Atlas Honda increases bike prices after new carbon tax hits motorcycle industry

New tax has directly affected bike assemblers, forcing companies like Atlas Honda to shift the cost burden to consumers
An undated image of Atlas Honda CD-70. — Atlas Honda
An undated image of Atlas Honda CD-70. — Atlas Honda 

Motorcycle prices in Pakistan have gone up once again. Atlas Honda, the country’s top bike manufacturer, has raised prices by Rs2,000 to Rs6,000 per unit, effective from Tuesday.

The decision comes after the federal government introduced a new 1% carbon levy on imported motorcycle engines in the FY25-26 budget.

However, the new tax has directly affected bike assemblers, forcing companies like Atlas Honda to shift the cost burden to consumers.

According to dealers and industry insiders, the price hike is a direct result of the new tax. Association of Pakistan Motorcycle Assemblers (APMA) Chairman Muhammad Sabir Shaikh confirmed the increase, saying the levy has made imports more expensive, leading to higher production costs.

Atlas Honda's new prices

Here’s how the new prices look after the revision:

Motorcycle (PKR)New Price Old Price Increased byIn percentage term
CD-70
159,900157,90020001.27
CD-70 Dream170,900168,90020001.18
Pridor211,900
208,90030001.44
CG-125238,900234,90040001.70
CG-125 Self 286,900282,90040001.41
CG-125s Gold 296,900292,90040001.37
CB-125F396,900390,90060001.53
CB-150F499,900493,90060001.21
CB-150F Special 503,900497,90060001.21