Report on Atlas Honda

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  • Topic: Motorcycle, Honda, Grand Prix motorcycle racing
  • Pages : 66 (12444 words )
  • Download(s) : 231
  • Published : May 29, 2013
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ACKNOWLEDGEMENTS

First and foremost, we would like to thank Almighty Allah who is the Omnipotent, Omnipresent and Sustainer of the universe and who gave us strength and courage to complete this report.

Secondly, we would like to thank our parents who strengthen their support to us throughout the course of this report.

We would also like to thank our group leader Mr. Saim Saeed Tanauli, Assistant Manager Marketing of Atlas Honda Limited for his generous co-operation and support.

Nabil Ahad Khan (EP110338)
Letter of Transmittal

21th April, 2013

Departmental Head
KUBS
Karachi

Dear Mr.Zaki

Subject: Submission of Term Report 2013

Here is the report that you asked us to prepare during the project development. The report contains in detail the strategies employed by Atlas Honda Ltd. It contains the macro-environmental, company and competitor, Micro-environmental and internal, strategic analysis and strategic implementation of Atlas Honda. It has been a privilege to work on this assignment and have put in our utmost effort in order to prepare a comprehensive report on the topic. Should you have any queries concerning the report, we will be happy to discuss them with you.

Thank You.

Sincerely,

Nabil Ahad Khan

RESEARCH HYPOTHESIS

Ho: Atlas Honda should continue product improvement at low cost HA: Atlas Honda should not continue product improvement at low cost

Ho: Atlas Honda should go for backward integration
HA: Atlas Honda should not go for backward integration

Ho: Atlas Honda should adopt proactive approach
HA: Atlas Honda should not adopt proactive approach

PAKISTAN’S MOTORCYCLE INDUSTRY
AN OVERVIEW

In Pakistan, motorcycle assembly started in 1964 when the local Atlas Group started assembling Honda motorcycles in Karachi. Currently in addition to Honda, the other Japanese brands being manufactured in Pakistan include Yamaha and Suzuki. The most successful design among the Japanese brands has been the Honda 70CC which enjoys tremendous popularity on account of its fuel economy, resale and low maintenance features.

The Pakistan Automotive Manufacturers Association (PAMA) was formed in 1984. Initially three motorcycle OEMs namely Atlas Honda, Dawood Yamaha and Suzuki Motorcycles Pakistan became PAMA members. The other founding members of PAMA were OEMs manufacturing Passenger Cars, Tractors, Light Commercial Vehicles (LCV’s), Truck & Bus manufacturers etc. In the 1990’s, three more OEMs joined PAMA, these were, Fateh Motors, Pakistan Cycle Industrial Cooperative Society Limited and Siagol Qingqi Motors Ltd (subsequently renamed Qingqi Motors Ltd.).

The Non-Japanese OEMs entered the Pakistani market in the late 1990’s by introducing clones of the popular Honda 70CC motorcycle using critical parts and components imported from China. For the basic frame and other low tech parts they used the local vendors (part suppliers) whose development had been facilitated by the Government of Pakistan’s indigenization / localization programs for the motorcycle industry. Other than the original 3 Non-Japanese OEMs who became PAMA members, the new entrants preferred to form their own trade bodies and as such are referred to in this study as Non-PAMA members.

Presently there are 43 OEMs producing various brands of motorcycles. Out of these 6 are PAMA members and the remaining 37 Non-PAMA members. The Engineering Development Board (EDB) issues licenses to the OEMs for undertaking assembly operations. The Pakistan Standards & Quality Control Authority (PSQCA) is responsible for monitoring the production of quality products by the OEMs. As such both the EDB and the PSQCA play an important role in the establishment, licensing and monitoring of the technical operations of the motorcycle assemblers.

Figure -4
Market Shares of PAMA & NON-PAMA Members

Market shares of the major OEMs are shown in Table 4.

|Table – 4...
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