Bike prices raised

July 01, 2020

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KARACHI: Assemblers of Japanese and Chinese bikes have raised the prices of two-wheelers from July 1, attributing the increase to rising cost of production due to costlier imports of parts and weak rupee.

Surprisingly, there has been an incr­ease in the price of 70cc bikes which assemblers claim have over 94pc localisation. Defending the price hike, Association of Pakistan Motorcycle Assemblers (APMA) Chairman Moham­mad Sabir Sheikh said bikes with higher localisation have seen very little price jump while two-wheelers with less than 50 per cent local parts are more vulnerable to price shocks.

“Since Covid-19 gripped the country in March, the auto industry remained shut for over two months. Since the easing of lockdown, production and sales of bikes have not shown any significant recovery,” the APMA chairman said.

Low bike sales can be gauged from import of parts from July to May 2019-20 which fell to $59 million from $82m, down by 28pc.

Atlas Honda Limited (AHL) has increased bike prices by Rs1,400-20,000. The new price of Honda CD70, CD70 Dream, Pridor, CG125 and CG125S Special Edition will be Rs76,900, Rs82,500, Rs107,500, Rs128,900 and Rs154,900, respectively.

CB125F, CB125F Special Edition and CB150F will cost Rs185,500, Rs187,500 and Rs 245,500.

United Auto Industries has raised prices of various bike models between 70cc-125cc by Rs500 from July 1.

The new prices of Yamaha YB125Z, YBR125G and YBR125 are Rs151,000, Rs178,000 and Rs169,000 — an increase of Rs5,000-6,000.

N.J. Auto Industries has increased prices of Super Power bikes, which range from 70cc-250cc, by Rs1,000-2,000.

Commodities

Patron Karachi Wholesalers Grocers Association Anis Majeed claimed that goods transporters have not passed the relief of diesel price drop by Rs47 per litre from February till June 26.

“So far transporters have not increased rates after a fresh jump in diesel price,” he said.

On June 26, diesel price was increased by Rs21 to Rs100.14 per litre.

When asked about the impact of increase in diesel price and the ongoing rupee depreciation, he said, “The markets have not witnessed any instant jump in rates of imported pulses and locally produced sugar, rice etc owing to slow demand.

“One dollar was trading at Rs168 on Monday which was Rs161 in the third week of March. The rupee-dollar parity impact would be more visible when demand for commodities goes up,” Majeed added.

Published in Dawn, July 1st, 2020