ECO Car Plan
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Draft ECO Car Manufacturing Plan Preface: as a result and due to the increasing need to promote the intra ECO industrial joint investments and as per the negotiations and decisions of the ECO CCI Statutory meeting during the past several years in particular the final Report of the 14th Meeting of Industry, Investment and SME’s Promotion Committee held in Karachi, 14 November 2019 all the member chambers sense the need to address this issue. Hence the subject event highlighted the sıgnifıcance of the Small and Medıum Enterprıses and the very ımportant role that the joınt industrial cooperation and investments can play ın boostıng the ıntra ECO trade and ınvestment . In that same meeting the participants called for the joınt productıon of goods among the ECO member states namely a car whether ın part or as a whole joıntly and ın collaboration of the member countrıes. In this respect it was suggested that a joint venture be formed among the member states in order to facilitate and catalyze the joint production and manufacturing of vehicles namely cars which can also collaborate in the relevant areas such as spare parts production etc. Consequently the opinions and viewpoints of the member chambers will be of great value in this respect in order to further discuss the case during a technical committee meeting which will be held during the next meeting of Industry, Investment and SME’s Promotion Committee. Therefore obviously this proposal presented at the previous meetings is based on actual capabilities of the ECO region as it is also proposed that parts manufacturing for cars be promoted among member states focusing on SME’s production factories and plants to give SME’s another boost in the region. In this line the following is a schematic trend of the car manufacturing process as well as a brief history of the member countries’ manufacturing capabilities . a- Major trends of the auto industry in the ECO region 1- Azerbaijan 2- The main factories and plants active in auto industry in Azerbaijan comprise of : Ganja Auto Plant (1986–present) Ganja Auto Plant is an auto assembly plant situated in the Ganja city in Azerbaijan. The factory was founded in 1986 for a production run of 30,000 "GAZelle" vans according to the project brief. Azsamand (2005–present) AzSamand opened in October 2005 with the support of the Government of Azerbaijan. AzSamand works with Iran Khodro. Nakhchivan Automobile Plant (2010–present) Nakhchivan Automobile Plant: Automobile manufacturer in the Nakhchivan Autonomous Republic of Azerbaijan. Nakhchivan Automobile Factory was founded in 2006. It was put into operation in 2010. 3- Iran Iran developed a significant automotive industry with up to 200,000 annual production under the Shah's regime. There was a decline after the Islamic revolution of 1979 but since the end of the 20th century growth returned, accelerating in recent years. There were 13 public and privately owned automakers within Iran, of which two – Iran Khodro and SAIPA – accounted for 94% of the total domestic production. Iran Khodro, which produced the most prevalent car brand in the country – the Peykan, which has been replaced in 2005 by the Samand – was still the largest with 61% of the market in 2001, while Saipa contributed 33% of Iran's total production in the same year. The other car manufacturers, such as the Bahman Group, Kerman Motors, Kish Khodro, Raniran, Traktorsazi, Shahab Khodro, and others together produced only 6%. These automakers produce a wide range of automobiles including motorbikes, passenger cars such as Saipa's Tiba, vans, mini trucks, medium-sized trucks, heavy duty trucks, minibuses, large size buses and other heavy automobiles used in commercial and private activities in the country. Iran has a fleet of 7 million cars in 2008, which translates to almost one car per ten persons in the country (including pick-ups and buses). Automobile production crossed the 1 million mark in 2005 and Iran car exports reached $1 billion by March 2009.Iran ranked the world's 13th biggest automaker in 2011 with annual production of more than 1.6 million (more than in such old and new auto industries as Belgium, the United Kingdom, Italy, the Czech Republic, and Turkey). 4- Pakistan The automobile industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the prominent list of the top automotive industries, having a stable annual production of between 100,000-170,000 vehicles. Surprisingly, despite its production volume, only a few car models are assembled in the country and customers have a very small variety of vehicles to choose from. The lack of competition in the auto industry due to the dominance of a few players, and restrictions on imports in the form of heavy duties have resulted in very high prices of cars in the country. Currently some of the major world automakers have set up assembly plants or are in joint ventures with local companies, including Toyota, General Motors, Honda, Suzuki, and Nissan Motors. The total contribution of auto industry to GDP in 2007 was 2.8% which was estimated to increase significantly over the next decade. The auto sector presently contributes 16% to the manufacturing sector which is predicted to increase even further. Master truck manufacturing, Al Haaj motors and FAW joint venture for producing Chinese cars, trucks and dumpers. However, on 19 March 2016, Pakistan passed the "Auto Policy 2016-21", which offers tax incentives to new automakers to establish manufacturing plants in the country. In response, Audi, BMW, Renault, Nissan, Kia, SsangYong, Volkswagen and Hyundai have expressed interest in entering the Pakistani market. 5- Uzbekistan Before 1992, Uzbekistan had absolutely no automotive industry, being part of the Soviet Union. Earlier, UzDaewooAuto, SamAuto, UzAuto Motors, UzTruck&Bus Motors new auto producing plants were built with South Korean, Germany and American help. Now that production of passenger vehicles growth up to 300 thousand per year, moreover there are more than 28 OEM manufacturers like engine, car windows and others. Uzbekistan exports automobiles and OEM components to Russia and other CIS countries. UzAuto Motors, ajoint venture, with manufacturing operations in Asaka [Uzbekistan] and in Khorezem region [Uzbekistan] features five vehicle assembly lines and one stamping operations plant with a growing local supply base supplemented by commodities and automotive parts largely from Asia Pacific region (e.g., steel coil from Russia, advanced technology parts from South Korea, etc.). Moreover, a joint venture with manufacturing operation in Samarkan region [Uzbekistan] 2 commercial vehicle production plants. With multi-shift operations, the number of employees in automotive industry in Uzbekistan estimated around 27000 people. 6- Turkey Recently fast growing with European and then Japanese and South Korean help, the automotive industry in Turkey plays an important role in the manufacturing sector of the Turkish economy. The foundations of the industry was laid with the establishment of Otosan assembly factory in 1959 and the mass production of the domestic car Anadol in 1961. Last years Turkey produced up to 1.2 million motor vehicles, ranking as the 7th in Europe and the 16th-17th largest producer in the World. With a cluster of car-makers and parts suppliers, the Turkish automotive sector has become an integral part of the global network of production bases, exporting over $22,944,000,000 worth of motor vehicles and components in 2008. Global car manufacturers with production plants include Mercedes-Benz, Fiat/Tofaş, Oyak-Renault, Hyundai, Toyota, Honda and Ford/Otosan. b- The process of car manufacturing 1- Supply Chain Today's cars are primarily "sourced out" to produce various sub-assemblies in over 4,000 disparate locations as far away as China. This means a car's "production" plant is an active assembly point, where skilled workers and robotic systems bring together all of the necessary loose components to create a final product on a "just-in-time" basis. 2- Chassis The chassis of the car is the baseline component. All other parts are integrated on, or within the chassis. This is typically a welded frame that's initially attached to a conveyor that moves along a production line. As the frame progresses, the car is literally "built from the frame up" to create a final product. Parts that are sequentially applied to the chassis include the engine, front and rear suspension, gas tank, rear-end and half-shafts, transmission, drive shaft, gear box, steering box, wheel drums and the brake system. 3- Body Once the "running gear" is integrated within the frame, the body is constructed as a secondary process. First, the floor pan is positioned properly, then the left and right quarter panels are positioned and welded to the floor structure. This step is followed by adding the front/rear door pillars, the body side panels, rear deck, hood and roof. The entire process is typically executed by robotic machines. 4- Paint Before painting the vehicle, a quality control team inspects the body as it sits. Skilled workers look for dents, abrasives or other deformations that could create a finishing problem when undergoing the painting process. Once this step is completed, the car is automatically "dipped" with primer, followed by a layer of undercoat and dried in a heated paint bay. Once the primer/undercoat process is finished, the car is again "dipped" with the base coat and again dried before moving the assembly to the next stage. 5- Interior After the structure is entirely painted, the body is moved to the interior department in the plant. There, all of the internal components are integrated with the body. These components include: instrumentation, wiring systems, dash panels, interior lights, seats, door/trim panels, headliner, radio, speakers, glass, steering column, all weather-striping, brake and gas pedals, carpeting and front/rear fascias.