Honda Atlas Cars Made A Profit Of 3.16 Billion Rupees Without Launching The New Model Of Honda City

Honda City Concept Pakistan (11)

The financial results of Honda Atlas Cars are in and it looks like the company is on steroids. Honda Atlas posted a profit of Rs. 3.16 billion, a whopping 195% increase if we compare it with the profit of Rs. 1.07 billion posted by the company a year before, for the same month.

Let me tell you the real reason why the profits of Honda Atlas increased before we jump to any conclusion. Unlike Indus Motors, Honda Atlas’ profits do not come from the sale of record number of vehicles, rather because of tax claimed by company in the last quarter of FY15, which amounts to a sum of Rs. 405 million. In fact, the company’s revenue declined by 4% in the current fiscal year, as many customers who were waiting for the launch of 2015 Honda City switched their loyalties to the 11th generation Toyota Corolla XLi and GLi after the Honda Atlas disappointed them by launching a Minor Model Change (MMC) of the then ongoing Honda City instead of launching a new model.

Although the sales of Honda City are now stabilising as there is no new Honda City coming anytime soon, which is forcing the die hard Honda loyalists to buy the ongoing model with a heavy heart.

The question here is why Honda Atlas is holding up the launch of new City when the car has already completed 7 years in Pakistan. Will Honda launch the 6th generation of Honda City in Pakistan or skip the 6th generation altogether and launch the 7th generation in 2019-2020? Let us know about your thoughts in the comment section below.

Fahad Ullah

I build products and review cars for PakWheels. I am also famous for typing more words than anyone wants to read.

  • Zuhaib Khan

    Honda/ Atlas probably decided to stagger rolling out newer models to Pakistan, It was a surprise even for dealership insiders as I know a senior tech in Lahore at a Honda dealership who had even went to Thailand at start of last year for a course on the next gen City. Following the foot steps of Suzuki and Toyota and milking everypenny off consumers huh… 🙁

  • Saad

    Higher profitability is primarily due to favorable exchange rates for local assemblers. Taxes only accounted for 0.4 Billion, the rest is because of lower COGS. That’s very basic dude ! No doubt Pw’s blogs are its weak link…

  • M. SHEHRYAR SETHI

    that would be just WRONG!!!!!!!!!!! play the game by rules… launch the next model on tim e atleast 5 years not even 7 years. …we should not compromise on our standards of life and compromise in everything !!!!!

  • Zohaib Malik

    I think you are missing the point here. I think this is a car blog and not an investment blog where the writer would explain the nitty-gritties of how to read Financial Statements and how exchange rates affect the bottom line of any company. I think the point here is, despite having the capital and favorable profitability why isn’t Honda launching the new City.

  • Ahmed Noor

    The most simple thing to say is this the Honda city has more features then Honda Civic such as dual cabin A.C and few more. which why they making delays. And you know that 1.3L cars should have less features then 1.8L cars.

  • Fahad

    Honda modulo is flop…if honda doesn’t launch city new model nxt year their sales decline more bcoz company already claim they launch new model in 2017, so in 2016 only idiot go for honda city…

  • Fahad

    In pak everyone want to make more money with little investment….honda also follow this rule

  • Talib Haider

    This blog is targetted towards ‘enthusiastic’ car lovers who do not understand the value of local business. This article tries to reason but then wanders off in a completely different direction. Which basically makes a poiny that has no clear conclusion.

  • rashid

    Loved the looks of Hondas over toyotas even before I owned any, but the phatta suspension and the ever so thin steel sheet (kaaghazi) body and very steep price makes it a totally worthless purchase, buy a japenese vehicle and have a little peace of mind.

  • rashid

    They honestly need to take time printing articles and proof reading, which should be done by different people not just the author.

    Secondly English is a foreign language for us, although we’ve been reading writing since ever, but we think in our local language first then transliterate it in English. So it is difficult to match the quality (grammar, style, etc) of articles written by native speakers, ask them to write anything this good in Urdu! That said, PW authors still need to work on their fact finding, grammar, style, and editorial process, because you need to be a writer too and not just a car enthusiast!

    Anyway I still appreciate the effort PW is doing because not many others are doing something like this or anything close to this! So three cheers for PW! I hope PW will keep improving their work and people keep criticising on bad things and appreciate things that are well done.

  • TheMan

    may be new model has some deficiency or discrepancy !!

  • Arif

    Significant delays in launching next generation models of city and civic have caused significant loss of share of Honda in the local market. If Honda continue to follow this strategy, it will certainly loss a lot in the long run. Toyota’s share in the 1300 cc and above have significantly increased during the last year.

  • Max Central

    Actually the problem are people of Pakistan. They never appreciate any new thing easily. This is the main reason why companies don’t want to change their already successful models in the market. Believe me I know people here still love old Reborn more than current model of Civic. Even if Honda continues its old reborn it will remain be success. Even i was very disappointed when they changed the model :). It takes years to establish itself in Pakistan and recover its investment and making profit out of it. God knows what happens to the new model :).

  • Ahsan Raza

    Hi Fahad and every one…Any idea when the new city would be launched ..2016 or 2017 ??

  • Maair Mukhtar Mughal

    Hi Fahad Bhai, I Love HACPL But I am Very Much Disappointed From HACPL By Delaying The Launch Date Of The Seventh Generation Honda City But I am Very Happy Because The Launching Of The Tenth Generation Honda Civic,Thank You!

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