By Moonis Ahmed
KARACHI: Making yen’s appreciation versus rupee the main reason, Honda Atlas Cars has raised the prices of its cars by Rs 30,000 on different models, Daily Times learnt on Thursday.
Honda City manual’s price after this increase has jumped to Rs 1,325,000 as compared to Rs 1,290,000 previously. The prices of Honda City automatic have gone up to Rs 1,456,000 as compared to Rs 1,426,000. It is pertinent to mention that a day earlier Indus Motors Company had also made an increase of Rs 29,000 on some of its Corolla models.
Since January 2010, the rupee has depreciated by 15 percent against the yen (from 0.928 to 1.066). In addition, there have been increases in labour wages and utility prices. All these factors have forced the local OEMs to marginally increase car prices while absorbing most of the costs.
The company may not charge this increase in price to all customers who have booked and paid prior to this announcement and the company will fully absorb the cost impact on orders in hand, a dealer said. The new prices will be applicable on all future orders and deliveries.
All Pakistan Motor Dealers Association Chairman H M Shahzad while talking to Daily Times said, the prices have been increased at a time when the government was thinking to open the import of used cars up to five years old. He said that another manufacturer Pak Suzuki is also likely to increase the prices in a couple of days.
He criticised the decision by car manufacturers to increase prices and said the federal government should take serious notice of the prevailing monopoly of the local car manufacturers. He said that the prices could be reduced if government allows import of up to five-year-old used cars.