Honda Atlas Cars expects monthly sales of 400-500 units

KARACHI: Honda Atlas Cars (HCAR) is expecting monthly sales of 400 to 500 units for its newly launched HR-V e:HEV hybrid variant, the company revealed during its corporate briefing session on Model Year 2025 (MY25) performance.

According to Topline Securities, the briefing covered current market dynamics, expected policy impacts, and future plans. HCAR’s management appeared optimistic about demand recovery and new product introductions in the coming year.

The management stated that rising used car imports and tariff rationalization are unlikely to significantly impact HCAR. These developments mostly affect vehicles under 1000cc, which comprise about 90 per cent of total used car imports. Over the past 12 months, approximately 45,000 used vehicles entered Pakistan, most of them in the sub-1000cc segment.

Further clarity on the new used car import policy, including duty structure, safety and emissions standards, and age-limit relaxation, is expected by September 2025, the company noted.

SALES OUTLOOK

HCAR is forecasting a 40–50 per cent increase in sales in MY26, supported by improved market sentiment and product pipeline. With the 2021–2026 auto policy expiring, the company expects a level playing field with competitors, highlighting its higher localisation levels as a competitive edge.

Management reaffirmed its focus on hybrid technology, calling it superior to local competitors’ offerings. The company is currently absorbing costs and sacrificing margins to support this transition, according to Topline Securities.

The Honda City 1.2L variant makes up 75 per cent of the model’s sales, while the 1.5L variant contributes 25 per cent. The Civic model also saw a sales boost, with the City/Civic mix now at 55 per cent/45 per cent, compared to 60/40 per cent previously.

HCAR’s localization levels currently stand at:

• City: 74%
• Civic: 64%
• HR-V: 61%
• BR-V: 52%

There are no import restrictions at present, and the company reports no issues with LC openings, easing operational concerns that have plagued the industry in recent years.

HCAR reported a 42 per cent year-on-year growth in revenue, reaching Rs 78.07 billion, thanks to improved volumes, 16,100 units sold. Gross profit margin also improved slightly to 8.5 per cent, up from 8.2 per cent last year, due to cost controls and currency stability.

The company’s effective tax rate dropped to 17.27 per cent, reflecting the adjustment of Rs 785 million in carried-forward tax credits. This normalised in the June 2025 quarter.

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