All the car lovers out there already know that 2019 was an eventful year for the automotive industry in Pakistan. With exciting new cars, high taxes and inflation, buying cars became an even more involved decision than previously. Here’s a brief of everything we, at CarFirst, believe shaped up this year in cars.
2019 saw the launch of multiple new cars and variations in the market. Some of the major players included KIA’s Sportage launched in August 2019. The Sportage is a compact SUV that comes in both AWD (with alloy wheels) and FWD (with steel wheels) options. This fourth generation comes with a 6 speed transmission + Sportmatic. Current price starts from PKR 4,899,000.
KIA also launched the second generation of Picanto (available in both automatic and manual variants), the firsthatchback car by the South Korean manufacturer in September 2019. Available in four colour options i.e Mercury Blue, Sparkling Silver, Milky Beige, Clear White, the car is 3595 mm in length and 1595 mm in width and boasts of 998 cc engine capacity. Picanto’s price ranges between PKR 1,899,000 and 2050000.
The ISUDU D-Max’s 2nd Generation was also released this year to meet your off-road needs. Available in three levels by Ghandhara Industries, this extremely luxurious car is sure to be a hit. The Isuzu DMax variants are the Hi-Spark, Hi-Lander and V-cross and come with two engine options : 2.5 Litre DOHC 16 Valve Engine and the 3.0 Litre DOHC 16 Valve Engine.For those looking to purchase, the current prices range between PKR 2,800,000 To 5,400,000.
Suzuki’s three-variant Alto was also released this year in VX, VXR and VXL models. Price invoices range around PKR 1,135,000 for Alto VXR MT, PKR 1,238,000 for VXL MT and PKR 1,433,000 for VXL AGS.
Additionally, this year also saw the release of Honda Civic turbo with Face lift shape featuring Shark fin antenna , New style Rims and new LEDS headlamps. This Civic, also known as the Civic X, is currently sold in Pakistan in two variants with prices between PKR 3,499,000 To 4,399,000.
Honda Accord’s 10th generation was also launched in september 2019. The latest Honda Accord comes with a 1.5 L DOHC In-line 4 cylinder engine packed with a 1500 cc engine displacement.
This year we said goodbye to the ‘boss’ Mehran after a successful 30 year run. The last booking was done on 10 April 2019. The last unit produced is owned by MACCA motors bearing Chassis No. SB 308PK01309332. Unfortunately, it’s not on sale.
Now for some bad news; 2019 has been hard on new car purchasers with high inflation rates and import duties on Japanese domestic market cars. Focusing on the three big assemblers, we can see Toyota averaging a 21% price increase as well as Honda and Suzuki averaging 25% and 18% price invoice increases respectively over the year.
The key factors which have impacted invoice prices includes FEDs, Import duties, Filer and non filer taxes with the new tax reforms and devaluation of the local currency. The current income tax based on vehicle category is as follows:
2019 saw several tax reforms directly affecting the automotive industry. The Finance Supplementary Second Amendment Act 2019 saw the Federal Excise Duty on Vehicles on cars above 1700 cc as 10%. Currently, the following slabs have been introduced where it has been set for 0-1000 cc cars at 2.5%, 1001-2000 cc cars at 5% and 2001 cc above cars at 7.5%.
Additionally, despite rumours to the contrary, FBR clarified that there had been no change from the previous year in the Financial Budget- 2019 and that no tax had been levied on private cars on the basis of seating capacity.
Automotive Market Trends
With the rise of Original Equipment Manufacturers (OEMs), there has been concern from Japanese Domestic Markets (JDMs) over the competition. However, prices for both have increased due to the taxation and inflation issues highlighted above.The decline of imports have also led to a hike in prices for the stock available in the market.
All these changes have led to an increased interest in the used car trading market due to their affordability and the development of certified and trustworthy options for Buying, Selling and Exchanging cars.