Honda Increases Bike Prices After Budget Announcement

Honda Limited, Pakistan’s largest motorcycle maker, has announced a price increase of Rs 2,000 to Rs 6,000 per unit, effective July 1, 2025. The hike is a direct result of the new Carbon Levy on imported motorcycle engines, introduced in the federal Budget 2025–26. The revised prices impact all popular models—from entry-level commuter bikes to premium street machines—adding pressure on consumers already facing inflation and rising fuel costs

• Budget 2025–26 introduced a 1% Carbon Levy on imported motorcycle engines—costs passed directly to consumers 

• Inflation and exchange rate pressures have raised manufacturing and import costs.

• Atlas Honda ( with around 50% market share) said this is a cost-transfer measure from the new levy, not a profit-driven hike

• Daily commuters who rely on low-cost models like CD 70 now face higher upfront expenses.

• Deliver riders & professionals who use CB 125F or CB 150F may see increased loan instalments.

• Transport costs for goods and services may rise as riders try to offset expenses.

• Dealership footfall could drop as buyers delay purchases amid economic uncertainty.

• APMA Chairman Muhammad Sabir Shaikh confirmed the hike was triggered by the 1% Carbon Levy, not Atlas Honda’s decision. Dealers report the passing of levies directly without margin changes.

• Analysts warn that persistent inflation and currency devaluation may lead to future price hikes.

• The Carbon Levy is a new federal revenue source, intended to encourage green policy and raise billions 

• Budget measures were expected to raise costs on vehicles, fuel, and engines, prompting riders to expect price rises in July

• In line with IMF reforms, the levy aligns with the government’s revenue targets for FY26.

• Early 2025: Industry had warned of price hikes in response to Budget proposals; the Carbon Levy was a key concern 

• July 1, 2025, marks the latest in a series of periodic increases linked to economic pressures.

• Low-income riders are hit hardest, affecting those relying on motorcycles for their livelihood.

• A potential slowdown in motorcycle sector sales may affect manufacturers and dealers.

• Inflation ripple: Increased motorcycle loan repayments could affect household spending.

• Compare total costs: Factor in EMI, fuel costs, and inflation when buying.

• Timing matters: Dealers may offer June-end promotions before rates rise.

• Consider alternate brands: Suzuki, Yamaha, and others may not raise prices yet.

• Used bike market: Could gain demand and become more affordable for budget-conscious riders.

Atlas Honda to maintain strong after-sales service, spare parts availability, and dealership network to retain loyalty.

Looking ahead, the company may accelerate its EV plan, using pricier petrol bikes to subsidize electric expansion.

Atlas Honda’s July 1 price hike—from Rs 2,000 to Rs 6,000 per bike—is a direct response to Budget 2025–26’s Carbon Levy on imported engines. While the firm holds its margins steady, consumers absorb the costs, placing strain on daily commuters and seasonal buyers. These increases continue the auto sector's uphill battle amid a weak rupee, inflation, and policy-driven costs. As July launches, buyers are weighing options, balancing savings with mobility needs, and watching neighboring OEMs' next moves.