KARACHI, May 27: Four assemblers of relatively cheap Chinese motorcycles are reporting inventory build up because the Sindh Excise and Taxation has stopped registration of these two wheelers for the last many weeks bringing a halt to sale.

For the last three months consumers are enquiring about these motorcycles in the market but cannot buy it due to non- registration of these bikes by the government department. A sizable stock of these bikes are piled up at the showrooms.

“We have already issued instructions that the department would not register those bikes unless their manufacturers get the licence from the Engineering Development Board and Pakistan Standard and Quality Control Authority,” an official in the Excise and Taxation Department said.

The department has not received any notification from the Ministry of Industries to register these bikes.

As many as four assemblers have made an average investment of Rs30 million to set up plants at various areas of Sindh to roll out 70cc bikes by name of Rocket, Gaungta, Jinan and Super Star. Around 30-40 persons have got direct employment in each plant, besides creating a large number of jobs indirectly.

One of the assemblers of these bikes, whose head-office and sales office is located at Akbar Road, told Dawn that the four companies had entered into a technical collaboration agreement with the Chinese companies. He also provided copies of that document. Under the agreement, they are importing 30 per cent parts from China, while 70 per cent parts are being managed through local vendors.

He said that prices of these bikes ranged between Rs40,000 and 42,000 as compared to same engine capacity bike being offered by Japanese assemblers at Rs69,000.

He said Chinese assemblers had approached President Pervez Musharraf recently, apprising him that the Ministry of Industries and EDB were creating problems for them since the assembly of Chinese bikes had started few months back. These departments have asked the Excise Department not to register Chinese bikes.

He said that assemblers had submitted deletion programme in September 2001, completed formalities of PSQCA in November 2001, obtained trade mark certificate, national tax registration certificate, sales tax registration certificate and import and export certificate.

He said that the move to block the registration of Chinese bikes had been initiated by Japanese assemblers, who fear sizable erosion of market share. He claimed that the quality and durability of the engine has been same as Japanese assembled bike and customers continue to enquire about Chinese bikes.

Prior to entrance of Chinese bikes, consumers had been paying higher prices to buy Japanese bikes as they had no choice but to rely on just three models like Honda, Yamaha and Suzuki. Arrival of Chinese bikes has caused a stir in the market. Besides, these four models — consumers had also seen arrivals of new Chinese models like Hero, Sohrab, Qingqi and Pak Hero.

But, Karachi Motorcycle Dealers Association (KMDA) president Mohammad Naeem Qureishi has a different view, claiming that these Chinese assemblers have no approved deletion programme.

“In Pakistan there are at least 14-15 so called in-house units, producing these kind of Chinese bikes,” he said, adding out of 15, four or five units are being operated in Sindh.

Dealers of Chinese bikes are now targeting the innocent buyers, arriving from interior of Sindh, to purchase these bikes as there is no restriction on registration in that area and people move freely on these bikes in villages and towns, Naeem said.

A consumer usually enters the Akbar Road in search of a used bike, costing Rs30,000 to Rs45,000 per unit, but he suddenly drops the idea after watching new Chinese bikes at prices ranging between Rs40,000-42,000. But the consumer actually finds himself in trouble when these sub-standard bikes start giving trouble, he said.

The only solution to give a tough time to Chinese bikes is the introduction of low cost bikes at Rs50,000 by the Japanese assemblers so that customers have a wider choice to own a bike at cheaper price.

He was of the view that if the snatching and theft of bikes were controlled — sales of bikes would go up immediately. He said an average 10 bikes were hijacked every day with a slow recovery of one or two bikes.

Some leasing companies have entered in the market by offering a bike at advance down-payment of Rs25,000 with full insurance cover. Leasing has pushed up some hopes among bike lovers despite the fact that the two-wheeler costs a bit more when the payment procedure expires in one to three years of time.

Naeem urged the government to take measures in controlling the snatching and theft incident in the city so that a general consumer can move freely on the roads.