Daily Times

KARACHI: With General Elections in Pakistan less than a month away, all of local auto assemblers in the country are on a price-hiking spree citing dollar-rupee exchange rates’ fluctuation.

Major auto makers like Indus Motors Company (Toyota) and Pak Suzuki Motor Company (PSMC) have already announced price hikes for their entire range of models in the market while Honda Atlas Cars (Pakistan), on Monday, has also announced price hike for its different variants in the range of Rs 35,000-100,000.

The Company (Honda) has increased its cars’ price third time this year. It had raised prices in January 2018 by Rs 50,000-60,000 and increased its variants’ prices in the range of Rs20, 000-100,000 in March 2018 as well citing rupee devaluation. In total, Honda Pakistan has increased its variants’ price in the range of Rs 100000-2, 60, 000 in six month period of 2018.

Similarly, in the last week of outgoing month, Indus Motor Company, the makers of Toyota cars in Pakistan, has increased its vehicle prices for the third time this year, ranging from Rs50, 000 to Rs250, 000. PSMC has also announced third price hike of the ongoing year in June 2018 in the range of Rs20, 000-30,000.Recently, Al-Haj FAW Motors has also has increased the prices of its vehicle.

All Pakistan Motor Dealers Association (APMDA) Chairman HM Shahzad has termed these price hikes totally unfair saying that there is no system of checks and balances on local auto assemblers in the country.

He was of the view that even with high depreciation of rupee three price hikes in a year by all three major car assemblers could not be justified. He said the IMC has increased price of one of its variants by Rs 300000, how can one rationalize such massiveincrease, he questioned.

In Pakistan, political parties spend lavishly on election campaigns, while the massive growth in car sales have already been witnessing this year.

Honda Pakistan, in a notification to its authorized dealers, said owing to negative exchange rate impact and increases of 1 percent additional import duty, the company is compelled to pass on a part of this impact to customers w.e.f of 2nd of July.

According to company, new rates will be applicable on full payments orders except those orders having delivery due month till 31st July 2018 and their balance payment is received latest by 30th June 2018. New price will be applicable on cars in consignment stock if inviced after 30th June 2018.

All those orders booked before 31st December 2017 and their balance payment is received till 30th June 2018 will be entertained on previous price prices, said Amir Nazir, General Manager Sales and Marketing Division at Honda Pakistan.

Honda has increased price of its Civic and City variants by Rs100,000 each and the BR-V by Rs35,000.