Atlas Honda Limited, one of Pakistan’s largest motorcycle manufacturers, has recently announced a significant increase in prices of its products due to the devaluation of the Pakistani Rupee. The move has sparked concerns among the public, as it comes amidst a series of price hikes across the country that are affecting the populace.
As of February 15, Atlas Honda’s bikes are available at revised prices that are up to Rs. 35,000 higher than their previous rates. The company’s latest price list reveals that models such as CD 70, CD 70 Dream, Pridor, CG 125, CG 125 Special Edition, CB 125 F, CB 150 F, and CB 150 F SE have all undergone price increases ranging from Rs. 9,000 to Rs. 35,000.
Despite reporting a Rs. 1.408 billion profit for the quarter that ended on December 31, 2022, the company witnessed a 3.7% decline in profit compared to the same period last year. This has been attributed to multiple price increases in the quarter, which have affected sales. In fact, the company’s sales have fallen by 3% compared to Rs. 36.26 billion in the same period last year.
However, there has been a 19% quarter-on-quarter (QoQ) increase in sales due to higher volumetric sales. The company sold 272,638 units, which is approximately 9% higher than the sales figures from the previous year.
Atlas Honda’s sales and profits have been impacted by production issues, and the recent price increases have further dampened demand. With the current economic situation, it is likely that the company will face more sales reductions and price hikes in the future.
In conclusion, Atlas Honda’s latest price hikes reflect the current state of the Pakistani economy, which is grappling with inflation and devaluation of the rupee. The impact of these factors has been felt across various industries, and the motorcycle sector is no exception. As the situation unfolds, it remains to be seen how companies will navigate the challenges that lie ahead.
