Assemblers are producing lower number of bikes as per capacity: Chairman APMA

BUSINESS

Karachi: 124 BRANDS ARE PRODUCING SAME 70CC DECADES OLD MODEL IN PAKISTAN. NOW 40 to50 assemblers are active, remaining are waiting for good policy by the Federal government.

Pakistan’s Motorcycle assemblers have a total installed capacity of  Five to Six million motorcycles per annum but the production for the last two fiscal years has remained low at 2.7 million bikes per year.

Relatively a small country with a population of 200 million, the country has 124 bike assemblers including three Japanese giants. In Pakistan Two Japanese assemblers Yamaha and Suzuki are not producing 70CC Bikes, but all other approx 122 assemblers are producing same CD-70 cc bike with only brand name change, these 122 brands are Bionic, Racer, Laser, Safari, Aan, Royal Star, Mehran, Honda, BML, Blue Star, Grace, Crown, Star, Eagle, Hero, Ravi, Habib, Raftar, King Hero, Leader, Super Star, Metro, Hunza, Moon Star, Super Powr, New Asia, Osaka, Pak Star, Sohrab, Hi Speed, Royal, Rohi, Diamond, Union Star, Jinan, Guangta, Star Asia, Geo, Supreme, Toyo, United, Zxmco, Guru, Tez Raftar, Saszgar, Super Asia, Unique, SKM, Ghani, Qingqui, Aiwa, Sakai, Shaheen, City Super, Unipak, Asia Hero, Super Speed, Treet, Buraq, Pal Style, Sonica, Master, Road Prince, Excel, Hawk, Aerolite, Sky Wing, Captain, Rockey, Super Shahbaz, Champion, Stahlco, ST-70, Jan Power, Challenger, Crown, King Rider, Josh, Laser, Long Life, Pak Hero, Super Hero, DHL, Hi-Deluxe, Shahcar, Rebon, Eagle Star, Sutlej, Lucky, Vicky, Shine Star, Gold Star, Hi-Metto, Fara, Imperial, Pak Speed, NXG, Stalion, Classic, Express, Jaguar, Metro, Elite, Akai, Royal Metro,  DYL Dhoom, HONDAYS  and Power.

The government is reported to have given go-ahead signal to more than 20 assemblers in the last two years without realizing that existing assemblers have failed in rolling out bikes as per their plant capacity.

Surprisingly, the previous governments gave permission to many small assemblers whose annual installed capacity was ranging between 1,200 units to 5,000 units.  It means that parties associated with other kinds of business had invested in bike assembling business without having any technical expertise. As a result, most of them had either closed down or slowed down their production due to intense competition, lowering profit margins and heavy production losses, but experts of the motorcycle industry and marketing also fail in bike assembling due to the corrupt system of taxation and TBS by the government of Pakistan.

Some assemblers are in a precarious position owing to which they are failing to pay the outstanding amount on received parts for production from their vendors.

Consumers have failed to get any benefit from a huge lot of assemblers as they have been producing more than three decades old 70cc models mainly and due to the competition they are decreasing the quality of products.

Sources said the ministry of industries has compiled a data of the number of bike assemblers in the country coupled with their products, installed capacity and the Ministry is also searching as to how many units are now struggling for their survival.

Chairman Association of Pakistan Motorcycle Assemblers (APMA) Mohammad Sabir Shaikh said around 16 units in Karachi and Hyderabad have closed down or stopped production followed by the same situation with around 36 units in Punjab seven in Khyber Pakhtunkhwa and two in Azad Jammu Kashmir.

Sabi Shaikh said there was no need to allow more bike assemblers as most of the existing Chinese assemblers are already facing stiff competition and only 10 units are enjoying relatively good sales as compared to their competitors.

Sabir Shaikh said the closure of units or slow down in production have already led to massive unemployment in the sector. Many of the units are on the verge of collapse while others are heading towards the dead end.

Atlas Honda Limited (AHL) has the installed capacity of1,250,000 units per annum and despite its higher price than Chinese bike, the company produced 1,150,428  units in 2017-2018

   Sabir Shaikh informed that assemblers are producing a lower number of bikes as per their installed capacity. The second highest bike producer is Lahore based United Auto Industries of United Bikes whose yearly installed capacity is 488,000 units while it assembled 405,650 in 2017-2018.

The maker of Road Prince Bikes Omega Industries of Lahore made 2,19,349 units in 2017-2018

Plum Qingqi Motors has an installed capacity of 100,000 units. many other famous assemblers including UNIQUE, SUPER POWER, SUPER STAR, HI -SPEED, UNION STAR,  are also performing well as per their installed capacity.
YAMAHA and SUZUKI are assembling best quality 125, 110 and 150CC bikes in Pakistan.

In order to revive the production of near about  80  closed units, Sabir said the current government has to fix sale and production quota of every assembler keeping in view last five years production and sales. Otherwise, the government must close approval of new units for assembling 70cc bike by.sabir sheikh