The mini-budget is a bearer of bad news for automakers and car buyers as it has pushed them to increase the prices of locally assembled vehicles. The recent price hikes by Honda, Toyota, and Suzuki are due to the revised Federal Excise Duty (FED) and sales tax rates.
In short, the FEDs on the locally assembled passenger vehicles are:
- Up from zero to 2.5 percent for 660cc to 1000cc vehicles.
- Still 2.5 percent for 1001cc to 1300cc vehicles.
- Increased from 2.5 percent to 5 percent for 1301cc to 2000cc vehicles.
- Elevated from 5 to 10 percent for vehicles over 2000cc.
While the price hike saga is ongoing, here are the possible increases the remaining automakers may make:
United Motors
| Vehicles | Engine Displacement (Cubic Capacity) | Current Price (Rs.) | Expected Price (Rs.) | Increase (Rs.) |
| Bravo | 796 | 1,149,000 | 1,177,725 | 28,725 |
| Alpha | 993 | 1,399,000 | 1,491,334 | 92,334 |
BAIC
| Vehicles | Engine Displacement (Cubic Capacity) | Current Price (Rs.) | Expected Price (Rs.) | Increase (Rs.) |
| BJ40 Plus Honorable Edition | 2000 | 7,685,000 | 7,869,440 | 184,440 |
Ghandhara Isuzu
| Vehicles | Engine Displacement (Cubic Capacity) | Current Price (Rs.) | Expected Price (Rs.) | Increase (Rs.) |
| D-Max Hi-Lander Double Cab Standard | 2499 | 5,700,000 | 5,831,100 | 131,100 |
| D-Max V-Cross M/T | 2999 | 6,600,000 | 6,751,800 | 151,800 |
| D-Max V-Cross A/T | 2999 | 6,960,000 | 7,120,080 | 160,080 |
Note that these are only the expected prices as none of the aforementioned automakers have announced any price alterations yet. However, the higher FED and GST on the imports of CKD kits of all vehicles (except for those with engines displacements between 1001cc and 1300cc) will boost the production costs of these vehicles significantly and it will inevitably impact their prices.
The demand for vehicles is expected to decline massively in the coming days because of these price hikes for small vehicles but the demand for compact cars, midsize cars, and SUVs will probably remain unaffected as the buyers for this segment will not be bothered by the price elevations due to their purchasing power.
Like the automakers, car buyers are also confused by the government’s love-hate relationship with the automotive industry and are now demanding a stable and consistent policy that can benefit both the public and carmakers.
