Honda Increases Prices Of Cars By Up To PKR 120,000
Covid-19, increase in dollar rate, lack of sales, all of this jolted the auto industry. A few weeks ago, Indus Motor company announced a price hike for their cars. Now, it’s Honda Atlas Cars Pakistan Limited increasing the prices of their cars.
The launch of the new Honda City was highly looked forward to. However, a letter released on 4th May stated,
Keeping in mind that the rise in forex [dollar rates] and its impact on CKD [Complete Knocked Down kits] and other parts, HACPL is compelled to extend the costs of Honda cars with effect from May 5th, 2020”. The letter declared that any bookings made after 23rd April will follow the new prices.
Honda held the devaluation of rupee as the reason for having to increase the car prices. It’s a simple fact. When the dollar goes up, the car manufacturers stumble and have no choice but to make the costs higher of their cars since the sky high rate of dollar affects them directly. 60% of car parts are imported and that just makes it difficult for the auto industry to cope with the increased dollar rate while keeping the prices same as before.
The price of Honda City (1.3 L, Automatic) will be increased by Rs. 65,000. It will be sold for Rs. 2,574,000. Civic’s 1.5L Oriel variant will sell at Rs. 4,349,000 after Rs. 100,000 is added to its price.
Covid-19 already messed up with the auto industry. Sales have went down by 70% in 2020 as compared to 2019. Car manufacturers are looking for signs of hope and hence, will try everything they can to keep their companies afloat.