Motorbike Industry’s Supply Chain is in Shambles Due to The Coronavirus

The coronavirus has badly impacted motorcycle businesses that need installments from consumers to stay solvent and due to the lockdown, consumers are unable to pay for them.

Sabir Shaikh, Chairman of Association of Pakistan Motorcycle Assemblers (APMA) said,

Around 70% of bikes in the country are sold on monthly installments. Remaining 30% of sales are made on cash or are institutional purchases.

He underlined that the first three months following the easing of lockdowns would be crucial for businesses as the complete supply chain for two-wheeler businesses had been affected due to no payments. He said that the two-wheeler category had the largest share in terms of volume in the auto sector.

As per the PAMA data, during the first nine months of the current fiscal year, the two and three-wheeler category had seen a fall of 12% in sales to 1.17 million units as compared to 1.335 million units during the same period of the last fiscal year.

“Dealers have not received installments for March and April from a majority of buyers,” Shaikh regretted. “If the buyers fail to pay installments for May as well, traders will land in deep trouble.”

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