This coming week will see the debut of the company’s first SUV. The launching date for the new HR-V has finally been announced by Honda Atlas Cars Pakistan (HACPL) on their social media platforms. The car will premiere on October 21, 2022, according to the business. When Profit questioned Amir Nazir, General Manager of Sales and Marketing at HACPL, about whether the HR-V will be released on the anticipated date, Amir responded, “Yes, In sha’Allah.”
There will be three different versions of the HR-V available. Two completely disassembled (CKD) editions and a fully assembled (CBU) unit will be available. The VTi and VTi S, two CKD variants that include traditional combustion engines, will be available. The CBU model, which is the vehicle’s hybrid version, is anticipated to go on sale after its aforementioned brothers with combustion engines.
HACPL’s two-pronged strategy is probably a result of their inability to mass-produce hybrid engines to meet demand at a time when the industry’s supply chains are restricted by the administrative monitoring of CKD kits by the State Bank of Pakistan (SBP) and the erratic nature of the PKR. Furthermore, because producing a hybrid variant is more expensive than producing a conventional combustion engine car, the decision to import the vehicle directly in CBU form rather than commit to developing a CKD model.
The Auto Industry Development and Export Policy (AIDEP) 2021–26’s reduced import taxes on parts for hybrid vehicles would have helped HACPL. The cost advantages are questionable, though, given that hybrids typically have higher upfront expenditures. Given the industry-wide decline in sales statistics, investing significant sums of money in a more expensive model would have been a bad move for HACPL. As a result of importing the CBU model, HACPL is able to localize the new hybrid engines piecemeal and build their supply chain infrastructure. As a non-plug-in hybrid vehicle, the HR-V would be accountable for the following:
The variety of crossover sports utility vehicles (CUV) existing throughout the Pakistani automotive market, with practically every brand now having their own offerings in the category, will likely be the direct rival to the HR-V. The HR-V cannot be directly compared because of the lack of an upfront price announcement. However, the KIA Sportage, the Oshan X7, and perhaps the Hyundai Tucson and the Haval H6 will be the comparisons that are made the most frequently.
In terms of sales volume, Sportage unquestionably dominates the CUV market. Consumers who might not have the funds to acquire the HR-V in this market or who might be wary of HACPL’s maiden launch into the market are likely to find it to be a more competitive purchase as a result of its recent discount across all of its incarnations. The X7 is anticipated to be the HR-main V’s rival because it will share the same vehicle generation as its overseas brothers. The X7 will probably be the competition that the HR-V competes against because of its long waiting lists and high on-payments of Rs 1 million.
Haval H6 and the Hyundai Tucson deserve special consideration. The first is based on its market accessibility in comparison to all other CUVs, while the second is based on sharing the same vehicle generation as the HR-V.
According to Shabbir Uddin, Director of Sales and Marketing at Master Changan Motors, the CUV market has increased from 5% to 20% over the past three years and is predicted to grow from 20% to 37% by 2030. The launch of the HR-V will now provide HACPL with a completely new market to expand its reach.
The more pressing query, though, is whether it is even feasible to construct a hybrid vehicle in Pakistan. HACPL’s choice of a CBU shows that even for a firm of their scale, such a task is herculean. This question then directly raises the issue of what will happen to the hybrid version of the Haval H6 and the Corolla Cross from Toyota Indus Motor Company, which are set to debut later this year and next year, respectively. The Cross will only be a hybrid vehicle as of right now, which puts it in a much more risky situation regarding what the future holds.
