After the depreciation of the rupee against the US dollar and an increase in sales tax, Honda Atlas Cars (Pakistan) has increased the prices of its various car models by Rs1 million.
As per a circular issued to the authorized dealers, the new price of the high-end Civic variant crossed the Rs10-million mark – the first time in the country’s history.
‘Keeping in view further increase in the 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 by 14th March 2023.
After the recent price hike, the Honda Civic RS 1.5L variant is now available at Rs10.199 million.
The rate of the low-end Honda City MT 1.2L rose from Rs220,000 to Rs4.799 million. The price of 1.2L Honda City CVT jacked up by Rs200,000 and it will now be sold for Rs4.929 million.
Meanwhile, the 1.5L Honda City CVT will now be sold for Rs5.549 million after an increase of Rs530,000. On the other hand, the new price of Honda BRV CVT S is Rs6.529 million after an increase of Rs580,000.
The rate of Honda HRV VTI S has been increased by Rs800,000 and the new price is Rs8.199 million.
Remember that Pakistan’s Auto sector has been badly affected by various crises, with a number of automakers announcing complete or partial shutdowns in recent months citing various reasons.
Earlier on 8th March Pakistan’s Automobile maker Honda Atlas Cars (Pakistan) Limited (HCAR) temporarily shut down its production plant from 9th to 31st March 2023, citing supply chain disruptions.
The company announced its decision in a notice to the Pakistan Stock Exchange (PSX) and the current economic situation. The Auto industry barely survives in the country as Economical crisis worsens in Pakistan.
“Considering the current economic situation of Pakistan whereby the Government resorted to stringent measures including restricting the opening of Letters of Credit (LCs) for import of CKD kits, raw materials and halting foreign payments, the company’s supply chain has also been severely disrupted by such measures,” read the notice.
“As a result, the company is not in a position to continue with its production and ultimately has to shut down its plant from March 09, 2023, to March 31, 2023,” Atlas Honda added.
Remember that Rupee has fallen, inflation has reached high levels for decades and Pakistan’s economy has collapsed alongside a political crisis. However, devastating floods and a global energy crisis have added additional stress and harmed the country’s economy.
A shortage of imported parts and materials forces automotive and other industries to shut down their operations. Due to a shortage of foreign reserves, thousands of containers containing essential food items, raw materials, and medical supplies have been held up at the Karachi port.
Banks are refusing to issue new letters of credit to importers because they don’t have enough dollars