Honda Atlas Cars has announced a reduction in its car prices. This decision comes in the wake of the recent appreciation of the Pakistani rupee against the US dollar.
The price cuts, which took effect on October 25, 2023, have seen reductions of up to Rs 300,000 on various models. The move follows a similar decision by Toyota, another major player in the auto industry, aligning with the current forex situation.
Specific Price Reductions for Honda Cars:
The new price adjustments for Honda cars in Pakistan include a reduction of Rs100,000 for the cheapest Honda car, the City MT 1.2L, now priced at Rs4.699 million. The top variant, the City’s Aspire CVT 1.5L, is now available for Rs5.849 million after a cut of Rs130,000.
Impact on Honda’s Most Expensive Car:
With the reduction in prices, the cost of Honda’s most expensive car, the Civic RS1.5L, has fallen below Rs10 million, experiencing a decrease of Rs300,000. The current price stands at Rs9.899 million, making it more accessible to potential buyers.
The auto sector in Pakistan heavily relies on imports, and the recent surge in car prices was largely attributed to the Pakistani rupee’s record depreciation against the US dollar. However, the currency’s recent appreciation, along with government actions against smuggling and hoarding, has contributed to the reduction in car prices.
Apart from the impact of currency depreciation, the auto sector in Pakistan was also affected by the previous government’s restrictions on imports to bolster foreign exchange reserves. High finance costs, a significant increase in car prices, and a surge in taxes have collectively dampened consumer demand, leading to a substantial decline in car sales during the first quarter of FY24.
The recent price reductions by Honda Atlas Cars and other manufacturers are expected to stimulate consumer demand and potentially lead to a recovery in car sales.