Right after United hiked the rate of Bravo, Yamaha Pakistan has also increased the rates of its bike, see the circular in this regard below:
There is nothing mentioned in the circular as to why the company has increased its prices. However, we contacted a local dealer who told us that due to fewer sales in the past months the company was forced to increase the rates. He further asserted that the other reason the prices have been jacked up is due to slow economic activity in the country, which is harming the automobile sector.
It is important to mention here that the new prices will come into effect from 1 November 2019.
The previous prices of the bikes are as follow:
YBR125G: PKR 156,500
YBR 125: PKR 150,500
YB 125Z: PKR 133,500
Let us know what you think about these recent price hikes in the comments section below.
“due to fewer sales in the past months the company was forced to increase the rates.”
wow, shouldnt they reduce the prices so the sales could go up? you dont have to be a business student to know this, they are making it hard for themselves, reduce the prices, give more discounts and incentives, convince the buyers to buy the new motorcycle instead of buying it from second hand market, instead of relying on parts being imported try to establish your own facility so the production of parts can commence within the country, that way more jobs will be created and you never know someone might come up with some fresh ideas
secondly people prefer to buy the 70cc motorcycle due to high mileage so its obvious the sales would be a bit low compared to the 70cc category, still they should reduce the price, only then they can hope of increase in sales, otherwise keep on blaming the govt for your stupidity!
There are two prices one is fixed cost and other is per unit cost, fixed cost is that company has to pay which includes factory running cost etc no matter they produce 100 bikes or 1000 biker per month, fixed cost remain same so if sales goes up fixed price get divided by number of bikes sold and prices go down. If sales go down price go up because they have to pay the fixed price to keep the company and operations running. That is why countries with huge automobile market have so low prices because fixed price on per unit is very low due to high sales.
Its simple in Pakistan that every car manufacturer or bike manufacturers are exploiting us, and here we are always ready to be exploited. Take example of Pak suzuki motors they have been selling mehran the so called economic car around 900k and now the new 660cc. Same is with bikes 160k for 125 cc i dont understand why we people pay for such bullshit and justification by these companies is rupee depreciation. Honda have increased its prices on 70cc, 125cc and 150cc but there is not effect on 250cc, i thing dollar doesnt effect the bikes over 150cc. Its simple kay in companies ka phuddu laga howa hay or hum phudu lagwanay to tayar baythay hain.
i know about fixed price and per unit cost, all i am saying that one reason of high production cost is that they still rely on imports of parts , if they somehow establish their own local manufacturing plant instead of just assembly plant, it will greatly reduce one of the most important cost: transportation cost that they have to endure to import parts, plus it will help the economy by generating jobs, which this country desperately need