KARACHI: Yamaha’s exit from a country having the 5th largest population in the world and where motorcycle is the preferred choice of commute for more than 80 percent of the population is a sorry state of affairs.
This was stated by Adbul Waheed Khan, Director General, Pakistan Automotive Manufacturers Association (PAMA).
According to media reports, Yamaha Motorcycles Pakistan Limited, in a letter addressed to its dealers, has informed them of its decision to discontinue its operations in Pakistan, merely 10 years after its return in 2015.
“Yamaha had made significant strides in indigenization, job creation, technology transfer, and skills development. Among the two-wheeler industry, after Honda, only Yamaha was able to localize engine production in Pakistan. This is no small feat by any means,” he added.
Established with an investment of around USD 100 million, the addition of Yamaha was a milestone in the local automotive landscape. The company followed global best practices and was a principled business organisation.
“It is a shame, but it had to exit due to regressive policies of the government,” added Waheed.
Talking about the possible reasons for Yamaha’s exit, Waheed explained that the automotive industry is subject to mandatory exports. The company that cannot achieve its export targets is ineligible to import raw materials and components for manufacturing. This regressive law, enacted against ground realities, is proving to be the last nail for an already struggling auto industry in the country.
Moreover, to add insult to the injury, recently, a “Motor Vehicle Development Act 2025” was promulgated. The act intends to treat routine and petty business matters under Criminal Law that have historically been governed by Civil Law. Resultantly, respectable and prominent business leaders can be arrested and awarded prolonged sentences for petty issues. “This is catastrophic for foreign investors and not acceptable at all,” Waheed stated.
According to DG PAMA, the automotive industry in the country is already grappling with economic uncertainty, regulatory short-sightedness, rupee devaluation, heavy taxation, high cost of doing business, and shortage of foreign exchange.
“Foreign direct investment is negligible in the country, and many globally recognized organizations such as Shell, Uber, Careem, Microsoft, and Telenor have already left Pakistan in the recent past,” Waheed added, and warned that if the policymakers remain adamant on regressive and exploitative policies, many more prominent businesses will be forced out of Pakistan.
Copyright Business Recorder, 2025
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