Honda Atlas is the dark horse of the Pakistani auto industry. The company is the weakest link of the Big 3 automakers in the country. However, this year, Honda is coming out stronger than most contenders. According to a recent report by Topline Securities, Honda’s net sales came up to Rs. 22 billion in the first quarter of model year 2022 (1QMY22), generating a healthy gross profit of Rs. 1.6 billion in three months.
The company managed to improve its net sales from Rs. 6.5 billion in the same period last year. At that time, the company’s gross profit came up to Rs. 54 million.
Note: Honda Atlas’ Model Year (MY) goes from April to March. 1QMY22 means the period of April 2021 – June 2021.
Honda Atlas’ Accounts Takeaways
During 1QMY22, there was a significant rise in car production. The industry’s production crossed 45,000 units as compared to 6,000 units in the same period last year. Production of Honda cars reached 7,826 units compared to 2,263 units in the same period last year.
The company’s financial and other charges reached Rs. 203 million in 1QMY22 against Rs. 215 million in 1QMY21. Similarly, other income of Honda Atlas rose to Rs. 355 million in June 2021 from Rs. 91 million in June 2020 due to improved liquidity.
A Look into the Future
The COVID-19 pandemic situation has gotten a little better, so car production and sales will significantly improve. Honda Atlas is optimistic about improving its numbers even more as supply chain and chip shortage issues improve moving forward.
Moreover, the company plans to upgrade and introduce new models to compete with rising competition in the Pakistan market. Take the new Honda City for an example. It’s finally here and already taking over the market.
A growing network of dealerships, product line upgrades, and the best quality of after-sales services are a part of the company’s game plan.
I am not surprised as Honda has a fan base and these people will not dream of buying a Chinese box on wheels with bells tied as ribbons around it.