Honda CG 125 is one of the most-demanded motorbikes in Pakistan. The company has made huge profits in return for the high sales in the country each year. However, the company has undergone multiple price hikes in 2022 due to a number of reasons. Currently, Honda CG 125 price is PKR 185,900 in Pakistan. However, we can expect that the price is going to rise even more in January 2023.
Reasons For Honda CG 125 Price in 2023
Atlas Honda holds immense importance in Pakistan for providing quality and performance in its vehicles. Honda CG 125 is one of the most-demanded motorbikes in Pakistan because of its utility and performance on the tough roads and heavy traffic of Pakistan. A lot of potential customers are upset over the hike in price. Here are several reasons why Honda CG 125 price might hike in 2023.
Currency Rate Depreciation
The value of the Pakistani Rupee is depreciating against US Dollar. It results in an increase in the cost of production as the parts of Honda CG 125 have to be imported to Pakistan. But, the cost of import costs high in Pakistani rupees. Even when the value depreciates, the company had already purchased the parts in advance so they could not lower the price of the final product. The US Dollar is fluctuating which is quite expected at the beginning of the year so get ready for the expected price hike of HOnda CG 125.
Inflation Rate
Inflation in Pakistan is rocketing at a high speed which is affecting all the sectors of industry. Due to its effect on all the sectors of the economy, production, as well as, distribution is tough for Atlas Honda at the lower price. This causes an increase in taxes, costs of production, increase in wages and much more. This brings uncertainty in production and contributes to overall compensation on the cost by increasing the price of products.
Import Tariffs and Quotas
To cope with the PKR Depreciation and improve the balance of Trade in Pakistan, the government has been putting on import tariffs and quotes to lower the imports as much as possible. This is why the production of Complete Knock–Down Honda CG 125 is affected.
Either the parts are delivered in less quantity or at a higher rate due to taxes, Therefore we can expect Honda CG 125 price to rise in January 2023.
