Industry facing bottlenecks because of the coronavirus pandemic
Pak Suzuki has increased prices by Rs5,000 for all of its motorcycles, while Yamaha has increased the price of its bike YBR 125G by Rs8,000. Yamaha has already increased the prices of all its other motorcycles.
Almost all motorcycle companies have increased motorcycle prices including Atlas Honda citing an increase in raw material prices and higher shipping costs amid the pandemic. Atlas Honda has also increased motorcycle prices by up to Rs5,000.
A source said that the rising material cost in the international market has pushed motorcycle prices up.
Sabir Sheikh, a motorcycle dealer and chairperson of the All Pakistan Motorcycle Assemblers, said the demand for motorcycles has been significant since the economy opened up after lockdown last year.
There were reports that the motorcycle faction of the automobile sector faced problems with delivery for the first time in at least 20 years because supply could not keep up with high demand.
Dealers were unable to deliver on time and motorcycles have been selling at their own money in the open market, such as the famous Akbar Road in Karachi.
Own money is a price an investor charges from a customer who wants to buy a vehicle immediately. It is higher than the actual price of the vehicle.
Sheikh said that the industry is facing a supply problem, adding that delivery of parts and raw material has already been disturbed since the start of coronavirus.
“Shipping cost of raw materials has gone up significantly. Shipping cost used to be $800 for importing a certain quantity of raw materials but now it costs $4,000,” he said.
He added that raw material was also getting expensive as the labour force has been reduced in order to follow Covid-19 SOPs and demand is higher than supply. “The whole supply chain has been disturbed. Every player is struggling.”