The Pakistani economy having continuous currency depreciation and the overall condition of the Pakistani economy which is having ripple effect in various sectors.
However, it’s mainly affects on the local automobile sector is more relevant. As you may see that every single automaker has hiked their prices for its vehicles. Every single company has cited the same reason; this negative impact of falling the exchange rate due to the currency devaluation of the rupee.
Honda Pakistan were the very first to join the spree. The Japanese Pakistani automaker has also dramatically increased the prices for its cars which range from Rs 50,000 to 100,000. A further prices range will grow from the coming year 2019.
A report from different sources has suggested that the prices of Civic variants are going to be increased by Rs 100,000. In January, this will for sure go up again by the Rs 110,000 taking the total rise to Rs 210,000.
Prices of the City variants will be jacked up Rs 60,000 in October, and anther rise of 65,000 is expected in January to take the accumulative cost to Rs 125,000.
Similarly, the prices of BR-V will be also raised by Rs 50,000 this month, which will go up to Rs 100,000 by January coming year with another addition of Rs 60,000.
These prices will be coming to an effect from the Monday, October 22 2018.
Analyst believe that the hike in two phase is aimed to increase the sales of the cars in the meantime because the buyers, in a bid to avoid the second round of the price hikes, will make an early purchase.
Honda is not the first to bring up the car prices. Indus Motors and Pak Suzuki Motors have already raised their prices four times this year.
Recently, Indus Motors announced a hike in the range of Rs 50,000 to Rs 175,000 for November and December deliveries. This will rise to a range from Rs 100,000 to 350,000 for next year.
Farheen Irfan, a Research Analyst, says the increase in price will have an impact on demand.
“Auto companies are trying to pass on the impact of rupee devaluation, but the increasing car prices will hurt demand significantly.”