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20.0 million units, while the total domestic market has only reached around 15 million units. This global surge in market has also been felt in Pakistan where the industry in the financial year ended June 2010 manufactured more than 245,000 units (Auto Mark).

1.3.1 Motorcycle Industry in Pakistan

Motorcycle manufacturing in Pakistan, was initiated by a man from Lahore Mr. Hamid Omer, who designed and made his Wooden Bike with 4-Stroke electric generator engine in 1960, definitely it was not a commercial project (Picture 1.2).

Picture 1.2: First bike produced in Pakistan

The first commercial motorcycle production in Pakistan was started by Atlas Honda Group, in 1964. Progress in motorcycle manufacturing / assembling are follows;

Year

Activity

1960

:

1960-Mr. Hamid Omer from Lahore designed and made his Wooden Bike with 4-Stroke Electric Generator Engine.

1964

:

Atlas Honda Group starts producing Motorcycles.

1967

:

Dewan Yamaha Limited introduced its bikes.

1982

:

Pak-Suzuki Motors marketed its two-wheelers.

Early 1990s

:

Pakistan Cycle Industrial Cooperative Society Limited (Sohrab) launches its cycles with motors.

Today

:

There are more than 70+ Motorcycle Brands on Pakistani roads.

Atlas Honda the most seasoned motorcycle manufacturer in Pakistan installed its first plant in 1963 at Karachi, today there are 17 MMUs in the city about 24% of total MMUs in the country. As Karachi’s contribution to Pakistan's manufacturing sector amounts to approximately 30 percent and GDP is around 20% of the total GDP of Pakistan (ADB, 2005). A PricewaterhouseCoopers study released in 2009, which surveyed the 2008 GDP of the top cities in the world, calculated Karachi’s GDP (PPP) to be $78 billion. It confirmed Karachi’s status as Pakistan’s largest economy, well ahead of the next two biggest cities Lahore and Faisalabad, which had a reported GDP (PPP) in 2008 of $40 billion and $14 billion, respectively. Karachi's high GDP is based on its mega-industrial base, with a high dependency on the financial sector. Karachi has several large industrial zones such as Karachi Export Processing Zone, SITE, Korangi, Northern Bypass Industrial Zone, Bin Qasim and North Karachi, located on the fringes of the main city. Its primary areas of industry are textiles, pharmaceuticals, steel, and automobiles. In February 2007, the World Bank identified Karachi as the most business-friendly city in Pakistan. Keeping all the facts about the city’s industrial culture, the number of MMUs installed here are not eye catching.

Today the biggest chunk of motorcycle manufacturers is in Lahore. Lahore is the second largest financial hub of Pakistan (GC-GDP Ranking, 29-03-2011) and has industrial areas including Kot Lakhpat and the new Sundar Industrial Estate (near Raiwand). Lahore’s economic base is broad and varied. The city is the engineering hub of the country. Major industries include the manufacture of automobiles and motorcycles, home appliances, steel, telecommunications, information technology, chemicals, pharmaceuticals, computers, engineering, and construction material. A major industrial