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Pakistan’s Premier Magazine for Industry

July 2011 Vol 4, Issue 07

MONTHLY

Editor :

Sub Editor :Asst. Editor :

Contribute Writers :

M. Hanif Memon

Dr. Raja Irfan SabirSumaiya Rizvi

Syed Mansoor AliDr. Raja Irfan SabirAli HassanMohammad Owais KhanKhurram SohailMohammad DanishOmar RashidiSaad SAleem

Imtiaz RastgarCEO, Rastgar Group &CBI External ExpertIslamabad

Abdul Majeed SheikhPresident,AOTS-ABK Dosokai,Karachi Regional Center &Consultant (MME),NED University - Karachi

Syed Mansoor AliBusiness ManagerCase NewHollandPakistan

J. PereiraGeneral ManagerProduct Support DivisionAl-Haj FAW Motors (Pvt) Ltd.Karachi

Engr. IHT FarooquiGeneral Manager PlantKarakoram Motors (Pvt) Ltd.,Karachi

Mustafa Hanif

Abdul Khaliq

Advisor :

Circulation Manager :

Graphic Designer :

Bye-bye CNGLack for planning, and improper utilization of naturalrecourses has marred our country’s economy right fromthe beginning, with closure of supply of CNG for threedays in Punjab and 2 days in Sindh on the cards, itappears we are heading towards complete failure.Unscheduled load shedding& less power generation hasalready pushed people to wall with no ray of hope fromany side to come out of this crisis. In such circumstances,denying meager available resources will further havecrushing impact on masses.Around a decade ago when CNG was introduced as fuel,massive campaigns were launched for shifting fromPetrol/Diesel to CNG. Depletion of natural resourcesand digging out alternate options for exhausted ones arethe top most priority of think tanks in western countries.Alas! We never had any such arrangement. Anyway! It’slate but not too late! Those sitting at the top echelonmust think wise and devise some strategy to preserveexisting one and explore more & more for the cominggenerations.All the stakeholders expressed great concern and rejectedthe recent news by ECC to increase in tariff andcurtailment of gas for CNG stations for 3-days in Punjaband 2-days in Sindh. The decision is one-sided and afatal blow to cripple CNG sector. Huge investment wasmade in the CNG sector in the light of Petroleum Policy1994, which assures that "The existing price differentialbetween industrial gas tariff and motor gasoline will bemaintained as an incentive for CNG USE". Upon thisassurance of 50:50 differential ratio the investment wasmade and 3200 CNG stations were established across thecountry with total investment of Rs.185 billion, while3 million CNG vehicles ply on the roads countrywidewhere public has invested Rs.115 billion in CNG kits.Approximately 6 percent CNG is used in the CNG sectorwhereas the revenue contribution is Rs.25 billion perannum.The usage of CNG has substitution of petrol of 3.44billion litres yearly, which leads to saving of foreignexchange worth $ 2.373 billion per annum. The paritybetween petrol and gas must be maintained, as pledgedby the government in the beginning, which is 50 percent.Any reduction/revision in gas sales price is not acceptablein any manner.Experts have already warned that the harsh decisionwould severely affect the economy and investment inthe CNG sector and the situation arising out of gascurtailment will not only affect the CNG users but willalso lead to layoff of human resource. Currently over500,000 people are directly and indirectly employed inCNG sector.Masses are not responsible for declined production ofgas, insufficient exploration and ignoring alternativesources of energy such as Iranian gas and Thar coal are.


The Monthly Magazine for Pakistan Automotive Sector Your trust is our success

CONTENTS

Chinese bike makers seek Shahbaz Sharif’s help ! 09-11Exclusive Article on Motorcycle Sector by Ali Hassan

Chinese-Cum-Pakistani Motorcycle 12assemblers refuse to cut price

Stakeholders upset over plan to bring CNG 13-14rates at par with petrol, CNGExclusive Article by M. Owais Khan

Impact of sales tax on Mechanization in Pakistan 15-16Exclusive Article by Syed Mansoor Ali

LORD Institute of Technology 17-18Technical Education - An Introductionby M. Yakoob Gaziani

Street Racing in Pakistan by Muhammad Danish 33

Four-wheel drive (4WD) 34Exclusive Article by Omar Rashdi

Computer Aided Designing in Automotive sector 35by Saad Saleem from NED University

High Speed Super Car 39Exclusive Article by Khurram Sohail from IMC

Chairman SDC Mian Akram Farid visited Islamabad 41Women Chamber of Commerce & Industry

China and the Challenge of Environmental Degradation 42-43Exclusive article by Raja Irfan Sabir from China

Shell ECO Marathon,the Past & the Present 44-45Exclusive Review by Shahzad Tabish from NED

D.S. Motors delevered 200 Unique motorcycles 48-49Ceremony Report

Motorcycles market prices 50-51M/s. Fateh Group participate on Russian Day in Karachi 52

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July - 2011 edition


Chinese bikemakers seekShahbazSharif ’shelp

Since the Chinese bike makers havema de deepe r i nroa ds va r i ousgovernment’s departments (either undersome pressure from leading bike makersor a routine bureaucratic practice) havebeen creating bottlenecks in theirsmooth functioning.When the assemblers do not have anyissues with the federal government’sd e pa rt me n t s , t h e pr o v i n c i a lgovernment’s departments becomeactive in creating hardships.Either in any circumstances, the Chinesebike markets have remained engaged inresolving scores of issues with the federala n d pro v i n c i a l g o v e rn me nt s ’departments.Perhaps some black sheep in thesedepartments feel that it is the right timeto make extra buck when the twowheeler industry is flourishing is

showing a positive growth in the countrythanks to the improved cash flow in therural economy on account of strongsupport prices of wheat, cotton,sugarcane and rice crops.In case of another good cash cropscoupled with further increase in supportprices this season, the rural buying willcertainly remain brisk thus givingfurther boost to the already rising sales.A leading bike maker feels that poortransportation in big cities followed byimproving farm to market access to

through an upgraded road network inrural areas are also attributed to therising growth in the two wheelersegment.The peoples’ government after cominginto power has never tried to check thebureaucratic hurdles knowing that itcould stifle growth in the two wheelerindustry which despite uncertaineconomic and polit ical turmoil andr ising pric es of motorcycles isperforming exceptionally well ascompared to other sectors. This industryhas also created new job opportunitiesboth in formal and informal sectorbesides bringing in more investmentsand vendor development.Association of Pakistan MotorcycleAssemblers (APMA), a group of Chinesebike makers, is now facing problemsfrom the Punjab government. The

Negative attitude of DG ExcisePunjab irks APMA

Chinese bikemakers seekShahbazSharif ’shelp !

ShamailAhmad KhawajaSecretary E & T

Punjab

M. Anwar RashidDirector General

E & T Punjab

Muhammad Altaf BaluchDeputy Secretary (Admn)

E & T Punjab

Masood-ul-HaqAdditional Secretary

E & T Punjab

Imran AslamDeputy Secretary (Tech.)

E & T Punjab

Mian MujtabaShuja-ur-Rehman

Minister E & TPunjab

by Alli Hassan

09www.automark.pk | July-2011

Automotive Sector - Exclusive Article


Association has sought intervention ofPunjab Chief Minister Mian ShahbazSharif to check the negative attitude ofDirector General Excise and Taxationfor adopting delaying tactics in issuanceof registration certificate for registrationof bikes in the big province.APMA said that instead of providing anyrelief to the two wheeler industry forbringing investment in the country andcreating new job avenues and new stepsshould have been taken to lure newinvestors – unfavorable conditionsespecially in Punjab is being created bythe DG Excise and Taxation without anycogent reasons.APMA said that due to negative attitudeof DG E&T the existing investors areworried and considering not to furtherexpand their business.The Association, in a letter to MrShahbaz Sharif, said that the assemblersroll out two wheelers in the market afterstrict monitoring by the EngineeringDevelopment Board (EDB) and PakistanStandard Quality Control Authority(PSQCA) and when assemblers requireregistration certificate from ExciseDepartment the DG E&T Punjabdeliberately causes problems forassemblers by holding back thecertificate for months.In case the assemblers request the DGfor urgent release of certificate then theDG becomes intolerable and threatensfor dire consequences. Even severalrequests have been made to SecretaryExcise but in vain.The bike makers have received a blowthis week due to ban on pillion ridingin Karachi owing to deteriorating lawand order situation.A bike maker said pillion riding hasalways led to decline in sales of bikes.Karachi has around one million bikesand estimated 2.5-3.0 million peopleused to travel on two wheelers daily.After ban on pillion riding, only onemillion people could travel on one bike.It has been noticed that two to threefriends working either on same officesor nearby offices/workplace used toshare Rs 100 petrol a day to reach their

respective jobs.The bike maker said that the official saledata has not arrived yet but sales in2010-2011 (including Japanese madebikes) has definitely crossed 1.5 millionas compared to 1.3899 million in thelast fiscal year.The costly Honda CDI 70cc at Rs 65,900and its other costly models are still themarket leader with sales of 517,163 unitsin July-May 2010-2011 as compared to438,069 units in the correspondingperiod of last financial year.The Engineering Development Board(EDB) has again reminded bike makerson June 27, 2011 that it is obligatory forthe importer-cum-assemblers ormanufacturer of vehicles, operatingunder the regulatory regime of SRO656(I) 2006 to maintain records ofinputs used for the assembly of vehicles

during a year and submit the same toEDB on the proforma as prescribedunder Annex-B of the said SRO. Noncompliances to the condition of SROnecessitates to conduction of audit inaddit ion to suspensi on or nonreva li dat i on of man uf ac t ur i ngcertificates and list of importablecomponents.The EDB has advised the manufacturersto provide comp lete informationpertaining to input records as per therequirements of the SRO for eachproduct/vehicle separately latest byAugust 15, 2011 on the formatsprescribed for imported components,locally manufactured inputs fromvendors and in-house manufacturedcomponents (hard and soft copy) underAnnex B of SRO 656 along withf o l l o w i n g a d d i t i o n a linformation/documents.Statement (hard and soft copy)c o n t a i n i n g mo n t h w i s e a n dproduct/model wise unit sold, sale price,total sales value, input tax, output tax,sales tax paid along with the hard copiesof sales tax returns and paymentchallans.List of vendors with complete addresses,phone, fax, email (hard and soft copy).List of importable components alongwith qua ntities purchased fromcommercial importer/trader during theyear 2010-2011 if any on separate sheet.The revalidation of the manufacturingcertificates and lists of importablecomponents to be imported during 2011-2012 shall be subject to the provision ofcomplete input records as per conditionof SRO.The Engineering Development Board(EDB) has also initiated an inquiry tocheck the production data of locallyproduced bikes and rickshaws as itbelieves that the assemblers are notproviding correct data.The EDB has asked the excise andtaxation departments of four provincesto provide details about the company’sname and its brand concerning the twoand three wheelers registered duringthe year 2009-10 and 2010-11 (up to



APMA said that instead of providing any relief to the two wheeler industry forbringing investment in the country and creating new job avenues and new

steps should have been taken to lure new investors – unfavorable conditionsespecially in Punjab is being created by the DG Excise and Taxation

without any cogent reasons.

The Association, in a letter toMr. Shahbaz Sharif, said thatthe assemblers roll out twowheelers in the market after

strict monitoring by theEngineering DevelopmentBoard (EDB) and PakistanStandard Quality Control

Authority (PSQCA) and whenassemblers require

registration certificate fromExcise Department the DGE&T Punjab deliberately

causes problems forassemblers by holding backthe certificate for months.


March 31, 2011).It is strange why the EDB has initiated

an enquiry against two and threewheelers makers when various

complaints regarding misuse of EDBfacilities were already on record with

the FIA and Customs Departmentagainst car assemblers and heavy vehicle

makers.The EDB is of the view that the

assemblers produce more than one bikeand rickshaw with same engine andchassis number and they sell thesemotorcycles and 3-wheelers in four

different provinces and pay the generalsales tax on one bike and rickshaw.However, the provincial excise and

taxation departments have not paid anyheed to the request and the board had

sent them a reminder.The EDB feels that there should becentralization of registration of vehiclesso that real production data of two andthree wheelers could be determined.The EDB, an apex body of the ministryof industries, in a letter had informedall four provincial excise departmentsthat certain assemblers of 2-3 wheelerswere procuring components from illegals o urc e s a n d mi s re po rt t he i rproduction/sales.The EDB said that it had been noticedthat certain unscrupulous assemblershad been found involved in getting theirproducts registered with provincialauthorit ies against inval id/bogusmanufacturing certificates, purportedlyissued by the EDB.This malpractice is not only affectingthe genuine assemblers bu t alsodefeating the regulatory regime anddepriving national exchequer of itslegitimate revenue.In order to put an end to the illegalassembly of bikes and consequent lossto the national kitty, the EDB hasestablished a database to maintain andreconcile the data of production andsales of bikes to ensure proper paymentsof taxes and duties.The assemblers are allocated a quota ofcompletely knocked down (CKD) kitsfor imports under concessionary regimefor the assembly of vehicles during ayear based on the production of previousyear.At the end of each fiscal year, theassemblers are required to submit therecord of inputs used for the assemblyof bikes and rickshaws during thepreceding year......





Automotive Sector - Update

Local motorcycle assemblers have alsodecided to reduce prices, a few daysafter local car manufacturers cut pricesto pass on the benefit of taxationchanges introduced by the government.Pak Suzuki Motor Company reducedthe prices of various variants of its SuzukiMotorcycle with effect from July 1.The reduction in the prices follows cutin General Sales Tax (GST) by onepercent and abolition of Special ExciseDuty (SED), which was collected at therate of 2.5 percent.C h i n es e o r i g i n m o t o r c yc l emanufacturers have not reduced theprices, however. Suzuki Motorcycle haseffected pr ice cuts of Rs1,900 to

Rs2,100.Suzuki Motorcycle Shogun Deleted pricehas fallen by Rs1,900 and the new retailprice is Rs74,500. Suzuki Shogunmotorcycle price has been cut byRs1,900 and the new price is Rs79,500.Suzuki Sprinter is now pr iced atRs71,000 after a drop of Rs1,900.Sprinter ECO is available at Rs67,500after price decrease of Rs1,900. GS125price has been reduced by Rs2,100 andthe new price is Rs82,500. GS150 isavailable at Rs88,500 after a reductionof Rs2,100.Muhammad Sabir Shaikh, ChairmanAssociation of Pakistan MotorcycleAssemblers (APMA), said that Suzukihas reduced the prices of all its modelsand variants and the other two brands,Honda and Yamaha, are also in line toannounce new reduced p rices.He said that though the government hasannounced reduction in General SalesTax (GST) and removal of the SpecialExcise Duty (SED), the Pakistaniassemblers affiliated with Chinesecompanies have not revised prices oftheir products due to the latest ruling ofthe Determination of Customs Value ofMotorcycle Parts and Components ofChinese Origin, under section 25A ofthe Custom Act, 1969.The new ruling has made the Chineseparts costlier.

This higher valuation ruling has beenissued by Federal Board of Revenue(FBR) on motorcycle parts imported fromChina for the assembly of low costChinese-cum-Pakistani motorcycles.The cost has increased by up to Rs1,700to Rs2,000. So the local assemblers arenot in a position to reduce prices, Shaikhsaid.He said that assemblers are consideringincreasing the prices of Chinesemotorbikes, but are hesitant to do thisnow because of the depressed marketconditions.The prices of Chinese bikes will beincreased gradually in the comingmonths, he said. Assemblers are not ina position to absorb the increased costsand the new ruling of Customs hasaggravated the situation. They have noother choice except passing theincreased cost pressure to theconsumers...

Chinese-Cum-PakistaniMotorcycle assemblers

refuse to cut price, blamehigh valuation rates

Industry sources have said that risingraw material prices, compounded by acontinuous depreciation of the Pakistanrupee (PKR), has hit the country'sautomotive industry. According to areport carried by daily news paper, thelocal assemblers have had to bear thebrunt of the high input cost.Local assemblers in Pakistan importcrit ical engine and transmissioncomponents and other parts from Japan.Consequently, the decline of the PKR

against the yen and US dollar has hitlocal OEMs hard, causing severefinancial challenges.According to these sources, the US dollarhas risen by 5.19% against the PKRbetween June 2009 and May 2011.During the same period, the rupee hasdepreciated against the yen by 25.2%.This has significantly increased the costof importing parts.With regard to other input costs, citingthe sources, said natural gas rates have

risen by 13% in the last two years;electricity by 34%; diesel by 34% andgasoline by 20%. The cost of steel has,over the last two years, shot up 27%,from US$586 per tonne to US$746. Thec os t o f ot h er ma t er i a l s l i kepolypropylene (+67%), aluminium(+35%), copper (+24%) and lead (+45%)too have increased over this period, theysaid.....

Local assemblers hit by rising input costs



Energy Sector - Exclusive Article

Perhaps the Peoples’ government excelwith other successive governments interms of its failures to curb highest everfood inflation, deteriorating law andorder, target killing, shortage and loadshedding of gas and power, insecurity,bomb blasts, kidnapping for ransom,extortion etc.There are hardly any consumer friendlysteps that have ever been taken in thelast three and half years. No serioussteps have ever been taken to resolvethe issues hurting the industry andconsumers and as a result the burningissues continue to become morealarming for the people.Consumers now brace up for anotherhot issue of load shedding in compressednatural gas (CNG) and it is likely tobecome more nerve wrecking for vehicleowners due to its upcoming high pricesand also for the stakeholders who areseeing their billions of rupees investmentat stake.Industry people say that thegovernment has been trying hardto bring the CNG rates at par withthe petrol and diesel aimed ateither destroying this sector tomake a ground for increasingimport of liquefied natural gas(LNG) or pocketing more revenuefrom the thriving business of CNGby putting up more pressure onthe existing stakeholders.The Ministry of Petroleum isdetermined to bridge the wideningdemand and supply gap on a fasttrack basis through LNG import.The government had exempted CNGbuses from the GST in 2008 and inbudget 2011-2012 the GST has againbeen imposed thus making heavyvehicles unaffordable.It is also amazing to see ban on newCNG licences but at the same time

issuance of new gas connections by SuiNorthern Gas Pipelines Limited for CNGstations are commonly seen. Thegovernment should look into this matter.Chairman CNG Dealers AssociationAbdul Sami Khan says that now themenace of total disaster of CNG industryis hanging over heads as very influentialindustrialist and importers have startedcampaign to bring CNG price at par withpetroleum products to bring CNGindustry to a halt and they may get fullbenefit of gas use for their own use only.In case it happens then the billions ofrupee investment made by stakeholdersand even general public in their vehicleswill go in drain.The dire need of CNG can be gaugedfrom the fact that many publictransports (especially mini buses andcoaches) have made changes in theirfuel transmission system and startedrunning their vehicles on CNG to makehuge saving. Almost all the four strokethree wheeler rickshaws are also runningon cheap fuel.However, the provincial authorities haveyet to wake up as passengers are stillpaying high tariff as per increase indiesel prices to reach their desired placesin Mazda Wagons.

The government should announce aseparate fair for public traveling in CNGwagons.Instead of pondering over the issue andmaking a joint strategy to cope with thegovernment’s aim to destroy the CNGsector, CNG bodies and associationsoperating in various cities sometimescome at loggerheads in taking upmileage in the matter of gas loadshedding to deal with the higher ups ofpetroleum ministry.This lack of unity proves highly suitablefor the government who is working onthe phrase (divide and rule) andultimately consumers will suffer.As a result, Al l Pakista n CN GAssociation, operated by GhayasParacha and Junaid Ismail Makda, CNGDealers Association being run by AbdulSami Khan and CNG Station OwnersAssociation headed by Malik Khuda Buxon many occasions try to resolve theCNG issues on their own and sometimesdiffer on policy matters with each other.For example, the All Pakistan CNGAssociation (APCNGA) has created astir in the market by recently claimingthat the proposed decision of around 70per cent hike in CNG price has beenrevoked by the Ministry of Petroleumand Natural Resources.Chairman APCNGA and VicePresident Karachi Chamber ofCommerce and Industry (KCCI),Junaid Esmail Makda said theAssociation’s delegation had metPetroleum and Natural ResourcesMinister Dr Asim Hussain whereanother decision was made to keepprice difference between petroland CNG at the parity of 60:40.Junaid said it was further resolved thatthe gas load shedding in NorthernRegion will be held for two days andpartial shutdown will be observed on

Stakeholders upset over planto bring CNG rates at par

with petrol, CNG

Consumers want low CNG price

Loss of workers’ jobs, billions ofrupees investment at stake

by Mohammad Owais Khan



Energy Sector - Exclusive Article

the third day while in Southern Regionload shedding will be observed for oneday followed by partial shutdown on thesecond day.At same time CNG Station OwnersAssociation (CSOA) and CNG DealersAssociation (CDA) had threatened tomove to the Court against thegovernment decision for weekly closureof CNG stations and increase CNGprices.Here Malik Khuda Baksh and AbdusSami Khan, in a joint hurriedly calledpress conference, said that some CNGstation owners had already obtainedstay from Sindh High Court (SHC)against the closure of CNG stations.They said that the government cannotincrease CNG prices as it had alreadyensured under a pricing formula tomaintain a 50 percent dif ferencebetween the prices of petrol and CNGagreed between CNG associations andGovernment of Pakistan.Similarly, the government cannotsuspend supply of gas t o CNGfilling stations in Sindh as the SHC hadbarred Sui Southern Gas Company fromdoing so.The environment friendly CNG fuel wassubstituting petrol import of $4.5 billionannually for the economy, by using onlyseven per cent of the total gasconsumption in the country.The closure of CNG stations will virtuallykill CNG industry as 2.5 million vehicleshave been converted to CNG in thecountry.They pointed out that Rs 235 billionhave been invested in CNG sector whichis directly or indirectly providingemployment to 500,000 people in thecountry.Lamenting vested interests includingoil marketing companies (OMCs), theysaid that they were lobbying againstCNG sector. "But we will fight againstthese vested interests till our success",they vowed.Gas shortage was caused by gas utilitiesand due to their mismanagement. Theywere also not going for large abandonedgas fields and also those under litigation,they noted.They alleged the government had

granted licenses to 350 CNG fillingstations last year despite a ban on newlicenses.They said they could not understand asto why the government is trying todiscourage the CNG sector when thecountry is already importing petrol athigher rates. “How the governmentwould manage the petrol availabilitywhen people will shift towards it afterremoving the price difference,” theyadded.While the APCNGA was threatening togo on strike, the SSGC managementc a lle d upon the lea din g CNGassociations of Pakistan on July 6, 2011.It had been agreed that due to theAnnual-Turn-Around (ATA) of OMVPakistan-operated Kadanwari Gas Field,CNG stations will be closed from 9.00am on Monday July 11, 2011 til lmidnight of Tuesday July 12, 2011.SSGC was represented at the meeting,held at its Head office, by SSGC’s ZuhairSiddiqui, DMD (Corporate Services),Salim A. Mughal, SGM (Distribution-S outh) and Shoaib Warsi, SGM(Distribution-North). Head of leadingCNG Associations of the countryincluding Abdul Sami Khan, Chairman,CNG Dealers Association, Junaid EsmailMakda, Central Chairman, All-PakistanCNG Association and Malik KhudaBaksh, Chairman of CNG StationOwners Association participated in themeeting called by SSGC to take thestakeholders into confidence over the2-day closure.Now the APCNGA chairman GhayasParacha on July 8 had announced tostart country wide protests from July13 after the arrival of Petroleum MinisterDr Asim Hussain on July 10.The protest campaign will be launchedfrom July 13 from Punjab which alsoincluded rallies.The government should stop gas loadshedding and provide CNG at 40 percent less price than petrol to theconsumers, he said.He termed the gas load shedding insummer as unjustified and it aimed atcreating problems for consumersbesides causing huge losses to the peopleas well as stakeholders.

There is a dire need that all the industrypeople should unite under a oneplatform to save CNG industry fromgovernment’s nefa rious designsotherwise both industry as well asc onsumers wil l suffer hea vil y.SSGC has already received tremendousinterest from local and internationalplayers in response to its recentinvitation for the import of LiquefiedNatural Gas (LNG) under Third PartyAccess, having received 17 ‘Expressionsof Interest’ (EoIs) for the allocation ofcapacity under its transmission systemfrom leading companies interested indeveloping their own LNG FloatingStorage and Re-gasification Unit(FSRU), arrange their own supply ofLNG and having their own buyers ofre-gasified LNG (RLNG).The 17 Companies which submittedtheir EoIs are Shell Gas and PowerDevelopments B.V, 4Gas Asia, GranadaGroup of Companies, NatGas, BW FleetManagement AS, MTMKN Group,Global Energy Infrastructure Limited,Pakistan Gasport Limited, Kot AdduPower Company Limited, PK Energy,Vitol, Eng ro Corp Limited, SAFInternational, LNG Energy Limited, IranLiquefied Gas Company, TradingEnterprises (Pvt.) Limited and XproEnergy Limited.The primary objective behind invitingthe EoIs through a print advertisementpublished on May 24, 2011, was toascertain th e number of partiesinterested in setting up LNG terminalsand their state of preparedness so thatSSGC can accordingly plan to modifyand augment its system to help provideentry and exit points to the LNGterminal operators as well as theintended volume they can transportthrough the Company’s system. Theadvertisement was the first logical stepin encouraging interested parties toexpedite setting up of LNG Terminalsso that the imported gas is madeavailable at the earliest in order to meetthe growing shortage of gas to Pakistan’si n d u s t r i a l a n d c o m m e r c i a lcustomers……

Here Malik Khuda Baksh and Abdus Sami Khan, in a joint hurriedly called press conference,said that some CNG station owners had already obtained stay from Sindh High Court (SHC)

against the closure of CNG stations.They said that the government cannot increase CNG prices as it had already ensured under

a pricing formula to maintain a 50 percent difference between the prices of petrol andCNG agreed between CNG associations and Government of Pakistan.



Agriculture is the main source ofeconomic growth in Pakistan. Althoughit has not reached to its full potentialand – whether it is a result ofinc onsi st ent pol ic ie s or ot herweaknesses – it continues to makeprogress over the years. The governmentof Pakistan has always kept a consistentpolicy of supporting agriculture to attractforeign and local investments and toboost per acre yield. Tractors andagricultural machinery were permittedas imports without custom duties andsales taxes as long as they are notmanufactured locally. The main reasonto provide subsidy in agriculture was tosupport small and medium farmers whofeed their families and earn their incomefrom farming in addition to feeding thecommunity. The subsidy on variousagricultural inputs and machinery withproviding them access to credit canensure real development of theagriculture sector. In the current budget,the government of Pakistan has imposed16% sales tax on agricultural machineryand inputs while subsidies on agricultureare withdrawn. This decision will causean increase in the production cost anddecrease the yield due to reduction inthe application of prescribed machineryand quantity of inputs. These factorswill lead directly to high selling price ofagricultural commodities and indirectly

to many other sectors of economy.Finally this will add to the troubles ofthe government a s the overallcontribution of agricultural sector inGDP growth may decline by 2-3 percent.

The primary focus of this article is todiscuss the impact of sales tax onimplement manufacturing industry. Acursory assessment will be made on thetractor industry which has a directbearing on implement sales.The tractor Industry (TIV) has risensignificantly in Pakistan from 40,709tractors sold in the year 2004 to 70397in 2009 representing an increase of 71%in six years. This was due to varioussubsidy schemes, improved prices forcrops and easy credit facilities. Therecent sales tax has brought the tractorsale down by 30%.The implements industry, althoughmade relative improvements over theyears, has not come out of a workshopenvironment than a full fledged industry.However, in the past the governmentinitiated several subsidy schemes underdifferent titles such as food security,multi-crop, raised bed equipment, dripirrigation, wheat straw chopper, whichencouraged the manufacturers toproduce specialized implements. Thesesubsidy schemes have changed theprices exogenously to alter demand andsupply figures.The agricultural implementmanufacturing sector hasdeveloped as an outcome of suchstrategic decisions to boostagricultural mechanization. Asa result, despite challenges suchas the disastrous 2010 flood,there was a bumper wheatproduction this year. In anutshell, government subsidyschemes for tractors andimplements, zero tariff policy,no sales tax, hard work of thenation’s peasants, and with the

help of God, theagriculturalsector has comea long ways.T h e r e c e n timposition of salestax on agriculturedoes not make sense.Subsidy schemes andsales tax waiver hasencouraged the growth of agriculturalmachinery industry and, as a result itscontribution towards increased yieldsand cropping intensity has becomevisible. This has enhanced agriculturalmechanization which is the prime goalof our country.How come a government can push entirecountry towa rds destruction bydiscrediting its own good work whichwas of vital national importance?Tractor industry might come recoverfrom the impact of the raised sales tax,which has caused a rise in the prices by100,000 Rs (average), compared toimplement manufacturing industry dueto its strong organizational set upcomprising of experienced and educatedmarketing/sales teams with highlystructured dealers network all over thecountry. It is difficult to make anassessment of its impact on the totalindustry volume. The decline in tractorsale will affect the agriculture sector intotal as tractor industry holds thepotential to improve/increase thepurchasing power of the farmer, whichis rapidly diminishing in light of inflationthat is apparent in all sectors of life. Themiss-management of the currentbumper wheat production was anotherblow on the farmers. Increased inputprices, poor performance of wheat salepoints (PASCO and Food department),ban on export of wheat brought themarket pric e of wheat down to80 0R s/40k g c ompared t o thegovernment rate of 950Rs/40kg. Thebanks did not provide loan to these salepoints to purchase wheat from the

Impact of sales tax onMechanization in Pakistan

Syed Mansoor Ali

The recent imposition of sales tax (16%) will slow down the wheel ofagricultural progress. Subsidy schemes were taking the industry to the

next level as manufacturers were starting to feel inclined to produceboth new and improved quality equipment.

continued on next page

by Syed Mansoor AliExclusive Article on Agriculture Sector



farmers that has compelled them torestrict their wheat purchase to 8 bags(2.5 maund)/acre instead of 20bags/acre. The average yield of wheatwas 45 maunds (1800kg) this year.Implement manufacturers are not onlydisorg ani zed but have l imit edproduction capacity and capability. Theirequipments/implements are craftedindividually from start to finish unlike

mass production (tractor industry) thatallows a manufacturer to produce moreper worker-hour, and to lower the laborcost of the end product. Their machinesare outdated and obsolete that affectsits production capability. For thesereasons, their sales are larg elydependent on advance orders that onlycome whenever there is a good enoughcrop for the farmers resulting insufficient money for investments or evennecessary purchases. They have limitedresources to build up inventory and keeptheir machines in stock. There arenumerous other problems which arehindering the development and growthof this industry, most prominently lackof education and awareness among thefarmers to understand the importanceof using the proper equipment for thejob. This is one of the reasons thattractor sales have gone up but the rightuse of tractors still remains a matter ofconcern. In the past two years thegovernment has not only introducedsubsidy schemes on implements butimplement specific subsidy schemes,such as the “Straw Wheat Chopper”subsidy scheme, were launched toencourage farmers to go for job-specificimplements. This was an innovativework of the government. If this wouldhave been continued for some time withthe same spirit and financial concessionsfor the farmers, the outlook of Pakistanmechanization will improve greatly.

The recent imposition of sales tax (16%)will slow down the wheel of agriculturalprogress. Subsidy schemes were takingth e industry to the next level asmanufacturers were starting to feelinclined to produce both new andimproved quality equipment. Theworkshop designs and qual ity wasmonitored by the government andfarmers were encouraged by thegovernment to make necessarypurchases. This was bringing a healthychange in agricultural mechanization asthe farmers were getting convinced touse job-specific implements.In a conversat ion wi th tenuredmanufacturers, it was revealed that thereal price impact on the end users willnot be a straight increase of 16% but itwill actually be around 40 to 50% dueto various other factors. The sales taxwould be paid at every step like whenmanufacturer will purchase rawmaterial, sale its machinery to retailer

or sales outlets and then final sale toend user. This may not be true but suchgray areas provide an advantage tomarketers to exploit the situation intheir favor by ripping the end users.Naturally this will cause substantialincrease in the existing prices. Therefore,price increase along with withdrawal ofsubsides will force production units,particularly small and medium, to shutdown and large units would have to goto right sizing or downsizing. This willcause huge un-employment affectingthe bread and butter of around 400,000families.In the absence of currentauthentic data on the number ofimplement manufacturers in thecountry it is difficult to gauge thereal impact of sales tax.Following assumptions havebeen made in consultation withthe manufacturers to get a feelof incoming crisis.The decline in the sale of implementswill have a huge impact on agriculturalproduction. This will create a demandsupply gap leaving no choice for thegovernment but to import the shortfallby spending huge amounts of moneyfrom the government exchequer. It willjeopardize the economic condition ofthe country and would be detrimentaltowards developmental projects.It is quite pre-mature to make a fullestimate of the catastrophic effect of thesales tax on agriculture. There is a stronghope that government will reverse itsdecision and let the agricultural industrygrow to make Pakistan prosper.It is to be remembered that thereis a huge gap in the status oftractor and implement industry.In true sense this gap should beminimized to attain true benefitsof the tractors. This is only possibleif the government should chalk out astrategy to help implement industry tocome out of its blacksmith/workshopenvironment and become an industryby definition. The subsidy schemesshould be streamlined and structuredin a way that slowly the players in thisindustry should attain manufacturing

The subsidy can be withdrawn or reduced once the industry reached to a

point to take care of itself and can find easily a place for their products in the

local and international market.

continued on page no.37

Exclusive Article on Agriculture Sector



Technical Education - An Introduction

VISIONFast growth of industrialization in thecountry needs skilled and competitivework force. LORD Institute ofTec hnology (LI T) is prepar ingindividuals to be technically determinedcontributing to social and economicaldevelopment of the country.

MISSIONLORD Institute of Technology (LIT) iscommitted to providing demand driventraining, equipping individuals tointernational standards throughinnovative and inventive training alongwith motivation and professionalism.

MOTTOTo standardize and integrate dynamicTechnical Education and VocationalTraining (TEVT)

An IntroductionLORD Institute of Technology (LIT) isestablished to impart VocationalTraining in various disciplines. The fast-track training courses offered aretailored to help unskilled people to learnskills to expand t hei r earningopportunities with respect and value.This will also lead to develop trainedmanpower to cater the needs of localindustry and the ever increasing demandof hig h lev el co mpeten cy a ndprofessionalism in international job-market.The basic aim of the institute is toprovide a first-rate technical training tothe individuals (who even have aminimum level of education) in different

trades which may also lead them toachieve an abroad job.The institute is equipped with allnecessary apparatus, machinery andtraining aid. Workshops and class roomsare outfitted with the state of the arttools and devices. The Instructors /Trainers are experienced qualified anddedicated. A very Friendly environmentis developed in the institute whichmaximizes the learning.LIT is going to create a joint venturewith the industry according to our tradesfor On Job Trainings (OJT), we willfacilitate our students by providingtransportation (to & fro) from Instituteand industry, schedule of trainingsession with the industry and OJTcertification for students. Such venturewill facilitate the LIT students to getupda te wi th the t echn olog ic aldevelopment, Training and as well asfulfill the market demand of skillworkforce.

KEY FEATURES OF LIT

• K nowl edge: P rovi si on a ndpromotion of demand driven technicalknowledge with practical• Professionalism: Develop a definitelevel of professionalism in the studentswith an art to cope with the challengingsituations in the career.• Skill: Developing a delicate skill tomake students explore their potentialsin the trades of their interest .• Student Retention: Studentretention indicates the effectiveness ofInstitute we have developed aninfrastructure through trade counselingand other activities that reveal us thestudents need.• Quality of Faculty: Experiencedqualified and dedicated instructors andtrainers equipped with the tools tobenefit their students as much aspossible.• Employment: Employment willreflect upon the Institute’s satisfactionof fulfilling its long term objective ofproviding jobs to its trained students.• Liaison: To establish Data Banks forskilled workers and technicians toprovide an easy choice for am employer

OUR COMMITMENTThe quality of technical program ismaintained and so ensures that thestudent gets value for exce llence .To build up a dynamic technical andvocational training system to ensuremobility.Regular upgrade the teaching andequipment to the required standards.

LORD Institute ofTechnology



Technical Education - An Introduction

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The Engineering Development Boardhas decided to review implementationof Auto Industry Development Plan(AIDP) and take up the matter ofdeclaring Sialkot city as exportprocessing zone (EPZ).The EDB is among those selected state-owned enterprises, which requiremassive restructuring under theIndustrial Policy 2011 to minimiseop era t i o n a l l o ss es . Af t e r i t srestructuring, EDB would acquire then o me n c l a t u r e o f ' I n d u s t r i a lDevelopment Board', to more accuratelyreflect its new mandate. These state-owned enterprises have become a causeof regular addition to non-developmentexpenditures of the government, whilecorruption is adding fuel to the fire, asreported in the June issue of /IndustrialBulletin', EDB's in house journal .The overall implementation progress ofAIDP will be reviewed to figure out howmuch progress has been made on thetargets fixed in the plan. Under theAIDP, the auto industry was requiredto achieve localisation of certain partsby 2010, and tariff of those parts was tobe increased from 32.5 percent to 50percent. These parts were not localisedduring the past four years.AIDP was prepared in 2007 with a pre-announced structure of five years toallow investment in the auto sector forthe development of the industry. It wasaimed at faci litati ng i ndustry'sintegration into the global supply chainby maximum indigenisation. Theenvisaged localisation of parts under theplan was that car manufacturers wouldtransfer technology and know-how tothe vendors for manufacturing ofalternators, starter motors, waterpumps, fuel pumps, fuel filters, seatreclining, power steering, engines andtransmission.According to 'Industrial Bulletin', the

progress on localisation is very dismaldue to many factors, including globalslump in the auto sector. At a recentmeet ing of t he Aut o Indust ryDevelopment Committee (AIDC) it wasdecided to take up the matter about thefuture of Tariff Based System (TBS),part of AIDP, in the next meeting in thelight of detailed discussion andconsultation with al l stakeholders.The government, the 'Industrial Bulletin'reported, may declare Sialkot city asexport processing zone (EPZ), whichwould help organise the informal sectorof economy, and increase exports. TheEDB has decided to take up the matterwith the Ministry of Commerce forfinalising a proposal in this regard.The industry would get benefit in theform of exemption in taxes and dutieson import, and the government wouldbe able to document the informal sectorby declaring Sialkot as EPZ. Pakistan'sannual surgical instruments exportsamounted to around $ 240 million in2009-10 which, the surgical instrumentmanufacturers hope, would increase inthe current fiscal year.The EDB has calculated that the exportsof surgical instruments could beincreased to $ 500 million in two yearsand ultimately touch one billion dollarsin five years time. To achieve this target,it is important to move towards brandedproducts and promote these ininternational markets.The bulk of surgical instrumentsindustry is situated in Sialkot, butmajority of manufacturing units areunorganised and are operating ascottage industry. Some unregisteredunits and some small and mediumenterprises are also operating in the cityand the government's focus is onorganising and facilitating them toincrease the quantum of surgicalinstruments' exports.....

AIDP implementation tobe reviewed

EDB to move for declaringSialkot as EPZ

At a recent meeting of the Auto IndustryDevelopment Committee (AIDC) it was decided to

take up the matter about the future ofTariff Based System (TBS), part of AIDP, in thenext meeting in the light of detailed discussion

and consultation with all stakeholders.

The Engineering Development Boardwill assist World Bank in collecting dataon leading industrial sectors of Pakistanfor carrying out a comprehensive studyon competitiveness of the industries.A decision to this effect was taken duringa meeting between EDB and a visitingW orld B an k mis sio n here o nWednesday.The WB study would analyse causes offailure of Pakistani industry to makeinroads in global market through value-addition and suggest measures forimproving the situation.EDB Chief Executive Officer Aitezaz ANiazi told the World Bank mission ontrade and competitiveness that the shareof engineering sector in export was justfour per cent.Surgical goods were contributing 32 percent of the total engineering goodsexports.However, export of engineering goodswould touch the $1 billion mark by theend of current fiscal year.The lack of international certificationand standardisation is a major hurdlefor the engineering sector for enter inginto global markets, he told the missionwhile highlighting the role of EDB inreducing the cost of doing business inPakistan through tariff rationalisation.Mr Niazi also informed the mission thatEDB has identified 20 sectors for exportdevelopment and work has beeninitiated to remove bottlenecks in thedevelopment of surgical instruments,fan and cutlery sectors.The mission was briefed in detail onmeasures undertaken by EDB for exportd ev e l o p me n t a n d i n c re a s i n gcompetitiveness of the local industrythrough a comprehensive policy paperon the National Engineering ExportDevelopment Strategy (NEEDS) whichis to be presented to the prime ministerfor final approval.Nihal Pitigala, Senior Trade Economistof the World Bank, who is heading themission, was informed on initiativesundertaken b y EDB for g ivingi nte rn at io na l ex po sure to t heengineering industry of Pakistan by wayof taking them to the world’s mostfamous engineering trade fairs andexhibitions and today many industriesare reaping the benefits of th is .

Competitiveness of

industries EDB to help

WB collect data



Agriculture Sector - Update

A SUM of Rs3.25 billion has beenearmarked in Sindh ADP 2011-12 forfina nc ing 40 new a nd ongoingagriculture schemes. Of these, thenumber of new projects is 11, estimatedto cost Rs293.1 million, while the restRs2.95 billion will be spent on the 29ongoing schemes.The development strategy gives priorityto completion of ongoing schemes,lingering since long. The backlog of theseschemes, launched on political grounds,has been a curse for the development ofthe province since General Zia’s rule.This approach was adopted to generatea so-called popular political base for thet he n a ut oc ra t i c g o v er nm en t .Unfortunately, the same developmentmode was also adopted by the successivee l ec t ed c i vi l ia n g o ve rnme nt s.The new agriculture developmentschemes and allocations made for themin the next year’s provincial ADP are:Upgradation of pesticide and fertiliserquality control and testing laboratories(Rs30m), reclamation of saline soilsthrough effective measures (Rs110m),rehabilitation of rice and cotton researchstations (Rs50m), establishment ofagricultural services complex andadvisory centre (Rs53m), developmentof bio-pesticide (Rs9m), strengtheningof Qaid-e-Awam Agriculture ResearchI n s t i t u t e L a r k a n a ( R s 2 6 m) ,standardisation of sugar testing andvariety development laboratory forsugarcane crops (Rs19m), internshipprogramme for agricultural graduatesin partnership with AgricultureUniversity and institutes (Rs25m),direct orat e-genera l, ag ri cultureextension and directorate trainingb ui ldi ng Hy derabad (Rs21.1m),inclusion Malhi training course at ATISakrand , Phase-II (Rs10m), andconstruction of Training Resource

Centre and facilities at AgricultureTraining Institute, Sakrand (Rs10m).This time, more stress has been laid onthe schemes meant for the provision ofquality seeds for at least three maincrops cotton, paddy and wheat to thefarmers on subsidy for which a scheme“Development and Promotion of QualityS e ed ” t hro ug h pub l i c -p r i va t ep a rt ne r sh i p i s un d e r a c t i v eimplementation.The total cost of this scheme isRs669.957 million while in 2011-12 ADPan amount of Rs120 million has beenallocated. These quality seeds will begrown by farmers. The task of multiplication of seed is being undertaken bythe Sindh Seed Corporation, which hasbeen activated.Anoth er important scheme is toconstruct water reservoirs/tanks at thetail end of branches. This schemeenvisages construction of 300 such tail-end water tanks/reservoirs at each ofwhich crop cultivated on maximum oneacre can be supplied irrigation water.The total cost of this scheme is Rs112million while Rs104 million have beenallocated in the ADP.Agro-based export procession zones areproposed to be established for fruits,vegetables, flowers, and allied processingproducts from local farms/processingunits for overseas markets. Currently,such zones are being set up in Karachi,Mirpurkhas and Khairpur and for thisproject Rs109 million have beenprovided for the next year.Small growers having 25 acres would beprovided subsidised modern agriculturalimplements like chiseled ploughs, rolarota and 18 other varieties of implementsso that agriculture mechanisationamong small growers is encouraged.The total cost of this scheme is Rs200million while Rs106.750 million have

been allocated in the ADP.Sindh government is also implementinga scheme called “Replacement of EarthMoving Machinery” to get rid of old toolsand to switch over to latest and moderntechnology. The total cost of this projectis Rs807.5 million while so far Rs50.15million have been spent. This scheme isscheduled to be completed by 2012 andfor that Rs422.875 million have beenprovided.The provincial government is alsoestablishing fodder research station atTando Jam and is introducing salttolerant high yielding varieties of fodderat the cost of Rs25 million and so farRs12.852 million have been spent onthis scheme while Rs12.148 million havebeen set aside in the ADP.In order to meet water shortages theprovincial govern ment plans to install3,027 tube wells for which an amountof Rs60 million has been earmarked.It is also implementing a scheme meantfor providing assistance to the growersfor purchasing 10,000 wheel typetractors. In addition, it is also providinglaser land leveling equipment to thefarmers on 50 per cent subsidy. Thisscheme is to cost Rs250 million whileRs120.683 have been allocated in theADP.Under one more ongoing scheme, thegovernment is constructing MirchMandi in Kunri, District Umerkot at thecost of Rs195.878 million while Rs20million have been allocated for thispurpose in the ADP.It is also establishing new subzimandis/cold storages at Karach i,Mirpurkhas, Tando Allahyar andShahpur Jahanian at the cost ofRs233.344 mil lion while Rs33.892million have been allocated for thisscheme in t he ADP 2011-12 .. . ..

Growers having 25 acres would be provided modernfarm implements on subsidised rates to encourage

mechanisation of small land holdings.

Sindh agriculturaldevelopment plan




A leading auto manufacturer hasmanaged to get a favourable decisionfrom the Sindh High Court (SHC),Karachi for allowing the company to getreleased stuck up faulty CNG kits whenthe two statuary bodies deliberatelyavoid submission of statements of notcontesting CIE observation, sources saidon Wednesday.Pak Suzuki Motor Company Limited(PSMCL) has maneuvered the two mainstatuary bodies, Oil and Gas RegulatoryAuthority (OGRA) and HydrocarbonDevelopment Institute of Pakistan(HDIP) of not submitting relevantstatement in the court, making itpossible for the company to get afavourable decision, an official of theauthority familiar with the developmenttold The News on the condition ofanonymity.Faber PSA of Italy, which is headed bya former General Manager of HDIP,Noshab Sarwar, has managed not tosubmit statement from HDIP operationoffice, Karachi by validating the reportand authority of the Chief Inspector ofExplosive, an attached department ofthe Ministry of Industries, on faultyimports of CNG vehicle cylinders, asource in the OGRA said.The imported CNG cylinder vehicles ofFaber Industries did not comply withthe HDIP’s manufacturing standards,NZS 5454, 1989, but the PSMCL alsodeliberately ignoring the defective CNGkits, he added.The faulty import of CNG vehiclecylinders of Faber brand has put thelives of hundreds of PSMCL customersat risk and the issue flared up when 1998model of Suzuki, Mehran burst onDecember 2009, while refueling at FourS tar Enterprises in Mirpurkhas,resulting in a loss of four lives.On the request of OGRA, the FederalBoard of Revenue (FBR) has suspendedthe import of Faber Industries Brand

CNG vehicles cylinders on November 2,2 010 and all the Customs fieldformations were informed to carry outthe orders, a circular of the FBR said.“The honourable court had alreadysorted and finished this case, so thereis no need to further discuss this issuefrom Pak Suzuki side,” PSMCL officialSpokesman Shafiq Ahmed Shaikh toldThe News.The Sindh High Court, Karachi, whiledisposing of a petition filed againstPSMCL and Faber for importing faultyCNG vehicle cylinders, directed theCustoms authorities for clearance of thegoods, which have been impounded inrespect of consignments of cylinders onthe payment of the relevant duties andtaxes.Interestingly, the viewpoint of HDIP, astatuary authority under the provisionof Pakistan CNG (Production andMarketing) Rules 1992, was not takeninto confidence, while the law officer ofOGRA withdrew its earlier stance byproducing a copy of letter datedFebruary addressed to secretary(Machinery), FBR, in which they havesaid that the imported cylinders of CNGvehicle will be released.When asked to comment on the subject,OGRA Spokesman Jawad Nasim saidthat he is only authorised to speak withthe media on the subject of POL pricesand he has not been mandated to speakon other issues.HDIP Director General/Chief ExecutiveShaukat Ahmed when asked for notsubmitting statement of departmentsaid that the HDIP wrote to the Ministryof Law for the provision of DeputyAttorney General for the case, but it didnot reply.After getting no response from theMinistry of Law, they verbally asked thelaw officer of OGRA to submit theirreplies on their behalf, but could notproduce any written evidence for

submitting the HDIP statement in thecourt, Ahmed said.The Department of Explosive, Ministryof Industries, vide its letter datedJanuary has intimated the approval ofCNG cylinders manufactured by FaberIndustries, Italy under the Rule 129 ofthe Mineral and Industrial Gases SafetyRules, 2010.Similarly, the Engineering DevelopmentBoard (EDB) dated letter January alsorequested the revenue body to direct theconcerned field formation to facilitateclearance of pending consignments ofPSMCL without further delay, as thecompany had already suffered a heavyfinancial loss on account of demurragecharges, besides production of CNGvehicles manufactured by PSMCL hascome to a halt due to unavailability ofCNG cylinders, a letter of the EDB said.Attorney of PSMCL pleaded before thecourt that during the riots, whicherupted after the Shahadat of MohtarmaBenazir Bhutto on December 27, 2007,a car being Suzuki Baleno was burnt.The CNG cylinder installed in the carwas manufactured by Faber and fittedby PSMCL. However, the said cylinderwas thereafter installed in some othervehicle and due to explosion of thiscylinder a number of human lives werelost.Hydrocarbon Development Institute ofPakis tan investigated th e matterseparately in Mirpurkhas and Jhelumand it was revealed that the cylinderinstalled in the cars belonged to FaberIndustries, a letter of the HDIP said.Deputy Chief Inspector of ExplosiveMuhammad Hussain Channa visited theNational Physical Laboratory (NPL), theUK and said, “Burnt CNG cylindersshould not be used in any vehicle, whichcould lead to happening of suchincidents.”Curtsey : The Daily News

Auto manufacturer managesrelease of faulty CNG kits

Auto manufacturer managesrelease of faulty CNG kits

The faulty import of CNG vehicle cylinders of Faber brand has put thelives of hundreds of PSMCL customers at risk and the issue flared up

when 1998 model of Suzuki, Mehran burst on December 2009,while refueling at Four Star Enterprises in Mirpurkhas,

resulting in a loss of four lives.




The Pakis tan Auto ManufacturersAssociation (Pama) and Pakis tanAssociation of Parts Accessor iesM an ufac t urers (Pa a pam) ha vereportedly protested over non-inclusionof their recommendations in the federalbudget for second consecutive year.The issues faced by the local autoindustry were discussed in detail at the9th meeti ng of Aut o IndustryDevelopment Committee (AIDC), heldin the Engineering Development Board(EDB).Official documents of EDB, availablewith press media, show that the Boardcarried out competitiveness andefficiency improvement exercise forbudget 2011-12 for all engineeringsectors, including automobile sector.A detailed consultative process wascarried out involving PAMA, PAAPAMand other stakeholders prior tosubmission of tariff proposals to FBRfor implementation. The subcommitteerepresenting PAMA and PAAPAMforwarded the tariff recommendationsto EDB. After detailed deliberations ina daylong session, EDB short-listed theproposals for submission to FBR, butthe proposals were not entertained bythe FBR.The stakeholders, including PAMA andPAAPAM, have shown serious concernthat the recommendations, jo intlycompiled by the industry and EDB, hadnot been considered by FBR for thesecond consecutive year, the documentsadded.An official told this scribe that thecommittee has agreed to take up thisissue with the FBR to address tariffrelated issues.The AIDC did not concur with some ofthe proposals of PAAPAM, with theargument that the Chairman of theAssociation already enjoys tariff benefits.The documents further show that the

meeting also discussed replacement ofTariff Based System (TBS) as thecommittee had decided in its 8thmeeting to have detailed deliberationson alternative system to replace TariffBased System (TBS) to be carried out inthe upcoming meeting of AIDC.With respect to the generic parts relatingto conversion of vehicles to Euro-IIstandards recommended by PAMA andPAAPAM for import at zero percent rateof duty, the industry was asked toprepare justification for inclusion ofsuch parts in generic list for review andapproval by technical committee of EDB.PAMA and PAAPAM had been asked to

update the committee on their mutualdi sc ussi ons. B ot h a uto s ec torAssociations, sources said, did not bringfeas ible proposals in this regard.The meeting was also updated on statusof minimum in-house facilities to beforwarded to FBR.According to documents, it was decidedin the 8th AIDC meeting that the list ofminimum in-house facilities, finalisedwith the inputs from the industry, wouldbe forwarded to budget coordinationcell of FBR to incorporate in the relevantSRO. Millat Tractors had raised a queryregarding the design/drawing aspect.The committee had decided in the 8thAIDC meeting that the design/drawingaspect as highlighted by Millat Tractorswould be given due consideration byEDB during the review of relevant SRO.A proposal regarding replacement ofmarking fee, being charged by PSQCAon the number of units produced by themotorcycle industry with fixed fee onexisting and new models, was approvedby AIDC's subcommittee on Safety,Quality and Environmental Standards(SQES) in its 4th meeting held on June13, 2011. The issue will be forwarded tothe FBR.....

Non-inclusion ofproposals in budget

Pama, Paapam protestagainst FBR decision

With great pleasure we inform ourreaders that Automark magazine’s sub-editor Mr. Raja Irfan Sabir hassuccessfully defended his post-doctoralthesis.He is currently enrolled as a post-doctoral candidate in the Chinese-German Institute for IntellectualProperty, Sch ool of Management,Huazhong University of Science andTechnology, Wuhan, China.

Before that he hasc o m p l e t e d h i sdoctorate (Phd) fromthe same university.Mr. Irfan joined thepanel of editors ofAutomark three yearsa g o . W h o l eAutomark’s team is proud of Mr. Irfan’saccomplishment and wishes him thebest of the luck in the future.

Automark’s sub-editor Raja Irfan Sabirsuccessfully defends post-doctoral thesis


Indus Motor Company organized a prizedistribution ceremony at its plant tohonour winners of ‘’5th Toyota DreamCar Art Contest’’ which was conductedbetween November 2010 and February2011.More than 5,500 entries were sent byyoung students from all over Pakistanfor the contest, out of which the top 15were selected by a national jury and thensent to Toyota Motor Corporation(TMC), Japan for ‘’World/Global ArtContest 2010-11’’.Out of more than 120,000 entries from50 countries received by TMC Japan,30 were selected as the best artworkswithin their specific categories. FatimaNoor’s artwork entitled ‘’Monkey Car’’from Rawalpindi, Pakistan made it tothe top 30. She has won a 4 days and 3nights trip to Japan.To celebrate this achievement, all thewinning students along with theirparents were invited to the awardsceremony followed by a plant tour wheret he k i ds w i t n e s se d t he c a rmanufacturing process and interactedwith the IMC team.

Speaking on the occasion, Mr. ParvezGhias, CEO IMC said, “This activity isin line with our ‘Concern Beyond Cars’philosophy. Toyota is proud to recognizethe artistic talent of children. We are

also extremely pleased that a studentfrom Pakistan has won and will berepresenting her country in Japan.”

5th Toyota Dream CarArt Contest

Celebrating winnersfrom Pakistan


Automotive Corporate - Update

Mr. Parvez Ghias, CEO, Indus Motor, presenting the prize to ‘’Global DreamCar Art Contest’’ participant Fatima Noor from Rawalpindi, Pakistan

His Excellency Mr. Hiroshi Oe,

Ambassador of Japan in Pakistan

assured assistance of Government of

Japan to pl ea d with P akista ni

Government in firming up long term

policies for local auto industry.

He said this during his visit to Indus

Motor Company (IM C) here on

Saturday. He was given a detailed

presentation by the Indus management

team followed by a tour of the

manufacturing facilities wherein he

closely examined the plant and reviewed

the company’s progress, says a press

statement.

He commended Indus Motor and Toyota

Motor Corporation for bringing the

latest automotive technology to Pakistan

and contribute towards its progress.

M r. Hiroshi Oe noted notab le

contributions made by auto industry;

particularly IM C in tra nsfer of

technology, localization, increasing

employment, etc. and acknowledged the

challenges faced by the local auto

industry. Mr Ali S Habib, Chairman,

Indus Motor Company thanked Mr.

Hiroshi Oe and appreciated Japanese

Government role in supporting IMC and

Pakistan , both in becoming a major

automobile manufacturer as well as a

significant contributor to the economy

of Pakistan ....

Japanese Ambassador to Pak assuresassistance in Auto Industry



Energy Sector - Update

Overall refinery sales decreased by 4 percent during the year ended June 30,2011, compared to the earlier year, whichanalysts attributed to the floods in firsthalf of the year as well as refineryturnarounds and maintenance outagesin fourth quarter of the year.Refineries recorded volume of 7.7million tons during FY11 (39pc ofcountry’s total oil product sales)compared to 8.1 million tons last year.In terms of products, gasoline andfurnace oil (FO) sales were down by 8per cent and 3 per cent YoY, respectively,while volumes were supported by 1.7pc

YoY increase in HSD, enabling the sectorto maintain high yield, stated head ofresearch at brokerage InvestCapKhurram Shehzad and analyst FarhanBashir Khan in their report released onThursday.Besides, the 4 per cent decline in volumein FY 11, the Gross Refinery Margins(GRMs) also thinned down in 4Q FY11.Petroleum consumption fall wasrestricted to one per cent in FY11 overthe previous year.In terms of performance by individualrefineries, analysts noted that AttockRefinery had posted flat trend in its

sales, which stood static at 1.4 milliontons during FY11. The refi nerymaintained market share at 18 per cent.National Refinery, on the other hand,showed healthy growth in volumes withits sales up by 18 per cent over the earlieryear to 1.5 million tons.”However, growth in National Refineryvolume was attributable to higher FOsales, which rose by massive 57 per centover the year before; Refinery’s whiteoil yield deteriorated by 27 per centduring the year. Byco refinery recordedsizeable decline of 36 per cent year-onyear (YoY) in volumes while its sharein industry sales remained thin at 5 percent.Overall sales of the Refinery sector onquarter-onquarter (QoQ) basis, declinedby 5 per cent to 1.9 million tons from 2mil lion tons recorded in 3QFY11.Major decline was visible in gasolineand HOBC sales, which receded by 18and 21 per cent QoQ, respectively owingto outages in the platformer units ofmajor refineries.With regard to GRMs, the marginsduring 4QFY11 appeared to have thinneddown owing to both narrowed spreadsas well as deterioration in white oil yield.As per the analysts’ estimate, 4QFY11industry GRMs went down by 39 percent QoQ and 33 per cent YoY to $1.7per barrel.Over the full year, the refinery sectorbooked much better GRMs amountingto $2.7 per barrel, enabling them to reaphigher profits.Petroleum consumption in the countryslid by one per cent in FY11. The mainreasons for such stagnancy in growth ofthe petroleum products consumptionwas attributed by analysts to number offactors, which included: Flash floodsthat swept through the country in 1H11,affecting diesel as well as furnace oilconsumption (which contribute morethan 80 per cent on average to theconsumption basket).Secondly, around 20 per cent year-on-year (YoY) price increase during FY11at retail level and third, slow overalleconomic activity with dismal growthobserved during the year.Thus, the total petroleum consumptionvolume during the year stood at 19.9million tons against 20.1 million tonsrecorded in FY10.

Refinery sales down4pc in FY11

Byco Petroleum Pakis tan Limited(BPPL)--the stock market listedcompany-- announced the intention ofthe board of directors to re-organiseloans and capital structure of thecompany.The essence of it all appears to be topass on the Byco loans to anotherassociated company and in turn issuethat company the majority equity inByco. After all is down; Byco OilCompany Limited (BOPL) would go onto hold 851 million shares in Byco,representing 87 per cent of the listedcompany’s shareholding.Byco would thus be able to kick off thehuge loans and mark-up that spoils itsb a l a nc e s he e t. The c o mpa n yannouncement unveiled salient featuresof the intended clean-up of financialstatements . It said that Byco OilCompany Limited (BOPL) -- an unlistedpublic company, incorporated inPakistan and wholly owned subsidiaryof Byco Industries Limited (BII) wouldbecome the major shareholder of Byco,instead of BII, which is incorporatedunder the laws of Mauritius and whichcurrently owns approximately 67.52 percent shares of Byco.Secondly, various intercompany loansgiven to Byco would be converted intoequity of the company. The processwould be achieved through the followingsteps: One that the various associatedcompany loans (local and foreign)availed by Byco would be converted such

that BOPL replaces Byco as borrower;secondly, in consideration for thenovation (meaning: substitution of newcontract in place of old one) of loans,BOPL (as lender) and Byco (asborrower) would, on a back to backbasis, enter into a corresponding rupeeloan agreement in terms of which Bycowould owe BOPL such rupee equivalentamounts which prior to the novation ofloans were owned by Byco to its intercompany lender, and finally, thepayment obligations under the BOPL-Byco loan agreement and another rupeeloan agreement of a similar naturealready entered into by BOPL and Byco,would be satisfied by Byco throughconversion of loan (including accruedmark-up thereon) into equity by issuing586 million new shares without a rightsoffering to BOPL.The novation of the aforesaid associatedcompany loans and the issue of ordinaryshares at par value of Rs10, by Bycowithout a rights issue pursuant to thefirst proviso to Sub-section 1 of Section86 of the Companies Ordinance, 1984,have been approved by Byco’s Board ofDirectors and shareholders at theirmeetings on December 7 and 31, 2010,respectively.The announcement by the lis tedco mpany By co sai d t hat uponcompletion of the three steps notifiedabove, BOPL would go on to hold 851million shares of Byco translating into87 per cent shares of the listed company.

Byco Petroleum toconvert loans into equity




Today, we are liv ing in the age oftechnology. New and latest technology

has been introduced in every discipline.Same thing is here with the automotive

industry. Every now and then, latesttechnologies are introduced in the

market so as to get maximum powerfrom the car’s engine in less fuel. But

what, if you want more power then thestock engine installed in your car.

The trend of car customization andmodification is rapidly growing in the

young generation all over the Country.And with the young generation, some

middle age people are also showing verykeen interest in the motorsports and

playing a very important role inpromoting this sport in the country. The

entire motorsports enthusiasts gatherall together on weekends or on some

special events to compete with differentcars on the busy streets of the city, which

is very dangerous for the normal traffic.

I strongly believe that the street racingshould be made legal but not on public

roads. Because you all know better thatthe traffic here is not under the control

of our traffic police, so how can theycontrol such high speed machines? The

first event was organized by the CityGovernment known as Humara Karachi

Race Competition, held on 1st March2009 at Hyderi Main Road. Before the

proper Race was started, there were two

accidents, just because of the lack ofcontrol on public traffic. So, there must

be separate closed circuit tracks madespecially for racing enthusiasts where

they can practice all types of driving andperform all the stunts within that track

area.Every training starts from the basics.

Like a child is taught from his childhoodabout the basic origins of ISLAM, in the

same way, if the young drivers areproperly trained about all the tips and

tricks used in race and high speeddriving, it wil l surely boost up the

motorsports in Pakistan. As you can seethe cars here, which a person could not

imagine that these cars would be presentin Pakistan for example corvette, Nissan

Skyline, Toyota Supra, Nissan Fairlady,Cadillac, Hummer and sports bikes such

as Suzuki Hayabusa, Yamaha R1 etc.

Basically, the trend of this sport inPakistan was started after the launch of

movie Fast and the Furious in 2001. Inthis movie, they have shown all the

exotic. Muscle and tuners cars with eyecatching colors and there high speed

engines grabbed the attention of thepeople of our country towards this sport.

The young generation got a great dealof knowledge. After that, some car racing

games launched by EA Sports such asthe whole series of Need for Speed was

very informat ive for the young

generation, becauseo n e c a n ea s i l y

customize the car inthe game, and tune

it to his desire. Theproper race drivers

may have a positivei m pa c t o n o u r

economy because ifthe drivers have the caliber to represent

their country all over the world, it wouldbe a great honor for Pakistani people.

In the end, I would like to conclude thatthe street racing could be very successful

in our country, only if all the techniciansworking on the cars should have proper

knowledge about each and everythingfrom a simple engine to a very high

performance engine such as RB26 usedin Nissan Skyline. They must know the

basics or turbo charging, supercharging,the use of Nitrous Oxide injection

system, how to swap the engine indifferent cars, and whether the car can

bear the load and vibration of the highspeed engine you are going to swap?

These all are the key points tosuccess. I am myself a Toyota

Technician in a TOYOTAdealership. And I want to say that

if anyone wants to join thisautomotive field, one should b

crazy about cars and all the stuff,otherwise, it’s the wastage of time

as well as money.

Street Racing in PakistanThe trend of car customization and modification israpidly growing in the young generation all over the

Country. And with the young generation, some middleage people are also showing very keen interest in the

motorsports and playing a very important role inpromoting this sport in the country.

by Muhammad DanishAutomobile Technician



Automotive Sector - Exclusive Review

Four-wheel drive, 4WD, or 4×4 ("fourby four") is a four-wheeled vehicle witha drive train that allows all four wheelsto receive torque from the enginesimultaneously. While many peopleassociate the term with off-road vehiclesand Sport utility vehicles, powering allfour wheels provides better control thannormal road cars on many surfaces, andis an important part in the sport ofrallying.In short: 4WD and AWD (all wheeldrive) provide increased vehicle stability.In case vehicle stability is about to belost due to slipping tires, despite 4WDor AWD, traction control and stabilitycontrol assure directional stability -however, none of them can defy the lawsof physics. In plain English: if you aretoo fast for the road conditions - noneof the features will keep you on the road.

4x4 (four by four)Translates to a vehicle with 4 wheelspowered by 4 wheels -so, its a 4WD or AWD (four wheel driveor all wheel drive)

4x2 (four by two)Translates to a vehicle with 4 wheelspowered by 2 wheels -so, its a 2WD (two wheel drive)

There are almost as many different typesof four-wheel-drive systems as there arefour-wheel-drive vehicles. It seems thatevery manufacturer has several differentschemes for providing power to all ofthe wheels. The language used by thedifferent carmakers can sometimes bea little confusing, so before we get startedexplaining how they work, let's clear upsome terminology:

Four-wheel drive - Usually, whencarmakers say that a car has four-wheeldrive, they are referring to a part-timesystem. These systems are meant only

for use in low-traction conditions, suchas off-road or on snow or ice.

All-wheel drive - These systemsare sometimes called full-time four-wheel drive. All-wheel-drive systems aredesigned to function on all types ofsurfaces, both on- and off-road, andmost of them cannot be switched off.Part-time and full-time four-wheel-drivesystems can be evaluated using the samecriteria. The best system will sendexactly the right amount of torque toeach wheel, which is the maximumtorque that won't cause that tire to slip.

Four-wheel DriveDifferentialW h e n po w e ri n g t w o wh e e l ssimultaneously the wheels must beallowed to rotate at different speeds asthe vehicle goes around curves. Theproblem is even more complicated whendriving all four wheels. A design thatfails to account for this will cause thevehicle to handle poorly on turns,fighting the driver as the tires slip andskid from the mismatched speeds.A differential allows one input shaft todrive two output shafts independentlywith different speeds. The differentialdistributes torque (angular force) evenly,while distributing angular velocity(turning speed) such that the averagefor the two output shafts is equal to thatof the differential ring gear. Eachpowered axle requires a differential to

distr ibute powerbetween the left andthe right sides. Whenall four wheels aredr i v e n, a t h i rddifferential can beused to dis tributepower between thefront and the rearaxles.The described system handles extremelywell, as it is able to accommodate variousforces of movement, and distributepower evenly and smoothly; makingslippage unlikely. Once it does slip,however, recovery is difficult. If the leftfront wheel of a 4WD vehicle slips onan icy patch of road, for instance, theslipping wheel will spin faster than theother wheels due to the lower tractionat that wheel. Although the amount oftorque applied to each wheel will beidentical, the amount of traction at eachdriven wheel will be limited to that ofthe wheel with the least traction (at leastone wheel on ice in this case). Theseproblems can happen in both 2WD and4WD vehicles, whenever a driven wheelis placed on a surface with little tractionor raised off the ground. The simplisticdesign works acceptably well for 2WDvehicles. It is much less acceptable for4WD vehicles because 4WD vehicleshave twice as many wheels to losetraction, increasing the likelihood thatit will happen. 4WD vehicles may alsobe more likely to be driven on surfaceswith reduced traction.

Four-wheel drive(4WD)

There are almost as many different types of four-wheel-drive systemsas there are four-wheel-drive vehicles. It seems that every

manufacturer has several different schemes for providing power toall of the wheels. The language used by the different carmakers

can sometimes be a little confusing

by Omar Rashdifrom St. Patrick’s Technical Institute



Automotive Technology - Exclusive Review

Computer Aided Designing (CAD) is ac o m p u t e r t e c h n o l o g y f o rdesigning/drafting the products desired,fast, reliably, flexibility and economicallylow cost as compared to manualdesigning by hands, which is timeconsuming and requires hand tools likerulers, T-scales, curves e.t.c. Designingand manufacturing today is verydemanding, no matter what industryyou are in. That is why CAD software isvery important for making the task lesscomplex and more efficient. In thisarticle CAD is discussed here forengineering applications. In CAD softwares we can simulate real time factorsli ke f l uid an d forc es eff ec ts ,aerodynamics of an object, and otherenvironmental effect on an objectdesigned, virtually.CAD plays a major role for streamlinedesign processes, manufacturing ofproducts, and for researching. It is beingused in nearly every industry likeAutomotive, Aerospace, shipbuilding,architectural designs e.t.c. Automotiveindustry has significantly shown growth,

because nearly everyday new designs ofcar are being made, all thanks to thisinnovative technology. Auto industriesare in competition of making conceptcars, concept car means which are to bebuilt in future, more appealing,attractive, sleeker, efficient andaerodynamic designs as much aspossible.Some of the common engineering CADsoftwares which are popular and arewidely used in auto industries are SolidWorks/edge, Auto-desk, Pro-engineer(Pro-E), Unigraphics NX, Catia, I-Deasand Mi cro-station. Most of thecompanies developed their ownsoftwares for designing but now theyhave switched to commercially availablesoftwares like some mentioned above.Some OEM’s (Original EngineeringManufacturers) which are using thesesoftwares is listed here:General Motors (GM), Ford, Fiat,Nissan, Chrysler, Suzuki Japan: UG NX (Unigraphics and I-Deas have joinedtoget her and is known as NX).Another one which is widely in used isCatia. Although most of the OEMs areusing one or more packages for differentpurposes example: Toyota is using Catiafor body and Pro-E for power-train.More you can know about CAD packagesbeing used by OEMs here:h t t p : / / w w w . e n g -tips.com/viewthread.cfm?qid=45579Some information about these softwaresand their functions usage, thesepackages are available having wideranging options for performing differentengineering applications and otherusage. Mostly, these softwares consistof CAD, CAM (Computer AidedManufacturing), CFD (ComputationalFluid Dynamics), and FEA (FiniteElement Analysis). CAD is use formodeling/designing/drafting/dimensioning. CAM mode is mostly used inmanufacturing/fabrication facilities.CFD is an engineering function use for

thermal/fluid flowanalysis on a modela n d i s a v e ryi m p o r t a n ta p p l i c a t i o n i nautomotive. FEA isanother mode fore n g i n e e r i n gstudy/observationand data analysis.In Pakistan, for those who are interestedin engineering design careers, courseson these softwares are widely availablemostly on AutoCAD, Pro-E, Catia andSolid works. In international market UGNX is a direct competitor of the abovementioned softwares in view of beingused in auto companies. It’s a productof Siemens Company, and providesadvance and wide variety of functionsand it is a dedicated Automotive CADpackage. Currently, its courses are notmuch available in Pakistan except fewplaces like KTDMC (Karachi Tool MouldDie centre); it is also being taught,advanced level of functions of thissoftware, at NED University, Karachi inAutomotive Engineering Department asa subject. Engineering Designing andutilization of talent really needs support(in the form of sponsorships for studentsparticipating in international projectsevents which our university studentsdesign themselves, investment on theirhigher studies/or their ideas) in Pakistanwhich can lead to establishment of ourcountry’s own industries so can competewith international companies.. .. .

Computer Aided Designingin Automotive sector

CAD plays a major role for streamline design processes, manufacturingof products, and for researching. It is being used in nearly every industry

like Automotive, Aerospace, shipbuilding,architectural designs e.t.c. Automotive industry has significantly shown

growth, because nearly everyday new designs of car are being made,all thanks to this innovative technology.

by Saad Saleemfrom NED University, Karachi




Toyota sticks to 12% salesgrowth target in China

Toyota Motor Corp.is sticking with itst arg et for Chi napassenger-vehiclesales to increase 12

percent in 2011 despite the productionslowdown caused by the March 11earthquake in Japan. "RegardingToyota's sales in China for the calendaryear of 2011, Toyota will continueworking together with its partners tostrive to realize the initial target," Toyotasaid in a statement posted on its ChinaWeb site. Late last year, Toyota targetedChina sales of 900,000 units in 2011,up 11.8 percent from 2010.

Ford starts work on $500Mengine plant

Ford Motor Co.b r o k e g r o u n dThursday on a $500million (3.2 billion

yuan) engine factory in southwest Chinaas the automaker seeks to boost globalsales 50 percent in four years. The plantin Chongqing will more than doubleengine capacity for joint ventureChangan Ford Mazda Automobile Co.to 750,000 units when output starts in2013, according to an e-mailedstatement. Last week, Ford forecast thatgrowth in Asia will help boost globalsales 50 percent to 8 million vehicles ayear by 2015.

GM China namesBierzynski chief of EVstrategy

General Motors China hasnamed Ray Bierzynskiexecutive director of itselectric vehicle strategy.Bierzynski, who will bebased in Shanghai, will

work closely with the automaker's

partners, government organizations,univ ersi ties and infrast ruct urestakeholders, GM China said in astatement. The 33-year GM veteran willhelp coordinate EV standards, work withsuppliers , organize demonstrationprograms and generate businessstrategies for China's emerging EVmarket.

FAW-VW to buildsmall cars in Nanhai

FAW-VolkswagenAut omot iv e Co.,Volkswagen AG'sjoint venture withChina FAW Group

Corp., will build subcompact cars at itsnew plant in Nanhai in south China'sGuangdong province. The seventh-generation Golf and Audi A3 will beamong the first products the new plantwill make, according to the Nanhaigovernment's Web site. In May, thecentral government approved FAW-Volkswagen's plan to build an electricvehicle for the partnership's newlycreated brand Kaili. But it's unclearwhether the EV will be produced at theNanhai plant.

BYD ships EV testfleet to Rotterdam

BYD Co. says it hassi gned a dea l withRotterdam to deliver afleet of e6 electric cars tothe Dutch city. The

privately held Chinese automaker didnot indicate how many units it willdeliver. The municipality intends topurchase various types of electric carsfor its test fleet of 75 vehicles. The e6 isa five-seat crossover vehicle; BYD claimsit has a daily range of 300 kilometers.Last year, BYD delivered a fleet of 50 e6cars to a taxi company in its hometownof Shenzhen.

Chery more than doublesvehicle exports in April

Chery AutomobileCo. says it exported12,521 vehicles inApril, up 134 percentfrom a year earlier.

In the month, the indigenous Chineseauto brand sold 3,735 vehicles in Brazil,making the country its largest exportmarket. Russia is Chery's second largestexport market with 2,168 vehicles soldthere, according to figures Cheryreleased last week. The Tiggo SUV andthe QQ micro-car accounted for most ofChery's exports. The company exported3,933 Tiggos and 3,351 QQs in April.The rest of the exports were contributedby the A1 and A3 compact cars.

GM Says Demandfor Four-Cylinder EnginesDriving Plant Investments.General Motors said that the additionaldemand for Ecotec four-cylinder enginesin a range of its vehicles is behind thecompany’s $65 million investment inplants in New York and Tennessee.GM is adding additional productioncapacity at its Tonawanda, N.Y., plantfor engines for the Chevrolet Equinoxand GMC Terrain crossovers. GM saidit is investing $33M in this plant.The automaker said it is addingproduction capacity at its Spring Hill,Tenn. plant for direct-injection four-cylinder engines for the 2013 ChevroletMalibu. The company is investing $32M.The automaker said the investments inthe Tonawanda and Spring Hill plantsare part of $2 b illi on in U.S.manufa ct uri ng inv estment GMannounced May 10 that will create orretain 4,000 jobs in 17 facilities in eightstates.

International AutomotiveNews in Brief

Visitwww.automark.pk



Alternative Energy Sector - Update

Prices of solar panels are falling so fastthat by 2013 they will be half of whatthey cost in 2009, according to a newreport from Ernst & Young that arguessolar electricity could play “an importantrole” in meeting the UK’s renewableenergy targets.The average cost of solar photovoltaic(PV) panels — usually described in termsof the dollar price of each watt of peakcapacity — has already dropped frommore than $2 in 2009 to around $1.50in 2011. Based on broker reports andindustry analysis, the report forecaststhat those rates of decline will continue,with prices falling close to the $1 markin 2013.At present, solar PV is economicallyviable in the UK for homeowners,businesses and investors only becauseof government subsidies given out viafeed-in tariffs (Fits). But the new analysissuggests that due to falling PV panelprices and rising fossil fuel prices, large-scale solar could be cost-competitive

without government support within adecade — sooner th an is usuallyassumed.The report was commissioned by theSolar Trade Association (STA) fromE rns t & Y oun g ’s e ne rg y a ndenvironmental infrastructure advisoryunit in response to the recent shake-upof the Fits, which saw governmentsupport for large solar systemssignificantly reduced. The cuts wereenacted as a result of the government’sdecision to cap the total amount thatcould be spent via Fits and skew thelimited budget in favour of domesticand other smallscale installations.The chairman of the STA, HowardJohns, said the new analysis backed upthe industry line that governmentsupport for all types of solar systems inthe next few years made good economicsense as it would build capacity andenable unsubsidised solar to be as widelydeployed as possible as prices comedown. “This reinforces the case we havelaid out in our Solar Revolutionstrategy,” he said, “and it comes froman independent consultancy.” The reportcoincides with new data from BloombergNew Energy Finance that shows a drastic28 per cent month-on-month drop inthe spot price of high-grade silicon, theraw material used in most PV panels.The conclusions of the Ernst andYoung’s report contrasts with the view

of the government’s advisers , theCommittee on Climate Change (CCC).The committee recently argued thatsolar remained too expensive to warrantserious consideration in the short termand that Britain should instead “buy infrom overseas later”.The lead author ofthe new report, Ben Warren, said theCCC’s view failed to consider the widereconomic benefits of solar. “Being alaggard has never been very successfulin terms of capturing the greater shareof the value added for the economy. Ifyou create a sustainable market, you willachieve cost savings and drive economicbenefits in terms of tax income and jobcreation.” To compare the relative costof solar and other energy sources,analysts consider factors such as upfrontexpenditure, fuel prices, maintenanceand discount rates to calculate the“levelised cost” of each unit of energy.The report predicts that, with continuedsupport in the short term, the levelisedcost of large-scale solar will be no higherthan retail energy prices by 2016-19. Inthe run-up to the announcement of theFits cuts, climate minister Greg Barkertold the Guardian that Britain hadunderestimated the potential of solarenergy and in light of falling prices hehoped to find “new pathways” forsupporting large-scale solar.

Solar power gettingcheaper

capabilities in their specific line ofequipments and not manufacturingeverything without any standards ofdesign and quality. Gradually we will beable to develop a host of agriculturalmanufacturers producing completerange of equipments in Pakistanmaintaining acceptable internationalstandards. Pakistan AgriculturalResearch Council and ProvincialAgricultural Departments could helpthem in getting licensing/know-howagreements with foreign companies.They can gain permission to export tospecific markets. The subsidy can bewithdrawn or reduced once the industry

reached to a point to take care of itselfand can find easily a place for theirproducts in the local and internationalmarket.At this stage, leaving them alone is noservice to the nation. Small black smithshops which were started with smallfurnace and anvil to manufacture smalliron products in the seventies haveattained a level to produce machineslike thresher, reaper, straw chopper, andRotavator in their workshops. In the last30 years their children have attaineduniversity qualifications unlike theirparents who had basic or no education.

This new generation ofimplement manufacturers arefully ready and enthusiastic tomove their manufacturing unitsto a new place or to re-designexisting set up to improve theirproduction facility in line withmodern requirements toproduce standardizedequipments.It could be rightly said that implementmanufacturers have reached a mile stonethat can be a turning point towardsmodernization provided that theseyoung entrepreneurs will receive properand timely government support.



Company Introduction

TYRE SALES Corporation is a Pakistanbased distribution house of tyres and isa part of The Charania Group ofCompanies.

TYRE SALES started itsbusiness in 1960 and hascompleted 50 years' GoldenJubilee in 2010. In the last50 years TYRE SALES,which started as a smalloutfit in the interior ofSindh in Pakistan, hassuccessfully distributedworlds leading tyre brandsin and out of Pakistan.Today, Tyre Sales boasts of havingoffices in Pakistan, UAE, USA, Kenyaand China from where it distributesmainly in the Middle East, Africa andsome parts of Asia.TYRE SALES distributes varioussegments of tyres like Passenger CarRadials, Truck & Bus Bias & Radials,Farm, Light Truck Tyres & Off-The-Road tyres.

TYRE SALES distributesbrands like APOLLO,BOTO, AEOLUS, DOUBLEHAPPINESS, OVATION,COOPER, YOKOHAMA,and CONTINENTAL invarious countries &markets.

The group also owns anddistributes its private labelsin commercial tyres by thename of GREEN DRAGON,TUFFSTONE & SHAHEEN.These brands have become very popularin the markets that they serve.Tyre Sales created history by taking thelargest ever group over 100 of its highachieving dealers to Malaysia in April2011.These 108 dealers were invited frommany parts of the world to Malaysia fora six-day excursion trip. The tourincluded a fun trip to Sunway LagoonPark in Kuala Lumpur, fabulous GentingHighlands, majestic Batu Caves & otherpla ces of interest in Malaysia .These dealers came from countries likePakistan, UAE, USA, Kenya, China,Yemen, Somalia, Iraq, Egypt and India.The high point of the tour was ApolloVista - Tyre Sales Dealers Convention.The convention was attended Apollo’sexport team led by Mr. Rajesh Kumar,Head of International Sales & Mr. RajeshUday Kumar, Regional ManagerInternational Sales Apollo Tyres Ltd.,India. They shared the plans of ApolloTyres to become one of the world's topten manufacturers in the next five years.Apollo plans to become a US $6 Billioncompany. In the last few years Apollohas acquired Dunlop Tyres of SouthAfric a and Vredestein Tyres ofNetherlands.

Dr. Barkat Charania, Chairman ofCharania Group of Companies, Mr.Nuruddin Abjani, CEO of Tire Sales, Mr.Imran Charania, Chief of UAEoperations, Mr. Feisal Shariff, Chief ofUSA operations & Mr. Harrison Mungai,Chief of African operations also sharedtheir views about Global economy andplans about future of TYRE SALES'future projected activities in differentparts of the world.All dealers from different parts of theworld had a very good opportunity toknow each other and learn about foreignlands and ways of doing businesses....

TYRE SALES Corporation

Monthly AutoMotive Magazine

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www.automark.pk | July-2011 39

Automotive Technology - Review

The first thing that comes to mind whenmost people think about cars is SPEED.The mind gripping and fascinatingfeature of automotive, which motivatesengineers to build cars that touch’s thepeak of speed.Technically, a high speed super carshould have a powerful engine that cantow the vehicle to its limit along withthe aerodynamic design that isresponsible for its stability on normalroads.This article is featuring up to the datethe world’s fas test production car“Bugatti Veyron 16.4.”. It has the fastestacceleration speed, reaching 60 mph in2.5 seconds. If we ta lk abo utperformance we are dazzled by thissuper car power to reach 200 and 300km/h (124 and 186 mph) in 7.3 and 16.7seconds respectively, wining for herselfthe name of the quickest-acceleratingproduction car in history. If we countthe fact that the top speed of BugattiVeyron is 429.6 km/h, a speed limitedelectronically to prevent tire damage (itcan run even faster). we can understandwhy this spectacular car must consume40.4 L/100 km (4.82 mpg) when it isrunning at top speed and in city driving24.1 L/100 km. The original company founded in 1909by Ettore Bugatti produced some of themost exclusive cars in the world, as wellas some of the fastest. The originalBugatti brand failed with the coming ofWorld War II, like many high-endmarques of the time. The death ofEttore's son Jean Bugatti was also a

contributory factor. The companystruggled financially, and released onelast model in the 1950s, beforeeventually being purchased for itsairplane parts business in the 1960s.Today the name is owned by theVolkswagen Group , who has revived itas a builder of limited productionexclusive sports cars.Bugatti Veyron 16.4’s enormous poweris made visible by its impressive mid-engine, which is elevated majesticallybeneath the chassis; the exclusive W-

configuration 16-cylinder engine is usedfor the first time in a passenger vehicle.W16 engine has 16 cylinders in 4 banksof 4 cylinders fed by four turbochargers,a dual-clutch DSG computer-controlledmanual transmission. Counting a sumof 10 radiators, for the engine coolingsystem, for transmission oil, a heat

exchanger for the airto liquid intercoolers,for engine oil etc., thecar has a power toweight ratio of 529bhp/ton.

Veyron 16.48.0L W16 Twith 7-speed automatedmanual transmission andAWDHorsepower 1001/6000 rpmTorque 922/2200 rpm0-6 mph 2.5 secThe Veyron has a length of 4.47 m, awide of 2 m and height of 1.2 m. Withits luxurious length of 4.47 m, theVeyron is a perfectly b alancedc omb i na t i on o f hi g h-po wer edperformance and sleek, racy design. Theclassic two-tone color scheme revealsevery detail of Bughatti.The beautiful aerodynamic shape isresponsible for great road stability athigh speed. The Bugatti hunkers down,lowering its normal ride height in twosteps, which helps reduce force and dragcoefficient, two factors that consumethe most amount of power. So with thisimprovement, more power is availablefor acceleration.

Air brake at rear trial.To develop tires that withstand 250-plus mph while supporting up to 4800pounds of car, occupants, and downforce was the major challenge. That wassolved by special Michelin PAX SystemPilot Sport tires.A model driven by a superstar like TomCruise, couldn’t name itself cheap,raising the Bugatti Veyron to a price tagof $1,700,000, a price that measures upto its quality. Many new designs havebeen released since 2006, the colormig ht hav e c han ge d, but t heperformance and power remain thesame....

High Speed Super CarA model driven by a superstar like Tom Cruise,

couldn’t name itself cheap, raising the Bugatti Veyronto a price tag of $1,700,000, a price that measures

up to its quality.

by Khurram Sohail



Corporate Event - Update

ISLAMABAD: Mian Akram Farid,Chairman, Skill Development Council(SDC) on Tuesday said womenentrepreneurs will be provided trainingon subsidized rates. Speaking at afunction organized by IslamabadWomen Chamber of Commerce andIndustry (IWCCI), Mian Akram Faridsaid; Established by the Government ofPakistan, Skill Development Council(SDC) Islamabad is a quality trainingprovider for students and professionalsfor continuous skill up gradation and topromote skills which help Pakistan tob ec o me g lo b a ll y c omp et i t i ve .

He further added; SDC Islamabadidentify the training needs, design anddev elo p tra ini ng prog rams i nconsultation with experts from therelevant industry and then arrangetraining on contractual basis at varioustraining institutes in both public &private sector having requisite trainingfacilities. These training Programs areneed based, flexible, demand driven,cost effective and related with industrydirectly or indirectly with maximum

participation from the Employers.

SDC Islamabad focuses to maximize thepotential of participants through theacquisition of knowledge and skill; italso provides extra ordinary on targettraining to develop the potential of workforce by increasing their standard ofskil l and basic education, so as toincrease productivity, quality of productand to meet the needs of both domesticand International market.M ia n Ak ra m Fa r i d sa id S ki l lDevelopment Council Islamabad hasbeen very successful in catering to theneeds of human capital development byarranging training to more than 17000trainees since its inception.

SDC Islamabad offers a wide range oftraining courses to fill the skill gapsunder its In-House Training Programat its premises for Students, Mid-CareerProfessionals and Employees of variousOrganizations like Air Weapon Complex,M arit ime Tec hnolog i es, H eav yMechanical Complex, KRL, NationalDevelopment Complex (NDC), Project

Management Organization (PMO), PAF,NESCOM, Internati onal IslamicUniversity, Quaid-e-Azam University,Riphah International University, HITTaxila, PAEC, NUST, UET Taxila, POFWah, State Bank of Pakistan etc.

SDC also specializes in customized In-House Training programs tailored tomeet the specific training needs of ourvalued client organizations and toimprove performance and effectivenessof its team of professionals.

SDC Islamabad also arrange a varietyof trainings under its InstitutionalTraining Program with collaboration ofits partner institutes for boosting skillsand knowledge of those already inemployment and those about to enterthe market and take the students up tothe level of working with their ownprojects and with professional level workflow by covering important areas likeComputer & IT, Technical & Vocationaland Management.....

Chairman SDC Mian Akram Faridvisited Islamabad Women Chamber

of Commerce & Industry



Continuing our discussion from ourprevious article (March, 2011), Chinahas adopted numerous measures to copethe challenge of environment aldegradation for which the AutomobileIndustry is seen as a huge source. Bydeveloping Hybrid / Electric vehicles,China aims to deal with environmentaldegradation, and side by side achieveindependent innovation and also solvethe problem of intellectual propertyrights [1]. In this regard, we would liketo suggest the following points for thedevelopment of Chinese, as well as anyother automobile industry.

Balancing IntellectualProperty Rights andSocial welfareThe concept of Intellectual PropertyRights is of contradictory nature [2][3],yet, it is crucial that core technologyshould be protected. Therefore, there isa need to identify alternate methods tomotivate Inventors and Innovatorsincluding Financial and Non-Financialbenefits. And that a balance should bestruck between Intellectual PropertyRights and Social Welfare following theModel of Islamic Innovation DrivenCivil ization / Economy [4], whichproved to be the first ever truly universal

civilization in the history of mankind[5 ], a nd , wa s t he S c i ent i f i c ,Technological and a Cultural bridgewithout which Europe could not hadcrossed over from barbarism intomodernity [6].

Customer Orientationand ContinuousInnovationIntellectual Property Rights create amonopoly for the inventors / innovatorsand thus limiting social welfare [7], and,one of the challenges to be faced byChinese Automobile Manufacturers inthe process of developing Hybrid /el ec t r ic V ehi cl es is Cust omerOrientation. Since customers are a hugesource of continuous ideas so they needto be involved and rewarded in theprocess of realizing innovation; and who,tog et her with the Government,Automobile Companies and ChineseAcademia can jointly own IntellectualProperty Rights for accelerating socialwelfare. And for that there is a need todevelop a mechanism or an institutebacked by the Chinese Government byusing internet and telecom technologies,for example “innocentive.com” [8].

Global WarmingConspiracyOur research also shows a contrary viewpoint regarding the Global WarmingTheory, which forms the basis for “GreenTechnology” and ultimately has andcontinues to affect almost all industriesand sectors of life including theautomobile industry. “Climate Gate”: apopular word is used by scientists andresearchers opposing the GlobalWarming Theory. They state thatPoliticians, Academicians, and Businessenterprises thirsty for money have joinedhands to use the so called “Global

Warming Theory” forpersonal gains only.And t hat a ct ualscientific data has/isb e i n g h i d d e n ,modified according toown needs, and massmedia has/is beingused to exploit thecommon person, and is a part of theOne World Government program / NewWorld Order [9] having its basis insocialism / Marxism [10] [11] [12] .In November, 2009, hackers broke intothe East Anglia University computersystem and released e-mails anddocuments clearly showing that the dataregarding Global Warming has and isbeing falsified for monetary gains andWorld domination purposes. And thatthe Intergovernmental Panel on ClimateChange (IPCC) is not a reliable sourceof science on global warming [13].Critics of the so called Global Warmingpolicy and trends stated that, themajority of Politicians and Scientistshave now become so hostile that theydo not allow anyone to criticise theGlobal Warming Theory and have closedall forms of negotiations/debates. Butin reality they do not have any significantand valid data to support their stand.Moreover, a letter, signed by Top 141scientists from all over the world, wassent to the Secretary-General, UnitedNations in December, 2009, claimingthat the Global Warming Theory istotally a fraud and without solid facts[14]. The letter further challenged theGl ob al W a rmi ng The or i st s t odemonstrate the following, who haveutterly failed till this day:

a) Variations in global climate in thelast hundred years are significantlyoutside the natural range experiencedin previous centuries.

China and the Challenge ofEnvironmental Degradation

Raja Irfan Sabir

Intellectual Property Rights create a monopoly for theinventors / innovators and thus limiting social welfare

and one of the challenges to be faced by ChineseAutomobile Manufacturers in the process of developing

Hybrid / electric Vehicles is Customer Orientation.

Focus on Environment Exclusive article by Raja Irfan Sabir



b) Humanity’s emission of carbon dioxideand other “green house gases” (GHG)are having a dangerous impact on globalclimate;

c) Computer-based models c anmeaningfully replicate the impact of allthe natural factors that may significantlyinfluence the global climate;

d) Sea levels are rising dangerously ata rate th at has accelerated withincreasing human GHG emissions,thereby threatening small islands andcoastal communities;

e) The incidence of malaria is increasingdue to the recent climate changes;

f) Human societies and naturalecosystems cannot adapt to foreseeableclimate change as they have done in thepast;

g) Worldwide glacier retreat, and seaice melting in Polar regions, is unusualand related to increases in human GHGemissions;

h) Polar bears and Arctic and Antarcticwildlife are unable to adapt toanticipated local climate change effects,independent of the causes of thosechanges;

i) Hurricanes, other tropical cyclonesand associated extreme weather eventsare increasing in severity and frequency;

j) Data recorded by ground based stationsare a reliable indicator of surfacetemperature trends.

Furthermore, the opponents of GlobalWarming state that “The propaganda ofman-made global warming has beenpromoted by those with a polit icalagenda by suppressing the truth andspreading fear. In this effort they havere c r ui t ed a c a d e mi c s , me di a ,environmental groups, governments,the United Nations, even religions.Scientific evidence supporting man-made global warming has now beeninvestigated by scientists and found tobe baseless. Examination of the data hasrevealed the theory of climate changefor the propaganda it is, derived from

erroneous data, junk science, evenscientific fraud” [15]. And moreover,High Frequency Active Auroral ResearchProgram (HAARP) is often used to alterweather, trigger earthquakes andvolcanoes to support the false theory ofGlobal Warming [16] [17].

References:[1] Raja Irfan Sabir. IP Based IndustrialInnovation System for the ChineseAutomobile Industry: Implications ofdeveloping Green Cars for SustainableDevelopment. Post Doctoral Thesis,Huazhong University of Science &Technology, P.R. China. June, 2011.[2] Michele Boldrin, David K. Levine.Ag ai nst Int ellect ua l M onopol y.Cambridge University Press. 2008.[3] Wesley M. Cohen, Richard R. Nelson,John P. Walsh. Protecting theirIntellectual Assets: AppropriabilityConditions and Why U.S ManufacturingFirms Patent (or Not). Working Paper7552, National Bureau of EconomicResearch, Cambridge, 2000.[4] R. Irfan Sabir, Mijitaba MamanMoustapha, Muhammad Mudassir.Islamic Model of an Innovation DrivenEconomy: Examining the Characteristicsof the Islamic Civilization. Published inthe proceedings of InternationalConference on Applied Social Sciences,Changsha. March, 2011. Vol. II, 69-74.[5] Bernard Lewis. From Race andSlavery in the Middle East: An HistoricalEnquiry. In Kevin Reilly, StephenKaufman, Angela Bodino. Racism: AGlobal Reader. M.E. Sharpe. 2003. pp.52–58.[6] Y. G.-M. Lulat. A History of AfricanHigher Education from Antiquity to thePresent: A Critical Synthesis (Studies inHigher Education). Praeger, 2005. p.

466.[7] Mohamed Ben Ahmed. Talk in TransAtlantic Consumer Dialogie (TACD)Conference on "The Polit ics andIdeology of Intellectual Property",Brussels, 20-21 March 2006.[8] Innocentive.http://www.innocentive.com. Accessedon 10th June, 2010.[9] Jesse Ventura. Global WarmingConspiracy. True TV.http://www.trutv.com/shows/conspiracy_theory/index.html. Accessed on31st May, 2011.[10] Mattie Jax. Obamaism is Socialism.Xlibris Corporation, 2010.[11] Christopher C. Horner. Red HotLies: How Global Warming AlarmistsUse Threats, Fraud, and Deception toKeep You Misinformed. RegneryPublishing, 2008.[12] Ralph B. Alexander. GlobalWarming False Alarm: The Bad Sciencebehind the United Nations' AssertionThat Man-made CO2 Causes GlobalWarming. Canterbury Publishing, 2009.[13] David E. Robinson. ClimategateDeb unked. Crea teS pa c e, 20 10 .[14] Kris Axh oj, John P. Walker.Resurrection of a Nation: Solving theEnergy, Financial, & Political Crisis inAmeri c a. Aut horH ous e, 2 0 10 .[15] Leo Johnson. Understanding theGlobal Warming Hoax. ElderberryPress, Incorporated, 2009.[16] New NASA research points topossible HAARP connection in JapanE a r t h q u a k e , T s u n a m iht tp://ww w.pa ka ler t press .c om.Accessed on 12th July, 2011.[17]http://www.tudou.com/playlist/p/l8379839i48480784.html.Accessed on 12th July, 2011.

The propaganda of man-made global warming has beenpromoted by those with a political agenda by suppressing the

truth and spreading fear. In this effort they have recruitedacademics, media, environmental groups, governments, the

United Nations, even religions.

Focus on Environment

About writerDr. Raja Irfan Sabir, Post Doctoralcandidateand Sub editor of monthlyAutoMark Magazine. Chinese-GermanInstitute for Intellectual Property, Schoolof Management, Huazhong Universityof Science and Technology, Wuhan,China.



Exclusive Review on Mega Event

It does not matterwhether you are intob ra n ds o r n o t ,everyone of us hasdriven into or walkedpa ssed by a ga s

station that has a distinctive yellow colorassigned to it having a monogram thatrepresents the name of the brand itself,as most of the people must havepredicted by now, I am mentioning thebrand Shell. The Dutch based oil & gascompany is a world leader in energysector, focusing not only towards theexploration & extraction of conventionalfuels but also to alternatives of energyfor instance bio-fuels, hydrogen, solarenergy, wind energy etc. Being a global giant Shell involves inmany other activities that are basicallytargeted towards marketing of the branditself via some particular creativeactivity. Shell ECO Marathon (SEM) isone such event organized by Shellinternational that encourages youngundergraduate engineers around theglobe to engage in designing, simulating,developing, testing & finally competingtheir vehicles in an international eventin which students from multiplecountries participate with similarintentions i.e. to win. The motive of theevent is basically to design such vehiclesthat consume minimal amount of energyfor their propulsion. Winner walks awaywith the pride of developing the most

fuel efficient vehicle.SE M emerg ed a s a la borat oryexperimental competition amongstscientists in the year 1939. With thepassage of time it developed as a globalevent allowing students to utilize theirinnovative concepts to maximizeefficiency. SEM is now a regionalcompetition held for American,European & Asian parti cipants.There are two basic categories ofparticipation classified as Urban &Prototype categories. Prototype categoryis assigned for the cars participating forthe extreme mileage achievable, certainbasic aspects of road going vehicles canbe ignored to maximize the fueleconomy through reduced aerodynamicdrag & road friction. However in Urbancategory certain regulations have beenset up that ensure that the developedvehicle possesses certain features thatare necessary in modern day urbantransportation vehicles includingparticular ground clearance & vehicleheight etc.Various student groups or teams as theyare called in the competition, fromPakistan have now participated in theAsian event for successive three yearsnow. The trend began three years agowhen a student team from NUSTparticipated three years ago in SEM.This triggered a hustle of student groups

from universitiesn a t i o n w i d ei n t e n t i o n a l t oparticipate in theevent.Last year a hugeparticipation in theevent was registered.Around 30 studentteams gathered for the registrationprocess out of which 21 or 22 got theparticipation affirmation. Only formNEDUET a bulk of 7 teams registeredto participate in the event. There werehuge expectations from all theparticipants of Pakistan. Sponsors &Media both backed the participantsfirmly to achieve what they had set outfor. Automark magazine itself publishedindivi dua l reports of di fferentparticipating teams & the event itself.However all the hopes were shatteredas most of the vehicles didn’t even madeit on track in the event, those who madethe cut didn’t register any official result.A survey of this unsuccessful tour wasalso conducted by Automark which wascompiled by the author to this veryarticle & published in the very nextedition which highlighted all the reasonsbehind the failure of the vehicles in theevent.Due to this catastrophic failure, limitingthe number of participants for nextyea r’ s ev ent was sugg est ed &implemented in many engineering

Spot Light on the Performance ofPakistani Teams in

Shell ECO Marathon Asia 2011

Shell ECO Marathon,the Past & the Present

by Shahzad Tabishfrom NED University



Exclusive Review on Mega Event

institutes including NEDUET. This wasdone to improve the chances of successin the event of only the seriousparticipants, who had done their properhomework bef ore & a ft er t hedevelopment of vehicle. Also, thesponsors were better assured due tolimiting the number of teams to supportonly the most deserving & dedicatedteams.For the year 2011 a total of 20 teamswere selected after passing theirtechnical submission from nation wideto participate in the event. The list ofthe selected teams has been mentionedas follows.

AIR University1. Airians2. Hexa-K3. The Y-Nots!College of Electrical and MechanicalEngineering - National University ofScience and Technology

(CEME-NUST)1. Emenents PT2. Emenents UC3. Pak-WheelersGhulam Ishaq Khan Institute ofEngineering Sciences and Technology

(GIKI)1. Aqua II2. Infinity3. Mech-Venturers

HITEC University1. Iyaad2. Pak ThunderNED Karachi1. Paragon2. WinmarkPakistan Navy Engineering College -National University of Science and

Te c hn o l o g y (PNEC-NUST)1. Team Nust Pnec 012. Team Nust-Pnec3. Team Nust Pnec-AUniversity Of Engineering & Technology

Lahore (UET Lahore)1. Fireflies2. Team Synergy3. Team UET

University Of Engineering & Technology

Taxila (UET Taxila)1. Pak PacersThe event was scheduled to happen from6-9th July 2011, so as you read thisarticle the event has already happened& results have been announced. Fromthe selected 20 teams only 14 were

finally present to participate in the event.Despite of all the hopes from this;consecutive 3rd year appearance ofPakistani teams in SEM, all seemed lostwhen results were reviewed. The list ofall the teams & their respectiveperformance has been mentioned intabular form below.As we can clearly see the results are farfrom satisfactory. Many teams haven’teven registered any results; some havemade attempts but registered no mileagedue to either failure of vehicle on trackor due to non completion of assignedlaps in allotted time or due to vehiclerunning out of assigned gas on track.What ever the cause may be, the vehicleswere not able to register mileageofficially. Some teams out of the bluewere able to register some mileageresults but the economy was poor & noway near the mileage of the winners intheir respective categories.Before leaving Pakistan, many teamshad claimed mileage as high as 200 km/lof gasoline. The award winner in theurban category has registered only 116km/l of petrol, so there is only one bigquestion, where were those claims loston the Day of Judgment?Team Winmark has complained afterthe event that most of Pakistani vehiclesincluding theirs were delayed by Shellorganizing committee. In accordance tothem they got only four hours to do theirfive runs & that the time was insufficientto install the Efi setup into the vehicle.Whatever the reason may be, the realityremains the delivery of an unsatisfactoryresult from them.The real disappointment has comefrom t he tea ms who haveparticipated two years in a row inSEM. Last years experience shouldhave had some influence in thisyears result but sadly we don’t seeany improvement.One major concern due to theseunsatisfactory results is the involvementof sponsors in the support of next year’sevent. Sponsors will start loosing theirtrust in student teams & their abilitiesto deliver in theevent, this willd i r e c t l ycorrespond to thelack of funding dueto the la ck ofsponsors interestin any furt herevents.

Highlighting the major concerns overthis lackluster performance of teamssimply remains in a singular word i.e.“Testing”. Car is a complex assemblythat goes through the phases of design,design simulation, fabrication & finallytesting. Simply taking a leaf out of theleading manufacturers of cars globally,the entire time they utilize to design,simulate & fabricate any of their vehiclesis equivalent to the time they utilize totest this complex man made assembly.We have to remember that thesimulations only work partially the realtest comes in the real world of testing.As we know that Car is a complexassembly, the reliability of this assemblyhas to be thoroughly tested before anyclaims about the mileage can berecorded.Similarly student teams utilize a lot oftechnical assistance in fabrication &repair of their vehicles at their bases,however all these repair & fabricationlessons have to be swallowed so that theteam is abl e to ov ercome anycatastrophic failure itself at the eleventhhour.Reaching towards the conclusion wehave to say that the words mentionedhave not been written to demoralize theyouth, however it is our responsibilityto learn from them. Youth of Pakistanis fortunate to have this immense talentwithin, with the capability of indulgingin hard work but the misfortune comesin financial assistance. If the studentskeep on producing such results thefinancial aid will stop inevitably & theinnovation will conclude with it.Last year Automark highlighted all theaspects that led to the failure of teamsin order to spread the awarenessamongst this year’s team not to repeatany such mistakes again. This year wehave again came up with all thenegatives so that next year we canreally hope to see dawn of an erawith Pakistani teams registeringrespectable results in the event.Hope for the very best. Cheers!


Model Price

CHERY QQ

CHERY QQ PetrolCHERY QQ CNG

CHEVROLETModel Price

Rs. 569,000CHEVROLET JOY CNG

Rs. 539,000CHEVROLET JOY Petrol

Price updated July- 2011

MEHRAN VX 800ccMEHRAN VX (CNG) 800cc

MEHRAN VXR (CNG)MEHRAN VXR

ALTO VX 1000cc

ALTO VX (CNG)

ALTO VXR

ALTO VXR (CNG)

Rs. 481,000Rs. 533,000

Rs. 534,000Rs. 584,000

Discontinued

Discontinued

Rs. 693,000

Rs. 748,000

SUZUKIModel Price

LIANA 1.3L RXI MT PETROL

CULTUS Efi VXRI

CULTUS Efi VXRI (CNG)

LIANA 1.3L RXI MT (CNG)

LIANA 1.3L LE MT PETROL

RAVI PICKUP ST308R VX

RAVI PICKUP ST308R VX CNGBOLAN VAN VX Petrol

BOLAN VAN VX CNG

SUZUKI VAN CARGO

BOLAN VAN VTR PETROLBOLAN VAN VTR CNG

LIANA 1.3L LE (CNG)

Rs. 891,000

Rs. 938,000

Rs. 1,205,000

Rs. 1,276,000

Rs. 1,175,000

Rs. 562,000

Rs. 604,000

Rs. 620,000Rs. 682,000

Rs. 537,000

Rs. 1,246,000

Rs. 508,000

Rs. 564,000

SUZUKI SWIFT 1.3L PETROL Rs. 1,113,000

NISSAN CARSModel Price

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

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

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

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

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

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

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

HYUNDAI

Model PriceHonda CRV Automatic 2400cc Japan Rs. 5,566,000

Honda City Automatic Rs. 1,515,000Honda City Manual Rs. 1,379,000

Honda Civic VTEC Manual

Honda Civic Oriel Manual

Rs. 1,860,000

Rs. 2,000,000

Honda Accord Automatic 2400cc Japan Rs. 5,966,000

HONDA

LAND ROVER

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

Rs. 2,150,260

DEFENDER

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

(90 Soft Top)

Car / Light Vehicle Price ListCar / Light Vehicle Price List

APV 1.5L JL SX MT (CBU) Rs. 1,805,500APV 1.5L JL DX MT (CBU) Rs. 1,956,000

DAIHATSU

Rs. 8,09,000

Rs. 8,70,000

CX ECO (CNG)

CX AUTOMATIC

Rs. 7,59,000CUORE CX

Model Price

Hilux Pickup 4x2

Brand New Toyota Hilux Pickup, 4x2,Single Cabin, (Local Assembled)Standard Model

Rs. 1,489,000

Model PriceModel Price

Rs. 1,735,000

Rs. 1,920,000

Honda Civic Oriel ProsmatecHonda Civic VTEC Prosmatec

Hilux Pickup 4x4 D/C

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

Model Price

Rs. 2,359,000

TOYOTA COROLLAModel Price

ALTIS 1.6L Dual VVT-i MT

2.OD SALOON MT

GLI 1.3 VVT-i Rs. 1,482,000

XLi 1.3 VVT-i Rs. 1,357,000

2.OD SAL SUNROOF Rs. 1,014,000

Rs. 1,809,000

Rs. 1,684,000

Rs. 1,774,000

2.OD STD 2000cc Rs. 1,504,000

ALTIS 1.6L Dual VVT-i MT SUNROOF

ALTIS 1.6L Dual VVT-i AT

ALTIS 1.6L Dual VVT-i AT SUNROOF

Rs. 1,774,000

Rs. 1,864,000

GLI 1.3 VVT-i AT Rs. 1,679,000


www.automark.pk

[email protected]

July



Automotive Sector - Corporate Event


MADE IN PAKISTAN MOTORCYCLESRETAIL PRICE LIST

70cc Motorcycle

Retail Price

Rs. 42,500/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 42,000/=

Rs. 40,000/=

Rs. 40,000/=

Rs. 49,000/=

Rs. 39,000/=

Rs. 45,000/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 46,000/=

Rs. 47,000/=

Rs. 41,000/=

Rs. 65,500/=

Rs. 42,000/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 44,800/=

Rs. 40,000/=

Product &

Model Name

Aan AI-70

Asia Hero AH-70

Bionic AS-70

Crown Lifan CRLF-70

Challenger BA-70

Diamond SD-70

Dhoom YD-70

Eagle DG-70

Ghani GI-70

Guangta GT-70

Grace CT-70

Hero RF-70

Hero RF-70 Plus

Habib HB-70

Honda CD-70

Hi-Speed SR-70

Jinan JN-70

Leader LD-70

King Hero KH-70

Moon Star MT-70

Master MD-70

Metro Hi-Tech MR-70

New Asia NA-70

Sr./

No.

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

17.

18.

19.

20.

21.

22.

23.

Product &

Model Name

Pak Hero PH-70

Ravi Premium R1

Ravi Hamsafar-70

Road Prince RP-70

Royal Star RS-70

Royal RL-70

Racer AS-70

Safari SD-70

Sakai SK-70

Star DL-70

Sohrab JS-70

Sonica SM-70

Super Asia SA-70

Super Star SS-70

Super Power SP-70

Super Power Delux

Toyo TG-70

Target TT-70

Unique UD-70

Union Star US-70

United US-70

Zxmco ZX-70

Retail Price

Rs. 42,500/=

Rs. 47,000/=

Rs. 43,000/=

Rs. 41,000/=

Rs. 41,000/=

Rs. 42,500/=

Rs. 41,500/=

Rs. 40,000/=

Rs. 39,000/=

Rs. 39,900/=

Rs. 41,500/=

Rs. 42,400/=

Rs. 39,500/=

Rs. 40,500/=

Rs. 40,500/=

Rs. 45,000/=

Rs. 41,000/=

Rs. 40,000/=

Rs. 41,000/=

Rs. 42,000/=

Rs. 40,000/=

Rs. 42,000/=

Sr./No.

24.

25.26.

27.

28.

29.30.

31.

32.33.

34.

35.

36.37.

38.

39.40.

41.

42.

43.44.

45.

Price updated July-2011

MADE IN PAKISTAN MOTORCYCLESPRICE LIST



125cc Motorcycle 100cc MotorcycleBrand & Model Name

Habib HB-125

Sitara ST-125

Super Star SS-125

Hero RF-125

Honda CG-125 STD

Honda CG-125 DX

Metro MR-125

Ravi Storm-125 Euro II

No.

1.

2.

3.

4.

5.

6.

7.

8.

Retail Price

Rs. 88,000/=

Rs. 55,000/=

Rs. 54,000/=

Rs. 75,000/=

Rs. 89,500/=

Rs. 111,000/=

Rs. 77,000/=

Rs. 78,000/=

Brand &Model Name

Ghani GI-100

Habib HB-100

Honda CD-100

Sitara ST-100

Super Star SS-100

Super Power SP-100

Unique UD-100

No.

1.

2.

3.

4.

5.

6.

7.

Retail Price

Rs. 55,500/=

Rs. 55,000/=

Rs. 73,900/=

Rs. 55,000/=

Rs. 55,000/=

Rs. 55,000/=

Rs. 60,000/=

Sr./

No.

1.

2.

3.

Yamaha MotorcycleProduct &

Model Name

Yamaha YD100

Yamana Yama4

Yamaha YB100 Royale

Retail Price

Rs. 75,900/=

Rs. 72,000/=

Rs. 72,900/=

Sr./

No.

1.

2.

3.

4.

5.

Suzuki MotorcycleProduct &

Model Name

Suzuki Sprinter ECO

Suzuki Sprinter STD.

Suzuki GS-125

Suzuki GS-150

Suzuki Shogan

Retail Price

Rs. 67,500/=

Rs. 71,000/=

Rs. 82,900/=

Rs. 88,500/=

Rs. 79,500/=

MADE IN PAKISTAN MOTORCYCLESPRICE LIST

51www.automark.pk | July-2011 51


Mr. Aale Imran, Mr. Saleem A. Shaikh ChairmanDiplomatic Committee HCCI with Kazi Asad AabidChairman/Cheif Editor, Ibrat Group of Publications


Corporate Event - Update

Mr. Alexey SAVIN, Deputy Director andVice-Consul of the Consulate General of Russia

with Ms.Syeda Sana

Mr. Aale Imran, Sales Officer, Mr. Naeem uddin Khan,

National Sales Manager, Mr. Waqar Ali, InchargeAdvertisement and Mr. Ahmed Saeed, Sales Officer of

Karachi Region.

Mr. Asif Saddal Asstt. Manager Export with Syeda SanaCo-Ordinator of M/s. Fateh Textile Mills Limited.

Naeem Sahib, Sharmila Farooqi and Asif Saddal(FTML) , Asst. Manager Marketing

Fateh Group participated on Russian Day in Karachi


monthly automark magazine

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cng stations

percent cng

cng vehicles

cng sectorwhereas

usage of cng

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cng use

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