Honda Atlas Cars Limited (HACL) has expressed optimism about an increase in sales in the upcoming Market Year (MY2024). This comes after a challenging period in MY2023 when the company sold 25,726 cars, a significant drop from the 37,613 units sold in MY2022. The decline was largely attributed to government-imposed restrictions on automotive imports.
In a recent corporate briefing, HACL revealed that banks have started opening Letters of Credit (LCs) for the auto industry, a move that is expected to stimulate growth in the sector. However, the company cautioned that this positive outlook would only hold if the government refrains from reintroducing import restrictions.
The company also noted that current car prices are pegged to the US Dollar rate, which stands at approximately Rs. 287. Any further depreciation of the rupee could potentially lead to another surge in car prices.
In terms of localization, Honda provided a breakdown for each of its models. The Honda City leads with a localization rate of 71%, followed by the Honda Civic at 61%, the Honda BR-V at 55%, and the Honda HR-V at 52%.
| Model | Localization Rate |
| Honda City | 71% |
| Honda Civic | 61% |
| Honda BR-V | 55% |
| Honda HR-V | 52% |
In a forward-looking statement, Honda announced plans to introduce hybrid electric vehicles (HEVs) in Pakistan. While the company did not provide specific details regarding the timeline or the models to be launched, this move signals Honda’s commitment to sustainable mobility and aligns with global trends toward greener transportation solutions. Whether these hybrid models will be locally assembled remains unclear.
This announcement marks a significant step for the automotive industry in Pakistan, as it could pave the way for more environmentally friendly and fuel-efficient vehicles in the country. As Honda navigates the challenges of currency fluctuations and potential import restrictions, the introduction of hybrid vehicles could offer a new avenue for growth and innovation.
