Motorbikes are the go-to ride for most citizens in Pakistan. They are a lifesaver when it comes to driving on the congested roads of the country that could fit nowhere in the narrow streets. Moreover, cars keep stuck in traffic for hours and motorbikes can easily make their way to their destination. But, unfortunately, Honda 125 and CD 70 Price is likely to increase in the coming times.
Atlas Honda has been operating in Pakistani markets for decades. Its two bikes, Honda 125 and CD 70 are everyone’s favourite due to their durability and functionality on roads. However, the economic conditions of Pakistan are making the company’s sustainability difficult. Therefore, Atlas Honda is expected to raise Honda 125 and CD 70 prices in Pakistan.
Reason for Increase in Honda 125 and CD 70 Price
The inflation rate in Pakistan is growing at a high pace. Therefore, it is hard for companies to maintain their revenues. Not only businesses, but the overall economy of Pakistan is suffering as a result of uncertain economic conditions.
The government of Pakistan has imposed import restrictions to stabilize the current account deficit of the country. As a result of these import restrictions, Atlas Honda has to minimize the import of Completely Knocked Down (CKD) kits and raw materials. The minimization of imports has caused a disturbance in the supply chain of the company that heightens the cost of production.
The growing inflation has contributed to the increase in the costs of production of Atlas Honda. Moreover, the purchasing power of consumers is highly affected by the increase in inflation. The value of the Pakistani rupee has deflated against the Dollar which has reduced the confidence of customers in buying new motorbikes. Therefore, the company’s sales are drastically falling down.
Summing up, the restrictions on the import of raw materials and CKD kits, unstable forex conditions, high cost of production, inflation, and uncertain economic conditions are prevailing in Pakistan. All these factors are adding up to Honda 125 and CD 70 price increase. Therefore, we must be ready for the hike anytime soon.