Tag: hybrid vehicles

  • Honda Atlas plans to launch hybrid cars as market competition intensifies

    Honda Atlas plans to launch hybrid cars as market competition intensifies

    Honda Atlas Cars Limited (HCAR) has announced plans to enter Pakistan’s hybrid vehicle market, potentially with the HR-V model, as it faces growing competition from rivals like Corolla Cross and Haval. This development was revealed during a briefing on the company’s financial results.

    HCAR disclosed that it intends to invest Rs5 billion in establishing a hybrid vehicle manufacturing plant. However, the company did not provide a specific timeline for this initiative. A similar announcement was made in July of the previous year, but details regarding the vehicle model or its launch date remain undisclosed.

    Analysts have expressed caution regarding the potential success of the new hybrid vehicle. JS Research analyst Wadee Zaman noted that the success of the model will hinge on its features and pricing.

    The company reported that, despite no issues with opening letters of credit, subdued demand and economic challenges have led to a decline in revenues. HCAR also shared localisation levels for its models: Civic at over 60 per cent, City at 73 per cent, and both BR-V and HR-V at less than 50 per cent.

    According to Topline Securities, HCAR benefited from a tax adjustment due to its history of minimum tax payments, which lowered its effective tax rate from 86.9 per cent to 15.2 per cent for FY23-24. Sohail also noted that about 10-15 per cent of the company’s imports come from Japan, with the remainder from Thailand, leading to minor gains from currency devaluation.

    According to Business Recorder, HCAR is also exploring opportunities in spare parts and CPU part exports. The company highlighted that the auto sector has faced significant challenges this year, including a 2 per cent increase in the policy rate, which rose to 22 per cent by March 2024. This contributed to a 45 per cent decline in the overall passenger car market.

    Looking ahead, HCAR anticipates a potential recovery in the industry during MY25, with improvements expected in the lower car segment and hybrids as the policy rate decreases. The sector is projected to regain a reasonable size within two years.

    For the current year, HCAR recorded earnings of Rs1.42 per share, a 40 per cent increase year-on-year but an 85 per cent decrease quarter-on-quarter. Gross margins fell from 8.4 per cent to 6.5 per cent. The company’s management has assured that margins will remain competitive.

  • Japanese car companies consider establishing hybrid vehicle plants in Pakistan

    Japanese car companies consider establishing hybrid vehicle plants in Pakistan

    Japan has urged Pakistan to allow the import of manufacturing equipment for vehicles due to the shortage of dollars, which has affected the issuance of letters of credit to Japanese companies operating in the country.

    Japanese firms are considering the establishment of hybrid vehicle plants in Pakistan, with plans to export the vehicles from the country in the future.

    During a meeting between Ambassador Wada Mitsuhiro and Finance Minister Senator Ishaq Dar at the Finance Division, the Ministry of Finance issued an official statement. The Vice Chairman of Toyota, Shinji Yanagi, SAPM on Finance Tariq Bajwa, finance secretary, and senior officers were also in attendance.

    The finance minister briefed the envoy on the economic challenges and priorities of the government and emphasized that Japan is one of its major development partners. The cooperation between the two countries will strengthen in multiple fields for mutual benefit. The finance minister also welcomed the investment plans of Japanese companies in Pakistan.

    Ambassador Mitsuhiro praised the government’s pragmatic policies and actions and expressed confidence in the country’s economic policies. Meanwhile, a World Bank delegation led by Mamta Murthi, Vice President of the World Bank for Human Development, met with Dar at the Finance Division.

    Murthi emphasized the importance of investing in human capital, particularly in education, health and nutrition, social protection, population control, and women’s development. She also highlighted the importance of local ownership and community participation in implementing development projects.

    The finance minister briefed Murthi on the government’s policies and programs related to key areas of human development to uplift the masses and eliminate poverty in the country. He expressed the government’s commitment to work with the World Bank to achieve their shared goals of sustainable development in Pakistan.