LAHORE: With its production jumping from 100,000 units in 2001 to a staggering 2.2 million today, the all-revved-up motorcycle industry has outpaced all the large scale manufacturing (LSM) sectors, an industry official said on Wednesday.
“Until now the motorcycle market in Pakistan was dominated by 70 cc models. This trend he added is gradually changing as demand for 125 cc bikes is now growing at a very rapid pace. Keeping this trend in mind Atlas Honda has introduced next generation high-tech 150 cc model,” Afaq Ahmed, GM Plants Atlas Honda, told media at the launching ceremony.
Ahmed informed the press that rapid growth in motorcycle sales has encouraged Honda and its vendors to invest $160 million on capacity building --$110 million by AHL and $50 million by its vendors and group companies over the period of five years.
“Under joint venture agreement Honda Japan contributes 35 percent of total equity of AHL. This ratio of foreign direct investment (FDI) speaks volumes of our vision towards the progress of the country,” he added.
The AHL official said the new self-starting 150cc motorcycle is built on the latest technology, which not only provides a steadier ride and best fuel economy in its class but also gives unprecedented safety and security features to fit the requirements of Pakistani customers.
“This model comes with an anti-theft magnetic ignition protection system that ensures that the bike is operated only by its original key,” Ahmed said. To a question, he said that the annual capacity of AHL plants -after expansion- stands at 1.35 million units per annum and production figures of last year were 920,640 units.
“With increased production and another production increase under consideration we foresee no demand-supply issue in near future,” he asserted. Going forward, he pointed out that the company is already exporting some existing models to Afghanistan and Bangladesh. “We have a dedicated department that keeps on looking for opportunities for exports. We are looking forward towards that aspect as well. We exported 6456 units in 2015-16 and 7321 units in 2016-17,” he told the media. Ahmed also mentioned that the AHL has started a project for localisation of carburetor assembly as well. “Within a year’s time we are hopeful to achieve the goal,” he added.