KARACHI: Honda Atlas Cars Pakistan Ltd on Tuesday raised the price of City by Rs15,000 and Civic by Rs18,000 with immediate effect following a 1 per cent increase in additional duty on imports.

Indus Motor Company last week had also raised the price by Rs15,000-30,000 on different vehicles.

Used car dealers were surprised to see the local industry acting quickly to pass on the impact of import duty hike.

“The industry had not shared the reduction in cost of production on account of 25pc drop in steel prices in the last one year, followed by yen depreciation against rupee and lowering transportation charges owing to drop in diesel prices,” the dealers said.

They said that the increase in duty was negligible and it should have been absorbed by the manufacturers.

Sources recalled that car assemblers had always raised prices whenever yen had appreciated against rupee.

Published in Dawn, December 9th, 2015