- Cuts vehicle rates in view of significant recovery in rupee's value against dollar
In line with the decline in value of dollar in Pakistan, Honda Atlas Cars on Wednesday reduced the prices of its vehicles in the range of Rs280,000-550,000 in a bid to pass on the benefit to the end consumer.
In a notification to its dealers, Honda Atlas stated that “keeping in view the appreciation of rupee against dollar, Honda is pleased to pass on the forex impact to its valuable customers.”
The new prices came into effect on August 17, 2022.
The company reduced the prices of five variants of City model by Rs280,000-320,000. Following the revision, the base City MT 1.2L is now available at Rs3.769 million while the high end City Aspire CVT 1.5L variant is being sold for Rs4.479 million.
The rate of BR-V has been slashed by Rs360,000 to Rs4.939 million. Similarly the price Civic models saw a cut of Rs450,000-550,000. The Civic 1.5L MCVT is now available at Rs6.349 million while Civic RS 1.5L LL CVT is being sold for Rs7.549 million.
From July 28 to August 16, the rupee recovered by over 12% in the inter-bank against the US dollar owing to positive developments related to dollar inflows from the UAE, Saudi Arabia and the International Monetary Fund (IMF). However, the local currency closed with a depreciation of Re0.98 or 0.46% against the greenback on Wednesday.
It now appears that rupee may have reached its short-term equilibrium.
“I expect the remaining auto assemblers to announce price reductions as well,” said auto part manufacturer and expert Mashhood Khan. “I also expect car makers to reduce the price again as the allied industry, such as steel makers, will also cut rates of their products due to sharp rupee appreciation.”
Khan cherished that automobile firms and the allied industry were setting a good trend in response to rupee’s recovery.
“They are quick to increase prices when rupee fall. In the past, they have failed to reduce the rates when the currency appreciated,” he said. “It is good to see that prices have decreased this time around.”
Khan hoped that other industries, such as food and fast moving consumer goods (FMCG), would also follow the trend and cut prices.