Honda Atlas Faces Export Challenges Despite Initial Success

Despite a successful initial export of Honda City vehicles to Japan, Honda Atlas Cars (Pakistan) Limited (HCAR) has indicated that Pakistan still lags behind other Asian subsidiaries. The company suggests that substantial exports are not currently viable.

This information came to light during a corporate briefing on July 16, 2025, attended by Arif Habib Limited (AHL), according to a report released on Wednesday.

AHL’s briefing takeaways quoted management stating, “Regarding vehicle exports, Honda confirmed the export of 38 Honda City 1.2L units to Japan. However, the company stressed that Pakistan encounters considerable hurdles in competing with other Asian subsidiaries due to the present absence of government policies that support exports and elevated input expenses.”

The automaker communicated that discussions with the government are in progress, but “large-scale exports remain limited for the time being.”

Honda Atlas Cars (Pakistan) Limited, a subsidiary of Honda Motor Co, officially began exporting Completely Built Units (CBUs) earlier in March.

The country’s automotive industry, primarily composed of Toyota’s Indus Motors, Honda Atlas, and Pak Suzuki, relies significantly on imported components and primarily focuses on assembly.

Nonetheless, businesses have recently taken steps to position Pakistan as a potential export center.

Last July, Indus Motor Company Limited (IMC), which assembles and manufactures Toyota vehicles in Pakistan, started exporting specific vehicles to other Toyota-affiliated entities.

Despite these efforts, Pakistan’s automotive sector continues to grapple with numerous issues, including elevated production costs, supply chain disruptions, and fluctuating exchange rates.

HCAR management also stated during Wednesday’s briefing that the HR-V Hybrid was launched on July 14, 2025, and test drive models are now accessible throughout the country.

AHL quoted management as saying, “The initial customer feedback has been encouraging, and the company anticipates selling 400-500 units each month.”

Concerning the impact of imported used vehicles, Honda clarified that the majority (approximately 90%) of these imports fall into the 1000cc category and do not directly affect the Honda City segment.

Management shared that “The company is awaiting further clarification from a projected government policy revision in September and will evaluate the consequences accordingly.”