An exclusive Interview with Haroon Arshad, Chief Executive, HKF Engineering (Pvt.) Ltd.
AUTMEX 2005 arranged by AMPAM was a very good opportunity for the local two wheeler / three wheeler assemblers to display their products. The only drawback was the non-participation of the Japanese two wheeler assemblers in the country said Haroon Arshad, Chief Executive, HKF Engineering (Pvt.) Ltd. in his interview with MOBILE WORLD.
He said it was truly a wonderful event that customers got a very positive exposure, as there were different brands and models displayed and they could see and compare those brands and their quality under one roof. New Assemblers from various backgrounds are coming in the market bringing innovation, quality and latest technology at a very competitive price to the customer, “I would say that Japanese assemblers’ participation in this show would have made it more interesting and comparative.”
Replying to a question he said that the Motorcycle Industry in Pakistan has been developed by the support of the Japanese assemblers, as Japanese mode of working is to develop the allied industry. They have helped the vending industry grow strong in the past few decades. The overall demand has increased 400 percent in the last four year and is still expected to grow at the same rate in the years to come.
Due to this rapid increase in demand, quality product vendors are hard to find or too committed to the assemblers they are working within the past years. In his opinion all vendors and assemblers have to play their role respectively for quality transfer.
As far as the WTO is concerned, all we have to do is to control our overheads and work on improving the quality of the end product if we want to compete with neighboring countries in the region. “As this particular industry is heading towards economies of seale, if Motorcycle component venders & Assemblers continue to improve the quality, they can compete in the market,”
He said that Japanese assemblers used to seize more than 80% of the market share only four years back. With the induction of new local assemblers that share has come down to 60% only and is further decreasing. In order to meet the challenges of WTO Government needs to make effective policy in this regard to provide necessary incentives to the industry so that better quality end product can be delivered to the customer at a more competitive price. Answering another question regarding free electricity which is being provided in china he said that this is absolutely correct that such incentives do help in producing the products at a much lower price. Even in Pakistan industrialists are considering and actually going for alternative power generation options like gas and coal. Eventually such measure will help bring the overheads lower and that difference can be transferred to improve the quality of the product.
He said that the market size is increasing not just in this particular industry but also in other industries like car and tractor assembling. The amount of investment which is being made today in the engineering sector has never been witnessed before. Vendors are investing to improve their manufacturing facilities and more and more assembly plants are being set up throughout the country. Even foreign investment including Chinese, in the form of joint ventures are coming to Pakistan in order to meet the challenges of WTO. He further briefed that his company is backed with 25 years of automotive engineering experience and extensive in-house manufacturing facilities to produce all types of components in-house. There are many critical components that are being manufactured in-house and many more planned for upcoming years. Ravi Motorcycle is available in the market with the best quality and is competing with the best brands in the market.
As a country, he feels that there is much more potential in the engineering sector but major up-gradation of equipment and technology is required to stay competitive with changing trends globally. Government also needs to give incentives to encourage the players in the industry to go towards exports.
Regarding capacity and target of Ravi, he said that the target is to achieve 25% of the market share in the times to come. He further added that production capacity of the facility is already 100,000 motorcycles per annum and can be increased with minimal addition, as and when required.
-Published on pages#-15 February-2005 issue of MOBILE WORLD Magazine