Pakistani Motorcycles Industry started the new fiscal year in line with the previous quarter losing over 12% both in April and in May. Honda dominates with share at 60% while the market stands as the sixth biggest market in the World.
Pakistani economy is showing signs of stabilization, with the large current account deficit narrowing by almost one fifth in July–January compared to the same period a year earlier, primarily due to higher remittance inflows from abroad and a reduction in the trade deficit. However, public debt continued to rise to record levels in January, while manufacturing output in July–December decreased in annual terms.
Economic growth is set to decelerate this fiscal year as the country grapples with a large current account deficit, fragile government finances and limited international reserves. Austerity measures to alleviate these problems, coupled with waning investor confidence, are likely to restrain growth.
According to data released by the Pakistan Association of Automotive Manufacturers, in the first three months of the 2019 the market has shown discontinuity with the previous trend, breaking the growth after years of records. Indeed total sales (including both motorcycles/scooters and three-wheeler/rickshaw) have been 425.672, down 12.4% from the correspondent month last year, which was the all time record. The already negative trend reported in the first two months, was further deteriorated in March when sales dropped 18.3%.
In April sales have been 155.215, down 12.3%, and in May 152.035, down 10.2%, with year to date figures at 732.922 (-11.9%).
Pakistani motorcycles market has been the fastest growing in the World in this decade and probably actually need to take a break after a so fast growth.
Indeed, the milestone of 1 million units has been hit for the first time only in the 2015 and now the market is already running towards the 2 million annual sales. Following the over 1.4 million sales achieved in the 2017, the market further boomed in the 2018, with a record of 1.900.382 sales. up 6.6%, and scoring the new All Time Record.
Best selling Brands
As far as regard the competitive landscape, all competitors are producing locally and just a reduced number of manufacturer are fighting in the market, with local brands (DYL, Sohab, United Auto, Sazgar, Road Prince, Ravi) against Indian (Hero), Japanese (Honda, Suzuki and Yamaha) and Chinese (Qingqi).
The most of the demand is concentrated on motorbikes in the 125-150 cc range quite flexible for the local unpaved roads and affordable for people with a still limited purchase power. Premium brands are not yet landed here as the scooter manufacturers, because their segment are negligible. Even Japanese are locally producing low displacement-low cost models and not importing their top class models.
Market leader is Honda with over 60% of market share and 2018 sales at 1.15 million units (+10.8%) with the CB 150F as best model.
In second place there is the local brand United Auto with 431.517 sales (+16.0%) and in third Road Prince with sales at 207.485 (-11.2%). In the recent months the Indian Hero has not reported sales and we fear they are going to leave this country, which was anyhow marginal as volume for them.