Import of Used and New Motorcycles increases in Pakistan
Motorcycles demand is increasing continuously in Pakistan. Resulting in numerous bike companies setting plant in Pakistan. In fact, local bike companies are increasing as well but thats not it. The demand is high to an extent that even used motorcycles are being imported in the country. According to official data statistics, the motorcycle import is increasing specially in the second half of the year. In particular for used and new motorcycles with high power engine.
At one point, people really like to purchase imported products. On the other hand. these imports are going to have the negative effect on economical conditions. However, there is five times increase in used and new motorcycles import in July-September in comparison to April-March. The total bill of imports in April -March added to be $500000. Whereas in July – September the total amount is $2480000. According to report by Pakistan Bureau of Statistics cost of used and new motorcycles is 50% more after 2014-2015. Conversely, the number is continously increasing for years after 2015. The total cost in 2014-2015 was $1.74million. Whereas in 2015-2016 and 2016-2017 the cost of importing used and new motorcycles is $2.9m and $2.99m respectively. Although there is slight increase in number but it will have bad effects in long term.
Surprisingly, according to stakeholders the sale in Pakistan for new motorcycles is very less. Although the number of bikes being imported in the country is certainly high. However, only 25-30 units of new motorcycles are for commercial market especially in the category of heavy bikes. Most of the new motorcycles which Pakistan is importing are for government departments. Especially, motorcycles with an engine power of 250cc or above. The cost of each new motorcycle is minimum 1 million. These new motorcycles are either for traffic police and police or for National Highway Authority (NHA).
In addition, companies are trying to sell 250-700cc used motorcycles to young and rich customers in the country. On the other hand, few of vehicle assemblers are also importing high engine power bikes. In addition, small businessmen are even involving themselves in this business. They import high power bikes and sell them in a local market. In contrast, increasing total bike production to 2.41m in 2016-2017. In comparison to2million units in 2015-2016. Chinese assemblers production also increase by 0.1m in 2016-2017, making a total of 1.3m units. Moreover, Japanese bikes production increase to 996,612 units in 2016-17. Honda alone manufactured 964,640 units in 2016-17. Whereas the company only made 811,044 units in 2016-2017.
Moreover, 326731 units produced by United Motorcycles in 2016-2017 producing only 262779 units last year. Nevertheless, there is a steep increase in production units for almost all the manufactures in Pakistan. In 2016-2017 Unique, Super Star and Super Power manufactured 178,256, 117,071 and 111,714 units. However, in 2015-2016 the production remained limited to 148,818, 95,698 and 94,358 units for Unique, Super Star and Super Power respectively.