Honda Motorcycles Declares Pakistan As Development Hub For 70cc Motorcycle

By Author: ajmalazeem
Total Articles: 9
Comment this article

In every country, the development and progress of its automotive industry largely depends on the per capita income. In countries, where economic situation are not very well and GDP growth is low, their automotive sector becomes more competitive which eventually leads to growth and expansion. In Pakistan, according to Bureau of Statistics, the annual GDP per capita income is US $1290 which is much lower as compared to developed nations. However, the Auto Industry Consultant state that when per capita income of Pakistan reaches the fence of US $3000, the Pakistani auto market will experience a change in consumer behaviour, which will go for both luxury bikes above 250cc and trendy bikes like scooties and so on.
High economic conditions increase the standard and manner of living of people which ultimately lift up the demand of more higher and advanced vehicles.

The shift from motorcycles to cars in Pakistani market will start becoming visible when per capita income will touch US $3000 to $4,000 marks. At that stage the motorcycle market will also shift from a necessity market somewhat a pleasure or sports oriented ...
... market. This transformation will start bringing in higher CC motorcycles into Pakistani market.
He said that The basic benchmark that Pakistani motorcycle industry has achieved is around 100 percent localisation, which has not only helped it to keep the price to a reasonable level as compared with region and also to gain ground in foreign markets like Bangladesh and Sri Lanka while South Africa and Iran are being explored.

The Honda Japan recently declared Pakistan, as a hub for 70cc technology in the region. In Pakistan local assembly of motorcycles started in 1964 when Atlas Group put up assembly facilities in Karachi to assemble Honda motorcycles. Initially, the market was dominated by Japanese brands Honda, Yamaha and Suzuki. The market experienced a major breakthrough in the late 1990's with the advent of assemblers that sourced their CKD and parts through China - hence the phrase "Chinese Manufacturers". At present ie in 2013, there are around 100 assemblers in the country. Out of these around 81 are active assemblers. The popular 70cc brand still carries more than 80 per cent of the market share.
The tariff structure of a country also is a major determinant of the progress of this industry. For instance, countries like China and India etc are charging 90 percent to 100 percent duty on CBU imports of automotive vehicles. This policy provides competitive grounds and economies of scale to local producers.

On the contrary, the countries that give access to their local markets through tariff liberalisation, cannot provide protection to their local industry against the flux of foreign products and hence their local industry cannot grow at all. It largely depends upon the priorities of the government, whether to develop the auto industry locally or to rely on imports. The entire debate lies in the fact that with the change in the economy the change in the bike industry is likely to be considered, he maintained.

manufacturer Auto Spare Parts
Auto Parts
Spare Parts
Auto Spare Parts
Automotive
Plastic
automotive parts