Kinetic Motor piggyrides into Pakistan

Tata Motors, Bajaj Auto, M&M also plan to enter neighbouring nation via alliances.

Kinetic Motor Company has tied up with a business house in Pakistan to export its scooters, scooterettes and motorcycles to that country. The company has submitted a proposal in this regard to the Pakistan government and is awaiting clearance for the same, said Sulajja Firodia Motwani, joint managing director, Kinetic Motor Company.

"Since the direct exports of completely built units (CBU) from India is not permitted in Pakistan, the company is looking at the option of setting up an assembly unit in Pakistan or a manufacturing unit to make some key components," said Motwani.

Some of the products currently marketed by Kinetic Motors in India are Kinetic Boss EX, Boss 115/Velocity, GF170 Cityaser and Nova/135.

The Pakistani two wheeler market is to the tune of Rs 3,000 crore. The potential therefore is huge, she said.

Other auto makers like Bajaj Auto, Tata Motors and Mahindra & Mahindra (M&M) have already evinced interest to enter Pakistan through tie-ups.

Bajaj Auto is awaiting clearance from the Pakistan government to export bikes and has already tied up with the Saigol group of Pakistan. If things work well, it has plans to set up a completely knocked down (CKD) assembly line in that country. The Saigol group is currently in joint venture with Chinese firm Quingqi to make two and four stroke motor cycles and three wheeler rickshaws.

China have a significant presence in the two wheeler market of Pakistan. However, the quality of Indian bikes with their inbuilt Japanese technology is considered to be technologically superior to Chinese bikes.

The entry of Indian bikes is expected to cut the prices of motorcycles in Pakistan, said bike dealers. Chinese bikes sell at Rs 35,000 to Rs 40,000 in Pakistan.

Kinetic Motor Company registered net sales of Rs 147.2 crore for the year ended March 31 2005 as against Rs 197.2 8 crore in the previous corresponding period. Exports currently contribute to about 8 per cent of the company's total sales.