LAHORE: Motorcycle manufacturing and sales have continued their vigorous growth, from around 100,000 bikes in 1999-2000 to 2.6 million in 2021-22, despite recession or boom. However, 2022-23 could be the first fiscal year since 2000, when bike manufacturing will drop steeply. Does the bike slump indicate Pakistan’s worst recession? The drop in bike manufacturing and sales may also be due to the steep increase in the price of two-wheelers.
Since bikes are purchased and used by low-income buyers, the sales might have slowed a bit if the prices remained stable, however, at current rates and almost stagnant incomes, people are struggling to make ends meet.
Another reason for the drop might be declining agricultural productivity, as most motorbike sales in the country are accounted for in rural areas. Recent floods that affected over 34 million people are a reason for slumping sales.