AHL
Business

Two-wheelers prices shoot up

KARACHI: Chinese and two leading Japanese bike assemblers have raised the prices of two-wheelers by Rs500 to Rs5,000.

Pak Suzuki Motor Company Ltd has issued a letter to its authorised dealers regarding retail prices effective Oct 1. However, the company has not given any reason for the price hike.

According to a dealer, the company has increased the price of its model GS150 by Rs5,000 to Rs138,500 from Rs133,500.

A dealer said the company had enhanced the price of SD110 Sprinter ECO to Rs103,400 from Rs98,400.

Atlas Honda Ltd (AHL) had made a paltry rise of Rs500 in CG125 model from Sept 18. A dealer said the company had kept the price of its most popular CD-70cc intact at Rs63, 500 for the last two-and-a-half years.

However, a price difference of Rs20,000 exists between Honda CD-700cc and Chinese made CD-70cc but this could not help the Japanese bike assembler to beat its Chinese rivals in Karachi.

The dealer said AHL’s overall sales of bikes in Lahore alone hovers between 14,000-15,000 units per month but in Karachi the company is struggling to meet its sales target despite improved law and order situation.

He said in Karachi the availability of Chinese bikes on affordable advance payment and easy monthly instalments is giving a tough time to Honda bikes, which are not available on these schemes.

The dealer said good crop of wheat, sugarcane, rice and cotton had also played a big role in boosting bike sales in rural areas.

He said bikes sales would remain brisk in the future as people in major cities and rural areas still lack effective transport system especially in Karachi. “A buyer pays few thousands in advance and lifts the bike on easy monthly installment despite the fact it costs higher due to high interest being charged by the dealers,” he said.

Chinese bike makers have also come out with new price hike by Rs500-1,500 in 70cc to 125cc bikes.

The Chairman Association of Pakistan Motorcycle Assemblers, Mohammad Sabir Shaikh, attributed the price hike to an increase in the cost of assembling on account of the jump in raw material (steel, iron sheets and plastic) prices globally, surge in customs valuation of some components and increase in Chinese parts.

He said some other factors which also caused a price rise was the rupee devaluation against the dollar, while Chinese currency has become strong.