Atlas Honda has increased the prices of its motorbikes up to Rs5,000. According to the notification, the new rates will be applied from August 1, 2020.
Earlier in July, the company hiked the prices up to 20,000.
Price Hike by Atlas Honda:
The notification stated that the new price of Honda is Rs77,900 after getting an Rs1,000 increase from the old price of Rs76,900. Meanwhile, CG-125 will now cost Rs129,900, comparing to the early rate of Rs128,900. The prices of CG-125S and CG-125SE have seen a jump of Rs2,000 and will now cost Rs154,900 and Rs156,900, respectively.
Furthermore, CF150F has seen the biggest hike of Rs5,000, and its new price is Rs244,500 from the old rate of Rs239,500.
The company has kept the price of Honda CD-70 Dream same at Rs82,500.
Relaxation in Budget 2020-21:
It is pertinent to mention that the government removed Ambit of Advance Tax (AAT) on vehicles with engine power up to 200cc under Fiscal Budget 2020-21. During his Budget speech, Federal Minister of Industries and Production Hammad Azhar had said that the step is being taken to provide relief to lower strata of society.
The new price hike is expected to hit the already slow auto market in Pakistan. According to Pakistan Automotive Manufacturers Association (PAMA), Honda sold 873,902 units in FY20, compared to 1,114,956 bikes last year.
The company has not yet told the reason behind this another hike.
Possible Consequences for Atlas Honda:
This new hike will surely further effect the sales of Honda Atlas. The power of customer is already severely hit by rupee devaluation and COVID-19. We think, with these continues jumps in rates of bikes, the customer will start to focus more on used vehicles, because the new motorbikes are getting out of price range of many consumers. Henceforth, the company needs to consider all these aspects, while increasing the prices of bikes in the country.
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