Honda City prices reduced by up to Rs140,000

WEB DESK: Honda Atlas announced on Friday a substantial price reduction of up to Rs140,000 on two variants of its popular Honda City in response to market dynamics.

This move mirrors a similar adjustment made by the Indus Motor Company for its Toyota Yaris vehicles. The revised pricing for both Honda vehicles will take effect on March 15.

Honda City MT 1.2L will now be priced at Rs4.649 million, reflecting a reduction of Rs50,000. Furthermore, the price of the City CVT 1.2L has been lowered by Rs140,000, resulting in a new price of Rs4.689 million.

Earlier, Toyota had announced price cuts across its Yaris sedan lineup, ranging from Rs73,000 to Rs133,000.

Both Honda and Toyota’s initiatives are direct responses to the recent imposition of a 25 per cent sales tax on automobiles priced above Rs4 million.

Pakistan’s automotive sector has been grappling with numerous challenges, including high interest rates and escalating production costs.

These factors have contributed to an upward trend in car prices, consequently dampening sales.

During the initial eight months of fiscal year 2023–24, total car sales plummeted to 59,699 units, marking a sharp decline of 41 per cent compared to the corresponding period in the previous year, which saw sales of 101,426 units.

Fiscal year 2022–23 also witnessed a significant downturn, with sales dropping by 56 per cent to a mere 126,879 units.

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