Cheaper Chinese bikes are giving the Japanese a tough time in Pakistani markets
CONSUMERS are now making a beeline for cheap, affordable Chinese products available in the city, despite knowing the fact that they lack quality and durability as compared to their Japanese and Korean counterparts.
Electrical and electronic items, battery cells, children clothes, toys, stationery, watches, shoes, telephones etc., have already attracted a sizable number of buyers owing mainly to low price factor.
Likewise, the entry of Chinese motorbikes has turned out to be the source of new excitement for the general public who have now virtually gone crazy in order to own these cheaper two wheelers without keeping in mind their quality.
Akbar Road, the main hub of used and new motorcycles, is now wearing a festive look owing to presence of numerous buyers who now appear a bit confused these days as a result of flood of designs and a price war among the leading producers of these bikes.
The cheaper price factor, coupled with a galore of designs and varieties, sparkling colours, electronic display of gear ranking, alloy rims, remote control and self start system, fuel consumption display, engine temperature, stylish lights and indicators and stylish petrol tank designs — have lured the consumers who were previously at the mercy of three, locally assembled Japanese bike makers being rolled out at high prices.
But there are a number of queries to be asked. Like, are people really satisfied with the quality of Chinese bikes? Will this bubble, being enjoyed by Chinese bikes, burst in a year’s time? Have the imported and locally assembled Chinese bikes succeeded in carving out a niche of the market because of affordable prices? What difference buyers feel about the locally assembled Chinese bikes as compared to imported ones? Do buyers still reckon the technological superiority of the Japanese bikes?
These are some of the pressing questions that need to be answered and must be checked in the market.
To some extent, it is a fact that the quality of locally assembled Chinese bikes is quite mediocre as compared to Chinese imported bikes.
“It is true that the locally assembled Chinese bikes lack quality and durability as compared to imported ones. They are definitely no match for the Japanese assembled bikes as well,” a dealer of locally assembled Chinese bikes, Mohammad Yousuf says without any hesitation.
“Consumers generally complain about engine vibration, low quality and problems in jumps and poor quality of colour. Chinese bike manufacturers are also not using good quality spare parts in the bikes,” he continues. “There is no complain about imported Chinese bikes. Because of their quality and durability they enjoy an edge over the locally assembled bikes.
“Despite these concerns — people are happy to purchase both local and imported bikes mainly due to the low prices and a variety of designs,” concludes Mohammad Yousuf.
President Sindh Motorcycle Assemblers Association (SMAA), Mohammad Sabir Shaikh also admits the stark reality about the average quality of locally assembled Chinese bikes. He claims that local assemblers are trying hard to improve their quality and consumers will not find any problems in locally assembled bikes in the coming months.
Despite a drawback of quality, seven local producers have managed to roll out around 70,000 units in 2002-2003 that clearly shows the prevailing market price of locally assembled Chinese 70cc bikes, ranging between Rs41,000-43,500, has succeeded in catering to the needs of low income group people.
Akbar Road is currently flooded with imported Chinese bikes like Jianling, Guangta, Sakai, Moon Star, Sinski, Kington and Road Star in the 70cc to 150cc category, with prices hovering between Rs41,000 to 68,000.
Currently there are seven local assemblers of Chinese bikes namely — Superstar, Metro, Hero, Star, Pak Hero, Qingqi and Sohrab offering them in the 70cc to 100cc category in prices ranging from Rs37,000 to 44,000.
Chinese bikes are still Rs20,000 to 25,000 cheaper despite a cut of Rs7,000 to 10,000 made by Japanese bike assemblers few months back.
Some consumers, who were busy in buying the Chinese bikes, said they had been waiting for the arrival of cheaper bikes since they could not afford to take the costly ride by purchasing costlier Japanese assembled bikes. About the quality of bikes, they said, they know about it but were happy to own a bike at cheaper rate.
“Low price, low quality — high price, high quality,” another buyer quips, adding that imported bikes are far better than locally produced bikes in terms of quality and designs.
To a query why he is not purchasing a Japanese assembled bike, he says it is really too expensive. The difference of Rs20,000 to 25,000 really makes a difference in the life of a low and middle income group people. As far as quality with Japanese bikes is concerned, he says one has to sacrifice something to acquire another. According to this buyer, either you choose quality by purchasing Japanese bike or save Rs20,000 by buying Chinese bikes. He says, “to some extent I am taking a risk on the quality but as far as designs and other additional features are concerned, which Japanese bikes lack, I am happy to make a right decision.”
Another consumer added, “If a Japanese bike has a life of 10-15 years then rest assured that Chinese bikes would fare well for at least eight years or more.
“Actually things are changing. People are adopting and changing their lifestyles and are in search of new designs,” he says while referring to decades old designs of Japanese bikes which have not yet been changed despite stiff competition and price war. Two leading Japanese assemblers have been busy in changing stickers on petrol tank and side covers in the last 10 years. “Can this be termed as a change in model every year?” another consumer asks.
The shift of buyers towards Chinese bikes clearly shows that the highly price conscious Pakistani buyer is also going for new looks.
Market observers say that Chinese bikes would have not come with a bang if the prices of Japanese bikes had not been so high. They say that sales of Chinese bikes may receive a jerk if prices of Japanese bikes are further slashed down.
Somehow, the advent of Chinese bikes has changed the look of Akbar Road. Dealers, who used to close shop at 7pm are now doing brisk business and pull down the shutters at 10pm.
Akbar Road used to have a total 125 dealers two years back out of which 100 used to deal in secondhand bikes. “Today, 70 out of 125 buyers are engaged in selling fresh Chinese, locally assembled and imported bikes, while the rest deal in used-bikes,” says president SMAA. Used-bikes dealers have switched over to Chinese bikes and even invested money and given a fresh look to their shops.
Sales of used bikes particularly at Akbar Road has plummeted by at least 40-50 per cent as buyers ponder, should they opt for a 1992 Honda CD-70 or should they go for a new Chinese bike, both of which cost Rs40,000.
Still, for all the fervour of the Chinese bikes, Japanese producers have been able to produce and sell more than a 160,000 units, bother in 2002-2003 as compared to 120,627 and 120,083 units in the corresponding period, the years before. Comparative figures show that Honda production and sales stood at 115,924 and 117,201 units in 2002-2003 as compared to 90,111 and 89,997 units in 2001-2002. Dawood Yamaha production and sales recorded at 27,427 and 27,886 units as compared to 22,444 and 22,024 units. Production and sales of Suzuki stood at 13,610 and 13,788 units as compared to 8,072 and 8,062 units respectively.
An authorized dealer of Japanese bikes, confidently said that Japanese bikes still dominate the markets due to their technological superiority and quality. Quality conscious buyers are still looking for Japanese made bikes and sales and production figures are portraying the buyers’ trust on Japanese bikes.
Said the SMAA president, “The jump in sales has come due to cut in price by a few months ahead of closure of 2002-2003 coupled with availability of leasing and financing schemes through which people are availing new bikes.”
If the positive economic indicators persist in the current fiscal and buying euphoria maintains the pace — demand of bikes for both Chinese and Japanese will reach to 500,000 units by the end of current fiscal year. Production of Chinese bikes may reach 150,000 units by the end of current fiscal from 70,000 in 2002-2003.
Chinese bike makers have individually invested around Rs40-50 million each by giving direct job opportunities to at least 100 people in each unit besides creating jobs for vendors.
Currently seven units (two in Hyderabad, two in Lahore and one each in Karachi and Gujrat) are busy rolling out cheaper bikes, while another three to four units are awaiting clearance from the Engineering Development Board (EDB) to commence production.
Cheaper Chinese bikes are giving the Japanese a tough time in Pakistani markets 
