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ContentsJanuary-2020 Inside Article / Review News / Event 18 New policy 20 Nishat unveiled locally Electric vehicles a assembled Hyundai pickup turning point for Pakistan's H-100 Porter auto sector Media coverage by Automark 28 Business Financial Agreement 21 Developing Exports from Memon Motors and Meezan Bank of KCIP sign Memorandum of Understanding PR by Mehran Commercial Entrprises Media coverage by Automark 24 Delay in SRO hampers 31 Images for dealership visits by EV revolution marketing team of Millat Batteries Exclusive Article by Ali Hassan 32 First PEARL CKD Line-Off Ceremoney 30 Customer satisfaction Index - CSI By Muhammad Rafique 37 Malaysian PM Mahathir Mohamad gifts PM Imran Khan Proton SUV X70 38 “Session on Export Enhancement” at KCIP 44 4th Annual Pakistan Road Safety Conference November 27, 2019 Avari 41 Wagon- R VXL (AGS) version will soon Hotel, Lahore be on the Pakistani roads News Updates 42 Keep Your Promises on the Service Drive – or Face the Consequences 22 Car sales plunge 44pe, By Moazzam Abu Bakar - The Automotivator tractor assembly halted 47 International Automotive News 48 Vehicles / Car Price List 49 Corporate News/Glimpses 55 Motorcycle Market Price list Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. January-2020 Pakistan’s premier magazine on automotive, engineering & energy sector Volume 13, Issue 01 'The Only Accredited Pakistani Automotive Magazine for Dubai EXPO 2020’ Monthly AUTOMARK Magazine International Editor-in-Chief Technical Editor Muhammed Hanif Memon Muhammad Shahzad Behind The Curtain; Anwar Iqbal - Chief Correspondent Employees of The Pakistani Executive Director, Regal Automobile Industries Limited Auto Sector Pakistan’s auto sector employs a workforce of over 1.8 million Advisors directly and 3.5m in ancillary production. There are about eight to 10 major, formal, multinational auto assemblers (ie, Toyota, Imtiaz Rastgar Nadeem Ahmed Salmi Honda, Suzuki, Hino, FAW and many Chinese assemblers) with CEO, Rastgar Group & Executive Director a number of plants with labour-intensive assembly workshops CBI External Expert, Operations rather than modern assembly lines. Some 2,000 SMEs make auto Ex-chairman EDB M/s. Al-Haj Faw parts for the local market. Of these, only 400 operate in the Islamabad Motors (Pvt) Ltd. organised sector. Karachi Syed Mansoor Rizvi Blue-collar workers in the auto industry generally have 10-14 Principal Officer Ghulam Farooq years of schooling. Basic recruitment is done through the M/s. CNH Services Chief Materials officer Apprenticeship Ordinance, 1962. By law, apprentices are inducted (Pvt) Ltd. KIA Lucky Motors Pakistan on a monthly stipend of less than minimum wage. Permanent Karachi Limited. workers’ salaries range from Rs16,000 to Rs45,000. Contract Karachi workers receive lower wages and few (or no) benefits even Farhan Hafiz though, under labour laws, they are also entitled to social security, Director Marketing & Kaiser A. Khatana minimum wages, overtime, compulsory holidays and group Sales Chairman Institute of insurance. M/s. Al-Haj Faw Road Safety Motors (Pvt) Ltd. Lahore The auto firms tend to employ a small core team on a permanent Karachi basis, and hire a larger peripheral workforce on contractual terms through formal sector manpower outsourcing companies. Manpower supply firms capture only 5% of the market in Advertising Manager Assist. editor-in-chief contractual hiring: informal labour contractors do 95% of the Tahir Siddiqui Neha Murtaza hiring. Circulation Manager Graphic Designer Hasaan Mustafa Salman Hanif The auto assemblers vary in their treatment of workers. A few Web Master hire about 20% of their workforce on contract and the remaining Mustafa Hanif 80% as permanent. Manpower suppliers claim that they register Murtaza Hanif contract workers with the state-run labour welfare institutions. But a source shares that just 2% of the entire population of Contributors in workers in Karachi’s Korangi industrial area are registered with THIS EDITION the EOBI. Muhammad Rafique Ali Hassan - Hawwa Afzal Firms (in both the formal and informal sector) use various tactics Anwar Iqbal - Moazzam Abu Bakar to subvert laws. According to the law, a person who works for M. Hanif Memon - Neha Murtaza more than three months becomes a permanent worker. But Active Communications companies tend to fire a worker after 89 days only to then rehire Mailling Address: the same person. The worker gets a new card with a new code number. D-68, Block-9, Clifton, Karachi Mobile: 0321-2203815 Working conditions are better in the MNCs, but not in every firm. E-mail: [email protected] Workers at one well-known car battery manufacturer told this website: www.automark.pk scribe of the pathetic work conditions in the factory area, where Whatsapp & Wchat : +92 321 2203815 workers are exposed to acid and lead-laden particles. Many suffer AutoMark Canada Office from abdominal pain, nausea, vomiting, anaemia and high blood Managing Editor pressure. Even worse treatment is meted out to workers concerning Mohammad Shahzad S.A.E. D.M.P. their right to form trade unions. 41 Jordana Drive Markham (Toronto) Labour relations in the country are very complex. The mix of Canada - L3S 3N8 Phone: 905-472-8282 informality, lack of transparency, legislative gaps and lacunae, Email: [email protected] poor governance, lack of capacity in labour welfare institutions AutoMark REGD: MC-1330 and corporate chicanery puts up insurmountable hurdles and Published every month by M. Hanif Memon pushes labour to the depths of vulnerability. Note: The views expressed by contributing writers and The workers bear the brunt of the decline in production. They comments do not necessarily reflect the views and policies have no back up, no support network, no allies — and no one of the Monthly AutoMark magazine's management speaks for them. Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Automotive News - Updates New policy Electric vehicles a turning point for Pakistan's auto sector to enter the electric vehicle business in the country. Qureshi is also heading SZS which has completed the first phase of a plant for the assembly of electric vehicles in Karachi. According to him, total investment of only Rs2 billion will be needed to establish the electric vehicle plant with capacity to produce 20,000 vehicles annually on a double-shift basis. The plant, being established over 80 acres of land, will begin production next year. Qureshi added that that the plant would be a composite one – which would be capable of producing electric bikes and vans as well in addition to the electric The automobile sector of Pakistan is International Energy Agency (IEA), cars. expected to undergo a drastic China remains the world’s largest “Plants for conventional cars are more transformation over the next decade as electric car market, followed by Europe expensive to establish as they cost the government has approved the and the United States. Norway happens around 10 times more than an electric electric vehicle (EV) policy, paving the to be the global leader in terms of electric vehicle car plant,” he said. Talking about way for introducing such vehicles in the car market share. the electric vehicle policy, he was of the market of 207 million people. According to the electric vehicle policy, view that it would be a turning point for The policy provides multiple incentives the demand for oil products will drop the industry and would also help for electric vehicle manufacturers by millions of tonnes by the year 2030. alleviate pressure on the country’s including a massive reduction in taxes “Though taxes on electric vehicles were current account deficit by reducing the from 43% to 11.25%. also lower earlier compared to oil- oil import bill. Electric mobility is expanding at a rapid operated vehicles, it was not viable to The government has approved the policy pace throughout the world. In 2018, the start an electric vehicle business under draft prepared by the Ministry of Climate global electric car fleet expanded to 5.1 the previous tax regime,” said Shaukat Change. The draft, however, had faced million, up 2 million from the previous Qureshi, an auto industry veteran, who stiff resistance from the Ministry of year. now heads EV Technologies – a Industries and the Engineering According to latest data of the consulting firm for businesses that want Development Board (EDB). www.automark.pk | January-2020 | Page 18 Generated by Foxit PDF Creator © Foxit Software http://www.foxitsoftware.com For evaluation only. Monthly AutoMark International According to Qureshi, total investment of only Rs2 billion will be needed to establish the electric vehicle plant with capacity to produce 20,000 vehicles annually on a double-shift basis. The plant, being established over 80 acres of land, will begin production next year. He added that that the plant would be a composite one – which would be capable of producing electric bikes and vans as well in addition to the electric cars. “It is only a matter of time when A 70cc bike would cost Rs218,400 if it by 2040 in a bid to add 74,448 Pakistanis will be able to drive electric travelled only 60 km per day in the same megawatts of production capacity to the vehicles in the country,” remarked time period, he elaborated. system. Most of this capacity will come Ehteshamul Haq, President of the “Even though passenger cars are from hydel, domestic coal and renewable Pakistan Electric Vehicles and Parts important, electric buses will make the sources including wind and solar. Manufacturers and Traders Association real difference as they will transport In the year 2040, Pakistan’s energy ((PEVPMTA).