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Suzuki, Yamaha increase motorcycle prices fifth time in 2021

Honda unlikely to increase motorcycle prices

SAMAA | - Posted: Dec 1, 2021 | Last Updated: 2 months ago
SAMAA |
Posted: Dec 1, 2021 | Last Updated: 2 months ago

Pak Suzuki and Yamaha have increased the prices of their motorcycles by up to Rs8,000. This is the fifth increase by both motorcycle companies in the calendar year 2021. However, the market leader Honda has announced seven prices increases this year.

Honda last increased motorcycle prices by up to Rs6,500 in November. It is not likely to increase prices this month again.

All the motorcycle companies have seen an uptick in demand due to increasing petrol costs in the country.

Yamaha 

Yamaha YB125Z has seen a price hike of Rs6,000 and will cost Rs190,000 against the old price of Rs184,000.

The prices of Yamaha YB125Z DX and YBR125 have gone up by Rs.7000. These variants will now be selling for Rs205,500 and Rs211,000, respectively.  

Yamaha last increased its prices on October 1.

Pak Suzuki

Suzuki GD110S, GS150CC and GS150SE have seen a price jump of Rs5,000. These three variants are now available at Rs199,000, Rs215,000 and Rs232,000.

Suzuki GR150CC will now be selling for Rs315,000 after an increase of Rs8,000.

The new rates of Suzuki and Yamaha are effective from December 1.

Why did companies increase motorcycles prices?

A Suzuki dealer said that shipment cost per container had increased by $6,000 to $8,000, putting pressure on the price of imported parts.

“During Covid, the car companies made a large number of orders out of the fear of lockdown and containers were blocked in different countries when the lockdown was imposed in those countries, causing a container shortage in China, Malaysia and other exporting countries,” he added.

Association of Pakistan Motorcycle Assemblers (APMA) Chairperson Muhammad Sabir Shaikh said that the companies import 50% of the parts from China, Japan, Korea and Thailand and assemble units in Pakistan and the costs of other raw materials such as steel, aluminum, plastic and paint chemical have increased in the international market. Apart from that, the dollar has reached Rs177,” he added.

A Suzuki dealer said that the engine and headlights of Suzuki GR150CC are imported from China and Malaysia.

Sheikh said that since Honda already jacked up motorcycle prices in November, the company is unlikely to increase prices this time.

How will the price hike impact sales? 

 A Suzuki dealer expected that the hike in prices may impact customers’ buying power. As a result, motorcycles sales would go down. 

People prefer to buy motorcycles on installments due to the insufficiency of funds, causing cash sales to go down by 10% to 15%,” a dealer said.

Sabir Shaikh expected that the sales of the companies will not decline as Suzuki, Honda and Yamaha are big players in the market. However, small companies may experience low sales if they hike the prices,” he added.

Shaikh said that customers get the delivery of motorcycles upon full payment but companies may take a month to deliver the motorcycle if the shipment arrives late. The industry is facing a supply problem, adding that the delivery of parts and raw material of Suzuki GS150SE has already been disturbed, due to which the shipment will arrive on December 6.

Own-money on motorcycles

Motorcycle sales have also experienced a new phenomenon: the own-money, which was associated only with car sales in the past.

A motorcycle dealer said that the own-money on Suzuki GS150SE was Rs2,000 a few days ago since some of the dealers were taking advantage of a raw material shortage.

However, Sabir Shaikh claims that no own-money is being charged on motorcycles because the demand for the motorcycles drops in winter.

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.

Pak Suzuki and Yamaha sell 25,000 units each. Whereas, Honda has the biggest market share and sells more than 1 million units annually.

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