Nov 15 - 21, 2010
Motorcycle industry in Pakistan which has attained the production level of over 1.4 million units a year with 100 percent indigenous parts has arrived at a point where it can excel into export market to earn the cherished foreign exchange. Yet the bureaucratic hurdles and discriminations are hindering the industry to play its role in the economic recovery of the country.
Muhammad Sabir Shaikh, Vice Chairman of Association of Pakistan Motorcycle Assemblers (APMA) while talking to PAGE said that previously the industry used to get research & development incentive of $50 per unit which has been withdrawn, affecting the margins of the two wheeler producers in the current scenario where the cost of input has been multiplied especially electricity, gas and petroleum products as well as other raw materials including steel, which has rendered the industry with uncompetitive price in the export market when compared with the price level of India and China
He said earlier the industry has successfully started competing with its rivals in Afghanistan, Bangladesh and other export destinations however the rising cost of input has snatched this opportunity since quite some times. According Muhammad Sabir Shaikh Pakistan's bike assemblers (Chinese and Japanese made) had achieved production of 1.38 million units in 2009-10 as compared to 917,628 units in 2008-09.
Motorcycle industry, which provides an affordable mode of transport especially for the low income groups need a supporting hand to enable it to serve the people severally hit by the high cost of traveling with the abnormal increase of fuel prices.
There is a need of age limit of using motor bikes as well to protect the environment, roads, as well as noise pollution. In Pakistan people have been allowed to use even 30 year old motor cycle as compared to Europe and Japan where registration period is not more than three years. It is seven years in Singapore and 15 in India. Pakistan should also draw a line for the registration period of motor bike which would also help the industry to survive besides triggering recycling process as well. Probably, Pakistan is the only country where there is no strict checking on the quality by the government after products coming out from the factories in the markets and some low-priced Chinese cum Pakistani motorcycles also fall in the same category
Discussing the discriminatory attitude of the policy makers towards locally made motorcycles, industry sources said that Japanese motorcycle assemblers restart pushing up the prices on weakening of the rupee against the Yen. Hence, the assemblers of Japanese motorcycles have been allowed to increase prices on the back of weakening of rupee against dollar and Yen, which made the imported parts dearer amid slight increase in steel prices.
During last two years Japanese affiliated motorcycle assemblers increased prices of their motorcycles more than four times, but all Pakistani motorcycles assemblers affiliated with Chinese principals not allowed increasing the prices.
Mr. Sabir pleaded that when the US Dollar Price equals to Pak Rs62, our retail price was Rs36,000 and now the US Dollar price is equal to Pak Rs86 and still some assemblers are selling their motorcycles at Rs36,000 in local market and also whole sale price for un official exports to Afghanistan at Rs32,000 to Rs34,000. Because today's production cost of made in Pakistan Chinese affiliated motorcycle is more than Rs35,000 without transportation.
Besides the high numbers of production and addressing the problems of the commuters the uncontrolled and unregulated flock of motorcycles are also causing traffic problems as well as becoming the major cause of fatal road accidents. According to a survey conducted by Indus Motors, the highest number of road accidents is attributed to motor cycles. It is the time for the road management authorities to look seriously to immediately evolve traffic management methods for the protection of the bike riders by allocating specific tracks for the good of the people in general and the motorcycle industry in particular.
In the nut shell following are the problems faced by the local motor cycle industry:
-Deadline for submission of Annual Consumption data by OEMs in SRO 656/655
-Recognition of APMA as a representative of 2/3 Wheelers OEM
-Restriction of purchases of imported items from commercial importers
-Difficulties in List verification
-Research and Development Support on Export of Motorcycles and Auto CNG Rickshaw
-Revisit of SRO 693/Implementation of AIDP
-No distinction has been given in SRO 693 for motorcycles of different horse powers
-Inclusion of Commercial Importers of Auto Parts under SRO 693
-Final Tax Regime on Vendors working under Partnership/ Proprietorship
-Valuation Advices issued without consulting all the stakeholders. Valuation Advices issued without any basis.
-Non-availability of Valuation Advice publicly
-Access to PRAL data is not available to OEMs/Vendors
|MAKE & MODELS||MARKET PRICE (Rs)|
|SITARA GUANGTA GT-70||42,000|
|HONDA CG-125, STD||86,500|
|HONDA CG-125, DLX||108,900|
|SUZUKI SPRINTER 110 CC||70,000|
|SUZUKI SPRINTER ECO 110CC||67,000|
|DYL DHOOM YD-70||45,900|
|YAMAHA JUNOON YD-100||73,300|
|SUPER POWER SP-70||40,500|
|CROWN LIFAN CRLF-70||41,000|