KARACHI, Nov 25: The entire auto sector gave a mixed performance during July-October 2003 with notable increase in production and sales of motorcycles, tractors and trucks. However, production and sales of light commercial vehicles (LCVs) and buses declined.

In presence of tough competition with Chinese motorcycles — both imported and locally assembled — total production and sales of Japanese bikes (Honda, Yamaha and Suzuki) surged by 70 and 67 per cent, respectively, in July-October 2003, thus giving an impression that consumers are not inclined to compromise on quality and are willing to pay Rs25,000 extra. Japanese bikes are priced higher by Rs20,000 to 25,000.

Honda remained in the lead with production and sales, hitting 60,646 and 60,325 units as compared to 36,162 and 36,631 units in July-October 2002, showing that the company enjoys over 75 per cent market share in two-wheeler segment as compared to Yamaha and Suzuki.

Some Chinese bike members have also started becoming member of the Pakistan Automotive Manufacturers Association (PAMA). After Sohrab and Tri Wheeler companies makers of Qingqi bikes have also acquired the membership of PAMA.

With absence of August figures — Qingqi bike makers achieved production and sales target of 3,945 and 3,920 units, respectively, in July-October 2003. Makers of Sohrab produced and sold 3,856 and 4,091 units in July-October 2003. The company had produced 6,801 units in July-June 2002-03, says figures compiled by PAMA.

If total production and sales of motorcycles (both Japanese and Chinese) are taken then production and sales surged by 82 per cent (89,651 units) and 104 per cent (89,834 units) if compared to 49,098 and 48,479 units, respectively, during July-October 2002. Overall production and sales during July-June 2002-03 stood at 165,105 and 161,863 units as compared to 120,627 and 120,113 units.

Cheap consumer financing schemes by commercial banks and leasing companies, cut in prices, introduction of new models, heavy inflow of remittances and improvement in the agriculture sector have resulted in higher sales of bikes.

The figures reveal that despite higher prices consumers are still preferring Japanese bikes due to their qualities. However, the entry of Chinese bikes have definitely succeeded in carving out a share from the Japanese bike makers.

Market sources said that consumers were still complaining about the problems of jumps, engine vibrations and low quality paint in Chinese assembled bikes. The low price factor, galore of designs and colours and recent start of consumer financing by banks and leasing companies are luring the customers belonging to middle and lower income group who are out to purchase Chinese bikes.

Tractor makers —Al-Ghazi and Millat — also performed well during July-October 2003 with production and sales touching to 9,750 and 9,669 units, respectively, from 6,284 and 5,664 units in the same period of 2002.

Production and sales of trucks — Hino, Nissan and Dong Feng — swelled to 629 and 615 units, respectively, from 558 and 490 units in July-October 2002. Hinopak enjoys over 90 per cent market share in truck segment. An official in Hinopak attributed the increase in sales of trucks to introduction of Urban Transport Scheme (UTS) in Sindh after roaring success in Punjab coupled with commercial buying by transporters on inter-city routes.

Among the losers were bus and light commercial vehicles. Bus production and sales plunged to 408 and 355 units in July-October from 550 and 503 units.