KARACHI: Honda Atlas Cars (Pakistan) Limited on Monday announced to suspend production due to prevailing economic conditions in the country.
In a communication received by Pakistan Stock Exchange (PSX), the car manufacturer stated that considering the current economic situation of the country, the government had restored to stringent measures including minimizing the import of Completely Knocked Down (CKD) kits and raw materials, the company’s supply chain had also been disrupted by such measures.
“As a result, the company has also to rationalize its production and ultimately to shut down its plant from October 04, 2022 to October 11, 2022,” the company added.
Prior to this, other car manufacturers have also stop production due to same reasons.
Honda Atlas Cars (Pakistan) Limited is a joint venture between Honda Motor, Japan, and the Atlas Group, Pakistan.
The Company was incorporated on November 04, 1992 and listed on Pakistan Stock Exchange Limited.
The joint venture agreement was signed on August 05, 1993. The groundbreaking ceremony was held on April 17, 1993, and within a record time of 11 months, the construction and erection of machinery were completed.
The first car rolled off the assembly line on May 26, 1994. The official inauguration was honored by the then President of Pakistan, Late Sardar Farooq Ahmad Khan Leghari.
Nobuhiko Kawamoto, President of Honda Motor, Japan, and the late Yusuf H. Shirazi; Founder of Atlas Group were also present to grace the occasion.
The Company enlisted on then Karachi & Lahore Stock Exchanges (now Pakistan Stock Exchanges) and Initial Public Offer (IPO) was made in November 1994.
On July 14, 1994, car booking started at six dealerships in Karachi, Lahore, and Islamabad.
Since then, the dealership network has expanded and now the Company has 37 3S (Sales, Service, and Spare Parts), 17 2S (Service and Spare Parts), and 5 1S (Spare Parts) authorized dealerships in Pakistan.
All dealerships are constructed in accordance with the standards defined by Honda the world over.
The Company started production in 1994, with the launch of the 5th generation of the Honda Civic in Pakistan.
Later on, the Company enriched the product line with the launch of Honda City in 1997 and Honda BR-V in 2017. The Company consistently increased production with the progress of the car market and to meet the growing customer demand.
A major plant expansion was done in 2006 and the production capacity was increased to 50,000 units/ year.