The buzz that Chinese bikes are taking Indian roads by storm has been around for the last two years. It would have turned into reality, but for the heavy export duty that India levies.
In spite of the hurdle, the Chinese seem quite adamant on having their share of the 4-5 million per annum Indian two-wheeler pie.
Two Chinese bike majors Jialing and Kinlon are participating in the Indian Engineering and Technological Fair organised by the Confederation of Indian Industry in New Delhi and their representatives are holding talks with prospective Indian partners.
"We have been studying the Indian market for the last two years. It is a huge one and even if we initially capture one per cent, it will be 40,000 bikes per year.
"Since the export duty on fully assembled bikes is too high (65 per cent), we are going to export the parts and get them assembled in India with the help of an Indian partner," Tang You Hang, a representative of the Jailang group told rediff.com.
China Jaialnag Industrial Company Ltd is the largest enterprise in the area of motorcycle manufacturing in China. It is a public listed company and has had a tie-up with Japan's Honda and exports motorcycles and spare parts to over 50 countries.
"Initially it is going to be export of spare parts for which we pay 35 per cent duty. But later we will invest in India to set up our own manufacturing plant," Hang added.
Its rival, Chongquing Kinlong Motorcycle Manufacture Co Ltd, which exports bikes to South-East Asia, Europe, West Africa, Middle East and Latin Africa is determined not be left behind.
"Many companies are showing interest in a partnership with us and we will be assembling motorbikes in India, while exporting parts from China. The process will start next month," says Zhou Bin, Kinlon's director of overseas second department.
While the Kinlon representative said the price will not be drastically lower than Indian bikes like Bajaj, Jailing are pricing their fancy CBZ like Jailing bike at $500.
In a tie-up with an Indian company, the prices might as well work out to be much lesser than what Bajaj and Hondo offer the consumers right now.
"It is tentative at the moment. Once it starts, we will give competitive prices," Hang said.
Asked about the technological efficiency of their bikes, the Chinese representatives said they have "really progressed a lot" adding the Chinese no longer buy Japanese and American products, "Now they prefer Chinese goods, which have the same quality (as a Japanese product) and is priced lower."
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