Pakistan’s total bike production falls by 13 percent to 2.459 million units

Assemblers blame depreciation of rupee and high import cost for it.


According to data by PBS (Pakistan Bureau of Statistics), Pakistan’s total bike production has fallen by 13 percent in the ongoing financial year. The production has skidded to 2.459 million units in FY19 from 2.825 million units in FY18.

While achieving 94pc localization in the 70cc segment and more than 50pc in higher engine power, the assemblers continuously increased the price during the last 18 months, making it further difficult for the buyer. The assemblers blame the high cost of import and depreciation of rupee against the dollar for it.

However, the 70cc did not lose much of its customers as its sales slightly fell 1.114 million units in FY19 from 1.150m units in FY18. 70cc continues to hold 70-80pc share in total bike market Atlas Honda Ltd (AHL).

Suzuki and Yamaha’s sales declined to 3,162 and 3,805 units in July-August from 3,738 and 4,282 units respectively. Suzuki and Yamaha sold 23,352 and 23,610 units in FY19 as compared to 21,724 and 21,810.

Sales during July-August 2019 slid down to 160,109 from 170,021 units during the same period in the last year. Suzuki sales have fallen from 3,805 units to 3,162 in July-August. Yamaha plunged from 3,738 and 4,282 units.

People have reduced their spending as inflation increases:

United Auto Motorcycle already witnessed distress in sales. The sales stood at 364,614 units in FY19 versus 405,982 units in FY18. It failed to recover at the start of FY20 as 52,379 units were sold in July-August, compared to 68,858 units in the same period in the last financial year.

“I have reduced overall manpower (permanent, daily wage and contractual) by 10-15 percent from January to curtail financial burden on account of falling sales,” Director Road Prince Motorcycle, Sohail Usman.

He added that  “people with a monthly income of Rs25,000-40,000 have reduced their spending owing to rising grocery prices and utility bills.” Buying bikes on installment basis has also become a challenge as due to the rise in prices of almost everything, people are finding it extremely difficult to make timely payments.

What are your views on this? Share with us in the comments bar below.

  • Khan could subsidiezed everything like previous government but he is fixing the issues for long term IA
    this is just temporary set back. In Long term Pak will prosper!

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