Atlas Honda Limited (AHL) is fully committed to development of local motorcycle industry by supporting local auto part manufacturers to move towards 100 percent localisation. AHL General Manager Research, Development and Projects Afaq Ahmad stated this while briefing the newsmen at Pakistan Auto Parts Show 2011.
He said that AHL has contributed the national economy and created employment for thousands of skilled and unskilled local workforce. Motorcycle industry is the most vibrant of all the sub-sectors of the auto industry in Pakistan. It has been maintaining an average growth rate of around 15 percent year after year for last five years and that to on an expanding base.
Since the start of business in 1962 and rolling out of first motorcycle in 1964, the pioneering work done by AHL for indigenous motorcycle parts has braved many a challenges, both internal and external, including unfavourable policies, low volumes and huge investments that at times made little business sense to invest in localisation. In spite of all odds, the company continued to place its faith in investing in increasing local content of its product. The company ploughed-in huge investment in in-house manufacturing. In the early years the emphasis was on press, steel sheet parts. Later, as confidence grew, investment was gradually made in high tech parts.
AHL went into technology transfer agreements with some of the best first tier vendors in Japan. Over the years company went for seven such agreements which resulted in transfer of technical know-how for local manufacturing of high tech parts such as Ignition Coil, ACG Flywheel, Drum Gear Shift, Fuel Cock and Brake Shoe. At the same time AHL helped the vendor industry of the country by arranging transfer of technology agreements with 12 of its vendors. It is these critical agreements that have helped lay the base for local manufacturing of motorcycles in the country on a mass scale and at competitive prices.
Today, motorcycle sector in Pakistan has achieved localisation level in excess of 92 percent. It was a matter of faith for its sponsors in the potential this country always held. It takes vision and faith to invest in technologies such as Piston, CDI Unit and Regulator Rectifier. He said that during the first five months of the current financial year of the company, AHL has exported 12,450 units to different countries already exceeding the last year exports.
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