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Saturday July 13, 2024

Honda Atlas jacks up car prices up to Rs1 million

By Rehan Ayub
March 15, 2023

KARACHI: A Civic RS now costs over Rs10 million in Pakistan as Honda Atlas increased its car prices again on Tuesday, following a hike in the sales tax on 1400cc and above vehicles.

The government recently raised the sales tax to a whopping 25 percent on numerous items terming them as “luxury” goods. The decision impacted the auto industry that had been already struggling with a massive devaluation of the local currency in a year and inventory shortages pushed by import curbs.

“Keeping in view further increase in exchange rate PKR/USD and increase in the rate of Sales Tax from 18% to 25% on 1400cc and above CKD [completely knocked down] vehicles, HACPL has to increase current prices,” Honda Atlas Cars (Pakistan) Limited said in a letter to its dealers.

With the increase in prices, Civic 1.5L M CVT, Civic 1.5L Oriel M CVT, and Civic Rs 1.5L LL CVT will cost Rs8.6 million, Rs8.95 million, and Rs10.2 million respectively.

The new prices would come into effect from March 14, the company informed.

The rate of the low-end Honda City MT 1.2L rose Rs220,000 to Rs4.799 million, while the 1.2L City CVT became costlier by Rs200,000 to Rs4.929 million.

Meanwhile, after an increase of Rs530,000, the 1.5L City CVT to be sold at Rs5.549 million.

The new price of BRV CVT S is Rs6.529 million, with a jump of Rs580,000. The rate of HRV VTI S has been increased by Rs800,000 and the new price is Rs8.199 million.

HACPL has announced a production break till end of March, blaming current economic situation, issues in opening of letters of credit, and raw material shortages.

In recent months, almost all auto companies in Pakistan have raised their vehicles’ prices multiple times, as they struggle to cope up with an economic downturn in the country that has forced the incumbent government to take some unprecedented decisions.

Last week, Indus Motor Company (IMC) and Lucky Motor Company also jacked up their vehicles prices.

“We are compelled to pass on some impact to the market,” IMC stated in a letter to the dealers, adding that the government had enhanced the sales tax on all CKD vehicles with an engine capacity of 1,400cc and above (with exception of IMV-I single cabin).

The new price of Corolla 1.6 MT is over Rs6.1 million, while Corolla 1.8 CVT SR Black would cost more than Rs7.8 million, with a rise of Rs593,000 and Rs760,000 respectively.

The most expensive Toyota vehicle would be Fortuner Diesel Legender at a price of over Rs20 million.

KIA’s Stonic EX and EX+ now costs Rs5.2 million and Rs5.73 million, respectively.

The revised price of Sportage Alpha, FWD and AWD are Rs7.05 million, Rs7.79 million and Rs8.39 million, respectively.

According to data released by Pakistan Automotive Manufacturers Association, total industry car sales in February 2023 plummeted by 73 percent year-on-year (YoY) to 5,762 units, lowest since May’20. The passenger car sales also plunged by 80 percent YoY to 3,642 units, lowest since Dec’08 excluding April’20.

The sale of 1300cc and above cars was recorded at 2,842 units in February, down 56 percent compared with 6,471 units in the same month of the previous year.