Pakistan is currently witnessing a surge in car prices since the start of November. Major car companies all announced a sharp increase in prices back-to-back.
The trend began on 9th November when Lucky Motor Corporation Limited (LMCL) increased prices ranging from Rs 228,000-500,000 on locally-assembled and imported vehicles.
The same day, Toyota announced that it will increase the prices of its vehicles by Rs 140,000-580,000. Later on, sources said that Honda Atlas Cars Limited (HACL) too announced a price hike. The company increased prices of Rs 130,000-485,000 on different models of City, Civic, and BR-V.
Currently, there is only one variant of Honda BR-V, which is BR-V i-VTEC S A/T, in Pakistan, which saw an increase of Rs225,000, taking the rate to Rs3,599,000 from the previous rate of Rs3,374,000. The newly launched Honda City price also witnessed a surge of Rs 130,000-195,000. Now it will cost Rs3,369,000 against the old rate of Rs3,174,000.
The price of Honda City Aspire 1.5 CVT raised from Rs 3,180,000 to Rs 3,369,000 in two days. The difference comes to Rs 189,000
— Durdana Najam دردانہ نجم (@durdananajam) November 11, 2021
Sources said Regal Automobile Industries Limited (RAIL) has planned to jack up prices by Rs200,000-400,000 on different models this week.
According to reports, auto prices have seen a sharp increase as assemblers blame rising freight rates, container shortages, expensive raw materials, and falling rupee against the dollar for the latest increase.
Experts further reveal that automobile companies anxiously wanted to increase car prices so they can pass on the impact of higher input costs to the consumers.
Cars to become unattainable for the average Pakistani?
Pertinent to note, Pakistan is also facing an increase in fuel prices. The government last week increased petroleum prices by up to Rs8.14 per liter. As a result, prices of many commodities increased as well.
President of Pakistan Dr. Arif Alvi has said that price hike has become a global issue and prices of essential commodities increase with rising in prices of fuel and appreciation of dollar’s rate against rupee.
With car prices surging, along with fuel prices, Pakistanis may soon have to shift to motorcycles as they are still a comparatively cheaper method of transportation.