Rising Bike Prices in Pakistan and Review – Bike News
When unable to afford a car, the aspirants of a four-wheeler change their mind in favor of a two-wheeler. What if the rising bike prices in Pakistan go beyond their reach? Ironically, despite surge in the price, the demand of the bike has increased to over 2 million units per annum.
Can you guess the reason behind such a trend? It is possibly because the rise in middle class of the country has contributed to the buying capacity of the individuals. Conversely, when the demand of something increases, the prices also go higher.
The Suzuki bike price in Pakistan has been rising consecutively for the previous three years. For example, in 2014, the prices were jacked up on different Suzuki bike models by Rs. 10,000 to 20,000.
In 2015, despite a stronger Pakistani rupee against other international currencies including Japanese yen during the fiscal year 2014-15, the company increased the bike prices.
As an answer to why the prices were increased, an official of the Pak Suzuki Motor Company said that such a step was taken to adjust the high production cost. But the same trend was witnessed in the following year as well. Again, the company sources attributed the motorcycle price jump to high production cost.
Let’s turn to China bike prices in Pakistan. A few years ago, the price for most of the Chinese brands used to be between Rs. 38,000 to 40,000. Owing to the increasing cost of production, the Chinese bike assemblers have recently jacked up the prices to Rs. 44,000-46,000.
However, the best seller Japanese brand, Atlas Honda Limited decided to decrease the prices of its most famous bikes models by 6,000 rupees on average in 2015. What could be the reason behind such an amazing cut in price especially from the most liked brand that sells like hot cakes? It is because the company wants to maintain its clientele amid intense competition from entry of new international players.
The CD 70 price in Pakistan was decreased from Rs. 69,900 to Rs. 63,500, down by more than 6,000 rupees! The CD Dream price was brought down from Rs. 73,500 to 67,500. However, the price of 100-125cc models remained unchanged.
Among local, Japanese as well as other international bike brands, Atlas Honda always stands first. In 2016, the bike maker was able to sell as many as 76,309 units in August alone. In January, over 73,000 motorcycles were sold.
An obvious consequence of bike price hike is that individuals from the lower end of the middleclass strata won’t be able to afford a Japanese motorcycle, particularly, Suzuki. They will go for Chinese bikes and the sales volume of their Japanese counterparts will go down.