Atlas Honda Plans to Expand Export Reach to $25 million

CG 125


Atlas Honda Limited, a leading motorcycle manufacturer in Pakistan, is gearing up to achieve a new export target of $25 million in MY24. With its eyes set on international expansion, the company revealed plans to export its bikes to Iran and Iraq during a corporate briefing session to investors. This move comes as the company aims to strengthen its foothold in potential markets and maintain a competitive edge in the motorcycle industry.

Growing Export Opportunities

Ismail Iqbal Securities (IISL) quoted the management of Atlas Honda as confirming the receipt of an export order that is expected to contribute around $25 million in MY24. Industry analysts view Iraq and Iran as attractive markets for the company due to its established presence and growing demand in these regions.

Honda's Performance and Future Projections

During the briefing session, Atlas Honda disclosed that it sold 1.1 million units in MY23, slightly lower than the 1.3 million units sold in the previous year. For MY24, the company anticipates sales of approximately 1 million units, while the industry volume is projected to range between 1.3 to 1.5 million units.

Addressing Domestic Demand and Localization

The management highlighted that domestic demand remains stable, with two-thirds of it coming from rural customers and remittances. However, urban demand has been affected by inflationary pressures. Atlas Honda also emphasized its commitment to localization efforts, with the popular bike CD70 achieving an impressive 94.4% localization rate, surpassing CG125 and Pridor models at 92% and 84.3%, respectively. Maintaining a stable supply chain, the company assured investors that it has not experienced disruptions in raw material imports and maintains a stock that can last for up to 4 months.

Impact on the Industry

Amid the current economic downturn, the motorcycle industry in Pakistan faced significant challenges. However, Atlas Honda emerged as a strong player with sustainable growth plans. The company revealed that 80% of Chinese motorcycle manufacturers exited the market due to the prevailing import restrictions, leaving Atlas Honda in a favorable position to capture market share.

Conclusion

Atlas Honda's strategic move to expand exports to Iran and Iraq marks a significant step towards international growth. With a clear focus on localization, stable supply chain management, and a strong product portfolio, the company aims to sustain its competitive edge and capitalize on emerging opportunities in the motorcycle market. As Atlas Honda continues to navigate economic challenges, its commitment to innovation and market expansion remains a key driver of success in the ever-evolving industry.

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