According to a notice sent by the company to its dealers, Yamaha Motor Pakistan has increased prices of its bikes in the range of Rs8000-8500.
The price of the Yamaha YB 125Z model has been increased by Rs8,000 to Rs146,000 after including a 17% tax. Yamaha YBR125G variant in red, blue, and black color has been increased by Rs8,500 to Rs172,000. Also, the price of a YBR125 bike has been increased by Rs8,000 to Rs164,000.
There was a decline in bike sales in 2019 that led the bike manufacturers to increase the bike prices in order to cover their expenditures.
A bike dealer on the condition of anonymity said, “During 2019, bike sales dipped by 30% on average. Earlier, companies in Pakistan sold three million bikes per year which have fallen to two million per year now.”
Most of the customers bought bikes on installments as they found easier to pay the price on a monthly basis.
“People who earned around Rs16,000 preferred 70cc bikes while those who earned a salary of Rs35,000-40,000 usually bought bikes having the engine capacity of 100cc to 150cc. However, now sales of all three engine categories have fallen.”
Inflation during the first 7 months of the fiscal year 2019-2020 rose by 11.6% in comparison to the same period, previous fiscal year.
As per the official, there are rumors circulating in the market that the government may withdraw SRO 655 that was issued in 2006.
The order allows manufacturers to import bike parts at 15%, 10% or zero duty under the pretext of sub-component. Usually, auto companies are liable to pay 50% duty on auto parts.