Suzuki, Honda and Yamaha raise bike prices in Pakistan – Business & Finance
Reeling from the impact of a sharp drop in the value of the rupee against the US dollar, Atlas Honda, Pak Suzuki and Yamaha on Monday announced price hikes for their bikes up to 20,500 rupees.
Honda has raised the price of its CD70 model from Rs5,000 to Rs116,500. Meanwhile, it has raised the price of its top-end CB150F (Silver) price from Rs15,000 to Rs342,900.
Moreover, Yamaha’s low-end YB125Z model will now be priced for Rs273,000 after a price hike of Rs18,000. 500 Rs.
Pak Suzuki has also hiked the prices of the bikes up to Rs 16,000. The company had previously informed its dealers to suspend the reservation of motorcycles.
The GD110S will now sell for Rs229,000 after an increase of Rs10,000. The price of the GS150 has increased by Rs12,000. The new price is Rs251,000. The new price of the GS150SE is Rs 271,000 after an increase of Rs 15,000 while the company has increased the price of its top-end GR150 price by Rs 16,000. The new price is Rs 365,000.
Other motorcycle manufacturers such as United Auto Industries also announced price increases.
“Motorcycle manufacturers are resorting to higher prices for their products due to the steep depreciation of the rupee,” said Pakistan Motorcycle Assemblers Association (APMA) chairman Sabir Sheikh.
The rupee fell by Rs34.5 or 14.5% in July 2022 alone. On Monday, the local currency closed at 238.84 against the greenback after marginal appreciation.
Sheikh pointed out that “Motorcycle sales in Pakistan are witnessing a decline as continued price hikes reduce consumers’ purchasing power.”
Due to rising fuel and motorcycle prices, buyers of Chinese motorcycles have declined as this segment is price sensitive, Sheikh said. Chinese bikes are cheaper than Japanese bikes.
The veteran auto industry analyst said inflation has also forced many car owners, in the middle income group, to switch to bicycles.
“Car owners who chose to switch to bikes initially bought Japanese models, but sales of Japanese bikes are also starting to decline as their prices skyrocket,” he added.
He pointed out that while sales of these motorcycles in urban areas were down, rural areas were seeing an increase in demand.