Seventy two companies engaged in assembling of Chinese bikes

[Pak_Sher]

KARACHI: The number of motorcycle assemblers has almost tripled in the country during the last 10 years as presently 72 registered companies are engaged in assembling of Chinese make of two- wheelers.

According to the statistics of Motorcycle Assemblers Association of Pakistan (MAAP), presently 72 registered private companies are involved in the manufacturing, importing and assembling of the two-wheelers in major cities of the country.

"Over a decade back the number of assemblers was dismal but after the ending of the deletion programme by the government, the number of assemblers has jumped significantly," said Sabir Shaikh, representative of the dealers and assemblers of motorcycles here on Thursday.

The existing customs duty on import of CBU (Completely Built Unit) of two-wheelers stands at 65 percent while that on CKD (Completely Knocked Down) kits is 15 percent.

Statistics further showed that during Jan-Dec 2010, the production of motorcycles stood at 1.5 million. It rose from 0.121 million in Jan, 2010 to 0.146 million in Dec, 2011.

The assembling companies are based in Karachi, Hyderabad, Gujranwala, Gujrat, Lahore and Hub (Balochistan).

"The cost of production in Karachi is too high as compared to that in the province of Balochistan, Punjab and even interior Sindh where cheap labour is available," said Sabir Shaikh.

At least 50,000 direct and 150,000 indirect labours are involved in this business.

"We can attract more business if the government announces uniformed duty for CKD and CBU kits," he pointed out.

The units are set up with an investment ranging from Rs30 to 40 million to a maximum depending on the real estate, labour and other miscellaneous cost.

"Presently we are facing tough competition because of the large number of assemblers of Chinese make motorcycles," said a Lahore based entrepreneur engaged in the motorcycle business.

Besides, the local market, assemblers are also catering to the demand of the Afghanis and Sri Lankans.

"Due to our cheap cost of production, we are exporting the motorcycles to Afghanistan and Sri Lanka," said the assembler and added unlike the past when only Japanese versions of motorcycles were on demand, the Chinese make are also popular nowadays.

The 70cc assembled and imported Chinese make are available at the range of Rs38,000/- to Rs41,000/- per unit while the Japanese make cost Rs65,000/- per unit in the local market.

"I would prefer the cheaply available Chinese motorcycles as compared to others which are very costly and the quality is almost the same as compared to fuel consumption and parts are concerned," said a customer, Ali Hussain, in the busy Akbar Market in Saddar.

Seventy two companies engaged in assembling of Chinese bikes

 

[IceCold]

Should i add the third class quality that these 72 companies are producing and ripping Pakistanis off their money. Seriously the quality on these motorcycles are so low that brand new bikes start developing problems right after the first 100 kms (and i am being generous). Honda is no goo either. Their bike is equally low in quality.

 

[Veeru]

Should i add the third class quality that these 72 companies are producing and ripping Pakistanis off their money. Seriously the quality on these motorcycles are so low that brand new bikes start developing problems right after the first 100 kms (and i am being generous). Honda is no goo either. Their bike is equally low in quality.

Try to have joint venture with Indian companies that will offer real growth opportunities to the both nation and mind it our quality and cost are impressive.

 

[no_koadsheding_plz]

Should i add the third class quality that these 72 companies are producing and ripping Pakistanis off their money. Seriously the quality on these motorcycles are so low that brand new bikes start developing problems right after the first 100 kms (and i am being generous). Honda is no goo either. Their bike is equally low in quality.

i dont think it is so ,, thouh most are just rippoff others or very good machines and equal to brand name,,
but the real issue ois that these all are 70cc and all use carburettors ,, shapewise they are the replica of 70's or 80's simple bikes no change in either tech or shape..

 

[acetophenol]

70cc bike cost 38000? Thats costly! In india,you can get a decent 100cc or even a entry level 125 cc bike!

 

[Lord Of Gondor]

70cc bike cost 38000? Thats costly! In india,you can get a decent 100cc or even a entry level 125 cc bike!

nope, one rupee(INR) is approximately equal to two rupees(PKR).so,the bike would cost us Indians around 19 thousand bucks... but fortunately for us,we can get a decent classic pulsar(pre owned) for 20k......

 

[acetophenol]

nope, one rupee(INR) is approximately equal to two rupees(PKR).so,the bike would cost us Indians around 19 thousand bucks... but fortunately for us,we can get a decent classic pulsar(pre owned) for 20k......

Thanks a lot buddy!

 

[no_koadsheding_plz]

no a decent 70cc costs 47000 pkrs,, and a branded costs 68000 pkrs [honda cd 70],, whareas honda delux costs 1 lac 5 thousands pkr,, it has 5 gears and front disk brakes and carburated engine 125cc,, hell expensive ,, also note that honda cd 70 costed abot the same i,e, 67000 in 2003 but due to the entrance of chinese bike manafacturesers it reduced its prices to 50k pkr , but it again since the past two -four years upped the prices ... had the chinese not entered local market we would have been paying 1 lac plus for this 4 decade old technolgy 70cc ,,

 

[Nair saab]

If pakistan allows Indian bikes in there market then there would be a revolution in Pakistani 2 wheeler market...