The big name of the automotive industry, Honda Atlas Cars Ltd (HACL) raised prices of Honda Civic and City by Rs100,000 and BRV by Rs20,000 on Tuesday, following the devaluation of rupee against dollar.
The other names in the automotive industry, Pak Suzuki and Toyota Corolla, had raised numbers last year:
Well, Honda wasn’t as quick as Pak Suzuki and Toyota Corolla who had raised the prices of their cars last year.
Pak Suzuki raised had raised the prices earlier in January by Rs10,000-20,000 and by another Rs20,000-50,000 this month.
December was chosen by Toyota Corolla, who increased the rates on a number of models twice – first in December 2017 by Rs 50,000-60,000 and then in March by Rs100,000-300,000.
Cars with local parts will have higher prices in Pakistan’s automotive industry
According to Dawn, ‘the cars arriving in the next one to two years by new entrants with the low proportion of local parts would be more vulnerable to price increase than the existing car assemblers, despite higher localisation’.
This means that new automotive industry like, KIA SUV, which successfully managed to create hype before its launch, will be benefited beyond expectations.
This devaluation of rupee and launches of international automotive giants will have bad impacts on players of our local automotive industry.
Whereas this news is great for the newly launched and about to launch international automotive industries, the path isn’t clearly clear for them yet.
KIA Sportage isn’t the only international automotive industry planning to step into Pakistan:
Many international automotive industries, who weren’t in the game for many years, are planning to come back to Pakistan.
The French automaker, Renault and the Korean automaker, Hyundai are the two automotive companies planning to re-launch itself in Pakistan, this year.
Furthermore, the famous also Volkswagen showed its desire to launch in Pakistan.