Vehicle: HONDA ATLAS CARS PAKISTAN - Analysis of Financial Statements Financial Year 2006 - 2001 Q 2010 OVERVIEW (October 09 2009): Honda Atlas Cars Pakistan Limited (HCAR) is a joint venture between Atlas Group Pakistan and Honda Motor Company Limited, Japan. The company was incorporated in November 1992 and is listed on all the three stock exchanges of Pakistan.
M/s Honda Motor Company Limited is the holding company with 51% shares. HCAR's principal activities are assembling, manufacturing and selling of passenger cars and spare parts. The company has introduced four new models of Honda Civic and four models of Honda City and it introduced the third generation Honda City on January 31, 2009.
Honda Atlas Cars Pakistan had a market share of 11% in FY09, following Pak Suzuki (market share: 52%) and Indus Motors (market share: 35%), the two leading car manufacturers in Pakistan. The market share of Pak Suzuki declined to 52% in FY09 from 62% in FY08. Dewan Motor's market share also decreased from 5% in FY08 to just 2% in FY09. However, Indus Motors and Honda Atlas gained in terms of market share. The market share of Indus Motors improved from 26% in FY08 to 35% in FY09. Honda Atlas' market share surged from 7% in FY08 to 11% in FY09. Sales of Pak Suzuki and Dewan Motors plunged considerably by 56% and 75% respectively. Indus Motors and Honda Atlas also registered lower sales but by 29% and 28% respectively. Although Honda Atlas ranks third in case of car sales, it led the motorcycle segment with a market share of around 72.5% in FY09.
The performance of the car assemblers remained lacklustre during FY09 owing to the economic meltdown in the country. In the wake of rising steel prices, appreciation of yen against rupee and imposition of 5% FED in the budget of FY09, the car assemblers passed on the increase in cost to the consumers. The increase in car prices weakened the demand for cars. Also, high interest rates and reduction in car financing facility...
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