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