Bike segment registering strong demand due to drastic cut in financing cost
“Despite bearing a low import cost on the back of appreciation of the rupee against the dollar, Atlas Honda has increased prices of motorcycles by Rs 1,600-3,000,” said Association of Pakistan Motorcycle Assemblers (APMA) Chairman Muhammad Sabir Shaikh.
Topline Securities’ analyst Fawad Basir said that the bike market had strong demand due to a drastic reduction in interest rate by the central bank. Citing figures, he said sales of Atlas Honda grew 25% in the first nine months of current fiscal year on a year-on-year basis. “A massive proportion of bikes in Pakistan are sold on bank financing,” he said.
Atlas Honda increased the price of Honda CD70 from Rs 82,900 to Rs 84,500, an increase of Rs 1,600. To recall, the price of Honda CD70 had gone up by Rs 6,600 in just four months in 2021.Similarly, the price of Honda CD70 Dream surged by Rs 1,600 from Rs 88,900 to Rs 90,500
On the other hand, the cost of Prider model rose by Rs3,000. The company raised the price of Prider variant from Rs 114,500 to Rs 117,500.
Similarly, the price of CG125 also rose Rs 3,000 to Rs 139,500. The model was earlier sold for Rs 136,500.
The cost of CG125SE spiked to Rs 167,500 from Rs 164,500. The price of CB125F jumped from Rs 197,500 to Rs 200,500.
Atlas Honda’s CB150F model is now available at Rs 255,500 instead of the earlier Rs 252,500. Earlier, Atlas Honda revised prices of motorcycles upwards by Rs1,000-1,600 at the end of March 2021.
It sold 836,046 units in the first eight months of fiscal year 2021 against 7,194 units in the same period of last fiscal year, said Shaikh.
“Cost of imports has declined since the last week of August 2020 when the US dollar stood at Rs 168.4 compared to the current rate of Rs 154-155, however, prices of motorcycles and other vehicles are going up continuously,” he said.
Published in The Express Tribune