Pakistan’s auto industry suffered from import restrictions by the State Bank of Pakistan, leading to a year of decline in production, sales, and revenue. As a result, bike and car manufacturers had to halt production due to depleted inventories.
According to the latest data provided by the Pakistan Automotive Manufacturers’ Association (PAMA), bike sales in June 2023 have seen a 15% decrease compared to the previous month. Atlas Honda, one of the leading manufacturers, sold 75,056 bikes, indicating a 14% decline in sales on a month-over-month basis.
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. Furthermore, Chinese motorcycle sales observed a drop of up to 22% compared to the previous month.
While the data does not explicitly specify the cause of this reduction, industry analysts believe that the implementation of import restrictions and subsequent production disruptions are likely affecting motorcycle manufacturers. Additionally, some industry observers attribute the decline in sales to inflated motorcycle prices.
Despite rumors suggesting the reinstatement of imports for the auto sector, sales are expected to remain weak in the foreseeable future. The industry continues to grapple with economic and operational challenges, and it will take time for a gradual recovery to take place.
According to the Pakistan Automotive Manufacturers Association (PAMA) report, car sales have witnessed a staggering 59% plunge on a year-on-year basis, with 126,879 units sold in FY23 compared to 279,267 vehicles in fiscal year 2022. However, there has been a slight month-over-month sales increase of 10%, with 6,034 vehicles sold in June compared to 5,464 units in May.
