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One year has elapsed since the country’s auto industry is bearing the brunt of import restrictions inflicted by the State Bank of Pakistan. Starting from May 2022, there has been a continuous decline in the production, sales, and revenue of the industry. Consequently, the growth of the auto sector has completely ceased. Bike and car makers are announcing production shutdowns in face of zero inventory.
Based on information provided by the Pakistan Automotive Manufacturers’ Association (PAMA), bike sales in June 2023 have experienced a 15% decrease compared to the previous month. Atlas Honda, for instance, sold 75,056 bikes, indicating a 14% decline in sales on a month-over-month basis (MoM).
In June, Pak Suzuki witnessed a significant decline in motorcycle sales, with only 363 units sold, marking a 56% decrease compared to May 2023. Yamaha also experienced a decrease in sales, with 942 motorcycles sold, reflecting a 15% decline compared to the previous month. Chinese motorcycle sales saw a drop of up to 22% compared to the previous month.
The data does not explicitly state the cause of this reduction. However, analysts think that the implementation of import restrictions and subsequent production disruptions are likely affecting motorcycle manufacturers.
Some industry observers also attribute the decline in sales to inflated prices of motorcycles. Although there are rumors in the market suggesting that imports have been reinstated for the auto sector, sales are expected to remain weak in the foreseeable future as the industry slowly recovers from economic and operational challenges.
Car Industry Facing Same
As per Pakistan Automotive Manufacturers Association (PAMA) report, car sales (year-on-year) plunged by staggering 59% selling 126,879 units in FY23 compared to 279,267 vehicles in fiscal year 2022. Meanwhile, month-over-month sales increased by 10%, selling 6,034 vehicles in June against 5,464 units sold in May.
What do you think about the dwindling sales of cars and bikes in Pakistan? Drop your thoughts in the comments section.
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