Pakistani Motorcycles Market has stopped the recovery in the first quarter 2022. Lackness of components limited the production and First quarter 2022 sales have been 435.796 (-8.1%). Projection for the second quarter are further more negative.
Pakistani Motorcycles Industry Trend and Perspectives
Following the 15.2% recovery put in place last year, in the 2022 the Pakistan motorcycles market was expected to consolidate the recovery, but the first quarter sentence is below the expectations and can compromise the entire year performance.
As you may know, 99.9% of vehicles sold in Pakistan are locally produced, due to the huge duties on importers. However, many components arrive from outside, mainly from China and the lackness of these raw material is the key reason for the sales lost so far.
First quarter 2022 sales have been 435.796 (-8.1%) and the projection for the second quarter are further more negative, considering shipments from China are limited by covid19 lockdowns.
The risk is that the market will fall down again in the range of 10-15 percent, as done two years ago.
Motorcycles Market 2021 Trend
Pakistani two wheeler market in the last decade has strongly accelerated with annual sales over doubled between 2012 and 2018.
The introduction of new safety standard, with their impact on prices, and the the arrival of Covid19, which caused prolonged shutdowns to the factories, pushed the market down both in 2019 and 2020. But the base middle term growth is still there and the 2021 recovery is proving this.
In fact, in the 2021 the market scored a double-digit growth with sales at 1.72 million, up 14.2%, one of the best results in ASIA, hitting the third all time highest level, although negative pandemic effects are still in place.
Due to the huge duties imposed on import all vehicles sold are produced locally. While this is creating local employment, the negative effects of this policy are clear in the low safety and quality standard in the market and by the relative high prices offered by the few manufacturers, working in an low competition environment.
The competitive arena, the 2021 winner was the leader, Honda with sales up 28.2%, even thanks to launch of new models.
In second place the local brand United Auto lost 14.7% and the third, Road Prince, lost as well (-11.9%).
Ranking fourth Suzuki gained 68.3%, while the other Jap, Yamaha, lost 29.8%.