The Pakistani automobile industry is facing a tough situation due to the government’s import restrictions on vehicles, which have affected the availability and affordability of cars and bikes. However, some bike manufacturers have managed to increase their sales in recent months, while Pak Suzuki, the largest motorcycle maker in the country, has faced a production shutdown and criticism for its high prices.
The import restrictions were imposed by the government in May 2022 to limit the trade deficit and protect the local industry. However, these restrictions have also restricted the supply of vehicles, leading to a drop in production, sales, and revenue for the automakers. According to the Pakistan Automotive Manufacturers Association (PAMA), car sales declined by 19% in May 2023 compared to April 2023.
Despite the challenges facing the industry, some bike manufacturers have shown flexibility and growth in their sales. Atlas Honda, the market leader in bikes, sold over 87,000 units in May 2023, representing an 18.5% increase from April 2023. Yamaha also performed well, selling over 1,100 units in May 2023, a 22% increase from April 2023.
However, Pak Suzuki, which produces over 40% of the bikes in Pakistan, has been struggling to cope with the import restrictions and market conditions. In June 2023, the company announced that it would shut down its production for six days due to a shortage of imported parts. The company has also been facing backlash from customers and dealers for its high prices, which have made its bikes unaffordable for many Pakistanis.
The future of the Pakistani automobile industry is uncertain. The government has hinted that it may lift the import restrictions soon, but this could lead to a surge of imported vehicles and further damage the local industry. The industry also needs to improve its quality and competitiveness to meet the demands of the customers. In the meantime, Pak Suzuki and other automakers will need to find ways to reduce their costs and make their vehicles more affordable if they want to survive.