Honda Civic-Toyota Grande Prices to Go Up

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Non-Filers allowed to buy cars of 1300cc and beyond

The government through Finance Supplementary (Second Amendment) Bill, 2019, has announced some latest recommendations, some of which will affect Pakistan’s automotive industry.

Non-filers, which were previously allowed to buy locally manufactured cars of up to 1300cc only, can now buy locally manufactured vehicles of all engine capacity. So, the bar of 1300cc is gone. This is likely to increase the sales of cars, which was previously stalled.

The second most important development is related to federal excise duty or FED. The government intends to levy 10% FED on all locally manufactured vehicles of the engine capacity of 1,700cc and above. Previously, the same duty was proposed for vehicles of 1,800cc and above.

For the benefit of our readers, the prices of Honda Civic along with Toyota Grande are likely to go up due to 10% FED since Civic’s engine displacement is 1799cc and that of Grande is 1798cc. Various variants of Grande, namely 1.8L Altis-MT, 1.8L Altis CVT-i, 1.8L Altis Grande-MT and 1.8L Altis Grande CVT-i are all of the 1798cc engine displacement. These two cars may cost Rs.280,000 more if this bill comes into effect.

Had the government not revised its FED proposal from 1,800c to 1,700, Honda Civic and Toyota Grande would have not been affected by this. But if this bill becomes an act, the prices of Honda Civic and Toyota Grande are likely to go up.

Finance Supplementary (2nd Amendment) Bill of 2019 and SRO 52(1) 2019: Ultimate Winners & Losers

While Toyota will be affected, it is interesting to mention here that Civic sells a lot more than Grande. So, Honda has once again been given short end of the stick.

Interestingly, Honda was also at the receiving end when Finance Minister Asad Umar presented the Finance Supplementary (Second Amendment) Bill, 2019, earlier. The bill also dubbed as “mini budget” allowed non-filers to buy locally manufactured cars of up to 1,300 engine displacement. Honda City and Civic, Honda’s most selling models are of engine displacement 1,339cc and 1,799cc respectively.

For more updates on this and other automotive related news in Pakistan, stay with PakWheels.com.

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