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Launch of higher models of motorcycle: Atlas Honda to invest $200 million[/h]
November 01, 2013
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Atlas Honda, manufacturers of Honda motorcycle, a joint venture of Honda Motor Company, has decided to further invest $200 million for launching higher models of motorcycle, formal announcement of which is expected later this year by the Chairman Honda Motors. This was disclosed by Chairman Atlas Group, Yusuf H Shirazi in a letter to the Engineering Development Board (EDB).
The government recently issued SRO enabling M/s Yamaha Motorcycle Company to establish a plant in Karachi with an investment of $150 million. The company fought its case for years with assistance from Japanese embassy and finally Finance Minister Ishaq Dar decided to resolve all issues pertaining to the issuance of the SRO.
Yusuf Sherazi, in his letter, stated that the company appreciated the government for issuing transparent policy on the introduction of new technology in the motorcycle industry. The ECC decision in this connection and the ensuing SRO on the subject regarding the policy provides a level playing field to existing as well as "new entrants" to introduce "products with new technology". Previously, the debate had centered around giving policy incentives only to the so-called "new entrants" at the cost of existing manufacturers and vendors. The notification number 939(1) 2013 of October 21, 2013 by the Federal Board of Revenue (FBR) states that 'the expression new technology' and 'new entrants' shall bear the same meaning in respect of the motorcycle manufacturing.
This clarification has given the existing manufacturers the confidence that their application for introducing "products with new technology will now also receive the same treatment as well as incentives as stipulated," Sherazi added. According to Shirazi, Atlas Honda has invested over $300 million in the motorcycle industry and President of Honda Motor Company will visit Pakistan in order to mark the occasion of 50 years Atlas Honda Joint Venture in Pakistan later this year.
"Due to the positive implications of the new motorcycle policy, Atlas Honda is now planning for the introduction of further higher models. The company investment will be $200 million. The credit for this confidence lies clearly with the government's economic team," he continued. Shirazi further stated that creating a level playing field and giving equal incentives to both the existing as well as the new investors in the sector will be a hallmark of incumbent government's policy.
<center>Copyright Business Recorder, 2013</center>