Atlas Honda, one of the largest motorbike manufacturers in the country, has posted record-breaking sales stats of motorbikes during the year 2018-19.
The automotive prices in the local industry of Pakistan have seen a massive climb during the last year on the back of a continuous devaluation trend of Pakistani rupee against the US dollar. Such economic instability forced all the automotive companies to revise its prices multiple times during 2018-19. Despite the rising prices, Atlas Honda reached a milestone of selling 1.135 million units during the time as mentioned above period. Note here that last year; the company reached the 1 million sales mark for the first time in its history and that too in such an unstable economic situation in the country. Without any further impact, the sales have even crossed the previous record of 1.08 million units in 2017-18. Atlas Honda has recorded a consecutive 1 million sales during the last two years.
The dipping currency has left the automotive companies with no option but passing the impact of operational cost to the customers. The demand for Atlas Honda’s motorbikes has also gone higher in the local market despite all the unfavorable prevailing circumstances. The motorbike manufacturer also aims to increase its overall market share by the expansion of its dealer network in the country. Furthermore, the company has also introduced new products in accordance with its business strategy for the coming years, which is highly based on a strengthened customer connection. Under the current inflation rate, the buying power of the consumers has decreased significantly, which leaves them with no better choice than carrying their needs on the back of two-wheelers. The prices of cars have gone past Rs.1 million, which is way out of the reach of a large proportion of the population of Pakistan. Therefore, motorbikes provide inexpensive means of transportation to the citizens and Atlas Honda being the largest motorbike manufacturer in the country has got the maximum benefit of the need. Moreover, the ride-hailing services such as Uber, Careem, Bykea, etc. also contribute to these increasing sales.
On the other hand, the growth of the industry has lost its charm as it was recorded at 5% during this period. On three consecutive occasions previously, the growth rate was recorded in double figures. It is worthy to mention here that the purchasing power of consumers was most affected in the previous year, which sums up the growth worsening situation. Despite the record number of sales, the profit of Atlas Honda dropped by 31%, which shows that the expenses and operational cost have increased.
That’s it for now. Stay with PakWheels for more relevant statistical updates on the automotive industry.
