Tag: Crossover

  • Hyundai sedan prices raised up to Rs830,010 amid rupee devaluation

    Hyundai sedan prices raised up to Rs830,010 amid rupee devaluation

    Hyundai Nishat, like other automakers, has announced a major hike in costs for the Elantra and Sonata variants as a result of the unstable local currency and increased tax rates.

    The updated price for the Hyundai Elantra 2.0 is Rs5,499,000 (including CVT) compared to the old rate of Rs4,998,490 after an increase of Rs500,510. The new price for the Hyundai Elantra 1.6 in Pakistan is Rs5,099,000 (including CVT) compared to the old rate of Rs4,341,9900 after an increase of Rs757,010.

    The revised price of the Hyundai Sonata 2.0 is Rs7,899,000 (with CVT) in Pakistan, up Rs830,010 from the previous rate of Rs7,068,990, while the updated price of the Hyundai Sonata 2.5 is Rs5,499,000 (including CVT), down Rs571,510 from the previous rate of Rs7,927,490.

    Due to local currency devaluation, logistical expenses, tax rate increases, and overall economic uncertainty in the nation, Pakistan’s auto sector is struggling.

    During intraday trade today, the Pakistani Rupee (PKR) lost value against the US Dollar (USD) and fell below the Rs238 mark. The local currency was trading at Rs238.50 in the open market at noon after losing more than Rs5.57 in relation to the dollar.

    Major automakers have been compelled by these problems to lower their production goals in Pakistan. While Honda Atlas Cars Limited (HACL) and Kia Lucky Motor Corporation Limited (KLMCL) are switching to single-shift manufacturing schedules, Toyota Indus Motor Company (IMC) has ceased production for an unknown length of time.

  • Honda Pakistan records 40 per cent increase in earnings

    Honda Pakistan records 40 per cent increase in earnings

    Honda Atlas Cars Limited (HACL) concluded the financial year with a 40 per cent increase in earnings, giving investors reason to be optimistic. This is despite several challenges including an ongoing chip shortage, rising commodity prices on overseas markets, hefty freight rates, and the rupee’s depreciation.

    “The result is below our expectations, which is mainly due to higher-than-expected distribution costs and effective tax rate,” Ismail Iqbal Securities auto sector analyst Muqeet Naeem stated.

    The automaker benefited from the fact that demand for four-wheelers remained high despite the problems.

    Honda purchasers appear to be unconcerned with price changes, preferring to purchase their preferred vehicles whenever they want, regardless of how much more expensive they are now than they were only two years ago.

    Prices have continued to rise at a rapid pace. There may also be a sense that prices will continue to rise. However, in a market known for “own money” or high premiums, continued demand despite price increases should not be surprising.

    The earnings per unit sold is a great marker of how quickly prices have risen. Honda sold 57 per cent more automobiles in MY22 than the previous year, which ended in March 21.

    The introduction of a new Civic generation considerably attributed to Honda’s sales growth.

    Not only have imports become more expensive as the PKR has depreciated against the greenback, but inflationary pressures on inputs and rising fuel prices have also contributed to cost increases. Revenue and cost per unit sold have generally increased in lockstep.

    As a result, despite strong demand growth, margins have fallen to 5 per cent.

    Other income, which consists of customer advances, has significantly bolstered the company’s profitability. Other income boosted the bottom line by 47 per cent in MY22, compared to 33 per cent the previous year. This also suggests that demand will continue to rise in the coming months.

    However, as lending rates continue to skyrocket, the company may lose demand from purchasers who plan to finance their vehicles through a bank.

  • Toyota Pakistan to launch first-ever locally assembled Hybrid crossover

    Toyota Pakistan to launch first-ever locally assembled Hybrid crossover

    Toyota Indus Motor Company (IMC), Pakistan’s most prominent automaker, is upgrading its manufacturing plant in preparation for the start of local production of hybrid electric vehicles (HEVs) by 2023.

    Toyota IMC CEO Ali Asghar Jamali revealed that the locally assembled Toyota Corolla Cross will be available in 2023. It is worth noting that this crossover will be the first ever locally assembled Hybrid vehicle by the Japanese manufacturer in Pakistan.

    He stated that the company intends to launch its hybrid crossover SUV in the Rs5 to Rs7 million price range, which may not be possible given the country’s economic and overall situation. Experts predict that the Crossover will be priced between Rs9-10 million.

    Given the current economic situation and the government’s plan to raise car taxes, Toyota IMC will reveal its final price next year.

    Jamali also discussed the company’s plans for overall HEV localization. He stated that Toyota has already invested $100 million in Pakistan to produce HEVs and plans to introduce electric vehicles (EVs) in the future when the country is ready for this technology.

    Jamali emphasised that HEVs are a midterm solution before EVs because Pakistan lacks the infrastructure for the latter, and that converting all cars to HEVs could reduce Pakistan’s oil imports by up to 50%.

    As most of Pakistan’s electricity is produced using fossil fuels, EVs will increase local LNG, coal, and crude oil imports, while investment in improving distribution and creating a charging infrastructure will also be required, according to Jamali.