Toyota and Honda have increased prices for select models in the Pakistani market
Pakistan’s automakers are once again increasing prices, albeit for specific models. Toyota and Honda, two of the larger players in the Pakistani automotive market, increased prices for select models. This may be an indication of a broader price increase in the coming months.
Toyota hikes pickup trucks prices
Generally, the devaluation of Pakistani rupee is cited as the reason behind the price hikes. Toyota increased the prices of different variants of its pickup trucks though it is not only because of the currency devaluation. Recently, a 7.5% FED is to be imposed on the locally manufactured crew-cab variants of pickup trucks, while a 25% FED was slapped on the imported crew-cabs.
Toyota Indus Motors said that the FED was added due to the commercial use of these pickup trucks while in Pakistan, these are often used as luxury vehicles. The price increase was between 413,000 rupees and 492,000 rupees, based on the variant and its current price. This is the second price increase by Toyota. They previously increased prices in April.
Honda raises bike prices
Honda, for the second time in months, raised some of its prices. The price increase was applied to their bikes though the lower and mid-range bikes had nominal increases. However, the higher-end bike prices were raised between 10,000 rupees and 20,000 rupees. The reason Atlas Honda cited for the price hike is the depreciation of Pakistani rupee in recent months. Yamaha, another Japanese motorcycle manufacturer, has raised prices twice in recent months.
The price revisions are applied from July 1st, as per a communication sent to the 3S dealers by Honda Atlas Pakistan. The effects of these price changes on the sales volumes remains to be seen. Most automakers are suffering from lower sales volume owing to the current economic slowdown. Further price hikes may see sales plunge further.