Yamaha Motor Pakistan Announces Price Hike Following New Tax Implementation

Following similar moves by Atlas Honda and Pak Suzuki Motor Company, Yamaha Motor Pakistan has announced revised retail prices for its motorcycle models, effective July 1, 2025. This decision is a direct result of alterations introduced in the federal budget for 2025-26, notably the implementation of a new NEV [New Energy Vehicle] levy on automobile sales.

Revised Prices for Yamaha Motorcycles

According to the updated pricing structure, the YB125Z (Red/Black) will now be priced at Rs429,000, which includes Rs65,441 in sales tax along with a Rs4,057 NEV levy.

The YAMAHA-YB125Z DX (Red/Black/Gray) has also experienced a price surge, now costing Rs459,500, inclusive of taxes and levies.

Yamaha’s YBR125 (Red/Gray/Black) will now be sold for Rs471,500, whereas the YBR125G (Black) will be available at Rs490,500.

The YBR125G (Matt) is now the most expensive model in the lineup, priced at Rs493,500 after the inclusion of new taxes.

Unique Motorcycles Also Increase Prices

In related news, Unique, a brand managed by D.S. Motors Private Limited, has also increased the price of its UD-70cc motorcycle models by Rs3,000 across all listed variants, starting July 18, 2025.

The company, in its communication with dealers, attributed the price increase to recent taxation policies outlined in the FY25-26 budget, coupled with increased production expenses, rising import duties, and prevailing economic challenges.

Previously, Pak Suzuki Motor Company had declared changes to the retail prices of its motorcycle range.

Prior to that, Atlas Honda, which commands over half of Pakistan’s motorcycle market share, increased its bike prices by Rs2,000 to Rs6,000 per unit due to the new tax regulations.

Details of the NEV Levy

The NEV levy, introduced via the Finance Act 2025, is applicable to all motor vehicles and motorcycles powered by internal combustion engines and took effect on July 1, 2025, resulting in a substantial rise in prices.

As per the details, the NEV levy encompasses all vehicle categories, spanning from basic motorcycles to high-end SUVs.

However, the policy provides exemptions for new energy vehicles (electric and hybrid cars), vehicles manufactured solely for export purposes, vehicles owned by diplomatic missions, and vehicles belonging to international organizations with diplomatic privileges.

Industry analysts suggest that these price increases may negatively affect demand in the already challenged two-wheeler market, particularly given that affordability is a critical consideration for potential buyers.