Motorcycle industry : New entrant policy termed ‘disaster’
Staff Report
ISLAMABAD: Pakistan’s motorcycle industry here on Monday termed new entrant policy for new motorcycle manufacturers as a disaster for the existing industry and warned that this would result in promoting organised sector into an unorganised sector.
The representatives of the motorcycle industry informed a selected group of reporters that the new entrant policy is being formulated to benefit one new manufacturing company, which intends to manufacture motorcycles above 100cc.
The representatives of the industry were of the view that the policy would not benefit the company being rewarded at the cost of the existing industry as it would only hurt the expansion in the existing industry. They were of the view that at a time when motorcycles are being sold at $110 to $1,200 in other countries, due to localisation of parts in Pakistan motorcycles are being sold at less than $500. Localisation has benefited the consumers in Pakistan and new entrant policy will promote imports and would have a very negative impact on localisation efforts being made by the existing industry. The country would turn into a trading hub if the proposed policy is approved and implemented as local players would prefer importing motor cycles rather than manufacturing them locally.
The proposed import tariff for new entrants has been proposed at 5.0 percent against the 65 percent for others who would be importing motorcycles in Completely Built Unit (CBU) condition.
They feared that existing manufacturers of motorcycles would get themselves as new entrants and would like to benefit from import tariff incentives proposed in the policy and local vender industry, which has already achieved localisation up to 93 percent in 70cc would get hurt badly along with loss of thousands of job opportunities in the country.
ISLAMABAD: Pakistan’s motorcycle industry here on Monday termed new entrant policy for new motorcycle manufacturers as a disaster for the existing industry and warned that this would result in promoting organised sector into an unorganised sector.
The representatives of the motorcycle industry informed a selected group of reporters that the new entrant policy is being formulated to benefit one new manufacturing company, which intends to manufacture motorcycles above 100cc.
The representatives of the industry were of the view that the policy would not benefit the company being rewarded at the cost of the existing industry as it would only hurt the expansion in the existing industry. They were of the view that at a time when motorcycles are being sold at $110 to $1,200 in other countries, due to localisation of parts in Pakistan motorcycles are being sold at less than $500. Localisation has benefited the consumers in Pakistan and new entrant policy will promote imports and would have a very negative impact on localisation efforts being made by the existing industry. The country would turn into a trading hub if the proposed policy is approved and implemented as local players would prefer importing motor cycles rather than manufacturing them locally.
The proposed import tariff for new entrants has been proposed at 5.0 percent against the 65 percent for others who would be importing motorcycles in Completely Built Unit (CBU) condition.
They feared that existing manufacturers of motorcycles would get themselves as new entrants and would like to benefit from import tariff incentives proposed in the policy and local vender industry, which has already achieved localisation up to 93 percent in 70cc would get hurt badly along with loss of thousands of job opportunities in the country.
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