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Business Recorder
a day ago
- Automotive
- Business Recorder
Honda Atlas Cars launches Pakistan's first Honda HR-V e: HEV
LAHORE: Honda Atlas Cars (Pakistan) Limited announced the launch of Pakistan's first Honda HR-V e:HEV, setting a new benchmark in hybrid mobility. This milestone marks the beginning of Honda's journey towards sustainable and intelligent mobility in Pakistan—driven by its global vision of Carbon Neutrality and realizing zero traffic fatalities by 2050. The Honda HR-V e:HEV launched in the Pakistani market with the message of 'a new era of e:HEV. The momentous occasion began with the symbolic First Car Line-Off ceremony, representing the start of localized production of Honda's most advanced hybrid SUV in Pakistan. The exclusive launch ceremony was attended by esteemed guests of honor from Honda Motors Co. Japan and Asian Honda Co. Ltd., with other executive members from the Atlas Group Pakistan. The highlight of the event was the presence of Toshio Kuwahara, Vice President, Head of Regional Unit (Asia & Oceania), Regional Operations (Associated Regions) of Honda Motor Co., Ltd. who addressed the audience and emphasized Honda's global commitment to environmental performance, innovation, and responsibility for the future. He stated that hybrid technology plays a crucial role in moving toward a more sustainable mobility industry, and introducing this latest technology to the Pakistani market reaffirms Honda's strong and ongoing commitment to the country. Aamir H. Shirazi, Chairman of Honda Atlas Cars (Pakistan) Limited, expressed immense pride in leading the introduction of next-generation hybrid technology in Pakistan. He reaffirmed HACPL's vision to contribute to the country's transition toward clean, efficient, and intelligent mobility — built on global standards and supported by local production. Copyright Business Recorder, 2025
Business Recorder
7 days ago
- Automotive
- Business Recorder
Honda's lane
Whether Honda Atlas Cars (PSX: HCAR) becomes an exporter of Honda vehicles assembled in Pakistan still remains to be seen, a future that hinges on the cost competitiveness and demand feasibility in attractive markets. At the same time though, one cannot deny that HCAR is financially trudging out of misery. Profits in the first quarter of MY26 are up 4 times compared to the low base in 1Q last year. While this is not the best quarterly profits the company has made in recent history, the average earnings for the past three quarters is almost double the average earnings for the same quarters the year before. The average volumetric increase during this time is 40 percent. There is certainly a favorable demand environment, especially with the reduction of interest rates and the resurgence of bank credit for consumer automobiles. In 1QMY26 (ending June-25), volumes surged 68 percent driven by City and civic sales (BR-V was only 7% of total volumetric sales) which led to a revenue growth of 66 percent. Honda's cost per unit sold is down 4 percent, contributing to a slight improvement in margins. However, revenue per unit sold declined by 1 percent, suggesting a possible shift in the sales mix toward lower-priced is also evident from the reduced share of BR-V compared to last year. Certainly, the increased demand is expected to taper off in the coming quarter, particularly due to new budgetary measures such as carbon levies that have triggered upward price adjustments for most models. With strong control over overheads (4% of revenue) and financial costs (1% of revenue), partially offset by other income (2% of revenue), what Honda needs now is sustained demand. The company's launch of a hybrid vehicle in the C-segment SUV category aligns with its domestic assembly strategy. While the model will compete with the already popular Corolla Cross, for Honda loyalists, the launch appears well-timed. The exports meanwhile are mostly symbolic at this time. Unlike the domestic market where competition is hard to fathom, automotive exports are highly competitive with more ready and advanced exporters already in the market unwilling to give out their market share. In this case, several East Asian exports are already at a significant advantage. While Honda claims a high degree of localization, 74 percent for the Honda City; 64 percent for the Civic, and 61percent for the hybrid HR-V, the cost of many localized parts remains sensitive to exchange rate fluctuations, as most raw materials are still imported. Other factors such as high taxation environment are also not conducive to producing an export competitive product. Honda must weigh its export aspirations against the harsh realities of highly competitive international markets. But this is as good a start as any.
Business Recorder
17-07-2025
- Automotive
- Business Recorder
Honda Atlas flags major hurdles to vehicle exports from Pakistan: AHL
Despite successfully exporting a limited batch of Honda City units to Japan, Honda Atlas Cars (Pakistan) Limited (HCAR) has stated that Pakistan remains at a disadvantage compared to other Asian subsidiaries, with large-scale exports remaining unfeasible for now. This was shared during a corporate briefing session held on July 16, 2025, which was attended by brokerage house Arif Habib Limited (AHL), as noted in a report shared on Wednesday. 'Regarding the export of vehicles, Honda confirmed that 38 units of the Honda City 1.2L were exported to Japan. However, the company emphasised that due to the current lack of export-supportive government policies and high input costs, Pakistan faces significant challenges in competing with other Asian subsidiaries,' said AHL in its briefing takeaways, quoting the management. The automaker shared that discussions with the government are ongoing, 'but large-scale exports remain constrained for now'. Earlier in March, Honda Atlas Cars (Pakistan) Limited, a subsidiary of Honda Motor Co, officially commenced exporting Completely Built Units (CBUs). The country's auto sector, largely dominated by Toyota's Indus Motors, Honda Atlas and Pak Suzuki, relies heavily on imported parts and is generally involved in assembly. However, in recent years, companies have taken steps to position Pakistan as an export hub. In July last year, Indus Motor Company Limited (IMC), the assembler/manufacturer of Toyota-brand vehicles in Pakistan, initiated the export of certain vehicles to other Toyota-affiliated companies. Despite these developments, Pakistan's auto sector remains engulfed in various challenges, including high production costs, supply chain issues and volatile exchange rates. Meanwhile, HCAR management, in its briefing session on Wednesday, informed that the HR-V Hybrid was launched on July 14, 2025, and test drive units are now available nationwide. 'The initial customer response has been positive and the company expects to sell 400-500 units monthly,' the management was quoted as saying by AHL. Meanwhile, regarding the impact of used car imports, Honda clarified that the majority (~90%) of these imports fall under the 1000cc category and do not directly impact the Honda City segment. 'The company is awaiting further clarity from an expected government policy update in September and will assess the implications accordingly,' the management shared.
Express Tribune
17-07-2025
- Automotive
- Express Tribune
First batch of Honda cars exported, gaps persist
Listen to article Honda Atlas Cars (Pakistan) Ltd has exported 38 units of its 1.2L Honda City to Japan, marking a symbolic entry into international markets. However, the company cautioned that high input costs and lack of clear, export-supportive government policies remain major barriers to large-scale exports. During its analyst briefing on Wednesday, the company stated that while discussions with authorities are ongoing, Pakistan is at a disadvantage compared to regional competitors like Thailand and Indonesia. These countries offer more conducive environments for automotive exports, making it difficult for Pakistan to compete effectively in the global automotive market. Despite this, Honda reported a 42% year-on-year increase in topline revenue, reaching Rs78 billion in MY25. The company now aims to expand beyond local markets, laying the groundwork for sustained export momentum. According to AKD Securities, Honda Atlas exported 38 units of the 1.2L City model to Japan during MY25. Though the volume is small, Honda's management said the milestone establishes a foundation for entering high-value export markets. Arif Habib Limited (AHL), in its analyst note, cited the company's export push as a key growth lever amidst domestic competition and evolving policy frameworks. The company reported that it has achieved localisation levels of 74% for City, 64% for Civic, and 61% for the HR-V hybrid. The company posted a MY25 profit after tax of Rs2.7 billion (EPS: Rs18.97), up 16% year-on-year, supported by tax incentives that kept the effective tax rate at 17.27%. Industry expert Mashood Ali Khan highlighted the pressing need for consistent and clear government policies to unlock the full export potential of Pakistan's automotive sector. Currently, 20 to 25 parts manufacturers export to Europe, the United States, and the Middle East, he said, adding, "However, for a real jump in exports, Original Equipment Manufacturers (OEMs) such as Honda, Suzuki, and Toyota involvement is essential. Every major OEM in Pakistan has shown intent over the past years, but require policy support to scale up." Chairman of the All Pakistan Motor Dealers Association (APMDA), HM Shahzad, criticised recent automotive export claims, arguing that without meaningful localisation, Pakistan lacks the foundation to become a competitive automotive exporter. "Today's policies are not export-friendly. There's a gap between the government's stated ambition to enhance exports and the actual policy framework. The existing rebate systems, designed more for the textile sector, are not suited for automotive exporters," Khan explained. He called for a fully automated, GD (Goods Declaration)-based rebate system offering immediate incentives, such as tax-free CKD kits in exchange for exported units. "If one car is exported, allow duty-free import of one CKD kit automatically," he proposed. "This plus-minus system would boost exporter confidence and eliminate delays." He also noted that Pakistan, as a right-hand drive (RHD) production base, holds strong export potential. "There are over 50 RHD markets globally. With Japanese OEMs present and Chinese automakers entering the space, the opportunity is real — but we must act now." He warned that missing export windows due to bureaucratic delays or unclear incentives could cost Pakistan dearly, as global demand windows close quickly in the competitive auto landscape.
Business Recorder
22-05-2025
- Automotive
- Business Recorder
Honda Atlas Cars' posts Rs2.7bn profit in 2025
Honda Atlas Cars (Pakistan) Limited (HCAR) registered a profit of Rs2.7 billion for the year ended March 31, 2025, a significant increase of 16% on a year-on-year basis. HCAR's financial statements, which were made available at the Pakistan Stock Exchange (PSX) on Thursday, showed that the company's profit stood at Rs2.3 billion in the same period last year. The automaker's earnings per share (EPS) stood at Rs18.97 during the year, compared to Rs16.34 last year. A final cash dividend for the year ended March 31, 2025 at Rs8 per share i.e. 80%. The increase in profit can be attributed to an increase in sales. During the year, HCAR's sales clocked in at Rs78.06 billion, compared to Rs55.07 billion in SPLY, an increase of 42%. Honda Atlas Cars' profit-after-tax up 295% YoY in Oct-Dec While the company's cost of sales also rose to Rs71.4 billion in 2025, an increase of 41%. Consequently, the company's gross profit increased by nearly 48%, clocking in at Rs6.7 billion in 2025, as compared to a gross profit of Rs4.5 billion in SPLY. As a result, HCAR's gross margins improved to 8.5% in 2025, compared to 8.2% in the last fiscal. Meanwhile, as per HCAR's latest financial results, the automobile company witnessed a jump in its administrative expenses, which stood at Rs1.9 billion in 2025, up by 28%, as compared to Rs1.5 billion in SPLY. On the other hand, HCAR's other income registered a decline of over 56%, amounting to a meagre Rs988 million in 2025, in comparison to Rs2.25 billion in 2024. The automaker saw its finance cost lowered by 15%, standing at Rs1.04 billion in 2025, as compared to Rs1.2 billion in SPLY. The company posted a Profit before Taxation (PBT) of Rs3.27 billion in 2025, up by 19% YoY. Incorporated in Pakistan as a public limited company in 1992, HCAR commenced its commercial operations in 1994. The company was formed as a result of a joint venture between Honda Motor Co., Ltd., Japan and Atlas Group of Companies, Pakistan.
