Design and cost: Pakistan losing foreign motorcycle market
The number of motorcycles, being exported from Pakistan, has come down from 6,000 units per month to 2,000 units. Pakistan has already lost Sri Lanka and Bangladesh markets and is now just exporting to Afghanistan, according to sources.
They said the domestic motorcycle industry was facing challenges of cost and modern design. Most of the motorcycles produced were of similar designs for 70cc, 100cc and 125cc engine capacities.
Though the motorcycles, produced with the help of Chinese technology, were made affordable for many consumers, the industry failed to introduce modern designs. The increasing cost of production was also a serious problem.
Sources said Pakistan started motorcycle exports about two and a half years ago when the Competitiveness Support Fund offered a rebate of $50 per unit. Despite competing well with China and India in terms of cost, the industry could not keep pace with them in design and range. In addition to this, the rebate facility also came to an end later.
India and China are introducing a large range of motorcycles with modern designs in regional markets at prices as low as $320 to $350.
The demand of motorcycles is increasing in Afghanistan and Afghan importers prefer to buy from Pakistan because of easy availability of spare parts and low freight charges due to proximity. However, “Pakistan is losing ground here too after the end of rebate facility,” an industry source said.
Published in The Express Tribune, October 20th, 2011.
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The Global motorcycle market is thriving, Pakistan can play a pivotal role in motorcycle export to many countries and can record its significant share in international market if government support to the industry. there can be explored some emerging markets in African countries. Ghana is at the top as currently it is world's fastest growing economy, Ghana's economy grew by a whooping 20.15% in the first half of this year. Afghanistan is a developing country, we must not only maintain our export share but augment it with high quality, fair price, and the assistance of the government,
The Chinese provided outdated 1960s technology to Pakistanis to make motorbikes in 2009. They actually sold the technology to Pakistan, through the soft loans that they themselves provided. After struggling for a while, the Pakistanis finally managed to get a foothold in the regional markets by 2010. The Chinese also refused to provide any new or upgraded designs when the market grew, and soon after, started selling their own parts and components in these markets, pushing out the bulk of the Pakistani suppliers, killing many of those businesses. They used the same partner network to introduce their own brands. Eventually, the Pakistanis started losing out in the international markets due to inferior designs and substandard part/services as we can see. So now the Pakistanis have to repay the loan to the Chinese, at the same time having lost the markets to same Chinese, which they had painstakingly built earlier. And everywhere in Pakistan we hear, that China is their "All weather Friend". Unbelievable !!!