Motorcycle production has increased steadily over the last two decades. Pakistan’s annual motorcycle sales could reach 2.6 million in 2021-22.
However, experts predict that, in the midst of one of the worst economic downturns in history, bike manufacturing will fall precipitously in 2022-23 for the first time since 2000.
According to one report, the significant price increase of two-wheelers may have contributed to the decline in bike sales and production.
It goes on to say that if the prices had remained stable, low-income buyers might have been able to keep the sales going. Individuals are struggling to make ends meet with current rates and flat salaries.
Because rural areas account for the majority of motorcycle sales, declining agricultural output may also be a factor. Floods this year have taken a toll on agricultural and livestock income.
The Pakistan Automotive Manufacturers Association does not have many motorcycle manufacturers registered (PAMA). Although, the Pakistan Bureau of Statistics (PBS) also lists the production of non-PAMA members as well.
Bike manufacturers will produce nearly 2.6 million motorcycles between 2021 and 2022. Atlas Honda led the pack with 1.35 million motorcycles sold, while other major players, including Yamaha and Pak Suzuki, sold a total of 1.25 million bikes.
According to the report, PAMA-registered bike manufacturers produced 521,643 bikes during the first five months of FY2022-23, compared to 797,346 last year, a 34% decrease on a Year-Over-Year (YOY) basis.
Similarly, sales of other bike manufacturers have dropped by up to 300% year on year. This decline has also resulted in massive downsizing in bike manufacturing companies. Experts blame the drop in bike production on the government’s import restrictions.
To read our blog on “Despite price hikes, November saw record-breaking car sales,” click here