August 2010 Automark Magazine

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Killing of MPA Syed RazaH aider of theMuttahidaQaumi Movement in Karachi lastweek halted the production in majority of theindustrial areasand all markets; shopping centersremained completely closed for about threedays.About 80-90 per cent workers could not reachto their industrial units as public transportremained completely off the roads while manypeople having their own transport also did nottake the risk. Even workers living in the vicinityof industrial estates stayed at home in view oflingering violence in the city. Even the shopslocated inside the residential areas were alsoclosed.The supply chain from the industrial areas towholesale markets and to retail markets frommain wholesale bazaars were paralyzed till theevening.According to Chamber of Commerce and otherassociations “The city has suffered Rs38 billionin these days in view of production losses,suspension in sales and exports, demurrage atports on imported goods, loss of perishable goods,daily wage earners, non-salary disbursement,transportation of goods, non plying of publictransport, sale losses to shop owners andgovernment revenues.While other side country we have worst floodin Pakistan's history, are a snapshot of ourfailures.More than 1,400 people are estimated to havedied in the disaster and, according to officialsources, at least 2.5million have been badlyaffected.The state response is weak and inadequatebecause our governance has deteriorated to thepoint of a crisis. The structure is weak and themotivation of the personnel is limited .The country is in crisis and people are sufferingacross the country, in which face we arecelebra ting our 63rd independence day?

Editorial

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The Magazine for Pakistan Automotive Sector

August 2010 Vol 3, Issue 8

Editor :

Sub Editor :

Contribution Writers :

Advisor :

Circulation Manager :

Designed By :

M. Hanif Memon

Dr. Raja Irfan Sabir

Mohammad Owais KhanSamiullah KhanShahzad TabishHunain ZafarEngr. M.K. Mateen

J. PereiraAbdul Majeed Sheikh

Abdul Khaliq

Mustafa Hanif

MONTHLY

63rd Independence Day?


The Monthly Magazine for Pakistan Automoti ve Sector

Your trust is our success

visit: www.automark.pk

CONTENTS

IMC, PAMA launch hectic and costly media campaign 9-10Exclusive Article on Automotive sector

Crop damage, loss of rural economy due to flood may 11 -12hit bike sales in 2010-2011Exclusive Article in Motorcycle sector

Hinopak Motors Limited - Export of Buses 13Corporate Event

BMW 5 Series Sedan arrives in Pakistan 15

An Exclusive interview with Mr. Nam Young-Koo 16CEO - Daewoo Pak Motors (Pvt) Ltd.

How to add value during quality audit 21Exclusive Article by Engr. M.K. Mateen

Why Carburetor Is Replaced By Efi 22by Hunain Zafar from NED University

Auto-makers oppose relaxing conditions for new entrants 28

Used car prices 33

Shell Eco Marathon Asia-2010 38-39-40Exclusive Report by Automark

Platinum Dealers Meeting 2010 41-42Ravi Automobile (Pvt) Limited.Corporate Event in Dubai

“Ayrton Senna” The Legend 44Exclusive article by Shahzad Tabish

Local assembled car price list 45

Shell Eco Marathon - Glimpses of Participants 46-47

Motorcycle price list 50-51


AUTOMARK | August-2010 09

As the budget 2010-2011 has passedpeacefully for the local car makers butthey still fear about any awkwardgovernment’s move regarding tariff cuton import of new cars, increase in agelimit of used cars from three to five yearsimported under personal baggage,transfer of residence and gift scheme orallowing commercial import of used carsup to three years by amending theimport policy.However, the above measures wereproposed by the Ministry of Industriesto the government after ascertainingthat the car markers continued to raiseprices on account of import of spareparts besides enjoying tariff concessionsand not utilizing their full capacity onthe pretext of less demand. Even theissues of premiums being charged onspot buying at authorized showroomswere still lingering on.These proposals were put in the ECCmeetings for approval but were deferredbut the car industry still smells a rat.The fear of industry can be gauged fromthe fact that a huge media campaign hasbeen launched for the last one monthin print media and is still going on aboutthe negative repercussions in case therules are relaxed for used cars importunder various schemes. The industryhas sought government’s support urgingthem to discourage the import of usedcars.One thing is surprising that in thesecostly media campaigns most of theadvertisements had come from theIndus Motor Company (IMC), makersof Toyota Corolla, while PakistanAutomotive Manufacturers Association(PAMA ), the onl y body of all theas se mbler s, has gi ven only twoadvertisements.

It seems that IMC is highlyalarmed especially on

localization of parts as ithappens to be the main

company besides some othercar makers for adopting dilly-dallying attitude in localizationof ten high tech parts in the last

three years.So far the government has notissued any statement over the

rate of import duty on eightcertain hi-tech imported parts.The new budget 2010-2011 has

also remained silent on thisissue but car makers believe that

these parts may continue toarrive at 32.5 per cent import

duty.

The government is of firm opinion thatlocalized parts and components costabout 40 per cent less as compared toimported parts and it can play a vitalrole in reduction in car prices. Despitethat the government has not taken anydecision besides any action against theassemblers for failing to localize parts.These parts are Alternator; Startermotor; Water pump; Fuel Pump; FuelFi lter, Air Cleaner Assembly; SeatRecliner; and Power Steering, Engineand Transmission.Auto Industry Development Plan (AIDP)was launched in December 2007 withvolu mes in r espect of Car/Lig htCommercial Vehicles (LCVs) projected.The AIDP projection for 2006-2007 was248,000 units followed by 276,000 in2007-2008, 349,000 in 2008-2009 and503,000 in 2009-2010 but ac tualproduction in 2006-2007 was achievedat 198,000 followed by 187,644 in 2007-2008, 101,000 in 2008-2009 and125,000 in 2009-2010.Based on above projected volumes itwas prescribed that by the years 2010-11 the auto manufacturers were requiredto localize certain parts as mentionedotherwise it would attract 50 percentcustom duty as compared to current32.5 per cent.The industry has informed the IndustryMinistry that localization of hi-tech partsis not poss ible and because of nocapac ity wi th the vendors and notechnology with the dome sticmanufacturers they have asked theministry to give up AIDP.The car industry thinks that localproduction of these assemblies requireshi gh capital cost and essentiallytechnology collaborations. Hence, highvolumes / consumption are necessary

One thing is surprising that in these costly media campaignsmost of the advertisements had come from the

Indus Motor Company (IMC), makers of Toyota Corolla,while Pakistan Automotive Manufacturers Association (PAMA),

the only body of all the assemblers,has given only two advertisements.

continued on next page

by: Samiullah Khan Exclusive Article

IMC, PAMA launch hectic and costly mediacampaign over looming fear of used car

imports, benefits of local industry



to consider for localization. Moreover,additional custom duty will increase thecost of vehicles which in turn decreasevolumes and reduce collection to theExchequer.Vendors had already strongly urged thegovernment to issue direction to the carmakers for increasing localization ofparts as has been done in tractors,rickshaws and two wheelers. They saidthat car assemblers are offering the localvendors 30-40 per cent of total landedcost if these are imported, in this waythe local vending industry is saving 60-70 per cent cost of the cars.Vendors believe that the governmenthas given every possible help to the carmakers for part localization besidesproviding tariff protection to localassemblers from Japan besides keepingpolicies of importing used cars undervarious schemes under a limited option.Thailand having less number of carsbeing locally produced against Pakistanhas more localized base of parts.Pakistan imports parts for localassembly for Thailand which includesfuel fil ter , al ternators , starters,components of engine and steering partsand others.After coming into force of trade relatedinvestment measures agreement ofWTO in 2000 Pakistan had soughtextension for continuing the protectiveregime of automobiles. CommerceMinistry under pressure from strong carmakers continued to seek extensions upto 2006. With no chance of furtherextension, the government provided carsmakers Tariff Based System (TBS) forfive years from 2007 to 2012 to barter

the continuation of localization of parts.Up till now only low tech parts had beenlocalized and the share in the price oflocal parts is less than 50 per cent. UnderTBS engine parts were to be localizedfrom 2008 and onwards. The local carindustry had managed deferring oflocalization of hi-tech parts during2009-2010 and gave undertaking to takethe localization of all parts deferredduring 2010-2011.Car makers are also resi sting thegovernment’s price control exercise onlocally produced cars calling it anti-freemarket economy meas ures whileresisting the free market economymeasures of intentions of governmentto allow import of used cars.Another vendor says that local partspurchase is based on 30 per cent of valueof imported parts which gives rise totransfer of pricing. He says he sells hisparts at 35 per cent of the landed valueof the similar imported parts. Onlytechnical audit can reveal these findings.Indus Motor Company, a joint ventureof Toyota Motor Corporation, ToyotaTsusho Corporation and House of Habibplans to expand and roll out the PhaseII of press shop in 2010-2011 for makingadditional body parts as part of its longterm strategy.The board of directors of Indus MotorCompany (IMC) has approved Rs 1.6bill ion investment plan involvingpurchase of latest technology includingstamping press machines and otherequipment to add to the existing pressesand ancillary equipment which thecompany acquired in 2008.IMC said that this investment will

further enhance transfer of technology,create more employment opportunitiesand fost er localizat ion of parts.IMC has termed the budget 2010-2011as balanced which will help maintainmacroeconomic environment for futureexpansion and growth of auto industry.On high quality parts made in PakistanIMC said it is modernizing Pakistan’sautomotive industry by transfer oftechnology through technical assistanceagreements and joint ventures withToyota Motor Corporation. IMC isincreasing Pakistan’s Technical capitalby investing Rs 3.3 billion in the lastthree years. IMC is supporting the localindustry through more than 62 autoparts manufacture (Tier I) units inaddi ti on to 20 0 othe r p artsmanufacturers (Tier 2) units supplyingto Tier 1 units in Pakistan. IMC isgene rating employment for over150 ,000 pe ople thr ough p ar tsmanufactures of local auto industry.On used car imports and trading PAMAterms it as a short term benefits followedby very little employment, no technologytransfer, susceptible to malpractices,limited after sales, no warranties, highmaintenance and spares cost, flight ofcapital, little government’s revenues,dependent on foreign source, no importsubstitution and no investment. Theseall support foreign auto industry.The local car industry has long termbenefits with over 150,000 employed inthe industry, technology transfer toOEMs, vendors, dealer s, fu l lydocumented transactions, full after salesand warranties, low maintenance andspares cost, foreign exchange saving,

Car makers are also resisting the government’s price control exercise on locallyproduced cars calling it anti-free market economy measures while resistingthe free market economy measures of intentions of government to allow

import of used cars.

continued on next no.39

Exclusive article on Automotive sector



The bike makers anticipate a possibledecline in bike sales in the next fewmonths over reports of serious damagean d devas tation to various cropsincluding cotton in Punjab and Sindhin the flash floods.They are alarmed over damage of ruraleconomy as “the share of rural buyingin total bike sales in the country is 60per cent.”They fear losing the most potentialbuyers of the two-wheelers from cropproducing areas who usually make bikepurchases ahead of sowing season andpay back the bike cost after harvesting.Floods are reported to have destroyedvarious cotton belts in Punjab and it isheading towards Sind h. KhyberPakhtoonKhaw had also faced massivedestruction due to floods.Floods have displaced millions ofgrowers, farmers and villagers in thesethree provinces besides causing hugecasualt ies of over 1,600 people.Bike makers say that market is abuzzwith report that cotton belts in Punjabare reported to have been damaged by40-60 per cent ahead of its maturationseason while similar fate is awaiting forcotton crop in Sindh.A leading Japanese bike maker, whoasked not to be named, said that reportsof some crops’ devastation and loss ofprecious human lives will seriously affectthe bike sales in coming months.He said water has entered in manyauthorized dealers’ shops in small townsan d villag es of the rural areas .The 60 per cent bike sales from the ruralareas comprise on crop income whilesalaried class and other business peoplein urban areas hold the 30-40 per centshare in total bike sales.The assembler said 60-65 per centcountry’s population lives in rural areas

which is enough to justify the sales ofbikes.He said keeping in view of 25-30 percent urban population living in manycities there will not be any big negativepressure on the motorcycle sales incoming months.The Japanese bike maker said his officemembers had gone to the flood affectedareas and other parts of the country toascertain damage over the dealershipnetwork and to make efforts to reviveit.According to a report of flood affecteddistricts, low floods had been seen inSukkur, Khairpur, Sargodha, Jhelum,Layyah and Bhakkar. Areas like Chitral,Mansehra, LoraLai, Sibbi, Kashmore,Jaffarabad, Naseerabad and Dera Bugti.Area which have witnessed high floodsare Swat, Shangla, Malkand, Charsadda,Peshawar, Mianwalli, Kalabagh, DeraIsmail Khan, Muzaffargarh, Dera Ghazi

Khan, Barkhan, Kohlu, Rajanpur, RahimYar Khan, Ghotki and Shikarpur.The Japanese bike maker said that it isup to the government how it takeseffective preventive measures to revivethe rural economy and save crops fromfurther devastation. The governmentsh ould al so ponder in providingcompensation to the crop losers in orderto encourage them for next year’s sowingseason.However, he said that water quantitymay prove beneficial for rice andsugarcane crops but water level shouldre mai n in the limit as per therequirement but crossing of water limitmay a ls o hi t these cash crops.Vice Chairman Association of PakistanMotorcycle Assemblers (APMA), a groupof Chinese bike makers, MohammadSabir Shaikh said rural buying holds amaj or share in overall bike sa lesespecially cotton production as growersmake heavy purchase after a good cropevery year. Growers of other crops likerice, gram, wheat, some pulses, sugarcane etc are also two wheeler buyers.Because of big share of rural buyingthanks to good crop of wheat, rice,cotton etc last year, the overall bike salesswelled to 1.3 million units in 2009-2010 as compared to 850,000 units in2008-2009.He said the first three months of thecurrent financial year may prove verypainful for the bike sales as a clearpicture will emerge over the losses tocrop and producing areas caused byheavy floods in three provinces.Sabir was also perturbed over thedeteriorating law and order situationespecially in Karachi, Hyderabad andother areas of Sindh. The closure of mainmarkets from 2nd Aug to 5th Augresulted in suspension in production in

Crop damage, loss of ruraleconomy due to flood mayhit bike sales in 2010-2011

Mohammad Sabir Shaikh said keeping in view of low salesoutput in the wake of flood situation, the government

should re-start $50 per bike R&D facility per bike to theassemblers.

Exclusive article on Motorcycle sector

by Mohammad Owais Khan

continued on next page



Hyderabad and at factories situated atthe outskirts of Karachi. He said saleshad remained suspended for four days.He said that recent rains in the countryhad also caused sharp decline in sales.In case the lawlessness prevails inKarachi it would hit the sales of Chinesebike makers especially who enjoy a bigmarket share in the urban areasespecially Karachi as compared to shareof Japanese bike makers.He urged the government to take serioussteps in providing protection to thepeople of Karachi besides saving thebusiness environment of the port citywhich provides sizable revenue to thenational kitty besides highest numberof employment.He said the price increase in the last oneyear had not affected the sales of bikesas a big demand of two wheelers hadarrived from rural areas from growersafter a good crop of wheat, cotton, rice,gram pulse etc.He said assemblers had passed on theimpact of one per cent increase in GSTto 17 from 16 per cent in the new budgetto the consumers while Chinese bikemakers had also followed the suit bypushing up the rate by Rs 500 to Rs1,000 per unit.Sabir Shaikh sa id that despite asatisfactory performance given byChinese bike makers in the last fewyears, the low cost bike makers havebeen facing various problems from thehurdles being created by the EngineeringDevelopment Board (EDB).He said that the EDB had again issuedletters to regarding p rovisi ona lassembling/manufacturing certificateand submission of input records withreconciliation of account for the year2009-2010.M e anwhi le , the Eng ine e r i ngDevelopment Board (EDB) has informed

the bike makers that it is in the processof updating the lists and its uploadingon PRAL’s On Line Quota DebitingSystem for the year 2010-2011. In thisregard, the EDB has already sent a letterof even number dated July 1, 2010wherein it was also requested to providethe list of components that are requiredto be added/deleted on which mayrequire any change in part numbers etc:verified during 2009-2010 and uploadedon the system.Accordingly, the list may be submittedas under 1) Highlight the part (s) of theverified lists of year 2009-2010 as perits serial number require to be deletedfrom the list or require change in partnumber etc. For this write it as “to bedeleted” or “part number changed” etcunder REMARKS column. 2) The partswhich require to be added in the lists, ifany, may be depicted after the last serialnumber of the list already verified andissued during 2009-2010, While addingthe part, write the word part to be added,give reasons for addition of parts alongwi th previous year’s procurementsources in the REMARKS column.Assemblers are also directed to fillColumn 8 of the enclosed proforma ofli st by providing the name of sub-assembly in which the relevant part isfitted. For example, in case of bearingof crankshaft bearings are fitted in thecrankshaft assembly, therefore therelevant sub-assembly/assembly forbearing as a part shall be “crankshaft.”EDB has requested the assemblers toprovide the lists with changes required

by highlighting the same along with theremarks as explained above.Mohammad Sabir Shaikh said keepingin view of low sales output in the wakeof flood situation, the governmentshould re-start $50 per bike Researchand Development (R&D) facility per biketo the assemblers. This facility had cometo an end from July 1, 2010.By getting the R&D facility, bike makerswould be able to shift the loca lproduction towards exports of twowheelers in the neighbouring countriesand other parts of the world.He said many bike makers afterreviewing the crop damage and ruralareas may have to slowdown theirproduction keeping in view of slow salesoutput in coming months.As the bike makers were getting thefacili ty of $50 per bike, they wereexporting 4,000-5,000 bike s toAfghanistan, Bangladesh, Sri Lanka andKenya per month.The manufacturers were already facinga stiff competition from the Indian andChinese bike makers and the $50 perbike subsidy had been providing an edgeof price over the rival exporters.The withdrawal of $50 per bike wouldgive an opportunity to China and Indiato capture markets of Afghanistan,Bangladesh and Sri Lanka in a big wayas the locally made bikes would becomeuncompetitive.Sabir expects at least 50 per cent declinein bike exports in the current fiscal year.Pakistan Automotive ManufacturersAssociation (PAMA) had already askedthe government in its pre-budgetproposals to continue the R&D facilityfor bike exporters and after Ministry ofCommerce’s decision the Associationwould again request the government forits continuation. Export of bikes wasinitiated in 2008……

Sabir Shaikh said that despite a satisfactory performance given by Chinese bike

makers in the last few years, the low cost bike makers have been facing variousproblems from the hurdles being created by the Engineering Development Board (EDB).

He said that the EDB had again issued letters to regarding provisional

assembling/manufacturing certificate and submission of input records withreconciliation of account for the year 2009-2010.

Exclusive article on Motorcycle sector


Recently Hinopak organized the exportceremony of the first batch of 25 unitsof Hino AK8J Buses to UAE. First batchof 25 units of Hino AK8J will be shippedin the present month to deliver to theEmirates Transport, UAE primarilyaimed at the staff and school transportsegments.Mr. Muhammad Irfan Shaikh, DirectorSales & Marketing, Hinopak welcomedall the distinguished guests. In hisaddress, he said that by successfullymeeting international standards inexport quality, Hinopak in collaborationwith its principals is continuouslystriving to tap other prospective marketssuch as Saudi Arabia, Qatar, Oman,Kuwait, Egypt, Bahrain, UAE, Jordanas well as many inquiries are in pipelinefrom Panama, Mozambique, Cost Ricaand Sub Sahara countries.He mentioned that Hinopak ha sinvested huge amount of money torenovate its body operation plant by

keeping in view the expected orders ofexport from different parts of the world.Mr. Akhtar Ali Jadoon, ProvincialTransport Minister for Sind was theGuest of Honor. He showed hi sgratefulness to Hinopak for achievingthis milestone for exporting Hino Busesto UAE. In his address he said that SindhGovernment is planning to operate 100diesel buses in Karachi City soon underthe Benazir transport Program. On thisoccasion he also announced to donate2 units of Coffin Carrier to one of theSocial Welfare organization. He furtheradded that soon 400 CNG bus projectwill also start.Syed Mohibullah Shah, Chief Executive,Trade Development Authority ofPakistan graced the ceremony as chiefguest. He appreciated Hinopak effortsand highlighted that for the past severalyears the economy of Pakistan has beenundergoing a slump, marred by bothinternational and domestic factors

directly affecting the trade sector verybadly. He further added that this exportsegment will not only bring honor andfame but will definitely strengthen theimage of Pakistan around the world andhelp the country in narrowing down thetrade imbalance.Mr. Hideya Iijima, Managing Director& CEO, Hinopak said that these busesare especially designed considering thegeographic, climatic and economicalconditions of the destined country. Healso informed that one of the keyfeatures of Hinopak buses is the optionof massive customization in all aspectsof the bus body from layouts, seatingarrangements to various color schemes.An exclusive presentation regardingExport project also made by Mr. AhmedRauf, DGM International and DefenseSales.The Export Ceremony was attended byvarious dignitaries including heads ofgovernment and financial sectors etc.....

TADAP Chief appreciates the role ofHinopak Motors Limited by Export of Buses

Syed Mohibullah Shah, Chief Executive, Trade Development Authorityof Pakistan, Mr. Akhtar Ali Jadoon, Provincial Transport Minister Sindh,

Mr. Hideya Iijima, Managing Director & CEO, Hinopak, Mr. T. Ito,DMD and Mr. M. Irfan Shaikh, Director Sales & Marketing ,

Hinopak Motors are seen inaugurating the Export Ceremony.

Mr. Hideya Iijima, Managing Director & CEO, Hinopak presenting

shield to Syed Mohibullah Shah, Chief Executive, TDAP on the occasion.Seen also in the picture are Mr. T. Ito, DMD and Mr. M. Irfan Shaikh,

Director Sales & Marketing, Hinopak


Corporate Events update


Federal Board of Revenue (FBR) is saidto be advocating refund of Rs 2 billionto local tractor manufacturers despitestrong resi stan ce by the FinanceMinistry, well informed sources toldnews media. In 1998, under the PrimeMinister's package for the reduction oftractor prices, import and local supplyof agricultural trac tors an d theircomponents was exempted from salestax.The local manufacturers of tractorsobtained tractor components from alarge number of local vendors, whowould have been burdened with the costof exemption under the sales tax law,therefore, the said exemption wasgr anted by wa y of re fund, videNotification No SRO 839(1)11998 dated23rd July, 1998. Thus the two recognisedtractor manufactures, namely, M/sMillat Tractors Limited and M/s Al-Ghazi Tractors Limited, paid sales taxto the vendors and then claimed refundthereof, from the sales tax department.The sources said this system remainedin place till budget 2005, when an effortwas made to bring the system in linewith VAT principles, under which refundis based on zero-rated supplies and noton exempt supplies. Accordingly, localsupply of tractors and their componentswas zero rated, vide Notification No SRO531 (1)/2005 dated 6th June, 2005 andthe Notification No SRO 839(1)/1998dated 23rd July, 1998 was rescinded,vide Notification No SRO 526(1)/2005dated 6th June, 2005.This in principle would have enabledlocal vendors to make zero ratedsupplies to tractor manufacturers andthen claim refund of their input tax,

from the sales tax department. The zero-rating measure, however, was agitatedagainst by tractor manufacturers as wellas the vendors, on the ground that thereare a large number of vendors operatingin the market and it would be difficultand cumbersome for them to obtain therefunds in time, hence their limitedcapital resources would get tied down.Accepting their demand, the (then)Central Board of Revenue (CBR), as aninterim measure, held operation of thenew system, in abeyance, throughadministrative inst ructions whichsatisfied tractor manufacturers and thevend ors, hence the arrangementcontinued indefinitely and a subsequentmeasure to fac il it ate the tractormanufacturers, regarding removal ofconditionality of 'agreed price', was alsoincorp orated in the r escinde dNotification No SRO 839(1)/1998 dated23rd July, 1998, as if it were still in thefield. This, however, created a legalsituation whereby the refund claims oftractor manufacturers could be blocked

because the notification governing theirrefunds was legally extinct.This ultimately has resulted in blockageof refunds, of the two recognised localmanufacturers, worth more than Rs 2billion, over the last few months. Inorder to resolve the matter, the FederalBoard of Revenue sought advice fromthe Law and Justice Division on theissue. The Law and Justice Division,vide U.O. note dated 13th April, 2010advised, that if the government wishesto give refunds to the tax payers, thennotifications conferring benefits can beissued so as to operate retrospectively,under authority of the Supreme Court'sJudgement, 1992 S CMR 1652 .The sources said, as there is no doubtthat the government's policy was toexempt agricultural tractors and theircomponents from sales tax; therefore,FBR has proposed that legal situationmay be rectified by issuing a newnotification restoring the arrangementunder Notification No SRO 839(I)/98dated 23rd July 1998, with effect fromthe date of its rescinding, ie, 6th June,2005.FBR has also recommended tha tremoval of the 'agreed price' conceptmay be appropriately incorporated inthe notification but to safe guardgovernment revenue, a clause may beincorporated in the notification, that therefunds in question will be allowed onlyif the incidence of tax has not beenpassed on to the consumers. There is apossibility that the zero rating measureput in place vide notification no. SRO531(1)12005 dated 6th June, 2005, mayalso be removed, through anothernotification…


The sources said, as there is no doubt that the government's policywas to exempt agricultural tractors and their components from salestax; therefore, FBR has proposed that legal situation may be rectified

by issuing a new notification restoring the arrangement underNotification No SRO 839(I)/98 dated 23rd July 1998, with effect from

the date of its rescinding, ie, 6th June, 2005.

Automotive Sector - update

FBR advocating Rs two billion refund

Local tractor makers



The world’s most successful premiumauto mo t ive manuf acture r hasannounced that the New BMW 5 Serieswill arrive in Pakistan at the end of July2010. The launch of the sixth generationmodel marks the epitome of aestheticdesign and supreme driving pleasure inthe midran ge premium segment.With its sporting and elegant design,excellent comfort an d the higheststandard in efficiency in its class, BMW’slat est execut ive sedan sets thebenchmark in driving dynamics.Commenting on the imminent launch,Atif Jan, Marketing Head, DewanMotors Private Limited, the exclusiveimporter of BMW in Pakistan, said “The5 Series is a core product and one ofBMW's best selling models globally andin Pakistan as well, so we are lookingforward to launching this new model inlate July. It is a totally different car from

its predecessor in terms of design,comfort, technology and engineering.The car come s with ne w highperformance engines and a host of newdriver assistant features such as ParkingAssistant that measures parking gapsand steers the 5 Series while the drivercontinues to operate the brake andaccelerator pedals.” "This is only one of a host of innovativefeatures available in the New BMW 5Series. The new model is imaginative,creative and effective. BMW designersand engineers have worked hand-in-hand to ensure the perfect interplay ofdesign and technology. It's the perfectcombination of sportiness, elegance andcharisma. All this has been combinedin complete harmony," added Mr. Jan.The new BMW 5 Series sedan will beavailable in both petrol and diesele ngin es o f fe r ing o utstanding

performance. The model is a class leaderin emissions reduction. It has beendesigned around BMW's successfulEfficient Dynamics st rategy tha tencompasse s man y technologyinnovations to offer outstan dingperformance and a reduction in fuelconsumption.The interior of the new BMW 5 Serieshas a stylish and modern design withexciting lines that create a generous andharmonious ambience. High qualitymaterials and superior craftsmanshipund erline the premium interiorambience.The new BMW 5 Series Sedan will clearlystand out from the crowd, convincinglydemonstrating its ability to offer SheerDriving Pleasure typical of the BMWbrand....

Dewan Motors announcesplans to launch the

New BMW 5 Series in PakistanThe ideal blend of sportiness and elegance

A Bespoke Suit for every occasion

The man ufactures of BMW carslaunched the new 5 series Sedan at theirdisplay centre, visited by people withinterest in such prestigious cars.The manufactures of the new model sayit is the epitome of design and supremedriving pleasure in the upper midrangesegment wi th its elegant design,excellent comfort and highest standardof efficiency in its class.

The sixth generation of this immenselysuccessful executive sedan is expectedto cont inue the su ccess-st or y.They said the new series has the longestwheel-base in the segment, long andsleek engine compartment and gracefulroofline.Some of the wide ranging sophisticateddriving and comfort features offered inthe new BMW 5 Series include Dynamic

Drive Control with three modes:comfort, normal and sport, Head UpDisplay, Multi-Channel Audio System,Rear Seal Entertainment, and Four-Zone Automatic Air Conditioning.The new BMW 5 Series design isimaginative, creative and effective, withBMW's designers and engineers workinghand-in-hand to ensure the perfectcombination of design and technology.

BMW 5 Series Sedan arrives in Pakistan

Automotive sector - New arrival



The auto industry which has gonethrough difficult times for almost threeyears of depression is now well poisedto regain its past glory with the positivesign of demand growth during currentfinancial year 2010. its is heartening tosee that as key positive indictor forbroader macro recovery, the l ightcommercial vehicles (LCVs) have alsostarted to regain momentum with 130percent YoY growth strong responsibilityof exporting passenger buses to SaudiArabia and Emirates has injected tocolor of life especially light commercialvehicle segments of auto industry. Theemerging trend of export is sure toprovide a strong support to the overalleconomic growth as well as broadeningthe engineering bases in the country,which is the key for sustai nableeconomic growth for any developingeconomy.Daewoo Buses carrying internationalKorean brand with the label of made inPakistan are al ready enjoying arespectable place in the transportationsector from Karachi to Kashmir on theback of their quality, durability, andcomforts.Nam, Young-Koo , the chief executiveof Daewoo Pak Motors said in anexclusive interview that Daewoo PakMotors had now started producing awide range of Daewoo Class businessincluding luxury buses for inter-city andCNG buses for urban operation undera joint venture arrangement with AfzalMotors for domestic and export marketin Pakistan.Mr. Y.K Nam, CEO of Daewoo PakMotors underlined the differentiatingfeatures of Daewoo Products EspeciallyBH11 6, The first & onl y local ly

man uf acture d Rear Engi ne AirSuspension Bus with 340 HP, BH115,Rear Engine with 310 HP, BF120 FrontEngine with 240 HP and BH115 CNG,the onl y Internationally cert ifieddedicated CNG Rear Engine Bus inPakistan with 240 HP.Nam said that at present productioncapacity of Daewoo Pak is 1500 busesfor a wide range of customers. Massproduction of Daewoo Buses has nowstarted after injecting new capitalinvestment besides introducing newtechnology in shape of machinery,equipment s and skil l of hu manresources.

When asked weather Daewoo Motors isoperating neighboring India being largerconsumer market, Nam come out withan encouraging answer that before goingfor investment Daewoo Surveyed theregion and dedicated chose Pakistan asdestination for investment prior toarrival in Pakistan we heard a lot aboutsecurit y risks and law and ordersituation in Pakistan however thesituation on the ground was quitedifferent from what it being perceived.In fact, Pakistan is an attractive placefor doing business; Nam said and addedthat he would ask his fellow investorsin Korea for investment in Pakistan.Due to its strategic location the exportof Korean buses carries and edge forsaving freight charges from Korea.He said that Daewoo Buses beingproduced in Pakistan are equipped withEURO II Diesel & CNG Engine....

An Exclusive interview withMr. Nam Young-Koo

CEO Daewoo Pak Motors (Pvt.) LtdDaewoo Pak Motors had now started producing a wide range

of Daewoo Class business including luxury buses for inter-city

and CNG buses for urban operation under a joint venturearrangement with Afzal Motors for domestic

and export market in Pakistan.

Automotive Sector - Interview


We hear so much about the importanceof “adding value” during quali tymanagement systems (QMS) audits, butwhat does this really mean? Is it possibleto add value without compromising theintegrity of the audit or providingconsultancy? In principle, all auditsshould add value, but this is not alwaysthe case.There are several dictionary definitionsof “value”, but all focus on the conceptof something being useful. “Addingval ue” therefore mean s to makesomething more useful.Some organizations have used ISO 9000series of standards to develop qualitymanagement systems that are integratedinto the way they do business, and areuseful in helping them to achieve theirstrategic business objectives – in otherwords they ad d value for theorgan iza tion. C onve rsely , otherorganizations may have simply createda bureaucratic set of procedures andrecords that do not reflect the reality ofthe way the organization actually works,and simply add costs, without beinguseful. In other words, they do not “addvalue”.In order to “add value”, a third-partyaudit should be useful to the certifiedorganization1) By providing information to topma na ge m e nt r e ga r d in g th eorganization’s ability to meet strategicobjectives.2) By identifying problems which, ifresolved, will enhance the organization’sperformance,3) By identify ing imp rove mentopportunities and possible areas of risk,4) To the organization’s customers byenhancing the organization’s ability toprovide conforming product,5) To the cert ifica tion body, byimproving the credibility of the thirdparty certification process.The approach to “adding value” is likelyto be a function of the level of maturity

of the organization’s quality culture andthe maturity of its QMS, with respect tothe r equirement s of ISO 9001.Some tips for the auditor on how to addvalue1) Unde r stand the audite e ’ sexpe ct ations/cor porate culture .2) Any specific concerns to be addressed(output fr om pr evious audits)?3) Risk analysis of industry sector /specific to organization.

4) Pre-evaluation ofstatutory/regulatoryrequirements.5) Appropriate auditteam selection toa c h i e ve a u d i tobjectives.6) Adequate timeallocationFocus more on the process, and less onprocedures.7) Focus more on results and less onrecords.8) R e me mbe r the 8 Q ual ityManagement Principles.9) Use the “Plan-Do-Check-Act”approach to evaluate the organization’sprocess effectiveness.10) Has the process been planned?11) Is it being carried out according toplan?12) Are the planned results beingachieved?13) Are opportunities for improvementbeing identified and implemented?14) Adopt a “holistic” approach toevidence gathering throughout the audit,instead of focusing on individual clausesof ISO 9001.15) Put the findings into perspective(Risk assessment / “common sense”).Relate findings to the effect on theorganization’s abili ty to provideconforming product.16) Sensible reporting of audit findings.17) Ensure that any cultural aspects aretaken into consideration.18) Emphasize positive findings asappropriate.19) Reports should be objective andfocused on the right “audience”. (Topman ag ement wil l probab ly ha veexpectations that are different fromt ho s e o f th e ma n ag e m e n trepresentative).• R e f e r e n c e : I S O & I AFISO9001AuditingPracticesGroup ...

How to add valueduring quality audit


Exclusive Article by Engr. Mian Khurram Mateen

In order to “add value”, a third-party auditshould be useful to the certified organization

Engr M.K. Mateen

Assistant Director, TSC-PSQCA


What would fuel injection be without acomputer controlling all its functions?Less powerful? Sure. Less efficient?Certainly. A heck of a lot more popular?We think so. We'd venture to say thatmost gear heads, ourselves included, arenaturally wary of trusting a mysterious"black box" to control fuel and sparkinside a several thousand worth ofengine. Carburetors and distributors atleast look the part. You can't blip thethrottle and check the pump shot in EFI.There are no jets or metering rods toplay with. Heck, most ECU’s aren't evenmounted in the engine compartment.However, the functionality says it all.

How Carburetor Works:A carburetor takes advantage of theventuri effect to meter a certain fixedratio of fuel and air into the engine. Asharp "step" in each throttle boreaccelerates the incoming air stream,increasing its velocity and creating aregion of lower pressure under the fuelbooster. The si ze of the main jetscontrols the amount of fuel that's drawnout of the discharge nozzles. Then it'sdrawn into the cylinders, compressed,and fired.Now we've got the most bare-bones ofcarburetors that mix a certain amountof fuel for a certain amount of air weallow to pass through the Venturi, givingus a constant air/fuel ratio. If we changethe main jets, the mixture will becomericher or leaner--but it'll stay richer orleaner across the entire rpm range. If

you need to vary the air/fuel ratio foreconomical cruising (leaner) or richenit for maximum power at wide-openthrottle, this system won't do anythingfor you. Hence, change of pla ns.

How EFI Works:A modern multi port EFI system worksdifferently than a carburetor. No venturihere--fuel isn’t introduced into theengine until the injectors spray it intothe base of the intake runners, so theonly thing that’s mechanically meteredis the air that’s sucked through thethrottle body. Since the mixture of airand fuel can’t tumble around inside theintake runners, the injectors spray a finemist of fuel at high pressure, which"forces" it to mix almost instantly withthe metered air. Changing the air/fuelratio is simply accomplished by varyingthe amount of time that the injectorsare spraying fuel (usually measured inpulse-width, the number of millisecondseach injector is turned on).

Main Metering Circuit:A carburetor’s main metering circuitoperates solely on the venturi principle,which by it would fit our needs perfectlyif a car ran only at a constant load andrpm, such as up a slight hill in First gear.But in the real world, engine loadchanges, and selecting the proper mainjet size is only the first step in creatinga well-tuned street machine. Carburetorskeep the engine properly fueled over arange of conditions by sensing vacuum(engine load) and kicking in additionalfuel via its enrichment circuits. ModernEFI systems use "maps"--a table ofnumbers corresponding to certainparameters (i.e., rpm) saved in theonboard computer to tell the injectorshow much fuel is needed at anyconceivable operating point. The basefuel map tells the injectors how muchfuel to spray at a certain rpm for a givenengine load. This isn’t a direct analogyto a carburetor’s main metering circuitbecause it recognizes that an engineunder heavy load needs more fuel(enrichment) than a lightly loadedengine, so it’s already a little smarterthan our "bare-bones" carburetor.Most EFI systems enable you to type in

the air/fuel required across the usablerpm and load range of the engine. Moresophisticated EFI systems use feedbackfrom a wide-band oxygen sens or(WBO2), instal led at the headercollector, to monitor and display theactual air/fuel ratio. The actual versusmapped air/fuel ratio is displayed as apercent correction. If a standard narrow-ban d oxygen sensor is used, thecomputer can only display air/fuel ratiosin a narrow range, so tuning is slightlymore difficult. Either way, the benefitof any O2 feedback signal (closed loop)is a huge advantage in tuning andperformance.

Choke:As you might have guessed, there’s nochoke butterfly attached to a multi-portEFI throttle body--it’s all done withelectronics. Tweaking the "CrankingFuel" graph changes how long theinjectors stay open, and consequently,how much fuel the engine is fed.

Conclusion:The bottom line is that EFI systems andcarburetors all need to do the samethings to make an engine run, and onceyou get past the fear of that little blackbox, it’s apparent that EFI provides alevel of versatility and ease of tuningthat even the best carburetors can’ttouch....


WHY CARBURETOR ISREPLACED BY EFI

By: Hunain ZafarAutomotive Article

By: Hunain Zafar

Secretary PublicationsASME,

NED University Student Section



Posted by: David Welch on July15, 2010Here’s a matchup I thought I’d neversee: Toyota and Tesla Motors. Toyota isa conservative money maker that likesto develop technology in-house. It hasquite a nice hybrid program that thecompany developed while maki ngbillions selling cars and trucks. TheJapanese giant shuns controversy. Yetthe company is teaming up with tinyTesla, a company that has lost $246million on $148 million in revenue since2007. Tesla Chairman and CEO ElonMusk is very un-Toy ota , findingcontroversy like a moth to a light bulb.In the past, he has been in litigation witha former Tesla CEO, a past design firmhe hired and has a rather public divorcegoing on. So what does Toyota see inTesla?Toyota’s brain trust thinks that maybe,just maybe, Tesla mig ht be ontosomething. Tesla’s lithium ion batterypack strings together 6,831 cylindricalcells that are typically used for laptops.Major carmakers like General Motorsand Nissan use prismatic cells, whichare usually flat, resembling a thicknotebook. They are larger than Tesla’scells, therefore the battery pack doesn’tneed as many of them. There are fewerconnectors and less chance of abreakdown, says Jim Hall, principal ofconsulting firm 2953 Analytics. Tesla’sadvantage is that there is an entirecomputer industry out there using thosesmall cells, so the capital costs are lower.If Tesla’s battery is durable in the longrun, it could be an option for carmakers.So Toyota wants to get Tesla’s batteryand electric drive technology, hook it upin to a couple of Rav4 SUVs and put itthrough some rigorous testing. Thesports car buffs who drive Tesl aroadsters may give the car a thrashingon the highway, but not many people

drive a $109,000 two-seater in badweather or every day. Toyota wants totest the battery pack out and see howdurable it is and how simple it would beto produce, Chairman Akio Toyoda toldreporters in a round table session lastweek. “Tesla’s battery should fail, but itdoesn’t,” Hall says. “Toyota wants tounderstand why it hasn’t failed.” Despiteits troubles, Toyota has $43.3 billion incas h. Cons ider its $50 mill ioninvestment in Tesla as a venture capitalinvestment. Many of those don’t panout.

Reader CommentsAviva SucherJuly 15, 2010 6:31 PMToyota's decision to pair up with Teslais a brilliant move. Tesla's Elon Musk isbrilliant in his seeking a technologicalapproach to alternative battery poweredvehicles. Initial tests by Tesla ownersand race car drivers have drawn ravereviews.Mr. Toyoda and the Toyota boardmembers recognize pure incomparableinnovative brilliance.I excitedly await an affordable Tesla,hopefully just in time for us to pass alongour current Prius

EobJuly 16, 2010 6:52 PMToyota already had an electric Rav-4years ago...What do they need Tesla for?

This is just more politics. Didn't Teslarecieve 400,000,000 from the Feds

GmanJuly 17, 2010 12:34 AMTesla must have done something rightabout Roadstar 300 miles on a fullchar ge. 2 1s t centur y cal ls f orcollaboration between new and oldeconomy. It is a perfect marriage. Aftera year of bad publicity for Toyota, Teslaalliance is a rumbling Toyota needs.After all, if it is difficult to shake thingsup the old way, may be Silicon Valleyattitude is what is needed to give a kickin the buttock to get 300 mpc (charge)from the battery.

SciotopikerJuly 17, 2010 7:24 AMTrust me friend, Toyota knowseverything they need to know aboutTesla.They have undeniable proof of thestupidity of American consumers andinvestors. Toyota's "interest" in Tesla isthe driver behind Tesla stock prices andwhen they pull it.....pffffft.....no moreTesla. Toyota then becomes the greengi ant again and all kneel in theirpresence. Problem solved.

EdJuly 20, 2010 1:36 AMTesla is exactly the type of companiesAmerica needs to lead us out of therecession. American ingenuity at its best.

InterconnectJuly 20, 2010 6:46 AMAkio Toyoda San Toyota critic seepositive development when you co-habitTelsa's battery electric drive technology.We see lot of Toyota in commonly un-Toyota belief. Billions are invested todayin many emerging market turningmillions of Toyota Corolla cars for poorfolks running on conventional Euro 1 or2 technology investing their liftimesav ings on Toyota' s pr omis e. .. .

What Toyota Sees in TeslaSo Toyota wants to get Tesla’s battery and electric drive technology,

hook it up in to a couple of Rav4 SUVs and put it through somerigorous testing. The sports car buffs who drive Tesla roadsters

may give the car a thrashing on the highway, but not many peopledrive a $109,000 two-seater in bad weather or every day

Automotive sector - update



Pakistan State Oil (PSO), the country'slargest oil marketing company hasdelivered strong results for the financialyear 2010 (FY10) by achieving after taxearnings of Rs. 9.05 billion as comparedto a loss after tax of Rs. 6.7 billion duringthe financial year 2009.The company registered an earning pershare of Rs 52.76 in the period underreview against per share loss of Rs 39.05in the corresponding period in FY09.The announcement followed a Board ofManagement (BoM) review of thecompany's performance in a meetingheld on Friday at PSO House. The Boardmeeting was chaired by Nazim F Haji.The board of director s of PSOrecommended a final cash dividend forthe financial year ended June 30, 2010at Rs 5.00 per share, equivalent to 50percent. This is in addition to alreadypaid interim dividend at Rs 3.00 pershare ie 30 percent.While briefing journalists about thecompan y's financial r esults, theManaging Director of PSO, IrfanQureshi said the company's salesrevenue touched Rs. 877 billion duringFY10, as compared to Rs. 719 billion inthe corresponding period last year.He said despite financial challenges andeconomic slowdown, PSO maintainedits leadership in the White and BlackOil market segments with market sharesof 55.3 percent and 88.2 percent,respectively. Overall, the market sharefor PSO stood at 71 percent during FY10.In light of the performance of thecompany, the BoM declared a finaldividend of Rs. 5 per share. Combinedwith the earlier interim dividend of Rs.3 per share, the total dividend for theyear stood at Rs. 8 per share translatinginto a total payout of Rs. 1.37 billion tothe shareholders.He said PSO sold 14.2 million tons ofPOL products in this period as comparedto 13.2 million tons during the preceding

year. In Black Oil,PSO enhanced itsmark et shar eappreciably from85.8 percent inFY09 to 88.2percent in FY10.P SO volumesgr ew by 17. 8p e r c e n t i nFurnace-Oil (FO)w he r e as th eindustry volumesenhanced by 14.6p e r ce nt . T hesurge was mainlydue to increase indemand in power generation sector.PSO despite the mounting circular debtresponsibly met the demands of thepower sector of the country. Thecompany registered positive volumetricgrowth of 20.9 percent in Mogas.However, in HSD, the companyexperienced a negative volumetricgrowth of 9.7 percent due to economicslowdown and circular debt.He said the circular debt crisis continuedto remain a serious problem as powersector customers continually defaultedon payments during the period underreview. As on June 30, 2010, PSO'sreceivables stood at an alarming figureof Rs. 117.5 billion. Consequently, PSOhad to rely on heavy bank borrowingsresulting in incurring of financi alcharges of Rs. 9.9 billion in FY10 ascompared to Rs. 6.2 billion in FY09. Asof today, the receivables pertaining tocircular debt stand at Rs. 130 billion, headded. He pointed out that as the largestpublic sector organisation in the energysector, PSO is cognizant of its corporateresponsibility and is actively involvedin social activities and CSR initiativesthat have a long term positive impacton the society. Over the years, thecompany ha s stepp ed up to the

challenges faced by the social sector andhas proactively contributed in times ofneed. In the recent Attabad lake crisis,PSO provided free medical supplies tolandslide victims helping them cope withthe physical and psychological traumaof the calamity. Replicating a similarspirit of citizenship, PSO has alsodona ted a day's salary of all itsemployees to the PM Flood Relief Fund2010.The Board, with its newly appointedchairman, Nazim F Haji , expressedconfidence in the company's future andin the leadership of Managing DirectorIrfan Qureshi. Given the company'sstrengths and the support of the Ministryof Petroleum and Natural Resources,the company will continue to overcomeall the challenges imposed by the marketdynamics and maintain its leadershipposition within the energy sector.The PSO manag ement vowed tocontinue making al l-out efforts incollaboration with the government forrecoveries from the power sector toensure availability of products in thecountry and to reduce the impact offinanci al cost on the company…..

PSO records Rs9.05bn after taxearnings in FY10

The board of directors of PSO recommended a final cash dividend for the

financial year ended June 30, 2010 at Rs 5.00 per share, equivalent to

50 percent. This is in addition to already paid interim dividend at Rs 3.00

per share ie 30 percent.

Energy Sector - update


The cash-strappedPakistan State Oil(PS O) incr ease dspe nd ing o n oilimports by over 32p e r ce n t to R s5 37.3 72 b il l io n

during financial year 2009-10 againstRs 363.087 billion in 2008-09 due tolow throughput by oil refineries.PSO spent Rs 231.134 billion on importof HSD, Rs 212.532 billion on HSFO,Rs 20.854 billion on JP-1, Rs 50.945billion on LSFO and Rs 21.906 billionon PMG imports during 2009-10. PSOimported 0.28 million metric tons (MT)Mogas, 0.37 million MT JET A-1 and3.87 million MT HSD.In July 2009, the cabinet committee onenergy directed PSO to import andsupply 35,000 metric tons per day fuelto power sector. Due to limitation ofFOTCO port, PSO had to pay over onemillion dollars demurrage on import ofpetroleum products during 2009-10.Industry sources said that the current

energy crisis also owed much to thecountry's lower refining capacity. Thefuel consumption has surged due togreater reliance on thermal powergeneration. PSO imported 5.54 millionMT HSFO and 1.16 million LSFO in2009-10 against 4.10 million MT and0.99 million MT respectively in 2008-09. During financial year 2009-10, totaloil consumption was 9.1 million MTwhereas refinery production stood at2.6 million MT.In 2008-09, total oil consumption was7.94 mill ion MT and total refineryoutput was recorded at 3.1 million MT.The country had to rely on 4.84 millionMT imports of petroleum products. Inyear 2007-08, total consumption ofpetroleum products was 7.45 millionMT and total refinery production stoodat 3.31 5 mill ion MT. The importscontributed 4.14 million MT to meet thecountry's requirements. PSO official saidthat despite circular debt issue, PSO wasarranging deficit petroleum products byimports. "Due to lower refinery output,

PSO had to import petroleum productsto meet the country requirements,"official maintained."Refineries earned huge profits duringthe year 2007-08 due to high prices ininternational market coupled withexcellent refinery margins but even atthat time refineries production was low,"official said attributing low refinerythroughput especially in 2009-10 tonegative 'refinery margin' rather thanthe circular debt issue. "Due to lowrefineries production capacity, importswere approved with consent of refineriesin monthly Product review meetingChaired by Director General (Oil)," headded.He claimed that refineries had reducedfuel supply to PSO because of its inabilityto pay dues due to circular debt issue."PSO is also paying exorbitant financialcharges to banks due to heavy borrowingto supply fuel to power sector," theofficial added…


PSO increases spendingon oil imports by 32pc

In July 2009, the cabinet committee on energy directedPSO to import and supply 35,000 metric tons per dayfuel to power sector. Due to limitation of FOTCO port,PSO had to pay over one million dollars demurrage on

import of petroleum products during 2009-10.

Prime Minister Syed Yousuf Raza Gilanion Friday appointed Nazim F Haji asnew Chairman of Board of Management(BoM) of Pakistan State Oil, accordingto local print media.Haji has been appointed chairman BoMat a time when PSO is on the verge offinancial collapse due to circular debtwith Rs 140 billion receivables as ofThursday. "New chairman BoM PSO hasa big challenge regarding the financialissues of the company," sources added.Haji was appointed as Member BoM,PSO on March 6, 2010. "The position ofchairman had been vacant since the

resignation of Sardar Yasin Malik inOctober 2009," sources maintained.Nazim F Haji graduated in 1969 fromSheffield University (UK) in MechanicalEngi neer ing. He was elected asChairman, SITE Association of Industryin 1988. Thereafter, along with a groupof like-minded businessmen andprofessionals, he set up Citizens-PoliceLiaison Committee (CPLC) under thepatronage of the then governor Sindh,former Justice Fakhruddin G Ebrahimin 1989 and headed it as its chief till1996. He was awarded Sitar-e-Shujaatin 1993. He has served on the board of

KDA (defunct), andExport Processi ngZones Au thority .Presently, he is ame mb e r o f thegoverning Board ofInfaq Foundation,Workers Employers Bilateral Council ofPakistan (WEBCOP), CPLC AdvisoryBoard, Oversight Committee for Prisons(Sindh), Sindh Board of Investment andSindh Public Procurement RegulatoryAuthority (SPPRA)…..

Nazim F Haji made PSO BoM chairman

Oil & Gas - Update



The City District Government Karachi(CDGK) Transport and CommunicationDepartment (T&CD) might scrap theprocurement process of further CNGbuses due to paucity of adequate funds.The total cost of adding 21 CNG busesto the existing fleet of 75 was estimatedat Rs 63 million while the CDGK hadtwice invited tenders for the buses andhad also received bids from theinterested investors.Earlier, the CDGK had cancelled thelowest bid on reasons that the successfulbidder could not furnish certificates ofa strong financial posi tion and thetechnical ability to run the bus fleet.Thus, the tenders were invited againand the bids were received for the finalsettlement. However, the bids receivedwere discar ded and the onwardprocedures were sent to the files for

good on thepretext of lackof funds.C i t yAdministratorF a z l u rR e h m a nr e c e n t l yvowed that theCDGK wouldn o t c l o sedo wn a nydevelopmentprojects in thecity because ofp auc it y offunds.The T&CD forthe f is cal y ear 2010-11 ha s 26development schemes for which Rs616.500 million have been allocated. It

is pertinent to mention that thedepartment has 114 traffic signals tolook after and Rs 26 million have beenallocated just for the maintenance andrepair of these 114 traffic signals .While talking to media, T&CD ExecutiveDistrict Officer Iftikhar Qaimkhani saidthe CDGK T&CD has not yet droppedthe scheme of procuring the new CNGbuses but due to lack of the requiredcash flow, the scheme could not becompleted during the last fiscal year.He added the scheme has been includedin the 2010- 11 budget with certainpossibilities including that either theprovincial government would providethe required sum of money or privateinvestors might come forward, whomthe CDGK would fully support or eventhe CDGK might earn enough revenueto fulfill the task itself.“We have to wait until December to seeif the CDGK gets the required revenueor else the project would further lingeron until the required revenue is in hand,”commented Qaimkhani…

CDGK may scrap plan to buymore CNG buses

While talking to media, T&CD Executive District OfficerIftikhar Qaimkhani said the CDGK T&CD has not yet dropped

the scheme of procuring the new CNG buses but due to lackof the required cash flow, the scheme could not be completed

during the last fiscal year.

CDGK restoresCNG Bus Service

The City District Government Karachi(CDGK) has restored its CNG BusService after repairing the out-of-orderbuses. With the restoration of thisservice, the fleet of 50 environment-friendly buses started to ply on the tworoutes from Surjani to Tower andSurjani to Korangi.The CDGK had, by utilising its ownresources, initiated this service with aninitial fleet of 50 dedicated CNG busesto provide better transport facilities tothe citizens of Karachi.The new bus service was welcomed bythe people of the city as it offered longdistance travelling at a very low fare ofRs15 per passenger.

Owing to the financial constraints facedby the city government, these CNG busescould not be maintained on time whichresulted in the out-of-order conditionof at least 35 buses.Karachi Administrator Fazlur Rehmanhad initiated the repair of these buseson public demand. He had issued thedirective for release of Rs7.2 million forrepair and change of tyres of the CNGbuses.The city government has decided tocontinue this bus service for theconvenience of the citizens. However,under a new strategy, the bus operatorwill be responsible for the timely repairof these buses....

City Transportation - Update


Despite the opposition of PetroleumMinistry, senior officials of the Ministryof Water and Power are making all outefforts to move a summary to EconomicCoordination Committee (ECC) of theCabinet seeking approval for allocatingthe entire gas from Pasaki/Kunar fieldto power sector. Press media has learntreliably.Addr ess ing a pre ss conf erence,Chairman All Pakistan CNG AssociationGhyas Paracha strongly criticisedMinister for Water and Power RajaPervez Ashraf for hatching a conspiracyagainst the CNG sector and other gasconsumers.Ministry of Water and Power considersthat Pasaki/Kunar gas field has thepotential of adding 1,550 MW on a fasttrack basis to the power sector at anaffordable cost/tariff.The recent energy summit approved thatal l new gas productions shall beexclusively made available to the powersector. After the resolution of legalissues, the Pasaki/Kunar field shall beallocated for power generation, Parachaalleged.According to sources Ministry ofPetroleum (MoP) strongly opposedWater and Power Ministry's proposal toallocate the entire gas available atPasaki/Kunar gas fields for powergeneration and warned not to reopenthe settled issue which may cause anuproar among the gas cons umers.ECC of the cabinet has already allocated

250mmcfd gas from Pasaki/Kunar fieldto SSGCL that will share 50 percent gaswi t h S N G PL th r o ugh sw aparrangements. "Reopening of the settledissue is not supported," PetroleumMinistry said and urged the Ministry ofWater and Power to upgrade it sinefficient power plants to generatemore power with existing gas allocation.MoP has warned that SNGPL which isunable to fulfill its commitments underGas Sales Agreements (GSAs) withIndependent Power Producers (IPPs)due to gas shortage will be forced to payheavy penalties in the form of alternatefuel cost.At present, SSGCL and SNGPL arefacing a shortfall of more than one billion

cubic feet gas per day (bcfd) which isprojected to reach 1.8 bcfd in 2014-15despite addition of Pasaki/Kunar, othersmall f ie lds and ant i cip ate dcommissioning of Iran Pakistan (IP) gaspipeline and LNG project. With theprogressive depletion of the major gasfields, it may not be possible forSSGCL/SNGPL to meet demand ofexisting consumers.Petroleum Ministry says that injectionof Pasaki/Kunar gas into SSGCL andSSGCL system is imperative to save boththe gas companies from collapsing anddue to this reason ECC of the cabinethas already allocated Pasaki/Kunar gasto SSGCL an d SNGPL sy st em…


Power ministry hatching conspiracyagainst CNG sector

Addressing a press conference, Chairman All Pakistan CNGAssociation Ghyas Paracha strongly criticised Minister for Waterand Power Raja Pervez Ashraf for hatching a conspiracy against

the CNG sector and other gas consumers.

CNG sector - update

The State Bank of Pakistan has decidedto raise the policy rate by 50 basis pointsto 13.0 percent with effect from August2nd, 2010 with a view to mitigate riskto macroeconomic stability.This was announced by Yaseen Anwar,Acting Governor, State Bank of Pakistan,while unveiling the Monetary PolicyStatement at a press conference on July30, 2010.

“This has been done to mitigate risks tomacroeconomic stability, monetarypolicy has to take lead for containingaggregate demand pressures emanatingmai nl y from expan sionary fiscalposition,”Increase in policy rate means increasein interest rate of the commercial banksfrom exist ing 12.5 to 13 percent .However, whether increasing interest

rate, electricity & CNG prices besidesincrease in GST would help containingthe inflation or would further erode thepurchasing power is yet to be seen.Explaining the rationale behind raisingthe policy rate Mr. Yaseen said thatrenewed committed efforts are requiredto increase the economy’s resourceenvelop e and co nt ain c ur re ntexpenditures....

SBP policy rate hiked to 13 per cent



Existing auto manufacturers expressedreservations over speculations that thegovernment remains all set to relaxconditions for new car manufacturersin an attempt to attract investment inthe auto sector.The government has been pressurisingauto manufacturers to reduce the pricesof local vehicles. All stakeholders areinvolved in talks with the governmenton the Auto Industry DevelopmentCommittee (AIDC) platform to sort outways.Prevail ing rumours are that thegovernment is about to reduce its annualproduction condition on new entrantsfrom 500,000 units to 100,000 units incountr ie s other than Pakistan.For local manufacturers/joint venturesthe target of 100,000 cars will beachieved within three years from thedate of operat ion, subject to theprescribed international standards.Moreover there wil l be no otherrestriction on set ting up of newindustries in the automobile sector.The local auto industry is concernedabout these rumors and said the industrywelcomes new car manufacturers, butthe government should provide a levelplaying field and policies should be thesame for existing and new auto makers.They said new entrants should performunder the same conditions as any otherlocal manufacturer with the same tariff;

and no special tax breaks or separatepolicy should be given.Reputed auto brands produce more than500,000 units, but it seems that thegovernment is paving the way for eitherlow-end quality brands or high-endItalian sports cars. However it is unlikelythe Italian Sports Brand Ferrari will beinterested in setting up a plant inPakistan.

If the production condition is relaxedfor new auto makers and they are givena more liberal policy, existing automakers believe the entire industry willsuffer a blow. They believe the industryis already suffering from ever increasingpressures such as a hike in the prices ofutilities and raw materials.According to Furqan Punjani, autoanalyst at Topline Research, if thisrelaxation in conditions is approved, itwill certainly allow more players in themarket. This will not have an immediateeffect, but in the medium and long termthis will break the monopoly of existingauto manufacturers, with consumershaving more choices.In another proposal, age relaxation onimport of used cars from three to fiveyears is also on the cards.After the implementation of an increasein sales tax by one per cent from 1st July,all local manufacturers have passed onthe ad de d c ost to consumer s.Prices of various models of Pak Suzukihave now increased by Rs4000 toRs70,000. Indus Motor Company hasincreased the prices of various modelsof Toyota by Rs11,000 to Rs16,000,while Daihatsu Coure has increased itsprice by Rs6000. Honda increased itsprices by Rs20,000 to Rs35,000 onvarious models.....

Auto-makers opposerelaxing conditions for

new entrantsIf the production condition is relaxed for new auto makers

and they are given a more liberal policy,existing auto makers believe the entire industry will

suffer a blow.They believe the industry is already suffering from ever

increasing pressures such as a hike in the prices ofutilities and raw materials.

Automotive Sector - Update



CNG stations' safety standardsGovt to welcome proposals: Minister

The training to the workers of CNG stationsis a step to ensure safety standards and adopt

solid measures.

Fuel & Safety - Update

The Oil and Gas Regulatory Authority(Ogra) increased on Thursday prices ofcompressed natural gas (CNG) by Rs1.70per kg for Sindh and Punjab and Rs1.73f or K hy be r Pak ht unkhwa andBalochistan.The new prices will be effective fromJuly 30, 2010.According to an Orga notification, CNGprices for Sindh and Punjab, excludingthe Potohar region, have been raised toRs55.33 per kg from Rs53.63 and thosefor Khyber Pakhtunkhwa, Balochistanand Potohar region (Rawalpindi,Islamabad and Gujar Khan) to Rs57.03from Rs55.30.CNG Dealers’ Association chairmanAbdul Sami Khan said the associationhad sought an increase of Rs2.30 per kgbecause of an increase in gas price,general sa les tax an d elect ricity

CNG prices increased

Federal Minister for Petroleum andNatural Resources Syed Naveed Qamarhas said that government will welcomethe proposals of all stakeholders toensure safety standards at CNG stations.While addressing an event "Pakistan'sWorkforce - Fueling the Economy,"Minister said that Pakistan was thelargest CNG consumers in the world."The training to the workers of CNGstations is a step to ensure safetystandards and adopt solid measures,"Qamar said. Minister said that gas priceswere still less than the prices prevailingin the world market."Skilled labour is needed to improveCNG industry and we believe we havebeen able to address some of the gapsthrough partnership with the US who issupporting CNG skills training," saidNaveed Qamar.Bob Wilson, the Mission Director of theUnited States Agency for InternationalDevelopment (USAID) Pakistan said,"Pakistan was facing energy crisis andUS was making all out efforts to provideassistance to overcome the shortage."Pakistan should al so f ocus on

production side," Wilson maintained."Our commitment to the government ofPakistan includes nurturing local talent,"he said adding "by sharing trainingexpertise and experience with today'spromising CNG industry employers and

employees, we believe we are makingan investment in the future of thePakistan's energy workforce and CNGindustry."USAID completed workforce ski llstraining of 753 CNG Workers in theCompressed Natural Gas (CNG) sectorin custome r serv ice an d saf etystandards, increasing their eligibility forpromotion and incomes over 10 percent.Further expanding its partnership withthe Government of Pakistan, USAIDpresented the Ministry of Petroleum andNatural Resources the CNG curriculuman d tr ai ning manuals entit led"Pakistan's Workforce - Fueling theEconomy."All Pakistan CNG Association CentralChairman Ghyas Paracha said; "JobsProject - Pakistan's Workforce - Fuelingthe Economy" is one of the milestonesto meet training objective of CNGstations staff.He said that CNG association wasworking on the bio-fuel technology,which will meet the need of gas for theCNG sector and help reduce pollutionmaking Pakistan greener….

The Balochistan Customs has revealedthat 50,000 illegal (noncustoms duty-paid) vehicles were operating in Quettaan d other parts of the province.These illegal vehicles have inflictedfinancial loss of Rs15 billion to thenational exchequer,” Collector CustomsHafiz Matiullah told media. He said thatduring last three months customs hasseized 70 such non-cust om-pai dvehicles. He said that minimum customsduty per vehicle was Rs0.3 million.The Balochistan Customs has written a

letter to provincial government seekingthe support of other law enforcementagencies in nabbing illegal vehicles.He said that most of the crimes werebeing carried out in these illegal vehiclesand customs was fac ing politicalpressure after seizure of such vehiclesince they belonged to influential people.Hafiz Matiullah said that BalochistanCustoms has seized smuggled goodsworth Rs500 million during last threemonths....

50,000 illegal vehicles in Balochistan

visit our websitewww.automark.pk



Ministry of Environment and the UnitedNations Pakistan through the One UNJoint Programme on Environment hadlaunched the Grass Root InitiativeProgramme (GRIP). According to thepr ogr amme 2 4 envir onme ntalpr ote ct ion p r ojec ts wo uld b eimplemented by the community basedNGOs in all provinces including AJKand Gilgit Baltistan.This was revealed in a meeting withFederal Minister for EnvironmentHameed Ullah Jan Afridi in the chairhere on Friday. The meeting wasat tended by Fede ral Secr etar yEnvironment Muhammad Javed Malik,Additional Secretary Kamran AliQureshi, Director General Javed AliKhan, I.G Forest Syed Mehmood Nasir,

National Programme Coordinator OneUN Joint Programme for EnvironmentSaleem Ullah and other representatives.It was disclosed that 24 projects wouldbe completed with the estimated cost of$1.2 million and out of these projects,three projects would be implementedin AJK, four in Balochistan, three inGilg it-Ba ltist an, five in Khyber-Pakhtunkhwa, seven in Punjab andthree in Sindh Provinces. These projectsinclude solid waste management andsanitation, community based NaturalResource Management and Grass-rootClimate Change Mitigation initiatives.It was informed that GRIP aims atdeveloping an inclusi ve commonplatform of key partners to connectpolicies, programmes and projects and

actions by government, aid agencies,NGOs and UN agencies, and commercialactivities of the private sector into anag reed sust ai nab le developmentframework.Federal Minister said that GRIPprogramme would assist the civil societyorganisation (CSOs) in the shape ofsmal l gr ant s f or in te gr ate denvironmental management. UnderGRIP, the CSOs wi ll impleme ntinterventions for the achievements ofMDGs by demonstrating holis ticenvironmental management at locallevel including awareness raisi ngcampaigns and capacity developmenttowards the same cause.-PR

Ministry of Environment,UN launch GRIP

Climate change and global warming areadversely affecting the world and recentheavy downpours that broke the 35-year-old records caused by globalclimate change, said Federal Ministerfor Environment Hameedullah JanAfridi.He was addressing a two-day workshopon “environment and climate change”,or gan ise d b y the Ministry ofEnvironment in collaboration withUnited Nations Environment Program(UNEP) and University of Peshawar.“Despite the fact that Pakistan is not amajor contributor to the global warming,emitting only 0.4 percent of total GHGemissions and ranks 135th in per capitaper day emissions, the country isseverely being effected by the impactsof cl imate cha ng e,” sa id Afridi.Food, water and energy security havealso been threatened by the globalwarming. According to modern studies,wheat yield would be reduced by 5-6percent by 2080 because of the climatechange.The Minister said that being vulnerableto the consequences of this change the

country was in growing need to protectitself from the adverse impacts of climatechange. “National Environment policy2005 provides guidelines and prioritiesfor implementation of climate changeissues”, he added.He underlined that inter-ministerialcommittee has also been establishedunder the Prime Minister to address theenvironmental problems and The GlobalChange Impact Studies Center that wassecr e tar iat fo r the committe eundertaking comprehensive researchon climate-related issues. “Preparationof Environment and Climate ChangeOutlook report will be very helpful andpolicy aspects of the report will assist inreducing risks, developing robust copingstrategies and creat ing synergi esbetween various governmental agenciesand other factors dealing with climatechange.”He wished that this workshop would bean initiative for all of us, not only todiscuss the various issues pertaining tothe environment and climate changerather actively participating in theprocess…..

Global warming

Climate change promptingheavy rains and floods Federal Mini ster for Environment

Hameedullah Jan Afridi presented

award to 58 companies at the 7th

Environment Excellence Award 2010ceremony organized by the National

Forum for Environment and Health

(NFEH) in collaboration with KESC,English Biscuits and other companies

at a local hotel.

The awards were decided by a jury offive judges including environment

expert Dr. Sami-uz-Zaman Head of Jury,

Shamsul Haq Memon Member Jury &Former Secretary Environment Sindh,

Nade em Ar if Me mb er Ju r y &

Environment Consultant, Afia Salamand Gulzar Feroz Member Jury &

Chairman FPCCI Standing Committee

on Environment. The decision of thejury was widely hailed by the officials of

government, civil society and media

organizations.Addressing the ceremony, Hameedullah

Jan Afridi said that hectic efforts are

being made to conserve environment inthe country by raising forests, reducing

air pollution and disposing of solid waste

in proper way.

Focus on Environment

Best environment awards

go to 58 companies


Mahindra & Mahindra Ltd. plans tointroduce its first motorcycles in Indiawithi n the next few months as itchallenges Hero Honda Motors Ltd. inthe world’s second-biggest two-wheelermarket.The company intends to add motorbikesranging from low-cost entry models topremium products, Anoop Mathur, thehead of Mahindra’s two-wheelerbusiness, said in an interview at thecompany’s Mumbai headquartersyesterday. He declined to elaboratefurther on the product plan.The two-wheeler unit aims to break evennext fiscal year and to become as largeas Mahindra’s tractor and sport-utilityvehicle businesses within seven years,Mathur said. India’s largest maker oftractors and SUVs began makingscooters in 2008 after buying KineticMotor Co. to boost sales in a countrywhere two-wheelers outsell cars aboutthan five-to-one.“It will be very difficult to break intothis market as the existing players areso dominant,” said Vaishali Jajoo, aMumbai-based Angel Broking Ltd.analyst. “Mahindra will have to leveragetheir brand if they want to establishthemselves in the two-wheeler space.”Hero Honda, part-owned by HondaMotor Co., and Bajaj Auto Ltd. togethercontrol about two-thirds of India’smotorcycle market, the world’s biggestafter China.Shares RiseMahindra climbed 2.4 percent to 616.75rupees at the 3:30 p.m. close of trading

in Mumbai, the fourth-best performerin the 30-stock benchmark SensitiveIndex, which rose 0.6 percent. Theautomobile-maker has climbed 14percent this year, outperforming a 2.9percent gain for the Sensex.The company’s scooter sales more thanquadrupled in the quarter ended Juneto 27,000, according to Society of IndianAutomobile Manufacturers data.Industrywide sales of motorcycles andscooters rose 28 percent to 2.7 millionin the three months as rising incomesand economic expansi on spurreddemand.“We’re looking to become a credibleplayer in the two- wheeler space in Indiaover the next few years,” Mathur said.“There’s huge potential in the market.”Mahindra’s companywide revenue hasincreased at an average pace of 25percent over the pas t five yearscompared with 16 percent for HeroHonda and 15 percent for Bajaj Auto,ac cording to Bl oombe rg data.

Mahindra’s tractor business was itsfastest-growing segment over the pasttwo years, expanding an average of 29percent, according to data compiled byBloomberg. Cars, trucks and SUVs growat a 14 percent annual rate in the period.

Motorcycle DesignsMahindra’s motorcycles will be designedby Engines Engineering, an Italiandesign company it acquired in 2008,Mathur said. The company wouldconsider further acquisitions an dcollaborations to boost its two-wheelerbusiness, he said. No deals are beingactively worked on at present, he said.Mahindra, which is considering afinancial bid for Ssangyong Motor Co.,the bankrupt South Korean sedan andSUVs manufacturer, more than doubledits net income to 20.9 billion rupees lastfiscal year as vehicle sales surged. Profitmay rise to 21.8 billion rupees in the 12months to March 31 according to theaverage of 21 anal ysts’ estimatescompiled by Bloomberg.The company may consider exportingmotorcycles to markets including LatinAmerica, Africa and South Asia oncesales in India have begun, Mathur said.Nat ionwide two-wheel ers outsoldpassenger cars 2.7 million to 554,566 inIndia in the April-to-June quarter,according to data from the Society ofIndian Automobile Manufacturers.Sales of motorcycles may increase to8.04 million in the year ending March31, 2011, from 7.34 million last fiscalyear, the group predicts. Scooter salesmay gain 14 percent to 1.66 million.


Mahindra to Unveil FirstMotorcycles This Year,

Challenging Honda in India“It will be very difficult to break into this market as the existing players are

so dominant,” said Vaishali Jajoo, a Mumbai-based Angel Broking Ltd.analyst. “Mahindra will have to leverage their brand if they want to establish

themselves in the two-wheeler space.”Hero Honda, part-owned by Honda Motor Co., and Bajaj Auto Ltd. together

control about two-thirds of India’s motorcycle market,the world’s biggest after China.

International Automotive - Update


BRIEFING - ASIA AUTOMOTIVE

GLOBAL MOTORCYCLEOUTPUT DOWN 4.8%

IN '09, 1ST DROPIN 11 YRS

TOKYO - Glob al p roduct ion ofmotorcycles fell 4.8 per cent to 50.15million units in 2009, its first decline in11 years, due mainly to the effects of theglobal financial crisis.The figures were released at a joint newsconference held Wednesday by thenat ion's four maj or motor cy clemanufacturers, including Honda MotorCo. (TSE:7267) and Yamaha Motor Co.

MALAYSIAN AUTOMAKERSSTUDY TRADE

OPPORTUNITIES INSOUTH AUSTRALIA

ADELAIDE - Adelaide's auto componentproducers will get a chance to pitch forextra export business with a key groupfrom Malaysia's car industry visitingSouth Australia.Representatives from vehicle producersProton an d Perodua al ong withmembers of the Malaysian AutomotiveAssociation have arrived in Adelaide toexplore trade opportunities.

JAKARTA - Indonesian automotivesparepart traders at Atrium Senensparepart shopping center here saidengine fuel pump sales over the pasttwo weeks had increased from 2-3 unitsper month to 2-4 uni ts per day.Dian Motor spareparts shop ownerHendra said here on Tuesday that acustomer who was a public transportbusinessman, had bought fuel pumpsfrom him three times in one week.

DEMAND FOR FUELPUMPS INCREASING

IN INDONESIA

BUILD 2ND CHINESE TIRE PLANTOSAKA - Japan's Sumitomo RubberIndustries Ltd. (TSE:5110) has decidedto set up its second tire plant in Chinaat a total cost of 26.7 billion yen(US$305.34 million).This new plant will be built in Changsha,Hunan Province. Served by well -maintained expressways, this inland cityoccupies a prime location within China'stransportation network. By building aplant inland, the company hopes toavoid the surging wages and laborshortages affecting coastal areas

JAPAN'S SUMITOMORUBBER TO BUILD

2ND CHINESETIRE PLANT

TOKYO - With the government's green-car subsidies set to end after September,cabinet ministers are split on extendingthe measure."Given the state of the economy, thesche me must b e p r olo nge d,"Environment Minister Sakihito Ozawatold reporters Wednesday. But hiseconomy , t r ad e and indust rycounterpart, Mas ayuki Naoshima,insists that "they should not be extendedindefinitely. We're not currentlyconsidering continuing the schemethrough Octobe r an d bey ond ."

JAPANESE MINISTERSSTILL DIVIDED ON

EXTENDING ECO-CARSUBSIDIES

SEOUL - South Korea's top automakerHyundai Motor Co. (KSE:005380) saidThursday its second-quarter earningsjumped 71.2 per cent from a year earlieron strong sales at home and abroad.Net profit surged to a quarterly high of1.39 trillion won (US$1.17 billion) in thethree months that ended June 30,compared with 811 billion won a yearearlier, the company said in a regulatoryfiling.

HYUNDAI MOTOR Q2NET SURGES 71.2 PCT

ON STRONG SALES

SEOUL - G M Da ewoo Auto &Technology, the South Korean unit ofU.S. automaker General Motors Co.,said Monday its automobile salesincreased 49.4 per cent in July from ayear earlier on strong overseas demand.The automaker sold a total of 67,318vehicles last month, compared to 45,064units sold a year ago. Domestic salesincreased 10.4 per cent on-year to 10,313units in July with exports jumping 59.6per cent to 57,005 units.

GM DAEWOO'S AUTOSALES SURGE 49 PCT

IN JULY

HONG KONG - Automotive sales inChina will reach 22 million units by2015, buoyed by the country's positiveeconomic growth, a government reportshowed Friday.According to the White Book of ChinaMotor Industry published by theDevelopment Research Center of theState Council, a research institutionunder the Chinese government, China'sauto market will jump about 62 per centin six years.

CHINA'S AUTO SALESTO REACH 22 MLN

UNITS BY 2015

(INTERNATIONAL)

International automotive sector - Update




Shell international is one of the world’slargest Oil & Gas organizations, earningbillions of dollars in profit per annum.Besides providing POL products globallyShell sponsors many racing events &brands worldwide as automobiles arethe major consumers of the energyderived from the oil & gas.Amongst man y events Shell EcoMarathon (SEM) is one of the mostunique concepts developed to encouragethe yo ung e mer ging ta lent ofengineering students who put forwardtheir ideas to develop concept vehicleshaving drive trains that consume theconventional and alternate fuels veryefficiently; for world of tomorrow, whichwill be striving for sustainability ofenergy.Last month SEM Asia-2010 was held inMalaysia at the Sepang InternationalFormula 1 circuit. Teams from all themajor Asian countries participated.Pakistan showed its strong participation,in total 30 teams expressed theirintentions through registration for theirvehicles, although 23 teams got finalapproval to take their vehicles for theevent.Monthly Automark magazine publishedmonthly from Karachi, conducted asurvey of all the participating teamsabout their experiences all the way fromthe construction of their vehicles to theirevent, the competition & other safetyand technical aspects. Here we willhighlight all those aspects and the viewsof those who experienced it the firsthand.

• Students from almost all reputedengineering institutes across Pakistannamely NEDUET, UET Lahore, NUST-NU, Air Univ ersi ty & GIKI etc.participated in this event & although thestudents agreed that their universitieshave the appropriate facilities to developtheir vehicles but due to the universitypolicies and procedural impedimentsmost of the students developed andfabricated their vehicles at sponsorsplace or at an independent workshop orgarage.

• Most of the teams took two or moremonths for the development of theirvehicles & technical assistance wasprovided by their respective universityteachers. Most of the teams used locally

available parts & equipment for thedevelopment of their vehicle s.

• All the development & manufacturingindeed needs financial assistance. Whenit comes to sponsors students eithermanaged sponsors by themselves oruniversities helped finding them. Thefinancial aid was enough for few teamswhile some invested individually to fulfillthe remaining monetary requirements.

• Most of the teams had problems inthe transportation of their vehicles toMal aysia. Shell international hadarranged a local logistic company forthe teams at heir cost depriving fromthe initial agreed financial assistance ofaround US $ 3,000 to be given to theparticipating teams at Malaysia, as suchthe teams were compelled to use theShell designated logistic company thecosts were too high for many teams, sothey managed to arrange transportationfrom other agencies that sponsored theirtransportation charges.

• Another problem which Pakistaniteams faced was that the cars whenarrived in Malaysia were in “Bad”condition due to the breakage ofcomponents during transportation. Allthose who packed their cars bythemselves found their vehicles withbroken components in Malaysia. It’simportant to mention here that all thosewho utilized the assistance of cargoservices to make a perfect package oftheir cars, retrieved their cars in “Good”and “Normal” condition. (as per oursurvey report)

• Due to the relatively adverse conditionof Pakistani vehicles the teams mostlytook 2 or more days to put their vehicleson track. To repair their vehicles inMalaysia most of the teams utilized theexpertise of their teachers or shellof ficial s and help of Mal ay si ancolleagues.

• Only one team from GIKI institutenamed AQUA was able to register anofficial result. Team Pakistan fromNEDUET Automotive eng ineeringdepartment also managed to completeall laps but due to delay of 1 minute tothe allotted time was deprived of thesecond prize in the urban category.

• A team from UET Lahore was not ableto make it to the track due to

transportation damage suffered earlierbut got amount of 200US$ for beingnominated in the top 15 conceptsamongst all the vehicles. When theywere not able to make it to the trackthey donated their vehicles spares toother teams in need of them.

• Another interesting concept fromNEDUET Automotive department wasPakistan’s first concept Fuel cell vehiclewhich utilized hydrogen fuel cell donatedby NED to propel the vehicle, it claimed634 km/l of Hydrogen. But could notcomplete the required 5 laps due to drainof their batteries.

• The outcomes of this year will behelpful in plotting their learning curvefor the st udent s inte nt ional toparticipate next year. It is to be said thatwhile it is good to see the large numberof active participant this year but dueto the huge number of participants thesponsors had to be divided amongst allof them & therefore they had to developtheir concept vehicles in relatively lessersubsidy.

• It is better for the upcoming years thatthe number of teams are reduced so thatthe monetary funding are well enoughfor all the participants. Also the role ofShell in this event receives a mixedresponse. Some criticize it thoroughlydue to the obligation of Shell that noteam is allowed to get sponsors fromany other Oil & Gas industry as on theother hand Shell itself does not providenecessary funds for the development ofvehicles.Concluding this survey report the effortsof all participant teams from Pakistanhave to be appreciated thoroughly, evenif they weren’t able to make it to thetrack; the will they demonstrated to turntheir concepts into reality & the will togo on & to succeed has to be appreciatedwhole heartedly.Role of media comes in this aspect &appropriate media coverage is necessaryto appreciate the talent of all theindividuals. We hope that the youth starsof Pakistan keep on shining in theinternational arena & make a strongimpression that we have the caliber totake on any challenge put forward to us.Happy Independence Day and Long livePakistan. Cheers!

Shell Eco Marathon Asia-2010Exclusive Survey Report by automark team

Student Corner


No [14]

Yes [5]

Did you complete all laps?

Yes 5 26%

No 14 74%

substantial government’s revenues,inte grate d indust ry , si gni fican tcontribution to GDP for economicgrowth, move towards self reliance andsignificant import substitution throughlocal value addition.PAMA says that the industry sufferedfrom unfavorable and unstable policieseroding its global competitiveness, Highduties on imports of parts not availablelocally, liberal policy on import of usedcars and high cost of doing business withmore than 50 per cent idle capacity.Auto industry contributes foreignexchange saving of $2.4 billion per year,foreign investment worth over Rs 100billion, over Rs 338 billion per year toGDP, over Rs 63 billion per year as taxes,employment for almost one millionpeople through its value chain, transferof technology via joint ventures andtechnical assistance agreement and localproduction of large number of auto

parts.According to Furqan Punjani of TopLine Securities July 2010 car sales arelikely record seven-month low. Car salesin Pakistan after reaching 24-monthhigh level in June 2010, is expected todecline by 39 per cent (seven-monthlow) to approx 10,200 units duringJuly10.The major reason of this decline in salesis pre-buying by dealers in June 2010in antic ipation of higher car pricesfollowing one increase in sales tax inbudget 2010-2011. The decline is likelyto be visible in sales of Pak Suzuki (down52 per cent on month on month)followed by Indus Motor (down 27 percent MoM).However, July 2010 car numbers willbe flat compared to July 2009. Furqanexpects overall car sales to reach154,000 during 2010-2011, a 10 per centgrowth after an abnormal rise of 43 per

cent in 2009-2010.He says Pak Suzuki is likely to take aheavy toll as its sales are expected todecline by 52 per cent to around 4,500units compared to 8,693 units in June10. This decline is likely to be visible inMehran sales.Similarly, sales of Indus Motor areexpected to remain around 4,200 unitscompared to 5,793 units in June 2010,down 27 per cent. Furthermore the eliteclass Honda Cars’ sales are also expectedto fall by around 33 per cent to 1,300units compared to 1,728 units lastmonth.None of the car manufacturer (notablyIndus Motors Limited and Pak Suzuki)is highly leveraged and currently a veryminor portion of sales is derived fromconsumer financing. However, if interestrate continues to increase going forwardit wi ll affect car sales demand....


If you do get chance to attend this event again next year, will you attend?

Yes 14 74%

No 0 0%

Maybe 5 26%

No [0]

Yes [14]

Maybe [5]

Were you satisified with role of Shell Pakistan in this event?

50/50 [10]

No [3]Yes [6]

Yes 6 32%

No 3 16%

50/50 10 53%

Student Corner Exclusive Survey Results



Shell Eco Marathon Asia-2010



Automotive - Corporate Event

I niti at e d with an unwa ver ingcommitment to the development andcreation of leading technologies, RaviAutomobile (Pvt) Ltd., formerly HKFEngineering (Pvt) Ltd., has revitalizedthe Pakistani Two-Wheeler AutomotiveIndustry and the very essence of itsparen t group of companies, RaviR e sour ce Pakis tan, s i nce it sinauguration in 2004.Ravi Resource has set up newestablishments to better cater to theneeds and demands of its clients. Thenew branches to this strong networkare:

• Ravi Spherocast - A facil itydedicated to Casting of Nodular andGrey Iron

• Ra vi Agric – A project incollaboration with Claas Germany,de dic at e d to pr ov id ing he avyagricultural machinery to Pakistan

• Infinity Engineering (Pvt) Ltd.– A facility oriented in subcontractingactivities special izi ng in Forgi ng,Pr ecis ion Machi ning and HeatTreatment of automotive and generalengineering components.R avi is the o nly mo tor cy clemanufacturer that has provided itscustomers with an array of motorcyclesand presently has the following threemodels:-

• Hamsafar-70

• Premium R1• Ravi Piaggio: Storm 125All these products are compatible andapproved from Pakistan StandardQuality Control Authority (PSQCA) andPakistan Engineering DevelopmentBoard (EDB).

Our Storm 125 is a joint productmanufactured and assembled at RAVI– Pakistan under the agreement withPIAGGIO (Italy) 4th largest producerfor motorcycles and scooters in theworld. This is a 1st EURO II motorbikein 125cc class in Pakistan.Adding to this range, Ravi is set tolaunch three new models within the nextfew months maki ng it not just amotorcycle manufacturer that providescost-effective, performance packed,reliable motorcycles; it is the onlyPakistani company that is fully equippedwith in-house manufacturing facilitiesto sustain and deliver higher levels ofproduction as Pakistan’s two-wheelermarket continues to expand. Therefore,Ravi Motorcycles embody industryleading innovation in both style andmechanics. Dedicated to luxurious long-distance travelling, it is the freedom togo places. Alive and empowering, it is avehicle that makes it worth a ride! Ravi Automobile (Pvt) Limited has 140(3S) dealers all over Pakistan; forproviding support, sales and the highest

level of services to RAVI Motorcyclebuyers. Our products are also backedby appropriate spare parts of OEMquality, warranty and service networkas at RAVI, we strongly believe in thestate of art manufacturing, strongproduct line up and market orientedstrategies.Headed by its dynamic young Director,Mr. Fahad Iqbal, Ravi Automobile closedthe financial year 2009 / 2010 with asubstantial increase in sales and tocelebrate this success with the Ravifamily, A Platinum Dealers Meeting washeld on 24th July 2010 at Burj Al Arab,Dubai . A gr and celebration wasundertaken to thank our respectedassociates, appreciating their hard workand value d collab orat ion. Mr.Muhammad Saeed Akhtar, ManagerSales & Marketing, provided an overviewof the closed year’s Sales activities andtargets were discussed and set for thenext financial year 2010-2011. Thiswasfollowing by an overview of the AfterS al es whi ch wa s pre se nt ed bySr.Manager Service, Mr. Asif Mehmood.The event was concluded with an awardceremony, honoring the PlatinumDealers and Top Dealer of Hamsafar,Premium R1 & Storm125with shieldsand a firm commitment to continue withthe same zeal and zest through thecoming years...

PLATINUM DEALERS MEETING 2010RAVI AUTOMOBILE (PVT) LIMITED.

Transforming Ideas Into Value

Ravi Platinum Dealers meeting with the Director of RAVI Automobiles Pvt, Ltd.in Buraj-ul-Arab, Dubai


AUTOMARK | July-2010 42

A Group Photo of Ravi Platinum Dealers withDirector of RAVI Automobiles (Pvt) Ltd.A Group Photo of Ravi Management at Buraj-ul-Arab,Dubai

On the occasion of Platinum Dealers meeting.

A Group photo of Ravi Platinum dealers with Ravi Sales team

Top Seller Premium R1 in overall Pakistan

(M/S Fiaz Ravi Centre, Peshawar)

Top seller of Hamsafer RA in all Pakistan(M/S Kashif Traders, Khan Pur.)

1st position holder in overall Pakistan(M/S Kashif Traders, Khan Pur)

Top Seller of Storm 125cc in all Pakistan(M/S Asif Autos, Lahore.)

Automotive - Corporate Event


August-2010

www.automark.pk



“Legend” the word itself means actionsor happening s as sociated wi t anindividual that defy all possibilities ofreal world. Some individuals are bornLegends, while some transform theirlives to turn it into a legend. Only a fewhowever, are able to redefine the termLegend itself. Ayrton Senna da Silva isone of those individuals.Very recently world’s biggest automobileTV show “Top gear” presented its tributeto Ayrton Senna on the occasion of his50th birthday if he were able to surviveto this present day. This tribute inspiredme to write this article. Mentioningabout myself I’ve been a Formula 1 fanfor the past seven years. With thepassage of time I have been collectingtechnical information about the ultimatecar technologies used in the world of F1as well as gathering information aboutthe drivers & their driving styles. Sincethe very beginn ing I’ve a lw aysappreciated Michael Schumacher’sability just like millions globally, but therecent tribute on Top gear changed myperceptions.Ayrton Senna was introduced to F1 in

the year 1984 when he joined TolemanF1 team. He was gaining popularity dueto hi s car control along with theaggressive driving style he possessed.One year later he left Toleman & joinedLotus F1 team in which he continued torace for the upcoming 3 years, polishinghis skills & marking his authority firmlyon F1 teams & drivers as a fiercecompetitor. He left Lotus F1 in 1987 &joined “McLaren” that led him to his 3world championship titles. He leftMcLaren after 1993 season & joinedWilliams for the 1994 season, whichproved unlucky for him & resulted inhis death.The era in which he was driving was theera of champion drivers. Unforgettablenames like Nelson Piqet Snr.(3 timeschampion), Alai n Pr ost(4 timeschampion), Niki Lauda (3 timeschampion), Nigel Mansell ( 1 timechampion) & Michel Schumacher whowent on & became 7 time worldchampion. Also its worth mentioningthat the cars used at that time had morepower than the F1 cars of today, veryless safety parameters, very few or noneelectronic aid to facilitate safe driving& generated very less downforce ascompared to the cars of today.After considering all these facts & figuresit is hard to distinguish between him &the greats of his time & this is where hisdriving style stepped in to take himahead of his rivals of that era. It is verymuch visible in his driving that he wasa master when it came to “throttlecontrol”, no matter what the conditionswere; no matter it rained or not he madehis moves stick while driving. He madeeven the most difficult to drive F1 carsto behave well under his driving style.This was the fact of his success & thiswas the reason why drivers intendingto overtake him had to take risks whiletrying to get his position.His greatness is accepted by all. The

drivers of today, the drivers before him& the drivers who drove with him.Rubens Barrichello & Felipe Massa thetwo of modern Brazilian F1 driversaccept hi s gre atness al ong wit hFernando Alonso, Robert Kubica, JackieStewart & the great Michael Schumacherhimself. Once I remember a commentof Jackie Stewart saying “MichaelSchumacher isn’t the greatest F1 driverever, he wins more championships todaybecause he does not receive that bigcompetition in modern F1, Senna is waybetter than him.” Back then, I had noidea of the fact this comment actuallyrepresented. Lewis Hamilton the 2008F1 champion when asked whether hewould have liked it to be in the era of allthose great drivers? he was speechlessfor a second & then in reply just said“Crazy”. That says it all.Bruno “Senna”, Jacques “Villeneuve” &“Nelson Piquet” jnr, are some names oftoday’s racing world. The legacy of thenames they carry along with their namesdoes not reflect in their driving abilities.Nelson Piquet jnr. Son of the greatnelson Piquet snr, made it into & out ofF1 due to his bad performance, JacquesVilleneuve the son of Gilles Villeneuvenever was able to establish his authorityin F1 due to his driving abilities, insteaddepended heavily on the abilities of histeam. Bruno Senna the nephew of thegreat Ayrton Senna is racing these daysin F1 but without demonstrating thelega cy associated wi th his name.The cars of today’s formula 1 grid aremuch safer than that which causedAyrton Senna his death, but we don’tfind anyone today who comes close tomatch the talent he possessed. To hisnation he was known as a person whospent millions in charity & as a sportinglegend, but we will remember him asthe greatest driver of all times. Long livethe memories of the legend Senna.

“Ayrton Senna”The Legend

Tribute to Ayrton Senna Exclusive article by Shahzad Tabish


CHEVROLETModel Price

Rs. 569,000CHEVROLET JOY CNGRs. 539,000CHEVROLET JOY Petrol

Price updated July’ 2010

MEHRAN VX 800ccMEHRAN VX (CNG) 800cc

MEHRAN VXR (CNG)

MEHRAN VXR

ALTO VX 1000cc

ALTO VX (CNG)

ALTO VXR

ALTO VXR (CNG)

Rs. 433,000Rs. 479,000

Rs. 488,000

Rs. 532,000

Rs. 556,000

Rs. 614,000

Rs. 635,000

Rs. 684,000

SUZUKIModel Price

TOYOTA COROLLAModel Price

ALTIS 1.8 VVTi M/T

2.OD SALOON

GLI 1.3 VVTi Rs. 1,426,000XLi 1.3 VVTi Rs. 1,300,000

2.OD SAL SUNROOF Rs. 1,799,000

2.OD Rs. 1,358,000Rs. 1,713,500

Rs. 1,713,500

ALTIS 1.8 VVTi A/T Rs. 1,799,000

LIANA 1.3L RXI MT PETROL

CULTUS VXRCULTUS VXR (CNG)

CULTUS VXLCULTUS VXL (CNG)

LIANA 1.3L RXI MT (CNG)

LIANA 1.3L LXI MT PETROL

LIANA 1.6L Eminent AT

RAVI PICKUP ST308R VX

RAVI PICKUP ST308R VX CNG

BOLAN VAN Petrol VX

BOLAN VAN VX CNG

SUZUKI VAN CARGO

BOLAN VAN VXR

BOLAN VAN VXR CNG

LIANA 1.3L LXI (CNG)

Rs. 816,000

Rs. 857,000

Rs. 865,000

Rs. 912,000

Rs. 1,114,00

Rs. 1,184,000

Rs. 1,165,000

Rs. 1,230,000

Rs. 512,000Rs. 564,000

Rs. 578,000Rs. 631,000Rs. 478,000

Rs. 1,229,000

Rs. 453,000

Rs. 504,000

SUZUKI SWIFT 1.3L PETROL Rs. 1058,000

NISSAN CARSModel Price

Sunny Ex-Saloon 1.6L M/T Rs. 1,225,000Sunny Ex-Saloon 1.6L CNG Rs. 1,305,000

S. Super Saloon 1.6L M/T Rs. 1,370,000

S. Super Saloon 1.6L CNG Rs. 1,450,000

DAIHATSUModel Price

Rs. 7,15,000

Rs. 7,49,000

CX ECO (CNG)

CX AUTOMATIC

Rs. 6,70,000CUORE CX

NISSANS. Super Saloon 1.6L A/TS. S. Saloon 1.6L A/T CNG

Rs. 1,470,000Rs. 1,550,000

NISSAN DIESEL TRUCKSDiesel Truck PKB 211Diesel Truck PKD 411HDiesel Truck PKD 411EDiesel Truck PKD CD 411Diesel Prime Mover CWM 454

Rs. 3,000,000Rs. 4,150,000Rs. 4,260,000Rs. 4,600,000Rs. 5,500,000

MASTERModel Price

Master Highland M-260 (1,5T) Rs. 625,000

Master Forland Super M-330 (3T) Rs. 699,000

Master Econg M-390 (3.5T) Rs. 930,000Master Grande M-410 (4.5T)

Master Rocket Faw (7.5T)Rs. 11,30,000Rs. 12,60,000

Master Feng EQ 1061 Strip Chassis Rs. 832,000

Master Feng EQ 1032 Strip Chassis Rs. 832,000

CIVIC VTI Pt Oriel

HYUNDAI

Model PriceACCORD Rs. 5,866,000

CITY I-VETC AT Rs. 1,389,000CITY I-VETC MT Rs. 1,259,000

CIVIC VTI Mt

CIVIC VTI Mt Oriel

Rs. 1,629,000

Rs. 1,804,000

ACCORD CR-V Rs. 5,316,000

CIVIC VTI Pt Rs. 1,749,000

Rs. 1,879,000

HONDA

Model Price

CHERY QQ

CHERY QQ Petrol Rs. 588,000CHERY QQ CNG Rs. 628,000

LAND ROVERModel Price

Rs. 2,269,431Rs. 2,545,000

Rs. 2,150,260

DEFENDER

(90 S/WJEEP STD)(110 S/W A/C)

(90 Soft Top)

Car / Light Vehicle Price ListCar / Light Vehicle Price ListGenerated by Foxit PDF Creator © Foxit Softwarehttp://www.foxitsoftware.com For evaluation only.

Shell Eco-Marathon Asia-2010 Glimpses of Participants




Shell Eco-Marathon Asia-2010

see the report on page 39

Glimpses of Participants



Headquartered in Japan, the HondaCompany has had a long and successfulhistory of making quality cars. TheHonda Technology Research InstituteCompany is the 6th largest automobilemanufacturer in the world and thebiggest engine-builder in the world.Each year, Honda builds more than 14million internal combustion engines.The company builds automobiles,motorcycles, trucks, scooters, robots,jets and jet engines, ATV, water craft,electrical generators, marine engines,lawn and garden equipment, mountainbikes, and aeronautical technologies.In October 1946, Soichiro Hondaestablished the Hon da TechnicalResearch Institute in Hamamatsu,Japan. The goal was to develop and buildsmall 2-cycle motorbike engines. Twoyears later, Honda Motor Company, Ltd.was created. Honda's first US storefrontopened in 1959 in Los An geles.Honda's first production automobilewas the T360 mini pick-up truck. Thefirst production car from Honda was theS500 sports car.

Chronological highlightsof the history of behindHonda cars as reportedby world.honda.cominclude:1963 Honda's first sports car (S500)and l ig ht truck (T360) released.

1966 Sales and export of S800 begin.

1967 Front-wheel-drive minicar, N360,released.

1968 Export of N360 and N600 begin.

1971 Life minicar released.

1972 Civic released.

1976 Accord CVCC (1600cc) released.

1978 Prelude released.

1981 City released. 1985 Today minicarand Legend released. Quint Integrareleased.

1986 Honda expanded into the luxury

automobile market with the creation ofthe Acura brand

19 89 Accord Inspire re lease d.

1990 NS X sports car releas ed.

1992 Worldwide automobile productionreaches 20 million units. 1994 Odysseyreleased.

1995 Worldwide Civic productionreaches 10 million units. CR-V sportsutili ty vehic le released. Worldwideautomobile production reaches 30million units.

1996 Step WGN (Wagon) released.

1999 Honda S2000 sports car released.Lag reat Can adian-made minivanreleased. Insight hybrid released.

2000 Life Almas, first minicar withfeatures for the physically challenged,released. Stream minivan released.

2001 Fit released. Civic Hybrid released.

2003 Honda becomes the firstJapanese automaker to produce 10million cars in the U. S. New Odysseyreleased.

2005 Ridgeline next-generation truckreleased in U.S. American Honda Motorbegins sales of Phill, the first home

refueling appliance for natural gasvehicles. Leasing of FCX fuel cell vehiclefor home use begins. Worldwide salesof Honda hybrid vehicles reached100,000.

2006 Zest unveiled. Performance ofnext-generation fuel-cel l car FCXConcept demonstrated.

2007 Crossroad released.

In August 2008, Honda surpassedChrysler as the 4th largest automobilemanufacturer in the United States.Currently, Honda is the second largestmanufacturer in Japan behind Toyotaand ahead of Nissan.Honda increased global production in

September 2008 to meet demandfor small cars in the U.S. and emergingmarkets. Due to the current global crisis,the company is now rearranging U.S.p roduct ion to kee p op erationsfunctioning, while building fewerminivans and sport utility vehicles.

Honda introduced the second-generation Insight in its homenation of Japan in February2009. The U.S. market received thenew Insight in April 2009. Hondaexpects to sell 200,000 of the vehicleseach year, with half of those sales in theUnited States. Since 2002, Honda hasbeen selling the Honda Civic Hybrid(2003 model) in the US market. It wasfollowed by the Honda Accord Hybrid.The history of Honda Cars has beenfilled with many achievements. With thecurrent economic slow down, Honda ismaking necessary adjustments to itsbusiness structure to ensure its futuresuccess.Formula Honda Toronto offers Hondanew cars, used cars, trucks, SUV's,minivans and commercial cars. Offeringa large inventory of both Honda newand used cars in Toronto and the GTA...

What is the HistoryBehind Honda Cars?

Since 2002, Honda has been selling the Honda Civic Hybrid (2003 model)in the US market. It was followed by the Honda Accord Hybrid.

The history of Honda Cars has been filled with many achievements.

Automotive Industry - Review


70cc Motorcycle

MADE IN PAKISTAN MOTORCYCLESRETAIL PRICE LIST


Retail Price

Rs. 42,500/=

Rs. 38,000/=

Rs. 38,000/=

Rs. 37,000/=

Rs. 38,500/=

Rs. 38,000/=

Rs. 45,300/=

Rs. 38,000/=

Rs. 39,500/=

Rs. 41,000/=

Rs. 36,000/=

Rs. 46,000/=

Rs. 47,000/=

Rs. 41,000/=

Rs. 62,900/=

Rs. 40,000/=

Rs. 38,000/=

Rs. 37,500/=

Rs. 36,500/=

Rs. 38,000/=

Rs. 36,000/=

Rs. 40,000/=

Rs. 42,900/=

Product &

Model Name

Aan AI-70

Asia Hero AH-70

Bionic AS-70

Champion CDI-70

Crown Lifan CRLF-70

Diamond SD-70

Dhoom YD-70

Eagle DG-70

Ghani GI-70

Guangta GT-70

Grace CT-70

Hero RF-70

Hero RF-70 Plus

Habib HB-70

Honda CD-70

Hi-Speed SR-70

Jinan JN-70

Leader LD-70

King Hero KH-70

Moon Star MT-70

Master MD-70

Mehran SD-70

Metro Hi-Tech MR-70

Sr./

No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

Product &

Model Name

New Asia NA-70

Pak Hero PH-70

Ravi Premium R1

Ravi Hamsafar-70

Road Prince RP-70

Royal Star RS-70

Royal RL-70

Racer AS-70

Safari SD-70

Sakai SK-70

Star DL-70

Sohrab JS-70

Sonica SM-70

Stahlco ST-70

Super Asia SA-70

Super Star SS-70

Super Power SP-70

Toyo TG-70

Target TT-70

Unique UD-70

Union Star US-70

United US-70

Zxmco ZX-70

Retail Price

Rs. 38,000/=

Rs. 37,000/=

Rs. 47,000/=

Rs. 43,000/=

Rs. 38,000/=

Rs. 39,000/=

Rs. 42,500/=

Rs. 39,000/=

Rs. 40,000/=

Rs. 39,000/=

Rs. 39,900/=

Rs. 41,500/=

Rs. 42,400/=

Rs. 36,500/=

Rs. 39,500/=

Rs. 39,500/=

Rs. 38,500/=

Rs. 36,500/=

Rs. 38,500/=

Rs. 41,000/=

Rs. 42,000/=

Rs. 38,000/=

Rs. 40,500/=

Sr./No.24.

25.26.27.28.29.30.31.

32.33.34.35.36.37.38.

39.40.41.42.43.44.45.

46.


125cc Motorcycle 100cc MotorcycleBrand & Model Name

Habib HB-125

Sitara ST-125

Ghani GI-125

Hero RF-125

Honda CG-125

Honda CG-125 DX

Metro MR-125

Ravi Storm-125 Euro II

No.

1.

2.

3.

4.

5.

6.

7.

8.

Retail Price

Rs. 88,000/=

Rs. 55,000/=

Rs. 52,500/=

Rs. 75,000/=

Rs. 84,900/=

Rs. 106,900/=

Rs. 55,500/=

Rs. 78,000/=

Brand &Model Name

Asia Hero AH-100

Ghani GI-100

Habib HB-100

Honda CD-100

Sitara ST-100

Super Star SS-100

Super Power SP-100

Unique UD-100

No.

1.

2.

3.

4.

5.

6.

7.

8.

Retail Price

Rs. 46,000/=

Rs. 45,500/=

Rs. 55,000/=

Rs. 69,900/=

Rs. 51,000/=

Rs. 46,000/=

Rs. 45,500/=

Rs. 52,000/=

Sr./

No.

1.

2.

3.

Yamaha MotorcycleProduct &

Model Name

Yamaha YD100

Yamana Yama4

Yamaha YB100 Royale

Retail Price

Rs. 72,200/=

Rs. 68,800/=

Rs. 68,300/=


MADE IN PAKISTAN MOTORCYCLESRETAIL PRICE LIST

Sr./

No.

1.

2.

3.

4.

5.

Suzuki MotorcycleProduct &

Model Name

Suzuki Sprinter ECOSuzuki Sprinter STD.

Suzuki GS-125

Suzuki GS-150Suzuki Shogan

Retail Price

Rs. 65,500/=

Rs. 69,500/=

Rs. 78,500/=

Rs. 84,500/=

Rs. 76,000/=


August 2010 Automark Magazine

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Transcript of August 2010 Automark Magazine