Yamaha has decided to extend its bike prices by Rs 5000 to 6000 thanks to increased cost of production and rupee depreciation. Yamaha has decided to extend its bike prices by Rs 5000 to 6000 thanks to increased cost of production and rupee depreciation. Their YBR125G model’s price went up by Rs 6000 to Rs 178,000. YBR125 is selling for Rs 169,000 now and YBR125Z is selling for Rs 151,000.
Association of Pakistan Motorcycle Assemblers Chairperson Sabir Sheikh stated that one among the most reasons is that the rupee depreciation, “in but a month, the rupee has depreciated from Rs 154 to Rs 168 against the dollar.”
Chairperson Sheikh added that approximately 50% of the bike parts are imported, but some products had a good higher percentage of imports needed. Hence, Yamaha’s increase in bike prices was sure to happen soon.
Another reason for higher prices is that thanks to COVID-19 SOPs, production has fallen. Yamaha is merely calling in 25% of its employees on any given day, resulting in a fall in bike production. “this, in turn, is causing a contraction within the company’s output and therefore the decreased production is translating into a rise within the cost of production.”
On a year-to-year basis, the entire bike production in Pakistan has fallen 75% in May 2020. albeit there isn’t much of a lockdown anymore, bike production will take time to travel back to love before.