Honda Atlas Starts Exporting Locally Assembled Cars
In a major development for Pakistan’s automobile sector, Honda Atlas Cars (Pakistan) Limited, a subsidiary of Japan’s Honda Motor Co., has officially started exporting Completely Built Units (CBUs). The first shipment, consisting of 40 Honda City cars, has been exported to Japan, according to a statement by the Ministry of Industries and Production.
This marks an important milestone for the local auto industry, which has historically focused on assembling cars for domestic use rather than producing vehicles for global markets.
Speaking at the export ceremony, Special Assistant to the Prime Minister Haroon Akhtar Khan praised the efforts of the company. “The hard work and dedication of Honda Atlas is commendable,” he said, adding that Pakistan’s auto sector is now ready to emerge on the global stage. He also mentioned that this achievement aligns with Prime Minister Shehbaz Sharif’s vision of driving economic growth through exports.
A Shift Towards Exports
Until recently, Pakistan’s automobile sector has largely depended on importing parts and assembling vehicles locally. Companies like Toyota Indus Motors, Honda Atlas, and Pak Suzuki have dominated the local market. However, this trend is beginning to change.
In July 2023, Toyota Indus Motors exported 50 units of popular models, including the Fortuner, Corolla Cross, and IMV series, to other Toyota-affiliated companies. Similarly, Hyundai Nishat recently announced the export of Santa Fe Hybrid CBUs to Sri Lanka, highlighting their commitment to international standards and government policies.
Changan Pakistan also made headlines in 2023 by exporting a batch of 14 Oshan X7 SUVs to Kenya and Tanzania, becoming Pakistan’s first volume exporter of technologically advanced SUVs.
The Challenges
Despite these positive steps, the auto sector still faces issues like high production costs, unstable exchange rates, and supply chain disruptions. However, the government has reiterated its support through favorable policies to help manufacturers enter international markets.
Encouraging more companies to follow suit, Haroon Akhtar emphasized that increasing exports will lead to industrial growth and economic stability.
As local car manufacturers begin making their mark globally, do you think this could be a turning point for Pakistan’s economy?