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Atlas Honda takes leading role in the Pakistan’s motorcycle market

As per the latest reports from Pakistan Automotive Manufacturers Association (PAMA) about 1 million units have been produced over the period from July 2016 to March 2017 out of which about 51 percent of the motorcycles have been produced by the Japanese giant Honda Atlas.

There are more than 60 motorcycle makers in the country with Atlas 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.

The local motorcycle industry comprises of three major Japanese players which include Atlas Honda, Pak Suzuki Motors, Yamaha Motors Pakistan and tens of local manufacturers/assemblers which produce more than 2 million units annually. The market mainly revolves around two engine displacements 70cc and 125cc. The 70cc engine is more or less obsolete from the world, but in Pakistan, it is the most competitive market segment followed by 125cc engine category.

ATLAS HONDA ACHIEVEMENTS

Atlas Honda Limited (AHL) motorcycle production and sales joint venture in Pakistan completed the completion of a new second production line at its existing Sheikhupura plant. With the newly added second line, the assembly capacity of the plant now reaches 1.2 million units, which is double from its original 600,000 units. AHL plans to carry out its production enhancement in machining and other fields at the Sheikhupura Plant during the next three years in stages to accommodate the expected expansion of the motorcycle market in Pakistan.

Atlas Honda is now well poised to serve the needs of the customers in a timely manner. The successful partnership between Honda Motors and Atlas Group is now in its 53rd year and is a symbol of the Pakistani market’s resilience and future potential. AHL produces motorcycles at two plants – the Karachi Plant in the southern part of the country and the Sheikhupura Plant in the northeastern part of the country. The annual assembly production capacity has now become 1.35 million units, with 150,000 units from the Karachi Plant, and 1.2 million units from the Sheikhupura Plant.

 

PRODUCTION AT PEAK 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. 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.

The phenomenal growth in production of motorcycles was due to lower oil prices and an improved business environment which provided a greater needed encouragement to the motorcycle industry in the outgoing year. The total number of motorbikes stands at around 933,000 compared with around 770,000 sold during the same period last year.

In 2016 alone Pakistan produced 2 million motorcycles, with 46 percent of those are being made by Atlas Honda, one of the leading motorbike brands in the country.

The numbers of bikes manufactured by each company in the 2015-16 fiscal years given below:

Atlas Honda810,539 units
United Motorcycle262,774 units
Road Prince166,836 units
Unique148,818 units
Super Star95,698 units
Super Power94,358 units
Crown69,110 units
Power62,560 units
HI Speed56,287 units
Yamaha20,100 units
Suzuki16,832 units
AUTOMATIC INTRODUCTION

The Super Power Company introduced an automatic scooter in Pakistan and did not get a great response.

The Union Star also introduced the same technology and launched fantastic 70cc bike. Just like normal bikes, the automatic bikes have no clutch, kick or gearbox. The 70cc bike uses direct drive technology for the operation.

Many numerous sources such as 4- transmission bike have a single cylinder engine, which holds petrol up to 9 liters. The price of bike is reasonable and cost around 45,000 rupees.

The bike is user-friendly and operates quickly. Automatic bikes in Pakistan do not gain popularity because people do not leave manual transmissions and their comfort zone.

Honda CG125 is the most-liked bike because it is simple and durable. This bike is fully assembled in Pakistan and gives a significant economic factor. The bike is fully automatic and improves the reliability.

None of the manufacturers are offering any locally manufactured/assembled new and innovative products. Technology and innovation is necessary and Pakistani motorcycle industry has lots of capabilities to grow in a very brief time with a concentration on moderate yet modern bikes. Moreover, this will open new doors for the industry to export these motorcycles to our neighboring countries.

MOST PROFITABLE MARKET

Pakistan is the most profitable motorcycle market in the world. There represents a large growing middle-class, and a high percentage of youth with limited financial resources, therefore, cost effective means of personal transportation for middle class is motorcycles. Motorcycles have become a popular option for Pakistanis to commute amid the absence of public transport facilities in the country.

Although a motorcycle is considered as the cheapest personal transport vehicle in Pakistan, it has its own share of problems. It is the leading cause of traffic accidents. Bike riders are also more prone to breaking traffic laws compared with any other mode of transport according to publicly available data.

This is further evident by the fact that 80,000 challans were served to bike riders alone in just one month in Lahore.

Economical made motorcycles are the most fatal form of transport. They are increasingly contributing to road traffic accidents. These motorcycles often do not meet safety standards. 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.

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