Pakistan’s 2-wheeler market leader Atlas Honda has recently shared that they are about to export Honda CD70 and CG125 to middle eastern countries very soon this year. Atlas Honda is aiming at exports of 25 million dollars by doing so. Here is what we know so far.
During a briefing session with the investors, Atlas Honda shared that they sold more than 11 lac motorcycles in Pakistan last year. Against all odds, this is a good performance by Atlas Honda because many players have quit the market due to tough situations. The unstable economy and fluctuating dollar rates have been killers for local industry. Last year, Honda managed to sell 13 lac motorcycles and this time they are aiming to export motorcycles to the Middle East including Iran and Iraq.
The biggest bird in hand for Atlas Honda is that they have mastered the localization. The process in which any product is made locally by using local resources and workforce. This helps in keeping the costs down and having other economical benefits too. Atlas Honda has managed to achieve 94.4% localization in CD70, 92% for CG125, and 84.3% for Pridor.
Being an old player, Atlas Honda knew how to be prepared for hard times. When other companies were closing and observing non-production days like Suzuki, they were ready. Atlas Honda has raw materials for up to 04 months in hand. Due to import restrictions, 80% of the local manufacturers had to shut down. The reliance on China for raw materials and import bans made it very tough for them to survive.
Benefits of Export:
The export of made-in-Pakistan motorcycles is a positive sign for Pakistan’s automobile industry. The world is moving at a fast pace and competition is getting furious. Atlas Honda needs to innovate as their motorcycles are dated now! What do you think of this, let us know in the comments.