Tag: Pakistan Auto Market

  • 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.

  • Here’s why KIA Pakistan is teasing ‘Yasir and Alvin’ 

    Here’s why KIA Pakistan is teasing ‘Yasir and Alvin’ 

    KIA Motors Pakistan recently stirred curiosity on social media by mentioning “Yasir and Alvin” in a post, leaving some oblivious while surprising others.  

    Clarifying the mystery, KIA Lucky Motor Corporation is hinting at the introduction of a sedan resembling the Toyota Yaris and Changan Alsvin.  

    This serves as a clear indication of the automaker’s intent to enter this segment. The upcoming car is expected to match the size of the Toyota Yaris and Changan Alsvin, eliminating the possibility of it being an entirely different model.  

    This move suggests that, for the time being, the Corolla and Civic segments remain unthreatened by a new entrant.  

    While the brand has not disclosed the car’s details or its name, it is apparent that a new vehicle is on the verge of being launched. 

    Considering the current economic challenges in Pakistan, with soaring car prices, launching a new vehicle seems like a risky decision.  

    The nation is already grappling with high petrol costs and escalating inflation, making the timing of this introduction noteworthy.