Pakistani Market to See Significant Rise in Motorcycle Production

Motorbike – Dangerous but Economical:

Though considered dangerous and unsafe to drive, a motorbike is an extremely economical personal conveyance in term of both affordability and fuel consumption. A person who can’t afford a car can easily buy the motorbike. Another important factor that contributes to the rising trend in the demand of bikes is that they can be easily purchased on installments. The installment corporations ask for a small amount in advance while the remainder is to be paid in installments.

Nearly 10% Rise in Motorbike Production:

As a general trend, a large number of motorcycles are added to the roads in Pakistan every year. The first month of the present fiscal year (2016-2017) has seen a significant rise in the number of motorbike production as compared with the same month of the previous fiscal year.

The Pakistan Bureau of Statistics (PBS) has revealed that the number of bikes manufactured in July 2015 was 155,325. A year later, in July 2016, the production of motorbikes has reached 169,879. It means, the market has witnessed the production of additional 14,554 or 9.37% bikes during the first month of the present fiscal year.

Surge in the Production of Heavy Transport Vehicles (HTVs):

The surge in the production of buses is even greater, i.e. more than 85%! The output of buses in July 2015 was 62 which grew to 115 in July 2016. This increase in the number of public transport units is particularly in response to growing needs of people for transportation.

The stats released by PBS also indicated around 58% rise in the production of trucks. Compared with 323 trucks, produced previous year, as many as 512 trucks have been manufactured this time.

Decline in the Production of Light Transport Vehicles (LTVs):

The production of light transport vehicles is, however, showing the opposite trend, i.e. the decline of 4 percent. According to PBS data, the manufacturing of cars and jeeps went down from 13,076 units (July 2015) to 12,550 units (July 2016).

The same is the case with light commercial vehicles (LCVs). The production of LCVs has seen the decline of over 35 percent. The units of light commercial vehicles, produced during 2015, numbered 3070. This time, it has gone down to just 1,990 units.

Overall, the large scale manufacturing (LSM) sector of Pakistan has shown a growth of around 2.62 percent in the month of July 2016 as compared against corresponding month of the previous year.

The Future of Motorcycles:

As it can be seen from the information given above, there is decline in the production of light commercial vehicles (LCVs) and light transport vehicles (LTVs). On the other hand, the present fiscal year (2016-2017) has seen a significant rise of nearly 10% in the production of two-wheelers. It serves as a hint to the bright future of the bikes.

For the people belonging to lower class and the lower middle class, the income usually remains static but their expenses are always on the rise. Resultantly, they are less likely to think about and afford a four-wheeler vehicle as a means of transportation for their family. On the other hand, the purchase of a motorbike is not that much difficult for them. They can afford it even while facing the constraints of their meagre income.