Tag: #Honda

  • Auto loans in Pakistan increased by Rs41 billion in Dec 2020

    Following a decrease in the interest rates and the revival of business after the pandemic-induced lockdown, auto loans increased by 19 per cent, reaching Rs41 billion in December 2020.

    The figures issued by the State Bank of Pakistan show that the car loans in December 2019 were recorded at Rs219 billion, which increased to Rs256 billion during the corresponding period in 2020.

    It is also reported that the growing demand for 1300cc passenger vehicles is the key factor behind the surge in these loans.

    According to media reports, the newly launched Toyota Yaris is responsible for the surge in car loans. Toyota Yaris has outsold Honda City and Civic combined.

    Another key driver of the increase in loans is the lowered interest rates. The State Bank of Pakistan had reduced the interest rates by 625 basis points to 7 per cent in 2020. Additionally, a decrease in the rates of soft interests meant lesser instalments for car financing programmes.

    It seems like a car price hikes by the automakers in 2020 had the least impact on the rising demand for cars. With new players entering the market before the expiration of the Auto Development Policy (ADP) 2016-2021, the demand for cars is likely to surge even more.

  • Honda reveals 11th Gen Civic prototype

    Honda reveals 11th Gen Civic prototype

    Honda has finally revealed its new Civic 2022 in prototype form, featuring many design changes on the exterior and interior of the car.

    Along with a change in design, the Japanese carmaker also made multiple tech additions to the new model with a range of safety features in the eleventh generation of the car.

    A prototype of cars is usually the early samples designed to test a concept or process. The company said the model showcased recently is a prototype; most of the highlights will make their way into the actual car set for a launch next year.

    Civic will be available in four models

    The company has confirmed that the new Civic will be available in four models — a hatchback, executive sedan, performance-oriented Si model, and high-performance R model once it hits the production line.

    Although the company hasn’t revealed the new Civic’s interiors but noted that the car would get a modern dashboard layout compared to the current model. The car will feature a nine-inch touchscreen infotainment system and a fully digital instrument panel, and the safety suite will include multiple airbags and several driver-assistive technologies.

    All versions will have turbocharged 4-cylinder engines. The sportier versions shall get a manual gearbox option as well.

    There are no reports of the car being introduced in Pakistan anytime soon, but as is custom with Honda Atlas, the Civic is usually introduced here a year or so after it is launched in the international market. Whether or not that will be the case for the 11th gen Civic, is yet to be seen.

  • ‘Rising prices, higher taxes’: Honda halts production in Pakistan

    ‘Rising prices, higher taxes’: Honda halts production in Pakistan

    As car sales drop amid rising prices due to the imposition of higher taxes and rupee depreciation, Honda Atlas Cars Pakistan (HACP) has halted production in the country for 10 days, Dawn reported Saturday.

    According to reports, HACP shut down its plant for 10 days as its inventories piled up to 2,000 units while Indus Motor Company (IMC), which produces Toyota models in Pakistan, has also decided to stop car production for eight days, two days every week, during this month.

    The report quoted HACP and IMC executives as saying that their decision to scale down production during July was informed by plummeting sales in the first 10 days of the month.

    “Our inventories from the last month and the first 10 days of July have grown rapidly because of the steep increase in car prices after currency devaluation as well as the imposition of Advance Customs Duty (ACD) on all our imports and Federal Excise Duty (FED) on assembled cars,” an HACP senior executive said.

    “It has left us with no option but to shut down the plant to cut production. If the present trend holds, we expect our sales to drop to less than 30,000 units this business year (April 2019-March 2020) from over 48,000 units last year.”

    An IMC official also gave the same reasons for “observing eight no-production days” during July. The executive, however, did not give the size of inventory the company has built so far, saying the production cuts could increase next month if sales do not pick up.