Motorcycle manufacturing and assembling companies in Pakistan are facing tough times. With the increasing prices of raw materials, the dollar exchange rate, and strict govt duties, sales are going down. Among the big 3, Yamaha and Suzuki’s sales decreased by 50% while Honda is slightly in profit. Here is what we know so far!
Our automobile industry is in hot waters since covid. As the imports were banned at that time, the supply chain suffered badly. This was coupled with the increasing dollar rate and now when the Govt has imposed a ban on importing semi-finished kits, our industry just stopped. Many big players like Pak Suzuki and Toyota had to announce nonproduction days and close down their plants.
This plant closure cost a lot to Suzuki Motorcycle sales. In April Suzuki Only manufactured 13 motorcycles and again announced Non production days. The dent in their sales is due to a lack of raw materials to manufacture a motorcycle. Suzuki sold 1156 motorcycles while Yamaha sold 846 motorcycles in the last month. This is an alarming situation. To counter this situation, the companies have announced a 0% markup sales mechanism to boost sales.
Honda however has seen a slight increase in their sales. Last month Honda observed an increase in its sales of 2.4%. The local motorcycle manufacturers (Chinese Brand) have seen a 34% decrease in their sales. This is because of the fact that Honda has introduced its installment scheme while the Chinese brand is not available on the 0% markup scheme.
The Suzuki Motorcycle sales were initially driven because of Suzuki Installment mechanisam. They used to sell their motorcycles on 0% markup and it was a huge success for them. Suzuki has also closed their installment sales and now thy are facing a hard time. Do let us know what do you think!