Motorbike Industry Reels as Yamaha Halts Local Production
Yamaha Motor Pakistan’s announcement to shut down motorcycle production has raised fresh concerns about the health of Pakistan’s struggling automobile sector.
In a statement, the company confirmed it would stop manufacturing but pledged to continue offering warranty services, after-sales support, and spare parts through its authorised dealer network. Customers, it said, would not be left without support.
The exit reflects deeper problems in the country’s auto market. Local manufacturers dominate low-cost motorbike sales, leaving little room for premium players like Yamaha. At the same time, soaring inflation, rupee depreciation, and increased costs of imported parts have reduced affordability for customers.
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Auto sector expert Muhammad Sabir Shaikh told Business Recorder that shifting global demand towards electric vehicles (EVs) is also putting traditional fuel-powered bikes under pressure. “The market dynamics are changing, and manufacturers must adapt,” he said.
Yamaha entered Pakistan with hopes of tapping into the country’s large youth population and rapidly urbanizing cities. But with incomes squeezed and demand contracting, the brand failed to secure the scale needed to compete with cheaper rivals.
The shutdown could also discourage other international firms eyeing Pakistan’s two-wheeler market, which remains one of the largest in Asia.
