[🇵🇰] Automobile industries in Pakistan

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Source : https://www.brecorder.com/news/40281519/auto-sector-in-2023-advent-of-evs-and-hybrids-in-pakistan

Auto sector in 2023: advent of EVs and hybrids in Pakistan​

Bilal Hussain

The year 2023 signaled a downward spiral for the auto sector. For about half the year, there were restrictions from the State Bank of Pakistan (SBP) regarding Letters of Credit to import parts that kept the supply side under pressure which then led to higher prices. Amid high interest rates, and inflation, demand remained on the lower side as well.

The industry faced LC issues from July 2022 till February 2023. It again faced government action – this time, the reasons were different.

In October and November, auto companies weren’t getting custom clearance for importing Completely Knocked Down units or auto parts because they failed to achieve the 2% export target, which they initially agreed with the government but were unable to achieve.

Sales in fiscal year 2023 dropped to around 120,000 units (for all passenger categories and imported used cars) – lowest since 2009.

Looking at the data on hand, sales were possibly the lowest ever over the course of two-decades in just the first 11 months of calendar year 2023 – sitting at just 76,401 units.

For perspective, volume of sales was 210,395 units for the same period in 2022.

Silver lining

Industry experts such as Sunny Kumar, Deputy Head of Research at Topline Securities, expect car sales to improve in 2024.

One of the reasons is the expectation that interest rates may go down substantially next year. Car financing may also pick up again.

Since car buying is a feel-good event, the income generated from the Pakistan Stock Exchange rally may also be attracted by the auto sector.

EVs’ manufacturing licenses: two, three wheelers take front seat in Pakistan

Auto sector pivots?

Fuel prices have gone up and inflation has caused the contraction of real income. Mobility cost is biting common people.

They are looking for cheap options and, in a sense, electric vehicles, especially in the two-wheel segment, have emerged as an option in the year 2023.

There has been tangible work done in the two- and three-wheel sector during the year, as 32 companies that have received manufacturing licenses under the Electric Vehicles (EVs) Policy 2020–2025 are all two and three-wheel manufacturers.

Amid the bleak outlook of the auto sector, a major auto sector player launched a 4th generation hybrid vehicle (HEV) Toyota Corolla Cross.

Meanwhile, another major player, Atlas Honda unveiled its electric scooter ‘BENLEY e’ during a ‘soft’ launch this year, showing a direction for the two-wheel segment.

Adopting fuel-efficient cars has been the need of the hour in the absence of a wide-scale network of public transport. Maybe, Pakistan is now more ready to adopt climate-friendly solutions and, in this endeavour, kills two birds with one stone.

Auto sector in 2023: advent of EVs and hybrids in Pakistan​

The year 2023 signaled a downward spiral for the auto sector. For about half the year, there were restrictions from...
www.brecorder.com

 

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1960's Buses in Karachi

 

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According to the Pakistan Bureau of Statistics (PBS) Pakistan’s Large Scale Manufacturing Industries (LSMI) production was decreased by 3.56 per cent MoM in September 2023 to stand at 112.85 as compared to 117.02 in August 2023.

Conversely, on a yearly basis, the LSMI output witnessed an increase of 1.01 per cent YoY against 111.73 recorded in September 2022. Cumulatively in 3MFY24, LSMI has shown a growth of 0.68 per cent when compared with the corresponding period of previous year.

Pakistan: Import Payments By Transport Group (Thousand US Dollar)
Details	Jul-Jun	Dec FY23	Nov (R) FY24	Dec (P) FY24	Jul-Dec
FY22	FY23	FY23	FY24 P
Transport Group	3,628,596	1,266,210	99,811	109,313	144,303	747,440	772,025
1. Road Motor Vehicles	3,009,873	1,073,575	68,159	106,397	117,357	661,743	672,233
1.1 Completely Built Unit (CBU)	476,676	79,122	8,724	8,814	11,606	53,365	42,425
a. Buses,Trucks & Oth. Heavy Vehicle	190,795	61,504	8,510	6,004	7,239	37,065	29,005
b. Motor Cars (CBU)	282,639	15,623	4	2,798	4,049	14,534	12,837
1.2 Completely Knock Down (CKD)	2,254,012	863,992	48,496	83,996	98,478	508,113	567,105
a. Buses,Trucks & Oth. Heavy Vehicle	429,429	249,047	20,403	9,287	15,325	135,917	99,695
b. Motor Cars (CKD)	1,747,959	577,396	23,539	69,679	79,384	346,653	440,219

According to the government officials in Pakistan, manufacturing with a share of 12.4 per cent in GDP has a dominant presence within the industrial sector.

During FY2022, LSM with 9.2 per cent of GDP dominates the overall manufacturing sector, accounting for 74.3 per cent of the sectoral share followed by Small Scale Manufacturing, which accounts for 2.0 per cent of total GDP and 15.9 per cent sectoral share.

The government officials recorded that except sluggishness in some areas in case of buses and two/three wheelers there has been robust growth in all-automobile sectors during July-March FY2022.

 

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Blue and white Ford Consul Classic.

This 4 door Consul Classic has covered an epic 280k miles since being built in 1962.

Victoria Road (Now Abdullah Haroon Road) Karachi in 1970s :

 

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Millat Tractors Ltd celebrates 60 years of excellence​

Press Release
March 2, 2024

LAHORE: Millat Tractor Ltd, the leading manufacturer of agricultural tractors, farm machinery & power generators in Pakistan, celebrated its 60 years of excellence and success as the country’s largest tractor selling company since 1964.

At this auspicious occasion the Chairman Millat Group, Sikandar Mustafa Khan paid rich tributes to its founding father Rana Khuda Dad, its Board of Directors, past & present employees, management and workers who had the vision of accelerating MTL towards the path of localization and tapping global markets with its wide range of products.

The CEO MTL Raheel Asghar congratulated all its stakeholders, partners and employees for their invaluable contributions and prayed that MTL continues to strengthen and serve the economy of Pakistan.

On the occasion, the company released its “Millat Anthem Song” expressing its enthusiasm and association with the farmers, their struggle to provide and the dedication of its workforce.

 

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Atlas Honda tests the waters with electric scooter called ‘BENLY e’ in Pakistan​

• Displays new line during soft launch in Sheikhupura

Bilal Hussain
November 28, 2023

Atlas Honda unveiled its electric scooter ‘BENLEY e’ during a ‘soft’ launch at its Sheikhupura factory on Tuesday, as the company makes it move towards the two-wheel EV segment in Pakistan.

Chief Officer of Motorcycle and Power Products at Atlas Honda Noriaki Abe said at the event that ‘BENLY e’ will be offered for test marketing while new products will be offered based on feedback.

Another industry source privy to the matter said Atlas Honda will not be selling its electric scooters to the general public initially.

“However, bikes will be commercially sold to organisations having large fleets of two wheelers like food delivery services and courier services etc. where the company has close interaction with customers and has an opportunity to understand their needs better,” the source said.

“It’s a new product and the company needs to develop a close understanding of the customer’s needs and challenges that may stem up while entering the electric bike market,” it added.

The source further said that unveiling the electric scooter shows the company’s intention to enter the electric bike market.

How does the market see Atlas Honda’s intent to enter the EV market?

A Honda dealer at Karachi’s busy Akbar Road said dealers are expecting that the company will take a year to make electric bikes available in the market.

“There are a lot of people inquiring about Honda’s electric bike,” said the dealer.

He added that the market was seeing an increase in the sale of electric bikes in recent times.

Two-wheel industry expert Sabir Sheikh says Atlas Honda entering the electric bikes business is a big push for the nascent industry.

“Atlas Honda presently commands over 80% of the two-wheel market in the country. They are undisputedly the biggest two-wheel player in the country. Therefore, their entry in the electric bikes arena gives the nascent industry a big push,” he said.

In 2022-23, Atlas Honda sold over 1 million motorcycles out of the total 1.18 million total two- and three-wheel unit sales – commanding 85% market share, according Pakistan Automotive Manufacturers Association (PAMA) data.

At the event, Saquib H. Shirazi, President and CEO of Atlas Honda, said the company has expanded its product line up and achieved localisation of up to 95%.

“The company developed the largest network of local auto parts manufacturers and dealers. With more than 10,000 touchpoints, the company has created direct employment opportunities for more than 150,000 people,” Shirazi was quoted as saying in a press release issued after the event.

Meanwhile, Sheikh said Chinese electric bikes are getting popular but Honda will be offering Japanese technology, which the market expects to be superior.

Sheikh, who is also Chairman Association of Pakistan Motorcycle Assemblers (APMA), expects Honda bikes may be priced more than double of its comparable competitor Chinese brand of electric bikes.

“A good Chinese electric bike is presently priced over Rs300,000. I am expecting Honda’s electric bike to be priced around Rs900,000, especially the one that has been displayed in Sheikhupura,” he said.

“There are now around 1,000 electric bikes being assembled in Pakistan a month. The dynamics are changing very fast. The number will go up to 4,000-5,000 by June 2024. I know people who have bought electric bikes. They are very happy because it is saving them up to Rs15,000 monthly on account of fuel,” Sheikh added.

After-market

Sheikh said buyers should buy motorcycles only from those companies that have a production facility to ensure after-sales support.

Meanwhile, he added that the second-hand market for electric bikes will be slower because the price of a battery has a huge pie – somewhere around 50% of the overall price.

‘Good news’

“It’s good news that a major Atlas Honda is testing waters with its electric scooter test run. Their experience will be very beneficial for the EV market,” said Dr Aazir Anwar Khan, founder and Director Integrated Engineering Centre of Excellence (IECE), University of Lahore.

He added that Atlas Honda has the muscle and brand recognition to convince people and adapt to EVs.

He said that going forward, if Honda manufactures some 50,000-100,000 electric scooters in the country, it will be a major step towards achieving the target of 30% electrification of motorcycles by 2030.

Khan said the price point will be the biggest challenge for the company.

“If the price is very high, the market for its electric scooter will be very small. Two-wheel is a very price sensitive segment.”

 

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Daewoo Express plans to introduce 200 inter-city electric buses in Pakistan​

• Another 1,000 EV rickshaws plan for Karachi and Lahore on cards

Bilal Hussain

Daewoo Express, one of Pakistan’s leading inter-city transport service providers, is planning to introduce 200 Electric Vehicle (EV) buses gradually in the next two years along with 1000 EV rickshaws for Karachi and Lahore in collaboration with Sazgar Engineering, Business Recorder has learnt.

If it goes as planned, it will be the first EV-based inter-city bus service in Pakistan.

Daewoo Express is hopeful that multi-million dollar financing for these two projects will be finalised by January-February 2024 with an Asia-based development funding agency.

The electric buses are expected to start operations during summer next year, and all 200 buses will be in operation by mid-2026.

The EV buses will operate on short routes having a maximum distance of 225 kilometres so that they don’t have to stop during journey for charging as it would be inconvenient for passengers.

These 200 electric buses will run on 17 short routes such as Karachi to Hyderabad; Peshawar to Rawalpindi; Lahore to Faisalabad; Lahore to Sialkot etc.

“We will have charging facilities on all of our terminals where these electric buses will operate,” Hassan said.

Hassan said it is difficult to predict how introduction of these electric buses will affect inter-city fares as no one knows what will be the price of diesel and electricity by the time these buses are introduced.

“However, it should be remembered that upfront cost of electric buses is significantly higher than that of diesel buses,” he added.

The company says it’s working with three to four Chinese bus manufacturers, but yet to finalise the one manufacturer it would eventually be purchasing the buses from.

“If this pilot project of 200 buses is successful, we may consider entering into the electric bus manufacturing business,” Hassan said.

The company already has a manufacturing facility in Sundar near Lahore, which the company acquired from Swedish auto manufacturer Volvo that wrapped up their business from Pakistan in early 2000s.

So far, it has signed a Memorandum of Understanding (MoU) with Sazgar Engineering for manufacturing of 1,000 EV rickshaws, which Daewoo Express will operate in Karachi and Lahore as a ride-hailing service.

“Introduction of EV rickshaws will also go a long way in improving air quality and reducing noise pollution in the two biggest cities in Pakistan,” Hassan said.

Separately, a source in the government told the scribe that the company is in talks with the Asian Infrastructure Investment Bank (AIIB) for around $24 million for the project.

Another source informed that the AIIB would also engage other financing agencies since the financing amount required for these green projects is higher than $24 million.

However, the company didn’t share or confirm this detail.

What do experts say?

An official of the Ministry of Climate Change (MoCC), on condition of anonymity, said the Ministry of Finance shared details of the project with them for its ministry’s expert opinion.

“It has been agreed that initially the company will use conventional sources and later they will convert electricity sources to renewables to charge their buses.”

Hassan confirmed this, saying Daewoo Express already has plans to introduce solar farms in Karachi and Lahore as a part of this project.

Dr Aazir Anwar Khan, Founder and Director, Integrated Engineering Centre of Excellence (IeCE), University of Lahore, says bringing 1,000 electric rickshaws would be helpful in reducing carbon emissions.

“It’s a small number as compared to 500,000 rickshaws on roads (and 100,000 being sold every year since 2019) in the country. But it’s a good start,” he said.

Mentioning a study, he shared that on average a petrol CNG/LPG rickshaw emits 8 tons of carbon dioxide, and by introducing 1000 rickshaws, 8000 tons of carbon emissions could be reduced.

“However, there will be a need for swappable battery stations for these rickshaws. Because it will be difficult for these rickshaws to get battery charged from a charger,” he said.

Battery swapping or battery switching is an electric vehicle technology that allows battery electric vehicles to quickly exchange a discharged battery pack for a fully charged one.

“Electric vehicles are also easier to maintain because the number of parts are very much lesser than an ICE vehicle,” he added.

An auto sector expert Mashood Khan said electric buses in the country have been imported separately by different provincial governments.

“Sindh, Punjab and KP are all importing buses separately. If there was a joint plan, a plant for making buses could have been established,” he said, adding that there is a huge potential in two-three wheels as well as buses for public transport on the back of a huge gap presently.

“If work is sincerely done, we can see quite progress. But there is a need for sincerity. There should be investment in the industry. There shouldn’t be just trading that you import and not work on manufacturing in Pakistan,” Mashood Khan emphasised

 

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Indus Motor Company, the assembler of Toyota-brand vehicles in Pakistan, said on Tuesday that it has become the first company in the four-wheeler segment to start exports after it signed an agreement with Toyota Egypt.

“We have already sent our first shipment this month,” Chief Executive Ali Asghar Jamali told Business Recorder.

A press release issued by the company also stated that the first consignment of semi-processed raw material to be shipped to Toyota Egypt will mark the “beginning of era from the export point of view by any original equipment manufacturer (OEM) in Pakistan and plans are in place to continue in this direction”.

Jamali said that while significant, it is “too early” to deem it a turning point for the struggling industry.

His remarks come as Pakistan’s auto sector, highly dependent on imports to meet its assembling needs, remains under pressure due to constraints on issuance of Letters of Credit (LCs). The hindrance comes on the back of Pakistan’s low foreign exchange reserves that triggered import restrictions.

While the State Bank of Pakistan (SBP) has lifted restrictions, it will take some time before normalcy returns.

At the same time, a fast-depreciating rupee pushed up prices of automobiles while runaway inflation also took Pakistan’s key interest rate to a record high, discouraging buyers from financing. In response, almost all auto sector’s players have been announcing plant shutdowns with regular monotony.

“This is a baby step at the moment,” said Jamali. “Currently, we have raw material constraints in the country. It would stop us from exporting huge quantities. But I am hopeful.”

The CEO said the company will only be exporting a certain part to Egypt.

“If their confidence is built, we may be asked to export more parts.

“Even if we manage to export one part to many markets, it would increase our export numbers.

“We hope that other manufacturers would also get confidence and find avenues to export as well,” he added.

A statement from the company, meanwhile, said the partnership with Toyota Egypt “is the first step to meet requirements set under the Auto Industry Development and Export Policy (AIDEP) 2021-2026”.

 

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Al-Ghazi Tractors Limited​

BR Research
August 22, 2023

Al-Ghazi Tractors Limited (PSX: AGTL) was incorporated in Pakistan as a public limited company in June, 1983. AGTL is a subsidiary of Al-Futtaim Group of Dubai. The company is engaged in the business of providing agricultural solutions by manufacturing and selling tractors, generators, implements and spare parts. Its operational hub is located in Dera Ghazi Khan which has technical collaboration with Case New Holland (CNH), the largest manufacturer of agricultural tractors in the world. AGTL’s plant has the capacity of producing 30,000 tractors per annum in a single shift. AGTL also has a generator assembly line which can produce 2000 generators per annum in a single shift.

 

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Auto industry turns the corner after sales slump​

INP
Sep 27, 2023

The Pakistani auto industry has been through a roller coaster ride in recent years. However, the easing of ban on imports has led to a resurgence in auto sales, signalling a positive shift for the industry, reports WealthPK. The automobile sales surged to 7,579 units in August 2023, posting a staggering 49% month-on-month (MoM) increase. However, on a year-on-year (YoY) basis, sales decreased by 36%.

The Pakistan Auto Manufacturers Association (PAMA) data shows that compared to the same period last year, car sales in the first two months (July-August) of the current financial year declined by 47% to 12,671 units. “Auto sales have recently resurged in Pakistan as a result of the government's decision to lift import restrictions on cars,” said Abdul Waheed Khan, a senior representative of the PAMA. “Prior to this positive development, the industry had been grappling with a decline in vehicle sales, primarily driven by a confluence of challenges,” he said. “First and foremost, the ever-increasing prices of cars have placed a significant strain on consumers' budgets.

The escalating production costs, coupled with inflationary pressures, pushed car prices to levels that were simply beyond the reach of many potential buyers. This, in turn, led to a shrinking customer base and dampened overall demand in the market,” the representative explained.

“Furthermore, the cost of auto financing became prohibitively expensive for a substantial portion of the population. High interest rates and stringent lending criteria deterred many prospective buyers from pursuing car loans, thus further stifling sales.

The limited purchasing power of consumers in the face of these financial barriers only exacerbated the situation,” he added. “However, a ray of hope emerged during July and August of 2023 when import restrictions on vehicles were lifted. As a result, vehicle sales reached their highest level since March 2023,” he said. “Although the auto industry still faces production shutdowns and operational issues, these sales figures are a positive sign for the industry.

 

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GWM's Pakistan KD Factory Rolls Out 3000th Haval H6 HEV​

By Lu Han
Dec 11, 2023

LAHORE,-In a recent development, the Great Wall Motors (GWM) Pakistan KD factory marked the production of its 3000th unit of the Haval H6 HEV, a significant achievement just one year after the commencement of operations. This milestone signifies GWM's position as the leader in the local new energy vehicle market within a remarkably short timeframe.

Launched in November 2022, the GWM Pakistan KD factory stands as a crucial overseas KD facility for GWM, following others in Ecuador, Malaysia, Tunisia, among other locations. With a planned annual production capacity of 20,000 units, the factory has successfully entered its first phase, assembling two SUV models, the Haval H6/H6 HEV, and the Haval JOLION.

The Haval H6 HEV, being the first locally assembled new energy vehicle in Pakistan, has quickly become a benchmark product in the local automotive market. It has played a pivotal role in boosting the penetration rate of new energy vehicles in the Pakistani passenger car market, rising from 0% last year to the current 2.3%.

According to data from the Pakistan Automotive Manufacturers Association (PAMA), it is anticipated that the total annual sales in the Pakistani passenger car market will be less than 100,000 units this year, reaching the lowest level in the past two decades.

 

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Auto sector in 2023: advent of EVs and hybrids in Pakistan​

Bilal Hussain

The year 2023 signaled a downward spiral for the auto sector. For about half the year, there were restrictions from the State Bank of Pakistan (SBP) regarding Letters of Credit to import parts that kept the supply side under pressure which then led to higher prices. Amid high interest rates, and inflation, demand remained on the lower side as well.

The industry faced LC issues from July 2022 till February 2023. It again faced government action – this time, the reasons were different.

In October and November, auto companies weren’t getting custom clearance for importing Completely Knocked Down units or auto parts because they failed to achieve the 2% export target, which they initially agreed with the government but were unable to achieve.

Sales in fiscal year 2023 dropped to around 120,000 units (for all passenger categories and imported used cars) – lowest since 2009.

Looking at the data on hand, sales were possibly the lowest ever over the course of two-decades in just the first 11 months of calendar year 2023 – sitting at just 76,401 units.

For perspective, volume of sales was 210,395 units for the same period in 2022.

Silver lining

Industry experts such as Sunny Kumar, Deputy Head of Research at Topline Securities, expect car sales to improve in 2024.

One of the reasons is the expectation that interest rates may go down substantially next year. Car financing may also pick up again.

Since car buying is a feel-good event, the income generated from the Pakistan Stock Exchange rally may also be attracted by the auto sector.

EVs’ manufacturing licenses: two, three wheelers take front seat in Pakistan

Auto sector pivots?

Fuel prices have gone up and inflation has caused the contraction of real income. Mobility cost is biting common people.

They are looking for cheap options and, in a sense, electric vehicles, especially in the two-wheel segment, have emerged as an option in the year 2023.

There has been tangible work done in the two- and three-wheel sector during the year, as 32 companies that have received manufacturing licenses under the Electric Vehicles (EVs) Policy 2020–2025 are all two and three-wheel manufacturers.

Amid the bleak outlook of the auto sector, a major auto sector player launched a 4th generation hybrid vehicle (HEV) Toyota Corolla Cross.

Meanwhile, another major player, Atlas Honda unveiled its electric scooter ‘BENLEY e’ during a ‘soft’ launch this year, showing a direction for the two-wheel segment.

Adopting fuel-efficient cars has been the need of the hour in the absence of a wide-scale network of public transport. Maybe, Pakistan is now more ready to adopt climate-friendly solutions and, in this endeavour, kills two birds with one stone.

 

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1950, Karachi ...

 

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1914, Karachi... First Car..

 

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1960's Karachi
Double Decker

 

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1982 Karachi ...

Morris Minor
https://en.wikipedia.org/wiki/Morris_Minor
Minor 1000
Morris Minor 1000
1960 Morris Minor 1000 2-door sedan
1960 Morris Minor 1000 2-door saloon
Overview
Production 1956–71; 847,491 produced
Assembly
Oxford, England
Birmingham, England
Victoria Park, Australia[15]
Dublin, Ireland
Body and chassis
Body style
2-door saloon
4-door saloon
2-door convertible
2-door estate
Powertrain
Engine
948 cc A-series I4
1,098 cc A-series I4
Series III

In 1956, the Minor received a major programme of updates intended to keep the car competitive into the 1960s. Where previously the Minor had been offered with a broad range of colours and trim options, the 'Minor 1000' (so named for its 948cc engine) shifted emphasis towards rationalisation of components to access improved economies of scale, and thus enabled increased production volumes to help the Minor retain a significant share of the small car market during a period where car ownership was becoming more commonplace.

The dawn of the motorway era necessitated the fitting of a new 948cc (57.9 cu in) variant of the BMC A-Series engine, elevating top speed from 63 mph to 75 mph, and reducing 0-60 mph acceleration from 52.5 secs to 31.3 secs.[22] Driving was further improved by a substantially revised gearbox, which incorporated taller ratios for more relaxed cruising speeds and a remote selector allowing a shorter gear lever and less ponderous gearchange action. This new engine and gearbox was the product of a broader engine policy at BMC, and had been developed for use in a range of their smaller vehicles, including the Austin A35, A40 Farina, and Austin-Healey Sprite/MG Midget, to maximise parts sharing and thus reduce production costs, servicing costs and consumer costs across the model range.

A series of changes to the body pressings for the roof/scuttle and bonnet panels yielded a large wraparound rear windscreen and one-piece curved front windscreen, which markedly improved visibility and lent a modernised appearance to the car at relatively small outlay.

Many of the 'luxury' items, such as leather trim, were replaced with more durable and cheaper materials, and over the course of the following years the range of available paint and interior colours was dramatically reduced. Various unique Minor trim items and components (such as light units and heaters) were also gradually replaced with ubiquitous items from the BMC range. This programme of changes succeeded in giving access to improved economies of scale to allow production to be ramped up. By the turn of the 1960s, over 100,000 Minors were being produced per year, compared to fewer than 50,000 per year a decade earlier.[23]

In 1961 the semaphore-style trafficators were replaced by flashing direction indicators. These were US-style red at the rear (using the same bulb filament as the brake lamp) and white at the front (using a second brighter filament in the parking lamp bulb) which was legal in the UK and many export markets at the time (such as New Zealand).

An upmarket car based on the Minor floorpan using the larger BMC B-Series engine was sold as the Riley One-Point-Five/Wolseley 1500 beginning in 1957: versions of this Wolseley/Riley variant were also produced by BMC Australia as the Morris Major and the Austin Lancer.

 

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1950's

 

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M-2

 

[Lulldapull]

I remember 7 years ago when I left Australia their entire auto industry got shut down. GM pulled out from making the Holden series and the Japs shut down their Toyota and Mitsubishi production. As a consequence, about 1/2 a million overall jobs got impacted and it was the end of the auto industry down under. These big MNC's determined that it ain't profitable manufacturing cars in Australia. Australia is far behind Iran or Turkey in technology/ manufacturing. They don't got nothing except coal and iron ore for export. All big business is run by a handful of multi-billionaires, total monopoly/ conflict of interest situation. Everything in Australia is very expensive, practically everything of value is imported and you pay a lot in taxes/ medicare/ rents/ housing/ insurance/ services. It's the same as that other total chutiya outfit Canada. Ain't worth living in these countries folks. Thank god I left that stupid place.

 

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[H1]BYD partners with MCPL for EV manufacturing in Pakistan[/H1]
By Tahir Ali | Gwadar Pro

Apr 5, 2024​

​

ISLAMABAD - BYD, a prominent player in the electric vehicle (EV) manufacturing world, has formed a joint venture (JV) with Mega Conglomerate Private Limited (MCPL) to establish showrooms in the initial phase, followed by the commencement of electric vehicles (EV) manufacturing operations in Pakistan.

The Board of Investment (BOI) Pakistan announced the development on Thursday, terming it "exciting news". As per BOI, the JV between BYD with MCPL, the principal shareholder of HUBCO, has been signed during the BYD Asia Pacific Dealer Conference event in Xi'an, China.

 

[Ghazi52]

[H3]Dewan Farooque Motors (DFML) starts EV production after EDB’s approval[/H3]
BR Web Desk
September 10, 2024

Dewan Farooque Motors Limited (DFML) said on Tuesday that it has commenced production of electric vehicle (EVs) at its assembly plant after receiving approval from the Engineering Development Board (EDB).

The listed company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“In continuation of our earlier letter dated July 23, 2024 regarding the physical verification of manufacturing facilities of Eco-Green Motors Limited (EGML) at the company’s assembly plant by the Engineering Development Board’s (EDB), the approval of which has been received and accordingly the production of electric vehicles has now been started at our assembly plant under the toll manufacturing agreement with our associated company EGML,” read the notice.

Following the development, DFML’s share price jumped to Rs52.3, a gain of Re0.91 or 1.8% at the time of this report.

Incorporated in Pakistan on December 28, 1998 as a public limited company, DFML is engaged in assembling, progressive manufacturing and sale of vehicles in Pakistan.

Back in June, DFML said it entered into a toll manufacturing agreement with ECO-Green Motors Limited (EGML) for manufacturing EGML’s Honri-VE.

The production of the vehicle was expected to commence in August, DFML shared in its notice back then.

“By the grace of Almighty Allah, we hereby announce that DFML has entered into a toll manufacturing agreement with ECO-Green Motors Limited (EGML) for manufacturing of EGML’s Honri-VE (200km and 300km range), thereby becoming the leading manufacturer of electric vehicles in Pakistan,” read the notice.

Under the toll manufacturing agreement between two companies, one company owns a design or idea for a product and supplies materials to the other to manufacture the product or parts of it.

In 2022, DFML said it entered into a Technology License Agreement (TLA) with Korea’s KIA Corporation to produce and assemble its vehicles in Pakistan.

 

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[H3]Auto sales increase 15% YoY in August amid mixed segment performance[/H3]
Bilal Hussain
September 10, 2024

Auto sales in Pakistan increased 15% year-on-year (YoY) in August 2024, as the total number of units sold in the said month stood 8,699, compared to 7,579 units in the same month of the previous year.

On month-on-month (MoM) basis, auto sales (cars, LCVs, vans, jeeps) rose 1% in August against 8,589 units sold in July 2024, according to the latest data released by the Pakistan Automotive Manufacturers Association on Tuesday.

“The YoY jump in overall auto sales can be attributed to a low base effect, as the industry faced significant challenges in the previous year,” Muhammad Abrar Polani, research analyst at AHL Research, said.

“These challenges included restrictions on opening LCs [letters of credit] and subdued auto demand, leading to widespread plant shutdowns,” Polani added.

The 1,300cc and above category recorded a strong MoM growth of 35%, with sales reaching 3,330 units in August.

The 1,000cc segment also performed well, showing a 37% MoM increase with 321 units sold.

However, the below-1,000cc category experienced a 12% decline, with sales dropping to 2,766 units, indicating consumer preference shifting towards higher-capacity vehicles.

Industry experts suggest future growth in the automotive sector will depend on a combination of policy support and macroeconomic stability.

“Potential monetary easing, along with stable car prices bolstered by a strong currency, could enhance auto financing and drive growth in the automotive sector,” said Osama Naeem, auto sector analyst at AKD Research.

However, seasoned analyst Mashood Khan emphasised that a significant recovery would not be possible without interest rates dropping to single digits.

“The auto sector cannot be fully revived unless interest rates drop to single digits, which is challenging under the current economic conditions,” he said.

In July, the central bank’s Monetary Policy Committee (MPC) reduced the key policy rate by 100bps, taking it to 19.5%.

The next MPC meeting is due on September 12 as analysts expect the State Bank to continue with its easing stance as slower inflation and improved macroeconomic indicators boost sentiment of a third-successive reduction.

Khan also pointed to a shift in consumer preference toward two-wheelers as a sign of the industry’s struggle.

“The government needs to support the four-wheeler segment with positive policies. Even if the policy rate drops to 17%, down by two percentage points from 19%, it won’t be enough to boost four-wheeler sales,” he said.

In the two-wheeler segment, sales rose 23% MoM, with Atlas Honda (ATLH) leading the charge, selling 90,483 units—a 29% increase from July.

Among the automakers, Indus Motors Company Ltd (INDU) stood out with a 28% MoM increase in its sales, totaling 2,129 units in August.

This growth was fueled by a 42% MoM increase in sales of its popular models like the Corolla, Yaris, and Corolla Cross. Sales of the Fortuner and Hilux models also rose by 1%.

 

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Sazgar Engineering Works Limited (SAZEW), a Pakistani auto manufacturer, on Monday announced its plans to launch New Energy Vehicles (NEVs) in the country.​

The listed company also plans to roll out the CKD [Completely Knocked Down] models of NEVs before the end of December 31, 2025, it informed in a notice to the Pakistan Stock Exchange (PSX).

“The Board of Directors (BoD) of the company has approved an expansion plan of the company which includes the expansion of existing paint shop, construction of new warehousing facilities, installation of solar system of 4-megawatt and construction, erection, installation of new manufacturing facilities for the local assembly of NEVs subject to the approval of relevant government regulatory authorities,” read the notice.

 

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Goodbye, Suzuki Bolan:
A legacy ends. 1988-2024

Suzuki Pakistan has discontinued the production of Bolan, also known as Carry Dabba, after a 36-year dominance in the Pakistani market. The company is slated to introduce Suzuki Every in the second week of October 2024, targeting the van segment.

 

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Founders of Japanese Auto Companies.

 

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BYD and Hubco Partner to Launch Pakistan’s First Electric Vehicle Assembly Plant​

September 22, 2024




Chinese electric vehicle (EV) giant BYD, backed by Warren Buffett, is set to expand into Pakistan through a partnership with Hub Power’s subsidiary, Mega Motor.

This collaboration aims to establish Pakistan’s first electric vehicle assembly plant by 2026, located near Karachi’s Port Qasim. Hubco CEO Kamran Kamal highlighted ambitions for Pakistan to become a key car exporter, with a focus on markets in Africa and South Asia. This marks BYD’s first foray into South Asia, following investment restrictions in India.

Pakistan’s Finance Minister, Muhammad Aurangzeb, emphasized the government’s push to transform the country into an export hub, targeting automotive exports. The BYD expansion is part of the China-Pakistan Economic Corridor (CPEC) initiative, further solidifying the growing Pak-China economic cooperation.

Chinese electric-car maker BYD’s expected expansion into Pakistan has raised hopes in the country that the Warren Buffett-backed company can help jump-start exports in the automotive manufacturing sector.

Pakistan’s biggest private electricity producer Hub Power (Hubco) said last month that its subsidiary Mega Motor was entering a partnership with the Tesla rival to set up the country’s first electric vehicle assembly plant by 2026.

BYD’s Pakistan plan would mark the company’s first venture into south Asia after being blocked in India by Prime Minister Narendra Modi’s government, which has restricted Chinese investment.

Hubco’s chief executive Kamran Kamal said in an interview with the Financial Times that the ultimate goal was for Pakistan to start exporting vehicles from the plant near Karachi’s Port Qasim.

“We have big ambitions to be the leading carmaker in this country by the end of the decade,” said Kamal. “For any industry in Pakistan to be competitive, they should be focused on the export market.”

Pakistan’s finance minister Muhammad Aurangzeb said the government was encouraging BYD to export to markets in Africa and south Asia, including Bangladesh and Sri Lanka. Trade between India and Pakistan has been reduced since 2019 after a security crisis between the two countries.

“We want that Pakistan becomes an export hub, period,” Aurangzeb said in a separate interview with the FT. “Korean brands are here, the Japanese brands have been here . . . but the reality is we haven’t been exporting.”

BYD said details of its Pakistan plans had yet to be formally announced and declined to comment further.

The company’s expansion into south Asia comes as it is also establishing factories in Turkey, Hungary, Thailand and Brazil. BYD has also been scouting locations for a new factory in Mexico.

The carmaker is expanding its manufacturing footprint beyond China as countries impose increasing tariffs on Chinese exports, including on EVs, solar panels and wind turbines.

Tu Le, founder of consultancy Sino Auto Insights, said the aggressive international expansion plans would help BYD export to fast-growing markets despite tariffs in the US and Europe.

But he warned that BYD should not expect the same “unfettered growth” the company has enjoyed in China as it learns to manage factories in different countries.

“Chinese companies are used to having a lot of control. What they are going to find is that due to labour laws, different work ethics, different cultures, they’re going to have a lot less control than they normally would,” he said.

Hubco is a joint venture partner for a number of Chinese power projects established under the China-Pakistan Economic Corridor, a $60bn infrastructure network that is part of Beijing’s Belt and Road Initiative.

The company has no prior experience manufacturing vehicles but it aims to use its extensive power generation network to set up EV charging infrastructure throughout the country of 240mn people, Kamal said.

The exact size of the investment and the types of models that will be assembled in the Karachi plant “are being discussed”, he said.

Hubco said it expected to sell 100,000 BYD plug-in hybrid and fully electric cars in Pakistan a year by 2030, representing about a quarter of total cars sold in Pakistan, according to the company’s estimates.

 

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Assemblers plan rolling out EVs, plug-in hybrids​

Aamir Shafaat Khan
October 13, 2024

KARACHI: In contrast to the introduction of the eagerly awaited locally assembled petrol-driven 660cc Suzuki Every Saturday after the discontinuation of the iconic Bolan, several new and existing players gear up to launch locally assembled plug-in hybrid and pure electric vehicles, including motorcycles.

MG Pakistan is all set to launch MG HS Plug-in Hybrid Vehicle (PHEV) in Q42024. This vehicle runs on a pure electric motor and a petrol engine. The battery can be charged on idle as well, unlike conventional hybrid vehicles where no external charging is required.

MG has been leading the introduction of innovation and specification in the otherwise conservative Pakistani market.

“MG HS PHEV will be the first completely knocked down (CKD) PHEV in Pakistan and its unveiling is planned in Pakistan Auto Parts Show 2024 to be held in Lahore in the last week of this month,” MG Pakistan General Manager Marketing Asif Ahmed told Dawn.

Suzuki launches much-anticipated successor of Bolan

He said that the MG HS, with 50 kilometres per litre mileage, is further expected to increase the market share of New Energy Vehicle (NEV), which currently stands at approximately 50 per cent in the Mid SUV segment.

MG HS has taken Pakistan by storm in 2021. The iconic British brand started producing CKD from its plant in Lahore in December 2022. MG claims to be the second-highest EV brand on Pakistani roads. The most battery-powered electric vehicle (BEV) in Pakistan is the Audi eTron.

Chief Executive Officer of eTurbo Motors, Sheikh Osama Nadeem, said the company is launching an electric motorcycle next week in Karachi.

“Our total investment in the project is Rs500 million at a six-acre land purchased for future plant expansion,” he said.

He said the company has strategically partnered with a foreign joint venture to bring advanced technology and expertise to our project without mentioning any details on foreign partners.

“We will share details shortly.”

The plant in the Site area is rolling out 300-400 e-motorcycles per month, and it can be expanded to 1,500-2,000 units per month by next year, he said, adding that more models in the production line have also been planned this year.

The new electric bike project carries 20-30pc localisation and “we plan to fully localise the product in coming years,” he said.

He claimed to have obtained a licence from the Engineering Development Board (EDB) for the local assembly and the operation meets all regulatory standard requirements for assembling electric bikes.

“Currently, we have over 50 employees working in our plant, and our production is increasing. We are also opening new positions, with plans to create over 150 jobs in the coming year,” Osama said.

On EV bike market saturation in the next one to three years, as around 30 companies are marketing e-bikes, he believed that the E-turbo EV motorcycle market still has significant growth potential despite the number of new entrants. “We focus on innovation, quality, and customer satisfaction, which we think will set us apart and sustain demand even as the market evolves,” he added.

He said charging infrastructure and public awareness are critical factors for EV adoption. “We are seeing progress with more stations being developed and increased awareness campaigns. With continued investment and government support, these barriers will significantly reduce in the next couple of years, accelerating EV motorcycle sales,” he added.

Dewan Farooque Motors Ltd (DFML) informed the Pakistan Stock Exchange on Friday that it has successfully assembled Honri EV under toll manufacturing. The first lot of EVs has been dispatched to Eco Green Motors Ltd.

Regal Automobiles will soon start assembling the country’s first electric SUV (Seres vehicles) at its Lahore plant after recently getting a license from the EDB. The formal production launch is expected by the end of this month.

Every’s launch

Pak Suzuki Motor Company Ltd (PSMCL) has launched locally assembled Every 660cc. The price of VX and VXR models is Rs2.749m and Rs2.799m, respectively, an official of PSMCL said.

A display of Every along with a test drive will be available on Sunday at authorised showrooms across the country.

It is not clear whether the company has introduced the latest version available in the world or an old model has been launched. However, as per an old practice, local assemblers usually roll out old models.

Published in Dawn, October 13th, 2024