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As many multinational companies are looking for new places to expand, Pakistan has been recently taken into consideration. Although it is still a developing country and lacks the necessary infrastructure for becoming a competitive industry, more and more companies are willing to take the chance and invest in their future here.
One of the upcoming developing industries is that of motorcycles and motorcycle gear. Pakistan is the 33rd largest country in the world, counting for approximately 197 million people, which is about 60% of the total US population.
As its capital and biggest cities continue to develop chaotically, it comes as no surprise that the increased traffic has also become a major problem. Thus, people are looking for faster, cheaper alternatives to commute and get to work on time, which means motorcycles and other two-wheel vehicles are extremely popular.
The market trends
The world economy continues to be expanding and there are no signs of another financial crisis, at least for the next 3-4 years. Benefiting from a positive economic environment, Pakistan seems to be benefitting from new Foreign Direct Investments in the motorcycle field, as reputed players open new factories on its territory.
Thanks to the government’s open policy, new manufacturers benefit from the latest technologies developed in the Asian continent, including in China and Japan, which help the local factories produce more at higher standards and lower costs.
The milestone of 1 million units sold in the country was reached for the first time back in 2015 and almost doubled three years later, counting for little over 1.9 million units sold in 2018.
However, the tax increase and the lack of a coherent economic policy from the government, combined with the depreciation of the country’s national currency lead to a stagnation of the motorcycle industry in 2019.
Best selling brands
Most competitors are producing locally which means lower taxes and end prices for the consumer. Given that the country still has plenty of unpaved roads and the traffic is hectic, to say the least, the demand is concentrated on low-power motorcycles, with 125-150cc engines. Therefore, we cannot talk too much about luxury brands like BMW, Ducati or Harley-Davidson entering the market and fighting for recognition.
Pakistan is still in need of trustworthy and popular brands like Honda, and perhaps this is why the Japanese manufacturer continues to hold over 60% of the market share and sales in the past couple of years.
United Auto and Road Prince come in secondly and thirdly, counting for little under 30% of the market share. However, we are mainly talking about local preferences and not about the motorcycle industry as a whole.
On the opposite pole, Pakistan has become a popular destination for manufacturers all over the globe due to the low local taxes and a favorable economic climate. The labor force is cheap but low qualified, which means most of the factories here focus on assembling pieces and distribution rather than innovation and management.
Top motorcycle manufacturers in Pakistan
Atlas Honda Ltd, a joint venture of the Honda Motor Company and a local company, Atlas Group Pakistan, is the main manufacturer and distributor locally. The company focuses on the Euro 2 technology, which still means high CO2 emissions and highly polluted air, as opposed to the standard norms in the European Union that go from Euro 3 to Euro 4 and Euro 6.
Pak Suzuki Motor Company, another joint venture with a reputed Japanese brand, is the largest car assembler in the country and one of the biggest motorcycle manufacturers. The company continues to release 125-150cc vehicles that are perfect for the local roads. However, it has recently started to also manufacture and distribute some lower gas-emission models, in an attempt to fight against climate change.
Ghani Automotive Industries is a local company that began its activity in 2004, releasing its first two-wheeler a year later. The brand is known for selling products at competitive prices, with its biggest hits being low-power motorcycles in the 70-100cc range.
The good news is that there are thousands of other small businesses developing on the side, including mechanics, part sellers, insurance companies, and others. And, for those who plan on lifting, carrying, and working on their motorcycles on their own, investing in a locally-produced or international moto garage dolly is the smartest and most affordable move.
One of the upcoming developing industries is that of motorcycles and motorcycle gear. Pakistan is the 33rd largest country in the world, counting for approximately 197 million people, which is about 60% of the total US population.
As its capital and biggest cities continue to develop chaotically, it comes as no surprise that the increased traffic has also become a major problem. Thus, people are looking for faster, cheaper alternatives to commute and get to work on time, which means motorcycles and other two-wheel vehicles are extremely popular.
The market trends
The world economy continues to be expanding and there are no signs of another financial crisis, at least for the next 3-4 years. Benefiting from a positive economic environment, Pakistan seems to be benefitting from new Foreign Direct Investments in the motorcycle field, as reputed players open new factories on its territory.
Thanks to the government’s open policy, new manufacturers benefit from the latest technologies developed in the Asian continent, including in China and Japan, which help the local factories produce more at higher standards and lower costs.
The milestone of 1 million units sold in the country was reached for the first time back in 2015 and almost doubled three years later, counting for little over 1.9 million units sold in 2018.
However, the tax increase and the lack of a coherent economic policy from the government, combined with the depreciation of the country’s national currency lead to a stagnation of the motorcycle industry in 2019.
Best selling brands
Most competitors are producing locally which means lower taxes and end prices for the consumer. Given that the country still has plenty of unpaved roads and the traffic is hectic, to say the least, the demand is concentrated on low-power motorcycles, with 125-150cc engines. Therefore, we cannot talk too much about luxury brands like BMW, Ducati or Harley-Davidson entering the market and fighting for recognition.
Pakistan is still in need of trustworthy and popular brands like Honda, and perhaps this is why the Japanese manufacturer continues to hold over 60% of the market share and sales in the past couple of years.
United Auto and Road Prince come in secondly and thirdly, counting for little under 30% of the market share. However, we are mainly talking about local preferences and not about the motorcycle industry as a whole.
On the opposite pole, Pakistan has become a popular destination for manufacturers all over the globe due to the low local taxes and a favorable economic climate. The labor force is cheap but low qualified, which means most of the factories here focus on assembling pieces and distribution rather than innovation and management.
Top motorcycle manufacturers in Pakistan
Atlas Honda Ltd, a joint venture of the Honda Motor Company and a local company, Atlas Group Pakistan, is the main manufacturer and distributor locally. The company focuses on the Euro 2 technology, which still means high CO2 emissions and highly polluted air, as opposed to the standard norms in the European Union that go from Euro 3 to Euro 4 and Euro 6.
Pak Suzuki Motor Company, another joint venture with a reputed Japanese brand, is the largest car assembler in the country and one of the biggest motorcycle manufacturers. The company continues to release 125-150cc vehicles that are perfect for the local roads. However, it has recently started to also manufacture and distribute some lower gas-emission models, in an attempt to fight against climate change.
Ghani Automotive Industries is a local company that began its activity in 2004, releasing its first two-wheeler a year later. The brand is known for selling products at competitive prices, with its biggest hits being low-power motorcycles in the 70-100cc range.
The good news is that there are thousands of other small businesses developing on the side, including mechanics, part sellers, insurance companies, and others. And, for those who plan on lifting, carrying, and working on their motorcycles on their own, investing in a locally-produced or international moto garage dolly is the smartest and most affordable move.
