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Hefty investment keeps motorcycle industry boom

Pakistan motorcycle industry is flourishing. It has met 95 percent localization through state-of-the-art technology implementation along with billions of rupee investment and thousands of skilled work forces. In this potential industry, contributors have played their vital role to not only making it able to compensate local demand but also for exporting various models of motorbikes in different countries.

Here is the list of top motorcycle manufacturers in Pakistan:

ATLAS HONDA: Atlas Honda Limited is a joint venture of Atlas Group, Pakistan and Honda Motor Company, Japan. Its plants are situated in Sheikhupura and Karachi. Atlas Group assembles four motorcycle models in Pakistan. Honda CD 70 is the most popular model which has gained the highest ranking for its usage economy-wise.

It was the first manufacturer to embrace Euro-II technology in Pakistan. Currently all motorbikes are built on Euro-II technology.

SUZUKI MOTORCYCLES: Pak Suzuki Motor Company Limited being the largest car assembler in Pakistan took the second place in top motorcycle manufacturers. The company launched its completely new motorcycle model called Suzuki Raider-110cc bike with Euro-II ability. Among other models it manufactures Sprinter ECO, Sprinter, and Suzuki GS-150 all with Euro-II technology.

Pak Suzuki, after Atlas Honda was the first to introduce Euro-II powered motorcycles in Pakistan.

DAWOOD YAMAHA: Under the umbrella of Dawood Group of Companies, Dawood Yamaha Limited was formed in a joint venture with Yamaha Motor Company Motor Company (YMC), Japan. The company has been known with two names Yamaha or DYL Motorcycles in Pakistan is the third most famous motorcycle manufacturer nationwide.

Currently the company features all models brand ranging from Yamaha Dhoom, Yamaha Junoon and recently launched new model DYL Mini-100, all of them are 4-stroke while only Mini 100cc is powered with Euro-II technology.

Among others, it also manufactures 2-stroke Yamaha YB100 as an index model.

SOHRAB MOTORCYCLES: In 1994, Sohrab took initiative in motorcycles market exceeding its major product line of bicycles. The company introduced its first Sohrab motorcycle JS70.

Being one of the oldest cycle manufacturers in Pakistan, Sohrab has also extended its business area to export markets of Bangladesh and Afghanistan.

HABIB MOTORCYCLES (PVT) LIMITED: Habib Group of Companies took the entry as latest venture of the Habib Motorcycles (Pvt) Ltd. Habib Group collaborated with state-of-the-art technology and export quality equipments to introduce its flagship 70cc model called HB70.

The new model being approved by EDB (Engineering Development Board) and PSQC (Pakistan Standard for Quality Control) has been successful so far. The bike comes with 6-month warranty and after sale service.

GHANI AUTOMOBILE INDUSTRIES: Ghani Automobile Industries has its plant situated in Lahore and manufactures a range of different motorcycles models. The company first established in 2004 and appeared commercially with its first two-wheeler during 2005.

Its product line ranges from 70cc and 100cc motorcycles to 100cc three-wheeler motorcycle rickshaw. It also offers 200cc water-cooled product.

PRODUCTION IN 2016

Motorcycle production in the country reached its highest level with 2.2 million units produced during 2016, up by 18.53 percent as compared to 1.9 million motorcycles produced in 2015.

Detailed assessment of the Pakistan Bureau of Statistics (PBS) latest data reveals that motorcycle production, including locally-made Japanese brand and Chinese-made imported motorcycles brand, stood at 2,267,468 units in 2016 while 1,912,944 units were produced in 2015.

PRODUCTION IN 2015

According to latest figure from data Pakistan Bureau of Statistics, a total of 2,071,123 units of motorcycles were produced in the country this year, up from 1,777,251 units built during 2013-14.

This splendid growth in production is attributed mainly due to lower oil prices and an improved business environment.

It has provided a much needed boost to the motorcycle industry in the outgoing year because these two wheelers have been become a popular choice for Pakistanis to commute amid the lack of public transport facilities in the country.

There are more than 60 motorcycle makers in the country with Honda still leading the market by a notable margin.

Motorcycle manufacturers produced over 175,000 motorcycles per month on average, indicating a rapid increase in the usage of the transport vehicles.

Economical Chinese made motorcycles turn out to be the most fatal form of transport, massively contributing to road traffic accidents.

With substandard parts with a low quality chassis used in motorcycle assembly the motorcycles often do not meet safety standards.

According to a report, road accidents in Pakistan have taken a dreadful toll in the last 10 years as 15 people are killed daily in road and traffic accidents in the country.

The study found that out of 3,375 road accidents which occurred in the last six months, road traffic accidents between motorcycles amounted to 2,787 and affected around 4,122 people.

The percentage of road and traffic accidents involving motorcycles during the last six months was 83 percent.

The double-digit growth in motorcycle production indicates that middle-class is growing faster than ever in recent times.

Moreover, easy installment plans introduced by local retailers for motorcycle lease is another reason for rapid growth in motorcycle production.

It must be mentioned here that there are local retail outlets that offer motorcycle lease with installments going as low as Rs 2,000 per month.

This growth in motorcycle production will only increase during the years to come. However, our current road infrastructure in urban centers isn’t prepared for the incoming boom.

Increase in motorcycle usage, without proper training and licenses, coupled with growing overall traffic have resulted in an increase in accidents during the recent past.

It is now time to regulate motorcycle riders in a stricter manner to make sure that they, as well as other motorists on the roads are safe.

In a developing country like Pakistan, the idea of separate roads/lanes for motorcycles is impossible, given the urban infrastructure in place.

The concerned authorities must take measures to ensure that motorcyclists don’t pose a threat to themselves or others on busy urban roads across the country.

However, the concerned authorities must take measures to ensure that motorcyclists don’t pose a threat to themselves or others on busy urban roads across the country.

Pakistan’s local motorcycle producers are planning further investment in their existing units to cope with domestic demand and successful launch of their products in global markets.

The motorcycle industry analysts have pointed out that despite numerous hiccups the economy had during past four years, the growth in motorcycle production has been robust at 15 percent.

A decade back, the total motorcycle production in Pakistan was around 100,000 units, now the largest player alone is rolling out millions of units.

Industry is on the path of sustained growth. The local demand for motorcycles is likely to exceed a huge million units within a year or two.

The global response to quality motorcycles indicate a sustain and healthy growth in exports as well.

The industry experts are seeing themselves as the largest exporters in the engineering sector.

The sustained growth has been possible due to regular investment and up-gradation of technology in the motorcycle industry.

The growth we see in motorcycle production would not have been possible without huge investment.

The industry now has to fulfill the growing demand in both domestic and global markets and for this, it needs to invest a bulk amount in the next couple of years to keep abreast with the market needs and demands.

All the motorbike producers having production of 50,000 units or above is now planning to expand their capacities to cope up with the market demands.

There are almost a dozen players that have achieved this production level.

These units have been regularly making investments to increase their market share but now they have reached a level where they have to invest in high-tech parts to ensure that instead of having 90 percent local components, the Pakistani bikes are produced by 100 per cent local parts.

The market analyst urged that in such an encouraging situation, the government should refrain from taking steps that might jeopardize this investment.

An investment by local players without any government concession is better than vying for similar investment over a period of 10 years from a foreign player on huge concessions.

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