Yamaha has announced the end of motorcycle production in Pakistan, citing a change in business strategy.
Learn why Yamaha took this step, its impact on riders, dealers, and the auto industry, and what the future holds for Pakistan’s two-wheeler market.
Yamaha Stops Motorcycle Production in Pakistan: A Major Shift for the Auto Industry
On September 9, 2025, Yamaha Motor Pakistan Ltd. (YMPL) made a big announcement that surprised many bike lovers and dealers across the country. The company confirmed that it has ceased motorcycle production in Pakistan, marking the end of its nine-year journey of assembling two-wheelers locally. While Yamaha will no longer manufacture bikes, it has assured customers that after-sales services, warranty claims, and spare parts will still be available through its authorized dealers.
This move marks a significant change in Yamaha’s business policy and has raised questions about the future of the organized motorcycle industry in Pakistan.
A Journey That Started with Big Hopes
Back in 2012, Yamaha announced an investment of $150 million to set up a modern assembly plant at Bin Qasim Industrial Park in Karachi. The company aimed to produce 45,000 units per year and promised to reach 85% localization within ten years. At the start, localisation stood at 25%, and around 200 workers were employed for assembly and office operations.
In FY16, Yamaha began rolling out its first motorcycles in Pakistan. Sales peaked in FY19 when the company managed to assemble nearly 25,000 units and sell over 23,000 bikes, the highest in its history here. But after that, things started going downhill.
Why Yamaha Struggled in Pakistan
Several reasons led to Yamaha’s gradual decline in Pakistan.
First, its focus was mainly on higher-end bikes such as the YBR125, which started at Rs129,400 but climbed to Rs471,500 due to rising costs and rupee devaluation. This price tag made Yamaha less attractive to the average Pakistani buyer, who mostly looks for affordable bikes in the Rs100,000-150,000 range.
Competition was another big factor. Market leaders like Honda and Suzuki, along with cheaper Chinese assemblers, offered bikes that matched local needs more closely. Consumers also preferred larger, more practical motorcycles that could carry multiple passengers, something Yamaha’s models did not fully deliver.
Dealers noted that falling incomes and rising inflation pushed buyers toward cheaper options, leaving Yamaha’s higher-priced bikes out of reach for many.
The Current Situation
By FY25, Yamaha’s production and sales had dropped to record lows, just 4,300 units assembled and 5,709 sold. Even though there was a slight improvement in July 2025, the overall trend was clear. Yamaha could not keep up with its competitors.
Another issue was localisation. Vendors pointed out that Yamaha relied heavily on imported parts, which kept its costs high. This reliance on foreign components made the bikes expensive compared to locally produced models.
What This Means for Pakistan’s Motorcycle Industry
The closure of Yamaha’s plant is not just about one company leaving the market. It highlights the challenges of running an organised bike assembly business in Pakistan. Out of nearly 70 licensed assemblers, only 10–12 are active today. Many smaller companies have already shut down or are shifting their focus toward electric bikes (EVs).
Industry experts believe the future of two-wheelers in Pakistan lies in EVs. Even Honda, the strongest player in the petrol bike market, has started working on electric models. According to dealers, it may take two to three years for Pakistan to fully transition from petrol-powered to electric bikes.
Despite Yamaha’s exit, Pakistan’s motorcycle production overall has been growing. In FY25, the industry produced 1.692 million units compared to 1.234 million in FY24. This shows that demand is still strong, but buyers are leaning towards cheaper and more practical options.
Yamaha’s decision to stop production in Pakistan is a reminder of how tough the local market can be. While the company entered with big ambitions, it struggled to adapt to consumer needs and rising costs. For riders, the good news is that spare parts, warranty support, and after-sales services will continue.
As the industry moves towards electric bikes, Yamaha’s exit also raises a bigger question: Will other companies step up to fill the gap, or will we see more closures in the coming years?
One thing is certain, the motorcycle market in Pakistan is changing, and the companies that can adapt quickly to new demands will shape the future of mobility.
