It’s been a year; the local auto industry is bearing the brunt of the prevailing economic crisis in the face of import restrictions imposed in May’22. Following the carmakers, bike manufacturers in the country are also reporting an extraordinary low in sales. The same is the situation of production and revenue.
Reports have informed that bike sales plunged last month. Yamaha and Suzuki bike sales fell flat, whilst Honda observed a slight jump in sales. Suzuki observed a month-over-month (MoM) decrease of 40%, selling 1,156 bikes in April 2023. Meanwhile, Yamaha reported an MoM slump of 50.4% and sold 841 bikes last month.
Honda Atlas witnessed a Month-on-Month (MoM) jump of 2.4%. Chinese bikes have a similar story to the present – witnessed a down of 34% in sales.
The motorcycle makers haven’t mentioned any reason behind this fuss. While analysts hold import curbs and weeks-long production cuts responsible for the effects. Additionally, back-to-back increase in bikes price, and burgeoning inflation has also shattered the customer’s purchasing power.
Pak Suzuki Halted Bike Production for 19 Days
Amid ongoing economic meltdown and prevailing uncertainty in the local auto industry, Pak Suzuki, one of the affectees, faced the worst came with another production cut.
Citing a shortage of inventory, the company has announced to halt the production of bikes for almost three weeks or 19 days. In an official notification, Pakistan Suzuki Motor Company (PSM announced that the bike assembly plant would remain closed from May 23 to June 10.
Conclusion
Rupee depreciation, depleting foreign exchange reserved following the not-well-thought financial policies of the incumbent government, steep rise in inflation, and above all, the infamous ‘Import Embargo’ inflicted by the State Bank of Pakistan has not only ruined the country’s car industry but has also urged the bike to face sale shocks.
