KARACHI: The motorcycle market leader Atlas Honda Ltd (AHL) has raised prices by Rs900-2,000 effective immediately. This is the third price hike by the company in the last six months.

The company has passed on the burden of rising cost of imported parts and accessories to the consumers owing to persistent devaluation of the rupee against the dollar in the last six months.

The new price of CD-70 is Rs64,900 followed by Pridor Rs89,900, CB150F Rs167,000 and CD Dream Rs68,900.

Earlier, the company raised prices in January by Rs500-1,000 and in April by Rs500-3,000.

Market sources said the company is cashing on in soaring demand for two-wheelers which is evident from record-breaking production and sales in the country’s history.

The company sold 1.058 million units in July-May 2017-18 as compared 888,640 units in corresponding of period last year.

The company’s board of directors has already approved a two-year phase-wise expansion plan to increase the installed capacity up to 1.5 million units per annum. The project cost is estimated at $15m.

Frequent increase in Honda bike price appears surprising when the company and their vendors claim to have achieved over 94 per cent localisation. However, Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) claims 92pc localisation in bikes.

Other manufacturers including Chinese assemblers are also pushing up prices to offset the soaring cost of imported parts on rupee-dollar parity.

According to figures of Pakistan Bureau of Statistics (PBS), import of semi- and completely-knocked down (SKD/CKD) kits during July-April 2017-18 rose to $87m from $73m, up by 19.5pc.

Bike prices may remain under pressure in coming months with the fresh 3.8 per cent devaluation under the caretaker regime. The rupee has lost around 14pc against the greenback since December 2017.

Published in Dawn, June 14th, 2018