Honda Atlas Cars (HCAR), the assembler of Honda automobiles in Pakistan, has ruled out an immediate entry into the country’s battery electric vehicle (BEV) segment, saying it will continue to focus on hybrid vehicles despite having the technology and localisation capabilities to manufacture EVs.
The company’s management commented during a corporate briefing session, held on Tuesday, which was attended by Arif Habib Limited (AHL).
During the briefing, HCAR management said that it views hybrid vehicles as a more viable solution for Pakistan than BEVS.
“Although the company has access to EV technology and localisation capabilities, it currently has no plans to enter the BEV segment,” said AHL in its briefing takeaways.
Elaborating on the management’s comments, AHL’s analyst Menka Kirpalani told Business Recorder that Honda believes hybrid vehicles are a more practical near-term solution for Pakistan, “primarily due to the country’s current infrastructure and consumer readiness”.
According to the analyst, management expects the market to transition through hybrid vehicles before eventually shifting to fully BEVs.
“Nevertheless, the company already has the necessary technology and localisation capabilities to manufacture EVs as demand evolves,” she said.
The announcement is in contrast to the government agenda, which has pushed for promotion and local manufacturing of EVs in the country, which remains in an emerging phase, to address climate change and reduce fuel import bills.
Days ago, Chinese auto giant BYD’s Pakistan venture said its $150 million assembly plant in Gharo, Sindh, is in “final stages”, and the company has ramped up efforts to bring the country’s first locally assembled BYD vehicle on the road “at the earliest”.
Meanwhile, during the briefing session, HCAR’s management shared that it remains focused on introducing its hybrid technology, “which they believe is superior to competitors,” said AHL.
“They are currently absorbing costs and compromising on margins to support this strategic shift,” the brokerage house added.
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