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Honda bike sales continue to rise

Honda bike sales continue to rise

KARACHI: Atlas Honda Ltd’s bike sales rose 4.5 per cent month-on-month to a record 84,073 units in November.

The company’s sales have been on the rise of late as it sold 80,479 bikes in October and 76,309 bikes in August.

Production also peaked to 84,000 units in November compared to 80,600 in October and 76,600 units in August.

However, despite increase in production, Honda CG-125 is either available at a premium or customers need to book the model and get the delivery in 30 to 45 days.

While some dealers do not have CG-125 bikes, those who have put the model on display are charging customers an extra Rs4,000 to Rs5,000 per bike citing short supply against high demand.

It is not clear whether the Japanese assembler has been failing to meet the surging demand or the dealers have deliberately put on hold CG-125 bikes to make a quick buck. This demand and supply gap has been going on for the last one year or so, forcing consumers to pay more on spot sales.

In the July-November period, Honda’s bike sales rose 14pc to 374,558 units. The company plans to sell one million bikes in 2017-18.

By contrast, Pak Suzuki sold 7,170 units in July-November, a year-on-year rise of just 1.3pc. Yamaha sales fell 32pc to 5,178 units during the period. The sales of these two prominent Japanese brands were far lower than some Chinese counterparts.

Association of Pakistan Motorcycle Assemblers chairman Mohammad Sabir Shaikh said buyers have turned towards Honda bikes “because of high quality” while many Chinese bike assemblers have failed in this department.

Some eight Chinese bike assemblers are selling bikes of relatively better quality which are evident from their rising sales, while others are struggling for their survival, he said.

Dealers at Akbar Road said a stable economy coupled with improving law and order situation has provided a base for strong demand resurgence.

They said good agricultural harvest also helped increase demand for Honda products. The much-needed stability in the agricultural sector has been achieved through the dairy industry and a growing meat business. Steady cash flow from these two businesses has had a positive impact on the demand for motorcycles, thus pushing up overall market size of two-wheelers.

Published in Dawn, December 16th, 2016

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