Afghanistan is an example of a landlocked country, with limited access to the world major trade is done through Pakistan. Afghanistan imports food items, lifestyle, and daily necessities from Pakistan through Chamman border. There was a time when these products were smuggled but now after the fencing and authorities’ intervention, these products are exported.
In a recent development, it was reported that Afghanistan is importing motorcycles from Pakistan in bulk. The dealers are exporting the motorcycle for a higher price and this has caused a temporary shortage of motorcycles in Pakistan.
Honda CG125 is not available in the showrooms of Karachi and other major cities because it is being exported to Afghanistan through Quetta and Chamman border. The motorcycle prices are increasing and this shortage is creating more supply n demand deficit.
According to a Pakistan Customs Official, Afghan traders have imported over 3,000 motorcycles in the past 2 months. The majority of these motorcycles are Honda CG125 and Honda CD70 Motorcycles. Many other locally manufactured motorcycles are also exported to Afghanistan.
Another source also shared that every day almost 50 motorcycles are illegally smuggled into Afghanistan through illegal channels. This means that every month at least 4500-5000 motorcycles are exiting Pakistan and enter Afghanistan.
As the demand for these motorcycles is rising inside Pakistan, many dealers are seen charging ON Money on instant delivery of Honda CG125 and other motorcycles. There is no governing body that regulates the automobile manufacturers and they are basically doing what they wish too. In this situation, the company is in profit as their product is in high demand. However, this will not last forever. As the situation will get better, they ay see a dip in their sales graph. The company should be cautious about the increasing price trends, they may hurt their sales in the longer run.