At present there are nine assembly units for the manufacture of motorcycles and scooters.

Four of these units

are located in Sindh, one in Balochistan, three in Punjab and one in Azad Kashmir. The capacity utilization in
the industry is 44 per cent. Only two units have attained deletion upto 70 per cent. The important point to note
is that majority of parts deleted are frame parts. These parts do not share the major part of the overall cost of
the product.

Production of Motorcycles

Produc- Growth

Year tion Rate (%)

1987-8868,231 -

1988-8972,804 + 6.70

1989-9092,783 +27.44

1990-9198,647 + 6.32

1991-9297,162 - 1.50

1992-9395,793 - 1.40

1993-9463,958 -33.23

1994-9560,960 - 4.68

1995-9695,991 +57.46

1996-9798,614 + 2.73

The manufacturers point of view was that deletion programme in the motorcycle industry has become
irrelevant in these days of free market economy. Quality standards are being applied and quality components
from the cheapest source have to be obtained.

The demand of motorcycle has been increasing at the historical growth rate of 10 per cent. Taking supply as
constant the demand supply gap in the year 2002 would workout to 203,333. There is need to increase the
existing capacity of the industry on the one hand and to set up more units on the other hand. Price escalation
has made the purchase of motorcycles prohibitive. From 1987-88. Average retail prices of motorcycles
increased by 188 per cent upto 199697 as against this per capita income increased by 10.55 per cent. This
shows that consumer/user of motorcycles will be able to purchase a motorcycle after accumulation of his entire
earned income of more than 12 months if his income is Rs.5000.

Admittedly motorcycles have a small market and it has further shrunk due to heavy burden of taxation and
particularly of sales tax levied at the rate of 12.5% which is first collected at the custom stage and then at
factory gate. It has direct effect on the working capital requirements and poses several problems of obtaining
adjustments and refunds of taxed money.

There is great scope for sale of motorcycles in Pakistan in view of its large population. in India about 3,000
two wheelers are sold for every 1,000,000 persons. As against this 760 motorcycles are sold against every
1,000,000 Pakistanis. Repeated, substantial devaluation of Pak Rupee and levy of 18% sales tax have been
major causes of lack of growth of the market. In the near term, these problems are likely to persist. There is
need to bring down the price of motorcycle in Pakistan. Indian motorcycle is available at half the price of what
it is available in Pakistan. Taxation should be drastically cut down and operational efficiency should be
improved.

Shogun 100cc motorcycles manufactured by Suzuki are exported to Saudi Arabia and the UAE. The company
is exporting its motorcycles to Mauritius for the last three years. After a vigorous drive to increase its
production and to assist Pakistan in broadening its export produce range, Suzuki Motorcycles Pakistan Limited
obtained orders for its motorcycles from Guatemala and Nigeria this year. With the addition of Saudi Arabia
and the UAE, Suzuki Motorcycles Pakistan has entered seven foreign markets. The company is by far the most
successful Pakistan-based motorcycles company in the important and exceptionally competitive export market.
The local market gets the same high export-quality motorcycles.

Chinese Brand

Prospective buyers now have a wider choice to buy Chinese assembled two wheelers at 30 per cent cheaper
rates compared to the existing Japanese models. Currently four local assemblers in collaboration with Chinese
manufacturers are marketing their products while two others are offering Yugoslavian and Turkish-cum-
French models.

Another new entrant Fateh Motors Ltd. in collaboration with a Chinese manufacturer is launching its product
Hero RF 70-A next month at a price of Rs.49,000. The company had already launched its model in Hyderabad
and Sukkur. The Hyderabad-based plant has the capacity to produce 30,000 units per annum. The cost of the
project is Rs.100 million.

The price of various Chinese models including Rocket NC-70 is Rs.42,500, Sohrab JS70 (Rs.45,500), Qingqi
(Rs.44,500) and Jialing JH-50 (Rs.27,000). Jawa H50 is available at Rs.33,000 and Automac's Rocky 50 and
KS70 are available at Rs.21,500 and Rs.30,500 respectively.

The Chinese models in the market are basically of Japanese technology and local entrepreneurs have entered
into a joint venture agreement from various Chinese corporations.

In comparison, the prices of Japanese assembled Honda CD70 and CG125 are Rs.60,500 and Rs.70,000 while
Yamaha YB-100 costs Rs.62,000 Suzuki's three versions SR21, Shogun and Samurai cost Rs.65,500,
Rs.58,500 and Rs.56,500 respectively. The market size in 1996-97 remained similar to the previous 1995-96,
stagnating at 100,000 to 115,000 units.

Higher prices, liquidity crunch and snatching of motorcycles in the city had adversely affected the dealers. It is
premature to say that the new entrant, will give a tough time to the already existing manufacturers but lower
prices may give an edge to the new players.

lthough the journey of automobile industry in Pakistan was started by Army Division, Chief Inspector of
Vehicles in Chaklala Rebuild Factories, M/s National Motors started manufacturing Bedford Trucks in 1960.
Since then auto parts vendor industry wheeling with the support of the establishment of the following OEMs,
Suzuki Motorcycles Pakistan Ltd. in 1962, Atlas Honda Ltd. in 1964, Dawood Yamaha Ltd. in 1975, Millat
Tractors in 1978, Pak Suzuki Motor Company Ltd. 1982, AI-Ghazi Tractors 1984, Kohinoor Motor Works in
1984, Hino Pak. Ltd. in 1986, Indus Motors in 1994, PCICS (Sohrab) in 1996, Fateh Motors in 1997, Dewan
Farooq (Hyundai) in 1998.

The vendor industry grew side by side to fulfill the requirement of all the above Original Equipment
Manufacturers (OEMs) by their own resources without having any support from the Government. If the
deletion programme of the OEMs could be followed and monitored by the respective companies and
simultaneously by the Government the present position could have been much better than to-date. The most
important factor of Vendor Industry was very much visible and understandable after PAPS-2000, that this
industry now deserved support by the Government and concerned ministry to take notice to all the
requirements of the vendor industry right from the import of raw material to the finished products. Presently all
these aspects are being handled solely by the industry itself without any incentive from Government.

This mega Auto Parts Show "PAPS-2000" held in Karachi during January 18 to 22, at EPB Exhibition
Complex, which was jointly organized by PAAPAM and EPB showed the worth and importance to attract the
attention of the Government by displaying its commitment, dedication and skill with quality of products as
well as the range of components in both two wheelers and four wheelers ihcluding heavy vehicles produced in
Pakistan.

There is an utmost need to organize such types of shows regularly each year and invite Government Official,
Armed forces personnels, Members of all Chambers/Stock Exchanges, Members of the foreign consulate, all
SAARC countries delegates, technical institutions. PAAPAM and EPB could also use electronic and print
media and effective publicity methods to attract local as well as foreign visitors including the Traders of Auto
Parts of the country.

It is an established fact that small and medium size industries always play vital role and immense support to
provide a good industrial economic base of any country. But unfortunately in Pakistan these industries are
always been ignored and did not have any provision in the policies of Government at any level whereas its
contribution to the country's economy could be judged by the following performance.

Vehicles Which are Being Manufactured by these Industries

* Truck and Buses - 2,500 Units: With the maximum deletion level of 51%. In all there are three
manufacturers with the market share of HINO 50%, NISSAN 35%, MAZDA 15%.

* Commercial - 10,000 Units: With the maximum deletion level of 80%. In all there are three manufacturers
with the market share of SUZUKI 70%, TOYOTA 12%, KIA 18%.

* Tractors - 25,000 Units: With the maximum deletion level of 85%. In all there are three manufacturers with
the market share of MESSAY 55%, FIAT 35%, BELARUS 10%.

* Passenger Cars - 50,000 Units: (i) With the maximum deletion level of 1000cc60%. (ii) With the maximum
deletion level of 1400 to 1500cc 35%. In all there are four manufacturers with the market share of TOYOTA
all models 22%, HONDA 15%, SUZUKI all models 63% and NISSAN new entry.

* Motorcycles - 100,000 Units: With the maximum deletion level of 80%. In all there are seven manufacturers
with the market share of HONDA 64%, YAMAHA 24%, SUZUKI 5%, SOHRAB 3%, HERO 2%, ROCKET
0.5% and QINGQI 1.5%.

(By Courtesy of PAPS-2000 Buyer's Guide)

There is still a big gap to fulfill the local demand in all types of vehicles and as regard the export is concerned
the foreign markets are open to us for our products subject to the quality and price. The need of the hour is to
support and organize this free-lance industry and requires the government to resist the World Trade
Organization (WTO) move for free deletion over imports of auto parts.

This neglected industry operated 95% on the self-help basis with over all Rs.20 billion local investment and
feeding more than 115,000 workers and their families has urged the government to give its long awaited due
share and cover in consideration of its contribution to the Pakistan Economy.

Areas in which attention should be given at the time of framing the Vendor Industries Policy by the
Government.

* Sales Tax rate to be imposed at the maximum level of 7% with the broader base.

* To reduce interest/mark-up rate on new and expansion programme of the industry.

* To ease in the availability of working capital, with no presumptive tax deduction at source and the time of
disbursement.

* To review the infrastructure cost, rates of utilities, Power, Gas, Water should be revised and reduced.

* To develop the resources of the availability of Raw Materials.

* To manage import substitution measures.

* Due to Non-subsidized economy, a great restraint on manufacturers in importing raw material or exporting
the finished products.

* To explore export market, due role of our embassies abroad are needed.

* Free and clean administration is also required to develop the country's infrastructure, Agricultural and
Industrial sectors.

* De-nationalize all the financing and educational institutions.

* De-centralize the administrative power with the sufficient representation of the area's patriotic citizens.

* Proper and adequate representation of each sector in all the Chambers.

* To establish technical institutes equipped with all facilities in each industrial state with the support of the
area industrialists.

* To establish monitoring cell under the Chairmanship of EPB with the agenda of having an yearly conference
followed by Exhibition on regular basis.

All these factors jointly contribute in building-up the country's economy.

The performance of the automobile sector during 2001-02 (July-April) was lacklustre as its growth fell to 2.8
per cent from 23.2 per cent in the corresponding period last year. Noticeable decline was witnessed in the
production of buses and tractors. Although the production (assembling) of cars increased by 3.6 per cent last
year, it failed to meet the burgeoning demand due to introduction of new brands, rising inflow of remittances
and decline in import of CKD cars to 29,000-in 2001-02 (July-March) from 50,000 in 2000-01 or by 44 per
cent. This resulted in delay in the delivery of cars by the assemblers which led to the premium prices of upto
Rs. 125,000 per unit. There was even talk of import of second hand cars recently to ease the pressure.
Automobile is the most protected industry with effective rate of protection ranging between 701 to over 5000
per cent. Against the estimated domestic demand of 100,000, the local assemblers have not produced beyond
40,000 cars.

The decline in the tariff of car in the new 2002-03 budget has to be seen in the above perspective. Finance
minister Shaukat Aziz in his budget speech said: The duties on import of vehicles are extremely high and thus
there is no import of vehicles. The sense of lack of competition tempts the local manufacturers to be costly and
less quality conscious thus jeopardising the legitimate interest of consumers. In order to create an environment
of efficiency and competition', import duties were reduced by 25 percentage points on cars upto 1000cc, 20
percentage points on cars uptc 1500cc, 25 percentage points on cars upto 1800cc, 50 percentage points on cars
over 1800cc and from 105% to 75% on motor cycles. Now the duties on cars range between 75% to 200%.
The government has simultaneously abolished withholding tax on cars used for more than ten years.

Finance minister in his post-budget press conference observed that reduction in customs duty on cars was a
message for the local manufacturers to rationalise prices and maintain quality. According to him, the
government would encourage investment in this sector but not at the cost of quality and prices.

The above move is likely to result in some trimming of profit as this is a clear warning to the local assemblers.
The reduction in duties will help the consumers to afford a car as the assemblers had created a monopoly and
were playing havoc with prices. Chairman, All Pakistan Motor Dealers Association, H.M. Shahzad remarked
that the government has finally realised the grievances of common man by cutting import duties. The
Association had proposed over 50% cut in import duties to achieve the aims of the finance minister. The
decision, according to Shahzad, will inflict a jolt to the cartel of car makers to enter into competition with
foreign assembled cars. Car dealers termed the import duty cut as a mere eye wash as it is a step to just change
the behaviour of local assemblers instead of encouraging car imports. Their argument is that the import of cars
on new duty structure is not feasible as the cost of imported Alto 800cc is Rs. 650,000-700,000 compared to
local assembled 1000cc car of Rs. 50,000.

On the other hand, Pakistan Automobile Manufacturers Association (PAMA) resented the government's
decision of slashing the import duty saying it will be a setback to the progressive manufacturing of vehicles in
the country. PAMA Chairman Kunwar Idris said that the move will discourage the foreign investors besides
hitting more than 500 parts makers who employ over 100,000 people. He argued that the existing duty
structure should continue for at least three mare years to enable the industry to grow. He also deplored the
statement of the finance minister on quality of cars.

Suzuki Motorcycles Pakistan Ltd. announced that there is no possibility of reducing the price of locally
manufactured motor cycles as a there is no change in the manufacturing cost. Criticising the budget which
carried no relaxation in customs duty and sales tax for locally manufactured motor cycles, Suzuki officials said
that import duty of spare parts under CKD remains 25% while import duty on motor cycles has been slashed.
The same argument holds true for the car manufacturers.

The prices of cars in Pakistan are higher than in India because of disparity in the exchange rate (PRs. 60.16
compared to 1Rs. 48.80 per US$) by 23 per cent, higher production (640,000 in India versus 40,000 in
Pakistan) and difference in the duty structure. Therefore, these factors should be taken into consideration while
making comparison.

According to a report, about 850 vendors are engaged in manufacturing of different parts! components of the
vehicles employing over 100,000 persons directly and 300,000 indirectly. The deletion (indigenisation)
programme ranges between 45 per cent to 86 per cent. Auto parts worth $30 million are annually exported but
the export of car is negligible because of poor quality and higher cost.

In the latest move after the budget, the government has reportedly decided to charge maximum rate of customs
duty on the vehicles parts imported for assembling as per shortfall in the deletion programmes of Original
Equipment Manufacturers (OEMs) for automobiles during 2000-01. The manufacturers (assemblers) have
availed concessionary rates of duty on the import of parts/components prescribed for the deletion programme.
However, manufacturers who failed to achieve the specific percentage of deletion programme would be
charged duties at maximum rates meant for shortfall in the deletion programme. The automobile manufacturers
have termed the move by Engineering Development Board to charge maximum duty on spare parts an attempt
to close down the entire auto industry. The rate of duty on CBU cars soars to 200 per cent compared with the
concessional rate of 25 per cent. Imposing such a heavy duty would severely hit Indus Motors, PakSuzuki,
Honda Atlas, Dewan Motors and Raja Group who are producing Toyota, Suzuki, Honda, Santro, Kia and Fiat
cars with foreign collaboration. They have invested billions of rupees and are all equity holders. The
manufacturers have stated that of late the Engineering Development Board is finding novel ways to extort
money by resorting to the imposition of such heavy duties.

The fact is that the imported car under the revised duty is costlier by more than 30 per cent. The duty structure
has to be correspondingly slashed so that imported vehicles are no more costlier than assembled ones, argue
the dealers. Yet, on the other hand, in such a case assemblers would feel frustrated leading to disruption in
production (assembly) and a serious jolt to the industry which is still in a state of infancy needing protection or
rather over-protection. A gradual reduction in import duty on both CKD (20%) and CBU cars (by 30%) in the
subsequent years will be a right strategy in order to pre-empt the knee-jerk reaction following a massive cut in
import duty of CBU cars. After all, 2005 is not far off when in accordance with the WTO ruling, there will be
no duty on consumer items. This means that CBU cars will be imported duty free and local assemblers will
have to compete with them in a radically changed environment. This is a situation of "do or die".

The interests of all the players namely government, assemblers vendors and consumers have to be kept in
mind. According to a daily as the automotive assembly serves as the backbone for the engineering sector, the
government has to play a balancing act between the interest of consumers, generation of employment,
incentives for foreign investment and a breakthrough in engineering exports".LAHORE, Nov 25 Asia Pulse
- Yamaha Motor Company (YMC) set new-all-time records in total sales, operating income, ordinary income
and current net income in the first half of 2004. General manager marketing Takahiko Goan disclosed this
while addressing a press conference here on November 23.
According to him, due to a change in YMC's accounting process, the year 2004 would be accounted as a
special in 9-month of the year in the period from April to December 2004. He said original consolidated sales
forecast had been adjusted up to 6.5 per cent increase at US$9.3 billion while operating income and our
ordinary income forecasts had also been adjusted up to 22.8 per cent.

The Yamaha Motor group presently had 60 factories in 35 countries, and they operated as truly global
corporate group in which 80 per cent of their consolidated sales came from markets outside Japan.
In their motorcycle business in particular, they consider the Asian markets to be especially important because
there motorcycle was an essential part of people's lives and the Yamaha name was recognised as a leading
maker, he claimed.
He disclosed the motorcycle demand for the Asian market was 24.6 million units. The forecast for that year
was up 4 per cent to 25.6 million units and it was believed that growth in overall demand would continue.
Within that trend, the Yamaha Motor group shipped a total of 1.73 million motorcycle units to the Asian
markets in 2003 which represented a growth of 30 per cent year-on-year while for that year they predicted a 28
per cent growth to 2.21 million units, he added.
Dawood Yamaha Limited (DYL) Chief Executive Officer Yunus Dawood said motorcycle demand
inPakistan had increased to 300,000 units, while Yamaha had a 25 per cent market share. Following
establishment of Yamaha Town Lahore, the DYL had introduced a new concept based on innovations.
The objective of that Town was to acquire and share information by learning from customers and improving
their own skills.
As far as the common man's pocket is concerned, foreign investment in this sector will definitely bring relief
because of attractive prices ranging from Rs. 20,000 to Rs. 35,000 in categories of 50cc to 70cc. But the
question which remains unanswered is whether the new companies will take the market by storm or receive a
lukewarm response. An automobile analyst says that technologies in vogue in Turkey, the Czech Republic and
China, mainly 'Moped", does not suit the environment of our country but at present the price factor is a hot
issue, no matter what technology is offered by the companies.
The production of two-wheelers, which was around 112,950 in 1991, fell to 110,040 in 1992 and 101,140 units
in 1993, plummeted to 76,000 units in 1994 a decline of 32 per cent compared to 1991.

Honda has always enjoyed t he position of market leader, which now stands at 55 percent, followed by 37 per
cent for Yamaha and a paltry 5 per cent for Suzuki, Vespa, a popular brand of yesteryear, had been facing
setbacks for the last 6 to 8 years. Motorcycle analysts attribute its misfortune to the company's lethargy in
introducing new models in the market, it still relies on its late 80's model.
Analysts term 1995 as the year of new entrants and feel that the government is attracting more foreign
investment in this sector than it can absorb. It should announce a concrete package before existing firms are
forced to pull down their shutters. Kawasaki had already wound up its business. It may be recalled that the late
80s saw some engineering endeavours by some motorcycle mechanics, specially in Ranchore Line area, to
recondition old famous models, but as finishing was wanting, it failed to attract the buyers. The most probable
reason for failure was the price factor as the Japanese assembled machines were available at attractive prices.

PRICES

The price of the two wheeler has been witnessing a constant upward trend for the last two years and the
chances of a person with modest means to purchase one has dwindled manifold. In this bleak scenario a ray of
hope for the buyers has emerged, following the arrival of new private companies in this field. Mainly because
of the affordable price structure, the prospective buyers of two-wheelers, perturbed over the persistent price
hike in the existing brands, are anxiously awaiting the new machines. In this backdrop, the government's plan
to boost private investment in the auto engineering sector seems somewhat perplexing to motorcycle
manufacturers who fear they are losing marketshare and business, which they complain is in the red.
Meanwhile, it will be interesting to see how new entrants survive in the cut-throat competition and how far
they succeed in attracting customers with their galaxy of new models? On the other hand, a sizeable demand
for motorcycles still exists in the market and buyers procrastinate due to the high prices of existing brands.
Existing manufacturers should accept the challenge and welcome the new entrants, because there must be a
reason behind the government's policy which seems to be aimed at encouraging the private sector in the auto
engineering sector. One thing is certain, that the price factor, which is at least 50 percent lower than for the
existing makes, may prove a trump card for new companies to draw buyers, but technology-wise they have yet
to prove themselves.

As far as the common man's pocket is concerned, foreign investment in this sector will definitely bring relief
because of attractive prices ranging from Rs. 20,000 to Rs. 35,000 in categories of 50cc to 70cc. But the
question which remains unanswered is whether the new companies will take the market by storm or receive a
lukewarm response. An automobile analyst says that technologies in vogue in Turkey, the Czech Republic and
China, mainly 'Moped", does not suit the environment of our country but at present the price factor is a hot
issue, no matter what technology is offered by the companies.
Two chief executives of private companies, confidently assert that their attractive price package will change
the complexion of motorcycle market in a few months. However, the existing companies, [TABULAR DATA
OMITTED] by introducing new models with a slight increase in prices and some mechanical changes and
improved appearance. The popular Honda CD-70 cc which was available for Rs. 29,800 about two years back,
is now priced around Rs. 47,500 while the 125 cc CG-125 saw an increase of Rs. 21,800 during the last two
years and is now selling for Rs. 57,000.
Suzuki increased the price of its 80 cc version the Samurai by Rs. 575. Ninja Master named Shogun by Rs. 460
and Yamaha YB-100 Royale by Rs. 1,000. They are now costing Rs. 43,000 and Rs. 47,500 respectively.
Ninja SR maintained its price at Rs. 48,990. A market survey reveals that brand new models are not easy to
sell, especially in Karachi. However, they have received a good response upcountry but not to the extent like
they used to some two years back.
A natural corollary of the new meteoric rise in the prices of new motor cycles is that more and more people are
turning to buying second-hand older models, meanwhile dealers of second hand two-wheelers at Akbar Road
have increased prices due to a large number of buyers that now prefer to purchase used motorcycles.

It has been observed that most buyers, keeping in view their budget, have shown preference for buying a new
two-wheeler but the escalating prices for the more popular models does not allow the buyers to own one. In the
last one-and-a-half years, the prices of two-wheelers registered a steep rise of 60%, while motorcy
ISLAMABAD, August 03, 2010 (PPI): The production of motorcycles in the country crossed one million units
during the first eleven months of recently passed fiscal year 2010-11.Pakistanautomobile brand members
dominated by Japanese brands accounted for over 670,000 units while the non-members, mostly Chinese
models produced over 400,000 units from July-May (2009-10), according to Engineering Development Board
(EDB).Chinese motorcycles are making fast inroads in the local market against the Japanese brands, the EDB
sources said. Honda with sales of over 438,028 units till May this year was on top, followed by Yamaha that
produced 113,288 units, the sources said while quoting Pakistan Automobiles Manufacturing Association
(PAMA) statistics. The sources said that even in PAMA members, the next three largest producers are local
brands using Chinese technology, adding that each of them produced more units than the Japanese brand of
Suzuki. On the top is Hero that has produced 31,210 units till May and enjoys 4.5 percent share in the PAMA
production, the data revealed. The production of the company grew by 69 percent against 18,388 units
produced in 2008-09, they said adding that only eight local, Chinese brands and three Japanese brands were
PAMA members. The Chinese motorcycle producers have cumulatively produced over 114,000 motorcycles
this year the total motorcycle production is estimated by the industry circles at around 1.1 million units this
year. The sources said that more than 56,750 Japanese motorcycles rolled in during the first 11 months of the
fiscal year 2009-10 adding that the local brands with Chinese technology produced 514,000 units, including
around 35,000 three wheelers. The high deletion in motorcycles has facilitated the local entrepreneurs to
launch their own brands, they added. The Chinese were more liberal in transfer of technology than the
Japanese, they said adding at the start of this century, 99 percent of the market share was with the Japanese
brands which shrunk to 51.5 percent, while the local Chinese brands have a share of 48.5 percent. Localization
of almost all part has also made the local rates immune from ycle mechanics have raised the cost of repair and
servicing by 20%.

KARACHI, September 08(PPI): The Japanese bike-makers have begun slashing the prices of their products to
attract more buyers. The move is aimed at improving market share and customer base at a place overjoyed
over entry of the Chinese bikes (local and imported).
Following a cut of Rs2,000 in the CG-125 and Rs4,000 in the CD-70 prices by the Atlas Honda Limited on
Monday, the Dawood Yamaha Limited (DYL) too joined the league on Tuesday by announcing a reduction of
Rs2,000-3,300. The Suzuki Motorcycle Pakistan Limited (SMPL) is most likely to declare a similar cut, in a
day or two.
In last one and a half years, the Japanese bike-manufacturers have been making downward adjustments in their
prices. For example, market leader Atlas Honda has reduced price of the CD-70 by Rs14,500 to Rs54,000
from Rs68,500, while the CG-125 price has been brought down to Rs71,000 from Rs78,500.
Market people link the cut by Honda, Yamaha and Suzuki to the entry of Chinese bikes which created a
healthy competition, thus proving beneficial for the end-users to select the bikes as per their pockets and
savings.
They said that why the Japanese bike makers did not cut the prices when they had the monopoly. They literally
kept the demand and supply gap in their hands, knowing that people were bound to buy costly bikes to meet
their needs.

Besides, high prices of the Japanese bikes were also a factor in keeping away prospective buyers. They added
that the sales of Japanese bikes had picked up due to price cuts, although their balance sheets were showing
negative sales figures. Gone are the days when Honda, Yamaha and Suzuki had virtually ruled the Pakistani
roads. Time has now changed. Chinese bikes of various names are now running side by side with the Japanese.
The Japanese bike-makers had smelled that the Chinese bikes were further gaining popularity in the last few
months due to the entry of new models at cheaper price. In order to lure more buyers towards the Japanese
bikes, price cut was the only tool to attract them.

With the latest cut, the gap between the Japanese and the Chinese bikes of popular 70cc model has shrunk to
Rs15,000 which used to be Rs20,000-25,000. Chinese bikes are still cheaper by Rs15,000 as compared to their
competitors.

sadia_nawaz@ymail.com11282010.