China gives alot of competition in 70cc motorcycle segment to Honda. Their strategy is to keep the price low so as to make it more competetive to consumers who buy Chinese.
You will see price increase on cg 125 each year because people who buy that type of bike are totally different from other people.They are looking for some thrill and will pay extra for some excitement.
People who buy 70cc bike are looking for economical means of transport. They do not want thrills but economy so those will buy anything cheap. It is due to this reason Honda won't increase prices on 70cc becoz they want to win them over and break china bike.
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