According to statements made by dealers on Monday, the motorcycle manufacturer Atlas Honda has informed dealers that they will be increasing the cost of their two-wheelers by up to Rs15,000, with the new pricing going into effect on November 1.
As a result of the modification, the cost of the Honda CD 70 will increase by Rs5,000 and reach Rs121,500.
In a same manner, the price of the CD70 Dream model has increased by Rs5,400, and it can now be purchased for Rs129,900.
Following a price rise of Rs6,000, the Pridor model will now be offered for sale at Rs161,900. The price of a CG125 has gone up by Rs6,000, and it will now be available for purchase at Rs185,900.
CG125S now costs Rs219,500, which is a 9,000 rupee increase from its previous price. After a Rs10,000 rise, the price of a Honda CB125F now stands at Rs283,900. This represents a 3.9% increase.
Each of the CB150F and CB150 SE models had their prices increased by Rs15,000 as a result of the changes. The price of the CB150F has been reduced to Rs353,900, but the price of the CB150 SE has increased to Rs357,900.
In an interview with Business Recorder, Sabir Sheikh, Chairman of the Association of Pakistan Motorcycle Assemblers (APMA), stated that the country’s vehicle industry is in the midst of a grave crisis as a direct result of the government’s implementation of limits on imports.
According to him, the hardest affected were Chinese motorcycle manufacturers because sales of their products dropped by as much as 80 percent.
According to what he claimed, “Sales of Suzuki and Yamaha bikes have also decreased by 20%.” “Honda has been extremely fortunate up to this point as the company has not yet experienced a decline in sales.”
The price of motorcycles sold by Atlas Honda has been increased by as much as Rs9,000.
However, according to a different source in the sector, the prices of bike raw materials like as steel have also suffered a steep increase as a result of the government’s import restrictions.
In May 2022, in an effort to reduce the strain on the country’s reserves of foreign currency, the government established import limitations for the automotive industry. As a result, manufacturers may now only buy half of what they used to be able to buy from other countries.
The imposition of quotas by the government has reportedly created serious disruptions in the supply chain of the business, according to sources operating inside the sector. In addition, they stated that many suppliers of auto parts were unable to import their allotted quotas due to delays in the opening of Letters of Credit (LCs) by banks and confusion over the change in procedure for opening LCs. Both of these issues contributed to the inability of the suppliers to fulfil their orders.
According to some sources, another factor that contributed to the rise in the cost of raw materials was an inadequate supply on the domestic market.