KARACHI: Honda Atlas Cars Ltd (HACL) on Friday reduced the prices of City MT 1.2L and City CVT 1.2L by Rs50,000-140,000. After the price cut, the new prices of MT 1.2L and CVT 1.2L models are Rs4.649 million and Rs4.689m, respectively.

The company in its letter to the authorised dealers had not given any reason for the price drop despite the increase in general sales tax (GST) from 18pc to 25pc on locally assembled vehicles if their invoice price (excluding sales tax) exceeds Rs4m for the vehicles falling under chapter 87.03 of the Pakistan Customs Tariff.

A day back, Indus Motor Company (IMC) had cut the prices of various Toyota Yaris models by Rs73,000-133,000, while a few days back Pak Suzuki Motor Company (PSMCL) had increased the prices of Suzuki Swift GLX CVT by Rs304,000.

It is hard to say whether the price cuts made by IMC and HACL in Yaris and City are for luring buyers to achieve their sales targets or if there are any other reasons.

A dealer said the auto sector, in general, is in turmoil and price cuts in cars are bait to increase sales volumes amid expensive auto financing due to unprecedented interest rates and shrinking purchasing power of consumers due to high inflation.

Published in Dawn, March 16th, 2024