The motorcycle industry is facing tough times. Sales have dropped by a whopping 80%, and this has left bike dealers in a tough spot. They are struggling because of high prices. To deal with this difficult situation, dealers are asking bike makers and parts suppliers to lower their prices. This will help ease the burden on consumers who can't afford expensive bikes anymore.
The main issue here is a series of unfortunate events. Even though the US dollar has lost value compared to the Pakistani rupee and petrol prices have gone down, bike buyers haven't seen any relief. Japanese companies increased the prices of bikes with engines from 100 cc to 150 cc over the last eighteen months. They said it was because in the past, the US dollar was expensive, with an exchange rate of Rs 334. But things have changed now, and the exchange rate is about Rs 284 now. On top of that, the cost of materials for making bikes has also gone down. So, it makes sense to reduce bike prices.
Bike dealers are raising concern because they're feeling the pressure. They have to pay for things like employee wages, utility bills, and other costs, and it's getting hard in today's tough economy. Motorcycle dealers are worried that if things keep going this way and prices don't come down, they might have to close their shops.
Dealers want to remind everyone that the exchange rate for the US dollar is very unstable. It keeps going up and down, and this makes it hard for bike makers to decide if they should lower prices or not. All this uncertainty about the dollar's value adds another layer of complexity to an already complicated situation. So, bike makers are waiting until January 2024 to see if they should cut prices or not.
Motorcycle dealers are in trouble because they can't sell bikes at high prices when people can't afford them. They're asking the companies to make bikes at lower prices because the reasons for high prices are gone. But the companies are waiting to see what happens with the US dollar before they decide.