In recent news, motorcycle sales in Pakistan have experienced a substantial decline of up to 80%, primarily attributed to the soaring inflation, resulting in unaffordable prices. Dealers have raised concerns, urging manufacturers and parts suppliers to lower their prices to reinvigorate the motorcycle market.
The Chairman of the Karachi Motorcycle Dealers Association, Mohammad Ahsan Gujjar, expressed deep apprehension regarding the alarming drop in motorcycle sales. 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.
Previously, Karachi alone used to sell around 30,000 motorcycles per month, but this number has dwindled to approximately 6,000. Gujjar is calling upon motorcycle manufacturers, including those from China and Japan, to consider reducing prices by Rs20,000 for 70cc motorbikes and Rs40,000 for larger models.
Japanese motorcycle companies, in particular, have raised prices for their 100cc, 125cc, and 150cc engine models by Rs125,000 to Rs175,000 over the past year and a half. Gujjar contends that these price hikes should be reconsidered since the US dollar’s value has diminished to approximately Rs284, and the cost of materials for motorcycle production has also decreased.
Notably, 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 70cc bikes.
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.
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.
