https://carspiritpk.com/toyota-car-prices-decreased-in-pakistan/
“The recent reduction in prices of Toyota cars ranges up to Rs 1.1 million, effective from the 15th of August 2022. The last price increase was announced on 29th July when an increase of up to Rs 3.16 million was implemented on local assembled Toyota vehicles.”

So in that instance Toyota increased its prices by 3.16 million overall but only dropped them by 1.1 million. Meaning they still retained a good chunk of the increase intact for themselves.
The other assemblers followed the same example; leaving a lot of the price intact for themselves.
Now Honda is claiming “The company cited exchange rate volatility and rising material cost as the reason behind the price increase.” Here are some issues with that:

https://www.cnbc.com/2022/09/08/shipping-rates-are-still-falling-in-another-sign-that-a-global-recession-may-be-coming.html

https://www.reuters.com/business/davos-2023-dp-world-predicts-15-20-freight-rate-drop-demand-slows-2023-01-16/
“DP World expects freight rates to drop by a further 15% to 20% in 2023, with the worst still to come as demand slows, the Dubai-based global logistics company’s deputy chief executive and chief financial officer Yuvraj Narayan told Reuters.”
“Narayan said that across shipping freight rates there had been a significant decline in freight rates of anywhere between 20% and 50% from their peaks last year.”

https://www.hellenicshippingnews.com/freight-rates-drop-50-as-global-trade-slows/
“Bangladesh’s ocean freight charges have registered a 50% fall from the pandemic-led massive surges as global trade slows because of shrinking demand for goods paired with rising inflation and inventory excesses in destination countries.
Vessel operations on the Chattogram-Europe route now cost $6,000-7,000 per 20-foot container in contrast to $12,500 in December 2021 when the pandemic was at its peak. Similarly, a US-bound ship now charges $10,000 per 20-foot container, down from $20,000, according to the Shipping Agents’ Association”

https://www.freightos.com/freight-resources/coronavirus-updates/
“According to Freightos data, freight rates fell 21% to $2,607/FEU in November, its lowest level since December 2020, as demand continued to slow and congestion levels decreased. This rate is 72% lower than a year ago, though still double its 2019 level.”

The freight rates are dropping. For example, freight rates were on average 4 times above the 2019 per pandemic levels a year ago. Now the rates are only double the 2019 pre pandemic levels and still falling very fast.

We have also discussed here many times how the prices of the local assembled vehicles are higher than the prices for the same vehicles in countries like the Philippines were they are CBU imports.

My question is simple. How can our local assemblers still sight “material costs and freight rates” as the reason for the price hike when the rates are dropping fast?
If the exchange rate is the issue, fine, it has gone up. However they had already increased the prices the last time the dollar hit this same rate. They did decrease the prices but left themselves a good margin/chunk of that price increase intact. Now they have increased the prices again a good amount. Is that justified?
I think they are emulating how the government increased the petrol prices. Increase petrol prices by 5 rupees and then give the awam a “relief” by reducing by one rupee. Then soon increase by another 3 or 4 rupees.
These people are all the same. 🤣🤦‍♂️