Pakistan’s Automotive Sector Enters Export Market as Honda Atlas Ships Vehicles to Japan

Sun Mar 30 2025
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ISLAMABAD: In a landmark development for Pakistan’s automotive industry, Honda Atlas Cars Pakistan (HACPL) has started vehicle exports, dispatching its first-ever shipment of 40 Honda CITY 1.2L units to Japan.

This was announced by the Ministry of Industries and Production, terming it a significant step towards integrating Pakistan into the global automotive supply chain.

The launch ceremony, held at HACPL’s manufacturing plant, was attended by key government officials, industry stakeholders, and representatives from the company.

Special Assistant to the Prime Minister (SAPM) on Industries and Production, Haroon Akhtar Khan, was the chief guest at the event.

Pakistan’s auto industry on global stage

Speaking at the ceremony, Haroon Akhtar Khan commended Honda Atlas for achieving what he described as a “major breakthrough” for Pakistan’s auto sector.

He emphasised that the successful export of vehicles to Japan—a highly competitive and quality-conscious market—demonstrated Pakistan’s potential as a credible automotive manufacturing and export hub.

“The government remains committed to supporting the automotive sector through favourable policies and infrastructure development,” the SAPM said.

“This achievement aligns with Prime Minister Shehbaz Sharif’s vision of an export-driven and sustainable industrial economy.”

HACPL President and CEO, Takafumi Koike, highlighted the significance of exporting to Japan, noting that it underscored Honda’s commitment to innovation, quality, and sustainability.

“Meeting Japan’s stringent automotive standards is a testament to Pakistan’s improving manufacturing capabilities,” he said.

Chairman of HACPL, Aamir H. Shirazi, also addressed the gathering, expressing gratitude to the government for fostering a business-friendly environment.

He urged policymakers to continue facilitating local manufacturers to enhance exports and strengthen the country’s industrial base.

Export milestone and industry challenges

According to the Ministry of Industries and Production, the shipment of Completely Built-Up (CBU) units represents a pivotal step towards positioning Pakistan as a regional automotive exporter.

The initiative follows a similar move by Indus Motor Company Limited (IMC), the assembler of Toyota-brand vehicles in Pakistan, which began limited exports last year to Toyota-affiliated companies abroad.

Despite these advances, the country’s auto sector continues to grapple with several challenges, including high production costs, supply chain disruptions, and exchange rate volatility.

The industry, largely dominated by Toyota’s Indus Motors, Honda Atlas, and Pak Suzuki, has historically relied on imported parts and local assembly rather than full-scale manufacturing.

However, recent policy measures have encouraged local manufacturers to explore global markets, a shift seen as critical to the sector’s long-term sustainability.

At the event, Haroon Akhtar Khan encouraged other local manufacturers to follow HACPL’s lead and tap into international markets.

“Pakistan’s auto sector is ready to emerge on the global stage,” he asserted, reiterating the government’s commitment to supporting industrial growth through incentives and regulatory support.

Industry experts believe that Honda’s entry into the export market could pave the way for further investment, job creation, and technological advancement in Pakistan’s automotive sector.

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