Atlas Honda Limited (ATLH) plans to expand its motorcycle exports in MY24, targeting a revenue of $25 million. The company has identified Iran and Iraq as potential markets for Pakistani motorcycles. In a recent corporate briefing, ATLH shared details about its financial performance in MY23, highlighting key insights and future projections.
Sales Performance
During the briefing, ATLH announced that it achieved sales of 1.1 million units in MY23, a slight decrease compared to the previous year’s 1.3 million units. Despite this, the company aims to sell over 1 million units in the upcoming year. ATLH also expects the industry volume to range between 1.3 and 1.5 million units.
Localization Efforts
ATLH emphasized its commitment to localization, revealing impressive progress in this regard. The localization level currently stands at 94.4% for CD70, 92% for CG125, and 84.3% for Pridor models. This achievement contributes to the overall growth and sustainability of the company’s operations.
Raw Material Supply
The company assured investors that it has encountered no difficulties in the import of raw materials, boasting a stock of up to 4 months’ worth of inventory. This robust supply chain management ensures uninterrupted production and efficient operations.
Impact of Import Restrictions
ATLH acknowledged the impact of import restrictions, stating that around 80% of Chinese players in the industry have exited due to these limitations. This development opens up opportunities for local manufacturers to capture a larger market share and contribute to the growth of the Pakistani motorcycle industry.
Challenges in Electric Vehicle Adoption
Addressing the topic of electric vehicles (EVs), ATLH expressed the opinion that EV bikes will take considerable time to gain popularity in Pakistan. The current availability of lithium-based e-bikes remains limited and expensive, with the majority of lithium supply allocated for EV production. E-bikes currently sold in the country rely on lead-acid batteries, which are considered less reliable.
Domestic Demand Dynamics
While 2/3 of domestic demand, driven by rural and remittance customers, remains intact, ATLH acknowledged a decline in urban demand due to inflation. This change in consumer behavior poses challenges and necessitates strategic adjustments to cater to evolving market dynamics.
