KARACHI, March 18: Imported Chinese bikes have started finding their way into the markets and consumers have now become a bit crazy to buy these bikes despite the fact that it is slightly costlier as compared to locally assembled Chinese bikes.

Selected dealers at main Akbar Road were demanding Rs47,000 to Rs48,000 for imported bike, while a locally assembled Chinese bike was selling at Rs42,000-45,000 per unit.

As there was no restriction on the registration of imported bikes with the Excise and Taxation Department — consumers were now preferring to purchase these bikes as compared to locally assembled models as some locally made models were still not allowed registration at the government’s department.

Imported Chinese bikes are being landed at a cost and freight (C&F) Karachi price of $280 per unit for 70cc. After payment of 90 per cent import duty — the final cost comes near to Rs40,000-Rs42,000 per unit (excluding company’s profit and dealers margin), a dealer at Akbar Road said.

In the 2002-2003 budget, the government had curtailed the import duty on bikes to 75 from 90 per cent but on the pressure of Japanese assemblers the import duty was reverted to 90 per cent just after two months.

Chinese assemblers had been fighting with various government departments like Engineering Development Board (EDB) for the last one year over various issues. Moreover, the Excise and Taxation Department had stopped the registration of Chinese assembled bikes last year. However, two months back, locally made bikes of three companies had been allowed the registration while two were still waiting.

Consumers’ shift towards cheaper mode of transport reflects that the demand of two wheelers is rising and the entry of Chinese bikes have provided some relief to the price conscious buyers who are unable to pay over Rs70,000 for a Japanese assembled bike.

Patron-in-Chief, Sindh Motorcycle Assemblers Association (SMAA), Anwar Iqbal said besides various bottlenecks at government level, spare parts makers’ body Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) was also reluctant to give membership to Chinese spare part makers in the country.

He told Dawn on Tuesday that this kind of negative environment has prompted the importers to import bikes in completely built up units (CBU) from China due to the local industry, who has invested more than Rs500 million, now feels unsafe.

Some 2,000-3,000 Chinese bikes had found way into Pakistan last month and consumers were buying them with fervour, he added.

Besides affordable prices of Chinese bikes, attractive leasing options and packages offered by some leasing companies and banks have also played a major role in boosting up demand of bikes.

Market is abuzz with the news that local assemblers are making sub-standard motorcycles and lack any quality as compared to Japanese brand. Even the importers of Chinese bikes are busy in under-invoicing.

A dealer of imported bike rejected this notion saying that importers are paying full duties and taxes after paying C&F Karachi cost of $280 per unit for 70cc and the quality of Chinese bikes is equally good as against Japanese bikes.