Shams ul Nisa

Atlas Honda’s affordable and dependable motorcycles have become a vital mode of transport for the farmers and rural communities in Pakistan, enhancing mobility and contributing to economic progress, as modern farming techniques reshape the country’s agriculture sector, reports WealthPK.

Additionally, the modernization of Pakistan’s agriculture sector through advanced farming technologies and mechanization has enhanced productivity and rural incomes, driving greater demand for efficient transportation. Atlas Honda’s affordable and durable models are meeting the growing demand in rural areas, enhancing connectivity and supporting economic activity.

The company has made motorcycles more accessible, improving livelihoods and fostering development in the farming communities by prioritizing affordability. Pakistan’s economy is recovering, with the GDP growth projected at 3.4% in FY25, driven by reforms, lower inflation, and higher remittances, boosting rural demand for motorcycles. During the nine months (April-December 31, 2024), the company’s net sales increased 27.2% to Rs146.8 billion.

The gross profit soared by 79% to Rs14 billion, supported by strong sales and a stable exchange rate. Furthermore, the company’s strong performance is driven by its focus on operational efficiency and quality manufacturing. Its advanced manufacturing facilities in Karachi and Sheikhupura enable efficient production and seamless distribution of motorcycles across Pakistan.

Despite a rise of 24% in administrative expenses due to inflation and CSR initiatives supporting the rural communities, the ATLH posted a remarkable 65% year-on-year increase in profit before tax, reaching Rs17 billion. Investments in advanced manufacturing technologies continue to enhance efficiency and sustain the company’s growth.

Through strategic partnerships with banks and microfinance institutions, the company offers financing options that allow even small-scale farmers to purchase motorcycles with ease, reducing financial barriers and enhancing rural connectivity. Despite climate-related challenges, the agriculture sector is projected to grow by 2.1% in FY25, driven by investments in farming technology and increased imports of agricultural machinery.

Motorcycles have become essential for the farmers, providing a reliable transportation to enhance productivity and market access. The ATLH’s affordable and durable motorcycles support rural connectivity, enabling farmers to transport goods, access essential farm inputs, and navigate between fields, reinforcing their role in the agricultural value chain. Thus, the company remains confident in its growth prospects as the country’s economy continues to stabilize.

The company plans to expand its product lineup with innovative models designed for rural users while boosting production capacity to meet the increasing demand. It remains committed to improving livelihoods and strengthening its position as a leader in sustainable mobility solutions as it expands and innovates.

Credit: INP-WealthPk