Business

Honda Civic to hit the streets sooner than expected

Company starts pre-booking, development causes share price to hit upper limit

Farhan Zaheer June 06, 2016

Company starts pre-booking, development causes share price to hit upper limit. PHOTO: PUBLICITY/HONDA

KARACHI: Contrary to a February report that quoted a “well-informed source” saying that the latest Honda Civic model will not be launched till the end of this year or the start of 2017, car buyers should now see the next generation of the model sooner than imagined.

Honda Atlas Cars - the local affiliate of Honda Japan - has begun pre-booking orders for its latest Civic 2016 at a partial payment of Rs1 million from Monday, marking a huge step towards the launch of the model. The company has, however, not stated when the official launch would take place.

Honda did not respond for a version on the development.

As anticipated, the announcement gave a boost to the company’s share price at the Pakistan Stock Exchange (PSX), which opened at its upper limit and stayed there till close of session. Its share price ended at Rs322.45, up 5% or Rs15.35.

The benchmark KSE-100 index also ended positive, up 129 points, in a post-budget rally in select sectors.

“The early launch of the Civic model will help the company recover the lost ground it ceded to Toyota Corolla Grande,” said Sherman Securities analyst Sadiq Samin.

“The current model has not been well-received and this is why its sales have been on a continuous decline. However, there has been a lot of public interest in this upcoming model which may help the company generate expected sales volumes,” he added.

KASB Securities also commented that the pre-booking news counters an earlier news report of a possible delay in the launch of Civic in late 2016 or early 2017. “In comparison, we expect some near-term dip in sales for Corolla Altis including Grande (1,800cc segment cars), comprising not more than 20% of total Corolla sales (15% of total Toyota sales),” it said.

In financial year (Apr-Mar) 2016, Honda Atlas Cars posted a net profit of Rs3.6 billion, up 12% compared to Rs3.2 billion in the previous year. The growth in profit has, however, come mainly on the back of increased sales of Honda City.

Honda Atlas Cars is the smallest of the three players in Pakistan’s market compared to Pak Suzuki Motor, the market leader, and Indus Motor, the makers of Toyota Corolla.

Published in The Express Tribune, June 7^th, 2016.

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COMMENTS (21)

Khan | 8 years ago | Reply @Mussa: Be more aware and read around. These numbers are everywhere.. Just to let you know Honda is sold in huge numbers in every country including developed nations. This model was designed and originated from USA and is already a hit worldwide being rated the best car of 2016. For a country like Pakistan this is a premium car for enthusiasts. I think you cannot even afford this car and feeling bad about that which is why you are venting away here. People who can, love this car already and have booked this one in advance without any information.Stop cribbing and either work hard to earn that much money or pray for yourself. Goodluck

Mussa | 8 years ago | Reply @Khan: its not called marketing strategy Einstein. It's state of the economy where our manufacturing sector is not developed and Japanese car makers have the monopoly. The day Pakistan becomes an industrialized nation, Honda will pack up their bags and find other under developed markets to sell their cars. You are classifying Honda as a premium car for enthusiasts, only a fraction of population. We're discussing Honda being responsible for their advertisement not marketing strategy. I am sure you're Honda rep. How come you have so much knowledge about their numbers?

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London Banker | 8 years ago | Reply ibs: London has narrow roads, but the traffic never stops. There is parking everywhere including the busiest places (Bond Street etc.) but you were probably unaware or unable to afford it. Yes there is no parking anywhere if you are used to double parking on the streets of Pakistan. Yes some people do drive the "tiniest little toy cars". 2 things; whats wrong with that? Can you tell me if our big luxury civics have half the technology or comfort of these tiniest little toy cars? Again yes people pay taxes and a congestion charge to avoid jams; for Pakistanis yes they might be exorbitant for the people here not so much. No Londoner will ever complain about a congestion charge but yes Pakistanis always will. Its to encourage use of public transport (best in the world). People are not packed like Sardines; you do sound like a tourist though so you probably took the wrong train line. Lastly, bigger and better cars on the roads of Karachi. Can you name a few? The only "big" cars we have are civic and corolla? Can we compare these to the average car here? A corolla XLI doesnt even have power windows "dude". So the question really is what are you on about?

ibs | 8 years ago | Reply @London Banker: Dude. What are you on about? London has the narrowest roads with no parking anywhere. People drive the tiniest little toy cars there an pay exorbitant taxes on gas and "congestion". The bulk of the population is packed like sardines in the "tube". You will see bigger and better cars on the roads of Karachi than in London.

Adnan | 8 years ago | Reply Only Good Governance made this possible ! Imagine Honda Civic in Pakistan !!

AllahDitta | 8 years ago | Reply That extremely high price tag includes taxes imposed by the government on imported cars, Honda is not responsible for this.

Saad | 8 years ago | Reply That's how much an Accord or a Camry costs in the US. What a freaking ripoff. Japanese auto manufacturers have been given an unfair monopoly in Pakistan.

Khan | 8 years ago | Reply @musa Calm down bro nobody is forcing you to buy this and this car is not even targetting people like you as of right now. It is primarily focused on honda enthusiasts and let me tell you that they have already booked for 1 yr without telling anything. Its called marketting strategy

Mussa | 8 years ago | Reply @Khan: I think you are the ignorant one or perhaps rep of Honda. It should all be clearly stated on web site or when making payment of 1 million, the cost, delivery dates, and a singned contract when Honda takes the deposit money. If not delivered on time, Honda must pay the penalty. Don't bring government into this. If I'm buying this car, I will check the above and if not satisfied with Honda policy, would not pay them a single rupee. At the end, it all depends on if our own public is smart or dumb. There is no such thing in the west of making public fool like this. I would buy a used car than pay Honda advance money for their new model.

London Banker | 8 years ago | Reply I did read your comment Acorn Guts and I admire your guts for demanding Torque out of a Civic! Also before someone judges me, I dont own any cars. I use public transport. So not looking down upon any brands or people who own them. More sad that a car like Civic can demand a 2.8m price tag and get our nation excited. We should demand quality and pay for quality - Audi, BMW, Mercedes, Volkswagen do not just make "luxury cars" alone - They have basic models and hybrids which should come and replace these three car makers putting unsafe and low quality junk on our roads. But everytime this happens, this mafia greases the ministers and people in government The only way for this to improve is for the public to reject these car makers for 2-3 years. If you keep sending then into billions of profits, junk is all you will get. In 2.8m (£18K) you can get a decent Lexus in London, one of the most expensive cities in the world with some of the richest people. Then why should the upper middle class of Pakistan pay 2.8m for a third class civic that probably doesn't have 4 airbags?

Acorn Guts | 8 years ago | Reply @London Banker: I do apologise for my silly comment. I forgot that in your presence one must not wonder why Honda would tune down their latest 2 litre vtecs so much. Funny how some people insist on 'reading into' the comments without reading the comments first.

poorcitizen | 8 years ago | Reply Look at the price! for some 2.7 million is nothing.I wonder why haven't I earned so much.People are dying of hunger and richi richs are stucked whether to buy turbo or not.Lac 3 4 doesn't matter for them.

London Banker | 8 years ago | Reply The comments section is more entertaining than the article. 2.8 million for a Civic!! "Turbo" !!! Also like one of the commentators expecting "torque" out of a civic. Its a cheap family car mate, relax.

Acorn Guts | 8 years ago | Reply Torque ratings on these new engines is atrocious! Just 187nm out of a 2 litre vtec?

Saeed | 8 years ago | Reply @Faisal: Can you please share the source where these are available. Regards

Khan | 8 years ago | Reply @H.A Khan, please do not be so ignorant. You are posting comments without any knowledge. There are 2 variants. 1.8 & 1.5 Turbo 1.8 is for 2.4 Million 1.5 Turbo is for 2.8 Million Delivery date is 2 months after official launch of the car by the company Official launch is expected end june, early july Model design is all over the internet as it is launched in the rest of the world car engine cc is 1.8 & 1.5 turbo

Faisal | 8 years ago | Reply @H.A.Khan, dont read newspapers only. Price is known delivery date is known model design is known car engine cc is known

Ali | 8 years ago | Reply Superb car already launched in U.A.E wow amazing car :)

AD | 8 years ago | Reply Even if 10000 bookings are made,10000 million PKR (USD 100 million) in cash for the company.Interest money alone will make good profit to the company.Even before a single car delivery.

Raw is War | 8 years ago | Reply @H.A.Khan: Most likely this money will be out to good use, to purchase SKDs and assemble the cars. Two birds woth one stone.

H.A.Khan | 8 years ago | Reply What an interesting strategy: Price un-known Delivery date un-known Model design un-known Car engine CC un-know and they are taking advance bookings with Rs 10,00,000 payments Where are the regulatory agencies of the country????

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