Karachi—The Auto Parts Manufacturing Industry is facing acute panic, fearing federal budget which is just few days away. Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) has conveyed its fears to the Ministry of Industries and Production for rejecting its proposed Tariff Based System (TBS) for automobile industry for the new budget.

According to informed sources PAAPAM Chairman, Razzak Ahmed, expressing PAAPAM’s dissatisfaction on the lists of importable parts provided by concerned authorities under TBS, has urged the ministry to reconsider their proposals before formal announcement in the budget.

Razzak, in his letter dated 25th May 2006 informed that PAAPAM was receiving numerous complaints from its Vendor members that a large number of components being manufactured locally were not included in the A-Max lists for cars, motorcycles, tractors, LCVs & LHVs. “Keeping in view the scarcity of time, we request you to please send us ‘C’ list of importable components of the above sectors for our study and review,” Razzak said.

It may be mentioned here that under the proposed Tariff Based System A-Max list comprises all the indigenized automobile parts, in case of import those parts should be liable to a maximum of fixed 50% rate of duty. On the other hand ‘C’ list includes all those parts which were not being manufactured in Pakistan, hence their import would be allowed by the government on about 30% rate of duty.

In this regard sources cited an example of a letter dated 24th May 2006 from fourteen vendors addressed to the Federal Minister of Industries and Production, and Chief Executive Officer, EDB, Ministry of Industries, Islamabad, in which they disclosed a number of locally developed parts of motorcycles erroneously put in ‘C’ List of TBS. They pointed out that shock absorber front and its components, shock absorber rear and its components,

switch assembly left/ right, neutral switch (isolating switch), ignition coil, and hardware were being manufactured and supplied locally by a number of vendors to the motorcycle OEMs.

Hence, they requested to shift these parts to the A-Max List rather than the ‘C’ List of TBS. These parts have already been deleted and being procured by the OEMs from the local vendors under the deletion programme of EDB. This will help the vendors as well as revenue collection by the CBR, the affected vendors concluded.

LAHORE: The Honda Atlas Cars Pakistan launched the country’s first Euro-3 compliant car Honda City-2006 at a ceremony held on Saturday.

Speaking on the occasion, Motohide Sudo, the Honda Motors Co Japan director, said that the automobile industry was rapidly evolving in Pakistan, which was an important member of the Asia-Oceania region. He assured that the company would continue to contribute to the economy of Pakistan.

Yusuf H Shirazi, the chairman of the company, said that the government had reduced incentives for localisation from 100 percent to as low as 50 to 65 percent. Furthermore, the government has also relaxed rules pertaining to the import of used cars through several schemes. He said that at a time when the automobile industry had started gaining confidence to make major investments, any shift in policies might have a dampening effect on the investment climate. He said that if the industry continued developing, it would not only be a foreign exchange saver but also a foreign exchange earner, which would turn Pakistan into a hub of investment, production and export.

The new Honda City offers refined interior and exterior and it would be available with its unique 1.3L cc I-DSI engine in both manual and automatic transmission and Vario options. The company has also launched the new City with 1.5L VTEC engine and Steermatic function for the first time in the country. pr

KARACHI - Automobile industry has made remarkable progress during the last few years. Despite low indigenous base, it has attracted almost Rs 100 billion investment. Rs 52 billion has come in direct manufacturing and Rs 35 billon in ancillary industry. If we add all the money put forth by the dealers throughout the country, the figure reaches benchmark and we can say that automobile is a billion rupee industry.
This is the only sector, which has received maximum foreign investment. Japan, Korea, U.K. China and the few other countries at a minor level have come to Pakistan and have invested in a big way in auto cars and other heavy vehicles. The foreign equity is about 50 per cent if seen on average context. Some people have said that the car glut is going on in the city.
A senior engineer of Pak Suzuki Motor Company said that Pakistanis are best human resource expert in technical and they are most economical when compared with labour of other countries.
With bonanza in car financing business, the sale has multiplied. Every month 3,000 cars are added into main stream only in Karachi. Equal number is also sold in other parts of the country.
The market strategy has been that all type of makes and models are offered for each class of people. Ranging from 800cc Suzuki small car to 2700cc to 2400cc car of other makes. Mercedez and
BMW have also got their own cliental.
Big show rooms around Shara-i- Faisal, Korangi Road, Rashid Minhas Road are filled with most modern model of the cars. When you pass these areas and have a look it seems that Pakistan is not a poor country but that it is a country of the rich, though few in numbers.
Every month at least according to the reports, 25,000 motor cycles are sold in the market throughout country. Chinese motor cycles are eyeing the market in a big way.
Karachi and Lahore have developed as hub for the manufacturing and assembling. Pakistan started as assembler in early 70’s. It was Mr Bhutto who encouraged the local production. After nationalization this was the first significant step. First came Bedford Motors with National Motors which became famous for transportation of goods. Later Suzuki Motor Company took over Awami Motors and started assembling small cars of 800 cc. A time came when every one was driving Suzuki cars.
People did not call half ton pick up, they called it a Suzuki. Till date the Suzuki Motor Company is at its zenith. Every year more than 60,000 cars are marketed. From next year the figure could exceed 100,000 per annum.
In show rooms most stylish and sturdy vehicles are displayed, At Park Tower Clifton we come across sports cars up to Rs 1000,000. A visitor said that in Karachi billion of rupee cars lie on road side. Seeing the car population one cannot say that it is a city of poor where 30 per cent live below poverty line.
Such as KIA motor’s 4WD Turbo, these days is on display with colours such as cosmos black and aspen silver making people relish the need for a cool jeep. Hyundai’s Sherzore is a big four wheeler more of a pickup, with seat belts and seat frames as a standard feature. But, the all time favorite of the people was none other than the Santro of Hyundai which is the trademark of Dewan Farooque Motors Limited. It has by now highly acclaimed better market place; with many people willing to afford the car. If you move around you see the Defenders, which is a Land Rover introduced by the Sigma Motors. This product was exclusively launched for the army personnel since 1994, but this year in August it was floated out for the general public. This vehicle has been assembled in Pakistan but brand is from the UK. It has two models namely 90SW and 110SW. According to Mr. Asim Qureshi, Assistant Manager Sigma Motors “ the prices cannot be curtailed because the vehicle has the latest dependable technology, which of coarse was not available in the specific models a few years back.”
Suzuki Motor Company is busy manufacturing brand new product Liana and to be marketed soon. This would be another success success story like the Suzuki Baleno which is still in the limelight on the streets of Karachi, said a dealer in DHA talking to the Nation. .
Chinese are also eyeing the market in a big way. The Karakoram Motors has projected their Chinese assembled product, at a low price. The cars were even named after the scenic places of Pakistan, such as Gilgit 800cc, Kalam 800cc and Kalash 800cc. The vehicles are fitted with cabin ventilation. The product is cheap and has been exclusively made for Pakistan.
Indus Motors has introduced Toyota’s Camry. Mr. Anwarullah Siddiqui, Assistant Manager, Indus Motor Company said that Toyota is a family car in Pakistan.

TOKYO (AFP) - Japan’s second biggest automaker Nissan said it will return to the market in Pakistan after five years, saying the country had a fast-expanding appetite for cars.

Nissan Motor exported cars for assembly in Pakistan from late 1996 until 2000, when it pulled out due to political uncertainties and a market perceived to be lacklustre, a company official said.

However, by Nissan’s figures, the market there has since boomed, with nearly 115,000 vehicles sold in Pakistan in 2004, up 51 percent from 2003 and more than triple compared with 2000.

“We are very excited to be part of the rapidly growing automobile market in Pakistan,” Yasuaki Hashimoto, vice president of marketing and sales for overseas markets, said in a statement.

Nissan Motor said it will export from Japan four models for sale in Pakistan — the Sunny and Cefiro sedans and the Patrol and X-Trail sports-utility vehicles.

Nissan’s initial sales target in Pakistan will be a modest 100 vehicles a month.

Pakistan has shown signs of coming out of a decade of economic doldrums with 6.4 percent growth last year. Prime Minister Shaukat Aziz has forecast growth will rise to 7.0 percent this year.

ISLAMABAD, February 03 (Online): Renald group of French investors companies will invest in automobile sector and review the situation to establish cars manufacturing unit in Pakistan, delegation of Renault group told Wasim Haqqie, Chairman Investment Board.
A high level delegation comprises four investors of Renald group met Chairman Investment Board here on Wednesday to review investing situation automobile sector in Pakistan.

Investors team include Director World Program for Logana, Director Project of Gerald Indiasilven Balen, Senor Manager Corporate Finance Stephen Sanaphelet and Chief World Purchase for Logana Gulsy Dalfer.

Chairman Investment Board told the delegation that atmosphere for investment in Pakistan is cordial, as policies have been formed to provide all type of facilities to foreign investors.

He said that investors should snatch the opportunity of investment in Pakistan because of its rapid economic progress.

The delegation appreciated investors friendly policies in Pakistan and said that economy of Pakistan is stabilizing and it will invest here.

KARACHI, Jan 4 Asia Pulse - Pak Suzuki has doubled the production of vehicles in less than two years, and has invested more than Rs2 billion (US$33.6 million) to further increase production, the company’s managing director Kenichi Ayukawa said.
He was briefing vice-chairman of the Planning Commission of Pakistan and chairman of the Engineering Development Board (EDB) Akram Sheikh, and chief co-ordinator of the Engineering Development Board Javed Akhtar Paracha during their visit to the plant and head office of Pak Suzuki Motor Company, Karachi.

According to a press release the managing director briefed Akram Sheikh that the company has already installed a state-of-the-art plastic shop that will cope with increasing demand of plastic components.

He said the new press shop would be commissioned by March 2005 that will cater to the requirement of body parts of all models. The expansion of paint shop will be functional in February 2005. After these enhancements the capacity will increase from current 50,000 units per annum to 80,000 units per annum.

Ayukawa explained that the company plans to inject CBUs in first quarter of 2005 to plug the demand gap, followed by the local manufacturing of these models from the year 2006 onwards.

LAHORE: A Nigeria-based joint venture of German and Chinese auto giants, National Motors intends to invest $25 million in Pakistan to establish an assembling plant for small trucks and large-sized prime movers.

“The production of this joint venture company is expected to start within a year, which will cater to the domestic as well as emerging regional markets,” said Inaam ul Haq, a local representative of the company while speaking to newsmen on Thursday.

He said that the company is currently manufacturing prime movers and small trucks in Nigeria under the brand name of National Trucks with the technical support of Styer (Germany) and its Chinese partners.

The company is owned by an expatriate Pakistani, Tariq Ashraf, who settled down in Nigeria about two decades ago and currently wanted to invest back home. National Motors is the largest truck manufacturers of Western Africa, Inaam said and added that their company has taken this decision following Pakistan government’s intention of conditionally allowing Indian goods pass through Pakistani territory.

After starting from the prime mover, the company would move to small trucks of 2.5 to five tonnes assembling which would cater to the domestic market, he said and added that they have no intention of entering the booming car-assembling sector of Pakistan.

He said that a delegation of National Motors Nigeria has already landed in China to discuss the possibilities of Chinese support for this project. After making necessary arrangements, the delegation is expected to land in Pakistan next week, he added.

The company has initially finalised Hub (Balochistan) as a possible place for its assembling plant, however, Gadoon Amazai and Hattar (NWFP) may be the possible alternatives depending upon the facilities being offered by respective provincial governments, he added. He said that the company is also considering shifting its major vendor base to Pakistan, which would help domestic engineering industry to flourish on a par with international standards.

KARACHI: Pak Suzuki Motor Company (PSMC) has doubled the production of its vehicles in a period of two years due to the ever-increasing demand of cars in the country.

This was stated by the Managing Director, PSMC, Kenichi Ayukawa while talking to newsmen at the Geo Motor Show here at Karachi Expo Centre on Saturday.

Ayukawa said that his company would be producing 65,000 units by the end of the year 2004 as compared to 30,000 units in 2002. He said that with the completion of its expansion plan worth Rs2 billion, the company would further increase its production to the tune of 30 per cent over 2004.

He disclosed that PSMC would soon be introducing two new models - Suzuki Liana and Grand Vitara XL-7 - in the local market.

He said that Pak Suzuki has the lowest waiting period that ranges from 2-4 months depending on the model and version. He, however, said that his company was trying to maintain minimum waiting period through restricted booking.

He said that as the company is going to increase production by 30 per cent from next year, the premium problem would be overcome to a large extent and people may take a sigh of relief.

ISLAMABAD: Liaquat Ali Jatoi, the federal minister for industries and production, Tuesday has invited Volvo Company to assemble cars and buses in Pakistan to get market share in the auto sector.

He said this while addressing launching ceremony of world’s renowned Volvo FM Truck of VPL Limited, a Swedish company here.

The minister inaugurated the FM truck on behalf of the Prime Minister Chaudhry Shujat Hussain due to his other important engagements. He said there is huge demand of cars and due to this the local car assemblers are not timely delivering the vehicles to the customers.

He said that the government would provide all assistance to the Volvo Company for assembling cars and buses in Pakistan and also stressed the need for transfer of technology.

In the past, Volvo implemented a comprehensive urban transport project in the city of Lahore, funded by Swedish government. Over the years, Volvo has also played an important role in the development of the road network in Pakistan, as Volvo dump trucks have been extensively used by both Pakistani and foreign companies working in this sector.

The Volvo FM truck will bring new technology standards and quality product at affordable price. It will be an important breakthrough in the construction industry and in the automobile sector.

It will play a very important role in the development of engineering sector of Pakistan by promoting and encouraging vendor industry in the private sector. Volvo FM truck will be a trendsetter in the production of commercial vehicles involving high level of technology and international standards, he maintained.

Mr Jatoi said greatest potential of Pakistan, after the textile sector, lies in the engineering sector and hoped that the introduction of FM truck launched by VPL Limited will help Pakistan’s transport sector to develop and achieve international standards, and inspire others to invest in this sector.

Kanooz Mohyuddin, managing director of VPL Limited, in his welcome address, asked the government to improve oil efficiency and make legislation for good vehicles on the road. He said the company would invest more in this sector.

Thomas Thurison, marketing manager of Volvo Swedish-Pakistan Company, said Volvo is a large producer of truck and buses in the world and have 130 markets. He asked the government to implement the EURO-3 standards in Pakistan.

Deputy chief of mission of Swedish embaasy in Pakistan also addressed on the occasion and said that the commercial relations between the two countries are expanding and Swedish investors are interested to invest in Pakistan. He said that Volvo has played a role in the road network in Pakistan and also helped in the environmental areas.