Bike prices rev up on high demand

A customer buys an imported motorbike at a showroom on Ba Trieu Street. photo Truong Vi

Shops in Hanoi have reported an influx of buyers, with motorbikes, especially scooters, being sold as soon as they land on the shop floor.

Staff at a Honda agent in Xuan Thuy street said each day they sold 20-30 bikes, double the number of the same period last year.

The price of a Honda AirBlade F1 in some stores is about VND41 million ($2,000), roughly VND6 million ($300) more than Honda's recommended retail price.

The price of a Honda Lead is VND5 million, ($250) higher than the recommended price.

The Honda PXC has been sold out by almost all retailers, despite being over-priced by VND10 million ($500).

One Yamaha model was selling for VND4 million ($200), above the recommended retail price.

Customer Duong Van Quang, of Cau Giay District, said he had visited many stores to choose a bike and each one had given him a different price, all higher than that recommended by the manufacturer.

Nevertheless, he had still bought one because he was afraid the prices would continue to increase.

High demand at the end of the year was cited as the main reason for the increase, said a Honda spokesperson.

Almost all customers were anxious to drive the bikes away immediately and retailers were capitalising on their eagerness to increase the prices, she said.

While her company, Honda, recommended a price retailers were not bound by it, she said.

A Yamaha spokesperson agreed. Retailers set their own prices, he said.

Import motorbike prices were also on the rise because of the demand, plus the effect of devaluation.

An Airblade from Thailand was VND7 million ($350) more expensive than two months ago at VND65 million ($3,200) including tax and registration.