Atlas Honda has been continuously increasing its bike prices mercilessly. This has happened for the third time in one year now. The price rise of the bikes has resulted in a visible hike in the prices of cars. The renowned Pakistani bike manufacturer, Atlas Honda has increased the prices from Rs. 900 to Rs, 2000 and this will definitely be taken into effect.
Before the recent increment in prices, in April 2018 the company surged its prices by Rs. 500-3000. The previous prices of these bikes were:
- CD-70 PKR 64,000
- CD Dream PKR 68,500
- Honda Pridor PKR 88,000
- CG 125 PKR 109000
- CB150F PKR 165,000
The recent price changes were insane as well. The new prices are as follows:
Why is there an increase in the prices of bikes so often?
The reason that Honda has exaggerated the rates of its bikes all over again is that of the persistent devaluation of Rupee against the dollar within the last six to seven months and rising price of imported elements and bike accessories. An analyst from the industry has argued that the bike maker increased the costs to make the most of profit because the demand of bikes has surged considerably as seen within the Pakistan Automotive makers Association (PAMA) monthly sales results. Honda has sold-out over 0.1 million bikes fourfold this year, that is new in its history. Within the previous month, the corporation sold-out 105,283 bike units.
Although the price hike in January was reaching the skies, the company still sold around 1 lac bikes. Seeing the high demand of the product Honda has used this opportunity to increase its production by up to15 lac units per year.
Although Pakistan Association of Automotive Parts and Accessories Manufacturer (PAAPAM) claims 92% localization for bikes which should intuitively mean the prices being lowered, surprisingly that is not the case. Another probable reason for the increment could be the increased demand for bikes in particular due to the improved law and order situation of the country.
It is expected that different native bike manufacturers are motivated to increase the costs of their bikes even more. Moreover, it’s conjointly expected that bike rates may surge even additional because of the rupee devaluation, reports a neighborhood media outlet.
Atlas Honda Limited (AHL) has about 45% market share in Pakistan in 70 cc bikes. Also, the company holds a minimum of 40% share in the market for 125 cc bikes in Pakistan.
Moreover, not solely the automakers have multiplied the costs of their product, however, the caretaker government has additionally raised the costs of oil product, that is being critiqued by the transporters and native commuters.