Days After the Previous Hike, Honda Revises Prices for All Its Cars Again

Honda Atlas Cars (Pakistan) Limited has revised the prices of all its cars in light of the government’s revision in FED in the fiscal budget 2019-2020 which came into effect from 1st July 2019.

The government recently introduced fresh rates of Federal Excise Duty (FED) rates on all categories of cars and these were beneficial for cars with engine capacity of 1700CC but resulted in additional tax on all cars below this category. The following slabs of FED have been announced in the fiscal budget:

  • 2.5% FED on cars up to 1000 cc engine displacement
  • 5% FED on cars between 1001 cc and 2000 cc engine displacement
  • 7.5% FED on cars above 2001 cc engine displacement

The FED before this was applied at a flat rate of 10% on cars with an engine capacity of 1700CC and above; the policy was met with skepticism and a mixed bag of emotions as the prices of cars below 1700CC were set to rise.

There was doubt that manufacturers would go through with decreasing the price as the devaluation of the rupee this year had led carmakers to increase their prices multiple times but Honda Atlas is one of the first companies to revise their prices which includes a decrease in their models that have an engine capacity of 1700CC and above.

The company has issued a notification in this regard and it explicitly stated that the revision is due to the changes made by the government in the FED and some lesser impact of Forex.


  • Now cars are getting out of range for middle class income group upto 1300cc engine capacity…

  • Yeah increasing price for the cars with lower engine capacity for medium-sized buyers and decreasing price for the cars which can only be sought by the elite! Am I the only one who see Honda losing its market share?

    • No you are not the only one. This is a fact but it is slow. In Pakistan (due to lack of policy/lack of policy endorsement) Honda is only focusing on it’s sales not on quality and new innovation e.g., from long Honda is not launching City new mode in Pakistan even not the hybrid version grace (that is a compulsory requirement of Pakistan). Honda is getting return in two ways, 1 ) Achieving high sales targets of old versions, also increasing prices 2) Achieving mind thrust of new model in Pakistanis and by this people will be ready to buy new version at highest price as compared to its original worth. Behind this Honda is not the only the reason, we are also part of it. We were buying Old CITY and will continue with new prices as well. City sale is still on top, one of the reason behind halt on launching new model.
      Same for Suzuki.. new alto worth appx 13Lac without registration and it is 660cc. No one asked from Suzuki before it’s launch?

  • Its not Honda its government. Government has increased the fed for the cars below 1700cc.

    • Ru sure the current prices are justified as per production quality form Honda? by this increase in price who is the beneficiary? Honda has pre booking for approx. next one year.. 20% are with dealers to carry fwd own sale.. who will get this extra money?

  • Unjustified increase in prices must be reversed and these car mafia companies must be audited to determine their actual dependence on foreign parts and what percentage of car price is affected by devaluation and how much prices were increased by these assemblers in real.

  • Gov increased tax …yes.. not people’s government for sure but.. All load is on the consumer weather you buy any thing.. thee businessman doesn’t take any load.. And for his hefty shares he just adds up to the consumers pocket.

    • This is not how the market works. The suppliers only alleviate the prices when they see the purchasing power of the buyer. They know they will still make billions in profit.

  • the fact is the imports have halted. now the local manufacturers can further monopolize the market by asking for whatever price they want. and we the ppl are stupid enough to keep buying low quality, low safety cars. same goes for toyota and suzuki. 20lac for a suzuki cultus auto lol. this needs to be regulated. dollar is same for all then why is honda inceasing civic by 4 lac, corolla by 8 lac, suzuki by 6 lac? whos going to hold these companies accountable?


  • >