Automark

Middle East and Africa’s largest automotive aftermarket trade show attracts 30,835 visitors from 130 countries

Dubai, UAE: The unrelenting momentum of Automechanika Dubai continues to gather pace with no signs of slowing down, as visitors to the three-day event passed the 30,000 mark for the first time in its illustrious 13 year history.

A total of 30,835 trade buyers from 130 countries passed through the 2015 edition of the Middle East and Africa’s largest automotive aftermarket trade fair, a seven per cent increase over the previous year, according to organiser Messe Frankfurt Middle East.

With 1,889 exhibitors from 59 countries occupying 17 per cent more space than in 2014, Automechanika Dubai 2015 concluded on 4 June at the Dubai International Convention and Exhibition Centre with more international and local representation than ever before.

The increasing global interest in the wider region’s automotive aftermarket also comes as Dubai Customs released figures showing Dubai’s trade for auto parts and accessories was valued at US$12 billion in 2014, 10 per cent more than in 2013.

That figure includes imports of auto parts, accessories, tyres, and engine components worth US$7 billion last year, while exports and re-exports were worth US$5 billion, reinforcing Dubai’s premier status as a major liaison between Asian, European and North American manufacturing countries and consuming regional markets.
Ahmed Pauwels, CEO of Messe Frankfurt Middle East, said: “The double-digit growth of Dubai’s auto parts trade underlines the Emirate’s important role as a key gateway to emerging markets throughout the world.”

“This growth goes hand-in-hand with Automechanika Dubai, which is the wider region’s only dedicated trade platform where the entire global automotive aftermarket community converges for three busy days to expand their presence and business networks not only in the Middle East and Africa, but also the subcontinent and CIS.”

New product launches, partnerships, distribution agreements, and manufacturing facility announcements by leading global majors and local players alike were the norm at Automechanika Dubai 2015.

At the forefront of new announcements was the show’s Headline Sponsor and UAE-based ENOC, which opened a 5,000sqm lubricants and grease manufacturing plant in Dubai to complement its existing facility in Fujairah.

According to Mohammed El Sadek, Director of ENOC’s Lubricant Division, the two plants have a total production capacity of 300,000 metric tonnes annually, most of which is exported to more than 60 countries.

“The UAE is the Middle East’s largest hub for manufacturing of lubricants, manufacturing close to 1.5 million metric tonnes annually,” said El Sadek. “Only 200,000mt is used domestically, so there’s around 1.3 million metric tonnes exported throughout the region as well as into Asia, South East Asia, Africa, and the sub-continent.

“There is huge potential to build on this business especially for export and Automechanika Dubai gives us the platform to expand into new markets where we are not yet present,” added El Sadek.

“If we look at the mix of visitors to Automechanika Dubai, we are looking at more than 100 countries, and a lot of these countries we still don’t have business in so it’s important to be here.”

Automechanika Dubai focuses on six product sections of Parts & Components and Systems and Electronics (1,340 exhibitors in 2015), Tyres & Batteries (190 exhibitors), Accessories & Tuning (166 exhibitors), Repair & Maintenance (109 exhibitors), and Service Station & Car Wash (84 exhibitors).

The largest section, Parts & Components and Systems & Electronics, spanned more than 41,000sqm of exhibition space alone, and was packed with biggest names of the international automotive aftermarket.

Among these was Belgian-headquartered WABCO, a world-leading supplier of electronic braking, stability, suspension and transmission automation systems for heavy duty commercial vehicles.

Sherif El-Sheikh, Regional Leader for the Middle East and Africa, WABCO Trailer Systems, Aftermarket and Off-Highway Division, said the region presented major growth opportunities for the automotive sector.

“The Middle East continues to close the gap to advanced safety and efficiency technologies more common in developed markets,” said El-Sheikh. “Therefore, we see it as a glass half full because it means there are more opportunities to introduce the latest innovations that have already been around in mature markets.”

“Now is the perfect time to do business in the Middle East and Africa and most of the main players in the commercial vehicle industry are exhibiting at Automechanika Dubai showing off their capabilities. There’s a good reason behind that and that’s because many industry experts are expecting this market to grow for many years to come.”

Among the more innovative product launches at Automechanika Dubai 2015 was Irish company No-H2O’s waterless carwash solutions. No-H2O signed a partnership agreement with Central Trading Company (CTC) – part of the Al Rostamani Group – at Automechanika Dubai. The deal, which is expected to exceed AED10 million, will see CTC take on the role of master franchisee and act as the exclusive distributor for No-H2O in the UAE.
“We’re revolutionising the UAE car market by introducing No-H2O and we will continue to satisfy our valuable customers and exceed their expectations,” said Mohammed Aqel, General Manager of Central Trading Company.

“This region is faced with a lot of water consumption issues and No-H2O supports the growing need to preserve water and reduce waste. All No-H2O products are biodegradable and eco-friendly, using the latest waterless technology on the market today. No-H2O is also the only product of its kind approved for use on commercial aircraft such as Boeing and Airbus, so it’s highly accredited.”

Automechanika Dubai is the definitive must-attend trade show for the wider region’s automotive aftermarket, and has in recent years attracted a growing number of African visitors looking for suppliers of genuine parts, accessories, and components.

More than 3,000 trade buyers from the world’s second largest continent stopped by Automechanika Dubai 2015, including Nigerian Engineer Tunde Koiki, CEO of Teekay Service Centre, who has visited the show for the past six years.

“Every year there’s something I want to achieve at Automechanika Dubai,” said Koiki. “This year my target is to meet manufacturers and establish partnerships in Nigeria where there is a strong demand right now for genuine parts.

“I can meet suppliers one-on-one and can and buy from them directly. Having genuine parts sourced at Automechanika Dubai has helped my business grow so far, and I’m sure that will be the same for any Nigerian car parts dealer.”

As the dust settles on another record-breaking show, the wheels are already in motion for Automechanika Dubai 2016. The 14th edition will take place from 8-10 May 2016 at the Dubai International Convention and Exhibition Centre, a month earlier than its usual dates to accommodate the Holy month of Ramadan.

Bike Dealers charging Premium for New Model, Decades Old Bikes Still In Production, Earlier Yamaha resumes assembly in Pakistan, New Investment.
Some dealers are charging “premium or on money” on spot sale of newly launched locally assembled Japanese bike as buyers cannot buy it at company’s fixed price.
The new Yamaha 125cc was introduced in the last week of April, but some authorised dealers at Akbar Road, Karachi’s main motorbike market and big cities, after running out of stocks were insisting buyers to book the bike which would be delivered either after 12 days or in the first week of June.
However other dealers having stocks were demanding Rs135,000 for on spot sale as against the company’s price of Rs129,400 and another Rs4,000 for registration and lifetime tax.
It is very clear that the assembler has not deliberately cut down the production to check the buyers’ response or it couldn’t able to meet the unprecedented demand. Unfortunately assembler did not have any idea of good response from the buyers for giving CKD orders for future production.
Dealers said despite higher bike snatching/stealing cases in Karachi the response was good. Buyers usually go wild whenever new bikes find way into the market. The demand and supply gap becomes more alarming when impatient consumers from the rural areas also throng the authorised showrooms in large numbers to lift the bike at any price.
Such phenomenon of “on money or premium” is well-known for the new models of locally assembled cars. Bike dealers said that people had actually become sick of using decades-old models of 70cc bikes and were now trying to shift their focus towards over 100cc bikes due to better comfort level, fuel efficient engines and impressive designs.
They said it is too early to predict future sales scenario of Honda and Suzuki but some dealers were of the view that Yamaha may give tough time to its rivals. The main reason is that other two Japanese assemblers marketing decades old models.
Meanwhile, sales of Honda bikes during July-April 2014-15 slightly fell to 526,327 units from 535,078 units in same period last fiscal year. However Honda sales in April 2015 went up to 61,488 units from 53,030 units in March 2015.
Suzuki motorcycle sales plunged to 18,743 units in the first 10 months of this fiscal year as compared to 20,176 units in the same period last fiscal year. Suzuki’s sales in April 2015 crawled up to 2,075 units from 2,007 units in March 2015.
Import of completely knocked down kits and semi knocked down kits (CKDs/SKDs) for assembly of overall bikes rose by 22 per cent to $64 million in July-March 2014-15 from $52.5 million in same period last fiscal year.
Earlier in the month of April 2015, the new investment made by Yamaha will create jobs and bring new technologies,” said Yamaha Motor Company President Hiroyuki Yanagi, adding that, “Pakistan is all set to become one of the top global markets of motorcycles.
Addressing the inaugural ceremony at Port Qasim Industrial Zone, he appreciated the role of the federal government in helping the company set up the plant.
Yamaha Motor Pakistan (Pvt.) Ltd, a newly formed company with 100% equity from Yamaha Motor Company, Japan, is expected to produce 30,000 units in year 2015.
The factory has been established with an initial investment of Rs5.3 billion and its current production capacity is 40,000 units per year. It has hired 200 employees in the first phase. Ishaq Dar speaks.
Finance Minister Ishaq Dar, present on the occasion, said the event is not only historic for Yamaha but also special for the government as it had been looking forward to witnessing this inauguration for the last two years. “The federal government is aggressively looking for Foreign Direct Investment (FDI) because the future of Pakistan lies in it, especially in the manufacturing sector,” he said.
Talking about foreign investors’ concerns, he said, “The government is ready to help in providing additional security in any of the provinces.”
He hoped that Yamaha will get a good response in Pakistan because of the growing demand of motorcycles in the country. “The middle class in Pakistan is growing and people want quality motorcycles,” he added.
In its initial phase, the company has introduced the “YBR125” model, a 125cc engine motorcycle, with a network of 140 dealerships in different parts of the country. Equipped with new technology, industry analysts say the initial price of YBR125 (Rs129,400) is competitive enough for its rival models in the market. Pak Suzuki’s GS150 is available in Rs128,500 while Atlas Honda’s CG125 and CG125 Deluxe is available in Rs102,900 and Rs124,000, respectively.
Japanese Ambassador to Pakistan Hiroshi Inomata said that the presence of the top leadership of Pakistan in the inauguration ceremony signifies the importance of the investment Yamaha has brought into Pakistan.
“We appreciate the efforts of the government of Pakistan in bringing FDI in the country. We believe this is a win-win situation for both Japan and Pakistan,” Inomata added.
Board of Investment Chairman Dr Miftah Ismail said the middle class of Pakistan was growing at a rapid pace. From the current level of 70 million, it will touch 100 million by 2025, making Pakistan one of the top six countries with the largest middle class in the world, he added. Decades old cars, bikes still in production in Pakistan
Pakistan auto industry has been well established for the last 50 years. Around 20-25 years back, India and China were far behind than Pakistan. Because of mediocre policies, greedy rulers, bureaucracy and their hollow vision of policy making, Pakistan looks 100 years back than India and china especially in auto sector.
Many brand names still exist but their models, body shapes and engines have been completely changed decades back by manufacturers in Japan to beat competition, match technological leaps and meet emission standards.
There is no Honda CD-70cc in the world as Pakistan is the sole assembler. More than 100 assemblers are rolling out the same 70cc model with their own brand names. The government of Pakistan introduced tariff based system in 2006 for introduction of new bike models but all the assemblers were literally failed in bringing new models. Said Muhammad Sabir Shaikh, Chairman Association of Pakistan Motorcycle Assemblers (APMA).
India is producing over 100cc bikes of Euro III and Euro IV fuel efficient engines while in Pakistan the manufacture of Honda 70cc had added Euro II facility in decades old CD-70 bike in 2012.
The price of CD 70cc produced by Atlas Honda Pakistan is about Rs. 63,500, while CG-125 sells at Rs.103,000. Honda CD-70 model had inspired Chinese bike assemblers to introduce the same model at a price of Rs.37,000-40,000.
It is not clear why the Japanese bike assembler chooses to keep redundant 70cc model in Pakistan and which formula is being used to determine its price. The assembler claims to have achieved over 94 per cent indigenisation including engine parts in CD-70cc bike. Same is the case with a particular model of Honda CG-125cc. By 2002, the deletion level reached 87 and 80pc in CD-70 and CG-125.
Honda CD-70cc bike has been in production since 1973. The company made overall change in model in 1993. Muhammad Sabir Shaikh, Chairman Association of Pakistan Motorcycle Assemblers (APMA) said that actually CD 70 is not original CD 70 but actually it is CD 90 or JH 90 of Japan and China.
Atlas Honda then changed its 70 CC and 125 CC Engines in to Euro II model in 2012. The local production of CG-125 got underway in 1981-1982 followed by a big engine change in same model in 1993 and then it was transformed into Euro II in 2012.
In over 20 years this bike should have been “Made in Pakistan bike” but this has not happened as its price is jacked up when yen gains value nullifying the claim of localisation. Atlas Honda produced overall 68,637 bikes in 1996-1997 and its production swelled to 639,066 units in 2013-14.
Honda Japan has given exclusive rights to Atlas Honda for manufacturing of CD-70cc and CG-125 in Pakistan and also for their exports to various countries like Sri Lanka, Bangladesh, Afghanistan etc.
There was no formula to phase out the model. “As long as there is demand we do not feel the need for change in the model.”
Sabir shaikh said 70cc and 125cc bikes from China can be imported at $250 and $350, respectively. But they cost dearly here after paying duties and taxes.
Since the PML-N took came into power in May 2013, around 2 years have passed and the government had yet to announce a new auto policy on which Khawaja Asif, convenor was assigned the task to prepare the new auto industry policy draft by taking stakeholders into confidence for submission to the ECC.
Due to delay in AIP, smuggling of auto parts is thriving for the industry and after market and many assemblers have put on hold their local investment plans.
Sabir Shaikh said after the launch of YAMAHA YBR 125 the customers are eagerly awaiting for new models of two wheelers especially in more than 150cc as people are tired of plying 70cc bikes.
He said new models can only be brought in the market when the government will make industry friendly policies by giving relief in local taxes and customs duty on import of spare parts.
He said for the last two years, sales of Honda 125cc, Suzuki 150cc and few Chinese 100cc and 125cc models have shown positive growth. Response of YAMAHA YBR-125 is also very positive. Regular users of 70cc are shifting their focus on high engine power bikes as they are also fuel efficient. In case petrol prices come down in future the sale of high engine power bikes will swell sharply, Sabir said.
This exclusive article published in Monthly AutoMark Magazine’s June-2015 printed edition.

By Shahzad Tabish
It has been a year since PSMCL introduced Wagon-R in Pakistan and brought with it the concept of very first locally produced “Kei” car in Pakistan. In Japan, the Kei car concept was introduced keeping in mind the concept of cars being light & economical yet not compromising the practicality and space for owner’s utility. Today on roads we see a lot of small imported Japanese cars, all belonging to the came Kei car concept. Having a close observation of Wagon-R reveals that the car delivers what it promises.
The roof of the car is very tall, much to the annoyance of our consumers who are much fond of sleek looking hatchbacks, but a thoughtful person would understand the fact that in order to enhance the practicality of the vehicle the overall height of the vehicle is kept elevated, enhancing the volume inside the vehicle, enabling to stuff it with suitcases and luggage, So you would definitely be appreciating it on your way to; or from Airport/Railway station.
It’s heard that some eyebrows have been raised at the instability of the vehicle when executing high speed turns. We need to ask a questing in this regard to understand the fact. The family hatchback is meant to be practical and not a Formula 1 open wheeler instead, which resists body roll in high G turns, so the same applies to the Wagon-R. Well who needs a car requiring high speed turns in the first place when the car can accelerate effortlessly after the execution of a turn?
Discussing the brisk acceleration we shouldn’t forget the compact & lightweight engine of the vehicle which combines with the light weight chassis of the vehicle to give excellent power to weight ratio; 77 bhp/ton to be precise. This means that the Wagon-R can accelerate as briskly unlike any other 1.3L hatchback/saloon, as a driver if you might have tried it personally you would know how seamlessly the car accelerates pass the highway speed limit of 110kph.
The powerful engine delivering brisk acceleration doesn’t means that it is a gas guzzling one. In fact it’s one of the most fuel efficient engines Suzuki has to offer in any of its car variants, delivering in b/w 10-16 km/l of gas mileage as per the driving conditions.
As we discussed earlier, although we might see a lot of Kei cars on our roads all imported from Japan offering a lot of features to play with, however we have to face the fact that they aren’t brand new and sooner or later when there would arise the need of spare parts either they would be found too expensive or unavailable. It’s for the keen observer that approximately 5 years ago, the used imported cars we used to see a lot on our roads are now extinct, perhaps due to the starvation of spares which every car needs, no matter how good it might be. So with Wagon-R keys in your pocket, you don’t need to be worried about neither the After sales, nor the availability of spares.
Concluding its worth mentioning that we often see people expecting PSMCL to bring in new product’s to replace the old product line, however the same people as general consumers still love the old models over the newly introduced variants. Although all of us demand change, but we do resist adapting to change as a nation & this is our biggest dilemma. PSMCL has brought a positive change, a change introducing the concept of a modern, light, compact, economical yet powerful hatchback in the form of Wagon R to us, we have to adapt to it & for sure those who drive it would not be able to resist the temptation of driving it again! Cheers.
Published in printed version of Monthly AutoMark Magazine’s May-2015 edition

By Shahzad Tabish
Suzuki is a brand well renowned for its diverse motorized product line globally. When we solely talk about the 4 wheel automobile product range of Suzuki, the names that instaneously jump on our minds is “Swift”, “Liana”, “Alto” and “SX4”. Basically, the brand name of Suzuki brings about the imagination of small nimble family cars and hatchbacks, all that has now changed with the introduction of Suzuki “Kizashi” sports sedan.
PSMCL recently launched Suzuki Kizashi in a ceremony held in Lahore. The variant launched is a CBU and will be available at an approximated 5 million pkr. Too many end users that must sound too much money to be spent on a Suzuki, well as a reader if you continue till the end that price tag would be justified through the features on offer.
Starting off from the power plant, the car comes equipped with a 2.4 L petrol engine which provides a peak power of 175 bhp which is enough to power the vehicle to cruising speeds fairly quickly and by that I mean that the car can reach top speed of over 200kph and takes only 8.8 seconds to crack 100kph starting from standstill. Having discussed the power plant now let’s turns our attention towards the rest of the power train.
The car comes equipped with CVT which is amongst the best transmission options available in the market. The CVT enables the driver to operate the car in the normal automatic mode with seamless shifting or in a manual mode where the driver gets the sports feel by extracting the peak power from the engine. In order to enhance the sporty feel while shifting in manual, the car comes equipped with the standard sequential stick shift mode as well as with pedal shifters which enable to driver to shift up and down as per requirement.
When it comes to driving amenities the car is fully packed with the electronic driver aids inclusive of standards like Power steering and ABS. This car being the high end variant also comes equipped with Electronic Stability Program (ESP) and Traction Control (TC). This ensures that the car behaves and remains well within control of even the novice drivers. The ESP module can be turned off at the push of a button which means that the driver can make the tires squeal if he wants to on a track day. The car also features Cruise control facilitating the driver for long drive routes which has become the standard feature in the luxury car segment.
As far as other features are concerned, the car comes equipped with electrically adjustable seats allowing the driver to not only adjust the position of the seats but also the lumber position of the seat. The seat has 3 memory functions as well to suit the adjustments of 3 individuals.
The car comes equipped with standard headlamp leveling system and headlamp washers. The lightening system of the car can also be set to automatic mode which determines the surrounding lightening through photo sensors conditions and illuminates the headlamps and tail lamps accordingly. A unique feature of the car is the auto dimming function of the rear view mirror which dims whenever a high intensity beam is focused on it from behind the vehicle to ensure that the driver visibility is not hindered. The car also features rain sensors which rain sensors which operate the wipers and washer nozzles accordingly. The car also features parking sensors mounted on the front and rear of the vehicle which activate and produce a beeping noise to alert the driver of any obstacle while parking the vehicle.
Talking about the practicality of the car, the car housed a large boot space with seats that fold down to enhance the storage capacity of the vehicle. Cup holders and bottle holders are found in the right places for both front and rear passengers as well. The car features dual AC system with temperature control provision for individual passenger and driver needs. The car also comprises of a very powerful sound system with multiple speakers and tweeters to ensure the perfect sound surround.
As far as safety aspects are concerned the car comes equipped with all the standard equipment necessary to satisfy European regulations. We have already discussed the active safety elements inclusive of ABS and ESP earlier. Along with the active elements the car comes equipped with 6 standard air bags inclusive of 2 frontal, side and curtain airbags and the body has the right combination of crumble zones and rigid areas to ensure maximum impact absorption. The car also features auto pinch function for the power windows, which detects any obstacle presence while closing the windows in automatic mode in order to avoid any injury to any human.
Concluding we may say that Suzuki Kizashi lives up to its name and expectations with the luxury and sports features on offer. With the price it has been offered in the local market it still is the most affordable luxury vehicle available in comparison to its arch rivals; whilst not compromising the luxury or the sporty feel. So all those looking forward to earn the luxuries of driving in comfort and style watch out for Kizashi!..
Originally published in Monthly AutoMark Magazine’s printed edition in March-2015