General Economic Updates

Fatman17 said:
Bad news indeed
Click to expand...

Indeed. When production capacity is eroded, you lose more than your manufacturing base; the talent will flee further or die out, putting the country in a position of irrecoverability and giving rise to a lost generation.

I'm at a loss as to what endgame they hope to achieve.
 
Honda is the mkt leader and have the cheap Chinese motorcycles invaded the mkt?
 
Fatman17 said:
Honda is the mkt leader and have the cheap Chinese motorcycles invaded the mkt?
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Honda has a solid quality product; I think the Chinese are mostly selling in large cities.
But the question will be, over time, will the market be worth it for Honda to remain?
 
Fatman17 said:
Bad news indeed
Click to expand...
but what is the change in business policy that is being alluded to by Yamaha ? It is the tightening of Letters of Credit ? Restrictions on imports ? Taxes being demanded ? Resistance to repatriation of profits ? The motorbike is what the the poor and middle class people use for transportation and the market is pretty big in Pakistan.
 
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Watandar said:
but what is the change in business policy that is being alluded to by Yamaha ? It is the tightening of Letters of Credit ? Restrictions on imports ? Taxes being demanded ? The motorbike is what the the poor and middle class people use for transportation and the market is pretty big in Pakistan.
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What good is a middle class whose purchasing power is slowly being eroded? A weakened currency leads to lower profits.

It's possible that Yamaha's business policy could be to see better markets they can invest in and get a better return on investment.
 
@PakFactor

PF sb,

Yamaha Ends Motorcycle Production in Pakistan

Surprised to read that. PAK is a decent sized market. Are they being priced out by Chinese?

Regards
 
Pakistan's motorcycle market is one of the largest in the world, dominated by Atlas Honda and experiencing significant growth, especially after the COVID-19 pandemic, due to the demand for affordable and fuel-efficient transportation. Key drivers include economic factors, a high demand for personal mobility, and strong brand loyalty for models like the Honda CD70 and CG125, known for their excellent resale value. While the market is robust, economic challenges, rising inflation, and global economic conditions can affect its trajectory.

Market Size and Growth
  • Major Player:
    Pakistan is the 5th largest motorcycle market globally, with a surging demand that makes it one of the fastest-growing two-wheeler markets in the world.

  • Significant Growth:
    The market saw a sharp spike in sales during COVID-19 due to rising fuel prices and economic disruptions, making bikes a more viable option for daily commutes.

  • Annual Sales:
    Over 20.4 million bikes were sold between 2007 and March 2025, with a significant portion of these sales occurring in the recent years.
Key Drivers and Consumer Preferences
  • Affordability:
    Motorcycles are highly sought after for their affordability and fuel efficiency, serving as a primary mode of transportation for many Pakistanis.

  • Brand Loyalty:
    Honda is the clear market leader, with its CD70 and CG125 models holding strong brand loyalty and unmatched resale value.

  • Economic Factors:
    The market is sensitive to economic conditions, with economic stability contributing to the surge in sales in recent years.
Major Players and Competition
  • Atlas Honda:
    This brand dominates the market, holding a majority of the market share and achieving record-breaking sales in 2025, according to PakWheels.

  • Other Brands:
    Other notable competitors include United Auto Motors, Road Prince, and Yamaha, though they trail behind Honda's market dominance.
Challenges and Future Outlook
  • Economic Volatility:
    Despite strong demand, factors like high inflation and economic instability can pose challenges to the market.

  • Market Trends:
    The market is expected to see continued demand for both fuel-efficient, budget-friendly models and on-road motorcycles, with significant growth potential in the coming years.
 
SoulSpokesman said:
@PakFactor

PF sb,

Yamaha Ends Motorcycle Production in Pakistan

Surprised to read that. PAK is a decent sized market. Are they being priced out by Chinese?

Regards
Click to expand...
I don't think so. Chinese cars and buses have made major inroads into Pakistan in last 10 years but not motorbikes. Surprisingly I dont see a single Chinese bike on the roads.
 
SoulSpokesman said:
@PakFactor

PF sb,

Yamaha Ends Motorcycle Production in Pakistan

Surprised to read that. PAK is a decent sized market. Are they being priced out by Chinese?

Regards
Click to expand...

No, it's a structural weakness in the Pakistani market.

An excerpt from another article, dated September 5th, 2025, while this news was being speculated before Yamaha confirmed today:

Meanwhile, prices have skyrocketed: the YBR was launched at Rs. 126,000 in 2016 but now costs Rs. 493,500 in 2025, with no changes in engine, design, or features.

www.pakwheels.com

Fact Check: Is Yamaha Exiting Pakistan? Here’s What We Know So Far - PakWheels Blog

Rumors have been circulating in the Pakistani motorcycle market that Yamaha may be shutting down its operations in the country.
www.pakwheels.com www.pakwheels.com

Going forward, we will have to see how the other shareholders will hold, as people tighten their purses and cut spending to necessities. [I will not say, the remaining will leave, as they are market leaders and capital assets show little debt.
 
@Watandar

Seems like bikes aren't Chinese thingy. They seem to be more cars guys. Indian bikes have held up well in South East Asia and Africa against Chinese competition.

Regards
 
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