KARACHI: Atlas Honda and Yamaha Motor Pakistan have hiked prices of their bikes to adjust the impact of rupee devaluation.
Yamaha increased prices up to Rs5,000, while Atlas Honda up to Rs2,000, according to the rate lists issued to bike sellers.
After an increase of Rs4,000 on its model Yamaha-YB125Z, the price tag of the bike increased from Rs123,500 to Rs127,500. The Yamaha-YBR125G model became costlier by Rs5,000 going up from Rs144,500 to Rs149,500. The Yamaha-YBR125 witnessed the same increase from Rs139,500 to Rs144,500, stated the company notification to bike retailers. On the other hand, Atlas Honda increased Rs2,000 on CB150F (red, silver and black) going up from Rs189,900 to Rs191,900.
Atlas Honda increased Rs600 on following models; CD70 (red and black) from Rs69,900 to Rs70,500, CD70 Dream (red, silver and black) from Rs73,900 to Rs74,500, Pridor (red and black) from Rs95,900 to Rs96,500, CG125 (red and black) from 115,900 to Rs116,500.
Moreover, the company kept prices of the following models unchanged; CB125F (red, blue and black) at Rs159,900, CB125F special edition (red and black) Rs161,900, CB250F (red, silver and blue) Rs640,000, according to Atlas Honda notification to retailers. Rupee devaluation is the main reason behind this increase, said Association of Pakistan Motorcycle Assemblers Chairman Mohammad Sabir Shaikh. Rupee devalued 32% against the dollar, since December 2017.
In 2018, bike producers increased prices four to five times; whereas, in 2019, the prices have been increased for the second time so far.
Other players were also ready to increase the price, but due to current tensions between Pakistan and India it held their decision.
Shaikh said in a warlike situation, customer demand already slows down to form any buying decision and a price hike can put additional impact to this situation, which is why other players held back.
However, Honda and Yamaha had made the decision before the tension occurred and so they were compelled to execute the decision, according to sources in the market.
Pakistan has achieved more than 90% localisation in bike segment and now it needs to move forward, said the chairman.
He said the government should form a policy for electric vehicles, particularly electric bikes.
Published in The Express Tribune, March 6th, 2019.