Print Edition - 2014-11-11 | MONEY
Bike prices swell due to higher production costs
Nov 10, 2014-
Prices of most two-wheeler brands have gone up over the last four months with increases ranging from Rs 1,000 to Rs 50,000, said the Nepal Automobiles Dealers Association (Nada).
According to the register of maximum retail prices published by Nada, the price increases have mostly hit high-end motorcycles. Vehicle importers publish their price lists every four months. Domestic automobile dealers have attributed the rise to manufacturers’ ramping up prices due to higher production costs.
Nepal General Marketing, the authorised distributor of Hero two-wheelers in Nepal, has raised prices of Hero motorcycles and scooters by Rs 4,500 to Rs 13,000.
The Hero Karizma ZMR, which cost Rs 307,000 two months ago, now has a price tag of Rs 320,000.
Similarly, the Hero Xtreme now costs Rs 219,500, up Rs 6,000. Prices of the iSmart bike have jumped to Rs 156,500 from Rs 151,000. Its Pleasure scooter has become dearer by Rs 4,500 and now costs Rs 156,000.
Likewise, Honda’s authorised distributor Syakar Trading has jacked up prices of its motorcycles and scooters by up to Rs 5,000. The CB Twister now costs Rs 180,900, up from Rs 175,900, the Honda CB Shine costs Rs 183,800, up Rs 4,000, and the Honda Dio which cost Rs 164,900 three months ago now costs Rs 168,900.
MAW Enterprises, the authorised distributor of Yamaha two-wheelers, has ramped up prices of its bikes and scooters by up to Rs 2,000 over the period. The Yamaha FZ 16 now costs Rs 221,900, up from Rs 220,900 while the Yamaha Ray Z is priced at Rs 167,900, up from Rs 166,900.
Similarly, the authorised distributor of Bajaj two-wheelers has hiked prices of its motorcycles by Rs 1,000. The Bajaj Pulsar 150 is priced at Rs 221,900, up from Rs 220,900, while the Avenger is priced at Rs 261,900.
Mahindra two-wheelers have become costlier by Rs 2,000 compared to four months ago.SG Global, the authorised distributor of Mahindra, has priced the Duro DZ at Rs 158,900, up from Rs 156,900. The Rodeo RZ is priced at Rs 169,900, against Rs 167,900 earlier.
“Most domestic dealers of two-wheelers have revised their price tags as the Indian manufacturers have hiked prices due to rising manufacturing costs,” said Gopi Neupane, general secretary of Nada. He added that the increased prices had not affected sales during the festival season as almost all the dealers were offering various freebies and schemes.
Dinesh Ratna Bajracharya, head of the Hero division at Nepal General Marketing, said, “Though manufacturers have been reviewing their prices many times in small amounts, we had been maintaining the original rates, but we hiked prices during the festival season after launching various prizes.”
Meanwhile, prices of four-wheelers imported from third countries have increased by up to Rs 1.2 million over the period due to a stronger dollar. Continental Associates, the authorised distributor of Kia in Nepal, has hiked the price of its Sorrento 2.2 litre by 12.19 percent to Rs 11.5 million.
Volkswagen’s authorised distributor Pooja International has increased the price of its Passat 1.8 litre by Rs 255,000 to Rs 8.9 million. The Tiguan 1.4 petrol has become dearer by Rs 155,000. It now costs Rs 7.4 million.
Similarly, Toyota vehicles like the Etios Liva and the Fortuner have become dearer by up to Rs 115,000. The Etios Liva is priced at Rs 3.4 million against Rs 3.3 million before. The Toyota Fortuner is priced at Rs 11.6 million, up from Rs 11.5 million.
“The US dollar is strengthening against the Nepali rupee making imports costlier, so we have revised prices,” said Bibek Bijukchhe, chief executive officer of Pooja International.
Published: 11-11-2014 13:59