Business

Atlas Honda prices rise for fourth time in 2021

Bike segment registering strong demand due to drastic cut in financing cost

Our Correspondent May 06, 2021

PHOTO: FILE

KARACHI:

Taking advantage of soaring motorbike demand, Atlas Honda has hiked prices of its bikes for the fourth time in 2021.

“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 Rs1,600-3,000,” 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 Rs82,900 to Rs84,500, an increase of Rs1,600. To recall, the price of Honda CD70 had gone up by Rs6,600 in just four months in 2021.Similarly, the price of Honda CD70 Dream surged by Rs1,600 from Rs88,900 to Rs90,500.

READ Importers of bike spare parts in trouble over high taxes

On the other hand, the cost of Prider model rose by Rs3,000. The company raised the price of Prider variant from Rs114,500 to Rs117,500.

Similarly, the price of CG125 also rose Rs3,000 to Rs139,500. The model was earlier sold for Rs136,500.

The cost of CG125SE spiked to Rs167,500 from Rs164,500. The price of CB125F jumped from Rs197,500 to Rs200,500.

Atlas Honda’s CB150F model is now available at Rs255,500 instead of the earlier Rs252,500. 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 Rs168.4 compared to the current rate of Rs154-155, however, prices of motorcycles and other vehicles are going up continuously,” he said.

Published in The Express Tribune, May 6^th, 2021.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.