Honda Atlas Cars Pakistan has stepped into international territory, exporting 38 units of its 1.2L Honda City to Japan. It’s a big move for a company that’s mostly focused on the local market. But while it sounds like progress, Honda isn’t popping the champagne just yet.
In fact, this isn’t their first export shipment. Back in April, the Ministry of Industries and Production confirmed that Honda sent its first batch of 40 Honda City cars to Japan. So, this recent development adds to that momentum.
In a recent analyst briefing, the company pointed out what’s holding them back from going bigger: high production costs and government policies that just aren’t built to support auto exports. They’re still in talks with the authorities, but Honda says Pakistan is trailing behind countries like Thailand and Indonesia, which offer better support to their car industries. Simply put, the playing field isn’t level.
Honda Atlas – The Performance
Still, there’s been progress on the business side. Honda Atlas posted solid numbers for the fiscal year MY25. Revenue jumped 42% year-over-year to Rs78 billion, up from Rs55 billion last year. That kind of leap came from a 53% rise in unit sales, hitting 16,100 compared to 10,534 in MY24.
Margins also inched up—gross margins moved from 8.2% last year to 8.5% this year, thanks to currency stability. Net profit climbed to Rs2.7 billion (earnings per share Rs19), up from Rs2.3 billion (EPS Rs16.3) in MY24, which marks a 16.6% gain.
The Honda City remains the company’s best-selling model. Around 75% of its sales come from the 1.2L version, with the rest being the 1.5L variant. And it’s not just Honda seeing better days — the total passenger car market in Pakistan jumped 67%, with volumes reaching 125,533 units in MY25, compared to 75,227 in MY24. With those trends in mind, Honda’s management expects a 40 to 50% increase in sales for the next fiscal year.
The company is also preparing to push its hybrid lineup. It has pre-launched the HR-V hybrid and is already offering test drives. The plan is to sell 400–500 units a month and keep the price competitive by absorbing the NEV levy instead of passing it on to buyers.
In terms of localization, Honda is making steady progress: 74% for City, 64% for Civic, 52% for BR-V, and 61% for HR-V. But challenges remain. Management expects margin pressure ahead due to the weakening rupee and a key policy shift. The upcoming NEV policy only supports EVs and plug-in hybrids, which means regular hybrids like the HR-V are left out.
A Shift Towards Exports
It’s not just Honda trying to break into exports. Other players are already on the move. In July 2023, Toyota Indus Motors exported 50 units of the Fortuner, Corolla Cross, and IMV series to other Toyota-affiliated companies. Hyundai Nishat followed by announcing the export of Santa Fe Hybrid CBUs to Sri Lanka. Changan Pakistan also made waves by exporting 14 units of its Oshan X7 SUVs to Kenya and Tanzania — becoming the first from Pakistan to export technologically advanced SUVs in volume.
As for Honda, they say the recent tariff rationalization won’t affect them much, since 90% of their imports are in the 1000cc category — an area mostly untouched by the changes.
So yes, exporting to Japan is a big step, but it’s clear that consistent support, smart policies, and currency stability are going to matter more than a one-off shipment. For now, the momentum is there — the real test will be sustaining it.
