Since the enactment of import restrictions on automobiles in May 2022, the industry has witnessed a steady decline in production, sales, and revenue. It becomes evident that the effects of these restrictions continue to reverberate throughout the market, especially on car and bike sales.
The once-thriving automobile industry has faced a series of setbacks over the past year. With import restrictions effectively limiting the availability of vehicles, manufacturers have grappled with a decline in production, leading to a ripple effect on sales and revenue.
Bike Sales Show Slight Increase
Despite the prevailing challenges, a recent report from the Pakistan Automotive Manufacturer’s Association (PAMA) offers a glimmer of hope. In May 2023, there was a slight increase in bike sales, providing a much-needed respite for the industry. Notably, Atlas Honda experienced a surge in sales, with over 87,133 units sold, representing an 18.5% increase from the previous month. Pak Suzuki, once a mighty force, witnessed a decline of 29.1% month-over-month (MoM), leaving them with a modest figure of 820 motorcycles sold. On the other side of the spectrum, Yamaha soared through the heavens, basking in the glory of a remarkable 32.5% MoM surge, with 1,114 motorcycles finding new homes in April.
While the report does not explicitly pinpoint the cause of the sales decline, it is evident that the import restrictions play a significant role. The limited availability of vehicles has undoubtedly affected consumer choices, leading to a decrease in demand. Additionally, industry experts speculate that the overpriced bikes offered in the market further deter potential buyers. These factors combined have contributed to the decline in sales and added to the industry’s woes.
Of particular concern is Pak Suzuki, which recently faced another production shutdown, exacerbating the company’s existing struggles. An official notification stated that motorcycle assembly would be suspended from June 12 to June 16. As the dollar rate remains volatile, there is a looming possibility of price increases upon the resumption of bookings. Such uncertainty surrounding bike prices only adds to the apprehension felt by consumers.
