Honda Atlas Cars Reduces Prices

Following the appreciation of the Pakistani rupee against the US dollar in recent weeks, Honda Atlas Cars has announced a reduction in car prices by up to Rs 300,000.

This move comes after Toyota’s decision to reduce its car prices, 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. The new prices took effect on October 25.

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.

Factors Affecting Pakistan’s Auto Sector:

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.

Challenges Faced by the Auto Industry:

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.