KARACHI: Honda Atlas Cars Pakistan has increased prices of its variants by up to Rs100,000, with rupee devaluation denting the company's cost of production.
The rate hike is the third made by the company this year, each following the rupee's plunge against the US dollar. Indus Motor Company - the maker of Toyota Corolla - and Pak Suzuki have also increased car prices three times since rupee started its downward journey 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. They will now be priced at Rs2.6 million and Rs 2.75 million, respectively. Rates of City's 1.5L Aspire MT and AT have been increased by Rs50,000, pricing them at Rs1.94 million and Rs2.08 million, respectively.
Indus Motor jacks up car prices for third time this year
The BRV variants have become costlier by Rs 35,000. Other variants and models have also seen a rate hike by as much as Rs30,000.
"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 impact of the rupee devaluation," said Farheen Irfan, analyst at Elixir Securities.
Amir Nazir, general manager sales and marketing division Honda, in a notification to dealers announced the price hike and added that it was due to the negative exchange rate impact and 1% additional import duty, which forced the company to pass on the impact to consumers with effect from July 2.
Getting expensive: Pak Suzuki to raise car prices for third time this year
Buyers, who have a delivery date of July 31 and have paid their balance payment by June 30, will not be charged the increased price. The new price will be applicable on cars invoiced after June 30.
Pakistan's auto sector is heavily dependent on the import of completely knocked down units (CKDs).
A change in the exchange rate means a higher cost for the local auto industry that still relies on imported components for assembly.
The rupee has plunged close to 13% since December 2017 as a widening current account deficit and depleting foreign exchange reserves create a headache for Pakistan's economic managers.