In a concerning development, motorcycle sales in Pakistan have taken a nosedive, with a staggering 80% decline attributed to the country’s skyrocketing inflation, making motorcycles unaffordable for many. Motorcycle dealers across the nation are now urging manufacturers and parts suppliers to lower their prices to rejuvenate the ailing motorcycle market.
The Chairman’s Concerns
The Chairman of the Karachi Motorcycle Dealers Association, Mohammad Ahsan Gujjar, has expressed deep apprehension regarding the alarming drop in motorcycle sales, despite some favorable economic conditions. Despite a decrease in the value of the US dollar compared to the Pakistani rupee and a reduction in petrol prices, the cost of motorcycles has remained prohibitively high, crippling the industry.
Sales plummeted in Karachi
Previously, Karachi alone used to sell around 30,000 motorcycles per month, a number that has dwindled to a mere 6,000, according to Gujjar. He is calling upon motorcycle manufacturers, including those from China and Japan, to consider reducing prices significantly, suggesting a reduction of Rs20,000 for 70-cc motorbikes and Rs40,000 for larger models.
Japanese manufacturers are under fire
Japanese motorcycle companies, in particular, have raised prices for their 100cc, 125cc, and 150cc engine models by a staggering Rs125,000 to Rs175,000 over the past year and a half. Gujjar contends that these price hikes should be reconsidered, given that the US dollar’s value has diminished to approximately Rs 284 and the cost of materials for motorcycle production has also decreased.
Impact on Various Brands and Market Segments
Motorcycle dealers in Karachi offer a wide range of motorcycle brands, including Atlas Honda, Suzuki, Super Power, Super Star, Unique, Hi-Speed, and more. Gujjar emphasized that most buyers, particularly from the middle-class and lower-middle-class segments, opt for the more affordable 70-cc bikes. These segments are especially affected by the current price levels.
Dealers Struggling to Stay Afloat
Furthermore, the head of the association cautioned that dealers are struggling to sustain their businesses due to the ongoing financial strain, including paying employee salaries, bills, and other operational costs. If the situation does not improve in the near future, there is a looming threat of dealers having to close their doors, which would have severe economic repercussions.
Prospects for Price Adjustment
This challenging market scenario may potentially lead to a price adjustment in the motorcycle industry in Pakistan, offering some relief to consumers. However, the timeline and extent of any price reductions remain uncertain, pending further developments and negotiations within the industry.
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