ISLAMABAD – Honda Atlas Cars (Pakistan) Limited (HCAR) has stated that while the company successfully exported 38 units of Honda City 1.2L to Japan, large-scale exports remain unfeasible due to high input costs and a lack of supportive government policies. This was discussed during a corporate briefing on July 16, 2025, attended by Arif Habib Limited (AHL), according to a report shared on Wednesday.
HCAR management emphasised that despite ongoing discussions with the government, the lack of favourable policies continues to hinder Pakistan’s ability to compete with other Asian subsidiaries in vehicle exports. The company also noted that while exports of Completely Built Units (CBUs) officially began in March, large-scale shipments remain constrained.
Pakistan’s automotive industry, dominated by Toyota’s Indus Motors, Honda Atlas, and Pak Suzuki, has been making efforts to position itself as an export hub. However, challenges such as high production costs, supply chain disruptions, and volatile exchange rates persist. In a move to boost exports, Indus Motors started exporting vehicles to other Toyota-affiliated companies last year.
HCAR also introduced the HR-V Hybrid on July 14, 2025, with positive initial customer response. The company expects to sell 400-500 units monthly. Regarding the used car imports, Honda clarified that most imports fall within the 1000cc category and do not significantly affect the Honda City segment. The company is awaiting a government policy update in September to assess further implications.
