honda final report

8/3/2019 Honda Final Report

http://slidepdf.com/reader/full/honda-final-report 1/37

1

History of Pakistan’s 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 onintermediate 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 country‟s 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.



2

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.

http://en.wikipedia.org/wiki/Toyota

http://en.wikipedia.org/wiki/World_War_II




http://en.wikipedia.org/wiki/Toyota



3

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 producedand 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.



4

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 companyinclude 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.

Honda Atlas registered a positive growth in vehicle sales. The Dealerships

Network has expanded and now the company has sixteen 3S (Sales, Service and SpareParts) 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 goodvalue for money.

HondaAtlas Cars

Accord

CR-V

Civic

City



5

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 andefficient after sales back up, Maintaining “quality” as core of all activities”.



6

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 thedevelopment 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”



7

4 P’ S of marketing in HACPL

The marketing P includes:

1. Planning of product

2.

Market access of product3. Market condition of product

4. Introduction of latest technology in a product etc.



8

Products

H ONDA C ITY

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.



9

H ONDA C IVIC :

The Civic is Honda‟s 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), i-

VTEC (PT), VTI ORIEL (MT) & VTI ORIEL (PT). It features 16-Valve SOHC i-VTEC

4-Cylinder engine.



10

H ONDA 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 Automatictransmission. 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.

http://rds.yahoo.com/_ylt=A0PDoS5yrX1OfXcAry6jzbkF;_ylu=X3oDMTBpcGszamw0BHNlYwNmcC1pbWcEc2xrA2ltZw--/SIG=12a22cckc/EXP=1316888050/**http:/www.carsbase.com/photo/photo_full.php?id=2112

http://rds.yahoo.com/_ylt=A0PDoS5yrX1OfXcAry6jzbkF;_ylu=X3oDMTBpcGszamw0BHNlYwNmcC1pbWcEc2xrA2ltZw--/SIG=12a22cckc/EXP=1316888050/**http:/www.carsbase.com/photo/photo_full.php?id=2112



11

H ONDA 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 cu stomers 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 i-

VTEC DOHC 4-stroke in-line 4 cylinder engine.



12



13

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. Theyare 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.



14

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.

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.

Input Output

ManagerWorkerEquipmentEnergyLandMaterialFacilities

Operations and TransformationHonda CIVICHonda CITY



15

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 Procedure1. 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.



16

FINANCE DEPARTMENT

The Finance Department consists of various sub departments:

Payables

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

Salaries & Benefits

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.

Finance

Sale Tax

DealerAccounting

Salaries &Benefits

Cost andInventory

Import

Accounting

Payables



17

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 supplier‟s country who proceeds with the document ation

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 bycarrier 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.



18

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.



19

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 employee‟s 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 appraisal4. 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



20

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 Employee‟s objectives setting

Self evaluation Measuring the achievement of objectives Following concern department‟s recommendations

Recognizing the hard work

Rewarding the deserving employees

5. Employees Services Safety, Health & Welfare Car/Motorcycle Bonus



21

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)



22

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

http://i.com/

http://i.com/



23

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.



24

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 compliancewith 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.



25

Corporate social responsibility

Donating a social welfare

During the year Atlas foundation on behalf atlas Honda

sponsored a primary school in village near thesheikhupura 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.



26

Student’s Educational Trip to Honda Atlas

9 May, 2011. Hajvery University (HU) arranged a visit to Honda Atlas for its students, on

April 12 th, 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).



27

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.



28

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 theiroverall 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.



29

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 Pakistan‟s 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



30

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 theentire 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.



31

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 deserve

advanced levels of safety

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



32

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 inorder 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 gas-

electric 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.



33

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.



34

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.



35

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: Clear out rarel used items b red ta inSet in Order: Organize and label a place for everythingShine: Clean the work placeStandardize: Display the operation standards at every work placeSustain: 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



36

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



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

honda final report

Documents