The management of Honda Atlas Cars Pakistan (HACP) has decided to delay the launch of a new locally-assembled car due to the country’s uncertain economic condition. The pre-planning of the car had already begun. Honda had given the drawings of tools, molds and design to the local vendors around six months back.
According to the latest reports, vendors have also been asked to return the drawings that were given to them by Honda Atlas. A Honda vendor went on record and claimed that:
“HACP has now asked local vendors to cancel their activities for parts development. They also asked for the drawings to be handed back to the company.”
Honda has taken this important step due to car assembler’s concern of rupee losing its value by over 5% in the past few months. The car assemblers claim that the cost of the vehicle becomes expensive due to the weak currency’s situation, which is highly unstable at the moment. It is said by the stakeholders that work started 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. The company has deferred the plan.
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.”
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.
by Aqsa Mirza