Amount can exceed up to Rs15,000
If you are planning to buy a Honda 125 bike then either be prepared to pay around Rs15,000 above the company price of Rs130,000 or wait for a month.
The motorcycle faction of the automobile sector is facing delivery issues for the first time in at least 20 years because of mainly supply issues coupled with high demand.
An attendant at Faisal Automobiles, a Honda dealer, confirmed that if a bike has to be bought at company price then the delivery period is one month.
“But if you want to buy immediately, then you have to pay Rs150,000 for (Honda) 125 from unknown (unregistered) dealers at Akbar Road,” the dealer said.
A Pak Suzuki registered dealer said the delivery time of Suzuki bikes is also one month. He declined to share the ‘own money’ rate on Suzuki bikes but hinted that it has been happening in the market.
Own money is a price an investor charges from a buyer, who wants to buy a car immediately. It is above a car’s actual price. It normally happens in Pakistan’s car segment, where car assemblers sometimes take months to deliver a car. For instance, a buyer has to make a partial payment to book a car, which will be delivered after two months on full payment.
Association of Pakistan Motorcycle Assemblers (APMA) Chairperson Muhammad Sabir Shaikh said that the industry is facing supply issues. Parts and raw material have already been disturbed since the start of the coronavirus late last year.
“First production in China was disturbed starting November last year and then our industry closed down during March, April and May,” Shaikh said. “Then there was an unprecedented and unanticipated surge in motorcycle sales from June onwards.”
China is the main supplier of raw material and parts for motorcycles in Pakistan.
“Even those who had three months of inventory are now sitting empty handed,” he said.
He added that even popular Chinese bikes like Unique and Super Power were now selling at an own money premium of Rs2,000 and Rs3,000.
An auto parts vendor, Umer Butt, said that the industry is also facing a shortage of steel sheets and pipes.
“There’s shortage of motorcycle parts like stand, foot-race, mud guards etc,” Butt said.
An auto part seller, Mohammad Waseem, confirmed that that there has been a shortage of motorcycle parts, including chain-sprockets.