Honda Car Become Unaffordable for Common People

Honda Car Become Unaffordable for Common People After 4th Huge Price Hike in 2023.

Honda  Car Limited (HACL), the leading automaker in Pakistan, has announced its fourth price hike in 2023, making Honda cars unaffordable for the common people. 

The increasing exchange rate of PKR and USD and the sales tax increase have contributed to the price hike.

Reasons for Price Hike:

The reasons for the price hike are as follows:

Exchange Rate Fluctuation: 

The PKR has depreciated against the USD, making imports expensive.

Sales Tax Increase:

 The government has increased sales tax from 17% to 25% on 1,400cc and above CKD vehicles.


 Inflation is on the rise, causing the cost of production to increase.

Impact on the Industry:

The continuous price hike has led to a decline in sales for Honda car. Affecting the entire automobile industry. 

The local car industry is already suffering from low sales due to the increasing prices and lack of demand. 

The price hike will also have an adverse impact on the employment rate in the automobile sector.

Impact on the Consumers:

  • The price hike has made Honda car unaffordable for the common people. and only ultra-rich individuals can afford them. 
  • The middle-class segment, which was already struggling with the rising inflation. Will face a significant blow due to the price hike. 
  • People who were planning to purchase a new car may have to reconsider their decision or look for cheaper alternatives.

Possible Solutions:

To address the issue of rising car prices, the government can take the following steps:

Reduction in Taxes:

 The government can reduce taxes on the automobile industry, making cars affordable for the common people.

Promoting Local Production: 

Promoting local production can lead to a reduction in import costs, ultimately reducing car prices.

Improvement in Public Transport: 

Improving public transport can reduce the dependence on private cars, reducing the demand for automobiles.


The continuous price hike by Honda Atlas Cars Limited has made Honda car unaffordable for the common people. 

The government needs to take immediate action to address the issue to ensure . The automobile industry does not suffer any further setbacks, and the people can afford to purchase cars.

The continuous price hike due to multiple factors such as tax increase and currency fluctuations has led to Honda car becoming more expensive.

Sales tax increase:

The increase in Sales Tax from 17% to 25% on 1,400cc and above CKD vehicles has also contributed to the high cost of Honda cars.


The high-end features, quality, and reliability of Honda cars make them an attractive choice for many consumers. but these factors also add to their high cost.

Honda car are manufactured using advanced technology. Which requires costly equipment, materials, and resources, resulting in higher production costs and consequently, higher prices.

Brand image:

The brand image of Honda Car as a premium car manufacturer further adds to the high demand and pricing of their vehicles.

The limited production of Honda cars in Pakistan due to various factors .Such as import restrictions and production capacity also adds to their exclusivity and high cost.

Afford rich people:

The increased purchasing power of the ultra-rich individuals who can afford these expensive cars further drives up their demand and pricing.

The high cost of Honda cars also results in the unaffordability for the middle and lower-income groups, limiting their accessibility to quality and reliable vehicles.


Honda cars are known for their sleek designs, advanced features, and reliable performance. Some of the most attractive features of Honda cars include:

Fuel Efficiency:

 Honda cars are known for their fuel efficiency, with many models achieving high miles per gallon (MPG) ratings.

Safety Features:

 Honda cars come equipped with a range of advanced safety features, such as airbags, anti-lock brakes, electronic stability control, and more.

Innovative Technology: 

Honda has always been at the forefront of automotive technology . its cars come packed with innovative features like touchscreens, wireless charging, and advanced infotainment systems.

Comfortable Interiors:

 Honda cars offer spacious, comfortable interiors with plenty of legroom and headroom. Making them a popular choice for long drives.


 Honda cars are known for their exceptional performance, with powerful engines and smooth handling that make them a joy to drive.


Honda cars are renowned for their reliability and longevity. With many models lasting for hundreds of thousands of miles with minimal maintenance.

Environmentally Friendly:

 Honda is committed to reducing its carbon footprint, and many of its cars feature advanced eco-friendly technologies like hybrid engines and low-emission systems.

Price increase:

 Which was published on February 22, 2023. HACL had already increased the prices of its vehicles four times in 2023, and the latest hike ranges from PKR 200,000 to PKR 600,000, depending on the model.

The report further states that the price hike has affected all Honda car models, including the Civic, City, BR-V, and HR-V, making them unaffordable for the majority of the population.

Model design:

It is worth noting that the exact prices of Honda cars may vary depending on the variant, model, and region. 

Nonetheless, the latest announcement of a huge price hike has undoubtedly made Honda cars a luxury item that only the ultra-rich individuals can afford in Pakistan.


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