KARACHI: Japanese and Chinese bicycle assemblers have shocked their buyers with surprise price hikes on the eve of Eidul Azha.
Without giving any reason in their price revision letters to their authorized dealers, Japanese assemblers have increased prices from Rs 2,400 to Rs 8,000 for various models.
While Chinese bicycle manufacturers have raised their tariffs from Rs 500 to Rs 2,000, attributing it to higher prices for raw materials (steel, plastic and resin) in world markets, coupled with higher prices for manufactured parts locally.
Market leader Atlas Honda Ltd (AHL) has shocked buyers by raising prices from Rs 2,400 to Rs 5,000 on various models starting on Wednesday, when the nation will celebrate Eidul Azha.
The price of the Honda CD-70cc has been increased from Rs 2,400 to Rs 84,500 while the CD-70 Dream, Pridor, CG-125 and CG125S will carry new price tags of Rs 90,500, Rs 117,500, Rs 139,500 Rs and Rs 167,500, up by Rs 3,000 respectively.
The two-wheelers will cost Rs500-Rs8,000 more
With the addition of Rs 5,000 each, the CB-125F models will now cost Rs 200,500 and the CB-150F and two other variants at Rs 255,500 and Rs 259,500, respectively.
Yamaha Motor Pakistan Ltd has increased its prices from Rs 7,000 to Rs 8,000 as of July 26. The new price for the Yamaha YB125Z, YB125Z DX and YBR 125 will be set at 176,000 Rs, 190,000 Rs and 196,000 Rs.
Unique bicycle assembler had already raised the price by 2,000 rupees from July 10, while a number of Chinese bicycle assemblers raised the price before and after the budget announcement for the fiscal year in Classes.
For example, Crown Motor Company, United Auto Industries, and Road Prince Motorcycle and Rickshaws have increased prices by Rs1,000 from July 10 for 70cc-125cc bikes.
United Auto Industries had raised the price of the 100cc scooter on June 25 by 10,000 rupees. The company had increased the price from Rs 500 to Rs 1,000 for the 70cc-125cc bikes from April 10.
Haji Motors had increased the price of Express motorcycles by Rs800 from July 5 in two models. DS Motors, Unique bicycle maker, has increased the price of 70cc to 100cc bikes from Rs2,000 from July 1.
Bicycle assemblers have taken the lead of car assemblers by raising prices more frequently over the past year and a half.
Consumers had not seen any drop in the price of cars and two-wheelers when a dollar was available at Rs 168.40 in August 2020 compared to Rs 152-153 in May 2021, reducing the cost of parts and accessories. imported.
Today, the rupee has lost its strength and one dollar is now traded at 161.48 rupees on the interbank market, leading to a further rise in prices for two-wheelers, said Mohammad Sabir Sheikh, a senior trader in bicycles in Akbar Road, adding that rising prices for raw materials like steel and plastics in world markets would continue to put additional pressure on production costs.
He said regardless of the price hike, demand for bicycles would remain strong given the deteriorating public transport system and rising gasoline prices.
Mr Sabir said the growing demand for bikes can be gauged from the impressive sales figures, as Honda sold 48% more bikes to 1.292 million units in FY21, up from 873,902 units. in FY20, while Suzuki sales increased 44% to 24,851 units from 17,301 units in FY20.
Yamaha sales rebounded 3% to 19,924 units from 19,371 units in FY20.
United Auto Motorcycle sales increased 25% to 368,643 units from 295,495 units, followed by a 30% increase in Road Prince bicycle sales to 141,230 units from 108,990.
Based on sustained sales, the import bill for fully and semi-disassembled (CKD / SKD) kits in FY21 increased 19% to $ 75 million from $ 63 million in 20.
Posted in Dawn, July 21, 2021