KIA Lucky Motors and Honda raised the prices of cars of several of their variants after the federal government increased the federal excise duty (FED) on cars, car dealers have confirmed.
But above all, Honda and Kia have been able to keep the price of some of their variants unchanged.
A Honda dealership said the new Honda car prices came into effect from January 21. The new prices will also apply to all partial and full payment orders placed before January 21.
Prices have been increased by a minimum of Rs77,000 and a maximum of Rs142,000.
City of Honda
The prices of Honda City 1.2L Manual and 1.2L CVT remained unchanged at Rs2.74 million and Rs2.96 million, respectively.
The new price of the Honda City 1.5L CVT has increased from Rs 77,000 to Rs 3.16 million.
Honda City 1.5L Aspire Manual has seen an increase of Rs80,000 and now it will cost Rs3.29 million.
Honda City 1.5L Aspire CVT has seen a boost of Rs85,000 and it is now available at Rs3.47 million.
The Honda Civic 1.8L VTI CVT saw a jump of Rs100,000, taking the price to Rs4.38 million.
The Honda Civic VTI CVT SR will now cost Rs4.52 after an increase of Rs107,000.
The Honda Civic 1.5L Turbo RS has seen an increase of Rs126,000, bringing the price to Rs5.19 million.
The price of Honda BR-V CVT S has increased by Rs90,000. It is now available at Rs3.70 million.
The price of automatic version of KIA Picanto has increased by Rs142,000. Its new price is Rs2.29 million.
The manual version saw a price jump of Rs136,000. The new price is Rs2.18 million.
KIA Sportage Alpha has had a price hike of Rs114,000 and will now cost Rs4.76 million from the old price of Rs4.65 million.
The prices of KIA Sportage FWD and Sportage AWD have increased by Rs126,000 and Rs138,000 respectively. These variants will now sell for Rs 5.27 million and Rs 5.78 million respectively.
KIA Stonic EX and Stonic EX Plus saw a price jump of Rs90,000 and Rs95,000 each. The new prices for the two variants are Rs3.75 million and Rs3.97 million.
However, the prices of KIA Sorento 2.4 AWD and KIA Sorento 2.4 FWD remained unchanged at Rs7.49 million each.
KIA’s new rates went into effect on January 16.
Why have companies raised prices?
Muhammad Sabir Shaikh, chairman of the Pakistan Motorcycle Assemblers Association (APMA), said companies have passed the burden of the increased taxes onto customers.
According to an automotive industry source, KIA has not increased the price of its Sorento variants as it is the lowest-selling car in the KIA lineup, and the company now offers both variants at the same price of 7 Rs.49 million to release the units.
However, the company said it was offering a limited time offer on Sorento, to celebrate reaching 50,000 bookings since entering Pakistan in 2017.
Experts believe that the price reduction may not boost sales to a great extent as people who can afford KIA Sorento would prefer to buy Toyota Fortuner at the same price due to its popularity.
Honda Sales in December
According to data shared by Pakistan Automotive Manufacturers Association (PAMA), Honda sold 4,405 units of Honda Civic and City, which represents a 59% increase on a monthly basis. Honda BR-V sales also rose 27% to 303 units in December.
Sabir Shaikh said that the purchasing power of the upper class has increased due to which they can afford expensive cars. However, the middle class segments have been hit hard due to changes in taxation.
“Potential buyers of Honda and KIA belong to the upper class segments,” he added.