KARACHI: Yamaha Motor Pakis­tan Ltd (YMPL) has increased the price of various models by Rs14,000.

After the price jump, the new rates of Yamaha YB125Z DX, YBR 125 (red, grey and black), YBR 125 G and YBR 125G (Matt) are Rs454,000, Rs466,000, Rs485,000 and Rs488,000.

The price of Yamaha YB125Z had been kept unchanged.

United Auto Industry has also jacked up the price by Rs5,000 in 70-100cc in different alloy rim bikes effective from Jan 8.

Consumers faced a tough 2023 after multiple price shocks given by the assemblers which had kept buyers away from the market.

For example, Atlas Honda Ltd (AHL) raised prices of various models by 30-39pc in 2023. For example, CDI 70 now costs Rs157,900 as compared to Rs121,500 while CG125 sells at Rs234,900 versus Rs185,900.

Pak Suzuki Motor Company Ltd (PSMCL) jacked up prices by 39-44pc last year. For instance, GD110 and GS150 are now available at Rs352,000 and Rs382,000 versus Rs244,000 and Rs266,000.

YMPL also pushed up the prices by 30-35pc. For example, YB125Z DX and YBR125 carry price tags of Rs454,000 and Rs466,000 as compared to Rs327,000 and Rs336,000.

In 2023, the rupee depreciated by 25pc against the dollar, making imports of raw materials and finished goods costlier. However, consumers witnessed price jumps in Japanese assembled bikes by 30-44pc.

Mohammad Sabir Shaikh, a bike sector expert, said the Chinese-assembled bikes had also become expensive by an average 30pc in 2023 but they had suffered a big hit in their volumes due to restrictions on opening letters of credit and high raw material costs on account of rupee devaluation, while Japanese bike assemblers had managed to survive.

Many from low-income groups failed to buy even Chinese-assembled bikes due to rising cost of living.

He said before Covid-19, the two-wheeler market volume was 2.6 million units a year in which the share of Chinese bikes was 1.6m units and one million units were rolled out by the three Japanese players.

Now the share of Chinese bike assemblers has nosedived to 300,000 units forcing many assemblers to discontinue production due to intense competition, while many of them are struggling for their survival.

He said the landscape of the two-wheeler market would change by the end of 2024 due to the start of local assembly of electric bikes, while the government had already given 34 manufacturing licences for EV bike assembly in the country while 11 more applications are in the process.

Published in Dawn, January 7th, 2024