A Comparison of Unbelievable Bike Price Increase in 2021
Price raises have become a bothersome regularity in the Pakistani two-wheeler industry. After the recent hikes, it seems that regardless of the economic events the companies continue to increase the prices blaming high raw material costs.
The three major bike makers of Pakistan: Suzuki, Yamaha, and Honda, have announced multiple price hikes in 2021.
So far during the 2021 calendar year, Yamaha has increased the prices five times (once each quarter). Pak Suzuki Motor Company (PSMC) increased them four times, and Atlas Honda did it seven times in 2021.
Here are the price changes throughout the year for each bike company:
Atlas Honda has been the most active in terms of price hikes this year. The company has announced seven price hikes from January 2021, till date and has increased the prices of its motorcycles by up to 19.4 percent. The prices are as follows:
Yamaha has announced five price hikes from January 2021 to date and has increased the prices of its motorcycles by up to 17.1 percent. The prices are as follows:Advertisement
Suzuki has announced four price hikes from January 2021 to date and has increased the prices of its motorcycles by up to 9.9 percent. The prices are as follows:
Motorcycle companies have not missed an opportunity over the last few years to increase the prices of their products. After every event such as the COVID-19 induced recession, shortfall of raw materials, and rise in the cost of sheet metal, the motorcycle prices surged.
A senior trader claimed a few months ago that bike prices would continue to increase due to the rising cost of manufacturing. He said the demand would continue to rise despite escalating prices because cars and fuel are becoming more expensive.
As of late, automakers are citing local currency devaluation as the reason for price hikes. It bears mentioning that the rate of US dollar trailed around Rs. 150 earlier this year, but the motorcycle manufacturers either remained silent or kept on elevating prices.
These companies have localized most of the parts. Also, a majority of motorbikes in Pakistan are based on old mechanics and technology, which makes the price hikes even more questionable. The major players in the two-wheeler industry of Pakistan, Honda, Yamaha, and Suzuki should have enough resources to introduce newer and better products to its lineup.
People’s frustration is valid as the government is unbothered by the unjust, frequent, and unexplained price hikes.Advertisement
To curb these issues, the government must formulate and enforce a policy that enables more competition in the market and ensures proper regulation of motorcycle prices.
Just like the car industry of Pakistan, encouraging new entrants to the market is likely to break the monopolistic competition and offer more choices to the buyers.