tag:blogger.com,1999:blog-5848640164815342479.post8954848885529416770..comments2024-03-27T15:36:44.737-07:00Comments on Haq's Musings: Auto Industry Prospects in India and PakistanRiaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger70125tag:blogger.com,1999:blog-5848640164815342479.post-86411627958380079672023-08-06T07:58:33.560-07:002023-08-06T07:58:33.560-07:00Fingers ‘turned to powder’: maimed workers of #Ind...Fingers ‘turned to powder’: maimed workers of #India’s #automobile hub in #Haryana. Poor training, shoddy equipment leave thousands of auto workers injured. 52% of accidents happen on power press machine, 47% of workers had low-quality safety gear. #MakeInIndia #safety https://www.aljazeera.com/economy/2023/8/4/crushed-fingers-hands-mar-indias-auto-manufacturing-hub<br /><br />At the break of dawn, thousands of workers walk out from dusty and congested maze-like alleys to work at nearby factories in Manesar, one of India’s leading automobile hubs, about 50km (31 miles) south of the capital.<br /><br />In India, the automobile industry employs around 3.7 million people and contributes 7.1 percent to the gross domestic product (GDP). Just in Manesar and the next-door city of Gurugram, both in Haryana state, approximately 80,000 workers are employed in different automobile units of Hero MotoCorp, Maruti Suzuki, Yamaha, and other global companies.<br /><br />Waiting restlessly outside a government dispensary for his turn, Manish Kumar, 20, a worker at one such factory in Manesar, quickly covers his bandaged hand with a piece of cloth as a group of workers walk past him. In February, Manish lost two fingers when a power press machine, used in the manufacturing of car windows, came crashing down on his hand.<br /><br />“I came to Manesar like thousands of other workers to support my family and for a better future. But little did I know, instead, this place would make me dependent on someone for the rest of my life,” Manish told Al Jazeera.<br /><br />“The incident is fresh in my mind and I get traumatised when someone asks me what happened to your hand, and that’s why I try to hide it most of the time,” he said.<br /><br />Before the outbreak of the COVID-19 pandemic, Manish worked as a casual labour in his central Indian state, Madhya Pradesh. To meet his daily ends and support his ailing parents, he boarded a bus to Manesar, like hundreds of others from his village, in search of a better job opportunity. Soon at the recommendation of a friend, he landed a job that would earn him 13,500 rupees ($163) per month in a small factory manufacturing parts for auto major Maruti Suzuki.<br /><br />“The factory owners don’t care about our safety; their main agenda is production should not stop at any cost … The machine I was working on malfunctioned for a week, and still I was made to work on it instead of getting it repaired. The machine crushed my two fingers due to their negligence, turning them into powder.”<br /><br />“It has been over a month, and still, I don’t know whether I will ever be able to work again,” said Manish while struggling to clear drops of sweat dripping from his face. He said he is yet to receive any compensation for his injury.<br /><br />Like Manish, thousands of others have been injured while working in this sector in India. “Crushed”, a report published by Safe in India Foundation (SII) revealed that, on average, 20 workers lose their hands and/or fingers daily while working in automobile factories spread in the Manesar and Gurgaon areas. Around 65 percent of injured workers are under the age of 30.<br /><br />The automobile manufacturing sector in India recorded 3,882 incidents of injuries including 1,050 deaths in 2020, according to data from the Directorate General Factory Advice Service and Labour Institutes (DGFASLI). That year, the state of Haryana reported 50-60 nonfatal accidents, it said. However, SII says that figure is far from reality as each year it helps at least 4,000 workers suffering from a range of injuries in the state’s auto sector.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-17070151543371952272021-08-11T12:37:14.301-07:002021-08-11T12:37:14.301-07:00#China's Great Wall Motor to shift some #India...#China's Great Wall Motor to shift some #India investment to #Brazil after approval delays. It is reallocating to Brazil a portion of its $1-billion investment in India. Great Wall is acquiring Daimler's plant in Brazil to build #SUVs. #automobile<br /><br />https://www.reuters.com/business/autos-transportation/exclusive-great-wall-motor-shift-some-india-investment-brazil-after-approval-2021-08-11/<br /><br />In 2020, Great Wall unveiled plans to invest $1 bln in India<br />Part of the $1 bln being re-allocated to Brazil -sources<br />Firm close to buying plant in Brazil amid global push -sources<br />Great Wall committed to India but cautious over delays -sources<br />NEW DELHI/BEIJING, Aug 11 (Reuters) - Great Wall Motor (601633.SS) has decided to re-allocate to Brazil a portion of its $1-billion investment in India, as the Chinese automaker has been unnerved by a year-long delay in winning government approvals, three sources told Reuters.<br /><br />The re-allocation, which could range up to $300 million, comes as the sources said the maker of popular sport-utility vehicles (SUVs) and pick-ups was close to acquiring a former Daimler (DAIGn.DE) plant in Brazil to build cars.<br /><br />Great Wall has also tasked James Yang, its India president since last year, with the responsibility of assisting with operations in the Latin American nation, said the sources, who have direct knowledge of the matter.<br /><br />"Brazil is almost a done deal and it did not make sense to keep the funds blocked for India," said one of the sources, explaining the rationale for the change of focus.<br /><br /><br />Great Wall's move is a fallout of India's decision in April 2020 to more closely scrutinise investments from China, the sources said, as part of a crackdown that followed a border clash between the two Asian giants.<br /><br />Just two months before, amid the fanfare of India's biennial car show, Great Wall had said it would invest $1 billion to build cars there, by buying a former General Motors (GM) (GM.N) factory, as well as making batteries and car parts.<br /><br />Two of the sources said the re-allocated funds, budgeted by Great Wall for India since 2020, would mainly have been used to buy GM's factory, a cost that sources had earlier put at about $300 million.<br /><br />Great Wall declined to comment. The Indian government did not immediately reply to an email seeking comment.<br /><br /><br /><br />The step highlights growing nervousness and impatience among Chinese investors, who have seen roughly 150 investment proposals worth more than $2 billion held up by India's slow approvals process, according to industry estimates.<br /><br />The delays are forcing Great Wall, which was expected to begin selling its India-made Haval brand of SUVs in the country this year, to look at taking a more measured approach.<br /><br />It may even consider entering the market with a fully-built imported vehicle before starting domestic production, one of the sources said.<br /><br />"When approvals in India come through, Great Wall will be ready with the money, but it may not be a straight decision anymore," said the source.<br /><br /><br />Report ad<br />"The company will judge the situation before moving forward. What if future approvals get stuck?"<br /><br />Earlier this year, India had been set to clear about 45 of the investment proposals from China, mainly in manufacturing, but it was not immediately clear how many had been approved. read more<br /><br />Indian officials say the situation cannot return to business as usual until de-escalation at the border is complete, however. read more<br /><br />The Chinese automaker will also wait for ties between the two nations to improve and for the COVID-19 pandemic to ease in India before speeding up its plans for the market, said a second source.<br /><br />Great Wall still wants to make cars in India and is now building its supply chain, the source added.<br /><br />The firm saw India as a key market when it kicked off its global expansion, envisioning its plant in the subcontinent to be its biggest outside China.<br /><br />Great Wall now makes cars in Russia and Thailand, where it acquired a plant at the time it announced its India plans.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-28439584589392595862019-05-15T16:25:36.902-07:002019-05-15T16:25:36.902-07:00#India’s stalling #car market sparks wider concern...#India’s stalling #car market sparks wider concerns. Last month, passenger vehicle sales were 17.7% lower, two-wheelers (#motorcycles) down 16% and commercial vehicles declined 6% than a year before #manufacturing #auto #industry #Modi https://www.ft.com/content/b3b92502-7650-11e9-be7d-6d846537acab via @financialtimes<br /><br /><br /><br /> As India overtook China to become the world’s fastest-growing major economy, its buoyant car market was a conspicuous sign of its momentum.<br /><br />Driven by growing urban disposable income, the car sector enjoyed robust growth as sales surged, with global giants such as Hyundai vying for market share with dominant incumbent Maruti Suzuki.<br /><br />Its rapid expansion between 2015 and the first half of last year prompted predictions that India would soon overtake Japan and Germany to become the world’s third-biggest motor market.<br /><br />But figures released this week showed a sudden reversal of that upbeat narrative. Last month, passenger vehicle sales were 17.7 per cent lower than a year before, according to the Society of Indian Automobile Manufacturers. <br /><br />The pain was severe across all vehicle categories, which are closely watched as economic indicators. “Two-wheeler” sales, an important sign of rural economic health, fell by 16 per cent, while commercial vehicle sales declined 6 per cent.<br /><br />For some foreign carmakers, the Indian market has been a tough nut to crack despite the success of Hyundai, Honda and Toyota, which have built up a significant presence in the country. Some big western groups have struggled to compete in the market, where Maruti Suzuki last year held a share of 51 per cent.<br /><br /><br /><br /><br /> General Motors stopped sales in India in 2017 as part of a retreat from its less successful national ventures, and media speculation has been swirling about Ford ceding control of its Indian operation to local peer Mahindra & Mahindra.<br /><br />The latest data add to concerns about flagging economic momentum in India, reflecting weak job growth and the impact of a squeeze in the credit market.<br /><br />Unfortunately for Narendra Modi, prime minister, these worries have arisen in the middle of a general election where he has presented the government as an architect of growth.<br /><br />“It reflects a broader lack of confidence in the economy — the entire consumption sector is slowing down,” said Prabodh Agrawal, chief financial officer at IIFL, a financial institution. “Liquidity is tight and confidence is low.”<br /><br />Industry observers now fear that the car sector has become one of the most prominent victims of a debt market crunch that began last September, when defaults by infrastructure and finance group IL&FS triggered sharp outflows from mutual funds.<br /><br />That drained money from the commercial paper market, a major source of funding for the nonbank financial companies that had driven the growth of loans as they took market share from the ailing state-controlled banks. The so-called NBFCs were particularly active in areas such as vehicle loans and lending to small businesses.<br /><br />“In smaller towns and cities, NBFCs really control the [vehicle financing] game,” said Puneet Gupta, a car analyst at IHS Markit.<br /><br />The motor industry had already been flagging after a strong first half of 2018, but sentiment darkened more seriously as the credit squeeze fed through.<br /><br /><br /> “For everyone I speak to in the market, November was a turning point — there was a ripple effect from the NBFC crisis,” said Anant Goenka, managing director of Ceat, the country’s biggest tyre producer.<br /><br />The tighter credit market has been reflected in India’s economic growth figures: gross domestic product grew at 6.6 per cent in the last quarter of 2018, the slowest pace for five quarters.\Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-62042023459941516192017-09-20T16:10:43.370-07:002017-09-20T16:10:43.370-07:00Pakistan Government asks auto investors to conclud...Pakistan Government asks auto investors to conclude committed investments<br /><br />https://www.thenews.com.pk/print/216089-Government-asks-auto-investors-to-conclude-committed-investments<br /><br />The government on Wednesday asked four investors, which was given approval to invest around $3 billion in setting up auto assembling plants in the country, to furnish all the necessary documents in order to finalise the agreements by next week.<br /><br />In June, ministry of industries and production allowed United Motors Private Limited, Kia-Lucky Motors Pakistan Limited, Regal Automobiles Industries Ltd, and Nishat Group to set up units for assembly and manufacturing of vehicles under the Greenfield investment category.<br /><br />A senior official at BoI told The News that the four companies would likely to bring in investment of around three billion dollars, “which will help in breaking the existing cartel of three Japanese car assemblers and bringing down prices and create job opportunities.” <br /><br />A statement said Khizar Hayat Gondal, secretary ministry of industries and production and Azhar Ali Chaudhry, secretary Board of Investment held a meeting on Wednesday with the four awardees of Greenfield status under the Auto Development Policy (ADP) 2016-21 as a follow-up of the meeting held on June 6.<br /><br />The investors were urged to meet the necessary codal requirements under the policy as early as possible. They were asked to prepare their agreements to be effected pursuant to the award of ‘Greenfield status’ without any loss of time.<br /><br />All concerned assured that these agreements would be finalised over the next week. Most of them expressed the resolve to present all necessary documentation by the 20th of this month, according to the statement.<br /><br />Secretary ministry said companies awarded with Greenfield investment would be required to separately enter into agreements with the ministry of industries and production to ensure compliance with ADP 2016-21, relevant statutory regulatory orders and various timelines for completion of the projects for availing incentives under this policy.<br /><br />The meeting asked the Engineering Development Board (EDB) to examine and put up these cases for approval as and when complete documentation is received.<br /><br />Next monthly meeting with investors will be convened in the ministry of industries and production in the 2nd week of August 2017.<br /><br />EDB will issue manufacturing certificate and list of importable components to new investors after verifying that their manufacturing facilities are adequate to produce roadworthy vehicles. The investors appreciated efforts of the ministry and the board for being pro-active in finalising investment proposals in record time. <br /><br />Applicants for award of Greenfield status also participated during the meeting and showed their level of preparedness. The applicants are Habib Rafiq (Pvt.) Ltd., Khalid Mushtaq Motors (Pvt) Ltd., Pak-China Motors (Pvt) Limited, Foton JW Auto Park (Pvt) Ltd, Cavalier Automotive Corporation (Pvt) Ltd.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-58901849993947191162017-06-03T15:58:32.875-07:002017-06-03T15:58:32.875-07:00After #GM's #India exit, #Volkswagen, #Ford an...After #GM's #India exit, #Volkswagen, #Ford and #Skoda to abandon #Indian #automobile market. http://ecoti.in/XP54SZ via @economictimes<br /><br />Last month, after over two decades in India, Detroit giant General Motors (GM) called it quits. The company will stop selling cars in India and focus only on exports from its factory in Talegaon in Pune. GM will shut down its plant in Halol in Gujarat. It has been struggling in India, selling 25,823 cars in 2016-17, giving it a market share of under 1%. Its dealers and customers are still reeling under the shock. <br /><br />In a market that at last count had over 17 carmakers, and in which the top four control over 75%, a legitimate question to ask is: who next after GM? It’s also pertinent considering that all is not well at many of the bit players — in India as well as at the global headquarters. <br /><br />Look under the hood at Volkswagen India. It has been hit by a flight of senior honchos at the sales division. The head of sales, national head of corporate sales and south sales manager have reportedly quit. <br /><br /><br />More exits are said to be in the offing. The world’s largest carmaker that sold over 10 million cars as a group in 2016 is struggling in India. Under the mother VW brand, the Indian outpost sold 50,042 cars in 2016-17, yielding 1.6% in market share. “India is indeed one of the toughest markets,” says Andreas Lauermann, managing director, Volkswagen India. But he has reason not to give up. “If you can crack it, you can practically access many more such markets around the world. We know that the I .. <br /><br />Read more at:<br />http://economictimes.indiatimes.com/articleshow/58978980.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-24153577261293667052017-04-01T18:19:45.774-07:002017-04-01T18:19:45.774-07:00#Pakistan Indus Motor Company unveils Rs4bln (US$4...#Pakistan Indus Motor Company unveils Rs4bln (US$400m) investment plan to expand production. #Automobiles #Toyota <br /><br />https://www.thenews.com.pk/print/195925-Indus-Motor-Company-unveils-Rs4bln-investment-plan-to-expand-production<br /><br />Indus Motor Company Limited (IMC), a country’s leading automaker, on Saturday unveiled four billion rupees investment plan to expand its annual production capacity by 200,000 units in a bid to capitalise on the growing consumer demand.<br /><br />Currently, IMC holds an annual production capacity of 54,800 units, which are sold under the brand name of Toyota. The planned capacity enhancement would bring the production to 75,000 vehicles a year.<br /><br />“Pakistan’s auto industry future looks very promising,” IMC Chief Executive Officer Ali Asghar Jamali told media at its third auto workshop.<br /><br />“I am hopeful that Pakistan will be producing 500,000 cars per year by 2022,” Jamali said.<br /><br />The demand for local as well as used cars has exponentially been growing for the last three years due to overall improvement in the macroeconomic activities.<br /><br />Despite being a world’s biggest densely-populated country, Pakistan has, however, not seen rapid motorisation. The country has only 16 cars per 1,000 people. By 2020 the ratio is likely to reach 20 cars per 1,000.<br /><br />Industry experts are expecting a fast growth in car sales due to growing and young middle-class in the country.<br /><br />The experts said the country is the third largest growing economy in emerging market and it could benefit from the ongoing $57 billion worth of China-Pak Economic Corridor (CPEC) projects.<br /><br />IMC recorded five percent drop in sales during the July-February period of 2016/17, but in light commercial vehicle -- vans and jeeps – sales of Toyota Fortuner increased to 568 during the period from 368 units in the corresponding period.<br /><br />Analyst Sohaib Subzwari at Taurus Securities Limited attributed the fall in sales to “strong demand for Honda Civic and operational issues restricting production.”<br /><br />Subzwari, however, said the growing construction and road network development activities on account of CPEC would contribute to growth in volumes of heavy and light commercial vehicles.<br /><br />In July-February, IMC emerged as the second leading player by number of sold vehicles. Pak Suzuki was the first, while Honda was the third. <br /><br />The government recently announced auto policy 2016-21 containing a number of incentives for Greenfield and Brownfield projects in the country’s Japanese-dominated auto market.<br /><br />IMC started its operation as a joint venture of House of Habib of Pakistan, Toyota Motor Corporation and Toyota Tsusho Corporation of Japan in 1989.<br /><br />Analysts said auto industry generally feels comfortable about the new auto policy, which they say has provided a solid road map to the investors to plan investment for a long period.<br /><br />On premium (own money) and black marketing, Jamali said the government should impose Rs100,000 as a levy per car if the first owner sells it within six months of the purchase. “This will eliminate the middleman and investors who create artificial shortage of cars in the market,” he added.<br /><br />Car manufacturers said import of used cars poses the biggest threat to the local industry’s survival.<br /><br />“We purchase local parts of Rs150 million on every working day, which becomes Rs40 billion per year,” said IMC executive.<br /><br />Pakistan imports more than 46,500 used cars in a year, around 15 percent of the total car sales of 283,000 units in 2016.<br /><br />Aamir Allawalla, ex-chairman of Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) said import of five-year old used vehicles dented the industry as it led to shutdown of several plants.<br /><br />“New variants to be introduced by local players in the next years would, however, give a tough competition to the imported cars,” Allawalla said. <br /><br />He said local industry wants long-term auto policies to get return on their investment and in order to avert ‘sudden shocks’. A huge investment in the sector has been planned, he added.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-41079937176338842002017-03-02T08:44:14.098-08:002017-03-02T08:44:14.098-08:00#Pakistan #Auto Show 2017: Auto part manufacturers...#Pakistan #Auto Show 2017: Auto part manufacturers gear up for biggest ever exhibition in #Karachi<br /><br />https://tribune.com.pk/story/1343197/pakistan-auto-show-2017-auto-part-manufacturers-gear-exhibition/<br /><br /><br />Pakistan’s auto part manufacturers are bullish on future growth of the industry due to growing sales of locally-assembled vehicles and planned investments of new companies.<br /><br />“A record number of foreign exhibitors are going to participate in the Pakistan Auto Show (PAPS) 2017,” Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Mashood Ali Khan told reporters at a local hotel on Wednesday.<br /><br />Pakistan, Thailand: PAAPAM expresses concern over inclusion of auto sector in FTA<br /><br />Paapam officials expect over 65 international exhibitors in PAPS 2017, being held from March 3-5 at the Expo Centre, Karachi. Relative improvement in security, macroeconomic stability and the announcement of the new auto policy in 2016 has created an ideal condition for global car manufacturers to invest in Pakistan.<br /><br />Current conditions are particularly beneficial for the local auto part making industry, which is expected to provide auto parts to new automobile entrants that need their partnership to produce economical cars in Pakistan.<br /><br />“New auto players like Kia and Hyundai are setting up their plants in Pakistan and this is a huge opportunity for us,” former Paapam Chairman Aamir Allawala commented.<br /><br />“Last year, only six international exhibitors participated in the event, but this time the response is overwhelming. We are pleased to entertain a large complement of dignitaries from across the globe,” added Khan.<br /><br />This time a total of 85 local exhibitors, 17 sponsors, six universities and 17 support organisations are going to take part in the show. This comes to a total of 192 exhibitors this year, as against 104 last year. In PAPS 2013, a total 15,000 visitors and 100 exhibitors were part of the show while in 2014 the number of visitors was 25,000 and there were 150 exhibitors. In 2015, the visitors increased to 30,000 and exhibitors were 200.<br /><br />Government officials, local and international buyers and manufacturers, machinery manufacturers, raw material providers and service providers are expected to visit the show.<br /><br />International visitors from Afghanistan, Bangladesh, China, Japan, the Netherlands, Sri Lanka, the UAE, the UK and African countries have attended the past events, but this year visitors from other countries as well are expected in this show, Paapam Senior Vice Chairman Saeed Iqbal Ahmed Khan said.<br /><br />“We would like to strengthen our international relationships, which have been developed after years of hard work. Export orientation will be the key to introducing new and upgraded technology,” he said.<br /><br />Paapam Vice Chairman Syed Mansoor Abbas commented that an additional important objective is to strengthen relationships with OEMs and strive to increase localisation content.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-32372259771942437532017-02-28T09:00:22.029-08:002017-02-28T09:00:22.029-08:00#Automobile companies eye production in #Pakistan ...#Automobile companies eye production in #Pakistan as local market accelerates. #manufacturing #economy https://www.ft.com/content/328ca8ae-f34a-11e6-8758-6876151821a6 <br /><br />When Naeem Khan went into his local automobile dealer in Karachi to replace his five-year-old taxi with a rickshaw, he was not expecting to leave with a brand new air-conditioned car instead.<br /><br />But after getting a financing package that was cheaper than he expected, Mr Khan became one of an increasing number of Pakistanis who have recently bought vehicles they previously only dreamt of owning.<br /><br />The national surge in sales has prompted three global carmakers to commit in the past few months to starting production in Pakistan, potentially doubling the number of foreign carmakers in the country.<br /><br />“The dealer told me it was the right time to get a loan to buy a car,” says Mr Khan. “Five years ago he said he would have told me to buy a second-hand car or a rickshaw, but today I could afford to buy a new car.”<br /><br />Pakistan’s car market is still small, and dominated by the three Japanese brands that have local manufacturing plants: Toyota, Honda and Suzuki. The trio made all but seven of the country’s domestically manufactured cars in 2015-16, according to the Pakistan Automotive Manufacturers’ Association, though the figures are just a fraction of their total global car sales.<br /><br />In the past, analysts say, manufacturers have been put off by the country’s relative poverty, as well as political instability and concerns about security.<br /><br /><br />But in the past few months, France’s Renault and both Hyundai of South Korea and its affiliate Kia have announced they will soon start assemblies in Pakistan, in partnership with local companies. It marks a return for Kia and Hyundai, which left in the previous decade when their local partner suffered financial problems.<br /><br />The new and returning entrants are being drawn in by several factors. <br /><br />The first is both the scale of the potential market in a country of 200m people, as well as the rate at which it is already growing. In 2012-13, carmakers sold 118,830 cars in Pakistan. By 2015-16, that had risen 52 per cent to 181,145.<br /><br />Analysts say the surge has left Toyota, Honda and Suzuki struggling to meet demand with their customers sometimes forced to wait as long as five months before their cars are delivered.<br /><br />Yong Sohn, general manager at the Hyundai group, says: “Population and growth-wise, Pakistan is very promising.”<br /><br />Renault declined to talk about its plans while it is in negotiation with local partners.<br /><br />Part of the reason for the rise in car sales is that Pakistanis are getting richer. Between 2010 and 2015, the amount each person earned per year rose from $4,370 to $5,320 as measured in gross national income per capita at purchasing power parity.<br /><br /><br />------<br /><br /><br />That trend is expected to continue, partly helped by China’s plans to invest more than $52bn in Pakistan’s infrastructure under the “One Belt, One Road” project. Hyundai forecasts that, consequently, car sales in Pakistan will hit 300,000 a year by 2020.<br /><br />Just as importantly, say analysts, has been the corresponding fall in interest rates. Since September 2000, the rate at which banks can borrow from the Pakistan central bank has fallen from 13 per cent to 6.25 per cent.<br /><br />Saleem Memon, who sells finance packages for carsin central Karachi, says: “A few years ago, customers sometimes paid 16 or 17 per cent in annual interest rates. Now, if they are lucky, they can get a good deal for around 11 per cent.”<br /><br />Another factor drawing carmakers to Pakistan is that security has begun to improve thanks to a two-year campaign by the army. Mr Khan remembers days when he and other taxi driverswere routinely stopped at gunpoint by armed extortionists. “The streets are now safe and people feel comfortable driving till late at night,” he says.<br /><br />Third, the government has drawn up policies aimed at attracting carmakers, such as cutting the duties applicable to parts shipped from abroad and making it easier to find a site to build a plant.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-30952938173615311352016-12-16T21:56:50.313-08:002016-12-16T21:56:50.313-08:00#Pakistan #Suzuki to invest $460 million to set up...#Pakistan #Suzuki to invest $460 million to set up 2nd #automobile manufacturing plant http://www.pakistantoday.com.pk/blog/2016/12/15/pak-suzuki-motors-plans-to-invest-460m-on-second-plant/ …<br />After the announcement by the Korean and French auto giants to invest in Pakistan’s auto sector, the major incumbent Japanese player Pak Suzuki Motors has unveiled a plan to invest $460 million to set up a second assembly plant in the country.<br /><br />Pak Suzuki Motors Managing Director Hirofumi Nagao called on the Finance Minister Ishaq Dar on Thursday and discussed his company’s plan of future investment in Pakistan.<br /><br />The MD said that his company was ready to invest $460 million in Pakistan to set up a second plant. After completion of formalities, the new project would be completed within a period of two years and may start production by the end of 2018, he informed.<br /><br />The minister asked the Pak Suzuki Motors MD to submit a complete plan with all the details to process the request in accordance with prescribed codal formalities and procedures. He said the government was committed to providing a level playing field to all the prospective investors.<br /><br />The government has implemented a new auto policy from this fiscal year that provided tax incentives up to three years for the new players in the sector. The incentives were not offered to the existing three Japanese players. However they were provided incentives for modernization and expansion.<br /><br />Japanese auto giants are demanding the similar policy incentives for making new investment in the country. The government may provide similar incentives to Japanese auto makers if they make investment in setting up new plants, an informed source said.<br /><br />A week back a big Pakistani conglomerate announced that they planned to assemble autos in the country with the help of Korean auto giant Kia Motors. While a delegation of French company Renault formally informed the Finance minister in Paris that they planned to set up an auto manufacturing plant in Pakistan.<br /><br />The minister said Pakistan has been projected by JETRO as the second best place for investment in the world. He said that the turnaround of Pakistan’s economy, macroeconomic stability, improvement of energy and security situation in the country has provided a conducive atmosphere to foreign direct investment.<br /><br />He said that a number of new entrants have shown keen interest to invest in automobile manufacturing sector as well. The meeting was attended by senior officials of the Ministry of Finance and the members of the delegation of Pak-Suzuki.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-60811639271172620112016-07-20T22:12:30.801-07:002016-07-20T22:12:30.801-07:00A significant rise in infrastructure projects in t...A significant rise in infrastructure projects in the wake of China-Pakistan Economic Corridor (CPEC) is also expected to accelerate demand for iron, steel and cement.<br />“Imports of both steel scrap and steel products increased by 27.3 per cent and 30.1 per cent, respectively, during July-March FY16,” said the SBP report.<br />“The imports posted extraordinary growth despite imposition of anti-dumping duties for four months on import of cold-rolled coils and sheets from China and Ukraine,” said the report.<br /><br />http://www.hellenicshippingnews.com/chinese-imports-capture-steel-market/<br /><br /><br />The country produces six million metric tons of steel per year, as per a report published by the State Bank of Pakistan (SBP).<br /><br />This includes raw products, iron ore and scrap flat products, sheets and plates used in the automotive sector, and long products (steel bars, wire rods, rails, and structures used in infrastructure development, and tubes and pipes).<br /><br />However, per capita steel consumption in Pakistan is very low at 23.5 kilograms against 58.6 kilograms in India, as well as the Asian average of 261.3 kilograms and the global average of 216.9 kilograms, the report added.<br /><br />https://www.thenews.com.pk/print/112676-Pakistan-produces-6MT-of-steel-annuallyRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-23582707713860773402016-05-07T13:11:20.391-07:002016-05-07T13:11:20.391-07:00#Pakistan woos Renault-Nissan in push for #automob...#Pakistan woos Renault-Nissan in push for #automobile #investments http://reut.rs/1XbdcQR via @Reuters<br /><br />With the economy growing at its fastest pace in eight years, the local currency stable against the dollar and interest rates at their lowest in 42 years, Pakistani officials believe the country is once again on the radar of investors seeking to tap into a market of nearly 200 million people.<br /><br />Officials are touting a new auto policy, skewed in favor of new entrants, that includes offering foreign car manufacturers lower duties as an incentive to set up plants in Pakistan or revive shuttered ones.<br /><br />"We expect that there will be one or two foreign investors coming into Pakistan," said Miftah Ismail, chairman of Pakistan's Board of Investment, who has been talking to car makers about setting up assembly plants for the local market.<br /><br />Ismail told Reuters he had held talks with Japan's Nissan (7201.T) and alliance partner Renault (RENA.PA) for "some time", and last month met Fiat (FCHA.MI) executives in Italy for the first time.<br /><br />Previous discussions also involved Germany's Volkswagen.<br /><br />"I hope some people will bite," he said.<br /><br />A source close to Renault said Pakistan was under consideration for new production investment, along with other potential locations, but added that discussions were at a very early stage. In an e-mailed statement, the company said it had "no news to announce at this time".<br /><br />Nissan chief spokesman Jonathan Adashek said: "Pakistan is certainly a market of interest for us at present", but added no final decision had been made.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-52612182873425566212016-03-12T08:46:28.016-08:002016-03-12T08:46:28.016-08:00#Honda to double production capacity at #motorcycl...#Honda to double production capacity at #motorcycle plant in #Pakistan to 1.35 million units | ET Auto http://auto.economictimes.indiatimes.com/news/two-wheelers/motorcycles/honda-to-double-production-capacity-at-motorcycle-plant-in-pakistan/49641931 …<br /><br />Two wheeler manufacturer Honda has announced plans to double the production capacity of its existing motorcycle plant at Sheikhupura in Pakistan, the company informed in a statement.<br /><br />From current 6,00,000 units, the company will increase the capacity to 1.2 million units during the next three years to accommodate the expected expansion of the motorcycle market in Pakistan.<br /><br />Honda is also planning to invest approximately $ 50 million in this three-year capacity expansion, which also will add approximately 1,800 new associates.<br /><br />After this expansion, Honda's overall annual production capacity will be increased to 1.35 million units.<br /><br />For this capacity expansion, Honda will first add another production line to the Sheikhupura Plant with the plan to begin production on this new line in October 2016. It then will further expand the overall capacity in stages.<br /><br />Honda is currently producing motorcycles at two plants - the Karachi plant in the southern part of the country and the Sheikhupura plant in the northeastern part of the country, with annual production capacity of 1,50,000 units and 6,00,000 units, respectively.<br /><br />The Sheikhupura plant manufactures Honda CD70, CD Dream, Pridor, CG125, CG Dream and Deluxe.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-82477932412084491582016-03-12T08:17:36.491-08:002016-03-12T08:17:36.491-08:00#Motorcycle production in #Pakistan reaches nearly...#Motorcycle production in #Pakistan reaches nearly 2m per annum. #Manufacturing http://www.dailytimes.com.pk/business/12-Mar-2016/motorcycle-production-in-pakistan-reaches-nearly-2m-per-annum …<br /><br />Lack of adequate transportation infrastructure, higher inflation and poor economy made the low-powered vehicles apex priority of Pakistanis as two-wheeler production increased by 10% to 19, 12,944 units in 2015.<br /><br />"Lower oil prices and improved business environment has provided a much needed boost to motorcycle industry in the outgoing year as production went up significantly due to rising demand," said Association of Pakistan Motorcycle Assemblers (APMA) Chairman Mohammad Sabir Shaikh.<br /><br />He said that the government has to end the cartelisation of Japanese car and motorcycle assemblers in order to flourish the local industry otherwise the industry would remain on sluggish trajectory in coming decades as well.<br /><br />He urged the government to abolish imports regime and duty structure for various motorcycles parts, as the duty on imported parts should be the same at 25 % custom duty instead of existing five different structures.<br /><br />Shaikh said the industry has enough capability to cater to the rising demand of two-wheelers by producing more than 4 million motorcycles per year. However, he added that the government's apathetic attitude towards this dynamic sector has put the industry on a slow track, which has restricted production to only 2 million per annum.<br /><br />"About half of the parts of motorcycles are being made in Pakistan and half of them are imported from different countries while the local industry is capable to make full production if the government patronises the sector," Sheikh said, adding that the domestic motorcycle industry now completely dominates the local market and not even a single motorcycle has been imported since 2007-08.<br /><br />Detailed assessment of Pakistan Bureau of Statistics (PBS) latest data reveals that the motorcycle production including locally made Japanese brand and Chinese made imported motorcycles' brand stood at 1,912,944 units in the 2015, registering 10% growth over the same period of last year to 1,743,039 units. In December 2015, total 156,415 motorcycles were produced in the country, registering 17% growth over the production of 134,230 motorcycles in December 2014.<br /><br />Recently, Atlas Honda Limited has announced an investment of $100 million in the expansion of its motorcycle operations in Pakistan. The first motorcycle produced from the new line will arrive in the market by the beginning of October 2016. The expansion will lead to the generation of 1,800 direct jobs and 5,000 jobs at associated companies and parts manufacturers.<br /><br />Shaikh told Daily Times that around 4 million of motorcycles are sold illegally in Pakistan due to which the national kitty is being deprived of huge revenue in terms of taxation. "Due to this lack of concern by law enforcement agencies, the national kitty is continuously missing huge revenue in terms of taxes and duties as many local motorcycles assemblers do not show sale of unregistered motorcycles in tax documents," he added.<br /><br />The motorcycle production in the country is being run by about 100 motorcycle assemblers, including one dozen cottage manufactures, which produce less than 1,000 units.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-2720035453610764782016-02-27T22:16:17.140-08:002016-02-27T22:16:17.140-08:00#Pakistan steel industry booming with production o...#Pakistan steel industry booming with production of 4 million tons to meet rising demand last year <br /><br />http://tribune.com.pk/story/1053741/local-economy-cpec-to-help-steel-industry/ …<br /><br /><br />The start of mega development schemes and power projects under the China-Pakistan Economic Corridor (CPEC) will boost the annual demand for steel products by more than 30% to 6 million tons from 4 million tons, said an industry representative.<br /><br />Pakistan Steel Re-Rolling Mills Association (PSRMA) Vice Chairman Akhtar Saeed said that 475 steel making units (large and small size) were operating in the country and their annual production was around 4 million tons. The large units’ production share was around 1.2 million tons.<br /><br />Saeed said that more incentives were needed to attract new investment to the steel industry in the country. “The government should come up with a new comprehensive and targeted policy for the important sector of steel and they should have a detailed consultation with PSRMA.<br /><br />“As a result of the increasing demand, new steel units would be set up. Thus, more job opportunities would be created and the government would get more taxes.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-51003243903482126002016-02-27T22:14:55.699-08:002016-02-27T22:14:55.699-08:00#Pakistan automobile industry booming with sales u...#Pakistan automobile industry booming with sales up 31% year over year - http://www.khaleejtimes.com/business/auto/pakistan-auto-industry-rides-a-high …<br /><br />Pakistan's auto industry is enjoying a boom. All leading brands such as Suzuki, Toyota and Honda have reported high profits.<br /><br />The biggest car producer - Suzuki - shot down the industry's production record growth of 31 per cent by upping its own output by 54 per cent in 2015. Suzuki maintained its leadership among the country's Big 3.<br /><br />The sale of cars manufactured and assembled in Pakistan climbed to 179,953 units in 2015 from 136,888 units in 2014, the Ministry of Industries said.<br /><br />What is pushing this car buying and production spree? The yen stays weak against the greenback, helping car assemblers to buy imported spare parts for cheap prices. Imported spares account for around 75 per cent of the equipment which goes into assembling cars. Commercial banks' interest rates are now the lowest in 42 years, making car financing cheapest in decade.<br /><br />New car models are attracting buyers as Pakistanis enjoy a higher purchasing power. "The latest growth in the automobile sector confirms a rising per capita income in Pakistan, improved economics of the auto sector and overall recovery of the economy," said Tahir Saeed, a financial market researcher.<br /><br />There is big scope of more investment inflows to expand production capacity as competition among car manufacturers increases.<br /><br />Auto is perhaps the only industry which is doing well at a time when others - ranging from textiles to farm products - are hit hard by stagnating exports. Reduced foreign demand, difficulties related to the international oil price crash and energy shortages are key factors hitting other industries.<br /><br />"The auto industry must now focus on enlarging output of its cars and export more units to countries in its neighbourhood. It should also tap new markets in Central Asia," Minister for Commerce Khurrm Dastgir said.<br /><br />Suzuki has unveiled its operational and financial results for 2015. The company is jointly owned by Pakistan Automobile Corporation (Paco) and Suzuki Motor Corporation of Japan (SMC). SMC owns 73 per cent of the joint venture.<br /><br />Paco said: "In January to September 2015, Suzuki tripled its pre-tax profit to Rs6.33 billion as compared to Rs2.18 billion in the like period of the previous year."<br /><br />Toyota cars assembled by Indus Motors is moving up the ladder fast. Its report said: "Toyota sold 57,000 car in 2015 - a record in the company's history. We have exceeded production capacity which is usually 54,800 units a year."Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-65922421486845368162016-01-11T08:56:34.222-08:002016-01-11T08:56:34.222-08:00Although such disruption has yet to come to Pakist...Although such disruption has yet to come to Pakistan’s auto industry, plenty of auto related services such as classifieds, car brokerage, dealerships and sales are quickly moving online to websites such as Apni Gari, Carmudi, OLX, PakWheels, Sasti Gari and countless others.<br /><br />Smartphones with internet connectivity are deployed to solve some of the inherent problems related to the conventional auto trade. For example, buying a used car from a dealer meant several visits to find the right car or sifting through hundreds of newspaper classifieds, with limited information and no pictures. With online portals, people can sift through tens of thousands of cars listed for sale across Pakistan, look at pictures and then decide which ones they want to investigate further.<br /><br />Similarly, sellers faced challenges with the traditional system because they either had to leave their car at the dealer’s for a long period of time or sell it to the dealer instantly at a price lower than the market value. With online services, they can now list their cars and wait until they find a buyer willing to offer the right price.<br /><br />Plenty of auto related services such as classifieds, car brokerage, dealerships and sales are quickly moving online to websites such as Apni Gari, Carmudi, OLX, PakWheels, Sasti Gari and countless others.<br />According to World Bank data, there are three million cars on the road in Pakistan today. This number is increasing rapidly as more than 170,000 new cars are sold every year and about 35,000 to 40,000 cars are imported every year as well. Yet these numbers pale in comparison to other developing countries, given that the car ownership per capita in Pakistan is very low.<br /><br />There is already a trade of about 750,000 used cars taking place every year in Pakistan and more than 50% of this used car inventory has already come online through auto buying/selling portals. Given that trade is moving online, used car dealerships have realised the power of the internet and according to the All Pakistan Motor Dealers Association (APDMA), 4,500 dealerships in Pakistan are putting all of their inventory online on auto sites and other mediums like their own websites, social media, etc.<br /><br />Not only has the car trade moved online, so has the research part, whereby people decide what to buy. Rather than relying on an auto expert, a relative or a friend, anyone can go online, find out the pros and cons of the different makes and decide what to buy. In a study conducted by Nielsen, Pakistanis spend about three weeks deciding on what their next car will be and the majority of this time is spent online thanks to the abundance of information.<br /><br />Services such as car financing and maintenance have also moved online. With over 10 banks offering car financing, the internet is an excellent means for people to compare rates and terms and conditions. In terms of maintenance, services such as AutoGenie allow people to book an appointment with an experienced mechanic who will come to their home and make the necessary repairs. Similarly, Insta Lube, a service launched by Total this April, enables people to call a helpline to have their automobile’s oil changed at their home.<br /><br />While all the above feels like disruption in the traditional way of doing things, in my view we are only just getting started in Pakistan and all the businesses that are disrupting today will be disrupted in turn unless they innovate. In more mature markets like the US, used car sales are even more disrupted and are almost like buying diapers on Amazon.<br /><br />---<br /><br />So imagine being driven around in driverless cars owned by Uber! Disrupt or be disrupted!<br /><br />http://aurora.dawn.com/news/1141310Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-69854853175036301282016-01-10T21:50:29.017-08:002016-01-10T21:50:29.017-08:00Volkswagen's #China Partner Plans to Build VW ...Volkswagen's #China Partner Plans to Build VW V2 Hatchback Cars in #Pakistan in 2016 http://bloom.bg/1kYVe3Z via @business<br /><br />China FAW Group Corp., a Chinese partner of Volkswagen AG, plans to start assembling cars in Pakistan to tap growing demand as measures to curb terrorism boost growth in the South Asian economy.<br /><br />The company seeks to sell 10,000 vehicles, including vans, cars and pickups, in 2018 after it begins local assembly of the V2 hatchback at the end of this year, Hilal Khan Afridi, chief executive officer of Al-Haj FAW Motors Pvt., said in an interview in Karachi. Al-Haj FAW is the Chinese group’s local venture and began selling imported V2’s in January last year.<br />FAW will be the first carmaker in a decade to start assembling in Pakistan, where the economy is set to grow at the fastest pace since 2008 as Prime Minister Nawaz Sharif’s government tackles power shortages and terrorism. China’s President Xi Jinping has also pledged to invest $45 billion in the country, boosting the outlook for expansion.<br />“Initially we had a lot of difficulty to convince them to help us with technical expertise,” said Afridi. “Now that the Chinese market has slowed down they have increased their interest in international markets. It’s a good sign for us.”<br /><br />Chinese spending on infrastructure may help Karachi-based Ghandhara Nissan Ltd. double sales of Chinese Dongfeng trucks. Al-Haj FAW sold about 3,400 vans and pickups along with 535 locally assembled trucks last year. The company plans to invest 1 billion rupees ($9.5 million) to assemble cars in Pakistan.<br /><br />“Things are looking up for the auto industry,” says Ahmed Hanif Lakhani, analyst at Karachi-based Arif Habib Ltd. “The economy is growing and consumer demand is rising with low interest rates making leasing more feasible.”<br />Pakistan’s economy is estimated to expand 5.5 percent in the year to June, according to the Ministry of Finance. Car sales in the nation increased 52 percent to 15,724 units in November from a year earlier, according to the Pakistan Automotive Manufacturers Association.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-64069981849288730142015-10-18T15:35:27.978-07:002015-10-18T15:35:27.978-07:00
Local car sales jump 72% in Pakistan
KARACHI: L...<br />Local car sales jump 72% in Pakistan<br /><br /><br />KARACHI: Local car sales (including light commercial vehicles, jeeps and vans) jumped to 54,812 units in the first three months (Jul-Sep) of fiscal year 2016, up 72% compared to 31,899 units in the same period of last year, according to data released by the Pakistan Automotive Manufacturers Association (PAMA).<br /><br />It is important to note that in September 2015, despite fewer working days due to Eidul Azha, local car sales rose 45% year-on-year (YoY) to 18,424 units. They, however, declined by 10% month-on-month (MoM).<br /><br />The overall healthy growth in the auto sector is indicative of an increase in per capita income, lower interest rates and overall recovery of the economy. Car financing is also picking up gradually (currently estimated at 30% versus 5% a few years ago).<br /><br /><br />To recall, car sales (excluding imported ones) in Pakistan grew at a five-year (FY11-15) compound annual growth rate (CAGR) of 5.3% to 179,953 units. While volumes surged by 31% in fiscal year 2015 (FY15) on the back of the new model of Toyota Corolla, Punjab taxi scheme and an increase in car financing due to 42-year low interest rates in the country also helped.<br /><br />“We forecast local car sales to grow at 13% in FY16 to reach 203,653 units,” Topline Securities reported on Monday.<br /><br />Amongst individual companies, Pak Suzuki sales increased by 98% YoY to 33,770 units in 1QFY16 primarily due to the taxi scheme. Volumes declined by 12% MoM.<br /><br />Indus Motor sold 14,767 units in 1QFY16 compared to 9,862 units in the same quarter last year. In the month of September, Indus Motor’s sales stood at 4,984 units which rose by 6% year on year. On a MoM basis, however, following the trend in Pak Suzuki, Indus sales also decreased by 10%.<br /><br />Honda Cars sold 6,184 units in 1QFY16 compared to 4,887 units in the same period last year. In September, Honda Cars sold 2,001 units, up by 14% YoY, while remained flat on a MoM basis.<br /><br /><br />http://tribune.com.pk/story/971872/local-car-sales-jump-72/Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-27018622668330219872015-09-19T22:15:36.211-07:002015-09-19T22:15:36.211-07:00#Pakistan Auto industry shows robust growth despit...#Pakistan Auto industry shows robust growth despite chronic energy, tax, labor woes - Nikkei Asian Review http://s.nikkei.com/1LgFPH0 <br /><br />KARACHI, Pakistan -- This country's auto industry has seen sharp increases in production and sales lately, following a long period of doldrums since their previous peak in 2007. This shows that the sector is well ahead of other industries in taking advantage of the country's burgeoning economic recovery. But Japanese automakers operating here continue to face tough challenges, including chronically unstable power and gas supplies, a shortage of skilled workers, and the negative impact of the tax system on their sales.<br /><br />In April, Japanese motorcycle manufacturer Yamaha Motor resumed assembling motorcycles in Pakistan for the first time in seven years at its new factory in the Bin Qasim industrial park in the outskirts of Karachi, Pakistan's commercial hub. The new assembly line is turning out Yamaha's new YBR125 sport bike, equipped with higher-end features, such as an electric starter and cast wheels. The YBR125, a top-of-the-line model from Yamaha, costs approximately 129,000 rupees ($1,238), roughly double the average price for the 70cc models that are the most popular in Pakistan. The company expects the model's first year shipments to reach 30,000 units. Yasushi Ito, managing director of Yamaha Motor Pakistan, said the company aims to produce up to 400,000 units annually by 2020.<br /><br />Hirofumi Nagao, managing director of Pak Suzuki Motor, a Pakistani subsidiary of Japanese automaker Suzuki Motor -- which holds a 54% share of the domestic automobile market -- said: "The Pakistani rupee is holding steady, inflation has calmed down and auto loan rates have dropped to 11% per annum after climbing to around 20%. If loan rates fall below 10%, it will help boost sales significantly." <br /><br />Output at Pak Suzuki is likely to surpass 130,000 units and reach an all-time high this year, thanks in part to "special demand" from the Punjab state government, which has ordered from Pak Suzuki 50,000 cabs under its taxi scheme to boost employment in the province.<br /><br />Indus Motor, a joint venture between the Habib group, one of the leading business groups in Pakistan, and Toyota Motor, registered sales of over 57,000 units in fiscal 2014, up 70% from the previous year, thanks to brisk sales of a new Corolla model.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-12062575907125813162015-08-20T07:41:10.509-07:002015-08-20T07:41:10.509-07:00#Pakistan's monthly auto sales up 129pc to 15,...#Pakistan's monthly auto sales up 129pc to 15,909 in units in July 2015 https://shar.es/1tTkru via @sharethis<br /><br />Pakistan local car assemblers have started the new fiscal year with a positive growth of around 129 percent year on year (YoY), according to the data released by Pakistan Automotive Manufacturers Association (PAMA).<br /> <br />During July 2015, the local vehicle sales including LCVs, Vans and Jeeps stood at 15,909 units. It is important to note that in July 2014, sales dropped abnormally due to increase in advance motor vehicle tax and imposition of advance income tax on transfer of motor vehicles in Federal Budget FY15, said Muhammad Tahir Saeed, an analyst at Topline Research.<br /> <br />“Furthermore, anticipated new ‘Corolla’ model and less working hours due to Ramadan were other factors contributing to the historical low sales in last July,” he added.<br /> <br />Overall healthy growth in auto sector is indicative of increase in per capita income, improved farmer economics and overall recovery of the economy. Car financing is also picking up gradually, currently estimated at 30 percent versus 5.0 percent few years ago. To recall, car sales in Pakistan grew at a 5-year (FY11-15) CAGR of 5.3 percent to 179,953 units while volumes surged by 31 percent in FY15 on the back of a new model of Toyota Corolla, Taxi Scheme of Punjab government and an increase in car financing due to 42-year low interest rates in the country.<br /> <br />“We forecast car sales to grow at 13 percent in FY16 to reach at 203,653 units,” the analyst added.<br /> <br />Among individual companies, Pak Suzuki Motors (PSMC) sales increased by 119 percent YoY to 9,464 units in Jul 2015 primarily due to Punjab government’s Taxi Scheme. Volumes declined by three percent on Month-on-Month (MoM) basis due to extended Eid holidays.<br /> <br />Indus Motors Company (IMC) sold around 4,259 units in Jul 2015 compared to 1,106 units in the same month last year. It is pertinent to note that customers were waiting for the new model of Toyota Corolla in the same month last year which was the main reason for such an abnormally low base. On MoM basis, INDU sales decreased by 22 percent from 5,458 units it sold in Jun 2015.<br /> <br />Saeed attributed this decline to less working hours during Ramadan and extended Eid holidays. Just to highlight, Toyota’s new Corolla model is sold out for next 3-4 months, according to the sources in the industry.<br /> <br />HCAR sold 2,181 units in Jul 2015 compared to 1,505 units in the same month last year. On MoM basis, HCAR sales decreased by 12 percent in Jul 2015 from 2,488 units in Jun 2015.<br /> <br />It is important to note that HCAR is consistently posting sales growth despite the new model of Toyota Corolla launched by its competitor Indus Motors. This indicates that overall market size of Pakistan automobile sector is growing.<br /> <br />Millat Tractors (MTL) and Al Ghazi (AGTL) sales have been affected due to the floods.<br /> <br />MTL sold 743 units in July 2015 compared to 1,703 units in the same month last year. On Month-on-Month basis, MTL sales decreased by 71 percent in July 2015 from 2,556 units in June 2015.<br /> <br />AGTL sold 820 units in Jul 2015 compared to 1,056 units in the same month last year. On Month-on-Month basis, AGTL sales decreased by 40 percent in Jul 2015 from 1,375 units in Jun 2015.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-39403080174560408482015-08-01T22:02:07.185-07:002015-08-01T22:02:07.185-07:00#Pakistan's #Japan-dominated car market poised...#Pakistan's #Japan-dominated car market poised 4 new entrants from #Europe, #Korea. #Automobiles -The Economic Times http://economictimes.indiatimes.com/news/international/world-news/pakistans-japanese-dominated-car-market-poised-for-new-entrants/articleshow/48314521.cms …<br /><br />Pakistan's car market has been dominated by Japanese automakers for decades, but a mini-economic revival looks set to attract new players from Europe and Korea into the mix. <br /><br />Despite heavy taxation on imported vehicles, enthusiasm for owning a car in Pakistan has remained undented -- thanks in part to underdeveloped public transport in the country's sprawling cities, but also the social status it brings. <br /><br />Toyota, Suzuki and Honda car assembly plants already work around the clock in Karachi to satisfy demand but still customers have to wait for about 4 months to get delivery <br /><br />Read more at:<br />http://economictimes.indiatimes.com/articleshow/48314521.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppstRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-71573571042939421622015-06-21T22:45:14.740-07:002015-06-21T22:45:14.740-07:00Car sales in Pakistan to achieve highest growth in...Car sales in Pakistan to achieve highest growth in three years<br />* Report reveals that auto e-commerce has grown at a staggering rate and 80% of new car and almost 100% of used car customers begin their car shopping online<br />The car sales in Pakistan that has witnessed 24% improvement during first three quarters of current fiscal year, are expected to reach the highest rate in next three years.<br /><br />Auto sales in 2015 are expected to hit 165,000 units, nearly reaching the amount sold in 2012.<br /><br />A report on ‘Booming Automotive Industry in Emerging Markets’ released by Carmudi has provided a detailed look into state of global automotive sales and how car purchasing behaviours have changed due to drastic increase in internet and mobile penetration, rising GDP and the emergence middle class.<br /><br />The findings in this report are results of quantitative surveys conducted online with both car buyers and car dealers, and in-depth interviews with industry influencers throughout Pakistan.<br /><br />The study found that over 58% of car dealers in Pakistan reported an increase in car sales over past twelve months while 41.7% reported a decrease.<br /><br />According to the Pakistan Automotive Manufacturer’s Association, local auto sales including light commercial vehicles, grew by 72% as compared to same month last year. One reason for the boom is the reduction in interest rates over the course of the year. Car financing still stands at less than 35% of the total car sales in Pakistan.<br /><br />With regard to shift to online, the report said car dealers are beginning transition to digital space to reach potential buyers as 25% of dealers reported using websites to reach buyers and 16.7% are actively using facebook.<br /><br />Car dealers have not started using Twitter or Instagram to reach potential consumers.<br /><br />Although the shift towards online is apparent, car dealers in Pakistan still have relatively high level of offline advertising, with 41.7% of car dealers are still comfortable, focusing their listings on newspapers.<br /><br />In his comments, All Pakistan Motor Dealers Association (APMDA) Chairman H M Shahzad on Wednesday said if provided a level playing field for all stakeholders, the auto industry could contribute substantially in achieving GDP growth targets. The used car import alone can generate Rs 60 to Rs 70 billion in revenue while providing healthy competition and choice of multiple makes and models at affordable prices to the consumers.<br /><br />The report further revealed that globally, auto E-commerce has grown at such a staggering rate that now as many as 80% of new car customers and almost 100% of used car customers begin their car shopping experience online.<br /><br />With Internet and mobile penetration significantly growing in emerging markets, the rate of moving the car shopping experience online is beginning to mirror that of the western markets.<br /><br />In Pakistan, where economic growth is at a seven-year high, close to 30% of car buyers report using the Internet to conduct research on a car before making a purchase.<br /><br />Speaking about growth of Pakistan’s automotive industry, Carmudi Pakistan Managing Director Raja Murad Khan said the growth in Pakistan’s automotive industry, the increase in purchase intent and shift of buyers from traditional to online marketplace are all positive indicators and success in Pakistan. Carmudi is one of the leading online vehicle platforms in Pakistan offering private customers, car dealers and other partners a car-trading platform that helps them sell and find cars, motorcycles or commercial vehicles in an easy and effective manner. <br /><br /><br />http://www.dailytimes.com.pk/national/11-Jun-2015/car-sales-in-pakistan-to-achieve-highest-growth-in-three-yearsRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-65255568450253374132015-05-04T07:24:57.884-07:002015-05-04T07:24:57.884-07:00KARACHI: Car sales are expected to reach their hig...KARACHI: Car sales are expected to reach their highest level in three years by the end of June 2015, analysts have predicted, stressing that the growth is depended on the sustained success of new models.<br /><br />With a 24% improvement during the first nine months (Jul-Mar) of fiscal year 2015 (FY15), sales of new and used vehicles picked up in March and are now expected to reach their highest in three years by the end of the current fiscal year.<br /><br />“Auto sales are expected to grow in double-digits but they are highly dependent on automaker’s new models,” Global Research analyst Asad Raza Nayani told The Express Tribune.<br /><br />“The sales depend on the new make of Toyota Corolla and Punjab government’s Apna Rozgar Scheme,” Nayani added.<br /><br />The growth of automobiles in FY15 is expected to touch 165,000 units, 23% compared to last year, he said. But, that will still be low compared to 175,000 units sold in FY12.<br /><br />Looking at March 2015 sales alone, one can be a little more bullish in the remaining three months (April-June) of FY15.<br /><br />According to latest figures posted by the Pakistan Automotive Manufacturers Association, local auto sales, including light commercial vehicles, shot up by an impressive 72% to 21,147 units compared to 12,269 units during the same month last year.<br /><br />According to Sherman Securities, car sales in March are possibly the highest-ever sales posted by the Pakistan auto industry in a single month.<br /><br />If monthly car sales grow at the same rate as they did in March 2015, which it possibly can, cumulative car sales may touch a six-year high.<br /><br />However, analysts are not yet entirely optimistic as the auto industry is still facing considerable challenges despite many positives including growing margins of auto companies, declining interest rates and double-digit growth in sales.<br /><br />“The interests rates have come down considerably in the last four months, but banks are still cautious when it comes to auto financing which is not helping car sales considering its potential,” Nayani added.<br /><br />Industry officials and analysts estimate that car financing still stands at a mere 30-35% of the total car sales in the country, which is considerably low, compared to other countries.<br /><br />Banks are reluctant when it comes to car financing due to its bad experiences during the last few years when Non-Performing Loans (NPL) ballooned and considerably hurt the financial health of banks.<br /><br />The cumulative sales during the first nine months (Jul-Mar) of FY15 stood at 124,000 units, up 24% compared to 100,000 units in the same period of previous year. However, sales growth drops to 19% if car sales under the Punjab taxi scheme that was launched in February 2015 is excluded.<br /><br />http://tribune.com.pk/story/868357/ongoing-fiscal-year-auto-sales-expected-to-post-3-year-high-analysts-predict/Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-35029023961883587512015-04-27T16:49:23.442-07:002015-04-27T16:49:23.442-07:00“#Pakistan is all set to become one of the top glo...“#Pakistan is all set to become one of the top global markets of #motorcycles" #Yamaha President Hiroyuki Yanagi http://tribune.com.pk/story/876873/investment-yamaha-resumes-assembly-in-pakistan/ … Yamaha Motor Pakistan (Pvt) Ltd, a newly formed company with 100% equity from Yamaha Motor Company, Japan, is expected to produce 30,000 units in year 2015.<br /><br />The factory has been established with an initial investment of Rs5.3 billion and its current production capacity is 40,000 units per year. It has hired 200 employees in the first phase. <br /><br />In its initial phase, the company has introduced the “YBR125” model, a 125cc engine motorcycle, with a network of 140 dealerships in different parts of the country. Equipped with new technology, industry analysts say the initial price of YBR125 (Rs129,400) is competitive enough for its rival models in the market. Pak Suzuki’s GS150 is available in Rs128,500 while Atlas Honda’s CG125 and CG125 Deluxe is available in Rs102,900 and Rs124,000, respectively.<br /><br />Japanese Ambassador to Pakistan Hiroshi Inomata said that the presence of the top leadership of Pakistan in the inauguration ceremony signifies the importance of the investment Yamaha has brought into Pakistan.<br /><br />“We appreciate the efforts of the government of Pakistan in bringing FDI in the country. We believe this is a win-win situation for both Japan and Pakistan,” Inomata added.<br /><br />Board of Investment Chairman Dr Miftah Ismail said the middle class of Pakistan was growing at a rapid pace. From the current level of 70 million, it will touch 100 million by 2025, making Pakistan one of the top six countries with the largest middle class in the world, he added.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-35137274606097915742015-04-25T08:50:21.863-07:002015-04-25T08:50:21.863-07:00Pew Survey: Car, bike or motorcycle? Depends on wh...Pew Survey: Car, bike or motorcycle? Depends on where you live<br /><br />Only 3% of Pakistani households (vs 6% in India) own a car but 43% (vs 47% of Indians) respondents own motorcycles. <br /><br /><br />If you’ve ever witnessed traffic in Ho Chi Minh City, it’s clear that motorcycles and scooters dominate transportation there. While less common than cars and bicycles, these relatively inexpensive two-wheelers are especially popular in South and Southeast Asia. More than eight-in-ten in Thailand, Vietnam, Indonesia and Malaysia own a scooter. And the next tier of motorcycle owners are all in Asia: China at 60%, India at 47% and Pakistan at 43%.<br /><br />http://www.pewresearch.org/fact-tank/2015/04/16/car-bike-or-motorcycle-depends-on-where-you-live/Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.com