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Monday, November 18, 2024

Why did Honda increase its car prices?

According to the notification, Honda increased the prices of various models by up to Rs. 400,000. As per the circular issued to the authorized dealers, the new price of Honda City 1.2L MT and CVT models is Rs3.129m and Rs3.249m, up by Rs400,000 and Rs300,000.

In a massive blow to consumers, Honda has increased its car prices which will come into effect from 26th March 2022 (today). The company issued a notification to authorized car dealers regarding the new prices.

According to the notification, Honda increased the prices of various models by up to Rs. 400,000. As per the circular issued to the authorized dealers, the new price of Honda City 1.2L MT and CVT models is Rs3.129m and Rs3.249m, up by Rs400,000 and Rs300,000.

City 1.5L CVT, 1.5L City Asp MT, and 1.5L Asp CVT now carry new prices of Rs3.446m, Rs3.579m, and Rs3.749m, showing a jump of Rs295,000-300,000.

Read more: Hyundai increases car prices in Pakistan after govt imposes taxes

After a jump of Rs390,000, BR-V CVT S is now priced at Rs4.079m. The new prices of Honda Civic 1.5L Turbo M-CVT, Oriel 1.5L Turbo M-CVT, and RS 1.5L Turbo LL-CVT are Rs5.399m, Rs5.649m, and Rs6.499m, up by Rs. 300,000, Rs. 250,000, and Rs. 350,000.

The company increased the prices due to cost pressures and adverse rupee-dollar parity. As the rupee continues to decline against the US Dollar, imported raw materials have become more expensive for the manufacturers. Therefore, Honda passed on this impact to the market.

“Keeping in view the increase in FOREX, shipping costs and raw materials, it is unavoidable for HACPL to maintain the current retail prices and we compelled to pass on the part of this impact to the market,” the notification read.

Important to note, the new prices will be effective on current backorders and orders booked from March 26 onwards.

Car prices in Pakistan go up!

The increase in Honda’s car prices was expected. Owing to the current depreciation of the rupee, few companies already increased their prices, leading to more companies jumping on the bandwagon.

Last month, Lucky Motor Company Limited (LMCL) increased car prices. It was the second time in 40 days, LMCL raised the prices of Kia’s best-selling vehicles. Similarly, this week, Indus Motor Company jacked up prices of its entire line-up with the increase going as high as Rs. 1.257 million.

Therefore, given the trend of cost pressures, other companies were also expected to increase car prices. Honda has now raised the prices, however, there are predictions that Suzuki and Hyundai will do the same.

Read more: LMC increases prices of KIA cars again!