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Category: Automotive

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

  • Suzuki Motors warns plant shutdown in Pakistan

    Suzuki Motors warns plant shutdown in Pakistan

    KARACHI: Suzuki Motors Co. Ltd. on Thursday warned shutting down its production plant in Pakistan due to import restrictions.

    In a communication sent to Pakistan Stock Exchange (PSX), the auto manufacturer said that State Bank of Pakistan (SBP) had introduced a mechanism for prior approval for import under HS Code 8703 category (including CKD) vide circular No. 09 of 2022 dated May 20, 2022.

    READ MORE: Indus Motors rebuts plant shutdown reports

    “Restrictions had adversely impacted clearance of import consignments of the company from the ports which might result in shutdown of the plant in near future,” the company said, adding that Pak Suzuki has stopped bookings of its products since July 01, 2022.

    The company further clarified that at present it had not plan to shut down the plant. “The production schedule of the company and any non-production days remain contingent on a number of external factors,” it said.

    READ MORE: Toyota Indus Motors offers 100% refunds on booking cancellation

    The company is actively monitoring its production and operations and is closely working with the government of Pakistan and the central bank to alleviate the present challenges.

    A day earlier, Indus Motors Company– the manufacturers of Toyota cars in Pakistan, also issued a statement in this regard.

    READ MORE: Toyota lowers July production in Japan

    The IMC said that the auto sector was facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

    “The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the IMC said.

    The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

    READ MORE: COVID-19 cases reported at Toyota work sites

  • Toyota Indus Motors offers 100% refunds on booking cancellation

    Toyota Indus Motors offers 100% refunds on booking cancellation

    KARACHI: Toyota Indus Motors on Wednesday announced to refund 100 per cent amount and mark-up on booking cancellation.

    In a statement issued by Indus Motor Company, the company said that it is facing unprecedented difficulties in its operations due to factors beyond the Company’s control.

    The company further stated that we will continue to do our utmost to facilitate and support our customers during these difficult times.

    READ MORE: Toyota lowers July production in Japan

    Taking the economic challenges and uncertainty into consideration, customers who wish to cancel their order bookings will be refunded 100 per cent of the deposited amount along with a mark-up payment.

    Mark-up shall be paid from the date of receipt of payment by the Company to the date of cancellation of the order, without any deduction of administrative charges.

    In light of this uncertainty, the tentative delivery timelines mentioned in the PBO for pending orders are being provisionally pushed back by at least 3 months. The price prevailing at the time of delivery shall continue to be applicable.

    READ MORE: Indus Motors rebuts plant shutdown reports

    We extend our sincere apologies to all the customers who are facing delays with their orders due to these unforeseen circumstances and would like to reassure our valued customers that we are working closely with the Government and the regulatory authorities to minimize the delay as much as possible.

    The unforeseen devaluation of the Pakistani Rupee, coupled with the Government restrictions, including the LC approval constraints rendering it impossible to import CKD kits without prior permission, and the continuing financial instability have led to a force majeure situation.

    Due to the current conditions, IMC’s production has been radically disrupted and we are unable to produce the requisite units as per full capacity, resulting in the delay in tentative delivery schedules.

    We are presently unable to foresee how long these and other external factors will persist, and cannot rule out the possibility of disruptions to manufacturing in the near future.

    READ MORE: COVID-19 cases reported at Toyota work sites

  • Toyota lowers July production in Japan

    Toyota lowers July production in Japan

    Toyota Motor Corporation has announced a downward revision of its production forecast for July 2022, attributing the adjustment to an ongoing parts shortage exacerbated by the impact of the COVID-19 pandemic.

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  • Indus Motors rebuts plant shutdown reports

    Indus Motors rebuts plant shutdown reports

    KARACHI: Indus Motors Company Limited (IMC), the manufacturer of Toyota motors in Pakistan, on Wednesday strongly rebuts the news reports about complete shutdown of its plants.

    In a communication sent to Pakistan Stock Exchange (PSX), the company said IMC acknowledged the auto sector is facing unprecedented difficulties in its operations due to ongoing economic challenges and factors beyond the control of automobiles manufacturers.

    READ MORE: COVID-19 cases reported at Toyota work sites

    “The unprecedented devaluation of Pakistan Rupee (PKR), coupled with restrictions imposed by the State Bank of Pakistan (SBP) regarding prior LC approval for Completely Knocked Down (CKD) imports and continuing financing instability has radically impacted the auto industry,” the company said.

    The company clarified that as of today (July 27, 2022), there are no plans fixed for complete plant shutdown for more than two weeks in the month of August 2022.

    READ MORE: Hyundai, Kia sign pact to develop mobility to explore moon

    “The production schedule of the company and any non-production days remain contingent on a number of external and variable factors,” the company said.

    The company is actively monitoring its production and operations, and is closely working with the government and the SBP to alleviate the present challenges.

    The company in its communication said that in the event that there is any material update regarding the aforesaid matter, it will be timely communicated to the PSX as per the requirement of PSX regulations.

    READ MORE: Hyundai announces second quarter financial results

  • Hyundai, Kia sign pact to develop mobility to explore moon

    Hyundai, Kia sign pact to develop mobility to explore moon

    SEOUL, Korea: Hyundai Motor and Kia Corporation on Wednesday signed agreements with six Korean research institutes to develop mobility solutions to explore the surface of the moon.

    Hyundai Motor and Kia, who have pioneered endless possibilities for mobility expansion through innovative technologies such as robotics and Advanced Air Mobility (AAM), are now expanding their vision beyond the bounds of Earth and into space.

    READ MORE: COVID-19 cases reported at Toyota work sites

    The announcement follows Korea’s successful launch of a domestically produced rocket in June.

    Yong Wha Kim, Executive Vice President, and Head of R&D Planning & Coordination Center of Hyundai Motor and Kia said “We have taken the first step towards transforming our vision for robotics and the concept of Metamobility into reality.”

    “We will expand the scope of human movement experience beyond traditional means of transport and beyond the bounds of Earth to further contribute to the progress of humankind and help create a better future.” He added.\

    READ MORE: Honda Cars declares 29% fall in quarterly profit

    The signing ceremony held in Korea was attended by Chung Kook Park, President and Head of R&D Division of Hyundai Motor and Kia as well as top officials from the six research institutes: Korea Atomic Energy Research Institute (KAERI); Korea Aerospace Research Institute (KARI); Korea Astronomy and Space Science Institute (KASI); Korea Automotive Technology Institute (KATECH); Korea Institute of Civil Engineering and Building Technology (KICT); and Electronics and Telecommunications Research Institute (ETRI).

    With collaboration expected to start as early as August, the consultative body will define the concept of lunar exploration mobility and major core technologies while developing and reviewing specific strategies and implementation measures to operate on the moon. Hyundai Motor and Kia will support the consultative body with their smart mobility technologies.

    READ MORE: Honda to slash production on supply constraints

    Under the multilateral research agreement, the participants from the private and government sectors will integrate their knowledge and capabilities to significantly advance their existing technologies and engineer new solutions for moon exploration mobility. Expertise will be brought to bear across numerous areas, including exploration equipment, software for mobility operation and remote communication functionality.

    With no air, extreme temperatures and countless craters and coatings of lunar dust composedof sharp and abrasive particles, the moon’s surface is an exceptionally harsh environment. While it poses significant challenges to the development of surface exploration mobility, it also provides the ultimate proving ground and will deliver invaluable lessons for Hyundai and Kia to further accelerate the delivery of smart and sustainable mobility solutions on earth.

    READ MORE: Suzuki starts producing outboard motors with plastic collecting device

    Hyundai and Kia have formed an internal consultative body with key personnel for the development and operation of lunar surface mobility. Resources will be brought to bear from Hyundai and Kia’s Robotics Lab in charge of robot development. Hyundai and Kia will also collaborate on software and hardware design and interpretation, space environment response technology, and special equipment for conducting lunar exploration missions.

    The multilateral agreement to develop mobility for exploring the moon’s surface represents a seminal moment in the history of Hyundai Motor and Kia that expands their vision for future mobility, including Robotics and AAM, to areas beyond the Earth. Hyundai and Kia also expect to secure proprietary technologies for future mobility businesses in the process of the new lunar exploration mobility robotics development. 

    In January, Hyundai Motor announced its robotics vision of ‘Metamobilty’ to help overcome the limitations of movement at CES 2022, which featured a video of Boston Dynamics’ robot, named ‘SPOT’, exploring outer space. 

    READ MORE: Hyundai announces second quarter financial results

  • COVID-19 cases reported at Toyota work sites

    COVID-19 cases reported at Toyota work sites

    Takaoka Plant in Toyota City, Aichi Prefecture, Japan: Toyota Motors Corporation on Tuesday announced COVID-19 cases reported at its work sites.

    In a statement the company said that this news may cause to people in the surrounding regions.

    The virus is an issue that has the potential to affect all Toyota locations and we are continuously working to further enhance our communication and health checks with staff at all locations.

    “Toyota is actively implementing measures to prevent the further spread of the virus and remain committed to provide timely updates as the situation requires,” the company added.

    The company shared the following information:

    Announced on July 26, 2022

    Location, Worksite

    Takaoka Plant in Toyota City, Aichi Prefecture, Japan

    Type of worker

    Line workers (a male in his 20’s, two males in their 30’s, a male in his 40’s, a female in her 30’s.)

    Affect to production operation

    Suspended operations on production line #1 at Takaoka plant for the second shift on July 26.

    Date tested positive

    July 24 and 25, 2022

    Last date at work

    July 23, 2022

    Date work site was disinfected

    July 25 and 26, 2022

    Announced on January 20, 2022

    Location, Worksite

    Tsutsumi Plant in Toyota City, Aichi Prefecture, Japan

    Type of worker

    Line workers (4 males each in their 20’s, 30’s, 40’s and 50’s.)

    Affect to production operation

    Suspended operations on production line #1 at Tsutsumi plant for the second shift on January 20.

    Date tested positive

    January 17, 18, and 19, 2022

    Last date at work

    January 17, 2022

    Date work site was disinfected

    January 17, 18, and 19, 2022

    Announced on January 19, 2022

    Location, Worksite

    Tsutsumi Plant in Toyota City, Aichi Prefecture, Japan

    Type of worker

    Line workers (ten males in 20’s, one male in 30’s, and three males in 40’s.)

    Affect to production operation

    Decided to suspend operations on production line #2 at Tsutsumi plant for the first shift from January 19 to 22.

    Date tested positive

    January 18 and 19, 2022

    Last date at work

    January 18 and 19, 2022

    Date work site was disinfected

    January 18 and 19, 2022

    Location, Worksite

    Tsutsumi Plant in Toyota City, Aichi Prefecture, Japan

    Type of worker

    Line workers (eight males in 20’s and 40’s.)

    Affect to production operation

    Production line #2 at Tsutsumi plant halted operation for the first shift on January 19.

    Date tested positive

    January 18, 2022

    Last date at work

    January 18, 2022

    Date work site was disinfected

    January 18, 2022

  • Honda Cars declares 29% fall in quarterly profit

    Honda Cars declares 29% fall in quarterly profit

    KARACHI: Honda Atlas Cars (Pakistan) Limited on Tuesday announced a sharp decline of over 29 per cent recorded in its net profit for the quarter ended June 30, 2022.

    READ MORE: Honda to slash production on supply constraints

    The company declared Rs658.2 million profit after tax for the quarter ended June 30, 2022 as compared with Rs928.22 million in the same quarter a year ago.

    Honda Atlas Cars (Pakistan) Limited announced earnings per share (EPS) at Rs4.61 for the period under review as compared with EPS of Rs6.5 announced for the same quarter a year ago.

    READ MORE: Suzuki starts producing outboard motors with plastic collecting device

    The board of directors of the company in their meetings held on July 26, 2022 approved the results and recommended no cash dividend, bonus shares or right shares, according to financial results submitted to the Pakistan Stock Exchange (PSX).

    According to the financial results, the company declared sales of Rs30.24 billion for the quarter ended June 30, 2022 as compared with Rs21.764 billion in the same quarter a year ago.

    READ MORE: Hyundai announces second quarter financial results

    The cost of sales increased to Rs28.33 billion for the quarter ended June 30, 2022 as compared with Rs20.17 billion in the same quarter a year ago.

    This resulted in gross profit of the company at Rs1.92 billion as compared with same quarter previous year at Rs1.59 billion.

    The overall expenses of the company rose to Rs821 million for the quarter ended June 30, 2022 as compared with Rs231.25 million in the same quarter of the last year.

    READ MORE: Honda unveils all-new Civic Type R

  • Gwadar customs auctions motor vehicles on July 28, 2022

    Gwadar customs auctions motor vehicles on July 28, 2022

    KARACHI: Customs Collectorate, Gwadar has announced auction of motor vehicles that will be held on July 28, 2022 at Custom House, Gaddani.

    READ MORE: Peshawar Customs announces auction of motor vehicles on July 26, 2022

    The Collectorate will auction the following vehicles:

    1. Toyota Mark-X Car, Reg. No. AFR-2020, Chassis No. GRX121-1002780, Engine No. 3GR-FSE, Model: 2004.

    2. Mitsubishi Pajero, Reg No. JAR-248, Chassis No. LJ78-00151955, Engine No. –TE.

    3. Pajero, Reg No. JAA-983, Chassis No. CL0048VGJ400698.

    4. Hino Truck (06-Wheeler), Reg No. TTB-491, Chassis No. AK176-45387

    READ MORE: MCC Gwadar to auction motor vehicles on July 18, 2022

    5. Hino Truck (06-Wheeler), Reg No. TKN-647, Chassis No. FE8JLF-10064

    6. Hilux Surf, Reg No. BC8774, Chassis No. VZN215-0003887, Engine No. 5VZ-FE3378(3400CC), Model: 2003

    7. Corolla Axio Car, Reg No. AFT-789, Chassis No. NZE1G1-6127020, Model 2010

    8. Toyota Corolla Axio Car, Reg No. AME-854, Chassis No. NZE141-6110051, Model. 2008.

    9. Toyota Land Cruiser, Reg No. BD-7777, Chassis No.UZJI00-0145693, Model. 2003.

    READ MORE: Customs to auction NDP vehicles on June 8, 2022

    10. Toyota Hilux Surf, Reg No. 2BB-4433, Chassis No. VZN215-0004937, Model: 2003.

    11. Toyota Land Cruiser, Reg No. ABB-785, Chassis No. UZJI00-0154840, Model. 2005.

    12. Toyota Crown Car, Reg No. AFR-022, Chassis No: GRS182-0011883, Model: 2004.

    13. Daihatsu Mira Car, Reg No. BAP-403, Chassis No. L2758-2046046, Model: 2008.

    READ MORE: Lahore Customs to auction vehicles on May 26, 2022

    14. Toyota Crown Car, Reg No. QIIC-3989, Chassis No. QWS204-0002009, Model: 2008.

    15. Toyota Vitz Car, Reg NO: ATN-555, Chassis No. SCP90-5032180, Model. 2005.

    16.    Toyota Fielder Car, Reg No. JAB-118, Chassis No. NZE121-0171398, Engine No. INZ-Fe, Model, 2002.

    17.    Honda Civic, Chassis No. JHMFD-163095201118, Model 2009.

    18.    Toyota Land Cruiser Prado, Chassis No: VZJ95-0101986, Model: 2002.

    READ MORE: Customs Sukkur to auction huge lot of motor vehicles

  • Honda to slash production on supply constraints

    Honda to slash production on supply constraints

    TOKYO, Japan: Honda Motor Co has said it may cut production due to supply constraints and logistical issues.

    READ MORE: Suzuki starts producing outboard motors with plastic collecting device

    According to foreign media, the company said that two lines at Suzuka plant will reduce production by about 10 per cent this month and 30 per cent in early August this year.

    Another plant in Saitama prefecture may also cut production to 10 per cent next month.

    READ MORE: Hyundai announces second quarter financial results

    Auto manufacturers in China are unable to escape from the impact of shortage of semiconductors and COVID-19 lockdowns.

    Toyota Motor Corp said that its global production for August would be about 700,000 units, down roughly 18 per cent from its plans at the beginning of the year.

    READ MORE: Honda unveils all-new Civic Type R

    Honda adjusted its production plan in May but had said it would return to normal in early June.

  • FBR explains changes in advance tax on motor vehicles

    FBR explains changes in advance tax on motor vehicles

    ISLAMABAD: The Federal Board of Revenue (FBR) has explained changes made to advance tax on motor vehicles through Finance Act, 2022.

    The FBR issued Income Tax Circular No. 15 of 2022/2023 to explain important amendments brought through Finance Act, 2022 to the Income Tax Ordinance, 2001.

    The FBR said that provision of section 231B of Income Tax Ordinance, 2001 was limited to private motor vehicles. The scope of withholding tax has now been enhanced though omission of the word ‘private’ from the heading and elsewhere in the section.

    READ MORE: Pakistan introduces automated system for withholding tax payments

    Further, an inclusive definition of motor vehicle has been provided in the substituted sub-section (7) of section 231B with following exclusions:

    (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 up to 200cc.

    READ MORE: Tax imposed on foreign payments made by exchange companies

    Except motor vehicles mentioned at i, ii and iii above, provision of section 231B will apply on motor vehicles of all makes and models irrespective of its private or commercial use by the end users.

    The FBR further said that the withholding tax amount required to be collected at the time of purchase or registration of motor vehicle has been enhanced with engine capacity of 1601cc and above.

    In cases of electric vehicles where engine capacity of a vehicle is not available and value of vehicle is rupees five million or more, the amount of tax collected will be 3 per cent of 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.

    READ MORE: Minimum tax for commercial importers enhanced: FBR

    Rates of tax required to be collected at the time of transfer of registration or ownership of a motor vehicles have been provided in clause (2) in the Table in Division VII of Part IV of First Schedule of the Ordinance.

    A new proviso has been inserted whereby a vehicle in which engine capacity is not applicable (electric vehicles) and the value of said vehicle is rupees five million or more, then tax amount of rupees twenty thousand will be collected at the time of transfer of registration or ownership of such vehicle.

    READ MORE: Tax through electricity connections on retailers, service providers

    In case of a person not appearing in active taxpayer list, tax collectible under this section will increase by two hundred percent. Necessary change has been incorporated in rule 1 of Tenth Schedule of the Ordinance, the FBR added.