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N pakistan motorcycle export


									                       Engineering Development Board

 Minimum In-House Assembling/ Manufacturing Facilities
for a Motorcycle & Auto Rickshaw Plant and Guide lines to
                  verify these facilities
An assembler/ manufacturer of motorcycle or auto rickshaw should have the
minimum in-house facilities as prescribed in the Annexure-A of SRO.
656(1)/2006 to ensure quality, safety and environment standards to
assemble/ produce road worthy vehicles.

Welding Shop (For 4-stroke Auto Rickshaw only)
Welding Arrangement (in-house or at suppliers end)

       I     Spot Welding Machine (20~50 KVA for frame body)
Spot welding machines ranging from 20KVA to 50KVA to weld (spot)
metallic sheets of thickness from 0.8mm to 2mm (including small clips,
wires or cable clamps, brackets, collars, plates, etc) and Nuts and
Sockets upto the thickness of 6mm.

      II     MIG (Metal Inert Gas) / TIG (Tungsten Inert Gas)/ Arc

      MIG/TIG/ARC welding machines of ranges from 100Amp to 350Amp for
      welding beads on the joint of Frame Body Panels, Head Pipe, Rear Fork,
      End Pieces, Cross Plates, Gusset Plates, etc.

      III    Frame Body Inspection Jig

      Alignment of Frame Body through adjusting it after inspection, to
      remove the residual, torsional and various stresses imparted by the
      welding process.

Paint Shop

      I      Degreasing Process (minimum One tank with a temperature
             gauge for degreasing - Temperature 50-70 °c
      Parts cleaning to remove all types of dirt, dust, oil, contaminations
      prepare the surface of the parts ready for coatings

APMA/EDB/PAMA/PAAPAM                                                  Page 2
      II     Rinsing in clean water (one tank) for removing alkalis.

      III    Phosphating Process (Minimum one tank with a temperature
             gauge for phosphating - Temperature 50-70 °c

Preparing surface of the parts for making them more receptive for painting
purpose through coating a coarse layer on the cleaned surface of the parts

      IV     Rinsing in clean water (one tank) for acid removing
             Verification by EDB's Technical Team

      i)     The EDB's Technical Team will note down the specification
             of the equipment installed whether manual or automatic
             and its make/ model.

      ii)    A timeline will be given by the OEM for the treatment of a
             complete set of parts treated / processed. The Team will
             ensure & note down the time taken for a complete set of parts
             to be used in the assembly of a vehicle.

      V      Dry Oven with temperature gauge .

     A pre-painting dryness having temperature from 150-200 °c for removal
     of any moisture content before painting process (through a drying oven)
     to avoid under baking of paint.

     VI      Paint Booth at least with one spray gun.

     i)The capacity of the plant shall be determined on the basis of the paint
            booth and the time taken on a complete set of parts to be painted
            & used for the assembly of vehicle.
     ii)    The paint shop should be a cleaned and air balanced Paeit Booth
            with controlled humidity atmosphere for painting purpose to
            avoid dust, drift and missing problems in the paint.
     iii)   The painter (worker) will be provided oxygen mask to safeguard
            himself from the paint fumes.

     iv)    The EDB's Technical Team will note down the specification
            of equipment i.e. paint booth's size etc and the time taken
            in the completion of the process.

APMA/EDB/PAMA/PAAPAM                                                    Page 3
     VII     Baking Oven with Temperature Gauge

     i)Curing of paint through a baking oven for good adhesion and to avoid
            the paint to be peeled-off. The required temperature will be 130-
            160 ()c.

     ii)    The time will be measured by the Team or a time line will be given
            by the OEM in the baking process for a set of parts baked.

Engine Assembly Arrangement (In-House)
Assembly of engines shall be done in a well lit and dust free environment to
avoid deterioration of finished, machined, delicate and tiny parts and to avoid
mixing of any unwanted/ extra content in the engine.

The purpose may be achieved through an air tight/ air conditioned room with
foot-mates and controlled entrance.

       I     Engine Assembly Jigs

       i)    Jigs to support/ hold/ carry the motorcycle engines, for Gear
             Transmission assembly, upto the complete finished engine,
             including the assembly of:

             1)    Crank Cases and Crank Case Covers
             2)    ACG Flywheel
             3)    Complete Cylinder with Crankshaft and Connecting Rod
             4)    Spindle Kick Starter and Spindle Gear Change/ shifting
             5)    Spark Plug, Rocker Arm and Tappet adjusting
             6) Cover Cylinder Head and Oil filling

     ii)     For the assembly of engines a conveyer belt with Jigs to support
             the engines will be installed/ fitted with the pneumatic Guns and
             having various sizes of required bits and socket for tightening of
             Nuts and Bolts upto the required Torque level.

     iii)   The OEM will give a timeline involved/ required for the assembly
            of a complete engine and the EDB's Technical Team will measure
            the time.

     iv)    Torque Wrenches starting from minimum range 0-200 kgf-cm,
            201-400, 401-600, 601-800, 801-1000, 1001-1200 kgf-cm

APMA/EDB/PAMA/PAAPAM                                                     Page 4
    II          Compressor

    Capacity of the compressor will be subject to number of pneumatic guns,
    however a compressor of 25KW may serve 6 guns.

    III         Press or Pneumatic Jig

    Ball Bearing fitting arrangements through Press (Hydraulic) or pneumatic

    IV          Engine Number Punching Arrangement

         A computerized number punching machine, or Through Press
         (Hydraulic, minimum 5 Tones) or manual system through alphabetic
         and numeric digits bars.

         V      Parts/ Material Handling System

         Trolleys and Bins for handling of parts separately ok parts from the
         rejected/ damaged parts.

         VI     Test Bench (Engine Performance Test)
         i)     To check the Gears and Neutral Light etc
         ii)    ii) Engine Leakage
         iii)   iii) RPM

         A timeline will be given by the OEM for checking the engine
         leakage, testing etc and the EDB's Technical Team will measure

         VII    Measured Oil Filling Arrangement

         A standardized oil filling arrangement in the engine shop.

Testing Instruments/ Equipments for Inspection of
Components/ Parts before Issuance for Final Assembly (In-
         1.     Dimensional inspection instruments (e.g. vernier calliper,
                micrometer, dial indicator & height gauge etc).
         2.     Material hardness tester (metal & rubber)
         3. Destructive test arrangement (especially for chromed parts)
         4. Coating layer thickness meter
         5. Functional tests
         6. Peripheral/ run-out accuracy, etc testing arrangement

APMA/EDB/PAMA/PAAPAM                                                   Page 5
Final Assembly Arrangement (In-House)

A complete automated with conveyer belt assembly line arranged with Sub-
assemblies of Front Fork Assembly, Rear Fork/ Swing Arm, Wheel Assembly,
Rear Shock Assembly, Steering Handle with Switch Assembly, Wiring Harness
Tester to check the Front/ Rear Winkers, Horn and Exhaust-Muffler etc to
support the main assembly line for the assembly of vehicles. The assembly line
will be equipped with the pneumatic guns with different sizes of bits & sockets
for tightening nuts & bolts etc.

I         Frame Assembly Jigs
    Jigs for complete motorcycle assembly to carry the motorcycle right from
    the first step of the assembly that is putting Engine or Frame Body, upto the
    complete finished product, including assembly of motorcycle from the

    1)    Rear Fork (or Swing Arm)
    2)    Front and Rear Wheels
    3)    Front and Rear Fenders
    4)    Front and Rear Shock Absorbers (Cushions)
    5)    Steering Handle with Switch Assemblies, Brake Levers and Throttle
    6)    Drive Chain and Chain Cases
    7)    Fuel Tank, Seat and Side Covers
    8)    Wiring and Cables routing
    9)    Speedometer, Head Light and Tail Light
    10)   Front and Rear, Right and Left Winkers
    11)   Brake Pedal, Brake Rod and Gear Change Pedal
    12)   Front and Rear Wheel Panels fitting
    13)   Ex Muffler, Rubber Step Bar and Pillion Assembly fitting

The OEM will give a timeline to be taken in the assembly of one
vehicle or time taken in one complete cycle. The EDB's Technical
Team will check the timeline given by the OEM to assess the plant

II      Pneumatic Guns
     Pneumatic Guns with various required bits and socket sizes for tightening of
     Nuts and Bolts upto the required Torque level.

The overall capacity will be determine by the Team on the basis of time
taken in different processes involved in the assembly of vehicle. However,
the capacity will be determined largely on the basis of paint shop.

APMA/EDB/PAMA/PAAPAM                                                        Page 6
Final Inspection (In-House)

I        An Automated electronic based system
     To check the effectiveness of Front & Rear brakes

The OEM will provide the specification of the equipment/ machines
installed alongwith its make/ model etc.

II       Speedometer Test Bench

      To check speed of motorcycle's speedometer in comparison with a
      standard calibrated Speedometer (with an allowed variation of ±5Km/hr)
      to ensure the rider's safety by avoiding misleading speed on motorcycle's

III Alignment Test

A computerized electronic system to test the alignment of the vehicle.

The OEM will provide the specification of the equipment/ machines
installed alongwith its make/ model etc.

IV       Headlight Aiming Tester

      A computerized & electronic based system to check the intensity (low &
      high beam) of light.

The OEM will provide the specification of the equipment/ machines
installed alongwith its make/ model etc.

Storage for inputs of localized & non-localized parts

A storage with a complete inventory system separately for localized & non-
localized parts.

The OEM will provide the measurement of the area arranged for the
input parts.

Finished Goods Area

Finished Goods Area/ OK vehicle stock area clearly differentiated with in-
process/ under repair/ hold motorcycles.

The OEM will provide the measurement of the area arranged for
finished vehicles.

APMA/EDB/PAMA/PAAPAM                                                     Page 7
            Tariff Structure for Two Wheeler Industry prepared by Atlas Honda
            Limited / PAMA submitted to EDB.

                                                                                                                Rate of Custom Duty
                                                                                                                 Proposed by PAMA

                                                        Tariff Existing   AIDP Tariff Plan
                                                                                             2012-13     2013-14       2014-15      2015-16    2016-17
                                                          2010-11            2011-12

            1   CBU                                          65%               60%             55%        50%           50%            50%       50%

            2   CKD in Kit (%)                               15%               10%             10%        10%           10%            10%       10%

                Components for assembly
                of Motorcycles as are
            3                               Localized       47.5%              45%           42.50%      40.00%        37.50%         35.00%    32.50%
                listed in SRO 693(I)/2006
                dated 01-07-2006

            4   Raw Material                                 0%                 0%             0%          0%            0%            0%         0%

            5   Sub Component (%)                            5%                2.5%           2.5%        2.5%          2.5%           2.5%      2.5%

            6   Components                                   10%                5%            5.0%         5%            5%            5%         5%

            7   Sub-Assembly (%)                             20%               10%            7.5%         5%            5%            5%         5%

                Motorcycle volume (2010-
            8   11 Actual. Others                            900,000           1,050,000     1,250,000   1,450,000
                                                                                                                      1,600,000   1,800,000    2,000,000

APMA/EDB/PAMA/PAAPAM                                                               Page 8
                   Red Indicates present tariff/ Policy

                   The facts for Two/Three Wheeler industry are much different from that of other sectors. It has more than 70 players. The localization level is
                   also much higher (between 85% to 92%).

                   The challenges being faced by this sector are also different from those of the other sectors. The OEM's in the organized sector are at a
            ii)    clear disadvantage as compared with the unorganized sector. Under invoicing, mis-declaration, outright smuggling and non payment of
                   Sales Tax and other Government levies, by the unorganized sector, have placed the organized sector at a major cost disadvantage.

                   This sector is highly cost sensitive. The cost differential between the organized sector and the unorganized sector is making it more
                   attractive to be in the unorganized sector.

                   As more and more business moves into the unorganized sector, it will reduce localization. It is a fact that at present most of the assembly is
            iv)    through commercial import or through imported parts from illegal sources. This is forcing business out of country and not only the OEMs are
                   suffering but this situation is a major set-back for the vendor industry too.

                   Solution lies in reducing cost for the industry. To keep business in the organized sector, the cost has to be brought down for them.
            v)     Rationalizing tariff rates is the way forward. Reduced tariff rates will make present practices of the unorganized sector unattractive and it
                   will make business sense to procure locally. Volumes, make localization attractive and imports costly.

                   Note: This proposal is submitted by Pakistan Automotive Manufacturers Association & the main body of Motorcycle Assemblers APMA,
                   Association of Pakistan Motorcycle Assemblers is not agree with this.

APMA/EDB/PAMA/PAAPAM                                                                    Page 9

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