Certain Chinese automobile assemblers have raised the price of rickshaws as well as motorcycles they sell in Pakistan by Rs 15,000 and Rs 1,000 respectively, owing to the rupee’s massive devaluation a few days ago.
Reportedly, many other assemblers are already in the midst of raising the price of 70-150cc bikes by Rs3,000 to Rs 7,000.
Authorized dealers across the country have been informed of the price hikes by their assemblers. They justified the recent price increases on the higher costs of importing steel, plastic parts and rubber after the rupee rose to record highs.
To cite an example, United Motors has raised its rickshaw loader prices by Rs 15,000 effectively from October 16th. Old orders will be entertained at present rates if buyers pay 100% advance before the 16th.
Road Prince Rickshaw loader price of 150cc engine capacity is getting a price bump of Rs 10,000. For 200cc, an additional Rs 15,000 is required. Road Prince has also increased the price of 70-125cc bikes by Rs 1,000.
A maker of hi-speed bikes, Razzy Motor Industries, informed dealerships that they should expect price increases at any time with regards to their 70-125cc models. The price increases will vary from Rs 3,000-7,000. The company says that it had no option but to raise prices seeing as how the rupee’s fall has increased production costs. The company also increased hi-speed loaders’ price by Rs 10,000 on October 10.
Mohammad Sabir Shaikh, Chairman of Association of Pakistan Motorcycle Assemblers called upon the government to give relief to the masses by lowering the general sales tax on bikes to 10% from the prevailing 17%.