Karachi Motorcycle Dealers Struggle as Sales Plummet 80% Due to Soaring Inflation

The motorcycle market in Karachi is facing a severe crisis, with sales plummeting by a staggering 80% due to the impact of high inflation. Dealers are struggling to attract buyers in the face of economic challenges. While the US dollar has fallen against the Pakistani rupee, and petrol prices have also decreased, customers are yet to see any significant relief.

The Karachi Motorcycle Dealers Association Chairman, Mohammad Ahsan Gujjar, has called upon Chinese and Japanese bike assemblers to reduce prices by Rs20,000 for 70cc motorbikes and Rs40,000 for 70cc models. Japanese companies had previously raised prices by substantial amounts, citing a higher exchange rate of the US dollar, but the situation has changed since then, with the dollar becoming cheaper. Gujjar argued that it’s now imperative to reduce bike prices.

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The Association of Pakistan Motorcycle Assemblers’ former chairman, Muhammad Sabir Shaikh, explained that assemblers had imported auto parts when the US dollar was trading at Rs290, and stopped imports when the dollar crossed Rs300. However, the continuous volatility of the currency makes it challenging for assemblers to announce price cuts. They are now urging dealers to reduce prices by Rs2,000 to Rs5,000 to provide some relief to buyers.

Auto analyst Zain Shariq pointed out that several factors, including the fluctuating dollar, high utility bills, labor costs, and inflation, contribute to price increases. He emphasized the importance of offering relief to customers to keep businesses afloat in these challenging economic conditions.

In summary, Karachi’s motorcycle market is grappling with a sharp decline in sales, and industry stakeholders are calling for price reductions and relief measures to revive the struggling sector.

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