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Stakeholders Urge Govt to Allow SMEs to Make Plastic Body Bikes

Stakeholders of the motorcycle industry have urged the government to allow small and medium enterprises (SMEs) to start manufacturing economically viable plastic body bikes as steel-framed motorcycles are slipping out of the common man’s reach.

Association of Pakistan Motorcycle Assemblers (APMA) Chairman Muhammad Sabir Shaikh, says federal government must pay immediate attention and allow SMEs of the motorcycle industry the manufacturing of plastic body scooties in collaboration with Chinese companies. He said that the govt should also give manufacturers the incentive of discounted taxes to facilitate them in low-cost production. Pakistani manufacturers could produce parts of plastic-framed bikes through joint ventures and technical collaboration agreements (TCAs) with Wuxi and Chongqing-based Chinese industry, Sabir Shaikh added.

Related: Demand for Motorcycles and the New Auto Policy for Safer Cars

The President of Employers Federation of Pakistan (EFP) Ismail Suttar had similar views. He said the government should encourage bike-related SMEs to produce plastic-body scooties through leveraging technical joint ventures with Chinese companies. He said:

“People from the low-income groups need cheaper electric scooties to reduce their travel cost. It is estimated that more than 700 new motorcycles come on roads of Pakistan every day. This mode of transport is mainly used by the common man and a considerable reduction in its manufacturing cost by using cheaper material will provide people with a low priced two-wheeler.”

Through leveraging Chinese companies’ technical capabilities, bike-manufacturing SMEs in Pakistan could flourish by producing huge volumes at a low cost, Suttar added. Prices of several components used in bike manufacturing have surged. As a result, finding cost-effective methods to reduce dependence on such material will benefit the motorcycle manufacturers as well as the consumers since they will be able to purchase the product at low prices.

Related: Rising Difference in Motorcycle & Car Prices & the Need to Fill the Gap

More than 40 million bikes run on Pakistan’s roads while the number is increasing by 2.5 million every year whereas 3.5 to 4 million motorcycles are running only on the roads of Karachi, which is increasing by 300,000 every year. Furthermore, more than 200,000 buses run all over Pakistan while in Karachi the local transport has less than 10,000 buses. More than half a million three-wheelers are running all over Pakistan while in Karachi the number is more than 80,000.

Source: The Express Tribune

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