KARACHI, May 23: Two more motorcycle makers have reduced the prices by Rs3,000-10,000 in the last few days.

Yamaha YB-100, Excellence and YD-100 are now priced at Rs61,800, Rs62,500 and Rs63,300 after a reduction of Rs10,000, an executive in Dawood Yamaha Limited told Dawn.

Similarly, Suzuki Motorcycle Pakistan Limited (SMPL) have also decreased the prices by Rs3,000-9,000 in its four models. The 100cc Shogun is now available at Rs61,800 as compared to Rs68,287, while SR-21 model (two stroke) can now be purchased at Rs69,000 as compared to Rs76,061. The SD-110 and Flash 110cc bikes (four strokes) are now tagged at Rs64,186 and Rs76,500 as compared to Rs73,186 and Rs79,500

Last week, Atlas Honda Limited had also cut prices of 70cc models to Rs58,500 from 68,000, besides cutting Rs10,000 on CG- 125 model.

All the three Japanese players have been enjoying a boom period both in sales and production during the current financial year. Production in July-April 2002-2003 went up by 28.5 per cent to 124,926 units from 97,192 units in the same period of 2001- 2002. Sales in the last 10 months jumped by 29 per cent to 126,230 units from 97,878 units.

A Japanese bike assembler attributed the rising sales to good economic conditions, consistency in policy, good crop and cheaper consumer financing by banks and leasing companies.

However, market sources said the entry of cheaper Chinese bikes have virtually forced the Japanese bike assemblers to slash prices in anticipation of erosion in market share. Despite cut in prices by Japanese motorcycle makers, Chinese bikes are still cheaper as compared to Japanese bikes.

A Chinese bike assembler said that he along with other producers had succeeded in showing to masses that open competition and role of small and medium manufacturers with concerted efforts could bring realistic change in the policies and prices of monopolistic producers.

He said both Chinese and Japanese assemblers were getting 85 per cent parts and raw material from local vendors and the rest of 15 per cent is being imported then why there was a huge difference in price for only 15 per cent of imported items.

The assembler said Chinese bike makers were selling their products at market price of global level but they were being accused of under-invoicing whereas Japanese bike makers, despite charging high prices, were never subjected to the over-invoicing.

Meanwhile, a Japanese assembler said that dumping and under-invoicing of parts by Chinese bike makers had gained momentum and that was why Chinese assembled bikes were cheaper as compared to Japanese bikes.

He said the government should ensure and check that the new entrants should produce parts locally and not procure through smuggling, dumping, under-invoicing or through import of spare parts and sell at the cost of local industry. “There must be a level playing field for every assemblers”, he added.

He did not agree that the Chinese bikes have been posing great competition to the old market players. “Our rising sales is the only answer that Japanese bikes still dominate the market as compared to cheaper bikes,” he added. He said Chinese bikes could not compete with Japanese bikes and Pakistani consumers had now started realizing that it was better to pay higher prices to buy quality bikes rather than low priced bikes with poor quality.