The continuous currency depreciation and the overall condition of the Pakistani economy is having a ripple effect in various sectors.
However, its influence on the local automobile sector is more pronounced. as almost every automaker has hiked the prices of its vehicles. Every company has cited the same reason; the negative impact of falling exchange rate due to the devaluation of the rupee.
Honda Pakistan were the latest to join the spree. The Japanese-Pakistani automaker has increased prices for its cars ranging from Rs 50,000 to 100,000. A further price hike will also take effect from January next year.
Details suggest that the prices of Civic variants have been increased by Rs 100,000. In January, this will go up again by Rs 110,000 taking the total rise to Rs 210,000.
Prices of City variants will be jacked up Rs 60,000 in October, and another rise of 65,000 is expected in January to take the accumulative cost to Rs 125,000.
Similarly, the cost of BR-V is to be raised by Rs 50,000 this month, which will go up to Rs1 00,000 by January next year with another addition of Rs 60,000.
These prices will come into effect from Monday, October 22.
Analysts believe the hike in two phases is aimed to increase the sales in the meantime because buyers,in a bid to avoid the second round of price hikes, will make early purchases.
Honda is not the first to bring up the car prices. Indus Motors and Pak Suzuki Motors have already raised their prices four times this year.
Recently, Indus Motors announced a hike in the range of Rs 50,000 to Rs 175,000 for November and December deliveries. This will rise to a range from Rs 100,000 to 350,000 for next year.
Farheen Irfan, a Research Analyst, says the increase in price will have an impact on demand.
“Auto companies are trying to pass on the impact of rupee devaluation, but the increasing car prices will hurt demand significantly.”