Motorcycle may be a dangerous transport and cause of fatal injuries, yet in Pakistan its production has gone up to 0.75 million units per year due to dismal state of affairs of public transport in the country, Engineering Development Board (EDB) sources told Business Recorder here on Friday.
It may be added that only negligible number of completely built-up (CBU) buses had been added to the urban transport in the big cities of the country, on the contrary some private companies closed down their businesses or were merely plying their decades old worn out buses on the roads, leaving the overwhelming lower middle class commuters no option but to buy a motor bike, as a family transport.
EDB sources said that a few years back the leading Japanese brands of motor cycles were selling for Rs 80,000 to Rs, 86,000 per unit. However, thanks to entry of local and Chinese brands, the rates of prime Japanese brands have come down to Rs 65,000 to Rs 73,000. The Chinese and Pakistani brands cost Rs 43,000 to Rs 50.000. The import duty on motorcycles is low at 25 percent but the imports are negligible.
They said that the motorcycle production ranged from 1,00,000 units to 1,27,000 pieces a year during the 1990's decade. The production has increased manifold in the present decade to 7,50,000 units a year due to constant increase in car prices in Pakistan.
They noted that yearly car production was 33,000 units at the start of this century, which touched its peak of around 200,000 units in 2006-07, but this phenomenal increase failed to make a dent in the car rates. "Lowered car prices would boost sales as was proved in case of revival plan for Mehran a few years back when 10 percent decrease in rates boosted its production from 400 units per month to 2,000 units per months, they emphasised.
Referring to rising production of tractors since past five year in spite of 2008-09 acute economic depression, the sources said it is due to 90 percent local production of the component including critical parts of the engine in the country. Tractors manufactured in Pakistan are cheaper than that of other competitive economies like China and India.
This is the reason that despite zero import duty tractors are not imported in the country. Sources said that the engineering industry has recommended to the government to exempt it from load shedding to meet export commitment, as the industry is dependent on electricity from the grid and lack of uninterrupted and affordable power had impeded the efficiency, growth and competitiveness.