Few companies raise prices and more expected to follow
United Automobiles and Road Prince will be jacking up prices of their bikes by Rs5,000 and Rs3,000 respectively from October 1. Market sources say other companies including Honda, Suzuki and Yamaha were also pondering a price raise.
“Companies are not giving more units (motorcycles) to dealers,” said Association of Pakistan Motorcycle Assemblers (APMA) Chairperson Muhammad Sabir Shaikh. “It happens when the companies plan to increase prices.”
SAMAA Digital contacted several dealers to ascertain the availability of motorcycles. Motorcycles were not readily available and a few dealers hinted that motorcycle prices may go up next month.
Shaikh said that the cost of input such as steel has gone up and the dollar rate has been hovering around Rs169 and showing no signs of coming down. Moreover, freight cost has also gone up.
“All these factors have been keeping companies on tenterhooks. They may soon jack up prices to pass the higher cost of production to buyers,” he said.
Pakistan’s auto sector, including both car and motorcycle segments, depends on imported parts. Imported items are highly sensitive to the dollar rate.
Shaikh claimed motorcycle companies did their costing when the dollar rate was around Rs155.
Last year, there was a surge in demand for motorcycles after markets open following lockdown due to the coronavirus pandemic. The companies couldn’t match the high demand and therefore there were fewer motorcycles available and more buyers. This introduced the menace of own-money in the two-wheel segment as well.
But at the moment, Shaikh claimed, the motorcycle segment was not facing the own money issue since the bike prices were already too high.
According to Minister for Industries and Production Khusro Batkhtiar, Pakistan manufactured a record 2.6 million motorcycles in the financial year 2020-21. For the current year, the government has set a production target of 3 million motorcycles units to increase job creation.