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Thread: Yamaha to invest $150million in Pakistan

  1. #1
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    Thumbs up Yamaha to invest $150million in Pakistan

    This is the latest and confirmed news. I heard the news on GEO and also came across this LINK

    I see it as a prologue to an entirely new era in "motor biking" in Pakistan. For the first time Yamaha will locally manufacture bike from 125 to 150cc range, plus the bikes will be featured with EFi technology.

    Lets hope they bring something according to the desires of the biker's community.

    Web: http://www.bikepics.com/members/sniperr and http://wanderersbook.blogspot.com

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    This issue of Yamaha investment has become too long now....Almost three years.. but good news is that there has been some progress related to this issue in recent days... matter is now pending with ECC ( Economic Coordination Committee ) which gives final approval to policy. Board of Investment , NTC are in strong favour of this project, Yamaha delegation is staying here in Pakistan to fight their case... Below mentioned information is the latest in this regard . ECC meeting held on 16 Aug 2012 discussed this in detail... I hope that soon we will hear some more progress in this regard.


    here is the link to news ( Daily Times - Leading News Resource of Pakistan)


    A detailed discussion was held on a summary proposed by Ministry of Commerce regarding protection to the motorcycle industry of Pakistan. The commerce secretary presented a general tariff reduction plan for motorcycle industry and new entrant’s ( i.e Yamaha ) policy having cessionary rate of duties on different equipments in the view of recommendation of the sub-committee constituted in the previous ECC meetings. ECC reviewed multi-dimensional aspects of the summary and decided to form a committee comprising DCPC, BOI chairman, commerce secretary and industries secretary to present a detailed presentation highlighting trends, production types, importers, manufactures, rate of returns, technology type, tariff regime, barriers to new entrants and barriers to competitors in the motorcycle industry of Pakistan. In the same way presentation will cover view points of new entrants, their requirements, optimal protection, view point of existing a producers and impact on general public. This presentation will be presented in the next ECC meeting.



    Also this article might be useful...

    Govt to reduce customs duty on bike imports – The Express Tribune

    LAHORE: The government is considering lowering the customs duty rates on completely built units (CBU) than those in India and China. The proposal under debate in the Economic Coordination Committee (ECC) proposes a reduction in the duty levied on import of bikes to 35% from 65% at present.

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    Quote Originally Posted by 7thgear View Post
    ^ it only says that Yamaha is ready to invest, it does not say that Yamaha is actually investing. Much depends on how government behaves with the Yamaha in terms of tariff. With the bent neck, Zardari in government I do not expect anything good to happen.
    Yes, seems that they are only ready to invest. I thought that ready to invest means that they will soon start working on the plant.
    But as you said the Govt. may only use this as a threat to the local assemblers to fill their own pockets.

    Whatever the scenario, from the below news it seems that both Yamaha and BOI/AIDP have agreed on a 10% duty and Yamaha is willing to invest. Lets hope that they start working soon.


    According to sources, Yamaha?s principal is hesitant to invest in Pakistan at 10 percent duty. ? Finally, Yamaha is ready to invest in Pakistan and the company will introduce new model every year,? the sources continued.

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    Quote Originally Posted by nabilM View Post
    This issue of Yamaha investment has become too long now....Almost three years.. but good news is that there has been some progress related to this issue in recent days... matter is now pending with ECC ( Economic Coordination Committee ) which gives final approval to policy. Board of Investment , NTC are in strong favour of this project, Yamaha delegation is staying here in Pakistan to fight their case... Below mentioned information is the latest in this regard . ECC meeting held on 16 Aug 2012 discussed this in detail... I hope that soon we will hear some more progress in this regard.


    here is the link to news ( Daily Times - Leading News Resource of Pakistan)


    A detailed discussion was held on a summary proposed by Ministry of Commerce regarding protection to the motorcycle industry of Pakistan. The commerce secretary presented a general tariff reduction plan for motorcycle industry and new entrant’s ( i.e Yamaha ) policy having cessionary rate of duties on different equipments in the view of recommendation of the sub-committee constituted in the previous ECC meetings. ECC reviewed multi-dimensional aspects of the summary and decided to form a committee comprising DCPC, BOI chairman, commerce secretary and industries secretary to present a detailed presentation highlighting trends, production types, importers, manufactures, rate of returns, technology type, tariff regime, barriers to new entrants and barriers to competitors in the motorcycle industry of Pakistan. In the same way presentation will cover view points of new entrants, their requirements, optimal protection, view point of existing a producers and impact on general public. This presentation will be presented in the next ECC meeting.



    Also this article might be useful...

    Govt to reduce customs duty on bike imports – The Express Tribune

    LAHORE: The government is considering lowering the customs duty rates on completely built units (CBU) than those in India and China. The proposal under debate in the Economic Coordination Committee (ECC) proposes a reduction in the duty levied on import of bikes to 35% from 65% at present.

    Thats a good news. Lowering the duty to 35% will definitely bring a lot of used models in Pakistan and thats what PAMA and local assemblers are afraid of.
    Lets see what ECC decides in their next meeting.

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    its good news, hope for the best
    ***SPEED+ACCURACY+AGGRESSION=YAMAHA RX115***

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    Quote Originally Posted by 7thgear View Post
    ^ it only says that Yamaha is ready to invest, it does not say that Yamaha is actually investing. Much depends on how government behaves with the Yamaha in terms of tariff. With the bent neck, Zardari in government I do not expect anything good to happen.
    true......
    officials ki jaib agr theek garam ho jay to inko tariff ki itni fiker nhi hogi baki sab dikhawa kia jata ha.....awam k liy kabhi kisi nay acha socha hi nahi sab contracts apni jaib garam rakh kr mehngay tariffs k sath bid kr diy jatay hain hamesha se,
    abhi to officialls k khanay ka time aya hoa hoga ymc se alag mang rahay hongay or local assemblers ka mal hazam kartay hoy unko dra alag rahay hongay k bhai logo ymc walay aa rahay hain aap sab humari commission increase kro jaldi se, tabhi hum kuch na kuch kar k ymc ko rokain..............described the situation in simple words
    ***SPEED+ACCURACY+AGGRESSION=YAMAHA RX115***

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    little hope again

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    http://www.thenews.com.pk/Todays-News-3-128248-New-entrant-status-for-Japanese-brand



    New entrant status for Japanese brand



    Hina Mahgul Rind
    Sunday, August 26, 2012
    From Print Edition



    KARACHI: The issue of granting new entrant status to a Japanese brand has dragged on since 2009. The particular Japanese brand had operated in Pakistan for decades and aims to re-enter the Pakistani market as a new entrant. The move been vehemently opposed by the existing over 100 two wheel manufacturers of the country as well as around 700 motorcycle parts vendors.

    The Economic Coordination Commission formed a committee headed by Minister for Information Qamar Zaman Kaira last month. The committee has finally agreed to the proposed original plan. However, the concessions announced have been restricted to 100cc or higher power motorcycles. Incidentally, this segment has the highest growth rate.

    According to the ECC summary the committee agreed on reduction of general tariff and new entrant policy for the motorcycle industry to encourage the introduction of new technology, exports and availability of a wide range of products for consumers. The committee agreed to reduce general tariff for motorcycle industry sub-assemblies from 20 percent to 10 percent, CBU from 65 percent to 35 percent, CKD kits not manufactured locally were reduced from 15 percent to five percent and CKD manufactured locally is to be 25 percent from 47.5 percent.

    It was also stated that new entrant policy for the motorcycle industry will be applicable on 100cc and above with new technology. For new entrants the concessionary rate of duty for CKD kits shall be five percent. At the start of commercial production, localisation should be kept at a minimum of 25 percent and at the end of five years localisation should reach 85 percent. It was also stated that the agreement for a new entrant, including the localisation plan, will be developed by the Engineering Development Board in consultation with the National Tariff Commission. The agreement would be designed in such a way that the new entrant scheme is not misused. The Ministry of Commerce has authorised the submission of the summary for ECC of the cabinet.

    It is expected that the decision might get approved in the next ECC meeting. Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) officials fear that as things stand, the proposal stands a fair chance of being approved when it will be presented at the ECC. There are no dissenters from the government side while the private sector would not be consulted in this regard.

    The decision that depressed local manufacturers most was allowing import of Completely Built-up Units (CBU) at a low rate of 35 percent as against the present tariff of 65 percent. The reduction of tariff on localised parts will also render the local vending industry uncompetitive as it already faces unfair competition at the hands of rampant under-invoicing, said a PAAPAM official.

    Local vendors alleged that the decision would not only allow a failed manufacturer the status of new entrant but also increase concessions in the new entrant policy to facilitate that particular investor. The PAAPAM official said that the concerns of local players were so genuine that even the Ministry of Industries, the Engineering Development Board and the Federal Board of Revenue opposed this move. The proposal pushed by the almost non-performing Board of Investment however was fully supported by the Planning Commission of Pakistan and the National Tariff Commission. These institutions ignored the fact that almost all the motorcycle manufacturers operating in Pakistan carved a share in the local market without any special concession and were treated under one policy, claimed the PAAPAM official.

    Any concession to a new entrant was considered by industry circles and many government departments as unfair to the existing players, said the official.

    Chairman Association of Pakistan Motorcycle Assemblers (APMA) Sabir Sheikh said that new entrants should be allowed as this will increase competition and Yamaha is going to introduce new model motorcycles with new technology above 100cc, including 125cc and 150cc. The models which Yamaha is going to introduce are not currently being manufactured or assembled here in Pakistan.

    Sheikh said that some vendors are resisting the decision as they are reluctant to bring new investment. He denies that all vendors are against the policy and claims only some of the vendors who are associated with the existing Japanese brand motorcycle manufacturer are resisting the policy.


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    Another Article related to this development....

    Daily Times - Leading News Resource of Pakistan



    Protection to motorcycle industry, new entrant policy
    MoC submits proposal to ECC

    * Proposal states new entrants in motorcycle industry be allowed to start production with 25 percent locally manufactured parts

    By Sajid Chaudhry


    ISLAMABAD: The Ministry of Commerce has proposed to the Economic Coordination Committee of the Cabinet (ECC) that new entrants in the motorcycle industry should be allowed to start production with 25 percent locally manufactured parts and would be required to achieve 85 percent localisation upon completion of five years.

    Those units that do not achieve the localisation plan would be penalised and will be required to pay duties equivalent to rate applicable on import of parts they would be importing during the first five years.

    The ECC decided to form a committee comprising Planning Commission deputy chairman, Board of Investment (BoI) chairman, commerce secretary and industries secretary to present a detailed presentation highlighting trends, production types, importers, manufactures, rate of returns, technology type, tariff regime, barriers to new entrants and barriers to competitors in the motorcycle industry of Pakistan.

    In accordance with ECC decision on July 3, 2012 taken on the summary moved by the Ministry of Commerce, a committee was formed under the chairmanship of minister for information and broadcasting. Meeting of the committee was held on July 17, 2012. After detailed deliberations, the committee agreed on the following general tariff reductions and new entrants’ policy for the motorcycle industry to encourage the introduction of new technology, exports and availability of a wider range of products for the consumers.

    General tariff reduction proposed for the protection to motorcycle industry in Pakistan with ‘new entrant policy’ includes bringing import duty on import of sub-assemblies from 20 percent to 10 percent, import of Completely Built Units (CBU) and components for assembly or manufacture of vehicles in any kit form from 65 percent to 10 percent, Completely Knocked Down (CKD) kits not manufactured locally 15 percent to 5.0 percent, CKD kits manufactured locally from 47.5 percent to 25 percent. However, import duty on import of raw materials has been proposed to be maintained at zero percent and sub-components and components at 5.0 percent.

    The new entrant policy for motorcycle industry will be applicable on motorcycles of 100cc and above with new technology, for new entrants the concessionary rate of duty for CKD kits shall be 5.0 percent, at the start of commercial production, localisation level shall be kept at a minimum of 25 percent. By the end of five years, localisation level shall reach a minimum of 85 percent: and the agreement template for new entrants, including the localisation plan, will be developed by Engineering Development Board in consultation with National Tariff Commission. The agreement would be designed in such a way that new entrant scheme is not misused. Non-implementation of localisation plan should result in the imposition of prevalent duties.

    During the last meeting of the ECC held a detailed discussion on a summary proposed by the Ministry of Commerce regarding protection to the Motorcycle industry. Commerce secretary presented a general tariff reduction plan for motorcycle industry and new entrant policy having cessionary rate of duties on different equipment in the view of recommendation of the sub-committee constituted in the previous ECC meetings. ECC reviewed multi dimensional aspects of the summary and decided to form a committee comprising Planning Commission deputy chairman, BoI chairman, commerce and industries secretaries to present a detailed presentation highlighting trends, production types, importers, manufactures, rate of returns, technology type, tariff regime, barriers to new entrants and barriers to competitors in the motorcycle industry. In the same way presentation will cover viewpoints of new entrants, their requirements, optimal protection, view point of existing producers and impact on general public. This presentation will be presented in the next ECC meeting.

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    the shirazi khandan are trying their best to stop the investment...
    the problem is not our govt... its the people..

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    PM lauds Yamaha’s interest to set up motorcycle manufacturing | DAWN.COM



    PM lauds Yamaha’s interest to set up motorcycle manufacturing
    PPI | 2 hours ago

    Yamaha to invest $150million in Pakistan - detail story font small?m1334642219g Yamaha to invest $150million in Pakistan - detail story font large?m1341287895g Yamaha to invest $150million in Pakistan - detail story print?m1334640151g Yamaha to invest $150million in Pakistan - detail story comments?m1341287895g 0



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    Yamaha to invest $150million in Pakistan - rajapervaiz yamaha isl app670?w670The Yamaha delegation from Japan called on Prime Minister Raja Pervez Ashraf at PM House. – APP photo


    ISLAMABAD: Prime Minister Raja Pervez Ashraf appreciated interest shown by Yamaha Motors Japan to establish a motorcycle manufacturing facility in Karachi costing US$150 million, introducing latest technologies, create jobs and contribute revenue for government.
    In meeting with Yamaha Motors delegation Thursday at PM House, Prime Minister said Yamaha is household name in Pakistan. He expressed confidence Yamaha plant will be success story and stir foreign investment. He said every second person in rural Pakistan has a motorcycle and there is huge potential for the motorcycle industry in the country. He assured government will provide all facilities to Yamaha Motors to expand its operations and introduce state of the art technologies.
    Ito Yasushi, General Manager Yamaha Japan said on attaining full production, plant will attain production of 45,000 units annually. He spoke of company’s intention to further expand its manufacturing units in Pakistan.
    With setting up of motorcycle manufacturing facility in Karachi with EFI, automatic transmission, European standard exhaust system, the company will not only be a pioneer in Pakistan but also target Middle East, Central Asia, African markets and will contribute to the country’s exports.
    He said that the company plans to initially import CKD Kits and develop local capacity through relationship with local vendors. It plans to achieve indigenization of motorcycle manufacturing to 85 per cent in 10 years which will enable workforce to develop expertise in manufacturing various parts of motorcycles.

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    Paapam, Yamaha Motors remain at loggerheads over investment deal - thenews.com.pk


    Paapam, Yamaha Motors remain at loggerheads over investment deal


    Irfan Siddiqui
    Thursday, August 30, 2012
    From Print Edition


    TOKYO: Pakistan Association of Automotive Parts Accessories Manufacturers (Paapam) and Yamaha Motors of Japan are still at loggerheads over the latter’s potential $150 million investment in the motorcycle industry of Pakistan.

    Paapam will benefit the most from the $150 million investment that Japanese automobile giant Yamaha Motors is keen to make into the country, said sources within the automobile company here.

    Sources said that Paapam, which is opposing the investment into the country, will not be affected by the investment that Yamaha plans to make because the firm will only manufacture those models that have never been made in Pakistan.

    Yamaha plans to bring in 100cc and above models with global demand without disturbing the existing players. Sources of the company said the investment, if it goes ahead, will bring a revolution in the motorcycle industry of Pakistan. They said that even though production/ manufacturing of motorcycles had increased manifold and now Pakistan was producing more than 2 million motorcycles per year, the models are old and therefore, cannot be exported. Similarly, the parts of these domestic models are also obsolete in the rest of the world and cannot be exported.

    With the introduction of Yamaha’s investment into the country, global models will be made in Pakistan. Along with the motorbikes, its parts will also be of export quality and demand, the sources said.

    Paapam’s Executive Committee member and chief executive General Engineering Arshad Awan strongly refuted the impression that local manufacturers in the country are making old and obsolete motorcycles which are not worthy of export.

    He said that export quality motorcycles/engines are being produced in Pakistan and hundreds of thousands of motorcycles are being exported to different many countries across the globe.

    Talking about the proposed investment of $150 million by Yamaha over the period of 10 years, he said that the local manufacturers had already set the target for that much investment in the current year alone out of which $80 million have already been invested to enhance production capacity. He further said that 70cc, 100cc, 110cc, 125cc and 150cc motorcycles are already being made in Pakistan.

    Another member of Paapam and chief executive of S M Engineering and Metal Works Ishtiaq Hussain Siddiqui said giving undue concessions to a specific foreign manufacturer will severely upset the equilibrium of the local industry, and the suggestion of decreasing CBU rates will shift the industry from manufacturing to importing industry.

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    I hope Yamaha Motors will come. Still waiting for the good news.
    31.5497 N, 74.3436 E

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    nice sharing nabil. Lets see when they start. **** pampam.
    But what does PM admiration infers.

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    ALLAH PAK KARE ES BAAR YAMAHA SUCCESSFUL HOJAYE
    This will bring serious change in pakistan's motorcycle industry
    According to "thenews" article shared by nabiM Yamaha is looking to launch new latest bikes
    they are not going to launch traditional years old pakistani motorcycles, Which is really good to know

    If Yamaha comes & gets good response, surely Honda will directly jump in pakistan motorcyle market

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    ^ Rightly said.. Competiton between the companies is always beneficial to the customers..
    Web: http://www.bikepics.com/members/sniperr and http://wanderersbook.blogspot.com

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    Gulzar Kehte hen

    subha subha aik khuwab ki dastak par darwaza khola
    dekha
    sarhad k uus paar se kch mehmaan aaye hen
    aaknhon se manoos they saare
    chehre saare sune sunaye
    paon dhoye, hath dhulayem aangan mein aasan lagwaye
    aur tandoor pe makki k kch mote mote rot pakaye
    potli mein mehmaan mere pichle saloon ki fasloon ka gudd laye the
    aankh khli to dekha ghr mein koi nai tha
    hath laga kar dekha to tandoor ab tak bhuja nai tha
    aur honton par meethe gudd ka zaiqa ab tak chipak raha tha
    khawab tha shayed
    Khuwab hi hoga

    sarhad par kal raat suna hai chali thi goli
    sarhad par kal rat suna hai
    KCH KHUWABON KA KHOON HUA HAI

  18. #97
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    Wah Wah Wah!
    I Am the Feel
    I Am The Yamaha!

  19. #98
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    Quote Originally Posted by 7thgear View Post
    ^ Rightly said.. Competiton between the companies is always beneficial to the customers..
    you r right but i add only one sentence
    THE TRUE COMPETITION rather then under the invoice competition
    yamaha are already successful, if they won,t arrive in PAK
    we the riders will be victim more then YAMAHA
    YAMAHA ROCKS, HAIL TO YAMAHA
    ***SPEED+ACCURACY+AGGRESSION=YAMAHA RX115***

  20. #99
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    If Yamaha does enter the Pakistani market, we the people would be loosing out in the long term, as well in the short run. This is because the Motorcycle Industry will loose hundred and thousands of workers, vendors will shut down, and all other impacts of such delicacy. Right now this all sounds very good, but each motorcycle which will be produced here will be sold for not less then 100,000 rs. With the Rupee depreciating and the Japanese Yen appreciating, and also the dollar we'll end up paying more in any case. Right now were just happy that we'll get new motorcycles just because Yamaha comes. I very well agree with this, i even want that, but look at the other side, just to make us couple of thousand fortunate people who can afford to buy motorcycles above 100,000 rs it'll be good for us, but for the rest, who dont really care what motorcycle they travel in as long as they have one, and the people who will loose their job itll be bad for them. Yes, I say that new motorcycles should come, and their should be variety, this will only happen with a significant strategy by all the stakeholders.

  21. #100
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    Abhi humne(bikers wishing for quality bikes) khuwaab dekha hai aur abhi se roona shuroo hogaya
    yaar please let us enjoy our dream of seeing quality motorcycle being sold in pakistan from quality vendor
    what if yamaha gives you something better in range of 67000 will you still say nahein yamaha ko nahein aana chahiye?
    Bro you yourself saying only couple of thousand fortune people will be able to purchase bikes?
    So how can this thing effect millions of Chonda customers . Chonda 70cc won't vanish quickly
    they will be always there till we are alive. So don't worry about them
    Just welcome the good will of yamaha daring to invest in country like pakistan
    Bro it will be very good for pakistan motorcyle industry


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