Atlas Honda Ventures into Electric Mobility with 'BENLY e' Scooter in Pakistan

In a pioneering move towards the burgeoning electric vehicle (EV) market in Pakistan, Atlas Honda introduced its electric scooter, 'BENLY e,' in a soft launch at its Sheikhupura factory on Tuesday.

Chief Officer of Motorcycle and Power Products at Atlas Honda, Noriaki Abe, emphasized that the 'BENLY e' would undergo test marketing, with the company planning to offer new products based on valuable customer feedback. Notably, initial sales will be targeted towards organizations with large fleets, such as food delivery and courier services, to better understand customer needs and challenges in the electric bike market.

Market Response and Expectations

Dealers and industry experts anticipate a significant impact from Atlas Honda's entry into the electric bike segment. A Honda dealer in Karachi revealed that there is growing interest in Honda's electric bike, expecting the company to take approximately a year to make these bikes available to the public.

Sabir Sheikh, a two-wheel industry expert, emphasized the substantial influence of Atlas Honda, holding over 80% of the two-wheel market in Pakistan. He sees their entry into electric bikes as a major boost for the nascent industry.

Sales and Market Share

In the fiscal year 2022-23, Atlas Honda dominated the motorcycle market, selling over 1 million motorcycles out of the total 1.18 million two- and three-wheel unit sales. This accounts for an impressive 85% market share, as per Pakistan Automotive Manufacturers Association (PAMA) data.

Technology and Pricing

While Chinese electric bikes are gaining popularity, Atlas Honda aims to differentiate itself by offering Japanese technology, which is anticipated to be superior. Sheikh estimates that Honda's electric bike could be priced around Rs900,000, potentially more than double the price of its Chinese competitors.

Changing Dynamics

The electric bike landscape in Pakistan is evolving rapidly, with Sheikh predicting a substantial increase from the current 1,000 electric bikes assembled per month to 4,000-5,000 by June 2024. Buyers are advised to consider companies with production facilities to ensure robust after-sales support.

Expert Perspectives

Dr. Aazir Anwar Khan, founder and Director of Integrated Engineering Centre of Excellence (IECE) at the University of Lahore, views Atlas Honda's venture into electric scooters as a positive development. He believes that if Honda can manufacture a substantial number of electric scooters, it will contribute significantly to the goal of achieving 30% electrification of motorcycles by 2030. However, he highlights the challenge of pricing, emphasizing the price sensitivity in the two-wheel segment.