Indian bikes set to enter Pakistan

Indian motorcycle makers sense a big opportunity in Pakistan as the country and India move to liberalise trade ties.

Says RL Ravichandran, vice-president, business development and marketing, Bajaj Auto, India's second largest two-wheeler maker: "We have started consultations within the company on how to go about (selling motorcycles) in Pakistan. There is no doubt a big opportunity lies ahead of us."

Adds Harish K, vice-president of the country's third largest two-wheeler maker TVS Motor Company: "Our exports team is on the job. It is a big market that we have not been able to tap so far. If we can enter this market ""which we will in the near future "" our overall (sales) volume will increase."

The gainers from better trade ties between India and Pakistan will be the local motorcycle manufacturers and not the Japanese companies. Suzuki, which is relaunching in India, has a presence in Pakistan. So do Honda and Yamaha "" all through local joint ventures.

This also means India's biggest two-wheeler maker, Hero Honda, may not get an opportunity to step across the border. Says Atul Sobti, vice-president, marketing, Hero Honda Motors, "Since Honda is already there, we may not go."

Production of motorcycles in Pakistan in 2002-2003 grew 28.5 per cent to 124,926 from 97,192 a year ago. Sales during the first 10 months of 2003-04 have grown 29 per cent to 126,230.

But it is not just the growth of the Pakistani market that has caught the attention of Indian automobile makers. "Much comfort comes from the fact that despite cheaper Chinese bikes, Pakistan's consumers have opted for the expensive options. Bikes manufactured by Bajaj, TVS, LML and Kinetic not only compare with the Japanese in their respective categories in quality, they also come cheap," an executive of a Japanese motorcycle maker in India said.

Yamaha's YB-100, Excellence and YD-100 sell for around Pakistani Rs 60,000. Similarly, Suzuki's Shogun sells for over Pakistani Rs 60,000, while the SR-21 model (two-stroke) costs around Pakistani Rs 70,000. Prices of four-stroke motorcycles are even higher. Comparable models in India come for under (Indian) Rs 50,000. Even if one accounts for the exchange rate differential, the prices in Pakistan are higher.