The local motorcycle manufacturer dubbed Atlas Honda Limited (ATLH) seems geared up to meet a new target of $25 million in exports in MY24. In a corporate brief session to inform investors regarding company’s financial performance in previous manufacture year 2023, Atlas revealed the plan to export its bike to Iran and Iraq.

“The company has received an export order which will add approximately $25 million to the company’s topline in MY24, Ismail Iqbal Securities (IISL) quoted the company’s management.

Industry Analysts consider Iraq and Iran the potential markets for Atlas Honda as the motorcycle makers has penetrated into both markets.

How Honda Performed in MY24?

In a briefing session, management disclosed that the company sold 1.1 million units in MY23 against 1.3 million last year. Atlas Honda expects to sell around 1 million units in MY24 with projected industry volume ranging from 1.3 to 1.5 million units.

“As for the domestic demand pattern, currently, two-thirds of the demand – which comprises rural customers and remittances customers – is intact. Urban demand, however, has been affected due to inflationary pressures,” the management was quoted by IISL.

The bike maker further informed that the localization of its prominent bike CD70 reaches at 94.4% whilst CG125 and Pridor at 92% and 84.3%, respectively. Additionally, the company has didn’t confront any hindrance to import the raw materials and currently maintain the stock of raw material that can easily last up to 4 months.

ATLH also revealed that 80% of Chinese bike makers left the industry amidst the prevailing economic fuss as they couldn’t bear the brunt of prevailing import embargoes.

Concerning the electric bikes, the company said the electric will take years to become widely popular. And the reason behind the fact is not the price but the global shortage of lithium begot after electric cars started reigning the market.

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