Following in Suzuki’s footsteps, Atlas Group — the owner of Honda Atlas Cars Limited (HACL) — has decided to offer sizeable support to flood victims across Pakistan. According to details, the conglomerate will offer $10 million (Rs. 220 million) to assist the flood relief efforts.
Atlas Honda Limited, Honda Atlas Cars (Pakistan) Limited, Honda Atlas Power Products (Private) Ltd., in Pakistan, and Asian Honda Motor Co., Ltd. in Thailand have jointly contributed to this cause.
The companies are dispatching food boxes, shelters, tents, and water filtration units through 10,000 touch points of Atlas Honda motorcycle dealers and community networks. The group expressed its solidarity with the flood victims and promised the continuation of their efforts toward complete rehabilitation.
So far, Suzuki and HACL are the only two automakers to announce aid despite their ongoing troubles. Both companies are struggling to maintain healthy sales and revenue amid the production cuts.
In its latest quarterly overview, HACL foresaw a decline in car demand by up to 35 percent, citing price hikes, delivery delays, and production cuts. It claimed that 40 percent of its total sales are from consumer financing. However, that percentage will likely decline to 30 due to high-interest rates, the automaker predicted.
The company also pointed toward the State Band of Pakistan’s (SBP) new CKD clearance approval instrument as a major factor in delaying operations. The purpose of the move is to preserve Pakistan’s dwindling foreign exchange reserves.
Due to these factors, HACL also predicted a decline in profits in the future.
