Suzuki also expected to raise prices
Yamaha has raised the prices of all of its motorcycles by Rs6,000 and its top-of-the-chain YBR125G will now cost Rs190,000.
Yamaha YB125Z will now cost Rs163,000 and YB125Z DX will cost Rs175,500 after the change. The YBR125 will be priced at Rs181,000.
The prices will come into effect January 7. Yamaha last increased its prices in October last year.
Sabir Sheikh, a motorcycle dealer and the chairman of the All Pakistan Motorcycle Assemblers, said that other assemblers such as Suzuki would also be increasing its motorcycle prices soon.
The demand for motorcycles has been significant since the economy opened up after lockdown.
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 own-money in the open market such as the famous Akbar Road in Karachi.
Own-money is a price an investor charges a customer, who wants to buy a car immediately. It is above a car’s actual price. This is a practice in Pakistan where car assemblers sometimes take months to deliver a car. 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 said that the industry is facing a supply problem. Parts and raw material have already been disturbed since the start of coronavirus.
“First production in China was disturbed starting November 2019 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 Chinese motorcycles such as Unique and Super Power were selling at own-money.