Bike dealers charging premium

bike-dealers-charging-premium

Bike dealers charging premium KARACHI: Authorised motorcycle dealers are charging heavy premium from impatient buyers on spot sales for two models of Atlas Honda Limited (CD-70cc and CG-125cc), which are in short supply.

A random market survey at Akbar Road, the hub of new and used bikes, revealed that a number of dealers – who do not have stocks of the above mentioned models – are insisting that buyers pre-book and get the bikes delivered in the next 15-20 days.

The company price of CG-125cc is Rs105,500 and CD-70cc is Rs63,500 but dealers are demanding Rs114,000-116,000 and Rs63,500 respectively for ready sales.

Two other models of 125cc – which are not much in demand – are easily available, with dealers offering a discount of Rs500 per bike on retail price.

Sources said either AHL has failed to meet the soaring demand of bikes despite increasing its production capacity or the dealers’ mafia has again become active by creating artificial shortage to cash in on the rising demand.

Customers faced a similar situation last year and earlier this year when the 125cc model was sold on premium, sources added.

Chairman Association of Pakistan Motor Cycle Assemblers (APMA), Mohammad Sabir Shaikh claimed that AHL had raised the price of CG-125 by Rs500 while keeping the prices of Honda bikes intact.

Mr Shaikh said Pak Suzuki Motor Company Limited (PSMCL) has introduced a new model of 150cc – with some cosmetic changes to the previous model – which is available at Rs158,500. The previous model is available at Rs133,500.

He said a number of buyers hailing from interior Sindh are lifting Honda bikes mainly while people of Karachi are buying Yamaha and Suzuki.

In of view rising sales of branded bikes, some leading Chinese bike assemblers have introduced various gift schemes including free foreign tour package to lure buyers, he said.

AHL sold a record 76,309 units in August 2016 alone. The company is nearing completion of 1.3 million units capacity expansion form the previous 750,000 units per annum.

AHL sold 811,034 units in 2015-16 as compared to 653,193 units in 2014-15.

Source: http://www.dawn.com/news/1287819/bike-dealers-charging-premium

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