Vehicles in Pakistan: Over Half of All Households Own Motorcycles in 2019

Private vehicle ownership in Pakistan has risen sharply over the last 4 years. More than 9% of households now own cars, up from 6% in 2015. Motorcycle ownership has jumped from 41% of households in 2015 to 53% now, according to data released by Federal Bureau of Statistics (FBS) recently. There are 32.2 million households in Pakistan, according to 2017 Census.

Vehicle Ownership in Pakistan. Source: PBS

Total number of vehicles registered in Pakistan increased 9.6% to 23,588,268 in 2018, up from 21,506,641 vehicles in 2017. Of all the vehicle categories, motorcycles saw the biggest increase of 11.5% reaching 17,465,880. Cars, jeeps and station wagons rose 5.3% reaching 3,043,593. Trucks surged to 277,416 and buses to 236,461, according to Pakistan Today.

Pakistan is now the 5th largest motorcycle market in the world after China, India, Indonesia and Vietnam. With 7,500 new motorcycles being sold everyday, Pakistan is also the among the world's fastest growing two-wheeler markets. Passenger car and motorcycle sales in Pakistan have both been soaring at rates of over 20% a year until recently.


Motorcycle ownership data is yet another confirmation of the fact that the majority of the households in Pakistan now belong to the middle class, a first in Pakistan's history. This was first reported in 2015 research done by Dr. Jawaid Abdul Ghani of Karachi School of Business and Leadership (KSBL).

It's an important tipping point that puts Pakistan among the top 5 countries with fastest growing middle class population in Asia-Pacific region, according to an Asian Development Bank report titled Asia's Emerging Middle Class: Past, Present, And Future. The ADB report put Pakistan's middle class growth from 1990 to 2008 at 36.5%, much faster than India's 12.5% growth in the same period.


Related Links:

Haq's Musings

South Asia Investor Review

The State of Pakistan's Social Sector

Credit Suisse Wealth Report 2016

Pakistan's Trillion Dollar Economy Among World's Fastest Growing

Pakistan: A Majority Middle Class Country

Karachi School of Business and Leadership

State Bank: Pakistan's Actual GDP Higher Than Officially Reported

College Enrollment in Pakistan

Musharraf Accelerated Development of Pakistan's Human and Financial Capital

China-Pakistan Economic Corridor

Comments

Riaz Haq said…
#Pakistan’s #economic #crises over: Central Bank Chief Reza Baqir "Uncertainty and instability was a serious challenge to the country, which is now over as the economic team tackled the situation very effectively. Pakistan's future is bright." #SBP #IMF https://www.thenews.com.pk/latest/486036-pakistans-economic-crises-over-future-is-bright-sbp-governor-dr-reza-baqir

KARACHI: Governor, State Bank of Pakistan (SBP), Dr. Reza Baqir on Monday assured that the country has come out of the economic crises as it has achieved economic stability including financial one, which has created investors' confidence that is very positive signal.

"Uncertainty and instability was a serious challenge to the country, which is now over as the economic team tackled the situation very effectively. Pakistan's future is bright," he said while speaking at his first interaction with media here at the SBP Building.

He also answered questions by journalists in Islamabad through a video link.

Dr Reza said the present government had assigned two major tasks to its economic team that is, bringing economic stability and ensuring inclusive economic growth in the country; where there is improvement in the life of the common man.

“The two main reasons for the economic instability were: external deficit and fiscal deficit. Now, these were being addressed effectively and in credible manner.”

The external/trade deficit situation was improving.

He said it was very positive development that the government had pledged not to borrow from State Bank of Pakistan.

Instead, he added, it would borrow from the money market. This would save State Bank of Pakistan from printing new notes which pushed inflation.

About the exchange rate, SBP Governor said a fixed rate or free float currency policy were not in favour of the country.

Rather, SBP had adopted the market-based policy for it.

Regarding the key interest rate, Dr. Reza said SBP's Monetary Policy Committee did take into account the projected inflation before fixing it.

"We shall be fighting inflation to our best," he reassured, adding the interest rate was the best tool to control inflation.

He said the state bank had to work for three objectives including financial stability, maintaining exchange rate and for sustained economic growth.

The SBP Governor defended the agreement being signed with IMF maintaining that it had sent positive signals to the entire world about financial stability in Pakistan that had also built confidence among the local and foreign investors.

After that, Pakistan Stock Exchange also strengthened.

"Going for IMF loan, everything was being done in the interest of the country," he said and that all IMF conditions were dully fulfilled.

He informed the media that on July 3, 2019 IMF Board of Directors' meeting would be held and all details would be dully published which would make the things clear about the deal with the world credit body.
Riaz Haq said…
#Pakistan Home #Appliance Maker Dawlance Manufactures Its 10 Millionth Unit. Company makes #Refrigerators, #Freezers, #AirConditioners, #Microwave Ovens, Built-in #Ovens, #WashingMachines, Water Dispensers, #Dishwashers, and small #kitchen appliances. https://www.oyeyeah.com/news/dawlance-manufactures-its-10-millionth-unit/

The market-leader in Pakistan’s Consumer-Electronics and Home Appliances market – Dawlance has now achieved another huge milestone, by manufacturing its Ten Millionth unit. Completing its 40 years of excellence, this enterprise is a fully owned subsidiary of Arçelik A.S. – The largest Turkish enterprise and the third-largest manufacturer in Europe.

The Chief Executive Officer of Dawlance – Mr. Umar Ahsan Khan stated that: “Dawlance is the biggest Turkish investment in the economy of Pakistan. Producing its 10 millionth Unit is the strongest evidence of the brand’s reliability. It is an unforgettable moment for us as we enter this new era of consumers’ confidence. The company is thankful to its over 4000 employees, our consumers, stakeholders, distributers, and dealers all over Pakistan, along with everyone else who contributed to the success and growth of the company.”

The Head of Production at Dawlance – Mr. Ameen Ahmed expressed his delight and said; ”We have come a long way since the company’s humble beginning, back in 1980, when a small assembly plant was established in Hyderabad. Today, the company has grown tremendously, operating 3 large-scale manufacturing units in Pakistan. The 10 millionth product is a testament to our passion and commitment, to strengthen Pakistan’s industrial-base and economy.”

Through this resourceful collaboration, the most reliable brand has been established, to offer the highest quality electronics and services to Pakistani consumers. Our most innovative technologies also promise the conservation of energy. Being a socially responsible organization, it generously contributes towards credible initiatives for community-development and other healthy socio-cultural activities, to create more economic opportunities and empower its consumers.

It caters to consumers’ 3 different functions; Food Care, Fabric Care and Home Care with a wide range of appliances including; Refrigerators, Freezers, Air-Conditioners, Microwave Ovens, Built-in Ovens, Hoods and Hobs, Washing Machines, Water Dispensers, Dishwashers, and small kitchen appliances. Consumers can enjoy the ‘Grand Warranty’ on all Dawlance products sold all over Pakistan, without paying additional costs or any registration process.

All Dawlance Refrigerators and Freezers come with a 12 Years Compressor Warranty (including Inverter and non-inverter technology). All its new models of Washing Machines are covered by a 10 Years Motor Warranty.

With the continued focus on customer care and after-sales service, it always exceeds the customers’ expectations. With creating newer technologies, every employee is inspired to ensure compliance with global standards and best-practices at every level.

A nation-wide ‘After Sales network’ provides 24/7 Customer-Care, while Technical-Collaborations with Arçelik’s global plants in Turkey, Russia, Romania, Thailand, and South Africa are also nurturing expertise at Dawlance.
Riaz Haq said…
#Pakistan's #Atlas Group and DID Group #Japan sign Joint Venture (JV) for #motorcycle chain production in Pakistan https://www.thenews.com.pk/latest/486914-atlas-and-did-group-sign-jv-for-motorcycle-chain-production-in-pakistan

A joint-venture company in Pakistan for the integrated-production of motorcycle chains is now on the cards as two of Japan’s acclaimed corporations Atlas Group and DID Group Japan have now been amalgamated as one.

The association between the two groups has now strengthened through the joint-venture which aims to provide consistent quality, cost and delivery services to motorcycle manufactures and the after-market suppliers in Pakistan by starting an integrated production of motorcycle chains in Pakistan.

The two had earlier in November of 2017 initiated the assembling of motorcycle chains in Pakistan through a technical collaboration.

Both Atlas Group and DID are renowned names in the manufacturing and marketing of auto products. Atlas Group is best known for manufacturing and marketing of motorcycles and cars in collaboration with Honda Motor Company, Japan. It also manufactures various hi-tech components in-house in technical collaboration with leading Japanese components manufacturers including DID.

DID is a leading supplier of advanced automotive technology, systems and components for the world’s major auto-manufacturers and has operations in numerous countries around the world.

The venture marks a significant milestone in the collaboration between two Companies as it strengthens an already excellent co-operation between the two partners.
Riaz Haq said…
#Car dealerships in #Delhi look deserted #India’s #automobile sector is witnessing its worst-ever slowdown. In May 2019, passenger #vehicle sales in the country fell 20.55% year-on-year. #economy #Modi #Manufacturing https://qz.com/india/1644063/ via @qzindia

Nitin Kumar, a young automobile salesman in South Delhi’s Lajpat Nagar, isn’t having the best of days at work.

Customer footfall at his showroom, which sells Indian carmaker Mahindra & Mahindra’s (M&M) vehicles, has fallen in the recent times.

“The situation has worsened in the past six months,” Kumar said. “Earlier, 60-70% of customers who made enquiries through phone calls and other channels, used to visit the showroom. This has now gone down to 10-20%.”

Falling footfalls and poor sales at Kumar’s showroom is not a one-off instance.

India’s automobile sector is witnessing its worst-ever slowdown. In May, passenger vehicle sales in the country fell 20.55% year-on-year to 239,347 units. It was the steepest drop in nearly 18 years, according to data released by industry body Society of Indian Automobile Manufacturers (SIAM).

Several major automakers are being forced to cut production as inventory piles up.

Mahindra Vehicle Manufacturers, an arm of M&M, informed the stock exchanges (pdf) on June 8 that it would be observing “no production days ranging between 5–13 days” in the April-June quarter as part of “aligning its production with sales requirements.”

Market leader Maruti Suzuki will also shut its plants between June 23 and June 30 to curb the rise in unsold vehicles.

What caused the downturn?
A host of factors has brought India’s automobile industry, the world’s fourth largest by sales, to this sorry state.

First, the Indian economy is going through a slump. The country’s gross domestic product (GDP) (growth) fell from 7.2% in financial year 2018 to 6.8% in financial year 2019, data from Central Statistics Office showed. This has resulted in cautious consumer spending.

Second, automakers are struggling to comply with the government’s new policies, including a total ban on polluting petrol and diesel vehicles, forcing them to discontinue some old models. The government think tank Niti Aayog has recommended that only electric vehicles be sold in the country after 2030.

Besides, the Bharat VI emission standards are set to kick in from April 2020, forcing brands like Maruti Suzuki to remove diesel cars from their portfolio from next year.

“Customers know buying diesel cars will no longer be fruitful, and we cannot convince them otherwise. Petrol variants can still find buyers, but diesel ones continue to wait,” said a Maruti salesperson from East Delhi’s Preet Vihar showroom, who did not wish to be named.
Riaz Haq said…
#Remittances to #Pakistan up 8.45% to $17.875 billon in first 10 months. #SaudiArabia ($4.175 billion), #UAE ($3.787 billion), #USA ($2.786 billion), #UK ($2.756 billion), other #GCC ($1.718 billion), Malaysia ($1.263 billion ), #EU ($485.89 million) https://www.thenews.com.pk/print/482963-remittances-up-by-8-45pc-to-17-875b

The Economic Survey 2018-19 presented here on Monday by Adviser to PM on Finance, Revenue and Economic Affairs Dr Hafeez Shaikh unfolds that the remittances have increased by 8.45 percent in first 10 months of the ongoing fiscal to $17.875 billion against $16.482 billion during the same period last year.


It further reveals that the major share of remittances are from Saudi Arabia which is 23.36 percent ($4.175 billion), UAE 21.19 percent ($3.787 billion), USA 15.6 percent ($2.786 billion), UK 15.41 ($2.756 billion), other GCC countries 9.61 percent ($1.718 billion), Malaysia 7.06 percent ($1.263 billion ), EU 2.72 percent ($485.89 million) and other countries 5.07 percent.

The remittances during July-April financial year 2019 have declined by 9.28 percent from EU countries, 5.40 percent from other GCC countries. However, a marginal increase in remittances has been observed from Saudi Arabia, 2.08 percent as compared to 9.5 percent decline in the same periods last year. However, visa fee reduction from the Kingdom is likely to boost up the inflows in coming years. A strong increase from USA and UK provided a major push to inflows.

Remittances increased by 21.82 percent form USA and 16.59 percent from UK. Economic turnaround, declining unemployment and rising wages in the US and the UK in the recent past have supported inflows from these countries. Besides the US and the UK, inflows from Malaysia also supported overall remittances, with inflows amounting to $1.262 billion in July-April FY2019.

Over the last couple of years, Malaysia has been facing workforce shortage in labour-intensive sectors, such as manufacturing, construction and agriculture. To address the problem, Malaysia raised the wages for both local and foreign workers in its minimum wage policy of 2013. Following this, the number of Pakistanis going to Malaysia for work has been rising since 2014-15, leading to increase in remittances from the country.

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