Sabir Shaikh, the Chairman of, Pakistan Motorcycle Assemblers Association has said that there has been an increase in the prices of 70cc motorcycles to the extent of Rs.7000 to Rs. 8000 and Rs. 25000 to Rs. 52000 on the 125cc and high power motorbikes.
According to the Sabir Shaikh, industry busy in manufacturing of spare parts for the auto industry, the prices of steel sheet has gone 35% higher while the prices of aluminum, copper, and plastic, etc. have gone 50% higher. The prices of locally made raw materials are also rising as per the rise in prices at the international level.
Sabir Shaikh said during Covid-19, the trend of home delivery is one of the causes for the increase in the sale of motorcycle and despite the rise in prices, the sale remained high. But from this month, the trend of sale is downward.
Abdul Rahman Aziz, the Chairman of, Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) said that the increasing production cost due to the rising trend of prices of raw material is dangerous for the auto industry. He demanded the government to decrease the duty and taxes on raw material.
He added that the reduction in regulatory duty on the import of raw material is the only solution that can save the auto industry till the prices of the raw material come down. He added that at present, the rate of regulatory duty on the import of raw material is 30%. The reduction in it will cause the reduction of the prices of raw material and then the prices of motorcycle could also be reduced.
He further said that the production of spare parts is directly related to the gross domestic product. There will be a lot of employment opportunities if the import of spare parts and semi-finished items comes down. This will also resolve the problem of the shortage of foreign exchange.