KARACHI: Fully cashing in on a strong demand, Japanese and Chinese bike assemblers have again raised prices by between Rs1,500 and Rs3,400, citing costly raw materials on the world markets in the ongoing month.
With over 94 per cent localisation in the 70cc segment and a substantial rupee recovery against the dollar since August 2020, buyers have yet to see any price impact. Atlas Honda Ltd (AHL) made a second price hike in the current month. The current price hike ranges between Rs2,400-3,400 of different models effective from Feb 1, while the company had jacked up price by Rs1,600-2,000 on Jan 5.
According to new prices, CD70, CD-Dream and CG125 now sell at Rs81,900, Rs87,900 and Rs134,900 while Pridor will be sold at Rs113,500. The new prices of CG125S, CB125F and CB150F are 162,900, Rs195,900 and Rs250,900. As per retail rates, the government charges Rs11,900-36,456 as 17pc general sales tax on Honda’s 70cc-150cc bikes.
AHL had sold 618,040 units in 1HFY21 as compared to 515,173 units in the same period last fiscal year.
Memon Motor Private Ltd announced a price hike of Rs1,500-2,000 in Super Star bike models of 70cc to 125cc, attributing difficulties in procuring raw materials from different countries and supply issues of parts from the local vendors due to Covid-19. The new prices would be effective from Feb 1. The company has also increased price of auto rickshaw and loader by Rs3,000-Rs10,000.
A number of Chinese bike assemblers had increased prices during the first and second week of this month. For example, D.S. Motors raised prices by Rs2,500-3,000 on 70cc-100cc bikes from Jan 5. United Auto Industries pushed up prices by Rs500-1,000 on 70cc-125cc from Jan 11.
Association of Pakistan Motorcycle Assemblers chairman Mohammad Sabir Sheikh attributed rising import of new bikes to arrival of scooties and 200-250 bikes from China and Japan.
Published in Dawn, January 29th, 2021