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In a move that will impact millions of commuters and motorcycle enthusiasts across Pakistan, Atlas Honda Limited has officially increased the prices of its entire two-wheeler lineup by Rs. 2,000 to Rs. 6,000 per unit, starting July 1, 2025. The price hike follows the imposition of a 1% Carbon Levy on imported motorcycle engines as announced in the federal budget for fiscal year 2025–26.
The announcement was confirmed by industry insiders and dealers on Monday, sparking concern among consumers already grappling with inflation and shrinking disposable income.
Price Breakdown Across Key Honda Models
Atlas Honda’s revised pricing affects every segment—from entry-level commuter bikes to high-end performance models. Here’s how the price adjustments break down:
Entry-Level Bikes:
- Honda CD-70:
Old Price: Rs. 157,900 → New Price: Rs. 159,900 (↑ Rs. 2,000) - Honda CD-70 Dream:
Old Price: Rs. 168,900 → New Price: Rs. 170,900 (↑ Rs. 2,000) - Honda Pridor:
Old Price: Rs. 208,900 → New Price: Rs. 211,900 (↑ Rs. 3,000)
Mid-Range Bikes:
- Honda CG-125:
Old Price: Rs. 234,900 → New Price: Rs. 238,900 (↑ Rs. 4,000) - CG-125 Self-Start:
Old Price: Rs. 282,900 → New Price: Rs. 286,900 (↑ Rs. 4,000) - CG-125 Gold Edition:
Old Price: Rs. 292,900 → New Price: Rs. 296,900 (↑ Rs. 4,000)
High-End Models:
- CB-125F:
Old Price: Rs. 390,900 → New Price: Rs. 396,900 (↑ Rs. 6,000) - CB-150F:
Old Price: Rs. 493,900 → New Price: Rs. 499,900 (↑ Rs. 6,000) - CB-150F Special Edition:
Old Price: Rs. 497,900 → New Price: Rs. 503,900 (↑ Rs. 6,000)
Why the Price Hike? Blame the Carbon Levy
The 1% Carbon Levy introduced by the federal government targets imported motorcycle engines, a crucial component in most locally assembled bikes. This levy, part of the broader green taxation strategy to combat climate change, has forced manufacturers to pass the cost onto consumers.
According to Muhammad Sabir Shaikh, Chairman of the Association of Pakistan Motorcycle Assemblers (APMA), this tax has left manufacturers with no choice but to revise their retail prices upward.
Impact on Consumers and the Market
Atlas Honda controls over 50% of Pakistan’s motorcycle market, making it the dominant player in the two-wheeler segment. With motorcycle prices already considered high relative to average income levels, this latest hike will likely:
- Burden daily commuters
- Reduce sales volumes, especially in rural areas
- Encourage a shift to second-hand bikes or alternate transport
- Increase pressure on local assemblers to find cost-effective alternatives
Consumers and small business owners who rely on motorcycles for mobility and delivery services are expected to be hit hardest.
Industry Reactions: A Mixed Response
While environmental advocates support the Carbon Levy as a step toward sustainable policy, manufacturers argue that limited local engine production capacity means the tax will disproportionately affect the industry.
Sabir Shaikh further warned that if the rupee depreciates further or additional taxes are levied, manufacturers may be forced to announce another round of price hikes in the coming months.
Dealers, on the other hand, have expressed concern about slowing demand, especially for high-end models like the CB-150F, which already face affordability issues.
Calls for Policy Revisions and Support
Industry bodies are urging the government to:
- Reconsider the timing and rate of the Carbon Levy
- Offer incentives for local engine manufacturing
- Provide relief for low-income consumers, such as subsidized loans or installment plans
Without such measures, analysts warn that Pakistan’s two-wheeler market could experience a sharp contraction, reversing the gains made during the COVID-19 pandemic, when motorcycle demand surged.
