Pakistan Automobile Industry

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Foton JW Autoparks assembly plant near raiwind, they're expected to start proper production in May as harvest season brings high demand for such vehicles. Atm initial imported cbu's are being sold in the market

Imported units of Foton Hi roof van and ute, these will be produced locally after testing the market. The van and double cabin ute are priced at 27 lacs

 

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Cooperation ignites promising prospect: FAW& PSO J5P-360 handover ceremony

On April 3rd, 2018, a splendid FAW J5P Key handing-over ceremony was held in Karachi, Pakistan. At the ceremony, the first 10 FAW J5P-360 oil tankers were delivered to Pakistan State Oil (PSO contractors). Another 50 oil tankers would be handed over to PSO contractors in the short future.

The event was attended by dignitaries including Senator Taj Afridi, MD & CEO Sheikh Imranul Haque of PSO and Mr. Nian Haoyu- Representative of FAW Pakistan. Other senior company officials from PSO, representatives from the China FAW Group and Al Haj FAW Pakistan, and 470 PSO carriage contractors also attended the ceremony.

FAW, founded in 1953, is known as China’s first and largest automotive group. With the motto of “first class product and first class service”, FAW is widely recognised in China and abroad since its foundation. It has therefore become an icon among Chinese vehicle producers.

To keep the dominant position in the markets, FAW is striving tirelessly to create the best products through strict production control, massive R&D investment and persistent innovation. In 2017, FAW manufactured a total of 3,407,810 units and sold 3,346,000 units in China and overseas. The sales revenue reached RMB469.8 billion and it was ranked 125th in Fortune Global 500.

FAW & PSO’s oil tanker handing over ceremony

In view of the PSO’s urgent need of upgrading its gas & oil fleet, FAW provided a product that is economical, safe and powerful within the shortest time. FAW J5P, a customised reformative vehicle with 28 improved configurations was optimised. It is built in complete compliance with the Oil & Gas Regulatory Authority (OGRA) and National Highways Authority (NHA) standards.

The highlight is the enhancement of engine power, from 330Hp to 360Hp. Moreover, 36 month payment deferral, two years or 120,000km quality guarantee and special VIP service constitute the competitive service support scheme. This in turn enables the carriage contractors of PSO to induct compliant vehicles in the PSO transportation system conveniently.

On the occasion, MD & CEO PSO, Sheikh Imranul Haque said, “PSO is glad to be with FAW to ensure implementation of OGRA and NHA standards in the transportation of petroleum products. The induction of new tank lorries will not only enhance PSO’s capacity to transport more fuel, but also prepare the company to fulfil the country’s increasing fuel needs in the wake of new business opportunities emerging from a consistent economic growth and mega projects like China Pakistan Economic Corridor.”

The latest fleet of FAW J5P oil tanker displayed at the event

Mr. Nian, representative of FAW Pakistan, added, “FAW appreciates PSO’s determination for modernising Pakistan’s road transportation system and PSO’s strategic ambition regarding the Pakistani market. As the leader of China’s automakers, FAW has inherited the mission of independent innovation and continuous improvement for 60 years and won the trust and support of over six million global users.

Relying on world-class research, development team and world-level truck-manufacturing base, FAW provides customers with safe, reliable, fuel-saving, comfortable and efficient world-class products. FAW will offer more excellent products and a complete solution to join hands with our clients for a win-win future.”

Pakistan’s oil and gas transportation market, once dominated by Hino, Isuzu and Mitsubishi, is changing as FAW plays a more important role. The strategic cooperation between FAW and PSO indicates the increasing demands of the Pakistani market for better commercial vehicles and with the persistent creed of “first class product and first class service, FAW will not only provide highly competitive products and services, but also work deeply with Pakistani clients to set the new benchmark for Pakistan’s transportation industry.

 

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Suzuki's Ravi now has some good competition from newcomers

Suzuki Ravi

Starting Price:726,000
Carrying Capacity: 550-600kg


Faw Carrier

Starting price: 799,000
Carrying capacity: 1 ton



Forland Bravo 1.0

Starting Price: 850,000 pkr
Carrying capacity: More than 1 ton



DFSK K01

Starting Price: 849,000
Carrying capacity: 1 ton.

 

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Development comes as demand of commercial vehicles increases due to CPEC. PHOTO: AFP


RAWALPINDI: The National Logistics Cell (NLC) has signed a memorandum of understanding (MoU) with Daimler AG -the German automotive corporation that owns Mercedes-Benz – for the local assembly and production of Mercedes‐Benz trucks in Pakistan.

The MoU was signed on behalf of NLC by Major General Mushtaq Faisal, the director general, and Zia Ahmed, chief executive officer of Pak NLC Motors. On behalf of Mercedes‐Benz Special Trucks, Klaus Fischinger, head of the executive committee, and Dr Ralf Forcher, head of sales, signed the MoU.

Also present at the signing ceremony were Naseem Shaikh, director and general manager at Shahnawaz Limited, and Ahmed Naeem of Shahnawaz Limited, the authorised distributor of Daimler AG in Pakistan.

In a statement issued on Saturday, NLC said the local assembly of Mercedes‐Benz trucks will mark a major shift in the logistics and transportation industry’s preference towards European manufacturers who offer technologically advanced products that combine superior performance, environment friendliness, reliability and road safety.

Major General Faisal termed the MoU a historic moment for Pakistan’s commercial vehicle industry. “The local assembly of Mercedes‐Benz trucks would prove as a strategic opportunity that would leverage the modernisation of Pakistan’s logistics industry,” said the official.

“Because of the incentives given in the Auto Development Policy 2016‐21, locally-assembled Mercedes‐Benz trucks would be offered at competitive prices.”

He added the development will ensure healthy competition in the trucking industry and meet the logistics requirements of the China-Pakistan Economic Corridor (CPEC).

Dr Ralf Forcher, head of sales at Mercedes‐Benz Special Trucks, said Pakistan’s infrastructure and construction sectors have registered significant growth in recent years, giving a boost to the logistics industry that, in turn, means increased demand for commercial vehicles.

It is pertinent to mention that strong growth in Pakistan’s GDP has contributed towards a significant boost in greater demand for commercial vehicles. In addition, CPEC, which includes a wider transportation network that link seaports in Gwadar and Karachi with northern Pakistan, as well as points further north in China and Central Asia, has given a boost to the auto sector in the country.

 

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FAW Carrier

Daehan Dewan Motor Company,

Pakistan, a year back, introduced a lucrative auto policy that resulted in investment announcements from some of the biggest brands in the world, including giants like Renault, Volkswagen, and many others. The policy not only ensured incentives for newcomers but has also motivated Dewan Group to get back into the auto sector.

Muhammad Saleem Baig, CEO of Daehan Dewan Motor Company, in an exclusive interview with ProPakistani, shared the story of ups and downs of Dewan Group and how it plans to re-conquer Pakistani market with its experience, local network, and proven quality.

From the Old Times

Saleem BaigFor those who don’t know, Yousaf Dewan Group of Companies stepped into automobile industry back in 1998/1999 as a result of an agreement with Hyundai and Kia. In fact, YDC was the reason that Hyundai and Kia vehicles became a local success.

The company, later on, introduced the well-known Hyundai made Shehzore truck, which became an instant success.

Saleem Baig told me that company sold over 50,000 Shehzore trucks, a number that has still not been surpassed by any truck maker in the country.

At the time, Shehzore held a market share of 80% in one tonne pickup category 20% market share in 1 liter hatchback category. This accounted for an overall 10% market share in auto sector at that time.

However, in 2010, Hyundai decided to halt its operations in 18 countries throughout the world — including Pakistan — due to a shift in the company’s business dynamics. The move isolated Dewan Group and it went into incognito mode while it searched for its next partner.

Saleem Baig mentioned that apart from Kia and Hyundai, YDC also brought BMW to Pakistan and has already signed a distribution agreement with Scania, company based out of Sweden, for manufacturing buses and trucks in Pakistan.

Plan to move forward

After Hyundai left the Pakistani market, Dewan Motors was left with just a few leftover kits for Shehzore vehicles. This is when the company started to look around for sourcing the rest of the parts. The company had many proposals from several Chinese automakers which were considered for evaluation.

Saleem Baig said that they tested a few Chinese models of Shehzore but their performance was below par. Shehzore gave an engine performance that lasted 300,000 kilometers, however, the Chinese models only went as far as 50,000 km which wasn’t acceptable for Dewan Motors.

Dewan recognized itself as the provider of a quality product with good after-sale value and spare parts that were readily and cheaply available. The CEO added that Dewan Motors stuck to its vision of providing quality products so instead of going to Chinese manufacturers out of desperation, they waited for better options.

On the company’s vision to reclaim the market in a nutshell, the CEO said;

The quality and after sale service is very important for us. Giving the quality product in the market is very critical.
The company will also enter the passenger cars market in the near future by bringing SsangYong to Pakistan, keep reading to know more details on this.

Joint Venture Between Dewan and Daehan

It is apparent that Korea has established an identity as a provider of good machines, be it the electronics or mechanical systems. In fact, many consider Korean products to be of same quality as those of Japan. So, Dewan went to Korea to look for quality products.

They were directed to meet with the Kolao Group of KR Motors. The Kolao Group also owns the Daehan brand. The company has a 1-ton pickup, 2.5-ton pickup in the making and another double-cabin pickup in market circulation.

This is where the Dewans leaned that Kolao Group had already invested $10-$15 million on a new 7% bigger model of Shehzore like trucks.

SaleemBaig highlighted that Shehzore was built around the Korean power train technology including the all important rear axle, that looked even better than the original Shehzore that Dewan group sold over 10 years ago.

Dewan Motors was quick to pitch their plan. With Kolao group’s tech and Dewan’s network of dealers, market share, and a state-of-the-art assembly plant in Pakistan, both the companies had the perfect chance to form a joint-venture with 50-50 ownership to give birth to a new company called Daehan Dewan Motor Company.

Re-birth of shehzore

With the deal locked with Kolao group, the Dewan group invested several million dollars to revive its assembly plant in Pakistan; that enabled the company to start assembling Shehzore trucks in the country again.

The investment from Dewan includes progressive localization of the vehicle in Pakistan. The first Shehzore produced had a localization of around 20%.

Dewan also holds the vision to localize the manufacturing to create more employment opportunities in the process.

Local Assembly plan

Dewan Motors has an established plant in Sindh with over 500 employees.

The company’s CEO told us that it is a technologically advanced plant with four robots that paint the vehicles. He added that these robots were brought from Germany in 2000 and even after 18 years there is no other company in Pakistan that has robots at their plants.

Talking about the capacity, he added that a total of 20,000 units can be assembled per annum at the plant. The capacity will be increased once SsangYong vehicles are introduced and localized in Pakistan.

He further added that Daehan Dewan is looking to sell 5,000-6,000 units of Shehzore in the first year

 

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http://changan.com.pk

Changan Pakistan's website gallery is now showing a large number of vehicles, I don't think they'll be launching all these but many of these look quite interesting

for e.g this alsvin v7 sedan looks good for our market but they'll need pricing strategy below city or atleast like city's base model with better features.

 

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JW forlands U/C production plant

 

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The current lukewarm growth in the commercial vehicle segment (9MFY18: 18% against an industry average of 25%) belies the optimism that is being seen in the industry otherwise. If we just take into account trucks, the growth was 27 percent in 9MFY18, but even at this rate, the segment is set to sell 11,000 units during FY18; against some 9,000 last year. That isn’t a lot compared to India, Thailand and Turkey who manufacture upwards of 500,000 LCVs a year.

The attention however, is staggering. Since the announcement of the auto policy of 2016-21; at least 12 players have emerged that either want to set up a Greenfield assembly, revive an old plant with a local partner or import their vehicles in CBU form into the country through an existing or new distributor, all in the commercial vehicle segment. Interestingly, the expectants aren’t all Chinese either. Just this month, NLC signed a MOU with Daimler AG for the possibility of bringing Mercedes Benz trucks in Pakistan through local assembly. Meanwhile, a local subsidiary of the Chinese Jiangsu Joylong Automobile announced it will be importing commercial vans and buses from China and sell them at half the current prices of these vehicles.

Before these, Hyundai Motors signed a contract to bring its Korean trucks to Pakistan. Last year in June, Swedish auto giant Scania announced it had signed a deal with Dewan to serve as a local distributor for its trucks, buses and coaches. FAW is already bringing its own and Hyundai vehicles while other Chinese players like JAC motors and Foton have also announced plans. Master Motors was awarded a Greenfield status to assemble commercial vehicles with the Chinese Chongqing Changan Automobile Limited. Daehan-Dewan has already launched Shehzore pickup after Dewan Motors was giving brownfield status. (Pickups in 9MFY18: 23%).

Besides a host of other Chinese players expressing interest, MAN Se and Volkswagen also indicated at different points last year that they intended to set up assembly plants in Pakistan. True, many of these good intentions and MoUs may never materialize but the interest itself lends some order to chaos; if not a data point for projected growth.

There is a general consensus that logistics industry will see a boom with growth in the retail sector, in industries and services seeking more sophisticated logistic solutions all with a healthy helping of CPEC related and trade activity on the side. Some estimates said at one point in time, you will find 20,000 trucks on the each route. Other estimates suggest, the current capacity of 20,000 to 30,000 units could easily be expanded to 100,000 units.

Perhaps between now till the point many of these new entrants launch their models will see sales catapult. Or they won’t; but it would be interesting to look at some of the feasibility studies done by major players. Remaining circumspect on all else, the good news is this: a national transport policy has been devised and waiting to be approved by the national assembly. When it does, it will be a long time coming.

Copyright Business Recorder, 2018

 

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Ghandhara Nissan has launched renault truck in Pakistan, it's a cbu atm priced at 15m pkr. If the test units work, we can expect ckd assembly. Major transporters were invited for test drive who praised how easy it was to drive.

 

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Foton JW autopark manufacturing plant starts local production

 

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Japan’s Sojitz Corp to invest $136.9 million for assembling Hyundai vehicles in Pakistan

LAHORE: Japan’s Sojitz Corporation will be investing $136.5 million for assembling Hyundai branded vehicles in Pakistan alongside its domestic partner Nishat Mills.

In a notification sent to the stock exchange on Wednesday, Nishat Mills Limited along with its consortium constituting of Nishat Group and Pakistan’s largest tractor manufacturer Millat Tractors Limited (MTL) with Sojitz corporation would enter the assembly, wholesale and retail business for Korean Hyundai brand vehicles in Pakistan.

The notification said “HNMPL’s total setup cost will be in the JPY 15 billion range. An assembly plant— scheduled for completion in December 2019—is currently under construction in a special economic zone in Faisalabad, Pakistan’s third largest city.

“Sales will be carried out through distributor-owned dealers and franchise dealers, with the goal of reaching 6% market share by 2024,” read the notification.



Pakistan’s automotive market has demonstrated an annual growth rate of over 10%. The country’s automotive market is forecast to expand further thanks to rising numbers of consumers.

In March last year, it was reported Nishat Mills had decided to enter into a shareholder agreement with Sojitz Corporation of Japan (Sojitz) for an acquisition of a 40pc stake in the company’s wholly-owned subsidiary HNMPL.

Sojitz was stated to be in an equity sharing agreement with HNMPL via an investment of Rs 40m.

The agreement is subject to the grant of regulatory approvals. Moreover, HNMPL had announced conducting a feasibility analysis of setting up a greenfield project to establish an assembly and sales unit for passenger and 1-ton commercial vehicles in Pakistan.

Also, in 2017 Nishat Mills, a subsidiary of Nishat Group had announced venturing with the South Korean Hyundai to set up an assembly plant in the country.

The agreement was significant in the sense that it marked the return of Hyundai to Pakistan’s automobile industry in addition to being a strong move to break the monopoly of Japanese companies dominating Pakistan’s automobile industry by assembling cars in Pakistan in collaboration with local partners.

 

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Al-Futtaim acquires land for manufacturing Renault cars

The managing director was of the view that the project would bring significant foreign direct investment to Pakistan and would also create many direct and indirect jobs. PHOTO: REUTERS

LAHORE: Al-Futtaim Group, one of the biggest conglomerates of the United Arab Emirates, has acquired an industrial plot for setting up an automotive plant for the manufacturing and assembly of Renault vehicles in Pakistan.

The group announced on Tuesday that it would set up the manufacturing facility in the industrial city of Faisalabad, which has the largest special economic zone in the country.

“Al-Futtaim is fully committed to the Pakistani market and to this project,” said Al-Futtaim Automotive International Senior Managing Director Colin Cordery. “We, together with Renault, are delighted to have completed the land acquisition, which is an important milestone in the project,” he added.

“We believe this to be the optimal location for the manufacturing and assembly plant, and look forward to working with Faisalabad Industrial Estate Development and Management Company (FIEDMC) to develop a world-class and modern factory.”

The managing director was of the view that the project would bring significant foreign direct investment to Pakistan and would also create many direct and indirect jobs.

“The land acquisition in Faisalabad is an important step in our project with Al-Futtaim Automotive to bring Renault vehicles to the Pakistani customer,” said Fabrice Cambolive, SVP, Chairman of Africa, Middle East and India Region of Renault.

The design and pre-engineering work on the project is under way and on-site activities will commence shortly. Formal launch of construction will be in fourth quarter of 2018.

Once construction work is completed, the state-of-the-art assembly plant will have an installed capacity of over 50,000 units per annum. Al-Futtaim and Renault expect the factory to commence production in 2020.

The next key milestone for the Al-Futtaim Renault Pakistan project will be the establishment of a dealership network across the country, which reflects both Al-Futtaim and Renault brand values.

“Renault is renowned for the safety and quality of its cars and we want to develop exactly the same technology and know-how in Pakistan,” said Al-Futtaim Renault Pakistan project CEO Yasser Alvi.

“We will bring cutting-edge and leading European technology to the Pakistani consumer through a modern distribution and dealership network with focus on engaging customers through unique and memorable experiences and great service.”

Al-Futtaim and Renault signed an agreement in November last year for assembling Renault vehicles in Pakistan as both companies termed it a lucrative market for automobile manufacturers, considering the country was posting a hefty 10% year-on-year growth.

Faisalabad industrial city is fast becoming a hub for domestic as well as world-renowned manufacturing companies.

Among other developments in the auto sector, Hyundai-Nishat is currently in the process of setting up an assembly line, which is expected to roll out vehicles by late 2019.

 

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Millat Tractors sets new production and sales record

LAHORE: Millat Tractors Limited set a new record of production and sales in the tractor industry by producing and selling over 42,500 tractors during the fiscal year 2017-18, thus surpassing its own previous production and sales record of 42,188 and 42,011 units respectively. This includes sales in both local and export markets. To celebrate this occasion, the keys of the 42,500th tractor were handed over to a farmer by Millat Group Chairman Sikandar Mustafa Khan and MTL CEO S M Irfan Aqueel in a ceremony held at the company’s premises. Speaking on the occasion, Khan said that it was an outcome of the company’s commitment to support the farmers and accelerate the pace of farm mechanisation in the country. Aqueel, in his address, said that the achievement of the production and sales record was a result of excellent team work within the company as well as all stakeholders.

 

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Sale of motor bikes and three wheelers in the country during first 11 months of current fiscal year (2017-18) increased by 16.18 percent as compared to the sale during July-May 2016-17.

The motor bikes sale rose to 1,744,463 units during July-May 2017-18 compared to sale of 1,501,393 units in same period of previous year. On year-on-year basis, the motor bike and three wheelers’ sale in the country also rose to 169,298 units in May 2018 from 153,855 units in same month of last year, posting an increase of 10 per cent. According to details issued by Pakistan Automotive Manufacturing Association (PAMA), sale of Honda bikes surged by 19.15 per cent as it jumped to 1,058,839 units in Jul-May (2017-18) from 888,640 units in same period of previous year.

On year-on year basis, the sale of Honda bikes also soared to 105,161 units in May 2018 compared to the sale of $93,060 bikes in same month a year ago, showing an increase of 13 percent. Similarly, production of Suzuki two-wheelers also registered an increase of 17.5 per cent as it was recorded 19,657 units against the sale of 16,725 units in same period of last year, however DYL motorcycles’ sale fell by 21.68 per cent to 5,460 units during the period under review against the production of 6,972 units in same same period of previous year.

The sale of Yamaha motorcycles also increased to 19,832 units in Jul-May 2017-18 from 12,262 units in same period of previous year thus registering an increase of 61 per cent.

Sale of Ravi bikes also witnessed an increase of 32.1 percent as it increased to 26,606 units in July-May 2017-18 from 20,134 units in same period of previous year, whereas the sale of Roadprince bikes declined by 10 per cent from 189,803 units in July-May (2016-17) to 170,831 units in the period under review.

During July-May (2017-18), as many as 372,558 units of United Auto motorbikes were produced in the country against 298,329 units in same period of the preceding year, showing an increase of 24.9 per cent. Sale of Qingqi three-wheelers went down to 23,592 units in first 11 months of current fiscal year against 27,770 units in same period of previous year, posting a decrease of 15.04 percent.Sazgar three wheelers’ sale posted a slight increase of 1.32 percent as it rose to 19,964 units compared to 19,703 units in last year.