The Journey of Honda 3rd-Gen HR-V in Pakistan
The Journey of Honda 3rd-Gen HR-V in Pakistan
In October 2022, Honda Atlas introduced the third-generation HR-V in Pakistan, marking over a year since its official entry into the market. Despite being labeled as one of the "most anticipated cars," its performance in capturing the market remains a topic of debate.
Declining HR-V Sales Raise Concerns
Analyzing individual sales of Honda models in Pakistan has become a challenge due to the combined reporting of City and Civic since 2014. The sales figures, especially for the new HR-V, present a bleak picture, raising questions about its reception in the Pakistani market.


Dismal Figures for Honda Cars in Pakistan
Data from the Pakistan Automobile Manufacturers Association (PAMA) reveals a substantial decline in Honda's sales. During the first quarter of this fiscal year, only 1,860 units of City & Civic were sold, representing a 63% decrease from the previous year. The combined sales of BR-V and HR-V during the same period show a marginal increase, but still present challenges for Honda.

Hurdles for HR-V in Pakistan
Despite various offers, including free registration and extended warranties, Honda's attempts to boost sales face challenges. The lackluster performance of the HR-V raises questions about its reception in Pakistan, especially considering its status as the newest addition to Honda's lineup.
Factors Contributing to Decline:
- Missing Features: The HR-V in Pakistan lacks several features present in international models and rival products, such as cruise control, 360-surround camera, climate control, and advanced connectivity options. The absence of these features puts the HR-V at a disadvantage in the competitive market.
- The Looks: Subjective opinions aside, the HR-V lacks a charismatic appeal and fails to create a significant road presence compared to its competitors. This stands in contrast to the attention-grabbing design of the 10th-generation Honda Civic.
- Competition & Price Factor: Priced at PKR 76.49 lac for VTi and PKR 78.99 lac for VTi-S variant, the HR-V faces tough competition from various Chinese crossover SUVs. The high price coupled with the absence of key features and limited boot space makes it less attractive for potential buyers.
- The Investor Factor: The decline in sales is also attributed to the absence of investors (hoarders) who used to book new vehicles for resale with a premium. Economic conditions and reduced buying power have led to a lack of real buyers and a subsequent impact on sales.
- Non-Production Days Dilemma: Honda Atlas, along with other Japanese automakers in Pakistan, faces plant shutdowns and non-production days due to reported lack of inventory. However, some suggest these measures might be aimed at managing the situation rather than responding to genuine new orders.
Addressing Challenges for HR-V's Future
To revitalize HR-V sales in Pakistan, Honda must consider options such as lowering the price or enhancing features and equipment. Without strategic interventions, the third-generation HR-V may face similar challenges as its predecessor in the competitive Pakistani automotive market.
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