After Toyota, Honda & FAW also raised car prices following rupee devaluation
The rupee devaluation has taken its toll on Automobile manufacturers in Pakistan as Honda Pakistan has increased the prices of its cars yet again after following the steps of Toyota Corolla. This is the third time in a year that Honda has updated the prices by up to Rs 100,000. Honda’s top seller’s models City and Civic models and the emerging BR-V have also seen the rise in prices. According to informed sources, the reason behind the increase in prices is attributed to Pakistani rupee devaluation against the recent devaluation of the Pakistani rupee against the dollar.
Honda has local assembly plants in Pakistan. However, most of the parts and machinery are still imported. Any devaluation of the rupee results in higher prices of these parts and eventually increase car prices in the local market can be seen. Earlier, Indus Motor Company, the maker of Toyota Corolla and Pak Suzuki have also increased car prices three times since rupee started depreciating against the dollar in December last year.
Prices of Civic’s 1.8 I-VTEC and 1.8L Oriel variants have been increased by Rs100,000. The model now will be priced at Rs2.6 million and Rs 2.75 million, respectively. On the other hand, rates of City’s 1.5L Aspire MT and AT have been increased by Rs50,000, placing them on a new price rate at Rs1.94 million and Rs2.08 million, respectively.
The BRV variants have increased in price by Rs 35,000. Other variants and models have also seen a rate hike by as much as Rs30,000. Not just Toyota and Honda, all major auto manufacturers including FAW also have increased the prices of their vehicles multiple times this as year as the local currency slides in value.
Al-Haj FAW has also increased car prices and its fourth time for the current year. The company, in response to the rupee’s depreciating value, has hiked prices for its entire lineup, with other automakers expected to do the same. Their previous price bump happened just about 3 weeks ago. You can check out the price list of FAW models, as well as their details, by visiting their website here.
“The price increase by Honda was expected as PSMC (Suzuki) and IMC (Toyota) have already increased their price for the third time to pass on the impact of the rupee devaluation,” said Farheen Irfan, an analyst at Elixir Securities.
Muhammed Hanif Memon
Founder and Editor in Chief of Monthly Automark Magazine since 2006. Magazine published from Karachi Pakistan covers Automotive industry of Pakistan, car, motorcycle and tractor news. Magazine distributed in Karachi, Lahore, Hyderabad, Multan, Islamabad, Gujranwala, Faisalabad.