After the car sector, the prevailing half-beating economic pulse leading to vehement price hikes is crippling the bike industry in Pakistan. Despite the dwindling economic paradigm, motorcycle production observed consistent growth in the past two decades, from 1999-2000 to 2021-22. And as per media reports, it could be the first time in over 20 years that bike production will observe a severe downtrend in 2022-23.
Since bike users normally belong to a lower middle class, the inflation-stricken-salaried class can no longer purchase bikes at the six-digit price. The reason behind the calamity may be an abrupt increase in the price of two-wheelers.
Moreover, the decline in agricultural output can be another reason, as most of the middle class belongs to the rural class, lately affected by flood devastation.
What Sales Chart Exhibits?
As per sales data, the leading Japanese bike maker “Honda” produced 1.35 units million motorcycles whilst the other bike company, including Yamaha and Suzuki, sold 1.25 units combined.
The true picture of the crisis can be observed in PAMA statistics. In the first 5 months of the fiscal year 2022-23, the industry produced 521,643 motorcycles against 797,346 units produced in the corresponding period of last year. Meaning an emphatic drop of 34% on a year-on-year (YOY) basis.
Coming to Honda, the company produced 563,268 units in July-November 2021. Whereas the production has dropped to 435,390 bikes – declining by 22%. Experts believe that the import curbs are also responsible for the ongoing situation of the bike industry.
