Government urged to lower mark-up to rational level: new Honda City car launched

The high exchange rate, rising mark-up and unaffordable leasing cost have made the vehicles more expensive in Pakistan, and the government should bring down the mark-up rate to a rational level and also provide finance to the industry on easy terms.
This was stated by Honda Atlas Cars Pakistan Chairman Yusuf H Shirazi while talking to newsmen on launching of Honda City-2009 here on Saturday. He said that the government has levied all kinds of taxes on automobile, which is also one of the major factors of pushing car prices up.
Pakistan is an agricultural country but is unfortunately importing wheat, vegetables, and other food items. The country, like other economies, is presently facing economic recession, which is unusual in its kind. The government needs to reshape its priorities and divert focus on agriculture and development of small and medium enterprises to increase GDP so as enable to get out of the recession, he said.
He said that the local industry has achieved overall 50 percent deletion. Honda Atlas is working on 70 percent deletion of the press parts and 50 percent of the plastic parts, he added. Earlier, at the launching ceremony, he said that his company had contributed Rs 4.9 billion to government exchequer last year, adding to the Atlas Group's total Rs 15 billion--about 2 percent of total government revenues.
"Honda Atlas Cars has paid Rs 40.65 billion to government exchequer, to date, since its inception. Since 1994 we paid Rs 1257 million as dividend to our shareholders. During 2007-08 we invested Rs 3.5 billion on capacity expansion," he said. Shirazi said: "We started with 308 associates in 1994 with total annual wages of Rs 28.3 million per annum, increasing to 973 associates this year with total annual wages of Rs 330 million. Since 1993 we paid Rs 2.2 billion as salaries and wages. We have produced and sold more than 152,000 units to-date."
Honda Atlas Cars (Pakistan) President and Chief Executive Officer Atsushi Yamazaki said the launch of the new City marked a very important day of Honda's history in Pakistan. He said that Honda City made its debut in 1996 to meet the requirements of Honda customers in Asia, and as a result was introduced in Pakistan in 1997.
"Over the last 10 years the 'City' has grown to be an important model, sold in 39 countries, reaching beyond the Asian region. I feel proud to share with you that the cumulative sales of 'City' recently passed the one million-unit mark."
He said that the all-new City has been designed to break through the existing concept for sedans. "It has always been Honda's goal to create new value for our customers to achieve a level of joy and satisfaction beyond customer's expectations." Chief Engineer Honda R&D and Assistant Large Project Leader for the new City Keiichi Ooka gave an overview of the design concept of the new model that is based on the Arrow Shot Form.