Article: How Pakistani bikes will compete against Indian bikes

How Pakistani bikes will compete against Indian bikes, if given the opportunity to get imported. Interesting read!!

Analysis of Pakistan and India bike industry

Irrespective of merits and demerits to our local industry, stake of jobs of thousands of people and future of our huge vendor base after more liberal trade with India – one thing looks certain that consumers may be able to see arrival of used new design bikes of higher engine capacity from India. However, much will depend of the prices of Indian bikes to lure the buyers.

Many consumers have set their eyes on the bright prospects of running high engine capacity Indian made bikes hopefully from next year as the government looks firm to phase out negative list of items between the two countries by December 2012 thus paving way for more entry of Indian goods.

It is not clear what government has planned about the future of our local bike industry which has been showing tremendous growth after the entry of low priced bikes introduced by Chinese bike assemblers.

How the local industry (Japanese and Chinese bike assemblers) will face the influx of Indian bikes as the government has clearly indicated of eliminating negative list by December 31, 2012.

It is a real fact that the auto vending industry of Pakistan during the last 15 years has come a long way in terms of acquiring technologies to manufacture a wide range of hi-tech products not only for domestic market but also catering for export market to some extent.

The localization levels achieved so far by the vending industry are over 90 per cent for motorcycles but surprisingly the price of Japanese CD70cc is Rs 66,000 as its producer continues to increase prices on rising cost of production and appreciating value of Yen against the Rupee.

However, local vendors claim that the high local content in case of motorcycles has made Pakistan, as one of the cheapest manufacturers of this mode of transport worldwide because the cost of parts produced by PAAPAM members is substantially lower than cost of imported parts.