By Moonis Ahmed
KARACHI: In the wake of losing strength of the rupee against dollar and rising rates of steel, the Japanese and Chinese motorbike producers have increased prices.
Frequent increase in the bikes’ prices during the last two months along with recent decision of price hike by the assemblers on different models has affected the sales of motorbikes, which have declined by around 20 percent in the past month, dealers at Akber Road told Daily Times.
They said that due to ever sky rocketing petroleum prices and increase in bikes’ prices, the demand for motorbikes has plummeted all over the country.
The three leading motorcycles including Atlas Honda Limited, DYL Motorcycles and Pak Suzuki Motorcycle Limited have raised prices on their models by Rs 1,000 to Rs 4,000 per unit.
The Atlas Honda motorcycle makers have increased the rate of CD-70 to Rs 56,400. In April, its price was Rs 50,500 and in March Rs 49,900.
Similarly, the CD-100 by Atlas Honda is now priced at Rs 61,400 from Rs 57,000 in May.
The popular model by the Honda CG-125 is tagged at Rs 76,400, however it was available at Rs 71,000 two months ago.
The Pak Suzuki Motor Company Limited has increased its prices by Rs 1,000 to 4,000 as well. The Suzuki-110 CC is available at Rs 53,800 from Rs 49,800. The price of Suzuki-125 is tagged at Rs 66,800 while it was available at Rs 64,800 previously. Suzuki-150 is available at Rs 72,800, as compared to Rs 68,800.
Similarly, DYL Motorcycles Limited has also jacked up the rates. The YD-100 is now priced at Rs 63,300, its previous price was Rs 61,300 and the price of 100-CC Junoon is Rs 65,250 as compared to the former price at Rs 63,300.
Similarly, Chinese bike makers have also spiked their price by Rs1,500 owing to rising cost of material and parts. They had increased the rates by same amount last month.
Chairman, Association of Pakistan Motorcycle Assemblers, Mohammad Sabir Shaikh, said that the average wholesale price of a Chinese bike was now Rs 37,000 as compared to Rs 35,000 last month.
China has also increased raw material prices due to which Chinese assemblers have raised the prices as well.
About 350 to 400 bikes per day were being sold four months ago, but now the condition has worsen and hardly 100 bikes are being sold all over Karachi. In December 2007, one dollar was equal to Rs 61 as compared to Rs 71 in May. If the rupee fails to gain its value against the dollar the bike makers will face problems and they will have to further increase the rates.
He added that Chinese bike makers had enhanced the rate twice since April, while the Japanese made three times increase in prices.
The bike-maker had assured that within five years capability would be developed for local manufacturing through vendors.