Dumping Chinese motorbikes

Dumping Chinese motorbikes

An outcry from Indonesian producers/assemblers over dumping
efforts is now loud and clear. Actually, the firms here are
shameless. They grow fat and lazy. That is the story if the
industry is protected too long and too much.

They shamelessly rip off the consumer by charging them from
US$200 to $300 per bike, which the Chinese can claim, being their
advantage.

The bikes in China leave the manufacturing plants at a cost of
about $550 per piece, and if other costs and a small margin is
added, they can be sold here 20 percent to 30 percent cheaper
than local ones.

If these cheap prices are initiated for preoperational
marketing until they are produced here in volume, it is a sound
and healthy practice. And we should know if the locals cannot
beat the ex-factory Chinese cost price, so be it. The local
producers/assemblers should shape up and close down if they only
can live from protection, not from brainpower to be equal with
the Chinese and being able 15 years ago to reach volumes of
millions and to flood the Chinese market with cheap bikes.

This was the chance to prove their manhood and battle
readiness, instead of now crying in the lap of the fatherland
here and asking for further "help" against the hitting stick of
competitiveness, letting the Chinese come and hit them.

What a shame, and I hope the government abstains from any
help. Let them suffer and shape up, and stop making the
Indonesian consumer pay for their laziness.

Y. SANTO

Jakarta