Pakistan's Vibrant Middle Class Driving Motorcycle Sales Boom

[RiazHaq]

http://www.riazhaq.com/2016/09/pakistans-vibrant-middle-class-driving.html

Pakistan's fiscal year 2015-16 saw production of motorcycles soar to a new high of over 2 million units. This represents a 16.5% surge from last year. At the same time, passenger cars and light trucks sales rose to over 200,000 in fiscal 2016, a 20% jump over the same period last year.

Motorcycle Sales:

Rising motorcycle sales in Asia's developing nations like Pakistan are seen as a barometer of expanding middle class. It is, in part, attributed to rising incomes and availability of bank financing at historic low interest rates in the country.

As many as 2,071,123 motorcycles were manufactured during July-June (2015-16) compared to 1,777,251 units during July-June (2014-15), according to the latest data released by Pakistan Bureau of Statistics (PBS) and reported by Pakistani media.

Car Sales:

In addition to the double digit increase in motorcycle sales, Pakistan also experienced 20% jump in sales of passengers cars, light commercial vehicles (LCVs), vans and jeeps. The total sales of local vehicles increased by 21% to 216,568 as compared to 179,953 units sold in FY15, according to industry data.

Auto Parts Industry:

Rising auto and motorcycle sales are helping boost Pakistan's auto parts industry as well. “We are getting orders and the pace is increasing,” said Sultan and Kamil International CEO Faisal Mahmood speaking to Pakistani media on the sidelines of the 12th Pakistan Auto Show 2016 held at the Lahore International Expo Centre. Mahmood’s company makes more than 350 automotive parts and exports to all major automobile markets in the world.

Other Growth Industries:

Among other industries seeing significant growth are pharmaceuticals (6.54%), cement (17.01%), chemicals (8.13%), non metallic mineral products (10.02%), fertilizers (13.81%), leather products (7.76%) and rubber products (7.16%), according to media reports.





http://www.riazhaq.com/2016/09/pakistans-vibrant-middle-class-driving.html

 

[RiazHaq]

Let me pre-empt expected bragging by Pakistan's neighbor to the East by adding the following:

It's 16.5 million motorcycles sold in India last year vs 2.1 million in Pakistan. India's motorcycle sales are growing slower (7%) than in Pakistan (16.5%)

Motorcycle sales have been expanding at a compound growth rate of 7 percent per year since 2010/11 and hit a record 16.5 million in 2015/16, according to the Society of Indian Automobile Manufacturers.

http://in.reuters.com/article/india-gasoline-boom-kemp-idINKCN11L1GH

 

[N.Siddiqui]

Good going Pakistan, if a robust and export oriented policy for bike export is drafted to central asian republics, Afghanistan and neighboring countries, the actual production will get a boost further. Yamaha has started production in a new plant at port Qasim with a current and future investment of 150 million USD.

As for the automobiles, with the new auto policy many new aspirants are about to land in Pakistan, Dawn reported today.

Also most of the motorcycle buyers belongs to the semi urban to rural areas, so this is a good sign of more empowerment for rural folks, with village to market road construction and sign of a rising rural economy.

 

[livingdead]

what are the popular brands in pak?

 

[Pakistani till death]

what are the popular brands in pak?

Suzuki, yamaha and Honda

 

[marbella]

 

[N.Siddiqui]

Suzuki, yamaha and Honda

You can add Crown CRLF 70, Hero, Ravi, Super Power, Unique, Metro and Habib, especially in 70 cc range.

 

[livingdead]

Suzuki, yamaha and Honda

tried to google... honda seems to be quite popular... followed by yamaha

 

[karakoram]

View attachment 334739

puri Pakwheels ki picture he send ker de

 

[RiazHaq]

Pakistan wants to promote domestic production to create jobs for its growing labor force.

Excerpt of Wall Street Journal interview with President of Yamaha Motors in Japan:

WSJ: What about in South Asia?

Mr. Yanagi: We want to expand business in Pakistan and Bangladesh as soon as possible. We had a production venture in Pakistan but we dissolved it five years ago. We are now planning to begin local production again, on our own this time.

In Bangladesh, we import motorcycles from our plant in India on a small scale, but we are studying now the best way of running operations because of rising tariff barrier there.

http://www.wsj.com/articles/SB10001424052702304520704579128733162622954


Since this interview was conducted in Oct 2013, Yamaha has set up a motorcycle plant that began production last year in Pakistan.

“The new investment from Yamaha will create jobs and bring new technologies,” said Yamaha Motor Company President Hiroyuki Yanagi, adding that, “Pakistan is all set to become one of the top global markets of motorcycles.

http://tribune.com.pk/story/876873/investment-yamaha-resumes-assembly-in-pakistan/

 

[911]

Let me pre-empt expected bragging by Pakistan's neighbor to the East by adding the following:

It's 16.5 million motorcycles sold in India last year vs 2.1 million in Pakistan. India's motorcycle sales are growing slower (7%) than in Pakistan (16.5%)

Didn't see you in August where were you

 

[Jackdaws]

Congrats. Although I hope for your sake, I hope it doesn't become a complete mess like India where the guys in motorbikes are a nuisance - cutting and overtaking from the wrong side, driving on the wrong side of the road, parking haphazardly etc. I have become so fried with driving that have started Ubering to and from work. Invariably get into a argument with a biker once a week. If there was a good public transport system, I would gladly use it.

 

[RiazHaq]

Honda Pakistan has announced plans to double its production capacity in three years, to cater to the estimated growth of the motorcycle market in the country.

Atlas Honda Ltd. (AHL), the joint venture company that takes care of production and sales of Honda motorcycles in Pakistan, has two manufacturing plants – one in Karachi (in Southern Pakistan) and the other in Sheikhupura (in Northeastern Pakistan). The former produces 1.5 lakh units and the latter rolls out 6 lakh units per annum.

The capacity expansion will be carried out in the Sheikhupura plant, to equip the facility to produce 12 lakh units per year. The plan will be executed phase-wise, with the first part of the operation involving the installation of a new production line which will commence functioning in October 2016. Further stages over a three year period is planned to achieve the target of producing 1.2 million motorcycles a year.

The investment AHL will be making for this plant expansion process is approximately USD 50 million (INR 327.32 crores). About 1,800 jobs are estimated to be created.

http://indianautosblog.com/2015/11/honda-pakistan-double-motorcycle-production-capacity-201659

 

[unbiasedopinion]

Please dont repeat the mistake indian cities/city planners have done. Try to push for public transport as much as you can. The race for having private cars only leads to pollutions, congestions, parking issues, fights among neighbours for the parking space, apart from health hazards because of this.

 

[Viper0011.]

Let me pre-empt expected bragging by Pakistan's neighbor to the East by adding the following:

It's 16.5 million motorcycles sold in India last year vs 2.1 million in Pakistan. India's motorcycle sales are growing slower (7%) than in Pakistan (16.5%)

Motorcycle sales have been expanding at a compound growth rate of 7 percent per year since 2010/11 and hit a record 16.5 million in 2015/16, according to the Society of Indian Automobile Manufacturers.

http://in.reuters.com/article/india-gasoline-boom-kemp-idINKCN11L1GH

Pakistan is one of the fastest growing country due to excellent work by the current government, from infrastructure to luring Wall St. India and China are larger economies who are getting saturated in many ways, still plenty of potential but not what they were back in the 1995-2010. But Pakistan's 1995 just took place in 2014 since this government took the office. So their reforms, trade policies, and growth oriented agenda has started to work.

For the next decade and a half, Pakistani economy will grow faster than India and China's. That's a fact. Same thing with stock exchange, Pakistani stock exchange grew by 400% in the past three years. That's insane growth and it was reported in Forbes a couple of days ago.