Honda Atlas Cars Limited (HCAR), a subsidiary of Honda Motor Co., Ltd, has confirmed that it will introduce a hybrid model in Pakistan equipped with Honda Sensing, an advanced driver-assistance suite designed to enhance safety and driving experience. The development was shared by HCAR’s President and CEO, Masaya Wakuda, during the company’s annual general meeting, in response to shareholder questions regarding the absence of hybrid options in Honda’s current local lineup. Wakuda highlighted Honda’s global leadership in hybrid technology, particularly in the United States, and reiterated the company’s intent to extend this expertise to Pakistan.
Wakuda noted that the upcoming hybrid electric vehicle (HEV) will not only bring fuel-efficient technology but also feature Honda Sensing, which includes functions such as collision mitigation, lane-keeping assistance, and adaptive cruise control. This move signals Honda’s intention to catch up with competitors in the Pakistani market, especially Toyota, which recently announced an investment of $100 million to expand its hybrid vehicle offerings in the country. The introduction of Honda’s hybrid model comes at a crucial time, as automakers are aligning their strategies with new government policies promoting cleaner and more sustainable vehicle technologies.
During the AGM, shareholders raised concerns regarding the government’s recent decision to permit the import of used vehicles up to five years old. The company’s chairman clarified that commercial import of reconditioned cars would only be allowed under specific conditions, noting that the policy is expected to generate additional revenue but also increase prices of such vehicles in the local market. Honda’s management also emphasized that the current Automobile Policy will continue until June 2026, giving the company a framework within which to align its new product launches.
Regulatory measures are playing a key role in shaping the auto sector’s future. The government has already introduced a 1% to 2% carbon tax on internal combustion engine vehicles to encourage adoption of hybrid and electric options, while also raising the sales tax on small cars from 8.5% to 18% in the latest budget. These steps were accompanied by the unveiling of Pakistan’s New Energy Vehicle (NEV) Policy 2025–30, which aims to reduce fuel dependence and curb emissions. For Honda Atlas, the introduction of a hybrid model with advanced sensing technology represents not only a response to shareholder expectations but also a strategic alignment with evolving market and regulatory conditions.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
