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New Auto Policy 2016-21 is total confusion and failure

Muhammed Hanif Memon
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New Auto Policy 2016-21 is total confusion and failure

The new automotive policy was formally launched in March 2016, it was announced by Mr. Miftah Ismail, Chairman of the Board of Investment. The policy was aimed at enhancing consumer welfare boosting competition and attracting new player, these are all positive objectives / desires. The negative aspect of the policy is that Government tried to penalized the existing players all of them are Japanese well known brands globally and played a significant role in the development of local auto industry.

Unfortunately as a nation, we are not able to visualize frequent global developments and cannot match ourselves with the development speed of the rest of the world as a result we try to control / hide our own shortcoming thru formulation and adoption of polices which are based on biased approach. Our this psychology can also be seen in New Auto Policy 2016-21 but net result is a total failure and confusion.

It was claimed in the policy that it envisages development plans for the automobile industry in the country to facilitation higher volumes, attract investment, ensure enhanced competition and offer high quality in line with emerging opportunities within the country and the region. The prime importance in the policy has been given to the consumer welfare through provision of quality, safety choice and value for money. One of the objectives was that Auto Industry Development Committee AIDC shall also be reorganized on a logical ground.

It was also mentioned / noticed in the policy that at present, customers have to pay the full amount at the time of booking of cars inclusive of duties and taxes where as the cars are delivered to customer after several months. In cars any price escalation should be paid by the customer before taking delivery, the customers are required to pay price as on the date of delivery there is no institutional mechanism to respond to consumer feed back as vehicles manufacturer do not take note of complaints made by a consumer about quality and frequent escalation of car prices. To address this issue in Auto Development Policy certain measures were also included.

Furthermore it was the wish of Board of Investment and Ministry of Industries & Production that well known European car makers should come to Pakistan. In this connection Board of Investment Chairman, Mr. Miftah Ismail himself announced in November 2016, that Renault will start producing vehicle in Pakistan in 2018. He confirmed the French car manufacturer had already submitted its application to the Government for the manufacture of vehicle. The application is now under process at the Board of Investment and the Engineering Development Board. He also informed that this will be first time that a European car manufacture will set up a plant in Pakistan. Even in last year during Eid ul Azha holiday, Finance Minister Ishaq Dar and Mr. Miftah Ismail personally visited France and met the top leadership of Renault. Now there is total silence about the progress of Renault project in Pakistan. As per informed sources Renault feels that New Auto Policy do not offer anything substantial for a new car project in Pakistan and now having no interest in this market. German car maker Audi a company of Volkswagen Group reportedly has approached the Board of Investment with a proposal to start an OEM plant in Pakistan and submitted a letter of intent to the Board of Investment for consideration.

At the same time Volkswagen commercial vehicles is also showed interest to setup a manufacturing / assembly plant in Pakistan. It is learnt that Audi – Volkswagen Group wanted to invest in MKD / SKD (Medium Knocked Down / Semi Knocked Down) model with only assembly in Pakistan. However, that proposal did not match with the criteria for incentives as laid down in auto policy for new entrants.

The most primary objective of the policy was to bring new investment and create healthy competition among the players which tend to be in the benefit of consumer. Almost one and half year has been passed but not a single objective is achieved as yet. On the contrary due to this policy a fresh new investment of about USD 660 million was rolled back by Pak Suzuki Motor Company in March / April 2017.

In December 2016, Pak Suzuki managing director Hirofumi Nagao called on then Finance Minister to discuss his company future investment plan and inform him that Pak Suzuki is ready to invest 660 million in Pakistan to set up a second plant. The new project will be completed within two years and may start production by the end 2018. But nothing was offered to the existing players in New Automotive Policy 2016-21 so Pak Suzuki did not make fresh investment in new plant.

The second failure of the policy was witnessed in the case of Dewan Farooque Motors Limited which has applied for the revival of its car assembly plant and requested for grant of Brownfield Investment under Auto Development Policy for the production of Shahzore (LCV) and Sangyang (SUV’s) vehicles. There was some confusion / reservation of Engineering Development Board about the total period of closure of the DFML assembly plant. The matter was put on the 24th meeting of the Auto Industry Development Committee (AIDC). The committee held a detailed discussion on the application of DFML and unanimously approved the grant of Brownfield status to DFML. But Engineering Development Board refused to implement this approval on the pretext that this approval can be effective only after the suitable amendment in the auto policy but presently no change is possible since it is mentioned in the policy that it can be revised after two years while it is only in its first year of implementation. Resultantly all activities at DFML plant was suspended.

Simultaneously M/s. Al-Haj FAW Motors (Pvt) Ltd, manufacturer of trucks, prime mover, light commercial vehicles and vans had also applied for a Greenfield status to manufacture cars. EDB had sought advice from the committee keeping in view the investment categories i.e Greenfield Investment or Brownfield Investment as provided in the New Auto Policy. The committee was of the view that the policy in the present form and shape had no room for declaring an existing player Greenfield Investment.

Auto Industry Development Committee (AIDC) 25th meeting was held on 18th May 2017. So far it was the last meeting of the Auto Industry Development Committee (AIDC). It seems that Auto Industry Development Committee (AIDC) has no role in implementation / decision taken under the new automotive policy 2016 – 21 by the ministry of industry and production. Although it was mentioned in the auto policy that Auto Industry Development Committee (AIDC) shall continue to play its advisory role. Furthermore in a surprise move Government dissolved the Engineering Development Board for alleged involvement of its staff in corruption and malpractices as hurdles in the way of billions of dollars in investment flows into automobile sector, in June 2017. Engineering Development Board was not promoting industry, it was protecting it. According to Garry Pussell – Ashraf Khan Study out of the 1006 products which Engineering Development Board listed as locally produced 91 percent had only one producer, 405 percent had two producers and only 4 percent had three or more producers. This indicated a highly protective regime that has badly hurt the consumers, particularly in auto sector.

It is observed that after the disbanding of Engineering Development Board and mysterious silence of Auto Industry Development Committee (AIDC) Secretary of Industry and Production and Secretary Board of Investment took direct charge of implementation of New Auto Policy 2016 – 21. They both act very swiftly, which was a very positive sign. They invited all new entrants in a hurriedly called meeting on 6th June 2017 in Islamabad at ministry of Industries and Production office, having no prefixed agenda.

Interestingly the team of engineering Development Board which is supposed to be disband were also present and responding all the question and quarries raised by new entrants. In this meeting the following companies were present.

  1. Cavalier Automotive Corporation (Pvt) Ltd.
  2. Foton JW Auto Park (Pvt) Ltd.
  3. Habib Rafiq (Pvt) Ltd.
  4. Hyundai Nishat Motors (Pvt) Ltd.
  5. Khalid Mushtaq Motors (Pvt) Ltd.
  6. Kia Lucky Motors Pakistan Ltd.
  7. Pak-China Motors (Pvt) Ltd.
  8. Regal Automobile Industries Ltd.
  9. United Motors (Pvt) Ltd.

Subsequently second meeting was also called on 12th July, 2017, In between two meetings. Ministry has granted Greenfield status to the following new entrants.

  1. Kia Lucky Motors Pakistan Ltd.
  2. Hyundai Nishat Motors (Pvt) Ltd.
  3. United Motors (Pvt) Ltd.
  4. Regal Automobile Industries Ltd.

If we analyzed all company’s affairs, very minutely which were granted Greenfield status. We will find a very discouraging situation.

The ministry of industries has awarded Greenfield investment status to Regal Automobile Industries Ltd for establishing its plant in Pakistan. Tayaba Motors has challenged the Greenfield status of Regal Automobiles Industries Ltd in the court of law, claiming it was already manufacturing same variants of pickups and passenger vans.

Master Motors, on the other hand, has challenged the process initiated by the Engineering Development Board to grant Greenfield status to Foton JW Auto Park (Pvt) Ltd under the new policy, which provides attractive tax and duty concessions for new industry players. It argued that Foton JW Auto Park (Pvt) Ltd was already manufacturing trucks and it could not be treated for Greenfield Investment under the new policy. Master Motors further claimed that there was no joint venture with the Chinese company according to records of the Securities and Exchange Commission of Pakistan.

As a result of work on projects being developed by Regal Automobile Industries (Pvt) Ltd and Foton JW Auto Park (Pvt) Ltd had come to a halt due to the court cases.

It is very strange in case of the conflict between Master Motors and Foton JW Auto Park (Pvt) Ltd that Shahnawaz Motors which is one of the oldest automobile trading company in Pakistan, represents Daimler AG Germany and authorized general distributor of Mercedes Benz Passenger Car since 1958, also claim to be an authorized distributor of Foton Motors Group China. Could we understand that New Auto Policy 2016-21 is making back lash. It discourages local assembly and encourages CBU imports because no one is challenging Shahnawaz Motors.

Same case with the Regal Automobile Industries (Pvt) Ltd. they have already established their dealers network and selling vehicle thru CBU Imports. Nobody can make objection on their trading business nobody can stop them but unfortunate they stopped the further establishment of their automobile plant due to court cases. How new auto policy can help them out to start production in Pakistan.

It was also learnt through informed sources that Hyundai Nishat Motors (Pvt) Ltd and Kia Lucky Motors Pakistan Ltd did not sign the new entrant agreement which is a mandatory to be signed between the Government and the investor before the start of plant. The reason being they and their principals, having certain reservation upon this agreement’s contents. Surprisingly Ministry keeps these documents very secrete. In my opinion the draft of this agreement should be public so every new investor should know the bindings / responsibilities before the entry. Furthermore both companies are thinking to import the vehicle in CBU condition again question arises that unknowingly, New Auto Policy 2016 – 21 is pushing the new entrant towards CBU imports rather to attract facilitate them for the early establishment of the assembly plant.

Now only remain the United Motors (Pvt) Ltd who is in high esteem and hopeful that their plant will be ready for the assembly of vehicles by the end of December 2017. According to informed sources situation is not very straight for United Motors (Pvt) Ltd too.

Habib Rafiq (Pvt) Ltd – HRL Motors is among the new entrants but they did not make any tangible progress towards the development of assembly plant. However they unveil their first CBU imported car Zotye Z100 in Pakistan on a very high price tag and without any after sale service or spare parts availability arrangements. I do not think that they have any plan to enter in CKD business in near future. The two other new entrants’ i.e Pak-China Motors (Pvt) Ltd and Cavalier Automotive Corporation (Pvt) Ltd has made very little progress in this direction and they have to go a long way.

However Khalid Mushtaq Motors (Pvt) Ltd is consistently progressing well. It is reported that their assembly plant building is almost complete. They are planning to launch their local product in any time in first quarter of 2018.

By our special correspondence from Lahore and published in Monthly AutoMark Magazine’s September-2017 printed edition

Toyota Launches its Facelifted Altis Grande Car in Pakistan

Muhammed Hanif Memon
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Toyota Launches its Facelifted Altis Grande Car in Pakistan

By:  Syed Sarim Raza

Toyota is the name of confidence, limitless passion and motoring excellence for car enthusiasts in Pakistan. Toyota is one of the most famous car brands in Pakistan and has enjoyed some spectacular sales figures for a large variety of its vehicles in Pakistan over the years. From large sedans in GLi, XLi and Altis to off-roaders in Land Cruiser Prado, Hilux and Fortuner, Toyota has left no stone unturned when it comes to providing a wide variety of vehicles to car buyers in Pakistan.

Toyota has redefined motoring excellencein Pakistan by offering advanced technology in its cars that are available in the market at highly affordable prices. The brand is particularly famous for its stylish sedans in Pakistan, a country where urban cars are the ultimate preference of car buyers. Toyota believes in upgrading its vehicles on a regular basis to meet the evolving standards of automotive industry and with this approach, Toyota has given a facelift to its 2018 Altis Grande in Pakistan. The new and upgraded model is now equipped with more advanced technological features and boasts a superior new design that is clearly a sight to behold.

New Design of Facelifted Toyota Altis Grande

The new design of Altis Grande reveals everything about the innovative mindset of designers at Toyota who have truly crafted a masterpiece in the all-new Altis Grande. The facelifted sedan now has an authoritative stance with a more refined front fascia. The front-end has integrated daytime running lights and a newly designed slim and sleek grille. Bi Beam LED headlights that are being nestled between the stylishly designed front-grille, add more impetus to Grande’s looks and enhance the illumination while consuming lesser power.

Grande’s side mirrors have received a new Auto Reverse Link Mode. This mode is automatically activated when the vehicle is being reversed. The front fog lamps are aesthetically adjusted into the front air diffusers which increase the visibility on the road while driving. The side skirts and mud flaps are of body color and go well with the exquisite design language of the vehicle. There is also a smart trunk opener which opens the truck with the touch of a button. Other advanced featuresintroduced into the facelifted model are the front and back camerasthat particularly help a driver while parking a vehicle. The exterior of the vehicle boastsimproved aerodynamics and advanced technologies for remarkable driving experience.

The interior welcomes the driver and passengers with state-of-the-art features for comfort, entertainment and convenience. Grande has a 3D interior design that depicts sheer luxury and class with soft touch padding, enhanced space and an ergonomic appeal. There is a push start button to start the engine while the steering wheel offers superior control with mounted audioand driving controls. Toyota Grande facelift also features an Optitron Meter which is equipped with 4.2-inch color TFT Display that provides important information to the driver about speed, driving range, fuel consumption and Eco-monitor. The 9-inch dash infotainment system, bucket type front seats and rear reclining seats with split folding are among other convenience features offered inside the cabin of Toyota Grande facelifted model. A sunroof is also available which further adds to the beauty of the interior.

Engine

The engine in the all-mew Grande makes the vehicle one of the most powerful stylish sedans available in the Pakistan’s automotive market. It has a 1.8-litre, 7-speed CVT-i (with paddle shift) engine that produces 138hp and 173Nm of torque. Despite being a luxurious sedan, the advanced engine technologies of Toyota Grande make it a highly fuel-efficient vehicle. It offers a fuel average of 14.8 KM/L. The fuel tank capacity of Toyota Grande facelifted model is 55 L.

Added Safety

Toyota Grande is a modern day vehicle that is loaded with advanced driver-assist and safety technologies to make every ride with this amazing vehicle safer than ever. Toyota has introduced some of the latest safety features in its facelifted model of Grande.

These safety features are:

  • Vehicle Stability Control
  • Traction Control
  • Anti-lock Braking System with EBD and BA
  • Front Seatbelts
  • Dual SRS Airbags
  • ISOFIX Child Seat Anchors

Price and Availability

The all-new Grande is now available in Pakistan. Toyota lovers can buy this absolutely amazing sedan with an updated design in just PKR 2,224,000

Chinese truck manufacture interested in joining hands with Pakistani auto parts makers

Muhammed Hanif Memon
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Chinese truck manufacture interested in joining hands with Pakistani auto parts makers

By Hanif Memon

A high-profile Chinese delegation, representing Sinotruck Limited, visited the Pakistan Association of Auto Parts and Accessories Manufacturers’(PAAPAM) South Office here in Karachi to meet with senior members of the PAAPAM to discuss possible future ventures between the two countries for the manufacturing of trucks and their auto parts.The ten-member strong delegation was led by Mr. Wang from Sinotruck, while the delegation of PAAPAM was led by Chairman Mashood Ali Khan.  Members from Dysin Automobiles Pakistan and Paapam were also present.

Chairman and senior members of PAAPAM briefed their Chinese counterparts about the technologies, resources, and expertise of the Pakistani parts manufacturers in the field of trucks and the production of their auto parts. The Chinese members were also told about the growing auto industry of Pakistan, and how it is already heavily involved in the production of motorcycles, cars, buses, and trucks, and in the production and assembling of their auto parts. Wang  spoke of his desire and interest to utilize Pakistani expertise and labor in the production of auto parts for their trucks. Moreover, he said that they were interested in setting up a production plant for trucks in Pakistan and wants to be involved in successful businesses with Pakistan for years to come.

Members of PAAPAM invited the Chinese members to visit their plants, and to create a link where Pakistani members could visit their Chinese friends and learn from them about the latest technologies and utility of labor.

 

Vehicle registration in the six territories doesn’t match each other

Muhammed Hanif Memon
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Vehicle registration in the six territories doesn’t match each other

In four provinces, different rules for motorcycle registration and vehicle registration exist in federal territories, Islamabad and Azad Jammu Kashmir.

Punjab excels with other provinces where vehicle registration system is operated under the most advanced system.

The authorized dealers of vehicles are authorized to register vehicles or bikes at the time of sale. The dealers have been given permission to register or submit data of vehicle and the buyer in the Punjab Excise and Taxation Department.

In contrast, dealers in Karachi have been asked to make complete application form, CNIC copy of the applicant, authority/registration letter of the assembler in favor of the buyer and sales tax paid invoice by the dealer and by the assembler including pay order of registration charges in favor of motor registering authority of Karachi.

Due to these cumbersome and lengthy processes the buyer and the dealer will have to wait due to half day of Friday and Saturdays and Sundays being the holiday. When the dealers’ representatives or agents go to the MRA Karachi – the officials try to find loop holes and create unnecessary objections. After greasing the palm of the officials – all the problems are solved.

“The Chief Minister of Sindh Syed Murad Ali Shah should take notice over the corruption in MRA Karachi,” chairman Association of Pakistan Motorcycle Assemblers (APMA), Mohammad Sabir Sheikh said.

Contrary to this, he said the Punjab government has fixed the charges or fees on issuance of golden or famous numbers to the buyers of two and four wheelers such as 1111, 5555, 0786, 0110, 6666, 9999 etc.

In Sindh, Sabir claims that the officials take bribe for issuing golden or choice numbers. These officials are misusing their powers and the higher ups in the Sindh government are watching the situation from the sidelines.

If a bike is produced by Pak Suzuki Motor Company or by Atlas Honda Limited and this bike is invoiced in up country then MRA Karachi demands Rs 2,000 per bike (extra money) by saying that this invoice does not belong to Karachi district.

The tax officials are cashing on soaring demand of choice or golden number from the buyers. Bike owners like to have a special or unique numbers in which golden number or number of equal digits is gaining popularity.

The opportunity of getting golden number has become a source of handsome earning for the brokers of excise and taxation department and the officials of the government departments. These officials and brokers are taking heavy bribes from the impatient customers.

Sources said numbers like 5555 and 1111 are being allotted after paying bribe of Rs 5,000 to Rs 10,000 to the brokers and officials.

They said the game of money making has been in vogue as the government has not fixed any fees or amount for obtaining golden or choice numbers, sources said adding that the brokers and excise officials are taking full advantage of non availability of any official fee or amount of choice numbers.

In the last one month some 30,000 register numbers were given to the bike buyers. There are 10,000 numbers in one series of bike and other vehicles in which nine golden identical numbers exist like 6666, 9999 etc which are being allotted to the buyers by the dealers in connivance with the excise and taxation officials, sources added.

In Karachi around 1,400 bikes are being registered daily in the government department which means that in the 22 days some 36 golden or choice numbers were issued after exchange of heavy bribe between the dealers, buyers and the government officials, sources said.

The golden or choice numbers for religious buyers are different like 0786, 0110 etc which are also in high demand as compared to other golden numbers.

Numbers in pairs like 6262-5252 are also famous on which bribe rate hovers between Rs 1,000-1,500 per buyer.

Sabir said the Sindh government in the current fiscal year has increased the fee for duplicate registration book to Rs 2,000 from Rs 500.

He said the CM Sindh Syed Murad Ali Shah should see the possibility by officially fixing a reasonable fee or amount for golden or choice numbers so that the practice of charging illegal fee should be curbed. He said fixing a fee or amount below the bribe rate would definitely bring additional revenues to the government’s coffers besides controlling the menace of bribe.

He said the excise and taxation department was already getting more revenues due to surging registration of bikes and other vehicles. Fixing a reasonable fee for choice and golden numbers would further boost government’s earning.

Some leading brands are enjoying boom period of bike sales in which Atlas Honda Limited has beaten all the assemblers by achieving record sale of 960,105 units in the country during 2016-2017 as compared to 811,034 in 2015-2016.

A Chinese bike assembler – United Motorcycle, has emerged as the second highest bike sellers, posting record sale of 326,298 units in 2016-2017 as compared to 262,773 units while Road Prince has sold 207,244 units versus 167,241 units in 2015-2016.

The new fiscal year will bring new sales laurels for Atlas Honda which aims to sell more bikes than 2016-2017 for which it has already raised its combined plant capacity to 1.3 million units per year.

Bike demand has emerged due to improving law and order situation in the country especially in Karachi and improving farm income.

According to the annual report of Atlas Honda Limited 2017, enhanced economic fundamentals, better security situation and increasing real incomes reflected in rising demand of consumers’ durables including two-wheelers. A strong consumer appetite for bikes in both urban and rural areas was the major growth driver. Low petrol prices, higher trend of urbanization and demographic shift to youth also supported the demand of two-wheelers.

Sabir Sheikh said another trend among young generation is the usage of heavy bikes which are being imported. Bike assemblers are also importing little quantity of heavy bikes. As a result the import bill of bike imports went up 1.5pc to three million dollars in 2016-2017 from $2.945 million in 2015-2016.

Local Chinese bike assemblers have started introducing heavy bikes for the last one and half years though they look like toys and cannot match with the quality of Japanese products.

Omega Industries, the assembler of Road Prince motorcycle bikes, had introduced RX-130, 250cc recently with a price tag of Rs 400,000.

Super Power had unveiled 200cc bike at a price of Rs 200,000 followed by ZXMCO 250cc price of 2,45,00 and Ravi 150cc etc.

Sabir Sheikh said a new trend is emerging of rolling out over 125cc heavy bikes based on majority of imported parts but so far the consumers have shown lukewarm response due to high prices. The assemblers will have to improve their quality to match with Honda 150cc which was recently introduced at an attractive price. Honda 150cc would give tough time to the Chinese competitors because of its quality and price, APMA chief added.

“One thing has proven so far that these 150-250cc bikes are not for low and middle income group people. A well off young generation can afford these bikes,” he said.

To encourage competition among assemblers and bringing down price of heavy bikes, Sabir said the government needs to simplify the procedure of obtaining permission for parts imports which is currently lengthy and cumbersome.

People are taking time to adjust with heavy bikes. They had shown tremendous response to Suzuki 150cc but later shifted to other brands. Honda 150cc may prove a game changer in the heavy bike category, he said.

Yamaha came with a fanfare but it is now struggling for its survival. The company closes its financial year 2016-2017 on a depressing note with sale of 13,282 units as compared 16,109 units in 2015-2016.

Pak Suzuki bikes slightly came out from the red by recording slight jump in sales to 18,478 units in 2016-2017 from 17,456 units in 2015-2016.

This exclusive article on auto sector of Pakistan, published in Monthly AutoMark Magazine’s August-2017 printed edition.

ZhongTong intercity Bus launched in Pakistan by Dysin Automobiles Limited

Muhammed Hanif Memon
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ZhongTong intercity Bus launched in Pakistan by Dysin Automobiles Limited

The Future of buses in Pakistan

Dysin Automobiles Limited, one of the most rapidly growing automotive companies in Pakistan, has launched the Zhongtong Intercity Bus in a glittering ceremony held in Lahore.  Dysin Automobiles Limited is renowned for its value added services and successful representation of Sino Trucks in Pakistan.

The ceremony was attended by CEO Dysin Automobiles Imran Malik, COO Mir Asad Waseem, Director Sardar Jawaid Durrani, Head of Sales & Marketing Ahmed Sana Zaidi, Project Manager Rehan Raheem Bhatti, and Marketing Manager Muhammad Umar Irshad. The Chief Guest was SardarQaiser Abbas Khan Magsi, Chairman Standing Committee Transport, Punjab.

The Zhong Tong Bus has been tested extensively globally to conform to the benchmark of quality and performance of other such buses being used across the globe. Dysin Automobiles has selected two variants, Elegance and Navigator, for the Pakistani market.

The bus is a symbol of high quality, performance, style, elegance, comfort, and financial value for local business partners and also for the users. Integrated with craftsmanship of Chinese excellence and leverage of European technology, the bus is an ideal solution in every aspect with low cost of ownership. Dysin Automobile hopes that the product will prove to become an indispensable asset for transporters.

Zhongtong Bus is ranked in the top three best-selling buses manufactured in China, with more than 25,000 unit sales annually. The bus is manufactured in a state-of-the-art assembling facility in Jinan, with Zhongtong being a symbol of technology, performance, innovation, and economic value within China and overseas markets.

 

FAW Motors launch V2 – A locally assembled hatchback car in Pakistan

Muhammed Hanif Memon
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FAW Motors launch V2 – A locally assembled hatchback car in Pakistan

FAW announced the launch of local assembly of their passenger car, FAW V2, in an event held on 12th August, 2017 in Karachi

FAW V2 is the first Chinese passenger car to be assembled in Pakistan. The Managing Director of the company, Mr. Bilal Afridi hosted the event, which was attended by all of their nationwide dealers and vendors.

FAW is the fastest growing Chinese automotive company formed in collaboration with Al-Haj in 2007. The 50,000-sq. m factory of 600+ employees is built on 105,000-sq. m land with a capacity of 10,000 units pa/single shift.

Mr. Bilal Afridi mentioned in his speech about the initial investment of 2.5 billion Rupees made to set up the company and a further investment of 1.3 billion Rupees for an improved local assembly setup and ED Paint technology in their cars.

He talked about the commitment of his company to continuous advancement in technology, premium 3S customer service and dealership network, in all major cities of Pakistan in addition to 3 years/60,000km warranty.

FAW claims that their local assembly will help them serve its customers better and give them quality assurance of the vehicles. The company aims to increase their production to 15,000 units per annum by year 2020 and introduce new models in Pakistan.

The V2 hatchback with 1300cc engine is currently being imported as Completely Built Unit (CBU). Introduced in our market in 2014, the V2 has gained a satisfactory reputation among the consumers and the demand is steadily on the rise.

The company started its operation here in Pakistan with 7 acres land and now is proud to have an operating land of 27 acres. This shows the commitment of the company & is definitely not among those who come & leave.

“Our vehicles bring another category in the market where we provide luxury features of a car at affordable prices. We are now being recognized for quality, economy and technological brilliance. Our products ranging from heavy vehicles to light vehicles cater every need of our commercial and domestic sector and we are rapidly gaining people’s trust.”

He further stated: “As a result of good response and with encouragement of our customers, we have further invested rupees 1.3 billion in new assembling process and ED paint technology to improve our V2 with local assembly right here in Pakistan.”

A locally assembled V2 would likely mean lower prices compared to the CBU while a lower displacement engine would also ease out buyers in taxation & registration costs.  V2 is probably the most fuel efficient 1.3L car available on Pakistani roads. The current in-city average is about 15-16km, and on highways it reaches 18km in a liter. By end of 2017, Al-Haj FAW expects to produce 500 V2 units a month. We Have further plans to export our right hand drive cars in China and other international markets.

About Al-Haj:

The very first ‘Al-Haj’ companies was launched in 1960 by Late Haji Sakhi Gul at Jumrud Khyber Agency in District Peshawar, with their initial business in trading of Tires, Textiles, electronic goods, Logistics & Leasing. Now company expands its business to Assembling of HCV, LCV & Passenger Vehicles, Import of Passenger vehicles, Real Estate, Oil Exploration & Al-Haj Foundry. The Group is in the process of continuous growth under the able guidance of Mr. Haji Shah Jee Gul Afridi, the Chairman of the Group.

About FAW:

FAW “First Automobile Works” was founded in Changchun on 9 th June 1953 by Chairman Mao Zedong. In 1992, the name “First Automobile Works” was changed to “China FAW Group Corporation”. FAW Group is a global leader in vehicle manufacturing industry with more than 60 year history of innovation. FAW has a state-of-the-art government-certified engineering development and test centre. – PR

Automark Magazine July 2017

Muhammed Hanif Memon
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Automark Magazine July 2017

Florida No-Fault Auto Insurance Explained

Muhammed Hanif Memon
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Florida No-Fault Auto Insurance Explained

Florida No-Fault Auto Insurance Explained

In 1972, Florida responded to what was seen as a crisis in insurance rates and excessive lawsuits by becoming one of the first states to adopt a new form of automobile insurance. The system, known as no-fault insurance or personal injury protection (PIP), was a trade-off: While the victims of car crashes would be guaranteed coverage of medical expenses, they would also lose their right to sue for other damages.

While many view the no-fault system as a success, many others see it as a failure. To understand how the system should be evaluated, it’s important to know how it actually works—and why. Some aspects of the no-fault system are obvious and work just like other insurance plans, but other parts of it can be counterintuitive and require explanation.

 

How Does No-Fault Work?

In a no-fault system, all drivers are required to carry a minimum amount of insurance coverage. In Florida, the coverage requirement includes $10,000 each for bodily injury liability, property damage liability, and PIP.

When a driver is involved in a crash, these amounts become available to pay for medical expenses and repairs and will be paid automatically; determining which driver caused the crash and how much responsibility each driver bears is not necessary.

With traditional insurance, damage claim amounts are paid by the insurance company of the at-fault driver, often only after a settlement or lawsuit. With no-fault, however, it is actually the injured driver’s own insurance company that pays him; each driver is actually insuring himself against the possibility of being injured in a crash by his or her own actions or those of another. The only way a no-fault system can really work is by taking advantage of these two ideas: All drivers have the required insurance, and all drivers are, in effect, self-insured.

 

The Pros

No-fault insurance brings concrete benefits. In Florida, these benefits include the following:

  • Victims can recover up to $10,000 in medical benefits almost immediately after a crash injury.
  • If an injury results in temporary or permanent disability, lost wages and income are covered.
  • Victims don’t have to go to court to receive benefits.
  • If someone is killed in a crash, a death benefit is paid to the estate or survivors.
  • Drivers in less serious crashes know they won’t be sued.

 

The Cons

No-fault insurance isn’t perfect, however. In Florida, critics often cite these limitations:

  • Only 80 percent of medical expenses are covered.
  • Only 60 percent of lost wages and income are covered if an injury leaves the victim unable to work—temporarily or permanently.
  • The death benefit is only $5,000.
  • Non-drivers, such as bicyclists and pedestrians, will not usually have no-fault auto insurance and have no protection when they are injured in a crash. (Remember: The victim’s own insurance company pays.)
  • Coverage can cost slightly more. In Florida, the amount might average between $9 and $81 more per year, based on various factors.
  • Victims can’t sue for non-monetary damages like emotional distress.

 

The Future of No-Fault in Florida

No-fault insurance was implemented in at least 24 states in the early 1970s, and 12 still have it today. When no-fault has been declared a failure and repealed, it’s usually been because coverage limits have been too low to provide adequate protection. When coverage is higher, states usually keep it.

For example, in Michigan, which has the highest no-fault limits of any state, voters have repeatedly chosen to keep the system, despite having the most expensive insurance rates in the nation. They seem to understand that, even though it’s costing them, the alternative would be worse.

Most years, there’s talk of repealing no-fault in Florida. In 2017, bills that would have done away with no-fault insurance were introduced in both houses of the legislature. While it at first appeared that the bills might become law, they eventually died in committee at the end of the session.

If you need to know more about no-fault auto insurance, a personal injury lawyer in Florida can help you. Lavent Law practices automobile accident law in South Florida and can help you understand the system.

Pak Suzuki decreased the Price of Heavy Bike Inazuma GW250?

Muhammed Hanif Memon
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Pak Suzuki decreased the Price of Heavy Bike Inazuma GW250?

Though Pak Suzuki has not released any information on why the price of Inazuma has been decreased, the speculations are being made on social media and among the stakeholders including dealers, customers and other experts of the industry about this sudden decrease in the price of Inazuma 250cc bike.

Listed below could be the three major reasons for such a significant decline in the price of Inazuma by Pak Suzuki:

  • Pak Suzuki is looking to make bigger strides into the heavy bikes market of Pakistan by offering one of a kind, 250cc bike in Inazuma at a low price. In this way, the company is trying to win the trust of customers so that it can establish a strong customerbase before Honda launches a similar bike in the market. According to market sources, Honda is also planning to launch its 250cc heavy bike in the Pakistan soon.
  • Another reason could be the fact that Pak Suzuki is looking to acquire maximum orders for heavy bikes from different provincial governmentsand the federal government. The increase in the demand for heavy bikes at Government level has cut down the cost on the assembly of heavy bikes significantly, which is why Pak Suzuki has possibly decreased the price of Inazuma.
  • Another big reason is the competition faced by Pak Suzuki from few Chinese brands that has already given a wakeup call to Suzuki by getting a positive response from customers in the Pakistan market.

As per market sources, Pak Suzuki could  manage to sell almost 100 units of its heavy bike Inazuma in  year, which has also made the company think of ways to promote the sales of its heavy bike and decreasing the price of Inazuma is a logical step in that direction. Fans of Suzuki Inazuma and the interested buyers can expect a major decrease in the price of this heavy bike.

According to a letter for All Pak Suzuki authorized dealers from Pak Suzuki for the announcement of price reduction in Suzuki Inazuma GW250 leaked on social media, the dealership price of the heavy bike Inazuma GW250 has been decreased from PKR 681,000 to PKR 599,000. Dealership price is mostly lower than the market price of a vehicle and customers are usually not made aware of the difference between the market price and dealership price. But now, as the new dealership price has been leaked on social media, customer may demand the heavy bike to be sold in the market at the same price that is announced for dealers without any additional charges.

Will the social media leak of the new dealership price benefit customers?

The heavy bike Inazuma was earlier available in the market at a price of PKR 725,000 which is now set to decrease considerably, especially after the leaked dealership price on social media. It has been speculated that after the social media leak of the press release, dealers will have to offer the bike in the market without earning any significant profit against the market price. The loss of dealers will have to be compensated by Pak Suzuki to retain the trust of its customers and maintain its reputation among dealerships in Pakistan. This will eventually benefit the customers who will expectedly experience a considerable decline in the market price of Inazuma.

The Suzuki GW250 is a 248CC entry-level standard motorcycle sold in Australia, Asia and Europe. It is called the Inazuma 250 in the EU and the GSR250 in Japan. Wikipedia

Seat height: 780 mm (30.7 in)

Oil capacity: 2.1 L (0.6 US gal)

Fuel capacity: 13.3 L (3.5 US gal)

Bore / stroke: 53.5 mm × 55.2 mm (2.1 in × 2.2 in)

Dimensions: L: 2,145 mm (84.4 in); W: 760 mm (29.9 in); H: 1,075 mm (42.3 in)

Weight: 170 kg (374.8 lb) (dry)

Engine: 248 cc (15.1 cu in), 4-stroke, inline-twin, liquid-cooled, SOHC

By: Syed Sarim Raza

NED students win ‘Breakthrough Award’ at Formula Student 2017

Muhammed Hanif Memon
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NED students win ‘Breakthrough Award’ at Formula Student 2017

A group of young engineering students from NED University of Engineering and Technology has won “Breakthrough Award” at Formula Student UK’s 30th competition at Silver stone.

Fusion NED, a student racing team representing NED University of Engineering and Technology, consisted of 16 students who paid their own expenses to take part in the competition which was attended by young engineers from 68 countries, run by the Institution of Mechanical Engineers – the world’s largest student motorsport event for student engineers to design, build and race single-seat racing cars.

NED’s Team Formula Fusion consisted of 16 engineering students, namely: Humza Yamin (team leader), Mujtaba Raza, Faisal Sattar. Saroosh Ahmed, Abdul Samad, Arham Ali, Ali Abdullah, Rahul, Ahmad Shafiq, Immad Naveed, Hasan Ishaque, Ahmed Velmi, Zeeshan, Moiz and Rameez.

The team toiled for two years with sleepless nights, dedicating all their time and money and even their earnings for the passionate goal of making a name for Pakistan on the international forum. The team built an outstanding formula student car that competed with 85 leading international engineering universities from 65 countries. The team secured “Breakthrough Award” which has been introduced for the very first time in this mega competition.

The young Pakistani engineering students not only managed to secure extensive appreciation from renowned judges of motor sports but also received appreciation momento of a BMW F1 aerodynamic part from F1 specialist William Toet.

The team participated in the coveted event for four days. Despite the hindrances and setbacks, the team persevered even though this was their first entry in the competition. In the end, the team made its mark at the prestigious Silverstone Circuit and received its Award surrounded by the chants of “Pakistan Zindabad”.

Speaking to media, the students said they had no help from anyone but they were determined to make it to the event to show that Pakistanis are innovative and talented and they are making advances in the field of technology. They said that dozens of Formula Student alumni have progressed to Formula 1 and hundreds more are now working at the world’s largest automotive firms. The students added they had to get loans from family members to import parts of the car but thanked Pakistan International Airlines (PIA) for helping to cargo the racing car for free to Britain.

Pakistani team’s car made it to the event after the start of the event because clearance at the taxation department was delayed for two days, but the students were able to demonstrate before the judges and international students how they had assembled and prepared the car in Karachi. The students shared that it was a joy for them to represent Pakistan at the world stage. They appealed to the government of Pakistan to help students who want to make it big at the international stage but lack resources.

Andrew Deakin, Chairman of Formula Student, said in a statement: “It’s brilliant to see so many teams from around the world applying for Formula Student 2017 – it shows that the competition remains one of the most important learning experiences for those aiming to combine their studies with exposure to a real world engineering project. Formula Student is a global competition and we want to continue to encourage brilliant young engineers from across the globe to improve their practical skills and get ready to play their part in the vibrant worldwide engineering community. The innovation demonstrated by these young engineers gets more impressive every time and I’m extremely excited to see what they have in store for us this year.”

Congratulations team NED Formula

 

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