Corporate briefing: Honda Atlas mulling hybrid model for Pakistan

Honda Atlas Cars Limited (HCAR) is considering introducing a hybrid model in Pakistan, refraining from giving further details on its timeline or model. The update was provided in an analysts’ briefing attended by brokerage houses on Monday.

“The company has not revealed anything about the vehicle or when it will launch the model,” Topline Securities research analyst Sunny Kumar told Business Recorder after the briefing.

“I think they want to see the response after Indus Motor Company launches its hybrid vehicle Corolla Cross. Then, I think, they will be in a better position to give details,” he added.

AKD Securities analyst Usama Rauf, who also attended the briefing, said the company has only disclosed that its considering a HEV.

“It could be the hybrid version of the HR-V. But no one can be sure at this stage.”

HCAR launched its petrol variant of the HR-V in MY23, and the company said it was seeing an “overwhelming response from customers”, according to a note by Topline Securities.

Meanwhile, the company, during the briefing, also said that it will increase car prices in the event that the rupee falls further or if additional taxes are imposed.

“To note, around 90% of total cost is derived from raw material cost where 60-70% of total raw material cost is exposed to US dollar fluctuations,” added Topline Securities in its note.

“The current car prices are currently set at around Rs287 (to the US dollar).”

The management also believes car sales will increase compared to last year, “provided there are no restrictions on LCs imports”.

Honda Atlas Cars (Pakistan) Limited

“To note, in MY23 HCAR sold 25,726 units compared to 37,613 units in MY22,” added Topline.

The management also indicated that some restrictions on opening letters of credit have eased.