- New rates to come into effect from January 4
Japanese bike-maker Yamaha Motor Pakistan notified an increase in prices of its two-wheelers by up to Rs13,500, driven by import restrictions and spike in cost of production of automobiles.
According to a notification sent to the bike dealers, the new rates will be effective from January 4, 2023.
The company jacked up the price of YB125Z model by Rs12,000 to Rs305,500. The firm also hiked the rate of YB125Z DX variant to Rs327,000 from Rs314,500.
The prices of YBR125, YBR125G and YBR125G (matt dark gray) models have been jacked up by Rs13,500 to Rs336,000, Rs349,500 and Rs352,500 respectively.
The company last increased prices of its two-wheelers in November 2022 with the hike as high as Rs8,000.
Speaking to Business Recorder, Association of Pakistan Motorcycle Assemblers (APMA) Chairman Sabir Sheikh said the cost of production for the automobile sector has risen significantly.
“Moreover, the dollar rate has been fluctuating and the greenback could not be found in the open market. Banks aren’t opening Letters of Credit (LCs) which is hindering the import of auto parts and as a result, there is a general shortage of components in the market.”
Another source in the industry stated that automobile components and raw material are selling at very high prices in the market because stocks have depleted amid import restrictions.
The auto sector has been struggling from a shortage of dollars in the country which has forced the government to curtail imports. Pakistan’s auto sector is highly dependent on imported auto parts and raw material.
Pak Suzuki Motor Company (PSMC) recently announced a temporary shutdown of its automobile and motorcycle plants from January 2 to 6 “owing to inventory shortage”.
Earlier, the management of Baluchistan Wheels Limited (BWHL) also decided to suspend production due to depressed demand for automobiles in the market.
Indus Motor Company (IMC), the assembler of Toyota-brand automobiles in Pakistan, also announced to completely shut down production plant from December 20 to December 30 due to delays in approval for imports.
In a corporate meeting last month, IMC officials said that import restrictions imposed by the central bank and ongoing rupee depreciation were denting the country’s auto sector.
They also stated that the industry was bearing the burden of escalating production costs on account of rupee depreciation while demand was on the decline due to the economic downturn amid high interest rates and augmented duties and taxes on vehicles.