Chinese motorbike agents deny dumping allegations

Chinese motorbike agents deny dumping allegations

JAKARTA (JP): Local agents for Chinese-made motorbikes denied
dumping allegations on Friday, saying their bikes were the
cheapest on the market because of higher production efficiency
and volumes than those produced locally.

"China produces about 12 million motorbikes every year,"
Lunardi, president of PT Bursa Motor China, the sole agent of the
Beijing Motorbike Manufacturer and Exporter Company, told The
Jakarta Post by phone.

Besides, Chinese motorbikes are made with 100-percent locally
produced materials and the manufacturers employ more efficient
workers, said Lunardi, whose company supplies Futura bikes at
between Rp 7.35 million and Rp 8.5 million on the road.

Julius Suhardi, a staffer at PT City Megah Utama Motor
representing Jiincheng Company, said Chinese bikes were also
cheaper because they were imported in completely built-up form.

"They can be sold at lower prices than assembled ones." Julius
said.

City Megah Utama is the sole agent for Ranger motorcycles,
which are sold for between Rp 8.2 million and Rp 8.8 million.

The Association of Motorcycle Assemblers and Manufacturer
(Pasmi) filed a complaint with the Indonesian Anti-Dumping
Committee (KADI) on Tuesday, claiming that Chinese motorbikes,
which have flooded the Indonesian market since the middle of this
year, were being sold too cheaply -- at prices even lower than in
China.

The association groups agents and assemblers of popular
Japanese brands such as Honda, Yamaha, Suzuki, and Kawasaki, and
the Italian Vespa. Prices for these bikes start from Rp 12
million.

The association said Chinese bikes were exported to Indonesia
at prices of between US$170 and $220 on a cost and freight basis,
compared to showroom prices in China of between $450 and $670.

Lunardi said Bursa Motor China had been selling between 6,000
and 7,000 Futura motorbikes per month since they were launched in
Indonesia in June.

"But I don't think they (Pasmi) have a valid complaint. They
should really ask themselves why they cannot sell their
motorbikes at the same prices or even cheaper than ours," he
said.

Julius said prices of Chinese motorbikes in Indonesia could
not be lower than in China because a 35-percent import duty and
other taxes were imposed on them by the government.

Total motorcycle sales in Indonesia reached 487,759 units last
year, an improvement over the 430,948 units in 1998 but still way
below the 1.88 million units sold before the economic crisis in
1997.

A dozen makes from China, India, Korea and Taiwan have been
challenging the market dominance of locally-assembled Japanese
brands since the government allowed the importation of completely
built-up motorbikes late last year.

Pasmi's data showed that Honda remained the market leader with
sales of almost 93,480 in the first quarter, or about 56 percent
of the total market, followed by Yamaha with 35,858 units, Suzuki
31,238, Kawasaki 4,869 and Vespa 1,003 units.
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