Atlas Honda foresees export to Central Asia

Atlas Honda Ltd (AHL), which is exporting thousands of motorcycles to Bangladesh and Afghanistan, foresees Central Asian markets for exports during the next few years. The Japan based Pakistani company has exported over 12000 motorcycles during the last five months, exceeding the same exports made during the financial year 2010-2011.
The company is currently looking to Iranian markets for exporting the products. The plans to reassemble the motorcycles in Bangladesh, where the company is already exporting its motorcycles, are also under consideration; AHL General Manager HR, Admin and Corporate Affairs Razi ur Rahman said this during a recently held media briefing at the company’s Sheikhupura plant.
Besides the export and trade of localised motorcycles, the company has also contributed over Rs7 billion in duties and taxes on a sale of 544331 units during the last financial year. According to Razi, together with other Atlas Group companies, the company contributes almost Rs19.38 billion towards national exchequer which is around 2 per cent of the country’s total revenue collection. Moreover these manufacturing plants in Pakistan are providing jobs to thousand of skilled and semi-skilled labour of the country. Atlas also expects to produce almost 0.7 million motorcycle during the current financial year. Besides, the AHL is also committed to the development of local motorcycle industry and move towards 100 per cent localisation. Talking about the new entrants, Razi said that though his company has no objection over the introduction of new companies in this sector but the proposed policy for the new entrants specially ‘Yamaha Motors’ of Japan was unjustified. Government was trying to accept the demands of zero import duty rates for five years, made by Yamaha. The policy, if approved for the new company, would be disastrous for the existing companies. The government, instead of this, can offer land and other facilities to the new companies but the lifting the whole import duty would definitely affect the existing companies of the auto sector. In reply to a query, he said that the company has already recommended Ministry of Commerce to include the motorcycle industry in the negative list of trade with India, as the import from huge markets of the neighbouring country would damage the local industry. AHL General Manager R&D and Projects Afaq Ahmed said on the occasion that the motorcycle industry is likely to become the second largest industry of exports after textile. While talking about the increased prices of motorcycles despite the localisation of the industry, he said, “The Company did not compromise on quality and standard of its products, therefore the existing prices of various kind of motorcycles is reasonable against their costs”. The company’s products which include CD70, CD100, GC 125 and CG 125.