Business World: Motorcycle Industry in Pakistan

Motorcycle Industry in Pakistan

The sale of motorcycles across the country has also witnessed an impressive growth over the past couple of years on the back of record production numbers. Sale of new motorcycles has risen to 450,000. In comparison, the sale of second-hand motorcycles has come down as customers seem more interested in brand new motorbikes, rather than going for a used one.
It may be mentioned here that every company has the official permission to produce and launch two of its products under one licence ie motorbike and auto-rickshaw.
The majority of the assemblers in the country are located in Lahore where 13 companies are engaged in assembling motorbikes. Some eight assemblers are located in Karachi, five are in Hyderabad and three are in Gujranwala. One assembler each is operating business in Mirpur, Peshawar, Gujrat, Muridke and Multan.
Experts in the motorcycle industry have said that five years back, only four companies were making motorcycles in the country. This situation now stands drastically changed thanks to the supportive policies of the government.
Another notable change is the increased market share of Chinese-made motorcycles in the Pakistani market. With the positive growth in this industry, prices of the motorcycles have also witnessed a notable decline. Over the past five years, prices of new motorcycles have fallen by some 30 per cent to 40 per cent.
"A 70cc motorcycle which was previously sold at Rs70,000 to Rs75,000, is now available at Rs35,000 to Rs52,000," said a dealer at Akbar Road market Karachi, one of the biggest motorcycle markets in the country.
The production of the motorbikes in the country has also jumped to 500,000 from 350,000, due to higher demand by the customers.
The increase in the demand of new motorcycles in the country is also due to the cheap Chinese spare parts availability in the market.
"Shock absorbers of a Honda-made 70cc motorbike was available at Rs1,800. The same item in Chinese category can be purchased in Rs550," said Asad Farooq who has recently bought a China-made motorbike.
Market sources have said that the quality of Chinese auto parts second rate, but nevertheless, their sales have gained momentum as the purchasing power of a consumer is badly hit by the rising inflation.
Dealers said that the auto parts of China, Thailand and Malaysia are popular in the market. While some auto parts from Japan are being imported, but the share is still less in comparison with China.
Number of companies in the country who manufactured auto parts also soared considerably to 100 as compared to just 40 during the past four years.
It may be recalled that 20 years back, the import duty on Completely Built Unit (CBU) was 105 per cent. This has now been brought down to 90 per cent. However, licensed dealers can import auto parts at the rate of 25 per cent while the importer who imports the auto parts on a commercial basis has to pay the duty at the rate of 30 per cent.
According to details, Pak Hero Industries is assembling PH-70, PH-100 and PH-125, however, the same company is also assembling two-stroke and four-stroke auto rickshaws.
Similarly, Atlas Honda is assembling CD-70, CD-100 and CG-125, while Pakistan Cycle Industrial Cooperative Society Limited is assembling Sohrab JC-70 Plus, JS-125 motorbikes and a 100cc auto rickshaw.
Saigol’s Qingqi Motors Limited is assembling QM-70, QM-100 motorcycles and a 100cc Qingqi motorcycle auto rickshaw, whereas Excel Industries is assembling XL-70cc motorcycle and XL two-stroke auto rickshaw.
New Asia Automobiles is assembling NA-70 motorbike and four-stroke auto rickshaw, however, another company United Sales is assembling US-70 motorcycle and 100cc motorcycle auto rickshaw.
Meanwhile, Blue Star Automobile is assembling BS-70 motorbike and a two-stroke auto rickshaw, while the company Pacific Motor Company Limited is engaged in assembling Sprinter four-stroke auto rickshaw.
HKF Engineering (Pvt) Limited is assembling Ravi RA-70 motorcycle. The Sazgar Engineering Works Limited is assembling four-stroke auto rickshaw, while Star Asia and Zxmco Pakistan (Pvt) Limited are assembling four-stroke auto rickshaw and ZX-70cc motorcycle respectively.
Suzuki Motorcycle Pakistan Limited in Karachi is manufacturing and assembling A-100X, SC-110, GS-125, GS-150 motorcycles, while Dawood Yamaha Limited is engaged in assembling and manufacturing Yamaha Royale 3AH, YB-100 and YD-100 motorcycles.
Dewan Motorcycles Limited is assembling Star DS-70 and Lifan 70cc motorcycles besides Star four-stroke auto rickshaw, whereas Ahmed Automobile Company is assembling Safari SD-70 motorbike and Safari two-stroke auto rickshaw.
Furthermore, NJ Auto Industries is assembling Super Power SP-70 motorcycles, however, Sitara Auto Impex is engaged in assembling Gungta GT-70 motorcycle besides Shahabuddin Enterprises which is assembling Parwaz two-stroke auto rickshaw.
The AB Engineering (Pvt) Limited is assembling Laser 70cc motorcycles, while companies from Hyderabad, Memon Associates Foundry Limited, Raazi Motor Industries and Shafiq Sons are assembling two-stroke Super Star auto rickshaw, Hi Speed SR-70 motorcycles and Jinan JN-70cc motorcycles respectively.
Another company of Hyderabad, DS Motors is assembling Unique UD-70cc motorcycles, whereas Fateh Motors is assembling Hero RF-70cc motorcycles.
Gujranwala-based King Hero Motorcycle Industries is assembling King Hero KH-70 motorcycles and King Hero two-stroke auto rickshaw, while another company Super Asia Motors (Pvt) Limited is assembling Super Asia SA-70 motorcycles.
Another Lahore-based company, Toyo International Motorcycle is busy in assembling Toyo 70cc motorcycle.
A company of Muridke, Suleman Auto Industries is assembling Geo 70cc motorcycles, while another company of Gujrat Metro Hi-tech is assembling Metro MR-70cc motorcycles.
A company from Peshawar, Leena Industries is assembling Kharo 200cc auto rickshaw while another company of Mirpur, Eagle Industries is engaged in assembling Eagle DG-70cc motorcycles.
Raja Auto Cars is assembling Vespa scooter, Vespa auto rickshaw and Hawk RH-70cc motorcycles, whereas a company from Multan, Ali Raza Industries is assembling Royal Star RS-70cc motorcycles.

Blog By:
Saqib Aslam