With the government increasing the General Sales Tax (GST) from 18% to 25%, many local auto assemblers have raised their prices. While, this increase is supposed to apply only a specific category of vehicles (1,400cc and above, SUVs and CUVs), auto companies have found it a convenient excuse to raise the prices of their entire CKD lineups with Honda being no exception.
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Let’s take a quick look at what a new Honda car will cost you now effective from March 14, 2023.
Latest Honda Car Prices in Pakistan 2023
|Model||Old Price(Rs)||New Price(Rs)||Difference(Rs)|
|City 1.2 MT||4,579,000||4,799,000||220,000|
|City 1.2 CVT||4,729,000||4,929,000||200,000|
|City 1.5 CVT||5,019,000||5,549,000||530,000|
|City 1.5 Aspire MT||5,229,000||5,759,000||530,000|
|City 1.5 Aspire CVT||5,419,000||5,979,000||560,000|
|BR-V CVT S||5,949,000||6,529,000||580,000|
Why Have Companies Started to Increase Car Prices?
Almost all the auto assemblers in Pakistan raised the prices of their vehicles recently. They all have the same reasons for the price hike, and these reasons aren’t invalid. These reasons are the devaluation of Pakistani Rupee, increased cost of production and now an increase in the GST rate, etc.
As we can see in the image, overall year-on-year Honda car sales have dropped (except Honda BR-V and Honda HR-V) – PAMA Report. These price hikes may further contribute in reducing the car sales of automobile manufacturers / assemblers.
Now that Honda Pakistan has increased the prices by as much as Rs.1,000,000, are you willing to buy a new Honda car now? Or would you still prefer to buy a used Honda car?
Government should implement the formula of pricing against the manufacturing cost. This is the only solution to reduce price race between 3 big as they use lame excuses for price hike.
Apparently the increase in prices is more than the in increase in forex rates
Further, Honda civic is US$ 10,000 (Rs 2.7 million) costlier in Pakistan compared to it’s price in the US.