History of Pakistans Automobile Industry

Following international trends, the automobile industry in Pakistan showed substantial growth in the years under review. The growth was aided by favorable government policies during this period and levy of lower import duties on raw material inputs and on intermediate products. A significant rise in demand for automobiles, propelled at least partly by easy availability of auto leases and loans from banks and leasing companies at low financial cost, was instrumental in the fast growth of the sector. The expansion in the sector, besides boosting the countrys industrial output, also provided significant direct and indirect employment opportunities. In the past years, there has been a high growth of more than 40 percent per year in the automobile market. The growth declined somewhat in 2008 and 2009 due mainly to a dip in demand because of rising prices and lease financing becoming expensive for the consumers. Pakistan Car Industry The first automobile plant was set up in May 1949 by General Motor & Sales Co. It was set up on an experimental basis, however grew into an assembly plant. Seeing such progress, three major auto manufacturers from the US collaborated with Pakistani business men to set up; Ali Automobiles to manufacture Ford Products in 1955, Haroon Industries to assemble Chrysler Dodge cars in 1956, Khandawalla Industries to assemble American Motor Products in 1962, and Mack Trucks Plant in 1963. However towards the end of the seventies all automobile assembly in Pakistan stopped, until 1983 when Pak Suzuki started manufacturing their vehicles in Pakistan. Further Toyota Indus Motors was set up in 1990, followed by Honda. Today we have four major automobile manufacturing industries, these include, Toyota Indus Motors, Pakistan Suzuki, Honda Atlas, and Diwan Farooq Ltd. The most recognized are Toyota, Honda, and Suzuki; producing the majority of the light weight vehicles.Now in Pakistan the growth rate of sale of car is 49.63% in the recent year.

HISTORY OF HONDA ATLAS CARS

Honda Japan Soichiro Honda had a great interest in automobiles. He worked as a mechanic at a Japanese tuning shop, A self-taught engineer, he later worked on a piston design which he hoped to sell to Toyota. The first drafts of his design were rejected, and Soichiro worked painstakingly to perfect the design, even going back to school and pawning his wife's jewelry for collateral. Eventually, he won a contract with Toyota and built a factory to construct pistons for them, which was destroyed in an earthquake. Due to a gas shortage during World War II, Honda was unable to use his car, and his novel idea of attaching a small engine to his bicycle attracted much curiosity. He then established the Honda Technical Research Institute in Hamamatsu, Japan, to develop and produce small 2-cycle motorbike engines. Calling upon 18,000 bicycle shop owners across Japan to take part in revitalizing a nation torn apart by war, Soichiro received enough capital to engineer his first motorcycle, the Honda Cub. This marked the beginning of Honda Motor Company, who would grow a short time later to be the world's largest manufacturer of motorcycles by 1964.

Honda Atlas Cars Pakistan Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The company was incorporated on November, 1992 and joint venture agreement was signed on August, 1993. The ground breaking ceremony was held on April 17, 1993 and within a record time of 11 months, construction and erection of machinery was completed. The first car rolled off the assembly line on May 26, 1994. Official inauguration was done by President of Pakistan, Sardar Farooq Ahmad Khan Leghari. Mr. Kawamoto, President of Honda Motor Company Limited Japan was also present to grace the occasion. On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore, and Islamabad. Since the commencement of production in 1994, the company has produced and sold more than 150,000 cars till Oct, 2008.All dealerships are constructed in accordance with the standards defined by Honda World over. In 1996 the full model change was introduced, after just one and half year of commencement of production. Three models in Civic VTI, EXI and LXI with 1.6L and 1.5L engines were introduced in VTI and EXI models respectively. In 1997 Honda CITY 1.3L car in ET and EX models and Honda City EXI with 1.5L were launched. Currently they are offering 9 different models of Honda CIVIC and CITY cars in wide range of colors with unique technological and other features. Now the dealership network comprises eighteen 3-S dealerships in 10 major sites of Pakistan and almost 57500 cars have been sold till March 2004.

Introduction of Honda Atlas Cars Pakistan

Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The company is listed on Karachi, Lahore and Islamabad Stock Exchanges.The principal activities of this company include assembling, manufacturing and selling of passenger cars and spare parts. The company has introduced four new models of Honda Civic and four models of Honda City and it introduced the third generation Honda City on January 31, 2009.

Accord CR-V Civic City

Honda Atlas Cars

Honda Atlas registered a positive growth in vehicle sales. The Dealerships Network has expanded and now the company has sixteen 3S (Sales, Service and Spare Parts) and thirty 2S (Service and Spare Parts) Pit stops network in all major cities of Pakistan. Percentage of local parts conforms to the government's policy. Local vendors are continuously patronized to develop parts locally. The quality of local parts is thoroughly checked to meet stringent international standards. It is the constant endeavor of Honda Atlas Cars (Pakistan) Limited to achieve No .1 Customer satisfaction. Honda Atlas Cars (Pakistan) Limited is committed to meet customer expectations, and to provide good value for money.

Vision Statement

Focusing on satisfaction (customers, associates and shareholders) With challenging spirit and flexibility, we are dedicated to supplying latest Generation cars with advanced technology, greater fuel efficiency and Competitive prices, along with friendly and efficient after sales back up, Maintaining quality as core of all activities.

Mission Statement

A dynamic growth oriented company through excellence in quality, dedication to provide greater fuel efficiency at competitive prices, and service ensuring attractive returns to equity holders, rewarding associates according to their ability and performance, fostering a network of engineers and researchers ensuing unique contribution to the development of the industry, customer safety, satisfaction and protection of the environment by producing emission friendly green products as a good corporate citizen fulfilling its social responsibilities in all respects

4 PS of marketing in HACPL
The marketing P includes: 1. Planning of product 2. Market access of product 3. Market condition of product 4. Introduction of latest technology in a product etc.

Products
HONDA CITY

Honda City was first launched by HACPL on January 22-23, 1997. Honda's all-new Third Generation Honda City was launched in January 31 2009. It comes with a completely new design, new engine, and roomy cabin and equipped with various active and passive safety features. The company has also launched the 1.3L MT & AT versions of the City. The new Honda City features SOHC, 16 valve 4-Cylinder i-VTEC engine.

HONDA CIVIC:

The Civic is Hondas largest selling model globally and is now sold in approximately 160 nations and regions worldwide. Honda Civic was first launched in Pakistan on January 10-11, 1996. The new Honda Civic Reborn was launched on July 29, 2006. The new Civic Reborn was launched with more aggressive and sportier look. The introduction of stylized Dark Smokey Headlights & Crystalline Octagonal Tail Lights enhances the modern look of the car. New Civic Reborn is available in 4 variants i-VTEC (MT), iVTEC (PT), VTI ORIEL (MT) & VTI ORIEL (PT). It features 16-Valve SOHC i-VTEC 4-Cylinder engine.

HONDA ACCORD:

The Honda Accord was first introduced as a Completely Built Unit (CBU) import in Pakistan on August 11, 2005. HACPL launched the new model of Honda Accord on July 20, 2008. The Honda Accord is available in 2.4L engine. It is available on confirmed order basis for the customers .The All-new Accord comes with 5-speed Automatic transmission. The AT now has Shift Holding System which avoids unnecessary gear shifting on winding roads and helps in hassle free drive. The 2.4L Honda Accord features DOHC, 16-Valve 4-Cylinder i-VTEC engine.

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HONDA CR-V

The Honda CR-V is sold as a Completely Built Unit (CBU) import and is available on confirmed order basis for the customers. The Honda CR-V was first introduced in Pakistan in 2005. The all new refreshed version of CR-V was introduced on July 20, 2008 which offered its customers a distinctive combination of the comfort of a sedan with the thrills of a SUV. The new Honda CR-V offers its customers a distinctive combination of refined styling and high quality. The Honda CR-V is available in 2.4L MT with Real-time 4WD. Honda CR-V features iVTEC DOHC 4-stroke in-line 4 cylinder engine.

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Departments of Honda Atlas

MARKETING DEPARTMENT Marketing department is of special significance to the company. They use different marketing strategies to promote a new product e.g. a new model of Honda Civic. They are in continuous touch with the market in order to get daily updates for their products and new marketing strategies. Marketing functions are divided into Sales, Services and Spare Parts. All the departments of Honda Atlas Cars limited company are inter linked. Sales department is responsible for sales to different markets and customers. Institutional sales are made to private companies, government sector and tender business. A relationship form is filled out by customer when customer comes for booking a new car. Each customer car booking reservation is uniquely identified by dealership code and relationship number. Honda Atlas Limited Company prefers demand draft and pay order instead of receive cash payment. At the end of year all these receipts go to the finance department. Then invoice is generated of each car on the basis of customer orders. Finally cars load on trailer and give to the customer. A Japanese term called Niguri which means long term and short term business plan. The marketing department is responsible for establishing the short term and long term plan to enhance the future performance of Honda Atlas Cars Limited Company. The Honda Atlas Limited company use VPN (Visual Private Network) connection mode that is the secured network. The workers of marketing department compare the product specification of Honda product with their competitors to gain the distinct edge. They also take the feedback from authorized dealer. They are responsible for booking of genuine parts, service and parts dealer coordination and proper management of demand and supply. Dealers are divided into Antenna Dealers (Responsible for fulfillment of warranty deal with customer), Authorized Service Dealers (Responsible and trained by Atlas Honda to work for them). They are encouraged to improve their shops, add more facilities, try to cover all the expectation of the customers.

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Production Department
Honda Atlas Cars (Pakistan Ltd) has a separate production department which is headed by Vice President (Production). A Japanese person is currently working on this seat. The production department has a number of sections such as: 1. Vendor Section 2. Engine Section 3. Welding Section 4. Maintenance Section 5. Paint 6. Vehicle quality control.

Input

Output

Manager Worker Equipment Energy Land Material Facilities

Operations and Transformation

Honda CIVIC Honda CITY

Machinery In production Department, HACPL use different kind of machinery that are as follow: Boilers Compressors Water treatment plant Ovens (for backing the body of cars) Spot welding guns.

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 Two-post lifts G-SWAT/ B-S / S Side Slip / Shower testers Important Parts Various parts of engine are imported from Indonesia & Japan etc that are as follow: Brakes Seats Lights Cooling System Tires Rims Fuel tank Production Procedure 1. The production procedure starts from welding. This is done with the help of special machines. In this way the basic frame is manufactured and is transferred to panting section. 2. The painting section is equipped with modern machinery. Here, the process starts with wiping, cleaning and degreasing of frame which is followed by Phosphate and ED coating. Now the frame is backed in special ovens. After backing, following coat are applied: Base coat Final coat Clear coat (for shining) After painting, the frame is shifted to assembly line. Here ornamental parts such as lights are fixed followed by heavy parts like engine, tires seats, wind shield, etc.

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FINANCE DEPARTMENT The Finance Department consists of various sub departments:

Finance

Sale Tax

Payables

Dealer Accounting

Import Accounting

Salaries & Benefits Payables Payables are prepared for: Vendors Utility Insurance Tax payments Club payments Other miscellaneous payments Salaries & Benefits

Cost and Inventory

This department is concerned with salaries structure preparation, which is done through a computerized system. Attendance of employees is recorded and at the end of the month, salary of all employees are paid after deductions of tax, absenteeism etc. Additions for medical, overtime etc. are also made accordingly.

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Import Accounting Import Accounting deals with the complexities involved in the Import process of parts to the company. The first step is the opening of L / C by importer in favor of supplier and the insurance coverage etc. After L / C is opened by importer, supplier is informed by the L / C Advising Bank in the suppliers country who proceeds with the documentation needed (Supplier must submit sales invoice with the description of goods and their cost, Certificate of Origin identifying the country where the goods were manufactured and other relevant documents) The supplier sends his documents (e.g.: Bill of Exchange (Short term financial instrument addressed by seller requiring buyer to pay a certain amount of money at a future date), Sales Invoice etc.) to the L / C Advising Bank. The bank examines the documents for compliance with credit terms. These documents are sent to Issuing Bank who confirms the deal. Bill of Lading is issued by carrier describing the goods accepted by the carrier and under certain conditions, and serves as a receipt for goods to be delivered to a designated person. Bill of Entry is taken to Customs House where importer tells them that goods are coming at port and duties etc. are cleared (HS Code helps to identify the goods being imported). Cost and Inventory Fixed Assets accounting is also done by this department. Costs associated with developing and maintaining computer software are recognized as expense as incurred. Dealer Accounting The dealers after accepting payment from the buyer deposit the money in the respective branch of the bank designated by Honda Atlas for this purpose. From there on, the payment is transferred to the Central Branch of the designated bank.

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Code of conduct
Human resource department Make the policies for training and development of their employees and
work for society.

Corporate governance
Operations in accordance with principals of good corporate governance. Supply of timely regularly and reliable information to all stockholders.

Relations with stakeholders

Committed to established mutually beneficial relation with customers, suppliers and business partners.

Corporate citizens
Strive to be trusted corporate citizens and fulfil its responsibilities to the socitied and communities

Environment
Continue in the improvement in the management environment impacts. Work in partnership with others to promote environmental issues.

Innovations Innovations to meat consumers needs and respects the concerns of

consumers and society. Work on the basis of sound research and applying high quality standers.

Competition
Believe in fair competition and support development of appropriate competition laws Employees will conduct operations with principles of fair competition.

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HR Philosophy:
The AHL Human Resource Philosophy is based on the conviction that the well being of the company and the well being of its people are one and the same. The company is dedicated to the belief that its most valued asset is its people. Our commitment is to employ on the basis of Merit, Intellect, Integrity and Character to ensure that every employee is treated with dignity and respect and in a fair consistent and equitable manner; to create a stimulating and supportive atmosphere in which they may work; and to aid and encourage them in the realization of their full potential. We recognize that the success of this philosophy depends in the large measure on the manner in which employees at every level carry out their obligations to each other and to the Company. Our philosophy will not work if employees do not have a feeling of mutual confidence and loyalty, as well as respect of each other as human being. In the same context of obligations and mutual trust and confidence, all employees are expected to maintain certain standard in relation to their work, and in representing themselves as employees of AHL.

HR Functions:
1. Recruitment and selection 2. Training and development 3. Performance appraisal 4. Motivation 5. Employees services safety, health & welfare 6. Manpower planning 7. Salary administration 8. Industrial relation 9. Communication system 10. Negotiation with union 11. Terms and condition of employment

1. Recruitment and selection

Forecasting for the vacant positions to be filled Advertisements for vacant positions Receiving applications and complete bio data

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 Building a pool of candidates Short listing the candidates and building a secondary and purified pool Written test 1st interview 2nd interview Final interview Medical test

2. Training and development

Apprenticeship training Informal learning Job instruction training (JIT) Tele-training Videoconferencing Job rotation

3. Off-Job Trainings
Corporate universities association (LUMS), (PIMS) ATLAS development centers (ADC) seminars Japanese tour for training Organizational Behavior Atlas Honda Ltd.

4. Performance Appraisals
Employees objectives setting Self evaluation Measuring the achievement of objectives Following concern departments recommendations Recognizing the hard work Rewarding the deserving employees

5. Employees Services Safety, Health & Welfare

Car/Motorcycle Bonus

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 Gratuity Provident Fund Group Life Insurance Health Insurance/Hospitalization Plan Personal accident Insurance Conveyance & Meal Allowance Compensatory Leaves Inconvenience Allowance Personal Loan Welfare Loan Traveling Allowance Marriage Gift Award on retirement

5. Manpower Planning
Computerized forecasting and planning Human resource information system Qualification inventories Forecasting Techniques Candidates availability Computerized personnel placement Division of labor according to production and shops

7. Salary Administration
Upward communication T.M.S (time management system) Leaves adjustment Sandwich deductions Salary slip Transfer of salary in employee account

8. Industrial Relations
Relations with dealers ations with internal customers (employees)

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 Relations with external customers Relations with vendors 9. Communication System: Upward communication Downward communication Parallel communication Mediums of communication Lotus notes (email) Internal communication letter (i.Com) Letters Fax Land lines and mobiles

10. Negotiation with Union

Increase in basic pawelfare loan Disability coverage Award on retirement

11. Terms & Condition of Employment

Probation Duties Transfer within the company Transferred to sister concerns Termination Participation in union activities Registered Medical Practitioner

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MBO
Every year all management staff prepares their next year objectives and action plan in align with company objectives. These objectives are discussed and approved by immediate supervisor/manager. These objectives also been reviewed by the senior management on half yearly basis. Annual performance appraisal also based on achievement of these objectives and reward recognition follows accordingly.

Culture:
AHL culture is a blend of Pakistan & Japanese culture. Its main characteristics are as follows; Friendly & Safe environment Respect for every individual and recognition Easy access to the Higher Management Openness to share ideas Always welcome to suggestions Equal opportunities for personal growth Same uniform for everyone (White) Same cafeteria and meal for everyone

Sources of Information:
Human Resource Deptt. Administration Deptt. Quality Assurance Deptt. Research & Development Deptt. Sales & Marketing Deptt.

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Corporate Governance
This statement is being presented to comply with the Code of Corporate Governance in the listing regulations of Karachi, Lahore & Islamabad Stock Exchanges for the purpose of establishing a framework of good whereby a listed company is managed in compliance with the best practices of corporate governance. The company has applied the principals contained in the Code in the following manner

The company encourages the representation of independent non-executive directors on its Board of Directors. As on March 31, 2010, he Board included four independent non- executive directors. However, there is no representation of minority shareholders on the Board.

The directors have confirmed that none of them is serving as a director in more than ten listed companies, including this company. The company has prepared a Statement of Ethics and Business Practices which has been signed by all the directors and employees of the company. The Board has developed a vision statement, overall corporate strategy and significant of particulars of significant policies alongwith the date on which they were approved or amended has been maintained.

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Corporate social responsibility

Donating a social welfare
During the year Atlas foundation on behalf atlas Honda sponsored a primary school in village near the sheikhupura factory .the capacity of students 210 at present. Most of the children belong to poor families living near to village.

Euro 2 complain motorcycle in Pakistan. euro 2 emition first introduced in Europe. This is consider that it meat all the environmental standers worldwide. CD 100 recognized the first euro 2

motorcycle. Atlas Honda is going to upgrading the standers of all motorcycles.

Providing resources and training to the students

Students of vocational training institutes are the future of this industry. AHL have arrangements with differets educational institutes for providing tools, motorcycles engines and others resources free of cost. The company also offers internship programs, study tours, and also engineers to do projects in the company so that they become the technical members of the society.

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Students Educational Trip to Honda Atlas

9 May, 2011. Hajvery University (HU) arranged a visit to Honda Atlas for its students, on April 12th, 2011 the students of HU Business School (HUBS) had an opportunity to visit this esteemed organization, 43-km-Multan Road Manga Mandi Lahore. Honda Atlas Cars Pakistan Limited is a joint venture between Honda Motor Company Limited Japan, and the Atlas Group of Companies, Pakistan. The aim was to allow Business students to appreciate the how a leading company such as Honda Atlas functions. The visit was guided by Mr. Imran Farooq and Mr. Mujahid Yaseen, who gave a brief presentation about the company, its origin, history and other company details. Afterwards, the students were taken on a guided visit of production departments such as Painting, cutting, welding, Rusting, Assembly and Engineering department.The students learned how it takes only 6 minutes to produce a car at Honda, and also of their stringent security check to ensure maximum safety. The students were shown how technology and innovation allows HONDA to develop increased levels of protection for the driver.The visit concluded with hi-tea with the management, which was also of great learning experience for the students as it allowed an opportunity for professional networking. HU Management is thankful of Mr. Shahbaz Hassan-Assistant HR Manager for extending

such a wonderful support to the students of Hajvery University (HU).

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Help for earthquake and flood survivors

In the summer of 2005 unprecedented floods hit the northwest of Pakistan. Honda Atlas Power Products (Pvt.) Ltd. and Asia Honda Motor Co., Ltd. together donated 100 water pumps through the Edhi Foundation to help alleviate the survivors' suffering . In October, 2005 a massive earthquake jolted northern areas of Pakistan resulting in massive loss of life. Honda Atlas Cars (Pakistan) Limited made a significant donation to the President's Relief Fund.sThe company has also been working with nearby local communities, helping to replace old drinking water pipelines and donating medical equipment to the local hospital

Roshan Pakistan
In order to minimize road accident and to save precious lives especially in foggy season, it is imperative that all the electrical systems, lights and indicators be in prefect working conditions. For this it is necessary to create awareness and importance of checking back lights and all indicators while driving on the road. For this reason a joint activity with the traffic police is being carried out in different parts of the country.

Customers
At atlas Honda Company, we believe in the philosophy of 'Customers for Life'. This year we added to it the catchphrase 'Customer First' to drill down their importance to the organization. All employees are focused towards improving customer satisfaction and trust, keeping the 'Customer First' policy in mind. In order to achieve this we aspire to produce and market safe, innovative and high quality products and then go on to support these products with a variety of after sales services for a pleasant ownership experience for our customers.

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To delight our customers we listen to their needs and aspire to satisfy their complaints in a timely manner. The status of all customer complaints reported to IMC is discussed at different forums weekly and monthly at which top management in also present. In order to improve our services, processes and products we proactively solicit customer feedback. Customer Satisfaction Surveys are regularly conducted at our Dealerships through independent agencies. Our goal is to turn customer satisfaction into "Complete Customer Satisfaction", which means delivering beyond expectations, listening to customers, constantly seeking to improve, and going the extra mile to ensure that owners feel positive about their vehicle at every stage .

Business Partners - Dealers & Vendors

We respect and treat our business partners with dignity and have built a long term mutually beneficial relationships with them. Our business partners comprising of dealers who are a source of our strength and Vendors with whom we continue to strengthen our supply base are part of the extended HONDA family. We evaluate our business partners on their overall strengths, their quality standards, competitiveness and customer focus. We maintain fair and free competition in

accordance with the letter and spirit of our laws. We ensure that our business partners adhere to Human Rights and comply with applicable laws and regulations. We forbid use of any form of forced or child labor in our supply chain. To improve quality standards, build capacity and reach the highest levels of customer satisfaction we expose our dealers and vendors to modern management practices, by technology transfer, through on site visits abroad to state of the art facilities and different trainings and educational programs.

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Honda Atlas and Child Labor Pakistan vs. Child Labor Child labor is a big problem in most third world countries, but possibly the most known in Pakistan. Child labor is scattered all over Pakistan, but it has the greatest impact on a north-western city called Sialkot. Sialkot is an important center for the production of goods for export, especially sporting goods. 1994, it brought about $385 million into the Pakistan economy. Child labor is prohibited in Pakistans constitution. Legislation has been passed, but no significant action has been taken to implement it.

Ozone Protection
There has been a positive downward trend in the Volatile Organic Compounds (VOC) during the year 2009-10. We have introduced an extra shift and increased the operating hours on the thinner recycling machine to recycle more waste thinner used in manufacturing process. The investment is serving to reduce the VOC concentration in the air as well as saving the cost of thinner usage in process.

Green House Gas Reduction Strategy

We at Indus have been able to consistently reduce electricity and gas consumption by a significant amount which has indirectly benefited in CO2 reduction

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Protecting the environment

Honda Environment Statement

As a responsible member of society whose task lies in the preservation of global environment, company will make every effort to contribute to human health and the preservation of the global environment in each phase of its corporate activity. Only in this way we will be able to count on a successful future not only for our company, but for the entire world. We should pursue our daily business interest under the following principles: 1. We will make efforts to recycle materials and conserve resources and energy at every stage of our products life cycle from research, design, production and sales, to services and disposal. 2. We will make efforts to minimize and find appropriate methods to dispose of waste and contaminants that are produced through the use of our products, and in every stage of life cycle of these products. 3. As both a member of the company and society, each employee will focus on the importance of making efforts to preserve human health and the global environment, and will do his or her part to ensure that factory as a whole acts responsibly.

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4. We will consider the influence that our corporate activities have on the regional environment and society, and Endeavour to improve the social standing of the company.

Environmental Policy
Honda Atlas Cars (Pakistan) Limited, being responsible member of society considers the preservation of the global environment as a crucial concern. Our environmental philosophy is firmly based on the following principles:

Recognize the impacts of our activities, products and services on environment. Formulate objectives and targets for pollution prevention, environmental impacts mitigation and resource conservation as far as technically feasible.

Operate in compliance with applicable legal and other requirements with the commitment to preserve global environment

Create awareness and understanding about environmental issues amongst our associates.

Commitment to continual improvement of the environmental performance and review of the environmental management system to ensure its suitability, adequacy and effectiveness.

Keep public and other interested parties informed on ourenvironmental performance, if deemed necessary.

Safety
We believe you of deserve safety advanced levels

regardless of the price or size of the vehicle that meets your needs. Through technology and innovation, we are developing increased levels of protection for the driver and all passengers in

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Honda vehicles. At the same time, we are making an active commitment to enhance safety for the occupants of other vehicles and even pedestrians. Honda has a long record of industry leadership in the development and application of advanced safety technology. Honda R&D safety research activities in Japan and the U.S. are playing a critical role in the further development of Honda safety technology and the evolution of Honda's "Safety for Everyone" concept.

"Safety for Everyone" is a comprehensive approach to vehicle safety that seeks to provide a high-level occupant protection for all Honda vehicles, regardless of size or price, along with increased compatibility with other vehicles and improved safety for pedestrians. As a leader, Honda looks beyond government regulations, studying real world situations to develop new safety technologies. Honda has always targeted mass-market models in order to have the greatest impact on clean air and fuel economy. To this end, we work to improve existing technologies while using The Power of Dreams philosophy to envision and develop the vehicles of the future. We believe it is important to invest in the continued advancement of internal combustion engine technology. Honda has introduced a new generation of gasoline engines around the world that provide extremely low emission levels and increased fuel efficiency while still improving driving performance. Further in pursuit of our goal to improve energy efficiency, we have developed gaselectric hybrid vehicles that achieve ultra-high fuel economy. This includes the Civic Hybrid, the first mass-market car with hybrid power. Developing vehicles that use sustainable energy sources is perhaps the ultimate direction. Hydrogen-powered fuel cell vehicles have great potential for the future. Honda has developed the first fuel cell electric vehicle in the world to be certified by both the U.S. EPA and the state of California.

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Innovations of Honda atlas

Technology
Honda's research and development operations are the creative heart and soul of our efforts to meet the needs of our customers. Honda's R&D Centers are responsible for the development of a variety of innovative models. Our stylists and engineers listen to our customers and dealers in unprecedented ways to create products for an increasingly diverse range of needs and interests. As long as there is a need for innovation in the areas of environmental protection, performance and safety, Honda will actively and tirelessly push research and development to the foreground. We believe in better people through technology, and better technology through people.

Code of Ethics
1. Atlas Honda Limited conducts its operations with honesty, integrity and openness, and with respect for human rights and interests of the employees. It respects the legitimate interests of all those with whom it the laws and regulations of Pakistan. 2. AHL is committed to create the working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. AHL is equal opportunity employer, which recruits, employs and promotes employees on the sole basis of the qualifications and abilities needed for the work to be performed. AHL is committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labour. AHL is committed to provide branded products and services, which consistently offer value in terms of price and quality. Products and services will be accurately and properly labelled, advertised and communicated.

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3. AHL conducts its operations in accordance with principles of good corporate governance. It provides timely, regular and reliable information of its activities, structure, financial situation and performance to all the shareholders. 4. AHL is committed to establish mutually beneficial relations with its suppliers, customers and business partners. 5. AHL strives to be a trusted corporate citizen and, as an integral part of society, fulfils its responsibilities to the societies and communities in which it operates. 6. AHL is committed to make continuous improvements in the management of environmental impact. It works in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice. 7. AHL make innovations to meet consumer needs. It respects the concerns of consumers and of society. It works on the basis of sound research, applying high quality standards. 8. AHL believes in fair competition and supports development of appropriate competition laws. AHL and employees conduct their operations in accordance with the principles of fair competition and all applicable regulations. 9. Compliance with business principles is an essential element. The Board of Directors of AHL is responsible for ensuring that these principles are communicated to, and understood and observed by, all employees. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by Audit Committee of the Board. The Board of AHL expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles.

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5-S Activities
5-S is a Japanese technique that is used to ensure clean and pleasant work environment. All associates should perform 5-S activities at their respective workplaces. Sort: Set in Order: Shine: Standardize: Sustain: Clear out rarely used items by red tagging Organize and label a place for everything Clean the work place Display the operation standards at every work place Use regular management audits

Core Competencies
Largest Capacity Motorcycle manufacturing facility Vertically integrated high precision engine parts Flexible manufacturing facility Only company using ED-Paint Coating System Largest nation-wide exclusive Sales and Service network Capable of new model development by local R & D

Core Values
AHL core values have remained the same through out the years and are as follows: Strongly believe in that Customer is King Respect for individual Winning remain ahead of competition through quality Continuous innovative & Value added services Best return on investment Hard-work & Continuous self-improvement & development Un ambiguous excellence in all aspects of the Company Corporate social responsibility

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SWOT Analysis
SWOT analysis is a strategic planning used to evaluate strengths, weaknesses, opportunities and threats involved in a project or in a business venture. AHL SWOT analysis is as follows;

Strengths:
Largest manufacturing plant in Pakistan (Global Standard factory) World-renowned HONDA Brand Market leadership with precision quality Largest product lineup with four popular brands CD70, CD 100, CG125 and CG125 DLX to meet the future challenges Widespread dealers network Professional management and high skilled staff

Weaknesses:
Low manufacturing ability of vendors to supply parts for 500K motorcycles annually Difficult to maintain high quality production at high market demand Complexity in coordination and communication among facilities, vendors and two geographical locations i.e. Karachi and Sheikhupura plants Slow response or long lead-time from the vendors High warranty claims pressure due to premium price product

Opportunities:
Poor infrastructure of mass-transit. i.e., limited substitution of 2 wheelers Rapidly changing Market dynamics Being a largest manufacturer can enter India, China and other countries as per WTO rules and regulations Purchasing/Buying behavior is changing (more quality conscious) More investors in the vendor business to invest in latest technological specialized manufacturing processes More inflows from the companies, growth in installment

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Threats:
Low barrier of entry of major players after WTO implementation Unpredictable frequent changes of government or its policies Bargaining power of suppliers (Vendors) Bargaining power of buyers (dealers/customers) Price war Threats of copy products Substitute services Indian & Chinese entry in Pakistan Market

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