FLASHNEWS:

Atlas Honda Outlines Growth Strategies Amid Market Shifts

Karachi: Atlas Honda Limited (ATLH) held its corporate briefing session, revealing key strategies aimed at boosting shareholder wealth through increased sales volumes, expansion in the after-sales segment, and a focus on higher-margin products. With double-digit sales growth anticipated in MY27, the company is poised for significant expansion in the near future.

According to JS Global, the company's leadership, including CEO Saquib Shiraz, discussed the potential for launching new models in response to growing demand for higher engine size bikes, driven by increased remittances. The company’s current production capacity stands at 1.65 million units annually, with post-expansion capacity expected to reach 2.0 million units by December 2026, representing a capital expenditure of Rs5-6 billion.

ATLH is strategically navigating market dynamics, such as the decline in sales from Chinese competitors and the rising trend of consumers opting for motorcycles over four-wheelers due to recent oil price hikes. The company maintains a strong focus on localizing production, with 95% of its 70cc bikes sourced locally, helping to manage input costs amid global commodity price fluctuations.

Despite not increasing prices for three years, ATLH has managed to sustain its customer base and remains optimistic about future demand, especially given its strong ties to the farming sector. The briefing noted that while rumors of a new auto policy circulate, no official changes affecting the two-wheeler segment have been announced.