THE MOTORCYCLE INDUSTRY IN PAKISTAN

Abstract

The topic of the study highlights a variety of aspects of the Motorcycle industry of Pakistan that has seen a tremendous growth over the last decade or so. The industry comprises of foreign and local manufacturers that compete over the ever growing consumer market locally and abroad. Despite the lack of a proper centralized institutional framework to monitor and assist the industry, it has find channels to sustain and propagate itself. But on the darker side many small companies that once profited from the demand bloom now find themselves desperate for survival with several ones opting to close their productions. The local industry in recent years has emerged as a cheaper alternative to middle and lower class of the society over the more expensive Japanese brands. Japanese brands due to better reliability and resale values continue to enjoy a more than healthy share of the market. The growth of industry and export figures are thwarted by high rates of taxation and duties that make the prices of Pakistani brands uncompetitive with cheaper versions from China and India. Import of spare-parts, pivotal to local manufacturing industry is plagued by high rates imposed duties. Local industry is also deprived of any government technical assistance and regulation of standards preventing expansion locally and abroad. The issues faced by the industry have been highlighted by their representing organizations PAMA and APMA and concerns have been discussed at government level. The two associations currently lack a much desired co-ordination and steam needed to plug in the missing pieces of the paradigm. Suggestions have been offered at the end of the project that reflect the demands of the local and foreign manufacturers as perceived during the research.