Tag: #Honda

  • Suzuki to halt car and bike production in January 2023 due to parts shortage

    Suzuki to halt car and bike production in January 2023 due to parts shortage

    Following in the footsteps of Toyota Indus Motor Company (IMC), Pak Suzuki Motor Company (PSMC) has said that its production facility will be totally shut down from January 2 to 6, as a result of a ban on the import of auto parts.

    The automaker, in a notice sent to the Pakistan Stock Exchange (PSX), said that the State Bank of Pakistan (SBP) has introduced a mechanism for prior approval for import under “HS code 8703 category (including completely knocked down – CKDs) vide circular No.09 of 2022 dated May 20, 2022”.

    “Restrictions had adversely impacted clearance of import consignment which resultantly affected the inventory levels.”

    “Therefore, due to shortage of inventory level, the management of the company has decided to shut down its plant for the automobile as well as a motorcycle for the period from January 2 to January 6, 2023,” PSMC said.

    It is important to note that this is not the first time that Suzuki, one of the country’s top-selling automakers, has closed a production facility. Several shutdowns have already been announced in 2022 by some well-known automakers, including Honda and Toyota.

    PSMC is involved in the assembly, progressive manufacturing, marketing, and distribution of Suzuki vehicles, pickup trucks, vans, 4x4s, motorcycles, and associated spare parts.

    According to Geo, due to the central bank’s limits on the opening of letters of credit (LCs) as a result of a severe liquidity crunch, Pakistan’s car sector, which is heavily dependent on imports, is currently experiencing serious difficulties.

  • Pakistan’s auto sector witnesses 39% increase in car sales in November

    Pakistan’s auto sector witnesses 39% increase in car sales in November

    According to data from the Pakistan Automotive Manufacturers Association, sales of passenger cars increased slightly in November 2022 compared to the same month in 2021.

    Analysts anticipate more improvement in the upcoming months due to the better availability of raw materials for the automakers following an increase in the issue of letters of credit. In percentage terms, the increase was 39 per cent month over month.

    According to The News, sales of all other models of cars, lorries, buses, tractors, jeeps, pick-ups, three-wheelers, and two-wheelers, other than the Suzuki Alto, decreased in November 2022 compared to November 2021.

    On the other hand, compared to the 90,303 units sold during the same period last year, car sales fell by 39 per cent in the first five months of FY23 to 55,144 units.

    According to PAMA data, there were 15,444 passenger car sales in November 22 as opposed to 15,351 in the same month last year, a rise of 0.60 per cent or 93 units. In November 2022, sales jumped from 11,129 units sold in October 2022 by 39 per cent, or 4,315 units.

    Sales of cars with 1300cc displacement or more were reported at 5,831 units during this time period, a 28 per cent decrease from the 8,102 units sold during the same period the previous year.

    Compared to 3,641 units sold during the same month last year, 1,854 units of 1000cc automobiles were sold in November 2022 (1,136 units of the Suzuki Cultus and 718 units of the Suzuki WagonR).

    Sales of sub-1 000cc cars were 7,759 units, an increase of 4,150 units, or 115 per cent, over the 3,609 units sold the previous year.

    Sales of the new Suzuki Alto were astounding, reaching 7,255 units, a 282 per cent increase over the 2,420 units sold the year before.

    Bus and truck sales dropped from 532 units in November 2021 to 342 units in November 2022. Jeep and pickup truck sales decreased from 3,363 vehicles sold during the same period last year to 2,947 units sold in 2022.

    Tractor sales, on the other hand, decreased from 4,617 units in November of last year to 1,240 units last November. In November 2022, 110,529 motorbikes and rickshaws were sold, compared to 166,731 in the same month the previous year.

    According to a Topline Securities study, Pakistan’s overall automobile sales were roughly 20,000 units, up 35 per cent month-over-month, mainly because CKD parts were more readily available in November 2022 than they were in October 2022, which increased output.

    In November 2022, Pak Suzuki reported a growth of 55 per cent month over month to 12,400 units, followed by Honda Cars’ increase of 38 per cent month over month to 1,973 units.

  • Pakistanis buying 47% fewer cars due to rising prices

    Pakistanis buying 47% fewer cars due to rising prices

    Despite an increase from month to month in October, the total number of cars sold fell by 47 per cent to 39,700 units in 4MFY23 from 74,952 units as a result of increased prices, restrictions on auto financing and part imports, and high interest rates.

    However, the number of cars sold in October increased to 11,129 from 9,213 in September, a significant decrease from the 17,413 sold in October 2021.

    Assemblers have been allowed to hand over automobiles after the release of auto parts from the port as a result of the State Bank’s decision to increase the import quota, which led to a recovery in car sales as well as production in October.

    Honda Civic/City sales decreased to 6,416 units in 4MFY23 from 10,444 units during the same period in FY22, while Toyota Corolla and Yaris sales significantly decreased to 8,253 units from 19,214 units. Sales of the Suzuki Cultus and WagonR decreased from 11,454 to 6,779 units to 2,952 and 2,181 respectively. Sales of the Suzuki Bolan and Alto were unchanged at 1,469 and 13,464 units, compared to 4,012 and 20,773 units in 4MFY22.

    Jeep and pickup sales decreased by 45 percent, from 14,969 units in the same period last fiscal year to 8,234 units in July-October FY23.

    Additionally, the total number of tractors sold decreased by 47 per cent, from 17,386 units to 9,258 units, indicating a decline in agricultural activity.

    Compared to 2,011 and 184 units sold in 4MFY22, trucks and buses showed sales of 1,109 and 210 units, respectively.

    Sales of two and three-wheelers in the country fell dramatically, from 629,212 units in the same period last year to 412,111 units in the first four months of the current fiscal year.

  • Honda Pakistan to launch the long-awaited HR-V tomorrow

    Honda Pakistan to launch the long-awaited HR-V tomorrow

    The long-awaited all-new Honda HR-V will finally make its formal debut on Friday, according to Honda Atlas Cars Limited (HACL), which recently teased the crossover in a Facebook post and confirmed the unveiling.

    Honda Pakistan will offer two versions of the HR-V, the VTi and VTi S. The 1.5-liter 4-cylinder naturally aspirated (NA) petrol engine in the base model will produce 119 horsepower and 145 Nm of torque. A 1.5-liter turbocharged 4-cylinder petrol engine with 179 horsepower and 240 Nm of torque will power the second model.

    According to details, the Honda HR-V VTi is anticipated to cost between Rs6.3 and Rs6.5 million. The top variant would cost approximately Rs6.7 million.

    If this pricing is accurate, the Honda HR-V will be a fierce competitor for crossover SUVs that are already on the market. As Pakistani car buyers may favour a crossover over a pricey sedan, sales of Honda Civic and crossover SUVs from other automakers could also have a little impact.

    The sources have also stated that because bookings would begin immediately after the launch, the delivery of this car will begin in November 2022.

    Here are the features that the impending crossover may offer:

    • Traction control 
    • Hill start assist 
    • Stability control  
    • Dual tone side view mirrors + roof
    • Body coloured & black front grille
    • Automatic climate control 
    • Honda Sense
    • Four airbags

    For those who are unaware, the Honda HR-V is not a brand-new sight in Pakistan; local auto dealers have been offering hybrid versions of this vehicle, which are originally imported from Japan.

  • Honda introduces the CG125 2023 ‘new model’ and it has nothing new

    Honda introduces the CG125 2023 ‘new model’ and it has nothing new

    Due to its durability and powerful engine, the Honda CG125 has been one of Pakistan’s best-selling motorcycles for decades. Despite the fact that the manufacturer has not modified its shape or added any major or small modifications to it in nearly two decades, customers continue to buy it.

    Atlas Honda recently announced a “new model” of the Honda CG125, despite the fact that it has nothing new to offer local buyers. The bike has the same body, motor, tyres, handles, and everything else; the only thing that has been changed is the stickers that are pasted on the fuel tank and side covers.

    Some of the alterations to the engine include a slightly altered head and cylinder, a slightly revised combustion chamber design, a new gear-oil pump drive, a new gear timing drive, and reinforced engine mounting points. These improvements may allow the Honda CG125 to perform slightly better than the previous iteration, but the change in performance may be so minor that a layperson would be unable to tell the difference.

    Read more: How to apply for government jobs in Pakistan

    The bike manufacturer has not raised the price of its bikes in a long time, so the CG125 standard and CG125 SE are priced at Rs179,900 and Rs210,900, respectively.

  • Toyota to temporarily suspend production in Pakistan

    Toyota to temporarily suspend production in Pakistan

    The impact of the current economic crisis has reportedly forced Toyota Indus Motor Company (IMC) to halt production in Pakistan.

    In accordance with the information, Toyota IMC will reimburse clients who paid deposits for reservations since the business is unable to complete such orders.

    Toyota IMC previously cited restrictions on the State Bank of Pakistan’s (SBP) approval of Letter of Credit (LCs) for the import of Completely Knocked Down (CKD) kits as one of the main causes of production interruption, which also resulted in a backlog of orders.

    Customers who are unable to wait for delayed deliveries will receive their advance payments back from Toyota IMC, and the company plans to disclose this by the end of the month.

    Fans are now speculating as to whether Toyota IMC intends to entirely cease operations in Pakistan in light of the recent situation.

    The issue might only last a short while because Toyota IMC will refund customers for purchases they have already placed, but it won’t cancel orders if the client accepts a delayed delivery of the vehicle and is willing to pay an extra amount to cover the exchange rate changes.

  • Sony, Honda form joint venture to build electric cars together

    Sony, Honda form joint venture to build electric cars together

    Sony and Honda have formally signed a joint venture agreement to form an electric vehicle (EV) manufacturing company. The new business is named “Sony Honda Mobility Inc.,” with Sony taking precedence over the proven automaker.

    Honda executive Yasuhide Mizuno has been named chairman and CEO, and Sony executive vice president Izumi Kawanishi has been named president and COO.

    As previously stated, the partnership will make use of “Honda’s cutting-edge environmental and safety technologies, mobility development capabilities, vehicle body manufacturing technology, and after-sales service management experience,” as well as Sony will contribute “imaging, sensing, telecommunications, network, and entertainment technologies” in the meantime.

    Honda is lagging behind competitors in EV progression, with the Honda E as its only electric vehicle, but it has recently accelerated its plans. It announced a partnership with GM earlier this year to co-develop a series of affordable electric vehicles based on a global architecture and GM’s Ultium battery technology. Honda and Acura SUVs are expected to be available in North America by 2024.

    Honda also announced last year that by 2040, it will have converted its entire vehicle lineup to electric and fuel-cell vehicles. It will invest $40 billion and launch 30 new electric vehicles by 2030 as part of this plan.

    Meanwhile, Sony has unveiled not one, but two self-designed electric vehicles, the Vision-S EV and Vision-S 02 electric SUV. It’s unclear how Sony Honda Mobility fits into all of these plans, but we should find out more information soon.

  • Getting a new car? Check out the new advance tax imposed on your favourite vehicle

    Getting a new car? Check out the new advance tax imposed on your favourite vehicle

    The government has released the fiscal budget for 2022-23, which includes several changes, including a 200 per cent advance tax on the purchase of cars with engine displacements greater than 1600cc for non-filers.

    This decision is likely to possess a considerable effect on the sales of several cars in Pakistan, which have already witnessed multiple price hikes in previous months. The tax amount for non-filers has now been doubled, which will have an influence on new car sales, particularly those with larger engines.

    The advance tax will now be applicable to several famous vehicles that have dominated the auto industry for years now from well-known manufacturers, including old players like Honda and Toyota, as well as new players like Hyundai, Kia, DFSK and BAIC.

    Taxes for filer and non-filer

    Toyota Corolla Altis Grande, 1800cc, ranges from Rs4,499,000-4,859,000, Tax for filer: Rs150,000, Tax for non-filer: Rs300,000

    Hyundai Elantra GLS, 2000cc, priced at Rs4,949,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    Hyundai Tucson, 2000cc, ranges from Rs5,799,000-6,299,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    Hyundai Sonata 2.0, 2000cc, priced at Rs6,999,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    DFSK Glory 1.8 CVT, 1800cc, priced at Rs5,159,000, Tax for filer: Rs150,000, Tax for non-filer: Rs300,000

    Kia Sportage, 2000cc, priced at Rs5,300,000-6,300,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    BAIC BJ40, 2000cc, priced at Rs8,199,000, Tax for filer: Rs200,000, Tax for non-filer: Rs400,000

    Hyundai Sonata 2.5, 2500cc, priced at Rs7,849,000, Tax for filer: Rs300,000, Tax for non-filer: Rs600,000

    Kia Sorento, 2400cc, ranges from Rs6,836,000-7,499,000, Tax for filer: Rs300,000, Tax for non-filer: Rs600,000

    Toyota Fortuner, 2700-2800cc, ranges from Rs9,959,000-12,679,000, Tax for filer: Rs400,000, Tax for non-filer: Rs800,000

    Toyota Hilux, 2800cc, ranges from Rs7,359,000-9,729,000, Tax for filer: Rs400,000, Tax for non-filer: Rs800,000

    Isuzu D-Max V-Cross, 3000cc, ranges from Rs6,600,000-6,960,000, Tax for filer: Rs400,000, Tax for non-filer: Rs800,000

    Kia Sorento V6, 3500cc, ranges from Rs7,499,000, Tax for filer: Rs450,000, Tax for non-filer: Rs900,000

    Local vehicle assemblers are dissatisfied with the new budget, claiming that the government unilaterally raised advance tax on motor vehicles larger than 1,600cc because the industry did not propose it. They claim that the decision is also discriminatory and will reduce auto sales.

    Read more: Energy sector to get a massive portion of the Rs699 billion subsidy

    Advance tax on motor vehicles larger than 1600cc has been doubled, while electric vehicles costing Rs5 million or more will be subject to a 3 per cent tax.

  • 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 Camry after a hike of Rs2 million, priced at Rs23.3 million

    Toyota Camry after a hike of Rs2 million, priced at Rs23.3 million

    Toyota Indus Motor Company (IMC) has announced a massive price hike for all completely built-up (CBU) units offered by the Japanese automaker in Pakistan. The price of Toyota Camry is upped by Rs2 million and will now cost Rs23.3 million

    The only variant of the popular hybrid model, Toyota Prius received a hike of Rs1.26 million and will be sold for Rs14.65 million. Toyota’s crossover SUV, Corolla Cross (top trim) is now priced at Rs13.4 million after a hefty increase of Rs1.17 million in its earlier price.

    Finally, the automatic version of Toyota Rush will now be offered at Rs8.33 million following an increase of Rs710,000.

    Read more: Hyundai Sonata 2.5 will now cost Rs7.85 million

    Toyota IMC’s CBU models, in particular, have become nearly unobtainable following the recent price jump. The government’s main purpose in the auto sector, however, is to discourage CBU imports and increase sales of locally produced vehicles. This means that all other CBUs are on the verge of suffering the same fate as Toyota.