KARACHI, Sept 5: The Japanese motorcycle manufacturers have increased the prices by at least Rs1,500-2,000 making the cumulative hike of Rs4,000-Rs8,000 in various engine capacities since May 2008.
Similarly, the Chinese bike makers have pushed up the price by Rs4,000 in the same period.
According to dealers, the bike manufacturers had been passing out the impact of the falling rupee value against various currencies which resulted in pushing up the cost of imported parts.
The price of Japanese bike Honda 70cc has been raised to Rs58,400 on September 3 while it was available at Rs50,890 on May 7. The CG-125 is now priced at Rs78,400 as compared to Rs70,490.
The 100cc and CG-125 Delux Model (with Euro II engine) are now tagged at Rs64,400 and Rs83,400 as compared to Rs60,490 and Rs76,890 respectively.
Meanwhile, Atlas Honda Limited (AHL) has introduced CD-100 with Euro II engine to control environment pollution while a Chinese bike maker has also introduced EURO II model in the 125cc engine capacity.
A dealer at Akbar Road claimed that the bike makers had already achieved 100 per cent indigenisation of local components (body and frames) and they had been pushing up their prices on the lame excuse of the rupee devaluation despite the fact that they were importing only engines.
He added that rising petrol prices had a negative impact on sale of motorcycles.
A Honda dealer said that he could sell only one bike in three days now as against five to eight bikes a day in May 2008.
He added that increase in the petrol price had pushed up the monthly bill of a bike owner by Rs1,000-1,500 in the last few months.
A refinery operator said that out of total annual consumption of about 1.5 million tons of petrol, the share of motorcycles stood 55 to 60 per cent.
The total production of motorcycles (both Japanese and Chinese) stands at 1.054 million units in 2007-08 in which 48 per cent are of Chinese origin. Bike production in 2006-07 was 839,851 units.
Easing out the impact of higher petrol prices on bike users, the Oil Companies Advisory Committee (OCAC) has sent its recommendations to the Economic Advisory Council (EAC).
Petrol subsidy
According to OCAC, the 4.5 million motorcycle users can be compensated against the escalating prices of petrol by the government as per the following mechanism:
All the bike users be required to get registered at central national database of Nadra through submitting copies of Computerised National Identity Cards (CNICs), driving licence, utility bills and bike registration papers. After completing this formality, some kind of subsidy in rupee terms can be given to the bike users. On an average a bike user purchases 15 litres of petrol per month.
Motorcycle owners can collect the subsidy in cash from the designated branches of National Bank and Post Offices upon displaying registration obtained from Nadra or, to avoid the cash distribution, monthly credit could be given through utility bills, the OCAC said.
It is estimated that Rs20 per litre subsidy will cost the government about Rs16 billion. Other people living below poverty line but non-motorcyclists (users of public transport), could also benefit from the foregoing subsidy scheme as they could get the monthly cash subsidy upon registering themselves at Nadra with a proof of poverty.
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