PakWheels Reports: Bike Prices Soar with New Tax Levy
The price increases have significant implications for the automotive market, with buyers facing higher costs and manufacturers adjusting to new tax burdens, highlighting the need for consumers to consider these changes when making purchasing decisions.
Atlas Honda has raised its bike prices, effective July 1, 2025, due to the introduction of an 18% Sales Tax and 1% NEV Levy in the 2025-26 Federal Budget, with revised prices ranging from 159,900 for the CD70 to 503,900 for the CB150F (S/B).
The price hike affects various Atlas Honda models, including the CD70 Dream, Pridor, CG125, CG125S, CG125S Gold, CB125F, CB150F (R/B), and CB150F (S/B), with prices now including taxes. United Auto Industries has also increased prices of its motorcycles, citing the NEV Levy and depreciation of the Pakistani rupee, with new prices ranging from Rs 111,000 to Rs 299,000.
The NEV levy, a new tax imposed on internal combustion engine motor vehicles and motorcycles, has contributed to the price increase, effective July 1, 2025. This tax hike is part of a larger trend in the automotive sector, with car manufacturers like Honda also increasing prices of locally assembled CKD models by up to Rs. 200,000 due to the newly introduced NEV levy.
The auto sector in Pakistan is facing pressure, with other manufacturers like Kia and Suzuki announcing price hikes, making it more expensive for consumers to purchase new vehicles. As the industry adapts to the new tax burdens and import costs, buyers can expect to pay more for their desired vehicles.