Newly Launched Honda CB150F Bike: Demand Is There, Supply Is Not

Earlier this month, a new bike Honda CB150F was launched; however, its availability has become a serious issue as the bike is not available in the showrooms of the authorized dealers in Karachi.

Some of the dealers in Karachi are asking the customers to book Honda CB150F after displaying just one piece in their showrooms. The delivery, which the dealers are promising, can be taken in 45 days tentatively. The official price of the little beauty is Rs159,000.

However, some of the other dealers are forcing customers to pay Rs180,000 – Rs21,000 more apart from the original price – therefore worrying them that Honda may upsurge the price in the future. The customers are asked to pay the remaining amount upon delivery.

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While speaking to Dawn, a dealer said that despite crazy demand for Honda CB150F, Atlas Honda Limited (AHL) is not supplying the bike. He said:

“The company has given only two to three bikes to every showroom. Now it is asking us to stop taking advance booking of the two-wheeler”

There could be two reasons for the possible shortage of the bike:

  • AHL is completely failing to meet the customer’s demand
  • Authorized dealers are deliberately creating fake shortage in order to get hefty premiums for on-the-spot delivery

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Increase in the production capacity

It is significant to state that Atlas Honda has increased the production capacity from 750,000 units to 1.35 million units a year. The decision was taken following the accomplishment of the second production line at its Sheikhupura plant.

The overall production of Atlas Honda bikes increased from 674,851 units in 2015-2016 to 798,640 units in 2016-17. Pakistan Automotive Manufactures Association revealed these figures.

While the customers keep suffering, the market analysts opine that this current shortage of a newly launched bike could either be termed a consequence of shortsightedness on part of the Atlas Honda in forecasting the demand and thus failing in supplying; or this could be a dealer mafia tactic to create an impression through which they could sell the same bake against higher premium.

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