis.”

The closure of plants in Europe illustrates how the impact on the auto industry from coronavirus is going global. The pandemic has already resulted in extended factory closures and a steep drop in vehicle sales in China.

A spokesperson for Fiat Chrysler said the plants affected in Italy will be closed for the rest of the week to “minimize the risk” of contagion among employees. They are expected to reopen on March 16.

To limit contact among workers, the company said it will increase space between employees at their workstations. This will require a change to manufacturing processes and lead to lower daily production rates.

Other measures to contain the spread of the virus include enabling some employees to work from home and controlling numbers at company cafeterias.

Italy on Monday imposed widespread restrictions on travel and public life across the country, including closing schools, movie theaters, museums and gyms, and limiting opening hours for bars, restaurants and shops.

Economists say the measures are likely to push the country’s already fragile economy into a sharp downturn that will put Italian hotels, travel companies and restaurants under intense pressure.

Another threat to carmakers

Global automakers have been battling supply chain disruptions after a coronavirus lockdown in China idled parts suppliers and forced some carmakers to temporarily halt production in the country.

Volkswagen, the world’s largest carmaker, said Wednesday that almost all its locations in China are producing again. Nissan was able to restart three of its plants in China last month. But two others — one located near ground zero for the virus in Hubei province and the other in neighboring Henan — are only expected to reopen later this week.

A steep drop in demand in China has threatened to push the industry deeper into recession. Passenger vehicle sales in China, the world’s largest market for cars, fell 92% in the first half of February.

The emergence of a large number of coronavirus cases in Europe threatens another key sales and production hub for global carmakers.

Europe’s automotive industry is highly integrated, with supply chains that cross multiple countries. Germany is home to Volkswagen, as well as BMW and Daimler. Renault and Peugeot, which is merging with Fiat Chrysler, are based in France.

If France and Germany are forced to follow Italy in implementing sweeping restrictions to contain the spread of coronavirus, car manufacturers will be in for much more pain.

A spokesperson for Volkswagen said that its factories outside China are working “without any significant restrictions.” But the company, which owns Lamborghini, said it’s watching the situation in Italy “very closely.”

Source: This article was originally published on “news-daily.com“

Providing a glimpse of normalcy for an auto industry and world gripped by fear of the coronavirus, Honda Motor’s car assembly plant in Wuhan, China — the city at the epicenter of the global pandemic, partially resumed production Wednesday 11th March.

Honda has now put all of its production bases in China back to work. Honda initially aimed to restart production in the capital of Hubei province as early as Feb. 24, but was compelled to extend the suspension until Tuesday in accordance with the policy of the Chinese provincial government.

The assembly plant, which built 791,518 vehicles last year, shut down for the annual Chinese spring holiday Jan. 23. Scheduled to reopen Feb. 3, the plant was closed indefinitely when the Chinese government sealed off Hubei province to control the virus’ spread.

“This is important, good news,” Eric Noble of consultant The Carlab said. “Never underestimate the resiliency of the auto industry.”

Honda’s joint venture with local automaker Dongfeng Honda Automobile Co. Ltd. employs 12,000. Honda said parts of three four-wheel vehicle plants in the city restarted operations on Wednesday in what it called “small volumes.” The plants have a combined output of 600,000 units a year.

Meanwhile, Nissan Motor Co. plans to restart is plants in Xiangyang, also in Hubei province, and Zhengzhou in Henan province within this week. “We are preparing for the resumption while trying to ensure the safety of workers and closely monitoring supply chain conditions,” a Nissan official said.

Courtesy: Japantimes.co.jp

Chinese President Xi Jinping in his visit to Pakistan in June will be inaugurating Foton JW Auto Park (Pvt.) Ltd. which is the biggest private venture of electric car manufacturing in Pakistan, According to sources.

JW Auto Park are also going to sign a Memorandum of Understanding (MOU) with Morris garages for electric vehicles. MG was previously a British brand and has recently been taken over by Chinese Company.

About JW Auto Park
Their plant was launched in 2018 in November and they are the first Pakistani company which has a 50% partnership with a Chinese company which is Changsha Foton Vehicle Technology Co. Ltd. The initial investment was 150 million by both companies and the joint venture established an assembly plant after receiving Greenfield status.

The plant capacity, in its initial phase, is producing 30,000 units per annum, which is located over 50-acre land in Lahore. Light and medium commercial cargo and dump trucks, SUVs and minivans are included in the Phase-I product range that employs more than 500 people. According to the sources, both the companies are planning to expand the plant set up in Phase II & III with an investment of $300 million in the auto sector.

This joint venture is aiming to expand the plant capacity to 100,000 units per year with 100 acres of land to increase its product range in the future as well. The completion of Phase II & III will also result in increased employment of around 3500. The expansion of product range would later include assembling heavy trucks, buses, and various energy vehicles.

JW has been the silent leader in the Auto Industry and quiets the newsmaker. In its plans for the next 5 years, Foton JW Auto Park also aims to become the leading commercial vehicle manufacturer in Pakistan.

About MG Motor UK Limited (MG Motor)

MG Motor UK Limited (MG Motor) is a British automotive company headquartered in Longbridge, Birmingham, England,[2] and a subsidiary of SAIC Motor UK, which in turn is owned by the Shanghai-based Chinese state-owned automotive SAIC Motor. MG Motor designs, develops and markets cars sold under the MG marque. MG Motor is the largest importer of Chinese made cars into the United Kingdom. The marque returned to competitive motorsport in 2012, and won the 2014 British Touring Car Manufacturers Championship.

Indus Motor Company (IMC) held Toyota Yaris line-off ceremony in Karachi at their plant in Port Qasim. The car was displayed for the dealers whereas the official launch of the car will be done on 27th March 2020 in Lahore. The deliveries of the Toyota Yaris are expected to commence from April 2020.

The car has been in replacement of the discontinued models namely XLI and GLI which were the most popular models of Toyota since their introduction back in 2000-2001 and they gave Toyota about 65% of their sales.

The features of the car are yet to be released. However, the car enthusiasts say that the length, width, and height of the car would be as 4425mm, 1730mm, 1475mm. whereas the wheelbases would be 2250mm.

The engine of the car is in line 4 cylinders, 16-valve DOHC with it-i. The engine capacity is 1496cc. The highest power output is 6000rpm and the torque us 4200 rpm. The speed is 170km/h, fuel consumption 5.8/100 km and the tank capacity is 42 liters.

The price of Toyota Yaris is expected to be set around a bracket of 23-24 lacs.
The Yaris is a popular model that has been popular in many countries. It was first introduced in Thailand with the name Yaris Ativ.

With the official launch and a glance of the Yaris feature on 27th March 2020 in Lahore. We will finally be able to answer the questions that will this car be a good replacement for the popular models. Moreover, the customer’s reaction to the car will tell if this car will be able to help Indus Motor Company (IMC) hold the same market value it did with Xli and GLi.