CORPORATE WINDOW : The plight of bikes

All manufacturers have benefitted from the environment of rising prices in the 16-month rule of the PDM government. The two-wheeler industry is no exception, playing havoc with the prices by citing rupee devaluation against the dollar. Despite declining demand and claims of high localisation, buyers still face high price shocks. Prices have increased significantly more than the 58 per cent depreciation of the rupee in the past 16 months. One dollar was worth Rs182.93 when the prime minister took office on April 11, 2022, and closed at Rs289 on August 9 after leaving office. Prices for Honda motorcycles have increased significantly. The CD-70cc, CD-Dream, Pridor, and two special edition models now range from Rs157,900 to Rs282,900. The increase in price by Atlas Honda Limited in various models ranges between 47-70pc in the last 16 months despite achieving over 96pc localisation in the iconic Honda CD-70cc. Honda sold one million bikes in FY23, posting a decline of 26pc compared to FY22. However, net sales for the fiscal year ending March 31, 2023, rose by 3pc to Rs135.5 billion from Rs132bn during the same period ending March 31, 2022. Profit after tax plunged by 10.4pc to Rs5bn from Rs5.85bn.