One of either Pakistan’s economic conditions or fear of the rising competition has forced Honda Atlas Cars Pakistan (HACP) to delay the launch of their new locally assembled car.
According to sources, Honda had already given all the “drawing of dies, tools, and molds to local vendors some six months ago.”
A Honda vendor went on record and claimed that:
HACP has now asked local vendors to cancel their activities for parts development. They also asked for the drawings to be handed back to the company.
Honda has taken this drastic step on the back of car assembler’s concern of rupee losing its value by over 5% in the past few months. The car assemblers claim that the cost of the vehicle becomes unfeasible due to currency’s situation, which is highly volatile at the moment.
Vendors further added:
Economic conditions, uncertain rupee-dollar rates, reports of imposing additional regulatory duties on raw materials, etc have compelled the company to defer the plan to roll out new model.
The car in question is 1,200cc Honda Brio, which the company promised to launch in Pakistan by 2019. The company also claimed that Brio would “add more than 3,000 units in the company’s total production.”
However, HACP official claimed that Brio’s future in Pakistan is still undecided and has nothing to do with ‘economic conditions’, as the vendors have been arguing.
He provided clarity on the situation and stated:
Its launch is neither final nor dropped. It is yet to be finalized for entry into the Pakistani market. It is in planning phase.
There have been no official reports regarding the matter but by the looks of it, Honda is approaching this matter with extreme caution, which is not a good sign.