In the light of recent development in the automobile industry of Pakistan, a massive increase in car prices has been witnessed. Honda, Toyota, Master Changan Motors Limited (MCML), Suzuki and other companies have increased the rates of new cars in Pakistan due to the sharp drop in the value of the Pakistani rupee against the US dollar. The motorbike community is also suffering from the higher rates of bikes in the country.
Other than that, some automobile companies have decided to move out of the country. This means that Pakistan will soon be deprived of some assembly lines that run B2B and B2C outlets in the state.
Car Prices and Currency Depreciation
Over the past several weeks, the value of the Pakistani rupee has lost its weight repeatedly against the USD. Today 1 USD is RS237.750 in Pakistan, and the prices of almost everything, including fuel, Raw material, other goods, and car manufacturing items, have increased. Thus, another significant fluctuation in the rates of cars and motorbikes has shocked citizens to their very souls. The car prices of popular brands like Honda, Toyota, and Suzuki are now literally touching the sky.
Revised Rates of Automobile Companies
The car prices of Suzuki, along with all of their variants, have increased. These cars include Alto, Wagon R, Cultus, Bolan, Swift, and Ravi.
Honda 11th Gen Civic
The latest addition to the Honda family in Pakistan is the Honda Civic 11th generation. Among other vehicles, the price of the new civic has increased for the fourth time in 2022. The Honda 11th gen civic is the latest and most advanced sedan car in Pak. The car was launched at a price structure between PKR 5.0 million to 6.5 million, including all the variants. However, the top-of-the-line (RS) version currently stands at 8.1 million. Also, the reports predict that the flagship car price will reach RS 1 crore.
Other than that, the cheapest Honda car starts from 4 million now.
Master Changan Motors Limited, MG, and KIA are the companies that have launched some high-profile SUV crossover cars, but consumer car prices have gone way too high. MCML’s Changan was supposed to be a customer-friendly car, but its cost was recently increased up to Rs 1.4 million.
The chart lists all the revised prices of MCML vehicles.
Automobile Industry Crashes in Pakistan
Due to the currency depreciation and high car prices in Pakistan, consumers are reluctant to buy new vehicles. They are even asking for their advanced booking money back from the companies. According to reports, Toyota saw 2 weeks of low production rate in the months of June and July due to import cuts. The company announced to return the advanced they took from customers if they don’t want late deliveries. However, the company is unable to import vehicles and spare parts on time for the consumers. The higher prices is just a temporary setback as more problems are yet to come. Reportedly, if the situation stays the same or gets worse, the company will shut down its production operations.
Suzuki also falls in the same category due to more than 20% loss of currency value and import barriers. The company has already partially shut down its production amid supply chain crises and forex issues.