Honda Atlas Cars has followed the price reduction trend set by Indus Motor and Pak Suzuki Motor, thanks to the recent rupee appreciation against the dollar.
Analysts, however, do not see the reduction by auto players consistent with the price hike announced by them last month.
“Like other players, Honda slashed car prices to pass on the impact of rupee appreciation, which reduced their cost of production,” said auto sector analyst Arsalan Hanif.
The rupee, after gaining 11.62% in 11 consecutive working days, fell 0.46% against the US dollar on Wednesday, closing at Rs214.88, according to AHL Head of Research Tahir Abbas.
Honda BR-V CVT S is now available at Rs4.939 million compared to the previous price of Rs5.299 million, a drop of Rs360,000.
The Japanese auto company reduced the price by Rs280,000 to Rs3.769 million for Honda City 1.2L Manual from the previous price of Rs4.049 million. Second variant Honda City 1.2L CVT will now cost Rs3.899 million compared to Rs4.199 million earlier, a decrease of Rs300,000.
The company revised the price of third variant Honda City 1.5L CVT to Rs4.139 million against earlier Rs4.439 million, a difference of Rs300,000.
“Honda Car slashed prices on the back of rupee appreciation against the US dollar,” said AL Habib Capital Markets auto analyst Asad Ali.
The recent rise in car prices was partly reversed since it was based on a rupee-dollar parity of Rs235, while the preceding increase, in April 2022, was based on a rupee-dollar parity of Rs185.
Published in The Express Tribune, August 18th, 2022.
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