Suzuki Motorcycles, a well-known brand in the Pakistani two-wheeler sector, has once again increased its costs, alarmed both current and future buyers. This price increase is a part of a larger trend in Pakistan’s vehicle sector and is not an isolated instance. The reasons behind Suzuki’s price hike and its potential effects on consumers and the industry will be discussed in this article.
Why Suzuki Increased Its Prices:
The economic unrest in Pakistan is one of the main causes of Suzuki’s price increase. The nation has been battling growing production costs, shifting exchange rates, and inflation. As a result, producers like Suzuki were compelled to change their prices in order to stay profitable.The price of imported parts and materials used in the production of motorcycles is greatly influenced by the exchange rate. Any decline in the value of the Pakistani Rupee relative to other currencies can have a major effect on manufacturing costs, forcing businesses to pass these increases on to customers.
Why Price Increase Is Not Regulated:
In Pakistan, there is no regulatory authority which controls the automobile manufacturers over the product quality, specifications, features and price. That is one of the key reason why our automobile industry is in hot waters always. The companies are making more profit rather than actual expense. For instance, in the recent price hike, dollar rate was increased by 1 percent but the actual price increase was 5%. That’s how companies are making 4% extra profit which is not regulated.
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What Is Happening Now!
Motorcycles become less accessible to the typical Pakistani customer with each price increase. This may discourage individuals from purchasing new motorcycles, which may negatively affect the sector and the economy as a whole. More buyers may resort to the used bike market as the cost of new motorbikes rises, increasing demand for pre-owned motorcycles. Although it could hinder sales of new bikes, this could present chances for sellers in the used motorbike market. Sales of motorcycles may drop as a result of ongoing price increases, which might have a negative impact on the industry and result in job losses in the manufacturing and allied industries.