ATLAS HONDA COMPANY PROFILE

Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda Motor Co.
Ltd., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos
Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas
Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of
Bangladesh in 1971 after the fall of Dhaka. AHL manufactures and markets Honda
motorcycles in collaboration with Honda Motor Company. The Company also manufactures
various hi-tech components in-house in collaboration with leading parts manufacturers like
Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest
selling motorcycles in the country with an unmatched reputation for high quality, reliability
and after-sales-service.
AHL has undertaken to develop local manufacturing capabilities to the highest, economically
feasible level. While a major role in localization has been assigned to vendor industries, Atlas
has the countrys largest in-house manufacturing capability at its Karachi and Sheikhupura
plants. To support the production facilities, the company has established an R&D wing and
tool making facilities through CAD/CAM which are growing rapidly in size and function as
the company expands. Atlas has managed to execute 12 Joint Venture/Technical Assistance
Agreements between local vendors and foreign manufacturers for transfer of technology.
Besides, Atlas has directly executed 9 Joint Venture/Technical Assistance Agreements other
than Honda.
AHL management is striving to modernize company operations by adapting applicable
aspects of research and theory and more specifically, Hondas unique philosophy of hard/soft
technologies to the realities of Pakistani conditions. Company management structure, systems
and processes are changed according to the demands of the customer, growth and new
technology. Efforts are being made to develop participation at all levels of personnel in
decision-making and a substantial and effective delegation has been established at levels
where applicable. Various participation programs such as Ala Mayar Quality Circles
movement, launched in 1985, are strongly encouraged to allow constructive self-expression
and teamwork. The Company training and development programs encourage all members to
develop themselves and contribute to their full potential.

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AHL is playing a pioneering role in creating conditions for easy and confident use of
motorcycles all over the country. A vast and growing network of over 1600 sales service and
spare parts dealers has been established. In order to back up this system, Atlas has set up
Warranty & Training Centers (WTC) in Karachi and Lahore which provide several courses of
varying duration and complexity for motorcycle mechanics and users each year. Mobile
training facilities take the latest know-how, technology and maintenance of motorcycles to
major rural and urban centers around the country.
Annual Production Capacity

750,000

Authorized Capital

1.5 Billion (rupees)

Paid Up Capital

Rs. 1,034.066 Million

Karachi Plant
Company mother plant is based in the city of lights and provincial capital of Sindh, The
Karachi city. It is located at F-36, Estate Avenue, S.I.T.E. Karachi. Atlas Group signed
technical agreement with Honda in 1963 and plant started commercial production
subsequently. Plant spread over an area of 5 acres. In 1964, production began with 7
motorcycles per day. Now plant production has reached to 300 units in a day. Plant
manufactures CD 70 only.

Sheikhupura Plant
Another plant is situated in Sheikhupura city, Punjab. It is located at 26-27 KM LahoreSheikhupura Road Sheikhupura. The plant was built in 1981 and spread over an area of 27
acres with the establishment of modern and synchronized 500K plant in 2006. The plant
manufactures all four models i.e. CD 70, Pridor, CG 125 and CG 125 Deluxe.

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Export

Bangladesh

Regional Offices

Lahore: 1 Mecloed Road Lahore-54000 [ (042) 111-111-245, 37225015-17,

37233515-17 ]
Rawalpindi: 60-Bank Road, Saddar [ (051) 5120494-6, 5120497 ]
Multan: Azmat Wasti Road Multan-60000 [ (061) 4540054, 4540028, 4571989 ]
Rahim Yar Khan: Atlas Honda Limited, 4-B Zamindara Colony [(068) 5888809 ]

National Tax Number (NTN)

0801063-3

Company Registration Number

CUIN 0001569

Symbol of the Company

AHL

Stock Exchange Enlistments

Karachi Stock Exchange

Lahore Stock Exchange

Auditor of the company

Hameed Chaudhri & CO Chartered Accountants.

Legal Advisors of the company

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Mohsin Tayebaly & Co.

Agha Faisal Barrister at Law

Name and Address of Share Registrar

Hameed Majeed Associates (Pvt) Limited.

H.M. House 7-Bank Square, Shahrah-e-Quaid-e-Azam, Lahore

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VISION OF AHL

Atlas Honda limited, being Japanese, always believe in quality leadership customer
satisfaction and satisfaction of shareholders. The executives and managers at AHL are keen
about the staff cooperation and dedication. Thats why promoting teamwork culture is the
core activity of the company. The vision of AHL as follows:

To remain a market leader in the motorcycle industry and emerge as a globally

competitive center of production and exports.

The above statement clearly predicts the overall scenario of the management at AHL.

MISSION STATEMENT
Mission Statement, the statement that further reveals the practicalities of any organization,
comparable to its vision statement. The Mission Statement at AHL is highlighted below:

To be a dynamic profitable growth oriented company through market leadership

excellence in quality and service optimizing value for the shareholders and maximizing
exports
To give attractive return to business associates and shareholders as per their expectations.
Be a responsible employer and reward employees according to their abilities and
performance.
To be a good corporate citizen in order to fulfill its social responsibilities.
To create and foster a network of researchers, engineers, who will make unique
contribution to the development of motorcycle industry ensuring satisfaction of our

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valuable customers and protection of the environment by producing emission friendly

green products. .

The Honda Companys purpose is indispensable to all Honda associates, when it comes to
understanding the reason for the existence of the company. Top management at AHL try to
ensure that mission statement:
a) Is appropriate to the purpose of organization.
b) Includes commitment to comply with requirements and to continually improve the
effectiveness of quality management system.
c) Provides a framework for establishing and reviewing the specified objectives.
d) Is communicated and understood within the organization.
e) Is reviewed for continual suitability.

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STRATEGIC GOALS
Customers
Our customer are the reason and the source of our business. It is our joint aim with our
dealers to ensure that our customers enjoy the highest level of satisfaction from use of Honda
Motorcycles.

Quality
To ensure that our products and services meet the set standards of excellence.

Local Manufacturing
To be the industry leader in indigenization of motorcycles parts.

Technology
To develop and maintain distinct business advantages through continuous induction of
improved hard and soft technologies.

Shareholders
To ensure health and viability of business and thus safeguarding shareholders interest by
maximizing profit. Payments of regular satisfactory dividends and adding value to the shares.

Employees
To enhance and continuously up-date each members capabilities and education and to
provide an environment which encourages practical expression of the individuals potential in
goal directed team efforts and compensate them attractively according to their abilities and
performance.

Corporate Citizens
To comply with all government laws and regulation, to maintain high standard of ethics in all
operations and to act as a responsible members of the community.
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QUALITY POLICY

Commitment to provide high quality motorcycles and parts.

Right work in first attempt and on time.
Maintain and continuously improve quality.
Training of manpower and acquisition of latest technology.
Safe, clean and a healthy environment.
Market leadership and prosperity for all.

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MAIN PRODUCTS ATLAS HONDA

CD 70
Honda CD 70 is the first choice in motorcycles. The New CD 70 gives a perfect blend of
Japanese technology along with charismatic design, in addition to its established superiority
in terms of durability and fuel economy.
Further, 3 years engine warranty not only provides peace of mind to its valuable customers
but also the best value for their money.

New CD 70 is an ideal
combination of attractive
design with super econopower and smoke-free 4Stroke engine, which
promises you the most
economical ride of your life.
The new eye-catching
graphics, comfortable new
seat design and aerodynamic
shape have made Honda CD
70 best choice and a perfect
partner. Further, high resale
value of Honda CD 70
proves to be a life time asset for its customers. Atlas Hondas extensive dealership network
makes the motorcycle and its parts, available at your doorstep and its countrywide warranty
facilitate provide you trouble free companionship.

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CD 70 DREAM

A new motorcycle regime has arrived The Honda CD Dream

making every dream of the youth come true Sleek, sporty, stylish design all with an amazing
feeling of individuality
Powered by a superior and
durable Econopower engine
thats engineered with
technology, delivering
exceptional fuel efficiency
and is environment friendly.
Strong rear wheels and a
comfortable seat ensure a
thrilling driving experience.
This is why we say Chalao Apni Dream!

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CG 125

Honda Motorcycles are defined by Quality, Performance, Speed, Economy Petrol and Re-sale
Value. All these have managed to successfully bag your trust on the New Honda CG125. It is
a stunning result of
advanced Japanese
technology and right up
there as an outstanding
performer representing
all the qualities that make
Honda motorcycles so
special.
The 125 cc 4-stroke
engine generates 11Horse Power with low fuel consumption. It is ideal for high speed, long runs and rough
pathways.
Honda CG125 has a CDI Ignition System and a 12-volt battery (instead of 6-volt). The
headlight and indicators are brighter, with an easy starting-up of the engine.

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DELUXE 125

The Deluxe is the unique

combination of power &
style, a new addition in the
company as 125 cc. The
new power up 4 stroke
engine gives same fuel
economy as CG 125. An
ideal model for youth and
high income segment.
Honda Deluxe has heavy
duty front absorbers and
130 mm brake drum with environment friendly non-asbestos brake shoes, Elegant contoured
seat for better riding posture.

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MARKETING MIX
There are four elements of marketing
1) Product
2) Price
3) Place
4) Promotion

1. PRODUCT
Atlas Honda has two basic products
Honda CD 70
Honda CG 125
Both of them are the four stroke motorcycles. Both the products have a good repute in the
market and that is the reason that Honda has approximately 63% market share now a days.
The basic reason of the success is the quality maintained by the company throughout its
career.
These two models of HONDA are being manufactured in Sheikhupura and Karachi. Each
plant has a capacity to produce 250 motorcycles per day, but still the market demand is not
being fulfilled.
In order to increase market share marketing department perform following activities
New model
Changes in design
In-house production

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 NEW MODEL
In order to get more market share atlas Honda has been introducing new models over the
time. The latest model was launched by company in 1992-93. Previously there was a small
fuel tank but in the new model company introduced a large fuel tank as compared to the
previous one. But the company always maintained the quality of its motorcycle.

CHANGES IN DESIGN
There was a great demand from the customers to launch a new model but it is a difficult job
to launch a new model so in order to fulfill the customer wants the company has a policy to
change the stickers of fuel tank and side covers and some other nominal changes in indicators
headlights etc. time by time, in order to satisfy customers needs. But the engine and other
main accessories are the same.

INHOUSE PRODUCTION
At the outset of company 90-95% parts were imported from Japan and were assembled in
Pakistan. With the passage of time company introduced the concept of localization.
Company encouraged the local vendors and suppliers to produce the parts of motorcycle
according to the level of Honda international. So in order to maintain the quality, the parts
made by local vendors were approved by the Honda international and then they were used in
local production. So now Atlas Honda has managed to localize almost 89% of the parts. Still
11% parts are being imported from Japan. Atlas Honda also provides assistance to their
vendors to maintain high quality. They send their engineers to check the quality and to train
the vendors in order to produce the required qualitative product. This all is done under the
head of marketing department.

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COMPETITORS BRANDS & MODELS

Yamaha
Yb-100
Excellence
Yama-4
Suzuki
SD-110
SD-Flash
Sohrab
JS-70
JC-125 (china)
Saigol Qingqi
PH-70
Hero
RF-70
RF-125
Star
DS-70
C-70 (CBU)
Lifan
LF-70
LF-150
Jailing
JH-70 (Remote-Self)
JH-70 (Without)

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2. PRICE
Atlas Honda has four products and their prices are as under
Honda CD70

Rs. 63500

Honda CG 125

Rs. 103400

Honda Deluxe 125

Rs.124000

Honda CD 70 Dream Rs.67500

The company uses the single price strategy. It means the product has the same price all over
the Pakistan.
Initially Atlas Honda was the only producer of qualitative four-stroke motorcycle in Pakistan.
So they were taking the advantage of this monopolistic situation and using the price
skimming strategy and were charging higher prices.
Till 17th may 2003 company had the high prices for its motorcycles. Due to these high prices
the competitors found a gap and entered into the market with low prices and start capturing
market share. After the intense research work Atlas Honda was in a position to reduce prices.
The major objective to reduce the prices was to increase the market share and to utilize full
production capacity. So company has reduced Rs. 10,000 in HONDA CD70 and almost Rs.
5000 in CG 125.

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COMPETITORS BRAND PRICES

Yamaha
Yb-100
Excellence
Yama-4

Rupees
61800
62500
63300

SD-110
SD-Flash

64000
76500

JS-70
JC-125 (china)

43500
62000

PH-70

42500

RF-70
RF-125

46000
70000

DS-70
C-70 (CBU)

40400
52000

LF-70
LF-150

40000
85000

JH-70 (Remot-Self)
JH-70 (Without)

46000
42000

Suzuki

Sohrab

Pak hero
Hero

Star

Lifan

Jailing

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3. PROMOTION

Promotion mix is
Advertisement
Sales promotion
Personal selling

ADVERTISEMENT
Atlas Honda uses the print media as well as electronic media for advertisement. In print
media the company gives advertisements in newspapers and it also uses billboards on the
road side for the promotion of the product.
On electronic media, company gives their advertisement on GEO channel during hourly
news. Company has a contract with AdCom (advertising agency) for all of its advertising
activities.

SALES PROMOTION
Atlas Honda also promotes its product through different sales promotional activities.
Company sponsors different functions and activities in main cities.
Company provides rewards and incentives to their dealers on achieving targets. Company
sends their successful dealers to different trips all over the world.

PERSONAL SELLING
The company does personal selling as well, not to individuals but to institutional customers.

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4. DISTRIBUTION
Atlas Honda gained good market share due to its strong distribution network. For distribution
atlas Honda has divided the whole country into two regions.
1. South region
2. North region

SOUTH REGION
It includes following territories
Karachi
(Karachi region covers whole Sindh province)
Quetta
(This covers whole Baluchistan province)

NORTH REGION
It includes following three territories
Multan
(Its includes all lower Punjab cities)
Lahore
(It covers cities from upper Punjab)
Rawalpindi
(It covers Islamabad and NWFP.)

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5S DEALERS
This is a new emerging trend set by atlas Honda. Now days the company is emphasizing on
5S facilities to their customers through 5S dealers.
5s stands for the following five facilities
1. Sale
2. Service
3. Spare parts
4. Special sale
5. Second hand sales

SALE
It includes only the sale of new motorcycles.

SERVICE
It includes after sale service to the customers like Warranty claims, Tuning of motorcycles,
Repair of motorcycles etc.

SPAREPARTS
Company provides spare parts facility to their customer.

SPECIAL SALE
It deals with the credit facility. In special sale, the dealer provides the customer with credit
facility at his own behalf. Atlas Honda does not provide any support for credit sale.

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SECOND HAND SALE

Dealer also deals in second hand Honda motorcycles. The company wants that the customer
might not switch to other brand even in second hand motorcycles.

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PRODUCTION CAPACITY IN PAKISTAN OF 2 WHEELS

Company

Capacity

Atlas Honda Ltd.

750,000 units

Dawood Yamaha Ltd

200,000 units

Suzuki Motorcycles Pakistan

Ltd.

65,000 units

Saigols Qingqi Motors Ltd.

100,000 units

Sohrab

42,000 units

others

400,000 units

PAKISTAN PRODUCTION CAPACITY

Atlas Honda Ltd.
Dawood Yamaha Ltd

26%
48%

3%
6%
4%

13%

Suzuki Motorcycles Pakistan

Ltd.
Saigols Qingqi Motors Ltd.
Sohrab
others

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SWOT ANALYSIS

STRENGTHS
A cordial, friendly and frank environment free of any communication gaps.
MBO (Management by Objectives) Targets for the future are set well in advance by the
management at Atlas Honda, which provides the employees with goals to work upon and
improve any shortcomings.
Punch Card system, which creates a sense of accuracy and responsibility in the employees
to reach on time and helps to maintain discipline.
A standardized uniform for all, which removes any possibility of discrimination and
promotes cordiality.
Job Rotation is practiced on a regular basis aiding the employee to add to his skills.
Kaizen (Japanese principle of continuous improvement) and Ala Mayar (quality
standards) strictly followed. This makes sure that the organization and the team at Atlas
Honda, keep improving themselves and their surroundings.
Well-established brand name in the market.
Maximum employee satisfaction Turnover less than 1%
Adequate exposure to the surroundings to newly recruited employees before assignment
of work responsibilities.
Continuously growing demand for Honda motorcycles all over Pakistan.
Expanding network of dealers and service facilities.
Committed management and a dedicated workforce.
Transparent and merit-based selection program for new employees.

WEAKNESSES
Inadequate backup strategies and planning for unforeseen and unpredicted competition.
Lack of an established Marketing Research department, therefore lacking in proper
forecasting of future activities.
No major changes to existing models or introduction of a new model since past few years.
Lack of advertising campaigns for promotion of the product and entering newer markets.
Lack of extracurricular activities and sponsorship for sports etc.

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OPPORTUNITIES
Huge market size covering all of Pakistan, with lots of un-ventured markets needing focus
and attention, for development into future profitable territories.
Population growing and youth need to be focused on, as future prospects of motorcycle
customers.
Poor quality and performance of Chinese motorcycles can be enchased by Atlas Honda,
to project their ever improving quality and sustainability to the customers.
Various successful ERP implementations in organizations, supporting need for
implementation at Atlas Honda, aiding smooth and efficient flow of business processes.
Low prices by competitors induced Honda to decrease its prices resulting in excess
demand for the market leader, expected to grow at a larger scale.
Ever increasing media for advertising provides Honda with opportunities to project itself
in the best-suited way to its prospect customers.
Growing second hand exchange of Honda motorcycles due to the cost factor. Honda
dealers now practice this process, which gives Honda great deal of control over its
circulation of motorcycles in the market.

THREATS
New Entrants such as the growing brands of Chinese motorcycles in the market pose a
serious threat for Honda but due to the fact, that Honda has reduced its prices, they have
increased their market share.
Political Instability and Unhealthy Law & Order Situation are also a major threat for
Honda. Honda customers are reported to have said that they were robbed of their
motorcycles after just having taken the motorcycle out of the factory. Honda is reported
to have lost quite a great deal of market, especially in Karachi, due to these snatchings.

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BIBLIOGRAPHY
As the data for Pakistan automobile market and especially the motorcycle market is skater on
the cyber space so here are some links from which data about the particular market obtained.

https://en.wikipedia.org/wiki/Atlas_Honda
http://atlashonda.com.pk
https://www.facebook.com/Atlas.Honda.pk/

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