3 min read
- HACL forecasts sales rise in MY 2024, hopeful about no import restrictions
- Automobile prices depend on the USD rate of Rs (287) and may increase if the rupee depreciates
- Honda emphasizes localization City 71%, Civic 61%, BR-V 55%, HR-V 52%
Honda Atlas Cars Limited (HACL) has announced to launch the hybrid cars in Pakistan. The company has predicted a rise in sales in the coming days compared to the market of MY 2023.
In the latest briefing, the company stated that the banks are opening Letters of Credit (LCs) for the auto sector. But the company refused to provide any further details about its model. After the LCs, the company is in a position not only again to start its operations and plans to introduce new models to strengthen its place in the market.
The company also mentioned increasing vehicle prices if the currency continued to decline. According to the company briefing, “Around 90% of the total cost is derived from raw material cost where 60-70% of total raw material cost is exposed to US dollar fluctuations. The car prices are currently around Rs 287 (to the US dollar).”
According to the statement, sales are expected to rise in MY 2024 only if the government doesn’t restrict automotive imports again.
Manufacturers are hopeful and said the rates are now set and established by the current US dollar rate. This amount is averaging around Rs 287, according to the news. Whereas it is expected that car prices may witness another rise if the rupee’s value falls even lower.
Honda has highlighted the level of localization for each of its vehicle and provided the list of the rates
| Model | Localization Rate |
| Honda City | 71% |
| Honda Civic | 61% |
| Honda BR-V | 55% |
| Honda HR-V | 52% |
Honda is a Japanese public multinational conglomerate manufacturer of automobiles, motorcycles, and power equipment. Honda has been one of the most popular automobile manufacturers since 1959.
Honda has announced its plans soon to introduce hybrid electric cars (HEVs) in Pakistan. The company made no comments about the precise timetables for the models in the queue to launch quickly or if those models will be locally assembled.
According to the latest analysis, in MY 2023, Honda sold 25,726 cars compared to 37,613 vehicles in MY 2022. This drop in sales was mainly due to the challenges experienced during the period of automotive import restrictions. The company hopes to improve these numbers in MY 2024 after a tough time brought on by import restrictions on automobiles.
The company also believes car sales will rise compared to the previous year “provided there are no restrictions on LCs imports.”
Read more:
At Auto Shanghai 2023, Honda Unveils Three Electric Vehicles
Honda Launches Electric HR-V Testing In Thailand
