Dumping charges against China's motorbikes<\/p>\n
JAKARTA (JP): The Indonesian Association of Motorcycle
\nAssemblers & Manufacturers (Pasmi) filed a petition on Tuesday
\nwith the Anti-Dumping Committee of Indonesia (KADI) against all
\nbrands of imported motorbikes from China.<\/p>\n
Pasmi accused Chinese motorbike manufacturers and exporters of
\nselling their products in Indonesia at unreasonably low prices.<\/p>\n
\"They sell their motorbikes at cheaper prices here than they
\ndo on their home markets,\" the association said in a statement.<\/p>\n
The association said Chinese motorbike manufacturers exported
\ntheir products to Indonesia at prices of between US$170 and $220
\non cost and freight basis, compared to market prices in China of
\nbetween $450 and $670.<\/p>\n
The association, which groups the sole agents and assemblers
\nof Japanese brands -- Honda, Yamaha, Suzuki and Kawasaki -- and
\nItalian Vespa, said the dumping practices, if continued, would
\neventually kill the country's motorcycle industry.<\/p>\n
It urged KADI to immediately start investigation into all
\nmotorbikes imported from China and impose necessary anti-dumping
\nmeasures on any manufacturer or exporter involved in the unfair
\ntrade.<\/p>\n
Pasmi said the unfair trade practiced by Chinese manufacturers
\nand exporters had enabled them to make significant inroads in the
\ndomestic market at great expense to local motorcycle assemblers.<\/p>\n
The association claimed that market share of its five members
\nhad dropped from a stable 99 percent in previous years to 79
\npercent as of July this year.<\/p>\n
The association said that Chinese manufacturers would resort
\nto all sorts of tricks to sell their motorbikes overseas because
\nthey could not depend entirely on their home market to absorb
\ntheir huge production.<\/p>\n
China's motorbike production capacity has surged rapidly to
\nabout 20 million units per year, while its domestic market demand
\nonly stands at around 11 million units a year, the association
\nadded.<\/p>\n
Competition in the two-wheel market in the country has become
\nfiercer since the government allowed the importation of
\ncompletely built-up motorbikes late last year.<\/p>\n
A dozen makes from China, India, Korea and Taiwan have been
\nchallenging the market dominance of locally-assembled Japanese
\nbrands.<\/p>\n
The new brands from China include Sanex, which is represented
\nby PT Edico Megantra, Xiangjiang by PT Abadijaya Adiluhur, Zong-
\nshen by PT Soyukata, Jianshe by PT Semesta Baru, Dayang by CV
\nJaya Abadi Makmur, Xin Dong Li by PT Maju Bersama Surya Indah
\nMotor and Yoriko by PT Yoriko Motor Perkasa.<\/p>\n
Local motorbike dealers and analysts predicted the sales of
\nimported motorbikes would reach between 30,000 units and 45,000
\nunits this year, or 5.6 percent of the national market.<\/p>\n
Pasmi recently predicted total motorbike sales in the country
\nat 800,000 this year, a 39 percent increase from last year's
\nsales of 487,759.<\/p>\n
Pasmi's data showed that Honda remained the market leader with
\nsales of almost 93,480 in the first quarter, or about 56 percent
\nof the total market, followed by Yamaha with 35,858 units, Suzuki
\n31,238, Kawasaki 4,869 and Vespa 1,003 units.<\/p>\n
Indonesia's motorcycle market, the third largest after China
\nand India, suffered a major setback in 1998 from the impact of
\nthe country's worst ever economic crisis.<\/p>\n
Total motorcycle sales in the domestic market, which reached
\n1.88 million in 1997, dropped to 430,948 units in 1998 due to the
\ncrisis. But the industry showed some signs of recovery last year
\nwith total sales rising to 487,759 units. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/dumping-charges-against-chinas-motorbikes-1447893297",
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"sponsor": "Okusi Associates",
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