Market size does impact sales and prices but not to this extent. How big is the motorcycle market in Pakistan? For example in August 2014, 4,06,700 motorcycles between 125 cc to 150 cc were sold with an average price of, probably, 55,000 INR.
The pricing of Honda CG suggests that its driven by imported parts used in the bike. Which is likely to be untrue. Please correct me if wrong. This must be a 100% indigenous product.
I still cannot work my head around this pricing.
Royal Enfield which sells only about 25000 bikes per month in India, sells its 350 Classic model for 2,00,000 PKR!! This model comes with a 350cc engine which puts out 19 BHP and has Disc Brakes in front and electric start. The cheapest Enfield is for 1,67,000 PKR.
So I don't think volume is the only reason for high prices. Majra kuch aur hain.
This Honda would probably sell in India for not more than 50,000 PKR.
This is interesting. I will do more research on this with the help of one of my cousins in Karachi.