February 7, 2023
Business

For first time since 2000, bike production in Pakistan declines

For first time since 2000, bike production in Pakistan declines

LAHORE: Regardless of economic ups and downs, motorcycle production and sales have remained strong, increasing from about 100,000 bikes in 1999-2000 to 2.6 million in 2021-22. However, 2022–2023 may mark the first fiscal year since 2000 when bike production declines significantly.

Is the bike drop a sign of Pakistan’s greatest economic downturn?

The sharp increase in the cost of two-wheelers may also be to blame for the decline in bike production and sales.

Since low-income consumers typically buy and utilise bikes, sales might have slowed slightly if costs had stayed consistent. However, with the present rates and nearly stagnant salaries, many are finding it difficult to make ends meet.

As most motorcycle sales in the nation are accounted for in rural areas, decreased agricultural output may also be a contributing factor. Sales are down because of recent floods that impacted approximately 34 million people.

The Pakistan Automotive Manufacturers Association (PAMA) collects information on motorcycle production, however as many motorcycle manufacturers are not members, the Pakistan Bureau of Statistics (PBS) collects information on their output instead.

Except for three Japanese manufacturers, most local bike manufacturers produce the 70cc model. The sale price of the 70cc Japanese bike and the local or Chinese equivalents, however, has always been significantly different.

However, the Japanese brand continues to outsell all other brands by approximately two to one. Currently, the Japanese bike with the largest market share costs Rs125,000, but domestic 70cc models cost Rs80,000 to Rs85,000.

The total motorcycle output was 2.6 million last year, according to available statistics.

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