In the early 90s the doors on imported cars in Pakistan were shut in favor of locally assembled vehicles Suzuki, Toyota, and Honda stepped in with their range of models. Often referred to as the “Big Three”, these three assemblers since then have maintained a perfect grip on the local auto sector.
Honda among them has been the smallest player with a limited number of models but was ahead in terms of offering the latest models, cutting-edge technology, and rich equipment compared to the other two assemblers– Toyota and Suzuki. Honda was always known as the prime preference of urban buyers who valued features over resale and were ready to bear the relatively expensive maintenance costs of Honda vehicles.
Related: Honda and Facelifts- Then & Now
Honda Civic, which is known as an arch-rival of Toyota Corolla around the world, was always priced higher than the latter in our market. Civic generally came with bigger displacement engines compared to Corolla, which till the introduction of Yaris in 2020 always had 1.3L variants among the offerings.
However, while it was a general perception, in fact, remained a reality for a long time that the resale of the Corolla was far better than the Civic in the used car market, it has changed altogether after 2017/18. It was when the prices of cars started to witness a rapid increase in Pakistan in wake of steeply declining currency value against the US Dollar, as well as the introduction of a new model of Honda Civic in 2022 which breached all previous records of expansiveness.
Related: History of the Honda Civic
Today after going through multiple price hikes within the first 3 months of this year, Honda Civic which is in its 11th generation costs a whopping PKR 85.99 lac for the base variant and a mind-boggling PKR 101.99 lac for the flagship RS variant. What’s more, the effect of such exorbitant price increases has not only begun to show up in the used automobile market but has also changed the market into a lottery for the sellers.
For example, the price of a top-spec 10th gen Honda Civic in 2017/18 was PKR 25.49 lac. But those having used that Civic for over 5 years and have more than 55,000 km on the odometer are selling it for nearly three times the purchase (invoice) price of that car. Cars are never considered a depreciable commodity in Pakistan; rather, they are treated as an asset whose worth increases over time rather than decreases.
Related: Used Cars Never Depreciate in Pakistan
And if you are thinking that since the currency has depreciated it is rightful for sellers to ask a higher price (than the invoice) for a used model. Let’s calculate in terms of dollars. Back in 2018, a flagship Civic used to cost around $24,000 for a brand-new car ($1=Rs 121+/-). Today the same car after 5 years of usage and more than 50,000 km driven is also around $24,000 ($1=Rs 289+/-) so technically there is no depreciation at all.
Perhaps it was the best investment for those who opted for a Honda Civic back in those days. It’s another debate whether people are really buying a used car with that much of a hefty price tag. Still, before the sales of new cars witness a complete crash in Pakistan (they are already down by 52%), and the purchasing power of consumers will no longer allow them to buy new cars, it’s a wonderful time for used-car sellers to recoup their investments before the market collapses.
A computer animation professional with over 23 years of industry experience having served in leading organizations, TV channels & production facilities in Pakistan. An avid car enthusiast and petrolhead with an affection to deliver quality content to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com
