Honda Atlas Cars Pakistan has changed its plan of launching a new locally-assembled car in Pakistan. The management has deferred from its original plan mainly due to the uncertain economic condition of Pakistan.
The pre-planning of the car had already begun. Honda had given the drawings of tools, molds and design to the local vendors.
Now the vendors have informed that “HACP has now asked local vendors to cancel their activities for parts development.”
Vendors have also been asked to give back the drawings that were presented to them by Honda Atlas.
It is said by the stakeholders and part makers that work begin on a new model almost 1.5, 2 years before it is actually launched. But when the rupee devalued against the dollar the automaker decided to halt the production of a new car.
Vendors said, “Economic conditions, uncertain rupee-dollar rates, reports of imposing additional regulatory duties on raw materials, etc have compelled the company to defer the plan to roll out a new model.”
It was reported that Honda Atlas is planning to launch locally assembled 1,200cc Brio in Pakistan by 2019. It could have added 3000 units in Honda’s total production. But as per the sources, it is not happening anymore.
On the other hand, a HACP official said,“Its (Honda Brio) launch is neither final nor dropped. It is yet to be finalized for entry into the Pakistani market. It is in the planning phase.”
Read also: Is Honda suspending bike production?
In Pakistan, Honda Atlas sold 42,810 units of its iconic cars Civic and City is the fiscal year 2018 compared to 37,004 units in the fiscal year 2017. Similarly, 8,684 units were sold of Honda BR-V is the fiscal year 2018 compared to 2,159 units from April to June 2017.