United bikes to also become more expensive
Pak Suzuki has also increased the prices of three of its motorcycles by up to Rs4,000 after Atlas Honda announced an increase. United Auto Industries has also increased its motorcycle prices by up to Rs2,000.
Suzuki GR150 is now priced at Rs290,000. Meanwhile, GS150 and GS150SE price has been jacked up by Rs4,000 each. The new price for GS150 is 197,000, and GS150SE 214,000.
Earlier, Atlas Honda has also notified its dealers about the price increase. Honda CD70, the most selling motorcycle in Pakistan, will now cost Rs81,900 after an increase of Rs2,400. Both Honda and Suzuki prices have been effective from February 1.
Meanwhile, United motorcycle 125cc got pricier by Rs2,000 and 100cc and 70cc got pricier by Rs1,000.
Yamaha and Chinese bike manufacturers Super Power, Hi Speed and Unique have also increased their bike prices from Rs500 to Rs10,000.
There has been a significant demand for motorcycles in the country since the lifting of the coronavirus lockdown in late 2020.
A few reports suggested that the motorbike section of the auto sector faced problems with the delivery for the first time in at least 20 years because of the gap in their demand and supply.
Dealerships were unable to deliver motorcycles on time and they were being sold for own-money in the market.
Own-money is the price an investor charges a customer, who wants to buy a car or bike immediately. It is above a vehicle’s actual price. It happens because manufacturers in Pakistan sometimes take months to deliver a vehicle. For instance, a customer has to make a partial payment to book a car, which will be delivered after two months upon full payment.
Sabir Shaikh, a motorcycle dealer, said at the time the industry was facing a supply issue. The supply of parts and raw material had already been disturbed since the coronavirus hit the world.
“At first, the production in China was disturbed starting November 2019 and then our industry closed down from March 2020 to May 2020,” Shaikh said. “Then there was an unprecedented and unanticipated surge in motorcycle sales from June onwards. The second wave also affected things again.”
China is the main supplier of raw materials and parts for motorcycles in Pakistan. “Even those who had three months of inventory are now sitting empty-handed,” Shaikh said.
Even Chinese motorcycles such as Unique and Super Power were being sold at own-money, he added.