This year, for the second consecutive time the car sales have declined due to constant price hike in their prices, and devaluation of rupee against the dollar etc. However, on the contrary, the sales of bikes in the country have surged to 26% on a year-on-year basis. Last year in June, the bike manufacturers sold 102,207 units whereas, in the same month this year, the bike manufacturers shipped 128,976 bikes. Due to rupee devaluation, the hike in sales of bikes is surprising, but still, the sales are going strong. While the car sales, on the other hand, face a downward trend.
It is to be noted here that Atlas Honda dominates the bike segment in Pakistan, and the company sold 91,507 units in June 2018 with an increase of 28% on a year-on-year basis. Additionally, it is worth mentioning here that, at the beginning of 2018 in January, Honda Pakistan sold more than 1 lac bikes, making it the first company to be able to sell this many bikes in the history of Pakistan. Furthermore, United Autos and Suzuki sold 33,424 and 2067 units in June 2018. There is an increase of 19% and 17% in their sales on a year-on-year basis, respectively.
We also contacted a local bike dealer to see why bike sales are surging, despite the price hike and rupee devaluation. He told us, yes, the prices of bikes have increased a few times this year, but the price increase is minor, and as the large population of the country belongs to the middle-class background, that’s why there is no significant effect of rupee devaluation on bike sales. And with this increase in sales of bikes, it’s evident enough that the bikes being sold are within their budget, he added.
The bike market in the country is diversifying extensively, as bike manufacturing companies are introducing new bikes in the local market. Honda, Suzuki and United have already introduced their 150cc bikes to grab more market and also in an aim to bring more options for the consumers. Suzuki has also introduced GSX-R600 in Pakistan.
Moreover, Benelli Pakistan will also be launching its TNT 150cc soon in the country.
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