Honda Atlas Cars Limited (HCAR) recently released its financial report for the fiscal year ending March 31, 2023 (FY23), revealing a significant decline in Honda profits. The company's profit after tax plummeted by 89.6 percent year-on-year (YoY), reaching Rs. 260.14 million compared to the previous year's profit of Rs. 2.5 billion. Surprisingly, Honda Atlas Cars did not announce any cash dividend for the year, indicating the challenges faced by the automaker. Financial Performance Overview During the fourth quarter (January-March) of FY23, Honda Atlas Cars experienced a loss of Rs. 5.8 per share, contrasting with the earnings of Rs. 5.7 per share in the previous quarter. The deviation primarily resulted from higher-than-estimated operating expenses, potentially caused by substantial foreign exchange losses during the quarter. The company's sales throughout the year witnessed a 12 percent decline, totaling Rs. 95.08 billion compared to Rs. 108.04 billion in the corresponding period last year. In the fourth quarter of FY23, the company's revenue amounted to Rs. 22.3 billion, reflecting a 3 percent decline on a quarter-on-quarter (QoQ) basis. Despite multiple price revisions during the quarter, the decrease in volumetric sales contributed to the decline in revenue. Gross Profit and Margin HCAR reported a gross profit of Rs. 7.16 billion, marking a 29.4 percent increase compared to the same period last year. The gross margin reached 12.5 percent, the highest recorded since the first quarter of FY18, which may indicate improved cost management and operational efficiency. Distribution and Marketing Costs One positive aspect highlighted in the financial report was the decrease in distribution and marketing costs. In FY23, these costs amounted to Rs. 902.37 million, showing a reduction compared to the previous year's figure of Rs. 1.14 billion. Other Income Honda Atlas Cars experienced a 15.8 percent increase in other income during the full year, totaling Rs. 2.32 billion compared to Rs. 2 billion in the previous year. In the fourth quarter of FY23, other income surged by 110 percent on a QoQ basis, amounting to Rs. 683 million. This increase can be attributed to attractive deposit rates. Finance Cost One of the significant challenges faced by Honda Atlas Cars was the exponential surge in finance cost, which escalated by a staggering 549.8 percent during the full year, from Rs. 53.26 million to Rs. 346.14 million. This rise in finance costs exerted additional pressure on the company's financial performance. Earnings per Share (EPS) HCAR's earnings per share (EPS) for FY23 stood at Rs. 1.83, in stark contrast to the EPS of Rs. 17.58 reported in the previous year. The decline in EPS reflects the challenging operating conditions and financial impact experienced by the automaker. Stock Performance The adverse financial results had an impact on HCAR's stock performance. The company's scrip at the bourse closed at Rs. 97.5, down 3.74 percent or Rs. 3.79. The trading volume amounted to 128,577 shares on the given day. Honda's Production and Sales Challenges Honda Atlas Cars faced a tumultuous year in terms of production and sales. The company's output was severely affected for two months due to supply chain issues resulting from import restrictions. In fact, last month, Honda recorded minimal sales, with only 207 cars sold. Surprisingly, the sales of the Honda Civic, the company's flagship sedan, reached an alarming zero. However, the recent notification from Honda indicates that production will soon resume, citing a "slight improvement in the accessibility of trade financing facilities" as the catalyst. Unfortunately, the exact date of production resumption was not disclosed. Future Outlook Considering the ongoing challenges in the car market, it is expected that Honda's sales will remain lukewarm at best. The company will need to navigate through various obstacles, including supply chain issues, competitive market dynamics, and changing consumer preferences, to regain its foothold in the industry.

When the ongoing economic turmoil has left Pakistan’s import-dependent local industry in something of a daze, car and bike companies  are trying everything to make their survival possible. Prominent bike makers ‘Honda Atlas’ and ‘Yamaha Pakistan’ came with d ifferent offers to at least maintain foot traffic to their dealerships and service stations. Honda’s Limited-Time Offer In a social media post, Honda said that the offer is only for a limited period of time, from ‘May 22 to May 28’, for all models and can be availed at the company’s 4S service station. The offer includes a free checkup of air filter, brake shoes, and engine oil. It is pertinent to mention that tuning does not come in the package. (a) BE VIGILANT – Not Totally Free There will be a surprise for those who came to the company’s service station thinking that ‘all is free.’ Once the checkup is done and you have replaced the engine oil, brake shoes, or filter, the mechanic will show you the bill. So, you must be vigilant before availing of this service, as the company has mentioned ‘free checkup”. What Yamaha Offers? Yamaha offers the same – free checkup and oil changes in a few locations. In a social media post, the company stated, “Rev up your engine and get ready for an even smoother ride with a free oil change for your Yamaha. Give your Yamaha the proper care it deserves, ensuring maximum performance and longevity.” [gallery bgs_gallery_type="slider" ids="176739,176737"] Comparing the offers from both motorcycle manufacturers, Yamaha faced criticism from customers for offering limited options. The company offered the facility in only six areas. Even a customer can’t avail oil change and checkup service in the same camp. Both offers are available in different areas.  What do you think about the offers from both companies? Drop your thoughts in the comments section. 

Apparently, to increase sales and attract more consumers, Atlas Honda has introduced a new offer. The company has launched the "Atlas Honda Online" offer, stating, "Purchase your new Atlas Honda CD70 from Atlas Honda Online now." In a social media post, the company shared a link to follow the whole process. Procedure to Buy Honda CD70 Online Opening the link will take you to the Honda Bikes website with the option "Buy a New Motorcycle" at the top with different filters, i.e., price, color, category, features, etc. After selecting the bike of your choice and clicking on the "Buy Now" button, it will take you to the next page asking for your details. You must fill out the form on that page, including your name, CNIC number, address, city, etc. After filling out the form, an order will be placed, and the company will send you an SMS with your order number. Then a company representative will call you to confirm the order and finalize the purchase. It is pertinent to mention that the company has relaunched this offer, earlier there were prizes on it. Current Honda Bike Prices  On April 15, Atlas Honda again increased the prices without citing any reason. After the last hike, these are the current prices of Honda bikes in Pakistan. Honda CD 70 costs Rs. 154,900 after an increase of Rs. 5,000. The bike's old rate was Rs. 149,900. Honda CD 70 Dream now costs Rs. 165,900 against the old rate of Rs. 160,900. The bike saw an increase of Rs. 5,000. The new price of Honda Pridor is Rs. 203,900 against the old rate of Rs. 197,900. The bike saw an increase of Rs. 6,000. Then comes the second most famous bike of the company, Honda CG 125. Its price was increased by Rs. 7,000, taking the rate to Rs. 229,900 compared to the old price of Rs. 222,900. Then we have Honda CG 125 SE. After observing an increase of Rs. 10,000, it now costs Rs. 275,900 instead of Rs. 265,900. Honda CB 125F saw an increase of Rs. 15,000, taking the bike's rate to Rs. 380,900 from 365,900. Honda CB 150F's new price is Rs. 473,900 compared to the old rate of Rs. 458,900, meaning it also saw a jump of Rs. 15,000. The last one is CB 150F SE, with a hike of Rs. 15,000. The bike's new rate reached Rs. 477,900 compared to the previous price of Rs. 462,900. What is your take on the new online purchase offer by Atlas Honda? Tell us in the comments section.

The ongoing economic crisis has shattered all the local car makers but the Japanese car giants Pakistan Suzuki Motor Company (PSMC) and Honda Atlas carries a different story to present. As per Pakistan Automotive Manufacturers Association (PAMA) Toyota managed to sale more cars than its peer Suzuki and Honda last month - a strange sight to behold. What Report Revealed? PAMA report says that Suzuki and Honda Sold 1,681 cars combined, fewer than 1,948 vehicles that Toyota Indus Motors sold last month. Furthermore, Honda Atlas car sales posted a staggering low of 75%, selling 207 units last month against 835 units in March’23. Meanwhile, Suzuki witnessed a new low of 74% in April, selling 1,474 cars. The company sold 5,628 cars in March. (MoM decline: 74%) PSMC sold 820 units of Alto, 177 units of Suzuki Cultus, 99 units of Suzuki Wagon R, 145 units of Suzuki Swift, 163 units of Suzuki Bolan, and 70 units of Suzuki Ravi. Whilst Honda sold 159 unit of City and Civic and 48 units of BR-V and HR-V. On the Contrary, Toyota reported a slight jump of 2% in its sales. The company sold 1,948 units in April against 1,912 units in March. The company sold 1,007 units of Corolla and Yaris and 941 units of Fortuner and Hilux. Sales Decreased by 85% As per Pakistan Automotive Manufacturers Association (PAMA), car sales are plunged by 85% year-on-year (YoY), selling 2,844 units in April’23 compared to 18,626 vehicles sold in the corresponding period of last year. Similarly, month-on-month sales witnessed the similar trend – decreased by 52% sold 4,463 last month vehicles against 9,351 cars in March. The reason behind this nosedive is the poor sales of Pakistan Suzuki and Honda Atlas last month. What do you think about a decline observed in sales of Honda and Suzuki? Drop your thoughts in the comments section.