Atlas Honda and Suzuki saw weak sales in December 2021 as the weather turned colder across the country, according to data shared by the Pakistan Automotive Manufacturers Association (PAMA).
The data reveals that Honda sold 115,080 units in December, posting a 10% decrease on a monthly basis and a 3.4% increase on an annual basis in December 2021. Suzuki sales also fell 4.5% to 3,115 units.
Motorcycle sales decline each year during the winter months due to climate change. However, there are also other reasons.
Why have motorcycle sales dropped?
Pakistan Motorcycle Assemblers Association (APMA) Chairman Muhammad Sabir Shaikh said farmers generally prefer to buy Honda motorcycles as the big companies use higher quality materials. “Farmers buy motorbikes when they sell crops in the market,” he added.
He added that since no crops are sown in December, people have no money to buy Honda motorcycles. He expects motorcycle sales to continue to decline over the next three months.
“Apart from that, people who live in urban areas have no purchasing power to purchase vehicles due to rising prices,” Shaikh added.
Shaikh said Suzuki faces a shortage of completely knocked-down (CKD) motorcycle kits as the number of Covid cases increases in Japan and the government plans to impose restrictions. However, the cost of containers in the international market has increased from $8,000 to $6,000.
He said demand for motorcycles from major companies such as Honda, Suzuki and Yamaha had increased over the past two months amid rising car prices. “People don’t prefer to buy Chinese motorcycles because of their low quality,” Shaikh said.
He revealed that although motorcycle manufacturers offer customers a warranty on motorcycles for six months, manufacturers refuse to repair motorcycles when customers contact them to claim warranty.
Shaikh said motorcycle manufacturers don’t get big margins like automakers, so they can’t repair motorcycles if they break down. However, one of the motorcycle dealerships said that they provide warranties on the engine and other body parts.
Rise in motorcycle prices
On November 3, Atlas Honda raised the price of its motorcycles for the seventh time to Rs 6,500.
The top of the range CB150F Special is now available at Rs277,500.
The Honda CD70, the best-selling motorcycle in the country, sells for Rs 94,900 after an increase of Rs 4,000 and the price of the CD70 Dream has risen from Rs 5,000 to Rs 101,500.
Motorcycle dealers at the time said that raw materials such as steel were becoming expensive in the international market, and the rising value of the US dollar was also putting pressure on the import bill.
On December 1, Yamaha YB125Z has had a price hike of Rs6,000 and it is now available at Rs190,000.
Yamaha YB125Z DX and YBR125 prices have increased by Rs.7000. These variants sell for Rs205,500 and Rs211,000 respectively.