Category: Automotive

PkRevenue provides stories related to automotive industry. We focus on auto policy of Pakistan. The coverage also includes sales of domestic manufacturing.

Rolls-Royce, Hyundai signs pact to lead advanced air mobility market

FARNBOROUGH: Rolls-Royce and Hyundai Motor Group on July 18, 2022 signed Memorandum of Understanding (MOU) to collaborate on bringing all-electric propulsion and hydrogen fuel cell technology to the Advanced Air Mobility (AAM) market.

The partnership will leverage Rolls-Royce’s aviation and certification capabilities and Hyundai Motor Group’s hydrogen fuel cell technologies and industrialization capability. Both companies share a vision of leading the way in the AAM market delivering battery-electric and fuel cell electric solutions to the Urban Air Mobility (UAM) and Regional Air Mobility (RAM) markets and advancing sustainable aviation.

The Memorandum of Understanding (MOU) between Rolls-Royce and Hyundai Motor Group includes five strategic aims:

• Collaborating on the technology development and requirements of power and propulsion systems for Hyundai’s Advanced Air Mobility Division.

• Collaborating on the industrialization of Rolls-Royce power and propulsion systems for the Advanced Air Mobility market.

• Development of electric propulsion systems based upon hydrogen fuel cells as an energy source for Hyundai’s RAM platforms.

• Collaborating to bring to market a joint fuel-cell electric propulsion system to the wider AAM market.

• Delivering a joint fuel-cell electric aircraft demonstration by 2025.

Supernal (the Company) revealed its initial eVTOL vehicle cabin concept at Farnborough International Airshow, providing the first look at how Hyundai Motor Group (the Group) is integrating automotive capabilities to develop the Advanced Air Mobility (AAM) market.

Supernal partnered with the Group’s design studios to create the cabin concept as the Company works to certify its eVTOL vehicle for commercial use in the United States starting in 2028 – and in the E.U. and U.K. shortly after. Beyond the vehicle, Supernal is collaborating with external partners and the Group’s more than 50 affiliates – which span automobiles, automotive parts, construction, robotics and autonomous driving – to responsibly co-create the expansive AAM value chain.

“In order for Advanced Air Mobility to become a wide-spread mode of transportation, every detail – from the passenger experience to regulations and infrastructure – needs to be addressed from the start and work in lockstep with one another,” said Jaiwon Shin, President of Hyundai Motor Group and CEO of Supernal.

“Leveraging Hyundai Motor Group’s mobility capabilities, Supernal is investing time and resources upfront to ensure the industry can scale to the masses in the coming decades and reach its exciting potential.” He added.

Harnessing Automotive Design

Supernal’s five-seat cabin concept provides clues to how the Company is harnessing automotive design processes and materials – while meeting commercial aviation’s highest safety standards – to optimize the AAM passenger experience and price-point. The design embodies biomimicry philosophy – a butterfly in this case – and the Company’s pillars of safety above all, human-centered design and environmental responsibility.

“Supernal is partnering with Hyundai Motor Group’s top automotive designers to develop our eVTOL vehicle for manufacturability and wide-spread public acceptance,” Shin added. “We are taking the time to create a safe, light-weight commercial eVTOL that provides our future passengers with the security and comfort they find in their own cars.”

The team of engineers and designers utilized the automotive industry’s reductive design approach to create the light-weight interior cabin, which is made of forged carbon fiber. Ergonomically contoured seats offer a cocoon-like environment for passengers. Deployable seat consoles mimic automobile center consoles and provide a charging station and stowage compartment for personal items. Grab handles built into the cabin doors and seatbacks assist with ingress and egress. A combination of lighting – including overhead lights inspired by automobile sunroofs – adjusts with the various stages of flight to emulate a “light therapy” effect. The cabin layout draws on automotive space innovation with a minimized bulkhead, which allows for generous headroom and package functionalities.

With sustainability as a priority, the cabin concept incorporates materials such as advanced recyclable carbon fiber reinforced thermoplastic, durable plant-based leather, recycled plastic fabric and responsibly sourced woods. The seat frame also utilizes excess raw material from the airframe manufacturing process.

“The Supernal eVTOL vehicle draws on the competence of the Hyundai Motor Group and the skillset of experienced automotive designers, which allowed us to develop a new air mobility concept that is not only safe and rational but also highly emotional,” said Luc Donckerwolke, Chief Creative Officer of Hyundai Motor Group.

Developing Air Mobility Beyond Urban Markets

The Group is leveraging its expansive mobility and mobility-enabling capabilities to develop a family of electric air vehicles, as well as the surrounding value chain.

Complementing U.S.-based Supernal’s battery-powered eVTOL vehicle designed for intra-city passenger journeys starting in 2028, the Group’s Korea-based division (the Division) focused on Regional Air Mobility is developing a hydrogen-powered mid-sized vehicle for regional – city-to-city – cargo and passenger journeys. The Division plans to launch service of its hydrogen vehicle in the 2030s.

Supernal and the Division are partnering with the Group’s manufacturing innovation teams across the globe to create a robust high-rate, high-quality AAM manufacturing process that will produce electric air vehicles at scale – at an increasingly affordable price-point – over the coming decades.

“Hyundai Motor Group is working to leverage synergies between automotive’s high-rate manufacturing capabilities and aerospace’s high certification standards to build the foundation for everyday use of passenger and cargo air vehicles,” Shin said.

The signing ceremony took place at Supernal’s booth at Farnborough Airshow and was attended by Warren East, CEO of Rolls-Royce, Grazia Vittadini, Chief Technology and Strategy Officer and Rob Watson, President of Rolls-Royce Electrical as well as Euisun Chung, Executive Chair of Hyundai Motor Group, Jaiwon Shin, President and Head of AAM Division of Hyundai Motor Group, and Jaeyong Song, Vice President of AAM Division of Hyundai Motor Group.

Jaiwon Shin, President of Hyundai Motor Group, said: “We are pleased to partner with Rolls-Royce to draw upon their aviation and certification expertise to accelerate the development of hydrogen fuel-cell propulsion systems. Hyundai has successfully delivered hydrogen fuel cell systems to the global automotive market and is now exploring the feasibility of electric and hydrogen propulsion technologies for aerospace integration. We believe this to be the key technology to support the global aviation industry’s goal to fly net zero carbon by 2050.”

Rob Watson, President, Rolls-Royce Electrical, said: “We are delighted to partner with Hyundai Motor Group which provides a valuable opportunity to leverage and build on the capabilities each company brings from the aerospace and automotive sectors. The Advanced Air Mobility Market offers great commercial potential, and this collaboration supports our joint ambitions to lead the way in the Advanced Air Mobility Market. It is also another demonstration of Rolls-Royce’s role in delivering the solutions that will enable passengers to travel sustainably and help deliver net zero carbon by 2050.”

The benefits of using a hydrogen fuel cell system in an all-electric aircraft propulsion system is that it is a zero-emission, silent and reliable on-board power source that enables scalability in power offerings as well as long distance flight range. Hyundai will work with Rolls-Royce to bring hydrogen fuel cells, storage systems and infrastructure to the aerospace markets, and advance this technology into Hyundai’s RAM vehicles and Rolls-Royce all-electric and hybrid-electric propulsion system offerings.

Last year, Rolls-Royce announced a pathway to net zero carbon emissions and its electrical technology is one way in which the company is helping decarbonise critical parts of the global economy. Rolls-Royce is committed to ensuring its new products will be compatible with net zero carbon operation by 2030 and all its products will be compatible with net zero carbon by 2050.

Hyundai Motor Group earlier this year announced its AAM business roadmap, which encompasses the UAM and RAM segments to offer eco-friendly air mobility solutions for people within and between cities. Hyundai Motor Group’s US-based Supernal unit is aiming to begin commercial services of UAM businesses in the US in 2028 while Hyundai Motor Group plans to launch RAM services in the 2030s.

July 19, 2022
Global car manufacturers agree to introduce electric mini-commercial vans

TOKYO, Japan: Leading global car manufacturers have agreed to work towards the market introduction of mini-commercial van electric vehicles (BEVs) in FY 2023 to achieve carbon neutrality.

In a statement issued on Tuesday, Suzuki Motor Corporation (Suzuki), Daihatsu Motor Co., Ltd. (Daihatsu), Toyota Motor Corporation (Toyota), and Commercial Japan Partnership Technologies Corporation (CJPT) announced that they have agreed to work towards the market introduction of mini-commercial van electric vehicles (BEVs) in FY2023 to achieve carbon neutrality.

READ MORE: Toyota unveils all new Crown for first time

Mini-commercial vehicles cover areas accessible only to them because of their small size and are important in supporting last-mile logistics. They have become widespread accounting for about 60% of the total commercial vehicle fleet, making them a type of vehicle capable of contributing significantly to the achievement of carbon neutrality if electrification advances.

However, a major issue in promoting the electrification of mini-commercial vehicles is the increasing burden on society as a whole, including the higher vehicle costs associated with electrification, the costs related to charging infrastructure, and the charging time (downtime: a period when vehicles and cargo are stopped).

READ MORE: Honda Motors to start pre-orders of ZR-V SUV by September 2022

It is under these circumstances, to realize an affordable mini-commercial van BEV that meets the usage needs of commercial customers, CJPT will participate in the planning, and Suzuki, Daihatsu, and Toyota will jointly develop a BEV system suitable for mini-commercial vehicles by combining Suzuki and Daihatsu’s know-how in manufacturing mini vehicles with Toyota’s electrification technology.

The mini-commercial van BEV developed by these four companies will be used by partners in social implementation projects in Fukushima Prefecture and Tokyo.

Suzuki, Daihatsu, Toyota, and CJPT will continue to promote efforts to practically achieve carbon neutrality through the provision of sustainable means of transportation.

July 19, 2022
Pakistan car sales surge 54 per cent in FY22

KARACHI: Pakistan car sales have surged by 54 per cent in fiscal year 2021/2022, according to data released on Friday.

The car sales – as reported by Pakistan Auto Manufacturers Association (PAMA) on Friday – increased to 279,267 units in the fiscal year 2021/2022 as compared with 181,397 units in the preceding year.

READ MORE: Toyota unveils all new Crown for first time

The rise in sales of domestically manufactured cars has been attributed to economic recovery and lower interest rate during the year.

Analysts at Topline Securities said Pakistan car sales (including sales of Non-PAMA members) clocked in at 33k units up by 24 per cent MoM primarily due to resolution of production issues and higher working days as compared to May-2022 due to Eid-ul-Fitr holidays. The same is up by 106 per cent YoY.

This takes FY22 car sales to 279,267 units up by 54 per cent YoY led by economic recovery and low interest rates.

READ MORE: Honda Motors to start pre-orders of ZR-V SUV by September 2022

Pak Suzuki (PSMC) and Hyundai Nishat recorded highest ever monthly sales of 16,009 units and 1,871 units in June 2022.

PSMC sales was up 31 per cent MoM in June 2022. All variant of company reported increase in a range of 37-94 per cent on MoM basis except for Wagon-R and Swift where sales were down by 5 per cent MoM and 4 per cent MoM respectively.

Similarly, Hyundai Nishat’s sales was up 9 per cent MoM led by increase in sales of Tucson 897 units (+40 per cent MoM) and Porter 283 units (+268 per cent MoM).

Indus Motors (INDU) posted increase of 7 per cent MoM to 6,309 units due to increase in sales of Corrolla & Yaris 4,453 units (+4 per cent MoM). Honda Atlas Car (HCAR) also recorded increase of 34 per cent MoM to 3,903 units in June 2022 led by increase in sales of City & Civic by 18 per cent MoM.

READ MORE: New tax rates on car registration from July 01, 2022

Amongst Tractors, Millat Tractors (MTL) recorded increase of 75 per cent MoM to 4,389 units and Al Ghazi Tractors (AGTL) of 3,201 units up 33 per cent MoM. This takes total tractor industry sales to 59k units, up 16 per cent YoY in FY22.

Pakistan bike sales were down by 4 per cent MoM and 9 per cent YoY in June 2022. This takes FY22 bike sales to 1.8mn units, down 4 per cent YoY.

Trucks & Buses sales were up 21 per cent MoM and 45 per cent YoY to 589 units in June 2022. This takes full year FY22 sales to 6,498 units, up 49 per cent YoY led by increased transportation activity.

READ MORE: SBP makes permission mandatory for motor car import

July 15, 2022
Toyota unveils all new Crown for first time

JAPAN: Toyota Motor Corporation on Friday unveiled its all new Crown. The four new models of Crown are Crown (Crossover Type), Crown (Sport Type), Crown (Sedan Type), and Crown (Estate Type).

The company will release the Crown (Crossover Type) as the first model during the fall of this year.

TOYOTA has unveiled the all new Crown for the first time in the world, and will release the Crown (Crossover type) as the first model around the fall of this year.

The Crown made its initial debut in 1955 as Toyota’s first mass production passenger vehicle created with Toyota’s own domestic technology. The DNA of “innovation and limit-pushing” that led to the creation of the first independently developed luxury car in the early postwar period has been passed down to successive models of Crowns for the past 67 years, always pursuing new values that are one step ahead of the times and loved by many customers.

However, the times have changed even faster, and the Crown has become unable to fully meet the diversifying needs of its customers, and its presence as a flagship vehicle has become less significant.

In designing the new Crown, the development team thoroughly reexamined what “Crown” is, and as a result of their pursuit of a “Crown for a new era,” they have created four completely new models. In addition to the Crossover type, a new style that combines a sedan and an SUV, the Sport offers a sporty driving experience with an enticing atmosphere and an easy-to-drive package. The Sedan is a new formal design that meets the needs of chauffeurs, and the Estate is a functional SUV with a mature atmosphere and ample driving space. The new series will be rolled out in about 40 countries and regions.

The details of the new Crown (Crossover type) are as follows.

Vehicle Outline

The “Crown” for the future reimagined from the ground up with a high-quality minimalist design

Exterior Design

The stylish, coupe-like silhouette is combined with elevated styling that conveys a sense of strength, achieving both fluidity and dynamism and expressing a completely new form of a flagship vehicle for a new era.

The headlights and taillights, connected from left to right in a single straight line, and the side view that expresses sophistication through surface variation without relying on character lines, combine to create a simple yet refined and majestic design.

Large-diameter tires that break with the conventional idea of a sedan have been adopted. By applying innovations to the body structure to create an underbody that extends outward close to the sides of the body and carefully examining the balance of the spaces between the body and the tires, we have created a powerful style that is neither a sedan nor an SUV with the sense of stability representative of an elevated sedan.

Interior Design

Horizontally integrating the display and operating equipment creates a functional layout that can be operated intuitively from any seat. The wrap-around form from the instrument panel to the doors also give a sense that all seats are special, enabling the driver to focus on driving and providing comfortable and enjoyable mobility for passengers.

Meticulous attention to every interior component, including the understated and welcoming decorations of WARM STEEL, an invitingly shaped and comfortable shift knob, seats that focus on instantly recognizable finishing and provide a sense of security when seated, and other features, helps create a space with a sense of quality and richness.

Color Design

In terms of body colors, the newly developed “Precious Bronze” and “Precious Ray” as well as other distinctive bytone colors are coordinated to express the new Crown’s transformation. A total of 12 body color and four interior color combinations offer a wide range of variations.

Effortless and dignified driving and a comfortable ride becoming of a Toyota flagship

2.4-liter Turbo Hybrid System

The hybrid system, which combines an inline 4-cylinder turbo engine that produces powerful torque even at low RPM, the latest eAxle electric powertrain that provides high driving torque, and a newly-developed bipolar nickel-hydrogen battery have been combined for the first time by Toyota. The hybrid system responds linearly to the operation of the accelerator by the driver creating a driving feel with a sense of comfortable acceleration.

2.5-liter Series Parallel Hybrid System

The Crown (Crossover type) is equipped with an optimized, high-efficiency hybrid system and a newly-developed bi-polar nickel-hydrogen battery, achieving class-leading fuel economy and quietness and further advancing the high-quality and smooth driving performance distinctive of the Crown.

Newly developed platform

Using a hip point higher than earlier sedans enabled through the adoption of large-diameter wheels makes entry and exit easier and allows excellent visibility. Additional space is provided above the head and to the front and rear to create a comfortable interior space with the sense that every seat is a first-class seat.

While the package prioritizes ease of entry and exit and driving, the TNGA platform provides a lightweight and well-balanced high-rigidity body. The use of McPherson struts in the front and a multi-link suspension in the rear also allows for solid straight-line stability characteristic of the Crown, agility, and a flat feeling that does not blur the line of sight. All these features along with a smooth ride with minimal vibration were pursued to achieve a comfort level that makes you want to stay in the car for a long time.

The most advanced safety and driving support systems provide reassuring and convenient driving

Toyota Safety Sense

Toyota Safety Sense, the latest active safety package with advanced and improved functions, is standard on all Crown grades. The range of accidents it can respond to has been expanded even further, enabling enjoyable driving with peace of mind.

Toyota Teammate

The new Crown (Crossover type) is equipped with Toyota Teammate, a suite of driver-assistance technologies. Advanced Drive (support during traffic congestion), which supports safe driving in traffic congestion, Advanced Park (with remote function), which automatically parks and exits from a parking space in a variety of parking situations and can be operated remotely as well, and other safety and convenient advanced functions are included.

The new Crown (Crossover type) will also start being offered via the KINTO^*4 car subscription service. When ordered through KINTO, automobile insurance, periodic maintenance, and various other vehicle expenses are included in the monthly payments. Customers, corporations, and individuals can sign up either online or at a dealer to enjoy easy access.

In addition, if the “Cancellation Fee Free Plan” is selected as the payment method, the cancellation fee can be reduced to zero and the vehicle usage can be continued after the expiration of the initial three-year contract period by paying a predetermined application fee. The CROSSOVER G “Advanced Leather Package” monthly fee starts at 89,100 JPY (including tax).

July 15, 2022
Honda Motors to start pre-orders of ZR-V SUV by September 2022

TOKYO, Japan: Honda Motor Co., Ltd launched a teaser of ZR-V, all new SUV on July 14, 2022, which will be sale in Japan.

The company launched a teaser page on their official website to share initial information on the ZR-V.

Honda will release more details about the model in stages, including its plan to begin taking pre-orders in September of this year.

READ MORE: Honda Cars declares 40% surge in annual profit

According to details, the company launched a teaser page on its company website to share initial information on the ZR-V, an all-new SUV scheduled to go on sale in Japan this fall. Honda will release more details about the model in stages, including its plan to begin taking pre-orders in September of this year.

Based on the grand concept of “Unleash your potential,” the all-new ZR-V was developed as a model to uplift the spirit of customers, like a favorite “special day” piece of clothing, and bring out their individuality. Key features include beautiful and sophisticated design, developed under the key words “glamorous & elegant,” and dynamic performance, achieved with a goal to realize driving at the will of the driver.

READ MORE: Honda Cars posts Rs928 million quarterly profit after tax

These attributes will enable the driver to enjoy the vehicle with more confidence and in a relaxing manner, a value new to SUV models.

All-new ZR-V adopts smart and elegant design which makes this model fit well in urban environments. The exterior design features flowing proportions characterized by large, smooth surfaces that flow from front to rear.

The design of the front-fascia features a vertical grille, designed in concert with surrounding areas, and sharp-looking, wide-set headlights that flow horizontally. These features create a highly sophisticated expression, yet with stature and a strong presence. The rear of the body is shaped to emphasize the vehicle’s wide tread by adding volume around the bottom of the body, with a smooth, upswept look.

The interior design realized a spacious cabin by adopting an instrument panel that stretches out horizontally in a linear fashion. Moreover, the interior design features a functional and precise finish on all parts to accentuate the beauty of the form, creating a high-quality interior space that is one class above the competition. In addition, a high-deck center console separates the front seats to create personal space for the driver and front passenger.

READ MORE: Honda Cars declares 82 percent decline in annual profit

By realizing both a low, stable driving position and a view of the road with great visibility, the packaging design enhanced the ease of driving and sense of oneness the driver will feel with this vehicle.

In addition to a wide, horizontal forward field of vision, the rear view was designed to make it easier for the driver to recognize objects behind the vehicle, including vehicles and pedestrians, thereby pursuing excellent visibility while driving.

As with the front seats, the hip point of the rear seats was set low to allow greater freedom for the end point of the roof design, resulting in both a sleek roof line and enhanced aerodynamic performance.

Moreover, a variety of user-friendly storage spaces are provided, ensuring excellent utility to meet various customer needs.

The hybrid model of the all-new ZR-V will be the first Honda SUV to be equipped with the Sports e:HEV that combines a 2.0-liter direct injection engine that debuted on the Civic e:HEV and the advanced 2-motor hybrid system (e-CVT). The all-new ZR-V e:HEV will offer a high-quality, exhilarating and one-class-above driving experience in various driving situations including driving on city and suburban roads, highways and winding roads.

READ MORE: Atlas Honda reports 73% decline in after tax profit

The all-new ZR-V also will be available as a gasoline-powered model equipped with a 1.5-liter turbo engine with CVT, which offers highly-responsive and sporty driving.

Both hybrid and gasoline models offer a real-time AWD variation, which enables customers to drive on snowy roads with greater peace of mind by realizing outstanding performance in making turns and climbing up snowy roads.

Starting on Saturday, August 13, 2022 (Japan time), Honda will hold pre-launch showcasing of the production models of all-new ZR-V at various locations in Japan. Please visit and enjoy an initial look at the highly-sophisticated ZR-V.

・August 13-14, 2022: The “BIGMAN” square at Hankyu Umeda Station, Osaka, Japan
・August 20-21, 2022: The event space at Tokyo Station (near the Yaesu Central Exit)
・August 27-28, 2022: The JR Gate Tower at Nagoya Station, Aichi, Japan

July 14, 2022
New tax rates on car registration from July 01, 2022

KARACHI: The new rates of advance tax on registration of motor cars have been notified through Finance Act, 2022.

According to PwC A. F. Ferguson & Co. the new rates of advance tax on registration of the motor vehicles are as follows:

READ MORE: Finance Act 2022 notifies tax rates on disposal of securities

Engine Capacity Up to 850cc: old rate Rs. 7,500: new rate Rs. 10,000

Engine Capacity 851cc to 1,000cc: old rate Rs. 15,000: new rate Rs. 20,000

Engine Capacity 1,001cc to 1,300cc: old rate Rs. 25,000: new rate Rs. 25,000

Engine Capacity 1,301cc to 1,600cc: old rate Rs. 50,000: new rate Rs.50,000

Engine Capacity 1,601cc to 1,800cc: old rate Rs. 75,000: new rate Rs. 150,000

READ MORE: Finance Act 2022 revises tax rates for salaried persons

Engine Capacity 1,801cc to 2,000cc: old rate Rs. 100,000: new rate Rs. 200,000

Engine Capacity 2,001cc to 2,500cc: old rate Rs. 150,000: new rate Rs. 300,000

Engine Capacity 2,501cc to 3,000cc: old rate Rs. 200,000: new rate Rs. 400,000

Engine Capacity Above 3,000cc: old rate Rs. 250,000: new rate Rs. 500,000

Where engine capacity is not applicable and value of vehicle is Rs. 5 million or more: old rate Nil: new rate 3 per cent of the import value (as increased by sales tax, customs duty and FED) or invoice value in case of locally manufactured vehicle.

READ MORE: Proposal of final tax regime for commercial importers rejected

The Finance Act, 2022 has also imposed advance tax of Rs. 20,000 on transfer of motor vehicles of unspecified engine capacity (e.g. electric vehicles) having value of Rs. 5 million or more. The said rate of Rs. 20,000 shall be reduced by 10 per cent each year from the date of first registration in Pakistan.

For the purposes of tax collection under section 231B, the definition of ‘motor vehicles’ has been amended and now defined to include car, caravan automobiles, jeep, limousine, pickup, sports utility vehicle, trucks, vans, wagon and any other automobile excluding:

READ MORE: Mechanism revamped for tax dispute resolution

(i) a motor vehicle used for public transportation, carriage of goods and agriculture machinery;

(ii) a rickshaw or a motorcycle rickshaw and

(iii) any other motor vehicle having engine capacity upto 200cc.

July 11, 2022
SBP makes permission mandatory for motor car import

KARACHI: The State Bank of Pakistan (SBP) on Tuesday made it mandatory for banks to take prior permission for making transactions related to import of motor cars in Completely Knocked Down (CKD).

The SBP issued a circular to implement the decision. The central bank invited attention of banks to EPD Circular Letter No. 9 dated May 20, 2022 relating to import of goods.

READ MORE: Pakistan car sales climb up by 50% in 11 months

In this regard, the list of goods for which Authorized Dealers are required to seek prior permission from Foreign Exchange Operations Department (FEOD), SBP-BSC for initiating the import transaction, has been updated.

Henceforth, Authorized Dealers shall be required to seek prior permission from FEOD, SBP-BSC before initiating transactions for import of goods listed in the enclosed Annexure.

READ MORE: Pakistan massively increases taxation on motor vehicles

All other instructions on the subject shall remain unchanged. The banks have been advised to bring the same to the knowledge of all the concerned and ensure meticulous compliance of the above and other applicable regulations on the subject.

Authorized Dealers are especially instructed to bring these instructions to the knowledge of their customers and advise them to approach the bank before initiation of import transaction of any item covered under this circular letter.

READ MORE: Pakistan allows conditional import of CBU vehicles

It is important to note that the government on May 19, 2022 imposed ban on luxury and non-essential items in order to discourage outflow of dollars.

The import ban was imposed on only motor vehicles Completely Built Unit (CBU). However, the circular of the SBP has made the CKD motor cars import subject to prior approval.

READ MORE: Honda Cars declares 40% surge in annual profit

July 6, 2022
Pakistan car sales climb up by 50% in 11 months

KARACHI: The sales of locally assembled cars in Pakistan have surged by 50 per cent during 11 months (July – May) of 2021/2022 as compared with the same period of the last fiscal year, according to data released on Monday.

The car sales climbed up to 250,888 units in first 11 months of the current fiscal year as compared with 167,647 units in the corresponding months of the last fiscal year.

READ MORE: Pakistan massively increases taxation on motor vehicles

Analysts believed the surge in sales of locally assembled cars in 11 months to macroeconomic recovery.

Pakistan car sales (including sales of Non-PAMA members) clocked in at 27000 units, which is almost flat Month on Month (MoM) in May 2022 amid higher car prices, and Eid holidays at the start of month. The same is up by 46 per cent YoY.

Analysts at Topline Securities believe economic slowdown, increase in interest rates and further tightening of financing requirements by SBP will significantly impact car sales moving ahead.

READ MORE: Pakistan allows conditional import of CBU vehicles

Hyundai Nishat posted strong numbers registering an increase of 33 per cent MoM led by increase in sales of Elantra (+148 per cent MoM) and Sonata (+37 per cent MoM).

Honda Atlas Car (HCAR) recorded second highest increase of 11 per cent MoM to 2,910 units in May-2022 led by increase in sales of City & Civic by 18 per cent MoM. Similarly, Indus Motors (INDU) also posted increase of 2 per cent MoM due to increase in sales of Corrolla & Yaris by 4 per cent MoM.

Pak Suzuki (PSMC) was the only player which reported decline of 3 per cent MoM to 12,212 units in May-2022. All variant of company reported decline on MoM basis except for Wagon-R and Alto where sales were up by 24 per cent MoMand 9 per cent MoM respectively.

READ MORE: Honda Cars declares 40% surge in annual profit

Amongst Tractors, Millat Tractors (MTL) recorded increase of 12 per cent MoM while Al Ghazi Tractors (AGTL) recorded decline of 8 per cent MoM.

Pakistan bike sales were down by 2 per cent MoM while remained flat on YoY in May-2022. This takes 11MFY22 bike sales to 1.7mn units, down 4 per cent YoY.

Trucks & Buses sales were up 3 per cent MoM and 23 per cent YoY in May-2022. This takes 11MFY22 sales to 5,909 units, up 50 per cent YoY led by increased transportation activity.

READ MORE: SBP cuts car loan tenure to three years

June 13, 2022

Pakistan massively increases taxation on motor vehicles

ISLAMABAD: Pakistan has massively increased the amount of tax on purchase of motor vehicles from July 01, 2022.

The country presented its federal budget 2022/2023 on June 10, 2022 and took various taxation measures to boost revenue collection.

Finance Minister Miftah Ismail while presenting the budget stated that in continuation of our policy to shift the burden of tax on the rich class, advance tax on motor vehicles exceeding 1600cc is proposed to be increased.

Furthermore, advance tax shall also be collected at the rate of 2 per cent of the value in cases of high value hybrid and electric vehicles. Additionally, the rate of tax for non-filers shall be enhanced to 200 per cent from the current 100 per cent.

Accordingly, the Finance Bill, 2022 proposed the following new rates of advance tax on registration of motor vehicles from July 01, 2022:

S.No	Engine Capacity	Tax
(1)	(2)	(3)
1.	Upto 850 cc	Rs.10,000
2.	851cc to 1000cc	Rs.20,000
3.	1001cc to 1300cc	Rs.25,000
4.	1301cc to 1600cc	Rs.50,000
5.	1601cc to 1800cc	Rs.150,000
6.	1801cc to 2000cc	Rs.200,000
7.	2001cc to 2500cc	Rs.300,000
8.	2501cc to 3000cc	Rs.400,000
9.	Above 3000cc	Rs.500,000

According to the Finance Bill, 2022, provided that in cases where engine capacity is not applicable and the value of vehicle is Rupees five million or more, the rate of tax collectible shall be 3% of the import value as increased by customs duty, sales tax and federal excise duty in case of imported vehicles or invoice value in case of locally manufactured or assembled vehicles.”

It further said: “Provided that the tax required to be collected under section 231B shall be increased by two hundred percent of the rate specified in First Schedule in case of persons not appearing in the active taxpayers’ list.”

The existing rates of advance tax on motor vehicles are (for filers and it will increase by 100 per cent in case of non-filer of income tax returns):

1. upto 850cc: Rs. 7,500

2. 851cc to 1000cc: Rs. 15,000

3. 1001cc to 1300cc: Rs. 25,000

4. 1301cc to 1600cc: Rs. 50,000

5. 1601cc to 1800cc: Rs. 75,000

6. 1801cc to 2000cc: Rs. 100,000

7. 2001cc to 2500cc: Rs. 150,000

8. 2501cc to 3000cc: Rs. 200,000

9. Above 3000cc: Rs. 250,000]

June 13, 2022

Pakistan allows conditional import of CBU vehicles

ISLAMABAD: Pakistan has allowed conditional import of Completely Built Unit (CBU) motor vehicles, which have been banned through SRO 598(I)/2022.

The country on May 19, 2022 banned import of luxury and non-essential items in order to save foreign exchange and support the local currency, which depreciated massively.

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Through SRO 598(I)/2022 issued May 19, 2022, the ministry of commerce imposed ban on CBU vehicles which are importable under 49 tariff lines.

However, the ministry of commerce clarified that prohibition of import would not apply on import of CBU vehicles if the imports in Pak Rupee (PKR) or imports through barter mechanism by land routes.

The ministry of commerce on May 21, 2022 issued a press release stating that in order to address the balance of payments (BOP) situation in the country resulting from the increase in current account deficit (CAD) during the first 10 month of the current FY-22, import of certain luxury and non-essential items has been prohibited, vide SRO 598(I)/2022 dated 19th May, 2022.

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However, to address the concerns of certain business quarters with regard to the implementation of the said SRO, it is clarified that in terms of proviso to the paragraph-4 of the Import Policy Order, 2022, the imports where Bill of Lading (B/L) or irrevocable Letter of Credit (L/C) was issued or established prior to the notification of the SRO 598(I)/2022 dated 19.05.2022 shall be exempt from the operation of the SRO.

Hence, imported goods for which B/L or irrevocable L/C was established prior to 19th May, 2022 shall not be subject to the prohibitions contained in the said SRO.

Moreover, the business community and the general public are invited to share their concerns, proposals or any anomalies with respect to the said SRO at [email protected].

June 2, 2022