Afghan demand for motorcycles drives up prices in Pakistan

March 03, 2023 (MLN): Afghan customers are buying motorcycles from Pakistan at a premium price due to the recent announcement by the Taliban government allowing the use of motorcycles in Afghanistan, Association of Pakistan Motorcycle Assemblers (APMA) revealed on Friday.

Pakistani motorcycle dealers have reported a surge in demand for Honda CG 125cc motorcycles, and the prices have increased due to the high demand.

According to reports, Afghan customers are paying 15,000 rupees extra on top of the official retail price for the CG 125cc motorcycles.

The local customers in Afghanistan are also buying these motorcycles in US dollars, with each unit costing around $1,000. The Honda CG 125cc is one of the most popular motorcycles in Pakistan, and it is assembled with more than 90% localization. Atlas Honda, the company that manufactures these motorcycles, has increased the retail prices of its products due to the high demand from Afghanistan.

The new prices for the CG 125cc motorcycles range from Rs214,900 to Rs255,900. Other popular motorcycle brands in Pakistan, such as Yamaha and Suzuki, have also reported an increase in demand for their products from Afghanistan.

However, these brands use 50% imported CKD parts or 100% imported CKD parts, which makes their products more expensive compared to Honda. In addition to gasoline-powered motorcycles, the demand for electric two-wheelers is also increasing in Pakistan.

While the industry is still in the developmental stage, one company has introduced a good model of electric two-wheelers in Pakistan over the last five years. However, there is still a long way to go for the electric two-wheeler market in Pakistan to become more established.

Overall, the recent surge in demand for motorcycles from Afghanistan has led to an increase in prices in Pakistan. It remains to be seen how the market will evolve in the coming months and whether electric two-wheelers will gain more traction in the region.

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