Japanese car maker Honda has held a special event at its assembly facility in Pakistan to reveal plans of an investment of $26 million to double production of its Civic and City models in the western Asian country. 

The special event, referred to by Honda as a “Manufacturing Capacity Expansion ceremony” was hosted by its Pakistani joint venture company, Honda Atlas Cars (Pakistan) Ltd. (HACPL) and was attended by dignitaries and guests including Pakistan Prime Minister Shaukat Aziz. 

To meet ever-increasing demand for automobiles in Pakistan, where economic growth continues, HACPL will increase production capacity by expanding plant facilities and upgrading welding and painting equipment. The annual production capacity will be doubled from the current 25,000 units to 50,000 units by the end of 2006. According to Honda, total investment for this expansion is expected to be approximately Y2.9 billion yen ($26.85 million). 

“Honda has been building a long-term partnership with Pakistan ever since we began motorcycle business here in 1960s, and Honda would like to continue making a contribution to the economy and society of Pakistan,” said Mr Satoshi Toshida, COO of Asia/Oceania Regional Operations for Honda Motor Co., Ltd. 

The automobile market in Pakistan reached 133,000 units in 2004, more than double the market size three years ago in 2001. Sales of the Honda Civic and City models continues to grow and total sales from January through July this year reached approximately 18,000 units, a 90% increase compared to the same period a year ago.