Auto Industry Faces Stagnation as Bike Sales Decline for Another Month

• Auto industry stagnation persists as bike sales decline for another month.
• Atlas Honda, Pak Suzuki, and Yamaha experience significant drops in motorcycle sales.
• Import restrictions and high prices contribute to the industry’s challenges.

It has been a year since the implementation of import restrictions on automobiles, and the impact on the industry is evident. Since May 2022, there has been a continuous decline in production, sales, and revenue, putting a halt to the expansion of the auto industry.

According to data provided by the Pakistan Automotive Manufacturers’ Association (PAMA), bike sales have dropped by 15% in June 2023 compared to the previous month. Atlas Honda, a prominent player in the market, sold 75,056 bikes, experiencing a 14% decline month over month (MoM).

Pak Suzuki’s motorcycle sales fared even worse, with only 363 units sold in June, a staggering 56% drop compared to May 2023. Yamaha also witnessed a decline, selling 942 motorcycles in June, which is 15% lower than the previous month. Chinese motorcycle sales saw a decline of up to 22% compared to the previous month.

While the data does not explicitly state the reason for this reduction, industry analysts believe that import restrictions and associated production disruptions are likely contributing factors affecting bike manufacturers.

Furthermore, some industry observers point out that the inflated prices of motorcycles could also be a significant factor behind the declining sales. Although there have been rumors of import restoration in the auto sector, sales are expected to remain weak in the near future as the industry slowly recovers from the economic and operational challenges it faces.

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