Despite successfully exporting a limited batch of Honda City units to Japan, Honda Atlas Cars (Pakistan) Limited (HCAR) has stated that Pakistan remains at a disadvantage compared to other Asian subsidiaries, with large-scale exports remaining unfeasible for now.
This was shared during a corporate briefing session held on July 16, 2025, which was attended by brokerage house Arif Habib Limited (AHL), as noted in a report shared on Wednesday.
“Regarding the export of vehicles, Honda confirmed that 38 units of the Honda City 1.2L were exported to Japan. However, the company emphasised that due to the current lack of export-supportive government policies and high input costs, Pakistan faces significant challenges in competing with other Asian subsidiaries,” said AHL in its briefing takeaways, quoting the management.
The automaker shared that discussions with the government are ongoing, “but large-scale exports remain constrained for now”.
Earlier in March, Honda Atlas Cars (Pakistan) Limited, a subsidiary of Honda Motor Co, officially commenced exporting Completely Built Units (CBUs).
The country’s auto sector, largely dominated by Toyota’s Indus Motors, Honda Atlas and Pak Suzuki, relies heavily on imported parts and is generally involved in assembly.
However, in recent years, companies have taken steps to position Pakistan as an export hub.
In July last year, Indus Motor Company Limited (IMC), the assembler/manufacturer of Toyota-brand vehicles in Pakistan, initiated the export of certain vehicles to other Toyota-affiliated companies.
Despite these developments, Pakistan’s auto sector remains engulfed in various challenges, including high production costs, supply chain issues and volatile exchange rates.
Meanwhile, HCAR management, in its briefing session on Wednesday, informed that the HR-V Hybrid was launched on July 14, 2025, and test drive units are now available nationwide.
“The initial customer response has been positive and the company expects to sell 400-500 units monthly,” the management was quoted as saying by AHL.
Meanwhile, regarding the impact of used car imports, Honda clarified that the majority (~90%) of these imports fall under the 1000cc category and do not directly impact the Honda City segment.
“The company is awaiting further clarity from an expected government policy update in September and will assess the implications accordingly,” the management shared.
