General Tyres considering production of motorcycle tyres
Friday, March 16th, 2012 6:28:00 by Wajahat Javed
General Tyres considering production of motorcycle tyres
Thursday, March 15, 2012: Pakistan’s leading tyre manufacturers, General Tyres, is considering the production of motorcycle tyres as it looks to expanding its production line.
The company has already entered the market of tyres for CNG rickshaws. It is estimated that General Tyres will invest somewhere around Rs500 million to increase its product range and by the end of the fiscal year in June the tyres
for motorcycles will enter the market.
Mohammad Shahid Hussain, Chief Executive General Tyres, said, “Despite unfavourable business conditions, General Tyres has been gradually investing in its manufacturing facilities. Today, business conditions are better and are
improving with every passing month.”
Speaking to the media, Hussain said the company wanted to capitalise on the fast growing market of compressed natural gas (CNG) rickshaws and motorcycles in the country.
This year, Pakistan is expected to produce 1.8 million units of motorcycles while 140,000 CNG rickshaws are already on roads. “Fortunately, there is no smuggling problem in the motorcycle tyre category,” he pointed out.
Hussain pointed to the problem of under-invoicing and smuggling of tyres, which have severely hit the domestic manufacturers.
“Though the government has tightened up on smuggling and under-invoicing, still there is much room for improvement,” he said, adding billions of rupees could be saved by improving the customs clearance system.
If the cost of a Chinese tyre was around $240-$245, some traders were importing the same by declaring a value of $130-$140, causing severe losses to the national exchequer. And, then they gave all taxes on this lower import price,
he said.
“Tax evasion actually helps tyre importers to sell these at low prices, making it almost impossible for us to compete with them,” Hussain added.
He, however, believed that Pakistan had the potential to be a big tyre exporter, provided the government created a level playing field for the manufacturers and controlled under-invoicing and smuggling.
Short URL: https://www.newspakistan.pk/?p=15988
Posted by Wajahat Javed
on Mar 16 2012. Filed under Business, Pakistan.
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