Dumping charges against China's motorbikes

Dumping charges against China's motorbikes

JAKARTA (JP): The Indonesian Association of Motorcycle
Assemblers & Manufacturers (Pasmi) filed a petition on Tuesday
with the Anti-Dumping Committee of Indonesia (KADI) against all
brands of imported motorbikes from China.

Pasmi accused Chinese motorbike manufacturers and exporters of
selling their products in Indonesia at unreasonably low prices.

"They sell their motorbikes at cheaper prices here than they
do on their home markets," the association said in a statement.

The association said Chinese motorbike manufacturers exported
their products to Indonesia at prices of between US$170 and $220
on cost and freight basis, compared to market prices in China of
between $450 and $670.

The association, which groups the sole agents and assemblers
of Japanese brands -- Honda, Yamaha, Suzuki and Kawasaki -- and
Italian Vespa, said the dumping practices, if continued, would
eventually kill the country's motorcycle industry.

It urged KADI to immediately start investigation into all
motorbikes imported from China and impose necessary anti-dumping
measures on any manufacturer or exporter involved in the unfair
trade.

Pasmi said the unfair trade practiced by Chinese manufacturers
and exporters had enabled them to make significant inroads in the
domestic market at great expense to local motorcycle assemblers.

The association claimed that market share of its five members
had dropped from a stable 99 percent in previous years to 79
percent as of July this year.

The association said that Chinese manufacturers would resort
to all sorts of tricks to sell their motorbikes overseas because
they could not depend entirely on their home market to absorb
their huge production.

China's motorbike production capacity has surged rapidly to
about 20 million units per year, while its domestic market demand
only stands at around 11 million units a year, the association
added.

Competition in the two-wheel market in the country has become
fiercer since the government allowed the importation of
completely built-up motorbikes late last year.

A dozen makes from China, India, Korea and Taiwan have been
challenging the market dominance of locally-assembled Japanese
brands.

The new brands from China include Sanex, which is represented
by PT Edico Megantra, Xiangjiang by PT Abadijaya Adiluhur, Zong-
shen by PT Soyukata, Jianshe by PT Semesta Baru, Dayang by CV
Jaya Abadi Makmur, Xin Dong Li by PT Maju Bersama Surya Indah
Motor and Yoriko by PT Yoriko Motor Perkasa.

Local motorbike dealers and analysts predicted the sales of
imported motorbikes would reach between 30,000 units and 45,000
units this year, or 5.6 percent of the national market.

Pasmi recently predicted total motorbike sales in the country
at 800,000 this year, a 39 percent increase from last year's
sales of 487,759.

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.

Indonesia's motorcycle market, the third largest after China
and India, suffered a major setback in 1998 from the impact of
the country's worst ever economic crisis.

Total motorcycle sales in the domestic market, which reached
1.88 million in 1997, dropped to 430,948 units in 1998 due to the
crisis. But the industry showed some signs of recovery last year
with total sales rising to 487,759 units. (cst)