Honda Atlas Cars has increased the prices of its vehicles again and with the latest hike, the price of high-end Civic variant crossed the Rs10-million mark for the first time in history.
In a notice sent to dealers, the company said “keeping in view further increase in exchange rate and rate of sales tax from 18% to 25% on 1,400cc and above CKD vehicles. HACPL (Honda Atlas) has to increase current prices”.
The new prices came into effect on March 14.
Following a price hike of Rs1 million, the Civic RS 1.5L variant is now available at Rs10.199 million.
Third time in 2023: Honda Atlas again raises car prices by up to Rs550,000
The rate of the low-end City MT 1.2L rose Rs220,000 to Rs4.799 million. The 1.2L City CVT became costlier by Rs200,000 and it will now be sold for Rs4.929 million.
Meanwhile, after an increase of Rs530,000, the 1.5L City CVT will sell for Rs5.549 million.
The new price of BRV CVT S is Rs6.529 million after an increase of Rs580,000.
The rate of HRV VTI S has been increased by Rs800,000 and the new price is Rs8.199 million.
Crisis hits demand of low-end cars the most in Pakistan: PAMA
Almost all car and motorcycle companies have jacked up prices of their vehicles multiple times in the ongoing calendar year.
Much like the economy, Pakistan’s auto industry is also undergoing turbulent times. It is one of the sectors most affected by rapid depreciation of the rupee and Letter of Credit (LC) issues, which arose due to depleting foreign exchange.
Honda Atlas shuts plant till March 31 due to supply chain disruptions
Due to multiple rounds of price hikes and supply chain issues, car sales have dropped significantly. According to data released by the Pakistan Automotive Manufacturers Association (PAMA), the sales of Honda Atlas Cars dropped 40% to 1,636 units year-on-year in February.
The total sales of cars and light commercial vehicles (LCVs) were down by 74% in February year-on-year and 45% down month-on-month.
The auto industry is heavily reliant on imported parts and material to assemble vehicles at local plants. It is currently facing immense supply chain issues amid exchange rate volatility and depleting foreign exchange reserves.
The low level of forex reserves in Pakistan has forced the government to place restrictions on opening of letters of credit (LCs) through the State Bank of Pakistan for several sectors including automobiles. This has also disrupted the supply chain for auto companies.