Suzuki Pakistan has suspended the bookings of all of its cars and Honda Atlas has just announced that customers who have placed bookings for new Honda cars may experience delay in delivery due to current economic situation of Pakistan and the global chip shortage.
Due to supply-chain issues and a widespread state of economic unrest, Pakistan’s whole auto industry is in disarray, Pak Suzuki Motor Company (PSMC) and Honda Atlas Cars Limited (HACL) are now feeling the heat.
Honda has announced publicly that the deliveries of its customers’ cars will be delayed. The car maker has highlighted challenges with obtaining letters of credit for CKD imports, a scarcity of integrated circuits, and Pakistan’s current economic crisis.
Read more: Honda increased prices of local assembled Civic, City and BR-V
The following are the typical delivery timeframes for well-known Honda vehicles, according on data from multiple dealerships:
|Honda Civic (Base Variant and Oriel)||4-5 Months|
|Honda Civic RS||1 Year|
|Honda City 1.2||2-3 Months|
|Honda City Aspire||4-5 Months|
|Honda BR-V||2.5-3 Months|
Pak Suzuki Suspended the Bookings
After Honda, the same has prompted Pak Suzuki Motor Company (PSMC) to halt car reservations. Prior, the company was only taking reservations for the Suzuki Swift and Wagon R VXR variants; however, recent reports indicate that all reservations have been cancelled.
Market rumours also suggest that other automakers may halt reservations prior to price changes.
One of the Suzuki dealerships said that there was a problem with the company’s automobile quota, while another indicated that a price increase was imminent. One of the dealership managers stated that, “The pricing of Suzuki cars could go up today or in the following few days, therefore the suspension of bookings.
Read more: Suzuki, Toyota, Honda and Hyundai sold 18,714 cars in November 2021
Capital Advance Tax
Cars with engines larger than 1300 cc must pay capital advance tax. In a previous Finance Bill 2022–2023, the government declared a 2 percent CVT on vehicles costing more beyond Rs. 5 million. However, FBR decreased it to 1 percent with new conditions in the final Finance Act 2022. Now, CVT will be required for:
- Cars with an engine size above 1300cc
- Electric vehicles with battery power above 50kwh
Furthermore, the commencement of the new fiscal year signals that the subsequent round of price increases will soon be upon us.