Pakistani Motorcycles Market burnt out. In the first half of this calendar year, sales have two and three wheeler sales have been 951.093, up a huge 66.8% vs the 2020 and +9.0% vs the 2019, hitting the new record as highest semester ever.
Motorcycles Market 2021 Trend
Pakistani two wheeler market is accelerating and recovering fast, following the lost reported in the 2020, when prolonged shutdown and lockdowns blocked the production and the commercial activities for a while.
This year the demand is back very stock and we can expect the market to be back on the pre covid track, when it was one of the fastest growing worldwide.
Sales speed up in the first quarter, reporting a +27.7% vs the correspondent period in the 2020. Then sales boomed in the second quarter, even considering the easy comparison with the 2020.
In the first half of this calendar year, sales have two and three wheeler sales have been 951.093, up a huge 66.8% vs the 2020 and +9.0% vs the 2019, hitting the new record as highest semester ever.
The competitive arena is dominated by Honda with sales up 87.9%. It is followed by United Auto (+31.3%) and Road Prince (+25.9%), the best local brands.
Pakistani Market Heritage
Before 2004, nobody could have ever thought that Pakistan motorcycle industry would flourish at such an exorbitant scale. In those years the market volume was below 0.1 million annual units and two companies only (Atlas Honda and Dawood Yamaha) were operating in the market. Suzuki and Qingqi held minor shares.
Thanks to government open policy, new manufacturers entered the market backed by Chinese technology and the sector become crucial in sustaining Pakistan economic development. In the last 15 years, it has become the preferred solution for individual mobility.
The following factors played a vital role in this development:
- Cheap but reliable technology from China.
- Independent sourcing of technology i.e Engines from China and Body parts from local vendors.
- Assemblers of Japanese brands had to pay a big amount as royalty to their principals, while new assemblers are sourcing everything independently. It has reduced bike cost.
- Overhead expenses are small as most of the companies operate in limited areas.
- Financing/leasing facility is available at local level. This facilitated lower-income people to buy a bike despite limited resources.
In recent years, Pakistani motorcycles industry has been among the fastest in the World. Indeed, the milestone of 1 million units has been hit for the first time only in 2015 and now the market is already running towards the 2 million annual sales. Following the over 1.4 million sales achieved in 2017, the market further boomed in 2018, with a record of 1.9 million sales. up 6.6%, and scoring the All Time Record.
However, rupee depreciation together with tax increase and less cash available for credit, penalized the market since the end of 2018. Motorcycles’ price further increase, discouraging the demand and the market has taken a negative path.
This article was written with the contribution of Mr. Imtiaz Ahmad, a Motorcycles professional living in Pakistan.