Motorcycle manufacturing companies of Pakistan have kept a firm stand against the prices of their products. As the automobile industry in Pakistan is on the back foot these days, Car manufacturers have started decreasing their prices. The motorcycle manufacturing companies have remained silent and have not shared a single word. The end consumers have been demanding the motorcycle manufacturing companies to decrease their prices but their has not been a slight decrease. Now dealers urge companies to decrease motorcycle prices as the sales are now declining.
Motorcycle sales have dropped by a whopping 80 percent in a recent downturn, leaving bike dealers managing with the effects of high inflation.Faced with this terrible position, dealers are now pleading with bike assemblers and car parts sellers to change their pricing tactics in order to reduce the impact of consumers’ decreasing purchasing power.The end consumers are of the view that now motorcycle prices will be reduced as car prices are also being reduced.
A number of bad incidents can be traced back to the core cause of this disaster. While the US dollar has fallen significantly against the Pakistani rupee, and petrol prices have been decreased, motorcycle consumers have yet to benefit.Japanese companies raised pricing on motorcycles with engine capacities ranging from 100cc to 150cc over the last 18 months, citing the then-current exchange rate of the US dollar at Rs334. The situation, however, has evolved, and the current exchange rate is around Rs284.
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Furthermore, the cost of raw materials has reduced, making a strong justification for an immediate reduction in bike pricing.Dealers are raising the alarm, highlighting the growing strain on their operations. In the current economic situation, rising operating expenditures such as labor, power bills, and other expenses are proving difficult to bear.
Dealers express their fears, warning that if market circumstances remain unchanged and pricing remain unchanged, they may be forced to close their doors.Dealers emphasize the volatile character of the currency market, stating that the frequent variations in the US dollar exchange rate have made it difficult for assemblers to make price-cutting decisions.
The uncertainty surrounding the dollar’s appreciation and depreciation adds another degree of complication to an already complex situation. As a result, dealers realize assemblers’ reluctance to disclose any price decreases until January 2024.