The recent increase in the price of dollar has met the nation by surprise. Some people are directly under its impact whereas others are indirectly. However, it is no surprise that this issue has certainly affected every individual living in Pakistan. Since the price of most of the things and products have hiked up. If you think automobile sector is not influenced by this? You are certainly wrong. Probably automobile industry is the only one which has increased prices so quickly.
Previously, there was news circulating regarding an increase in prices of Atlas Honda cars. After cars, the company has also increased Honda bike prices 2018. Atlas Honda Limited has increased the prices of bikes between the range of PKR.500-3000 and who is to be blamed? None other than the devaluation of Paki rupee.
Atlas Honda Limited (AHL) is focused towards increasing their sale by selling 1.3million bikes by the end of next year. However, the company has managed to sell approximately 1.1million bikes so far. According to Honda bike authorized dealer, the improved law and order situation throughout the country has played an important role. This has not only increased sale as people are not scared of investing. As earlier people were hesitant as the poor city situation resulted in the bike being stolen or set on fire. Moreover, the poor public transport in the region has encouraged people to switch to their own mode of transport. The improved situation in the Karachi, in particular, has increased approximately by 50000 units. Atlas Honda Limited (AHL) has about 45% market share in Pakistan, particularly in 70cc bikes. Also, the company holds a minimum of 40% share in the market for 125cc bikes.
Let’s keep our fingers crossed and assume that increasing prices of Honda bike will not have a direct impact on their sales. However, it is very unlikely as there are number of Chinese and local bike manufacturers in the market now. Honda bike prices 2018 were already too high in comparison to competitors. The further increase in prices might drive their customers away from them and leave behind, only loyal customers.