Automark magazine may 2014 a4

The trade and industrydemands single

digit GSTThe Trade and Industry have emphasized uponthe much needed reforms in taxation cultureby reducing the General Sales Tax regime toa Single Digit to change the business historyin Pakistan.Federation of Pakistan Chambers of Commerceand Industry (FPCCI) demands for reform inexisting Sales tax regime emphasized reductionof sales tax to single digit in the upcomingfederal budget for the fiscal year 2014-15.Th i s ye a r FP CC I i s f o r m u l a t in grecommendations for the Federal Budget whichis history in the making.FPCCI demands reduction in sales tax to singledigit (non-refundable, non-adjustable at importand manufacturing stage) in Pakistan. Thisproposed single digit sales tax will eliminatemalpractices in refund claims and input taxwhich will reduce cost to the exchequer. TheFPCCI is strategically working on the singlerate of Sales Tax and expect the FBR to joinhands in working to achieve this goal whichwill lead in the generation of Rs.1500 billionin the next financial year 2014-15. The mainadvantage of reducing sales tax to single digitwill be giving relief to the common manespecially to the low and middle income groupby reducing the inflation.Lower rate of Sales Tax will increase the revenuefor the Government and discourage the corruptand malpractices in input and adjustment. Itwill give industry a breathing space againstthe menace of smuggling which is wide spreadin the country. The simple procedures in salestax will give the Government an opportunityto work more efficiently within the Sales Taxdepartment.Most of the proposals for incorporation in theFederal Budget are related to this importantsegment which is a pre-requisite for survivaland expansion of Industry. It is demanded, forsuch incentives that could not only transformthe existing infrastructure into an efficientnetwork but also bring radical changes in theSociety through improved socio-economicindicators.FPCCI team is working on Shadow Budgetwhich will be presented to the Finance Ministryand the FBR team shortly which will be arevolution in the history of Trade and Industryof Pakistan....

Editor-in-chiefMuhammed Hanif Memon

Technical EditorMuhammad Shahzad

Advertising ManagerTahir Siddiqui

Circulation ManagerAbdul Khaliq

Graphic DesignerSalman Hanif

Web MasterMurtaza Hanif

CONTRIBUTING INTHIS ISSUEM. Yousuf ShaikhAli HassanM. Owais Khan

AdvisorsEngr. IHT FarooquiGM PlantP.M. Auto IndustriesHyderabad

Imtiaz RastgarCEO, Rastgar Group &CBI External Expert,Ex-chairman EDBIslamabad

J. PereiraGenera ManagerCustomer Support DivisionAl-Haj Faw Motors (Pvt) Ltd.Karachi

Muhammad Yousuf ShaikhFounder & ChairmanPakistan China MotorcycleIndustry CouncilKarachi

Syed Mansoor RizviPrincipal OfficerM/s. CNH Services (Pvt) Ltd.Karachi

Mr. Ashfaq MemonSenior Manager MarketingMemon Motors (Pvt) Ltd.Maker of Super StarMotorcyclesHyderabad

Pakistan’s premier magazine on automotive, engineering & energy sector

AUTOMARK InternationalMonthly

Postal AddressActive CommunicationsD-68, Block-9, Clifton,KarachiTel : 021-32218526 Mobile: 0321-2203815E-mail: [email protected]: www.automark.pk

The views expressed by contributingwriters and comments do not

necessarily reflect the views andpolicies of the Monthly AutoMark

magazine's management

May-2014 editionVolume 07, Issue 5

AutoMark Canada OfficeManaging EditorMohammad Shahzad S.A.E. D.M.P.41 Jordana DriveMarkham (Toronto)CanadaL3S 3N8Phone: 905-472-8282Email: [email protected]

AutoMark REGD: MC-1330Published every month by M. Hanif Memon

CONTENTS

Government to facilitate used 12-13car buyersExclusive Article by Owais Khan

BUDGET PROPOSAL-2014-15 14-17APMA urges government toencourage SMEs bike assemblersExclusive Article by Ali Hassan

FBR reviews number of 18concessionary SROsIndustry news update

Setting up CNG industry was a wrong 19decision, says ministerIndustry news update

Bus plant operating at record low level of 3% 21

Road Prince 22-23Motorcycles - Future is hereExclusive review by Faisal Mufti

SUZUKI Wagon R debuts in Pakistan 24-25Exclusive Article by Owais Khan

Automechanika Istanbul 2014 26&31Review by AM

The Patriot Prime Minister Mian 32-35Muhammad Nawaz Sharif,The last hope For PakistanExclusive Article by M. Yousuf Shaikh

International Automotive News - Update 36-37

Motorcycle Market Price List 38

Car/Vehicles Market Price List 39

PAMA fights for hybrid car import 42-43Exclusive Article by Owais Khan

visit: www.automark.pk

Monthly AutoMark InternationalMay-2014

The government has finally realizedthe demand of used car lobby as it plansto cut customs duty on import of upto three-year-old automobiles ofvarious engine capacity under variousschemes.This step will resolve the problems oflimited options available in small carssegments which the consumers havebeen witnessing after the elimination oflocally assembled Suzuki Alto, DaihatsuCuore and Hyundai Santro fromthe markets. Used cars up to threeyears old used to cost more due to highvalue of vehicles and cut in depreciationlimit.Perhaps the government feels that therevenue crunch can only be met throughhigh volume of imports of used cars aftercut in duties and taxes.This decision may play havoc with the

local industry especially for Pak Suzukiwhose Mehran 800cc and Swift saleshave already been struggling due topresence of variety of imported usedcars. However, the overall decision ofcutting duties on used car imports isdefinitely a pre-budget shock for thelocal assemblers.The cartel of local assemblers must haveexpedited their efforts in Islamabadto put on hold this decision at anycost as it will erode their marketshare.Despite cut in duties, much will dependon the rates of used cars prevailingin Japan and exchange rate parity.The auto assemblers have always blamedthe used car importers and dealers fornot reducing the car prices when therupee appreciates against the Yen andDollar. The importers’ lobby has neverreduced the rate on rising rupeestrength.

While cutting the importduties, the government hasto ensure that importers and

dealers should share itsbenefit with the car buyersotherwise this step would

lose its significance.

Market analysts expressed surprise overad hocism in government policies as onone hand the government is introducingauto industry plan after holding talkswith the local assemblers, while on theother hand it is trying to give a seriousjerk to the local assemblers by cuttingimport duties on used cars.They said it is surprising that somegovernment official or minister, whosenames were not quoted in the storiesappeared in various newspapers, hadsend shock waves for the local industry.This news has created only doubts overits credibility and authenticity as nominister or official was directly quotedon used car import duty cut. As theimport duty cut story ran in almost allleading newspapers which means thatsomething has definitely cooked in favorof used car lobby but against the localindustry.Auto Industry Plan had already beendelayed since October 2013 but this planwas already hit by controversies overthe leaking of its draft in a newspaperon which the local industry was nothappy saying the draft contained thosepossible decisions which the industryhad not discussed.According to a leading newspaperreport, the government observes that150 per cent customs duty on import ofbigger vehicles is too much and

by Owais Khan

This news has created only doubts over its credibilityand authenticity as no minister or official was directlyquoted on used car import duty cut.As the import duty cut story ran in almost all leadingnewspapers which means that some thing has definitelycooked in favor of used car lobby but against the localindustry.

Cover Story

www.automark.pk | May-2014 | Page 13

unnatural. So the duty reduction will beacross-the-board, but obviously thecut will be significant ly biggeron big vehicles and smaller on smallones.By allowing bigger duty reduction onluxury vehicles the government did notwant to favor rich people but it wasbecause that the space for reducing150pc duty was greater than cutting itfrom 45pc to 40pc on small cars.Vehicles having a capacity of over2,000cc are liable to 150pc duty.The duty reduction will be across-the-board, for 800cc, 1300cc, 1800cc andeven 3,000cc and above but with varyingpercentage. The age of vehicles wouldremain unchanged at up to three years.As per the leading newspaper report,the minister said the government wastrying to create a new classification ofvehicles below 800cc capacity like 600ccand 700cc to encourage import ofsmaller cars like Indian Nano car.The focus would be on boosting revenueby increasing the number of vehiclesrather than too much tax on fewervehicles, he said.Another English daily report said thatthe government is planning to reduceduties on imported vehicles in the nextbudget to provide relief to middleincome car users by introducing a newslab with low tariff for those who wantto switch over to small cars from twowheelers.The p lan to rati onalise tariffson imported vehicles is at a finalstage that may be announced in theupcoming budget for 2014-15, said thenewspaper quoting senior governmentofficials. Despite the rationalised tariffsthe FBR will get significantly higherrevenues due to an expected surge inimports.Against the current lowest slab of upto 800cc engine capacity carrying50 per cent customs duty, 17 per centsales tax, 5 per cent income tax and oneper cent federal excise duty, thegovernment is likely to introduce a newslab of up to 700cc with reducedcustoms duty.Chairman All Pakistan Motor DealersAssociation (APMDA) H.M. Shahzadmay now be relaxed person as accordingto him his efforts to convince thegovernment are all set to materializeshortly in view of government’s aim toliberalize imports of used cars to providebenefit to the people.The decision will result in increase inimports of used cars. Only 16,597 units

had arrived in the country (from 660ccto above 3,000cc including jeeps (4x4)in July-March 2013-2014 as comparedto 39,839 units in same period last fiscal.Only 12,093 units up to 1,000cc undervarious schemes were landed in ascompared to 22,669 units. From 1,001to 1,300cc, only 26 cars were importedas compared to 2,174 units.According to data released by APMDA,imports of 1,301 to 1,500cc stood at2,199 units as compared to 11,848 units.From 1,501 to 1,600 units, there waszero imports in July-March 2013-2014as compared to 38 units in same periodlast fiscal.Only 1,590 units from 1,601 to 1,800ccfound way into the market as against2,259 units. In the category of 1,801 to3,000cc, only 19 units came from abroadas compared to 51 units. Just 13 unitsof above 3,000cc was registered ascompared to 71 units. In Jeeps (4x4),around 657 units were shipped toPakistan as compared to 729 units.Chairman APMDA, H.M. Shahzad saidthe government netted only Rs6.7 billionin shape of customs duty from the aboveimports in July-March 2013-2014 ascompared to Rs 14.7 bil l ion incorresponding period last fiscal. Thecustoms duty collection will increasemanifolds if the import duties arelowered especially in small cars.He said the industry is making hue andcry over used car imports as cut in agelimit to three from five years coupledwith reduction in depreciation limit hadproved disastrous causing massive dropin imports while its positive impact isbeing enjoyed by the local car industrythrough their rising sales.

As per figures of Pakistan Bureauof Statistics (PBS) overall importsof cars comprising over 90 per centof used cars plunged by 44.5 percent in July-March 2013-2014 to$145 million from $261 million in

corresponding period 2012-2013.The figures did not reveal the import

numbers of completely built up(CBU) car units.

In the Budget 2014-2015 proposals, hesaid that the government should allowcommercial imports of used vehicles upto 10 years of age vehicles. Besides, thereshould be no restriction of age limit ofimport of vehicles under the existing

schemes for importing used cars.Allowing commercia l imports inaddition to existing schemes for theimports of used vehicles under variousschemes would be in line with theg o v e r n m e n t ’ s p o l i c y o f t h edocumentation of the economy andwould generate 100 per cent morerevenue for the government.It would also bring the used vehiclebusiness into the tax net and will helpthe government expand its tax base.He urged the government that onlycertified members of APMDA should beallowed to import used vehicles oncommercial basis for the sake oftransparency in the trade.Due to the fact that used car importpolicy was made to facilitate overseasPakistanis, Shahzad said that thereshould be no restriction of age limit forthe import of vehicles.He said regulatory duty income declinehas been a huge revenue loss, which canbe verified from all Collectorate ofCustoms. The Customs General Orderdated 13.1.2009 has deprived the legal,social and ethical right to obtain thedepreciation at two per cent per monthon old and used vehicles of above1,800c c imp or te d b y over se asPakistanis. This facility was availablefor the last 30 years before it wasabrubptly withdrawn.As per current SRO, the depreciation onthe taxes and import value of usedvehicle is at the rate of one per cent permonth. The importers are already payinghigh tariff rate on account of RD at 50per cent on the vehicles above 1,800cc(cars and jeeps) and due to devaluationof the rupee.The local assemblers are not makingcars above 1,800cc and the imports ofabove 1,800cc cars and jeeps would notaffect the local assemblers.Shahzad said the government shouldimpose a fixed rate of duty on the importof used vehicles of engine capacity above1,800cc.He said the Amnesty Scheme of March2013 had regularized 52,000 smuggledvehicles of all engine capacities withoutrestriction of age limit. Smuggling isdone to avoid high duties and taxes. Tocurb smuggling, the government shouldreduce the dut ies and taxes... ..

Monthly AutoMark Magazine International


Budget 2014-2015

APMA urges government to encourage SMEs bike assemblers

Pakistan has been producing anaverage1.6 million Motorcyclesannually for the last six years but inthe last one decade no governmentpaid attention for bringing reliableand fruitful auto sector policyespecially for SMEs of bike industry.

This year especially in the Budget2014-2015, the bike assemblers'body Association of PakistanMotorcycle Assemblers (APMA) ishighly hopeful that thegovernmentwill provide relief to the industrywhich has been in turmoil in the lastone decade.Chairman APMA Mohammad SabirShaikh said “he is highly Confidentthat the Finance Minister MohammadIshaq Dar will provide a road map forthe local bike industry especiallylow priced Chinese bike makers in thisbudget.”

However, in view of media reportsthat the government has decidedto reduce customs duty on smallto big cars of three years old toprovide relief to the consumers iscertainly a surprise when thegovernment was already in processof unveiling auto industry policy.

So far there are no reports of reducingcustom duty on b ike imp or ts .Commenting on this, Sabir Shaikh saidthat since 1981, the governments hadkept the import duties on bike importat higher side to protect the localindustry.The local bike assemblers have beenengaged in assembling bikes for the last50 years but the so-called pioneer ofbike industry has yet to produce acomplete Made in Pakistan bike.

He said that through SRO 655/2006,the import of sub-assemblies and sub-components with the help of EDB byissuing IORC certificates -- theassemblers include the per centage ofthese sub-assemblies and sub -components in locally made parts. Bydoing this, they claim to have achievedover 94 per cent localisation especiallyin 70cc and 125cc bikes, which iscertainly not true.If the government brings down theimport duty on bikes from 65 to 40 percent, then the CBU imports will remainunfeasible due to exchange rate parity.He said that one dollar is now equal toRs 100 in interbank market and alsobecause of over 100 assemblers, theimport of bikes would not cost cheaperthan the price of locally produced bikes.Sabir said that the local assembly ofbikes is quite easy as compared to CBUimports because it requires highinvestments, cash flow, quantity issues,storage problems, parts availability inthe aftermarket etc.If the assemblers make a bike inPakistan through imported parts andaccessories besides adding local parts,there is no storage problems and it doesnot require huge investment due toinvolvement of many vendors. Besides,local assembly ensures new and existingjobs and further vendor developmentbase.He said that the government in the newbudget should remove policy hurdlesespecially three SROs of the auto sector

Exclusive article by Ali Hassan


Pakistan has been producing anaverage1.6 million Motorcycles annuallyfor the last six years but in the last onedecade no government paid attentionfor bringing reliable and fruitful autosector policy especially for SMEs of bikeindustry.This year especially in the Budget 2014-2015, the bike assemblers' bodyAssociation of Pakistan MotorcycleAssemblers (APMA) is highly hopefulthat the governmentwill provide relief to the industry whichhas been in turmoil in the last onedecade.Chairman APMA Mohammad SabirShaikh said “he is highly Confident thatthe Finance Minister Mohammad IshaqDar will provide a road map for the localbike industry especiallylow priced Chinese bike makers in thisbudget.”However, in view of media reports thatthe government has decided to reducecustoms duty on small to big cars ofthree years old to provide relief to theconsumers is certainly a surprise whenthe government was already in processof unveiling auto industry policy.So far there are no reports of reducingc ustom duty on bi ke impor ts .Commenting on this, Sabir Shaikh saidthat since 1981, the governments hadkept the import duties on bike importat higher side to protect the localindustry.

The local bike assemblers have beenengaged in assembling bikes for thelast 50 years but the so-c alledpioneer of bike industry has yet toproduce a complete Made in Pakistanbike.He said that through SRO 655/2006,the import of sub-assemblies and sub-components with the help of EDB byissuing IORC certif icates -- theassemblers include the per centage ofthese sub-asse mb li es and sub-components in locally made parts. Bydoing this, they claim to have achievedover 94 per cent localisation especiallyin 70cc and 125cc bikes, which iscertainly not true.If the government brings down theimport duty on bikes from 65 to 40 percent, then the CBU imports will remainunfeasible due to exchange rate parity.He said that one dollar is now equal toRs 100 in interbank market and alsobecause of over 100 assemblers, theimport of bikes would not cost cheaperthan the price of locally produced bikes.Sabir said that the local assembly ofbikes is quite easy as compared to CBUimports because it requires highinvestments, cash flow, quantity issues,storage problems, parts availability inthe aftermarket etc.If the assemblers make a bike inPakistan through imported parts andaccessories besides adding local parts,there is no storage problems and it does

not require huge investment due toinvolvement of many vendors. Besides,local assembly ensures new and existingjobs and further vendor developmentbase.He said that the government in the newbudget should remove policy hurdlesespecially three SROs of the auto sectorand various permissions from the EDB.There should be direct permission forthe local assemblers. The board ofinvestment and FBR should expandtheir roles in promotion of localassembly. Board of Investment shouldhold some meetings with APMA and allstakeholders of bike to lure newinvestors.Sabir said that for the first in EDB'shistory, the Board produced directoryof Engineering Goods Exporters whichis certainly a positive step. He urgedthe EDB to release these typ eof directories twice in a year addingsome new exporters and some pagesfor policies , b esides details o finternational exhibitions of engineeringsectors.He said that the government shouldconsider giving uniform customs dutystructure for commercial imports,OEMs, all kinds of parts such asa s s e m b l i e s , s u b - a s s e m b l i e s ,components, sub-components and rawmaterials.In addition, the valuation system shouldbe overhauled in such a way that it

The local bike assemblers have beenengaged in assembling bikes for the last 50years but the so-called pioneer of bike industryhas yet to produce a complete Made in Pakistanbike.

continued on next page


should be based on per kg system forcategories comprising Chinese parts,Japanese and Far East parts, andEuropean parts, he said.

Hurdles created by theEngineering Development Board(EDB) for auto sector throughdifferent SROs should bediscontinued otherwise nopolicy will bring any desiredresults.Sabir said that budget exercise betweenthe auto stake holders and the EDB isunlikely to produce any fruitful resultsdue to some assemblers' vested interestwhich suit the EDB officials.He said if the government understandsthe value and importance of engineeringand auto industry especially SMEs, thenPakistan’s potential to double exportscan be achieved as per desire of PrimeMinister of Pakistan Mian MohammadNawaz Sharif.The EDB is taking various steps toevaluate the performance of the localindustry and give it a boost to meetfuture challenges.One of the steps is expansion of SRO693(I)/2006 by including partsindigenized after last revision. SabirShaikh believes that this SRO should beimmediately abolished without wastingany time.EDB will evaluate the performance ofthe industry under the TBS Regime, itsrole and impact on indigenization, costreduction of OEMs and Auto PartsMakers and passing on the benefit ofreduction in duties being availedthrough IORs under 655(I)/2006 toconsumers. He said IORC should beterminated and every app rovedasse mbl er s s houl d b e gr antedpowers/permission of importing rawmaterials, assemblies, sub assemblies,components and sub componentswithout any EDB’s permission. Thegovernment should directly allow themthrough SRO or policy.On developing instruments to encouragefurther indigenization, he said that theword indeginizatin remains in the SROand notifications instead of becoming apractical reality.To assess the tax and tariff environmentof the auto industry including the stomsduties, sales tax, FED, withholding taxregime, para-tariffs etc. He said that auniform tax structure should beintroduced otherwise the government

officials and the industries will misuseall the taxation system in next eightyears again.The government will assess the ongoingnegotiations on PTAs / FTAs and alreadyconcluded FTAs, issues relating to WTO,Trade Policy, competing countries taxand tariffstructure and the global trends on fiscalpolicies for the auto sector.He said perhaps the EDB is unawarethat any PTA or FTA exist in the autosector with any other countries. He saidthat the EDB should stop misguidingthe government on PTAs and FTAs onauto sector as Sabir believes that PTAsand FTAs would not boost the localindustry.To improve the procedures andimplementation of various SROsapplicable to the auto industry throughmaking the processes more transparent,faster and simpler. The government,Sabir said, should abolish all the SROson the auto sector immediately and thereshould be one policy document for theentire auto sector.On identification of loopholes in SROsto discourage their un-fair use, he saidall the SROs are suitable for bigindustries instead of SMEs includingassemblers and vendors. On assessinge xp ort p otent ia l /p rospe cts o fautomobiles and parts and devisemechanism for market expansion, hesaid the sales tax and customs dutiesrefund system should be improved asSROs like 656 is creating hurdles forexports.

On issues related to underinvoicing, mis-declaration,

smuggling and usedparts/vehicles import. Sabir saidthe Customs valuation systemhas to be unified for various

countries. For example, all theChinese imports of parts forOEMs and commercial markets

should be on the same value.On steps for easy and smooth access toinputs and endeavor to remove all thepossible irritants in the applicable policyand procedures, he elaborated that incase an OEM tries to directly importparts, the government should supportthe OEM instead of creating problemsthrough importable list and productioncertificates. The government has to

simpplfy the valuation ruling for OEMsas well as commercial importers.Sabir Shaikh said that the FBR mustunderstand that the government hasto phase out auto sector SROs inthe coming b udget 2014 -2015.Otherwise, two to three more yearsw ou ld ag a in g o i n wa st e i nunderstanding the issue.

He said the government wantsdirect impact of taxationmeasures to reach the endusers. However, it is only

possible when the governmentintroduces a uniform policy forboth large scale and SMEs. Thereis a need to remove hurdles of

IORC besides bringinguniformity in valuation system,

removing the hurdles likeproduction certificates and

importable lists by the EDB etc.This will help the industries to

introduce new models ataffordable prices.

Concessionary tariffs should be removedin this coming budget as these SROswere introduced in 2006 for five years.This was a failed policy of formerFinance Minister Shaukat Aziz whointroduced Tariff Based System (TBS)instead of moving ahead with deletionprograms.He added the government takesfeedback and suggetions of the SMEstwo months prior to the budgetannuncement but it actually favors thebig assemblers by making policiesserving their interest.APMA chairman said all the policies andSROs made in the last 15 years were notin the interest of the country, notrevenue-oriented and were basicallyfollowing an anti localization policy andalso against the industrialization andemployment.He said the government should focus inthe budget on two type of duties – dutyon spare parts (for OEMs, commercialmarket, assemblies, sub assemblies,components and sub components)and secondly on completely built upunits.Valuation system (cars, bikes, tractors,LCVs, etc) if imported from China thenvaluation rules should be the same. For


Far East (second valuation category).For Japan and Europe (third valuationcategory). There is a need to announceimported parts ruling on per kg basisbefore the Budget. This will reducesmuggling, under invoicing and mis-declaration.He strongly demanded that issuance ofvarious permissions through the EDBsuch as importable lists, productioncertificates and IORC should be doneaway.All over the country the dealers of autosector and parts should be registered inthe sales tax net. Those who do not wantto come in the ST net, the governmentshould charge extra five per cent GSTfrom the dealers.He suggested the government to reducethe GST to 15 from 17 per cent in thebudget as this would help curbing salestax evasion.He was of the view that the committeesformed by the finance minister underFBR in which FPCCI and some otherchambers are their members is notenough as there is a need to induct moreexperts of their field.The government has to give its dueattention to the two wheeler segmentthis year especially and efforts shouldbe made to pressurize the leadingassemblers to bring a change in thedecades old 70cc models.Policy hurdles, if removed, wouldencourage assemblers to introduce newmodels in the country.

Chairman APMA said thatChinese parts are of same

quality either imported by thecommercial importers or by theOEMs. But Suzuki and Honda

are Japanese branded bikes andif their assemblers import

parts from China then it meansgenuine import of parts.

Around 104 other approvedassemblers also import partsfrom China (almost same as

being imported by thecommercial importers).

He said the Valuation Departmentshould clearly mention that thecommerci al i mp orters , Chinesedomestic b rands and Pakistanilocal brands are same quality andstandards. But Honda, Suzuki

and upcoming Yamaha are genuinebrands even their parts are importedfrom China.APMA chief said valuation is purely aissue of bike assemblers who aredomestically produced by the Pakistaniassemblers and all of them are APMAactive members.

However, the Valuationdepartment always invites

KCCI, FPCCI, PAMA, PAAPAMand MSPIDA in every meetingsto ascertain and fix true valueof parts. The main stakeholdersare 104 approved assemblerswho are producing bike with

their hard struggle.He said in Para three under discussionruling, the department mentions wordsabout APMA’s representatives where itmentions that parts imported by thecommercial importers and by the OEMsof Pakistani and Chinese domesticsbrands are not same. Sabir Shaikh saidthat this is ridiculous as these parts aresame imported from China by the OEMsand commercial importers.The original purchase price of theimporters from China is much lowerthan prices mentioned in the ruling of42 items. The valuation ruling issuedon March 31 is on very higher side. Ifthe government does not lower thevalues of these items then the smugglingwil l continue to thrive, he said.APMA chief said that he along with othermembers also attended the meetingfor AIP but their proposals weremissing in the AIP draft appeared inthe local newspap ers, which isreally disturbing for the SMEs bikeassemblers.He said the government should realizethat the main stakeholders aremotorcycle assemblers of Pakistani andChinese domestic brands who areproducing more than one million unitsof two wheelers annually for the lastmany years.

He said that it seems that the AIPis being made at facililitating only

three Japanese car and bikeassemblers. He added that does thenew auto policy really care aboutcountry’s revenue, industries, job

opportunities, genuine localizationetc.

Monthly AutoMark International

Automotive Sector - Update Monthly AutoMark International


The Federal Board of Revenue (FBR)has reviewed a number of concessionarystatutory regulatory orders (SROs) toamend and revise customs relatednotifications to take away concessionsin customs duty at the import stage inbudget (2014-15).Sources told Business Recorder on lastweek that the FBR has analysed theSROs on certain principles for review ofcustoms concessions. The customsrelated SROs have been considered byFBR for simplification/phasing outunder the exercise in consultation withthe relevant government department.Under the exercise, the FBR hasa n a l y z e d S R O . 5 6 7 ( 1 ) / 2 0 0 6 ;rat ionalization of customs dutyon Pathalic Anhydride (PA) industry;SRO. 575(1)/2006; SRO 809(1)/2009;SRO 678(1)/2004; SRO.565(1)/2004;r e t ai n i ng e nt r i e s un de r S RO565(1)/2006; explanation to beadded under SRO 565(1)/2006 andother proposals related to SRO565(1)/2006.The FBR’s exercise has also analyzedamendment in SRO 565(1)/2006 (S.No2) — change in desc ription ofcomponents; amendment in SRO565(1)/2006 (S.No. 3) - change indescription of manufactured goods;amendment in SRO 565(1)/2006 (S.No.4) - to exclude “Fin-Type Evaporator”for the manufacture of refrigerators /vis icoolers; amendment in SRO565(1)/2006 (S.No. 5) - to add “retarder/ speed reducer without motor” for themanufacturing of semi-automaticwashing machines; amendment in SRO565(1)/2006 (S.No. 6) - to incorporatedetailed description of input materialsused in the manufacturing of car airconditioners; amendment in SRO565(I)/2006 (S.No. 9) - change indescription of manufactured goods;amendment in SRO 565(1)/2006 (S.No.20) - addition of raw material;amendment in SRO 565(1)/2006 (S. No.64) – PVC manufacturing industryinterpretation and application of SRO;

amendment in SRO 565(1)/2006 (S. No.74) – to add and correct certain entries;amendment in SRO 565(1)/2006(S.No.88) - to delete CRC steel coilsfrom welded steel pipes / tubes;amendment in SRO 565(1)/2006 — addspecial condition for the manufacturersof CRC steel coils from HRC steelc oils ( S.No.9 1) ; amendme nt i nSRO 565(1)/2006 (S. No. 106) - todelete locally manufactured rawmaterials.The FBR has analysed SROs toencourage local manufacturing ofautomatic washing machines (newaddition); local manufacturing ofmultipurpose engine above 36 hp (newaddition); review of tariff structure onabrasive cloth sheet, belts/roll, sandpaper, fiber disc and buffing papermanufacturing industry (new entry);du ty t ax e xe mp t io n on l oc a lmanufacturing of lead lamps (newentry); rectification of tariff anomalyfaced by sodium laryl ether sulphatemanufacturers (new entry); reductionin duty on import of inputs used for themanufacture of agricultural machinery& implements.The FBR has also analysed amendmentin SRO 655(1)/2006 - export ofautomotive components & assemblies;amendment in SRO 656(1)/2006 -revision of minimum in-house facilities;amendment in SRO 656(1)/2006 -reduction in duty on tyres for vehiclesof heading 87.01 under HS code4011.2090 to 5%; amendment in SRO499(1)/2009 - imports vs local assemblyof HEVS ; amendmen t in SRO693(1)/2006 & customs tariff to add theparts in respect of the new vehicles;amendment in SRO 693(1)/2006 &customs tariff – levy of additional dutyon the import of localized parts /components of cars, motorcycles &tr a c tor s ; am e nd me nt in S RO693(1)/2006 and customs tariff -protection to locally manufactured roadw h e e l s ; a m e n dm e n t i n S R O693(1)/2006 and customs tariff - re-

classification of automotive whetherstrips (seals); amendment in customstariff - reclassification of air and fuelfilters to cover all types of locallymanufactured filters; amendment incustoms tariff - rationalizing tariff forpneumatic tyres of rubber; amendmentin customs tariff - removing anomalyon unit of measurement and valuation-of auto parts; amendment in customstariff - recommendations for insulatorsindustry; amendment in customs tariff-rationalization of customs duty onimp ort o f welde d ste el pi p es;amendment in customs tariff - definitionof secondary quality steel products;amendment in customs tariff - reductionin duty on ferrite core transformers andinductors.The FBR has examined SROs foramendment in customs tariff - increasein customs duty on paper & paperboardp r o du c t s t o e n c o ur ag e l oc a lmanufacturing; amendment in customstariff - rationalisation of customs dutyon certain materials; amendment incustoms tariff - decrease in customs dutyon certain types of bearings to maintainuniformity; amendment in customstariff - reduction in rate of customs dutyon coal TAR (2706.0010); amendmentin customs tariff — description change(9032.1010); amendment in customstariff- creation of new PCT heading toavoid mis-declaration of cobble platesas billets at import stage; amendmentin customs tariff - creation of new PCTheading to avoid mis-declaration offusion bonded epoxy (powder coatings)as epoxy resin; rebate on export ofengineering goods; bigger challengesunder invoicing, mis-declaration andsmuggling; centralizing registration ofvehicles specially 2/3 wheelers; reviewof fixed duty regime under SRO577(1)2005—- used cars; export ofsamples (upto limit $ 100,000/ yearand national electronic policy toencourage real manufacturing ofelectronics goods...

FBR reviews number ofconcessionary SROs

The FBR has also analysed amendment in SRO 655(1)/2006 - export ofautomotive components & assemblies; amendment in SRO 656(1)/2006 -revision of minimum in-house facilities; amendment in SRO 656(1)/2006 -

reduction in duty on tyres for vehicles of heading 87.01 under HS code 4011.2090 to 5%



Federal Minister for Petroleum ShahidKhaqan Abbasi has said that the CNGindustry should never have been set up,which is without any law and code ofconduct.Talking to media outside the ParliamentHouse on last week, the minister saidPakistan was facing energy crisis due towrong policies of the past governments.He said those who were blaming theirgovt should talk in parliament and theywould respond.He said the demand of gas was 6 billioncubic feet while its supply was 4 million

cubic feet. The minister said first theCNG supply to vehicles was for 72 hourswhich was now reduced to 54 hours.Due to this reduction problems havemultiplied and long queues of cars areseen, he added.

People who own vehicles worth Rs 2.5million should tell why they stand inlong queues just to save Rs 500, theminister quest ioned. Regardingagreement for LNG export from Qatar,he said the agreement would be madeat government level and not throughpersonal connections, adding that itwould be based on principles. RegardingPak-Iran gas pipeline, he said I can sayit a thousand times this project wouldbe difficult to continue due to US andinternational sanctions...

Setting up CNG industry was a wrongdecision, says minister

The government’s intending LNGimports would cost Pakistan $2.25billion a year translating into $16 permmbtu, Federal Minister for Petroleumand Natural Resources Shahid KhaqanAbbasi said.Addressing on the occasion of ServiceAgreement Signing ceremony betweenthe Sui Southern Gas Company andEngro, Abbasi said that the LNGterminal would be ready in 335 daysand then country would start receivingthe imported gas.He also said that Pakistan State Oil(PSO) would import the liquefiednatural gas and the rates for consumerswould be determined according to the

weighted average pricing method.Theminister said that the government wouldspend around $2.25 billion annuallyagainst the imports of around400mmcfd gas while the Engro’sterminal would be paid $100 millionannually as tolling charges.IAccording to the details of the proposedLNG services agreement, Engro wouldbe paid terminal charges, as the terminalwould be used for re-gasification andstorage purposes. The said theagreement also includes certainconditions and Engro would beresponsible for putting its 400mmcfdcapacity terminal operational within 11months after the signing of the

agreement.According to two major conditions ofthe agreement, the SSGCL would notpay any charges under the head capacityin case of no import of gas to the country.Secondly, the SSGCL would not pay theprice of gas likely to be wasted onaccount of technical losses, they added.A board of SSGC on January 28, 2014had achieved a major milestone towardsbringing imported Liquefied NaturalGas (LNG) to the country by approvinga plan for the construction of newterminal for import of Liquefied NaturalGas (LNG) at Port Qasim to a subsidiaryof Engro Corporation with certainconditions.....

Pakistan to spend $2.25 bn annually on LNG import



Car makers seek end to concessions onused vehicles import

The car industry has urged thegovernment to curb undue concessionsto imported used vehicles and revise theimport trade prices (ITPs) to boost salesof locally made cars and revenues.The ITPs valuation done under theSRO577 is based on old prices whichputs local industry at a disadvantage,auto assemblers said in the 2014-15 pre-budget proposals.Regarding Income Tax Ordinance 2001,the car industry proposed reduction inturnover tax from one per cent to 0.2pcas being allowed to motorcycle dealers,distributors of FMCG, pharmaceuticals,fertilisers and oil products.The government should eliminate/reduce withholding tax at 3.5pc on sale

by authorised dealers of vehiclema nuf ac tur er s , as a l lo we d todistributors of pharmaceutica l ,cigarettes, textile sector, etc under Part-II to Second Schedule to Income TaxOrdinance, 2001, the proposal said.The benefit of both the proposedreductions is that wholesale-retailmechanism(may be implemented, asapplicable internationally) wouldimprove volumes on account of stockavailability and healthy competition.Income of dealers would be subject tonormal taxation that would enhancedocumentation and may increase tax toincome ratio.The auto industry app ealed thegovernment to fix import duties on used

cars on current global rates instead ofunder outdated SRO577 of 2005.The policy to facilitate the expatriatePakistanis to import used cars up tothree years old on reduced duty of 36pc(1pc per month reduction in duty) wasbeing misused as used cars were beingimported by commercial traders in bulkand sold in the market.The industry further suggested thatwithholding tax on import of rawmaterials and plant and machinery byindustrial undertakings should bereduced from 5pc to 1pc.Federal Excise Duty (FED) on locallymanufactured motor vehicles (1,800ccor above) falling under HS code 8703category be exempted or eliminated...

Sports Utility Vehicles (SUV) manufacturing project in danger of discontinuation.

It has hit the sales of Toyota Fortuner, which was launched in March 2013, drastically,

making it almost impossible for the manufacturer to continue with it,’ he added.

He requested the government to immediately exempt all locally manufactured SUVs

from this deadly 10 percent FED, adding that the drop in the sales of the Fortuner

has also resulted in a sharp decline in revenue to the government. The estimated

loss to the government through this decision is Rs 231.8 million per month while

the annual loss is Rs 2.78 billion.

He further said the government is already earning much in terms of custom duty

and general sales tax, so there was no need of imposing FED. According to the

break-up of duties on one Fortuner, the government earns Rs 946,000 in terms of

custom duty; Rs 446,000 through 10 percent FED; Rs 834,000 as general sales

tax; and additional 100,000 as registration. This set of duties and taxes amounts

to Rs 2.326 million which makes on road price of one Fortuner Rs 6.2 million.

‘At the time when the government is planning to improve the economic situation

of the country there is need that it should focus on restoring the confidence of

investors as they can create employment opportunities through new investment,

increase revenue to the government, and help better the economy of the country,’

he added...

Auto industryseeks withdrawal of FED1800cc or abovehigh-end vehicles

The local auto industry has asked thegovernment to withdraw Federal ExciseDuty (FED) on locally manufactured1800cc or above vehicles to help theconsumer benefit from high-end vehiclesat reasonable prices.Director General, Pakistan AutomotiveManufacturers Association (PAMA) inbudget proposals 2014-15 has suggestedto the government that FED at the rateof 10 percent on locally manufacturedmotor vehicles (1800cc or above) fallingunder HS code 8703 category should bewithdrawn as this has significantlyaffected the price and consequently salevolumes of this category of locallyproduced vehicles, which are beingproduced after huge amount ofinvestments.‘The withdrawal of the levy on locallyproduced motor vehicles of 1800cc orabove will not only restore the salevolumes of manufacturers but also leadto additional contribution to the nationalexchequer. Further, the local industrygeared up with lot of efforts to producehigh end vehicles with huge investmentwill be able to sustain and confidenceof investors will be restored,’ saidDirector General Pama. It is to be notedthat through Finance Act, 2013, 10percent FED was levied on motorvehicles 1800cc and above.‘This FED has put the country’s first


The auto industry’ bus manufacturingunits are operating at record low levelof less than 3 percent of their installedcapacity, as all plants have producedmerely 630 units of buses in firstthree quarters of the current fiscal yearagainst the total annual productionability of 26,150 units thanks to therambling import p olicy o f thegovernment.At a time when almost all provincialgovernments are planning to facilitatetheir public by launching rapid busservices in their provinces the country’sbus assemblers are showing analarmingly low figures of theirproduction as the major chunk of thismass transport facility is being fulfilledmainly through import, auto industryexperts said.According to the latest data ofEngineering Development Board, themajor bus manufacturing companiesincluding Hinopak Motors, GandharaNissan, Gandhara Industries, AfzalMotors, Daewoo Pak Motors, TayyabaMotors and Fuso Motors have producedonly 630 bus units against their totalcapacity of 26,150 units in the period ofJuly 2013 to March 2014.

The data shows that HinopakMotors which has installed

capacity of 5,950 units per year,produced only 372 busses of all

ranges and ranked first inPakistan as all other companies

production is even below.Gandhara Nissan could producejust 6 units of Nissan SP 210 busagainst capacity of 4,200 units

while Gandhara Industriesmanaged to produce 17 units ofIsuzu NPR 66PB Bus and Isuzu

MT133 Bus against ability of 3,000units.

Master Motor Corporation Karachi canmake 8,500 busses in one year but itcould assemble only 13 busses of MasterYuejin and Master Mitsubishi modelsin 9 months. Likewise Afzal Motors canassemble 3,000 busses but it could showproduction of just 10 busses. Only theDaewoo Pak Motors could succeed to

utilize production capacity a little betteras it manufactured 180 busses outof 500 capacity. Fuso Master Motors,having capacity of producing 1000busses, could not manufacture asingle bus throughout the current fiscalyear.Auto industry experts are of the viewthat though Punjab government haslaunched rapid bus service in provincialcapital, besides initiating more suchprojects in other cities yet the authoritieshave imported all busses for thoseprojects.

They said that all busmanufacturers of different models

including Hino, Nissan, Isuzu,Master, Daewoo are producinghigh quality and state of the artbuses but Punjab government

preferred to import them fromChina and Turkey.

If govt orders local company tomanufacture busses, every bus willprovide jobs to at least 100 people

directly.“Its unfortunate that country’s localdemand of busses is about 6,000 perannum and if all requirement is fulfilledthrough local production hundreds ofthousands of jobs will be created,balance of trade will be improved, GDPratio will be enhanced, besides reducingrunning maintenance gradually,”officials in the Engineering DevelopmentBoard opined, requesting their namesnot to be mentioned.The Lahore Transport Companyimported 300 busses last year, they saidand added that import process takesat least five months and local companiescould a lso p roduc e those 300buses within this period of f ivemonths.They said that only months after theMetro bus service’s inauguration, the socalled state of the art import busesdeveloped various problems includingair-conditioning and cooling systemfailure, while many broke down due toheating up.They pointed out that the computerizedsystem also crashed in some of the

imported buses and foreign experts hadto be called in.The Pakistan Association of AutomotiveParts & Accessories Manufacturers(PAAPAM) chairman Usman Malikappreciating the Punjab governmentmission of providing comfortable,affordable and rapid bus service to thepublic, has stressed the need formanufacturing of these busses at locallevel.All provincial governments should takeserious action to prevent bus import andshould device such policies that canenable our own local industry to prosperand to compete in the global automarkets of the world.He said that all bus assemblershave joint venture s with loc alcompanies and locally-made bus usesat least 65 per cent local components,leading to the high growth andemployment generation in auto partsindustry too.No doubt it is a responsibility of thegovernment to make such policies thatfacilitate the development and growthof domestic auto industry boundingthem through deletion program strictly.However in Pakistan, the frail andunfriendly strategies of the managementare hampering the home industryto f lourish. The local industrycan manufacture the low cost units,with latest technology equipment,beautiful design and outlook, butit requires government support, hestated.Usman Malik said that vision of theprovincial government to decreasecommuters’ hardships by resolvingtransport problem in major cities isappreciable.“A comprehensive strategy is requiredto ident ify new r outes for theconvenience of the commuters in allmajor cities to lessen dependence oncars by introducing culture of buses. Inthis way our oil import bill will becurtailed while traffic as well asenvironmental issues will automaticallybe resolved, he added....

by Usman Aslam Malik - Chairman PAPPAM


On an expansion mode to grab asignificant stake in the PakistaniMotorcycles segment, Road PrinceMotorcycle Pakistan has launched newproducts at 'best value at every pricepoint' to take on its bigger rivals.

L aunc h of RP B UL LET 70ccand JACKPOT 110cc has broughtits products at par with the marketleader.Confirming this, Managing DirectorRoad Prince, Mr. Tanveer Ahmadsaid, "We plan to offer two-wheelers atevery price point with best quality partsand after sales services with one of thelargest 5S network across the country.Backed by country's one of the biggestRP Genuine Parts Network, we surelyhave at par edge over competitionwhen it comes to Research andDevelopment, Manufacturing and SalesDistribution."Recent business collaboration of RoadPrince with Allied Bank Limited, thecountries widest banking network,shows much efforts in securing top slotsin corporate sales. All credit goes to thetrusted RP team at Sales, Service, Spare

Parts network at every nook and cornerof the country.

RP Bullet 70cc , recent launch thatlead its way in modification andinnovation, provides greater valueto its valued customer by givingthem Power along with extra mileage.On Company's prospective viewpoint:Speaking on Product launch ceremonyin Lahore, Faisal Mufti (GroupSenior Marketing Manager),Mu stafa Ali Rizvi ( Gener alManager Sales & Marketing) andArshad Ali (Advisor to CEO) RoadPrince:

"Banking on the idea to launch amodified extra value motorbike witha minimal price was well accepted bythe audience making it a Mega Hit.Not only the bike had extra featuresand kept up the value for money, theRoad Prince Marketing team left nostone unturned whilst making it aBlock Buster. Knowing the fact,

Distribution network is thebackbone of any launch, we offeredbest in the industry Foreign tourschemes on high sales achievers,disseminated 1300cc brand new cars,Motorcycles, LED TV screens,Laptops and much more."

Creative Agency: HUMAN DESIGNS T U D I O S , C h i e fCreatives/Imagineer, AdnanMushtaq Ali, words.

"RP Bullet 70cc - Boht Tezz wasconceived at same platform with thecompany and creative house HUMANDESIGN S TUDIOS. Televisioncommercial stars the Motorbike andNo one else. TVC was shot in Full HDCompositing Environment withheavy digita l/an ima te s postproduction in Singapore. This highbudget film concept revolves arounda gun, bullet, barrel, tunnel, andMotorbike where motorbike is

Road PrinceMotorcycles - Future is here

Road PrinceMotorcycles - Future is here

Director Road Prince motorcycle, Mr. Muhammad Adeel Usman presenting souvenir toMr. Khawaja Almas, Cheif commercial and retail of Allied Bank Limited, at the occasion of the delivering

of 413 Road Prince RP Bullet 70cc motorcycles to Allied Bank Limited.



digitalized in every manner tohighlight each function and utilitythis bike offers. Stringent timelinesfor launch date along with extremelydifficult idea to execute was achallenge well taken by me. I wantedto show that Bullet motorbike givesa higher perceived value along withstyle statement than any other bikeon its curren t and fu turecompetition. Feature have to behighlighted without any visual noiseand clutter. The audience gets a feelof this million dollar joyride just bywatching the TVC on their favoritelocal, satellite and cable channels. Notleast to mention, along with ATLactivity, we managed to create megaawareness on street level with the

help of Live Product Launch Floats,Test Ride camps, Leaflets, detailproduct Brochures, Posters, Banners,huge hoardings on every busiestjunction of main cities and remoteareas.

JACKPOT 110cc: "Aub lagay gaJACKPOT" with a sign off line "100ccki qemat mein 110c ka power" is a powerstatement in itself. The well thoughtslogan shows a moment of joy andexcitement in contentment when buyingthis motorbike. Offering 110cc horsepower in price of 100cc is the biggest

jackpot a customer can have under RoadPrince umbrella. The company investedwell in design, p roduction andmarketing, in order to achieve salesresults starting from 1st quarter.Television Commercial was again achallenge while the whole conceptrevolved around Transformer animatics.This is first of its kind TVC productionwith unique technique of Dubstep musicdirection with High definition 3Danimation of rendered bike modelingadopted that focused bike features indetail in a transformer theme. Wecreated a lot of hype with the teaser inprint and electronic prior to launchingthe campaign and that got a lot ofengagement."

Leading its way in innovation and bestvalue at every price point, Road PrinceMotorcycles yet to launch more excitingproducts this year and head its way up.Inshallah!

Mr. Faisal Mufti, Group Marketing Manager,Road Prince Motorcycles

Mr. Mustafa Ali Rizvi, General Manager,Road Prince Motorcycles


Exclusive Article by Owais Khan

At a time when Pak Suzuki MotorCompany Limited (PSMCL) unveiledlocally assembled Wagon R in the thirdweek of April 2014 in Lahore, thegovernment, as per media reportsin first week of May, has reportedlydecided to cut customs duty on importof up to three-year-old automobiles ofvarious engine capacity under variousschemes.This kind of situation reminds of a shockfac ed by Adam Motors when itintroduced a locally assembled small carand suddenly the then governmentreduced import duties on used cars orliberlised used car imports. As a resultthe project became a history.

At least the government must haveconsidered before further liberalizingimport of used cars that a leading carassembler, having over 50 per centmarket share, has introduced a new car.The company has also planned tointroduce more cars like Suzuki Alto800cc and Swift new version in case thegovernment allows import of parts andaccessories from India.The Wagon R looks stunning in its looksand interior design but it is to be seenhow the Pak Suzuki new car is goingto survive in a market where thousandsof used cars of few years old areparked in the showrooms of used cardealers.It may noted here that Suzuki Swift got

a huge response from the buyers afterits launch but for the last few monthsthe sale of this car has been goingflat. It suggests that people usuallyreview various options whether tobuy imported used three year oldToyota Vitz, Passo etc or locallyassembled Suzuki Swift due to limitedprice difference.However, decline in imports of usedcars is a good sign for the localassemblers to bring more new cars inPakistan.The silver lining in the introductionof this Indonesian version vehicle isthe full back up support of parts andservices coupled with warranty whichthe people do not find in purchasingused cars.However, used cars especially of threeto five years old of Toyota, Honda,Daihatsu, Nissan etc definitely enjoy anedge over Wagon R due to their extrafeatures. But hopefully Wagon R willdefinitely lure the buyers especially thosewho prefer locally assembled cars dueto after sales service and easy partsavailability in the markets.Hopefully Wagon R because of itsdesign, advance engines, features anddazzling colors will prove a goodaddition in the Pak Suzuki family andfill the vacuum created by the ouster ofSuzuki Alto. Pak Suzuki is already facingproblems due to declining sales ofSuzuki Mehran and Suzuki Swift. Cultushas been doing well so far.Besides, Wagon R price also looksattractive which may force many buyersof used cars to switch over in bringingzero meter Wagon R due to full partsand service back up.Mr. Hirofumi Nagao, Managing Director

SUZUKI Wagon RDEBUTS IN PAKISTANWagon R price also looks attractive which may forcemany buyers of used cars to switch over inbringing zero meter Wagon R due to full partsand service back up.




Pak Suzuki on the occasion of Launchof Suzuki Wagon R in Pakistan on April18 said that Suzuki Wagon R hassuccessfully travelled all over the worldand got appreciations from thecustomers worldwide.The journey started from 1993 when1st Generation of Wagon R waslaunched in Japan. This redefined thecompact car concept in Japan andbecame one of the most popular modelsin a quick span of time. Based on theextraordinary response the Wagon Rwas introduced in other countriesincluding India and Indonesia and itgained enormous response.He said Wagon R is considered as a StarProduct in Suzuki Motor Corporationp or t fo li o a nd has w on man yap p r e c iat i ons and awa rds . I tMaintained Status of Best Selling Carin Japan Consecutively for six Years.He was optimistic that the Wagon Rwill not only exceed the expectation ofthe Pakistani customer but will redefinethe compact car customer motoringrequirements.In line with the customer requirement,the company has kept fuel efficiency asthe top priority. Wagon R is equippedwith the world famous Suzuki K Seriesengine which is incorporates excellentcompression ratio, is less on noise, lightweight and is extremely fuel efficient.Wagon R with its modern design,spacious interior is designed to provideutmost comfort and convenience andoffers a practical solution to themotoring needs of the customers.He hoped Wagon R would go a longway in satisfying customer needs andwill soon become a talk of the town andhous ehol d n ame in P aki stan .Mr. K. Saito, Executive GeneralManager Suzuki Motor CoprorationJapan said Suzuki Motor Corporation,Japan has overseas distributors in 149countries taking care of sales, after salesand other support services of diversifiedp r od uc t p o r t f o l i o s i n c lu di n gautomobiles, motorcycles, and outboardmotors. We have overseas automobileplants in 12 countries and motorcycleplant in 16 countries.He said Pak Suzuki Motor Company iscategorized as one of the mostprestigious overseas distributors ofSuzuki Motor Corporation, Japan. Wefirstly entered the Pakistani market in1972 and our local production startedin 1975. Since then, Pak Suzuki MotorCompany is keeping over 50 per cent

market share in automobile category.In the year of 2013, we recorded to sell2.69 million Suzuki automobiles acrossthe world as the maximum numbers inthe past. Of this, 77 thousands unitswere sold here in Pakistan and it madePakistan to be the 5th largest countryin the world for Suzuki automobiles.This result is truly outstanding andclearly reflects the Pakistani customers’confidence in Suzuki automobiles, hesaid.As a marketer this spirit and customerstrust keeps us going and gives us theinspiration to introduce new models inPakistan, he added.

Since 1993, when we launchedWagon R in Japan, it is the

Brand that has special positionin the Suzuki Portfolio. Last

year we celebrated thismemorial 20th anniversary, andcould achieve 4 million of totaldomestic sales of Wagon R asa proof of to be loved vehiclesfor 20 years long by Japanese

people.He hoped that Wagon R will

cater to the requirements ofPakistani customers and very

soon will become the mostpopular car in its segment.

Suzuki Motor Corporation will continueto recognize Pakistan as one of the mostimportant markets and will keepproviding newer and newer models toenhance the customers way of life.The two above executives did notmention about the localization level oflocal parts in Wagon R. The companymust have invested in rupees or othercurrency for the introduction of newcar but the speech of the exectutiveswere silent on this.

For many Pakistani customers,who were already looking

forward for a replacement ofdecades-old Mehran 800cc

model with a new 800cc car,must be feeling disappointedas the company introduced1,000cc instead of 800cc

model.It means that customers will have towait for more years and keeppurchasing outdated Mehran whichdoes not exist in any country of theworld.People think that Suzuki MotorCorporation should have first replacedMehran with a new 800cc car and thenhave brought Wagon R in Pakistan aspeople are sick of Mehran design, color,old engines, unimpressive dash board,shocking suspension, old fashionedsteering design etc. Certainly a new800cc model would have definitelycoasted cheaper than Wagon R.Mehran’s falling sales perhaps reflectbuyers’ losing confidence on it whichhad actually driven the country’s vendorindustry.Mehran is almost same as it was firstintroduced in Pakistan in 1990. Onlythe head lights, front grill, back light,left side of dash board etc have changedwhich is not an achievement in termsof localisation of parts. The companytook decades in rolling out Euro IIengine in Mehran from last year. Theentire design out look has beenmaintained since 1990 and nogovernments have taken any actionagainst the company rolling outoutdated design.The Pak Suzuki must have recoveredthe cost of jigs and fixtures and otherinvestments made in Mehran butmiserably the deletion level in Mehranhad come to halt at 70 per cent for manyyears instead of crossing 90 per centsince 1990.The company continued to enhance theprices of Mehran three to four times ayear since 1990 linking to exchange rateparity thus suggesting that no seriousefforts we re made to imp rovelocalization.Perhaps the company looks confidenteven if its sales are falling as at leastMehran is still an option for those whocannot afford Daihatsu and other smallengine power used cars.....

Pakistan China Motorcycle Industry Council (PCMIC) voiced strongsupport to the government in its efforts to increase revenuecollection and streamline the taxation structure of the country.PCMIC Budget proposals 2014-15 are for rapid documentation ofeconomy to boost tax collection and to encourage the FDI inPakistan

The Patriot Prime Minister MianMuhammad Nawaz Sharif, the last hope For Pakistan

By now, almost all Pakistanis must haveheard about that what the countryd e s p e r a te l y n e e d s i s h o n e s tleadership.Pakistanis are hard workingpeople. They have borne manyhar dshi p s w ith for t itude. Butunfortunately Pakistan did not getsincere and hardworking leadership.PCMIC believe that the Prime ministermian Muhammad nawaz sharif is thebest available leadership for Pakistan’sas he is working dayand night for Pakistan and to work tounite the nation on one Pakistaniagenda.In the Current Scenario of Pakistan theSupport of Nawaz Sharif governmentmeans to support Pakistan and tocontribute in the development ofPakistan as he announced and startedmany mega projects for Pakistan.peoples of Pakistan have responsibilityto provide the stability and should givecontinuity for at least two electoral termswhich is now necessary for Pakistan asAmer icans p eopl e a lway s gavecontinuity and to elect their existing andpast president for two terms instead tochange again and again the leadershipto avoid to damage the continuity of thegovernment policies for their countryand their people. We also have anotherexample of our neighbor and brotherlycountry China.At present the Mian Muhammad NawazSharif is about the only Pakistanipolitician that is most experienced andwell known internationally yet. It’s timethe nation to gave him an opportunityto develop Pakistan instead to gave

chance to untried and untested ex-cricketers, ex-soldiers to allow them tosend again the Pakistan far behind.The fact that after skirting on the fringeof the political hinterland for so manyyears he could make such a huge impactsays a great deal about the person. Heis scrupulously honest & patriot, has aclean record and a lot of administrativeabil ity. In choosing his team, hemust be careful not to acquire turncoatsl ike Mr. Ishaq Dar, Mr . ahsaniqbal, Mr. khurram Dastagir, Mr. SartajAziz and sure al l of his cabinetmembers.We are aware that Nawaz Sharif has anumber of serious challenges beforehim. But we also know that not onlyPakistan but the entire South Asia hasgreat expectations from him. He is a rayof hope amidst surrounding darkness.His experience, wisdom, patience andstatesmanship, his love for his countryand his deep desire to bring his peopleout of distress are strong positives tobring success to his efforts.No doubt, Pakistan is facing variouschallenges but present governmentunder an effective strategy of PrimeMinister Muhammad Shahbaz Sharifwill succeed in overcoming thesechallenges and Pakistan will soonb ec o me a de ve lop e d c ou ntr y .The development package of 32 billiondollars by China reflects confi-dence of Chinese leadership andthe government in the leadership ofPrime Minister Muhammad NawazSharif. Chinese manufacturers tofully benefit from this opportunity and


by Muhammed Yousuf ShaikhChairman PCMIC

continued on next Page

invest in various sectors includingenergy sector in Pakistan.

Budget Proposals 2014-15by PCMIC:POLICY FOR SMALL ANDMEDIUM MOTORCYCLEINDUSTRY: Government did notannounce any polic y for newlyestab lishe d small and mediummotorcycle units in all over Pakistan asSME motorcycle Industry proving cheaptransportation to the nation andemployment. There is need for theremoval of role’s of multiple regulatorybodies such as EDB, PSQCA & E&Tfrom motorcycle sector because this roleis a hurdle for small and mediummotorcycle industry for making againand again lengthy unnecessary paperwork. After the induction of Tariff BaseSystem by the Government for autosector the unnecessary role of allregulatory bodies should be removed.However, this institution is still workingand creating hurdles for the industryinstead to help in Researc h &development and export.SRO 656 dated June 22, 2006 and SRO496 dated June 9, 2007 is not in thefavor of newly established motorcycle

industry. These SROs favoring onlylargest producing units. Once approval& Permission granted by EDB , PSQCA,Excise and Taxation Departments of allprovinces and registration with sales taxdepartment (FBR) should be enough forthe running of motorcycle industry.Ministry of Commerce and Industrymust organize a committee to resolvethe issues of the industry withconsultation of PCMIC.Framework of SME Motorcycle Industry

National Policy must be based on thelong perspective to expand and establishSMEs in Pakistan to produce more andenhance trade. Establish and upgradethe industrial structure to enhanceproduction to meet the demand at homeand also export.Built motorcycle industry economiccluster s sui table to eac h loc al

e n v i r o n m e n t t o a c h i e v ecompetitiveness boost exports andachieve global standards. TDAP mustmaintain a close contact with TradeBodies for consultation to boosts exportsin the SMEs. TDAP must provide a seaton board to PCMIC.Provide free display of Pakistanimotorcycles to SME in Trade Fairs forat least two times to beginners. Providefree transportation of motorcycles fordisplay abroad. More trade delegationsmay be sponsored by TDAP to boostexports especially in regional blocks.Discourage non-supportive governmentpolicies, high taxation, high-riskenvironment etc. for SME exporters.To boost exports and meet the demandat home, prudential regulations are notclear and not observed by banks. Thesemust be fully explained implemented inletter and spirit also limit of 2 millionprime minister youth loans must beraised to 5 millions for exportingmotorcycle SMEs. Establishment ofmotorcyc le industrial zones forexporting motorcycle SMEs with 1, 2, 3& 4 kanal plots provided on installments.Subsidy to SMEs on gas & electricitymay be provided to motorcy cleexporters.

SUPPLY OF WATER,



ELECTRICITY & GAS ATLOW TARIFF TO THEINDUSTRIAL UNITS:Electricity, water and gas are the integralparts of industries, play a very importantrole in production and price factors. Thepresent rates are so high that exportersare facing difficulties to competeinternational markets. Frequent loadshedding and electricity break down alsocause delay in exporting their productsin time. It is suggested that governmentshould take concrete measures toprovide continuous and uninterruptedsupply of gas, water and electricity. It isalso suggested that the rates of gas, water& electricity should be charged on thesame scale as for the fertilizer industryin order to compete in the internationalmarket.

RESEARCH ANDDEVELOPMENT:The research and development activityfor promotion of exports is presentlyvery low. In the new International traderegime, research & development haveassumed great importance and havebecome necessary for survival of exporttrade. It is suggested that research &development should be made a strongfocal point of textile trade bodies and

necessary funds should be extended forresearch and development.

SKILLED WORKER ANDTECHNICIANS:While the industry in the country is upg r ad i ng a n d m ode r n i z i n g it smanuf actur ing an d pr oduct i vetechniques with new and state of the artmachinery, there is an urgent need fortraining the workers and technicians onthe computerized machinery. Skilltraining centers adjacent to industrialareas should be established onpermanent basis to ensure appropriatesupply line of trained and skilled

workers.

SPECIFICADMINISTRATIVEMEASURES INCENTIVESFOR INVESTMENT:The Government is very much keen tobring foreign and local investment inthe country for the economic revival. Inthis regard, unless the tariff of inputs isreduced, it would not be possible.Therefore there is a dire need to reducetariff of Electricity, Gas and Income Tax,Sales Tax etc, so that foreign and localinvestment may come out and Trade &Industries developed, creating jobopportunities to unemployed youth ofthe country or five years tax holiday beprovided to new industries in lessdeveloped areas bas an incentive.

CONSISTENCY IN TAX,TRADE & INDUSTRIALPOLICIES:The first and foremost, surety that theIndustri a l ists Trade rs nee d i sconsistency in the Tax policies. Time totime issuance of SROs by Bureaucratsuproots the Investment cl imate.SMUGGLING In order to combatsmuggling it is suggested that onsmuggled prone item, the Custom Dutyshould be levied at the rate of Ten


Percent. Valuation rules be amended inaccordance with WTO agreements.Pakistan China Motorcycle IndustryCouncil (PCMIC) voiced strong supportto the government in its efforts toincrease revenue collection andstreamline the taxation structure of thecountry. Submitting in detail PCMIC2014-15 budgetProposals to FederalBoard of Revenue (FBR) PCMICappreciated the ongoing engagementinitiative of Chairman FBR Tariq Bajwaand Shahid Hussain Asad memberInland Revenue (IR).The PCMIC key recommendationsconsider restructuring taxation systemto facilitate investment and economicactivity, facilitate the honest taxpayersthrough timely settlement of issues,that all types of income are subjectto tax, SRO’s are judicially elim-inated and documentation of theeconomy be accelerated without anycompromise.Other key proposals discussed werelowering of corporate tax rates,elimination or rationalisation ofminimum tax regime, faster processingof tax refunds, increasing incentives forattracting FDI and involvement ofPCMIC in the exercise to review existingSROs to ensure minimum impact onFDI and continuing documentation ofthe economy.More importantly increased taxcollections should be made from thosewho have so far kept themselves out ofthe tax net to give confidence to thehonest taxpayers and to take out theroot cause of unethical businesspractices in the country.At the same time, PCMIC has alsorecommended that new taxpayersshould be brought into the tax net byinitiatives, which convince them aboutthe benefits of paying proper taxesrather than through coercion orharassment.Presently, a very low taxpayers' base(about 1.0 million with a population ofabout 170.0 million) exist in the country.The filing of tax returns be mademandatory for persons who have a creditcard in their name; have taken apersonal loan from any financialinstitution; travelled outside Pakistanduring last financial year; members ofa private club and own urban propertyof more than 240 square yards orequivalent or an apartment with coveredarea of more than 1,500 square feet.

For many manufacturing units and retailwholesale trade currently not in the taxnet, following is proposed: Registrationof units with the tax authorities whichhave either a commercial or an industrialutility connection. For retail outletsop erating with domestic util ityconnections, the minimum size of 500square feet is recommended forregistration. All this information is easilyavailable and will lead to greaterdocumentation of the economy, hencegreater tax collection.The formal sector in Pakistan faces anun f a i r c om p e t i t i o n f r o m t heundocumented sectors of the economy.Pakistan China Motorcycle IndustryCouncil (PCMIC) supports an across theboard implementation of the ValueAdded Tax (VAT).It further proposed that the real estatedevelopers should be taxed on a persquare foot basis for built up propertyand a per square yard basis on landdeveloped for sale. However, housesconstructed on plots of less than 100square yards or equivalent andapartments with a covered area of lessthan 800 square feet as well asdeveloped plots of less than 120 squareyards in residential areas should beexempt from tax. This should only beavailable if the taxpayer does not alreadyhave a house, plot or apartmentregistered in his name.The PCMIC has also proposed measuresto deal with the issue of across the boardmassive under invoicing, dumping ofimported products. It is proposed thatdepending on industry input, values arefixed for import consignments; basis ofvaluation can be origin, weight, volumeetc. For items prone to under invoicingand misdeclaration designate one or twoports (including the dry ports) forclearing of import consignments. Thiswill allow better monitoring of theimport consignments.

Having a budget is simply astrategy for keeping your cost

resonable and caluculated.

by Muhammed Yousuf Shaikh

PCMIC Pakistan Office;-79-A, Phase I, Sunder Industrial Estate,

Behind PIE Head office,

Lahore.Pakistan. Cell # +92 300 2613692

PCMIC China Office:-

: 0086 23 61729263

Skype live: yousufshaikhemail:[email protected],pakc

[email protected],

www.facebook.com/PCMIC.orgwww.linkedin.com/in/yousufshaikh

Muhammad Yousuf Shaikh, AnAuto Industry Consultant,Motorcycle Industry Expert,Motorcycle Designer, ChinaSou rc i n g Ex pe r t , Se r i alEntrepreneur and the Founder& Chairman of Pakistan ChinaMotorcycle Industry Council(PCMIC), offers his analysis ofthe motorcycle trade & industrytrends from Pakistan & China.The Chairman PCMIC workingwith motorcycle trade & industryfor over two decades, Yousufbelieve that new projects couldhelp motorcycle industry todesign and produce new design,new tech & large displacementmotorcycles in Pakistan tocompete with Indian motorcycleindustry as Pakistan offeredexclusive incentives in taxationon new entrant to manufacturenew design, new tech & largedisplacement motorcycle. Forfurther details and for assistancep l e a s e e m a i l a tpakchi n a. mi c@gmai l . co m



AutoMark Magazine International

International News in briefby Salman Hanif

Hino Motors Manufacturing (Malaysia)Sdn. Bhd., the Malaysian manufacturingsubsidiary of Hino Motors, Ltd., held aline-off ceremony to celebrate the startof production at its new plant on April17.Present at the simple ceremony wereexecutives from UMW Toyota MotorSdn. Bhd. and Assembly Services Sdn.Bhd., which had been producing Hinobrand vehicles to date, as well asexecutives from MBM Resources Berhad(MBMR), Hino’s longtime partner inMalaysia. Also in attendance wereManaging Director Ikuo Shibano, Hinostaff and Hino Motors Sales (Malaysia)Sdn. Bhd. Managing Director NobuyukiTanaka. The new factory has adoptedthe latest designs for employeesafety.Malaysia is quickly growing as Hino’sthird major ASEAN market, and isexpected to continue growing as a majormarket after Indonesia and Thailand.As well as giving the company sufficientcapacity to meet increasing demand,producing vehicles in this own newfactory will help the company establisha supply system capable of flexiblyaccommodating market needs for arange of specifications and lead times.Hino is committed to contributing tothe automotive industry and logistics ofMalaysia, as well as the progress of itslocal communities.*Automark Magazine is not responsiblefor the content of this news release.

Hino Motors startsproduction in

Malaysia

Just nine months after the official groundbreaking ceremony,Hino Motors Manufacturing (Malaysia) Sdn Bhd (HMMMY) hasrolled out the first Hino vehicle manufactured at its new plantin Negeri Sembilan.

Scania has won a public tender in Milan,Italy, to supply up to 200 trucks forrefuse collection. The order includesservice contracts for the vehicles.The trucks will be supplied to AmsaS.p.A., a provider of street cleaning andwaste management services, whichoperates in both centralMilanandsurrounding municipalities . Thecompany issued the tender with the aimof strengthening the fleet of vehiclesused by its urban refuse collectionservice.Scania and its bodybuilding partnerFarid Industrie worked together on thetender application to produce aframework agreement for rear-loadertrucks. The agreement will meandelivery of up to 100 diesel trucks andup to 100 compressed natural gas (CNG)trucks over a period of 24 months fromthe signing of the contract. The vehicleswill be 3-axle Scania P-series trucks and

will be powered by a 9-litre 250 or 280hp engine.“This order is extremely important as itrepresents further advancement of ourrelationship with both AMSA and FaridIndustrie,” says Franco Fenoglio,Managing Director at Italscania S.p.A.“We will supply the client with a high-quality product, tailor-made for thisspecific application. The Euro 6 enginerange, which includes diesel and gasversions, is the perfect choice foroperators with strict environmentalsustainability demands.”The vehicles are covered by servicecontracts through Scania’s workshopnetwork.The close collaboration with FaridIndustrie has al lowed Scania tosignificantly increase its market sharein the public and special-purposesegments in Italy over the past 18months.

Scania to deliver200 refuse trucksto Italy

Fiat-Chrysler officially announced onlast month a deal with GuangzhouAutomobile Group Co., Ltd. in China,which will now enable the former tomanufacture three variations of the Jeepbrand in the country by 2015The plans involve the investment of $755million, or 4.7 billion yuan, in a newplant that should boost production by60,000 vehicles.

Fiat-Chrysler ToManufacture JeepsIn China

Toyota Motor Corp is considering

significantly expanding its productioncapacity in China as is seeks to catch upwith global rivals in the world's largestauto market, a senior executive said onlast month.Toyota, the world's largest carmaker, isaiming to double sales in China to twomillion vehicles, a figure its China chiefHiroji Onishi said was the "minimumlevel" necessary to keep up with marketleaders Volkswagen AG and GeneralMotors Co.He did not set a timeframe for theincrease."Because of the stronger push made bythe US and European automakers, oursales volume has been growing butour market share has been reduced tonearly half of what it was before," Onishitold reporters at the Auto China carshow."Our honest feeling is that we haveto do something about our red-uced presence," he added, withoutgiving a figure for the production

increase.Toyota currently has an annual vehicleproduction capacity of around onemillion vehicles in China. It operatesjoint ventures with China FAWGroup Corp andGuangzhou AutomobileGroup .Onishi said Toyota could expandcapacity via existing facilities locatedinland, such as Changchun andChengdu. He did not give a costestimate.Toyota is planning to introduce at least15 new or redesigned models in Chinaby end-2017, an executive said onSunday. It will also start manufacturingand selling Corolla and Levin sedanswith a locally made gas-electric hybridsystem in 2015.Toyota expects hybrid models to accountfor about 20% of the sales of its Corollaseries, which include the Levin, in thefuture, Onishi said. Toyota last year soldaround 150,000 cars in the Corolla seriesin China.


A Toyota Levin car on display at theChina International Exhibition

Center during the Beijing Interna-tional Automotive Exhibition in

Beijing on April 20, 2014.

Toyota considersexpanding China

productioncapacity

British luxury car maker Jaguar LandRover (JLR) is reportedly planning tocommence operations at a local carassembly plant in China by the end of2014.The move would allow the car maker toevade 25% import tariff levied by Chinaand also increase sales by capitalizingon the growing Chinese market.The company is planning to build RangeRover SUVs at the plant, in collaborationwith its Chinese venture with CheryAutomobile and make it available byearly 2015.Jaguar Land Rover China President BobGrace said the company started to makethe first prototype bodies this week, andit is almost a miracle that has come outof the ground in such a short period oftime."It's going to be a product from the LandRover stable, so it's going to be an SUV,"Grace added.With the commencement of localproduction, the company is expected todecrease prices by 15%, while the plantis expected to have an initial productioncapacity of 130,000 vehicles per year...

Jaguar Land Roverto start carassembly in

China

S r i L a n k a - b a s e d a u t o p a r t smanufacturer Micro Car has opened anew motor car assembling plant inPolgahawela export processing zone.The new facility, which represents thecompany's first and only car assemblingplant in the region, was opened by SriLanka President Mahinda Rajapaksa.According to the Micro Car chairmanLawrence Perera, the new plant will havethe facilities to assemble 2,800 vehiclesper month.With the launch, the car maker expects

to save reduce the costs of saving moneyspent by manufacturing vehicle spareparts within the country.Additionally, the export of parts toNepal, Pakistan, Bangladesh andMaldives is expected to provide foreignrevenue to the nation.Founded in 1995, the companymanufactures vehicles such as the1000cc four cylinder gasoline engineMicro Privilege, Micro MPV Junior vanand the Micro Trend hatchback...

Micro Car opens first assemblyplant in Sri Lanka

AutoMark Magazine International

MADE IN PAKISTAN MOTORCYCLESRETAIL PRICE LIST

70cc Motorcycle

125cc Motorcycle 100cc MotorcycleBrand & Model Name

Super Star SS-125

Super Star SS-125 DLX

Honda CG-125 std Euro II

Honda CG-125 DX

Ravi Storm 125 Model 2014

YD Sports 125cc

No.

1.

2.

3.

4.

5.

6.

Retail Price

Rs. 59,000/=

Rs. 67,000/=

Rs. 99,000/=

Rs. 119,000/=

Rs. 112,000/=

Rs. 10,6000/=

Brand &Model Name

Honda Pridor

Super Star SS-100

Super Power SP-100

Yamaha YD100 Mini

Yamaha Junoon 100cc

No.

1.

2.

3.

4.

5.

Retail Price

Rs. 84,000/=

Rs. 57,000/=

Rs. 60,000/=

Rs. 65,500/=

Rs. 79,300/=

Suzuki Motorcycle(Heavy Bikes)

Suzuki Motorcycle

Product &

Model Name

Ravi Hamsafar-70

Sitara GT-70

Super Star SS-70

Super Power SP-70

Super Power Delux

Unique UD-70

Bionic AS-70

Retail Price

Rs. 45,450/=

Rs. 40,000/=

Rs. 44,000/=

Rs. 44,700/=

Rs. 48,200/=

Rs. 44,000/=

Rs. 44,500/=

Sr./

No.

8.

9.

10.

11.

12.

13.

14.

Retail Price

Rs. 50,400/=

Rs. 46,000/=

Rs. 47,000/=

Rs. 68,500/=

Rs. 72,500/=

Rs. 43,000/=

Rs. 46,950/=

Product &

Model Name

Dhoom YD-70

Hero RF-70

Hero RF-70 Plus

Honda CD-70

Honda CD Dream

Hi-Speed SR-70

Ravi Premium R1

Sr./

No.

1.

2.

3.

4.

5.

6.

7.

Sr./

No.

1.

2.

3.

4.

Product &

Model NameRetail Price

Inazuma GW 250

Intruder M800

Hayasuba GSX1300R

Bandit GSF650SA

Rs. 725,000/=

Rs. 1,600,000/=

Rs. 2,500,000/=

Rs. 1,500,000/=

Price update: May-2014

Sr./

No.

1.

2.

3.

4.

5.

Product &

Model NameSD110 Sprinter ECO

SD110 Sprinter ECO Del

SD110 Raider

GS-150 Euro-II

GD 110 Euro-II

Retail Price

Rs. 88,400/=

Rs. 83,400/=

Rs. 96,000/=

Rs. 119,500/=

Rs. 109,900/=

www.automark.pk


Monthly AutoMark Magazine - International

Rs. 699,000

Rs. 799,000

Rs. 844,000

Rs. 1699,000

Hilux Pickup 4x2 scModel Price

Brand New Toyota Hilux Pickup, 4x2, 2500ccSingle Cabin, White only, Hilux STD

Rs. 1,859,500

Toyota HILUX 2494cc, Diesel TurboCharger Common Rail Engine,4x4 Double Cabin - Standard Model

Hilux Pickup 4x4 E

Rs. 3,109,500

Model Price

AL-HAJ FAW MOTORSModel Price

PM Auto Industries (Pvt) Ltd.Model Price

Faw Truck Super 3 Ton (3200cc) Rs. 1,260,000Faw Truck Prime 2 Ton (2600cc) Rs. 1,034,000

DFSK - Mini Truck 2700MM Deck Rs. 763,000DFSK - Mini Truck 2500MM Deck

DFSK - Mini Truck (Double Cabin-AC)1400MM Deck Introductory Price

Rs. 731,000

DAIHATSUModel Price

Sokon - Mini Truck (1050cc)

Rs. 950,000

DFSK - Mini Truck (DoubleCabin Non-AC) 1400MM DeckIntroductory Price

Rs. 900,000

Sokon - MPV 11 Seater (1300cc) DFSK - MPV

11 Seater (Without AC) Rs. 1,034,00011 Seater (Dual AC) Rs. 1,084,00011 Seater (Dual AC-Power Steering) Rs. 1,134,00011 Seater (Dual AC - PowerSteering +Power Window)

Rs. 1,145,000

Sokon - MPV 07 Seater (1050cc) DFSK

Without AC Rs. 817,000

Price List - Ex Factory (Hyderabad)

Tractor Euro Ford 85 HPTractor Euro Ford 60 HPTractor Euro Ford 50 HP

Rs. 977,000Rs. 740,000Rs. 685,000

Sokon - Cargo Van 1050cc DFSK Rs. 840,000

With Dual AC Rs. 887,000Dual AC - Power Steering Rs. 928,000Dual AC - Power Steering+Power Window

Rs. 938,000DAIHATSU

Model Price

TOYOTA VIGO

Rs. 3,423,500Vigo Champ M/T

Vigo Champ A/T Rs. 3,623,500

(WHITE ,BLACK,STRONG BLUE & SILVER)

(WHITE ,BLACK,STRONG BLUE & SILVER)

Model Price

HYUNDAI

Model Price

HONDA

Honda City Prosmatec 1300cc

Honda Aspire Manual

Rs. 1,663,000

Honda City Manual 1300cc Rs. 1,522,000

Honda Civic VTI Manual 1800cc

Honda Civic VTI Manual SR (Oriel)

Rs. 2,156,000

Rs. 2,388,000

Honda Aspire Prosmatec

Rs. 2,035,000

Rs. 2,267,000

Honda Civic VTI Prosmatec SR (Oriel)

Honda Civic VTI Prosmatec 1800cc

Rs. 1,672,000Rs. 1,814,000

Honda CR-Z Sports Hybird Manual

Honda CR-Z Sports Hybird Automatic

Rs. 3,286,000

Rs. 3,366,000

SUZUKIModel PriceModel Price

TOYOTA COROLLAModel Price

GLI VVT-i 1.3 M/T 1299cc Petrol Rs. 1,682,500

2.OD STD 2000cc Rs. 1,855,800

GLI VVT-i 1299cc LE Rs. 1,712,500

Toyota Avanza (Up Specfication) Rs. 2,575,000

ALTIS 1.6L Dual VVT-i AT SUNROOF Rs. 2,102,500

ALTIS 1.6L Dual VVT-i AT Rs. 2,012,500

Rs. 2,007,500ALTIS 1.6L Dual VVT-i MT SUNROOF

ALTIS 1.6L Dual VVT-i M/T Rs. 1,912,500

Hiace Commuter STD 3.0L Diesel Rs. 3,433,000

Hiace Commuter STD 2.7L - GASLOLINE Rs. 3,433,500

XLI VVT-i 1.3 M/T 1299cc Petrol Rs. 1,542,500XLI VVT-i LE 1.3 M/T 1299cc Petrol Rs. 1,557,500

Price updated May- 2014

Sportivo, 1600cc M/T

Sportivo, 1600cc A/T

Fortuner 2700cc petrol

Rs. 2,109,000

Rs. 2,217,500

Rs. 5,748,500

FAW Carrier

FAW X-PV Std

FAW X-PV A/c

Sirius S80

Car / Light Vehicle Price List

Rs. 1,221,000

MEHRAN VX 800cc Euro II

MEHRAN VXR 800cc Euro II

Rs. 620,000

Rs. 678,000

SUZUKI SWIFT 1.3L DXSUZUKI SWIFT 1.3L DLX Rs. 1,282,000

SUZUKI SWIFT 1.3L Automatic Rs. 1,418,000

LIANA 1.3L RXI MT PETROL

CULTUS EFI VXR Euro II

LIANA 1.3L RXI MT (CNG)

BOLAN VAN VX 800cc E2

Rs. 1,034,000

Rs. 1,365,000

Rs. 1,444,000

Rs. 695,000

APV 1.5L GLX MT (Petrol) Rs. 2,418,000

BOLAN VAN VX 800ccm (M)E2 Rs. 7000,000SUZUKI VAN CARGO Euro II Rs. 666,000

RAVI PICK-UP STD 800cc E2 Rs. 637,000RAVI PICK-UP STD 800cc (M) E2 Rs. 642,000

WAGON-R VX 1000cc Euro II Rs. 899,000

WAGON-R VXR 1000cc Euro II Rs. 1049,000WAGON-R VXL 1000cc Euro II Rs. 1089,000

www.automark.pk

18001800

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May-2014

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International Heavy Duty Trucks - Update


Heavy duty Trucks market review (based on 2011 result)Total market of New Heavy Duty Trucks 86,200 unitsincluding:Local brands 53,000 UnitsEuropean brands 27,000 UnitsOther 6,200 Units

In local brands Kamaz is the leader with 31,639 HeavyTrucks with GVW > 16t. Totally Kamaz produced 39,073and 38,273 of them are in the range of GVW from 14t to30t.Average enduser price for Kamaz truck is 55,000 USD.It seems that Kamaz have a good lobby in the governmentas they are getting favorable taxes and practically 100%orders for army.Second in locals is Byelorussian MAZ with 14% share ofthe market. There a lot of rumors that Kamaz ans MAZ aregoing to do a joint venture.Third is Uralaz with 9% of the market. The loss of themilitary contracts may have dare consequence for Uralaz.MAN is the leader of European brands sales in Russia withmore the 7,000 Units.Second is Scania with 6,800 Units;Volvo 5,400 Units;Mercedes 2,900 Units;Iveco 1,980 Units;DAF 1,900 Units;And Renault 1,200 Units;4,400 Used Heavy trucks where imported to Russia.The leader if Volvo with 960 units.162 units where imported from USA with average price70,000 USD.

Russian marketof Heavy Duty

Trucks

Than You ThinkDespite the fact the local assemblyof hybrid cars cannot become a practicalr e a l i t y , Pa k i s ta n A u to mo t i veManufacturers Association (PAMA),a body formed to look after theinterest of local auto industry, hastaken up the case of hybrid vehiclesimport.The peanut import of Hybrid vehiclesespecially by the Indus Motor Company(IMC) is certainly not an effortor a milestone that will open newjob avenues or bring new investmentbut its import will only drain outc oun tr y’ s some p re ci ous for e-ign exchange. The imports areunlikely to cross the 100 mark thisyear as assemblers are not gettingany positive response from thecustomers.By always criticising used car importsand its lobby, what PAMA is doing nowis a sheer surprise just to defend thecase of import of new hybrid vehiclesby IMC and Honda Atlas. There mustbe a big difference in the working of thelocal industry and the used carimporters.These two car assemblers have alwaysstrongly lamented the import of usedcars under various schemes but theseassemblers have remained active in

importing brand new vehicles of higherengine powers just to cater the need ofa particular class instead of pavingthe way for assembly of these costlyvehicles.The assemblers introduced cars likeToyota Camry, Rav 4, Land Cruiser,Land Cruiser Prado, Toyota Avanza,Daihatsu Terios, Honda CR-V andHonda Accord, but failed to lure eliteclass due to their very high prices.Perhaps, PAMA DG has never taken upthe case of import duty and taxes on theabove c ost ly vehicles with thegovernment but this time he is moreserious to see hybrid vehicles plying onthe roads in larger numbers.By seeing lukewarm response of ToyotaHybrid and Honda Hybrid from thecustomers, Director General PAMA, stillwants hybrid vehicles becoming moreaffordable for the filthy rich consumers.According to him it is only possible whenthe government will amend the SRO-499(I)/2013. He is trying to twist theSRO just to show how important hybridvehicle is for Pakistani and fewcustomers.Whenever journalists dare to questionDG PAMA or senior auto industryexecutives about introduction of newmodels in Pakistan, the reply came fromthese auto geniuses and experts is loadedwith ifs and buts over future survival of

new models based on volumes and itsmarket price.Here a question arises how PAMA ismaking a case for hybrid vehicle importon behalf of the local industry despiteits uncertain and low future salesprospects.PAMA DG believes that amending SROin favor of the industry will fetchadditional revenue for the governmenton import and sale of such vehicles. ButDG PAMA did not elaborate how muchvolume of hybrid car import heanticipates that could bring revolutionin revenue generation for the cashstarved government. He also did notgive details about foreign exchangespending in case demand for such costlyvehicles goes up.What DG PAMA here actually meansamending SRO in favor of the industryas it seems that he is trying to give animpression that the industry actuallyproduces hybrid vehicles in Pakistanor intends to make huge investmentto roll out costly vehicles soon infuture.Looking forward to see thriving importsof hybrid vehicles, DG PAMA hassubmitted proposals of the local autoindustry for budget 2014-15 to thegovernment demanding that theindustry needs relief in sales tax at bothimport and supply stage of hybrid

Exclusive Article by Owais Khan



vehicles as this concession will leadto the improvement of demand fornew hybrid vehicles introduced byOEMs backed by complete warranty andafter sale support to protect consumerrights.It is worth adding here that under SRO499(I)/2013 Hybrid vehicles are allowedto be imported at a concessionary rateto duties and taxes in Complete Built-up Unit (CBU) condition only.The present concession applicableduty structure in this regard is:100% for upto 1200cc; 50% for1201cc to 1800cc; and 25% for 1801 to2500cc.D G Pa ma f urth er s tated thatdiscrimination in the application of salestax on sale of Hybrid Electric Vehicles(HEV) is providing undue advantage toundocumented sector which should beeliminated and a level playing field becreated for everyone. It is to be notedthat through SRO-499(1)/2013 a relieffrom custom duty, sales tax and incometax was provided only on the import ofHybrid Electric Vehicles and not at theretail stage.However, local sale of these vehicles bya registered person is subject to salestax at normal rate i.e. 17 per cent. ‘Thereis, therefore, a discrimination thatimport by an unregistered dealer will becheaper than import and local sale bythe OEMs. This has led to disadvantageto registered persons, while importersof used vehicles get full relief at importstage, thereby helping undocumentedsector at the expense of registeredp er sons,’ r easoned D G PA MA.

Market experts expressed surprise overthe seriousness of PAMA in forwardingthe case of hybrid imports whose only

beneficiary can be counted on fingersand it will only prove a dent to theforeign exchange reserves.They said has PAMA ever taken up thecase of Pak Suzuki Motor CompanyLimited (PSMCL) for assemblingdecades old models and continuouslyraising the prices on Yen-Dollar-Rupeeparity excuses and also not achievingrequired localization targets especiallyin Suzuki Mehran, Suzuki Bolan andSuzuki Cultus. Why PAMA did notquestion Pak Suzuki and otherassemblers for not sharing price cutwhen the rupee gains strength againstYen and Dollar. Instead the assemblerswere quick enough to raise prices onrupee depreciation against majorcurrencies.Since these three models are notavailable and assembled in other partsof world, it is very hard to justify theprices being charged by its assemblersin local currency. Perhaps in PAMA’sdictionary and opinion, this is calledhigher localization in which vendors ofthese three cars have been making sameparts for three decades and surprisinglythe localization levels in Mehran andBolan were confined to 70 per cent forsame period.Sources said that the concernedindustries officials in the previous andcurrent governments have shownserious disappointment over theexistence of Mehran especially but itsassembler is powerful enough tocontinue its assembly without any fearof being questioned and grilled by thegovernment.Why PAMA was silent when theassemblers were taking full payment ofcars booked by the customers and takingfour to six months time to handover the

vehicles.Taking the case of Hybrid vehicles showsthe upper hand of IMC and Honda Atlason the PAMA.

Officials in car industry said that actuallythe government had opened the way forthe industry to import hybrid cars byproviding relief in duties and taxes inthe last year’s budget. So putting blameon the industry for encouraging importsof such costly vehicles does not makeany sense. The industry is just followingthe guidelines of the government onhybrid car import policy.Here experts said that the governmenthave also asked the assemblers so manytimes to reduce prices, improve quality,lower delivery timing, check premiumcharged by authorized dealers andimprove localization. What efforts havebeen made by the assemblers in thisregard...

Looking forward to see thrivingimportsof hybrid vehicles, DG PAMA hassubmitted proposals of the local autoindustry for budget 2014-15 to thegovernment demanding that theindustry needs relief in sales tax atboth import and supply stage of hybridvehicles as this concession will leadto the improvement of demand fornew hybrid vehicles introduced by OEMsbacked by complete warranty and aftersale support to protect consumerrights.

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