The Pakistani automobile market is witnessing another wave of price hikes, and this time it’s Honda Atlas Cars making the announcement. After recent increases from Kia Lucky Motors, Hyundai Nishat Motors, Changan Pakistan, and Pak Suzuki Motor Company (PSMC), Honda has now followed suit. The company has officially released a price hike circular, confirming that new provisional prices for all its locally assembled CKD models will be effective from July 1, 2025.
Why Are Honda Prices Increasing?
The latest price surge is mainly due to the newly introduced NEV (New Excise Value) levy, which is part of the Finance Act 2025-26 passed by the Government of Pakistan. This new levy has increased the tax burden on car manufacturers, which, combined with other economic challenges like the depreciation of the Pakistani Rupee (PKR), rising raw material costs, and high freight charges, has left manufacturers with limited choices. Honda Atlas has explained that although they had previously tried to absorb such cost escalations to protect their buyers, the current tax conditions are beyond their control, forcing them to pass on the impact to consumers.
Breakdown of Honda’s New Car Prices
Here is a detailed look at the revised prices for some of Honda’s top models:
-
Honda City 1.2 MT: Increased from PKR 4,649,000 to PKR 4,696,000 — a rise of PKR 47,000.
-
Honda City 1.2 CVT: Now PKR 4,737,000, up by PKR 48,000 from its previous price of PKR 4,689,000.
-
Honda City Aspire CVT: Saw a jump of PKR 120,000, reaching PKR 5,969,000 from PKR 5,849,000.
-
Honda BR-V 1.5 CVT S: Priced now at PKR 6,429,000, up from PKR 6,299,000 — an increase of PKR 130,000.
-
Honda Civic Oriel: Witnessed a substantial rise of PKR 175,000, with the new price at PKR 8,834,000.
-
Honda Civic Turbo RS: The price increased by PKR 201,000, now costing PKR 10,100,000, compared to the earlier PKR 9,899,000.
-
Honda HR-V (VTI and VTI S): New prices are yet to be officially announced.
Important Terms and Conditions
Honda has outlined some key terms related to the new pricing:
-
These new prices apply to all invoices issued on or after July 1, 2025.
-
Customers with back-orders as of June 30, 2025, will also be charged the new prices.
-
All new orders placed from July 1, 2025, onward will follow the revised rates.
-
Any changes in taxes or duties after the order but before delivery will be borne by the customer.
-
Prices are exclusive of freight and withholding tax, which will be charged separately.
-
All prices are provisional and subject to change without notice.
How Other Brands Are Reacting
Interestingly, not all automakers have followed the same route. Sazgar Engineering and MG Pakistan, for example, have absorbed the impact of the NEV levy, especially for the MG HS Trophy, choosing not to pass the burden onto customers. This makes their offerings slightly more appealing to price-conscious buyers.
What This Means for Car Buyers
The price hikes across multiple brands — including Kia, Suzuki, and now Honda — signal a broader trend in Pakistan’s struggling auto industry. Buyers are now faced with difficult choices: either act quickly before further price increases or explore more cost-efficient options such as smaller vehicles or imported used cars.
In conclusion, while the price increase by Honda is justified from a business standpoint, it puts additional pressure on consumers who are already battling inflation and economic uncertainty. Buyers planning to purchase a new Honda may need to reevaluate their decisions based on budget, timing, and alternative options in the market.