Internship Report AHL 2015.

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DEPARTMENT OF MANAGEMENT SCIENCES

COMSTAS INSTITUTE OF INFORMATION AND TECHNOLOGY
LAHORE CAMPUS
INTERNSHIP REPORT
ON
ATLAS HONDA LIMITED, PAKISTAN
INTERNSHIP ADVISOR:
MUHAMMAD BILAL JAVED
REPORT SUBMITTED BY:

MUHAMMAD HAIDER
CIIT/DDP-BBA-FA12-031/LHR
SUBMISSION DATE: 20/08/2015

CIIT LHR: 1.5 Km Defence Road, off Riawand Road, Lahore
Tel: +92 (42) 111-001-007
Fax: +92 (42) 99203100
Internship Report On AHL
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PREFACE
It is mandatory for a BBA student to acquire some hands on practical job training
during his/her degree in the form of internship. I got the opportunity to join the Atlas
Honda Limited Pakistan for the said propose for a period of 06 weeks. Practical
involvement was a great experience as interaction both with experienced executive
and clients cemented the base of knowledge I have been acquiring in classroom.
This internship report includes the material about AHL and different departments
along with their working procedure.
For the completion of this project I meet various personals of this organization. I
visited the markets and completed a project assigned to me.
Muhammad Haider
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TABLE OF CONTENTS
CONTENTS
PREFACE .......................................................................................................................... 2
EXECUTIVE SUMMARY .............................................................................................. 5
CHAPTER-1. BACK GROUND OF HOST ORGANIZATION ................................. 6
TWO WHEELER INDUSTRY IN PAKISTAN ................................................. 6
TWO WHEELER SPARE PARTS INDUSTRY IN PAKISTAN: ..................... 6
AN OVERVIEW OF ATLAS HONDA LIMITED ............................................. 7
1.3.1 The Group: ......................................................................................................... 7
1.3.2 The Company ..................................................................................................... 7
1.3.3 Plants:................................................................................................................. 9
1.3.4 Annual Production Capacity .............................................................................. 9
1.3.5 Authorized Capital ............................................................................................. 9
1.3.6 Export................................................................................................................. 9
1.3.7 Regional Offices .............................................................................................. 10
1.3.8 Stock Exchange Enlistments ............................................................................ 10
1.3.9 Membership of Industry & Associations ......................................................... 10
Products .............................................................................................................. 11
OBJECTIVES of AHL ....................................................................................... 11
Strategic Goals of AHL ...................................................................................... 11
1.6.1 Customers ........................................................................................................ 11
1.6.2 Quality.............................................................................................................. 11
1.6.3 Technology ...................................................................................................... 12
1.6.4 Shareholders ..................................................................................................... 12
1.6.5 Employees ........................................................................................................ 12
1.6.6 Corporate Citizens ........................................................................................... 12
VISION & MISSION OF AHL ......................................................................... 12
1.7.1 Vision: .............................................................................................................. 12
1.7.2 Mission:............................................................................................................ 13
Chapter-2. DIVISIONS /DEPARTMENTS OF AHL ................................................. 14
Divisions of AHL ............................................................................................... 14
Logistics Department ......................................................................................... 14
Production Planning Control: ............................................................................. 15
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Quality Assurance Department: ......................................................................... 16
I.T Department: .................................................................................................. 16
Corporate affairs:................................................................................................ 17
Human Resource Department: ........................................................................... 18
Stores Department: ............................................................................................. 22
Finance Department: .......................................................................................... 22
CHAPTER#3 Organizational Analysis ......................................................................... 25
SWOT ANALYSIS ............................................................................................ 25
3.1.1 Strengths: ......................................................................................................... 25
3.1.2 Weakness: ........................................................................................................ 27
3.1.3 Opportunities: .................................................................................................. 27
3.1.4 Threats: ............................................................................................................ 28
Organizational structure ..................................................................................... 29
Marketing overveiw ........................................................................................... 30
3.3.1 Brand: ............................................................................................................... 30
3.3.2 MARKETING MIX ......................................................................................... 31
3.3.3 COMPETITORS BRANDS & MODELS ....................................................... 33
Six key principles of ATLAS HONDA: ............................................................ 34
Chapter-4. INTERNSHIP PROJECT .......................................................................... 35
Introduction of Project ....................................................................................... 35
Description of Project......................................................................................... 35
Findings of Project ............................................................................................. 35
Chapter-5. Learning as an intern .................................................................................. 37
Duties ................................................................................................................. 37
Accomplishments ............................................................................................... 38
New knowledge acquired ................................................................................... 38
Problems Encountered........................................................................................ 39
Impact on Career ................................................................................................ 39
Chapter-6. recommendations and conclusion .............................................................. 40
Recomendations ................................................................................................. 40
Conclusion.......................................................................................................... 41
Jargons & Acronyms ...................................................................................................... 42
BIBLIOGRAPHY ........................................................................................................... 43
ANNEXURE-A ................................................................................................................ 44
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EXECUTIVE SUMMARY
This report is about my internship which I experienced at Atlas Honda limited. The
main purpose of internship is to learn by working in a practically scenario and to
apply the theoretical knowledge acquired during studies on the practical scenarios.
I stayed there as an internee for 6 weeks and learnt a lot of things. I have put my
efforts to show how all departments are working and how they are interlinked with
each other, my report focuses on giving an inside view of the organization, its
systems and operations. It also highlights how Atlas Honda Limited leads the list
of more than fifty competitors in motorcycle manufacturing industry of Pakistan due
to distinctive quality policy. Their corporate vision and values are the driving forces
and at present Atlas Group spreads over 11 companies both private and public
limited. Atlas Group is a responsible entity which is highly committed to comply
with corporate, environmental laws and to conduct their business with utmost
honesty and sincerity. At AHL it is believed that development can only be achieved
by equality and respect at work place. They have been doing it for decades and
there is no doubt they are reaping its benefits. AHL has a manufacturing capacity
of 910 units per shift under strict quality standards and their sale network is well
spread to sell all of them. They have a 5s dealer network to satisfy the customer
to the optimum level.
I was posted in the spare parts division and was given a project to study the spare
parts competitor firms in the market, to evaluate them and compare them with AHL.
The report of the project is attached herewith in Annexure A.
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CHAPTER-1. BACK GROUND OF HOST ORGANIZATION

TWO WHEELER INDUSTRY IN PAKISTAN
Pakistan motorcycle industry is flourishing as it met 95% localization through state
of the art technology implementation, billions of investment and hundred
thousands of skilled work forces. In this potential industry, contributors have played
their vital role to not only making it able to compensate local demand but also for
exporting various models of motorbikes in different countries. Pakistan,
motorcycles sales stood at 1.44 million units in first 10 months of FY14 according
to Pakistan Bureau of Statistics (PBS) data. (Admin 2015)
Presently there are 43+ motorcycle assemblers in the country. Out of these, there
are three Japanese assemblers (Honda, Yamaha and Suzuki), while the remaining
40+ assemble Chinese motorcycles. These assemblers buy parts, sub-assemblies
and assemblies from over 200 large, medium and small vendors located in Karachi
and Lahore. It is estimated that the motorcycle industry employs to more than
200,000 people directly and indirectly.
The motorcycle industry in Pakistan has recorded strong growth over the past
decade, mainly due to increased urbanization and induction of many new players
in the market who are manufacturing and providing motorbikes at much cheaper
prices, but nobody has been able to beat the market leader, Atlas
Honda.(defence.pk 2015)
TWO WHEELER SPARE PARTS INDUSTRY IN PAKISTAN:

Like the two wheeler vehicle industry in Pakistan, spare parts industry is also a
leading industry as it generates a handsome amount of revenue for the automotive
manufacturers as well as local sole part dealers. There are three types of business
present in the industry, all having its own perks and privileges. First category is of
those multinational and national organizations who are manufacturing spare parts
in Pakistan and is selling in the local market. Second category is of those who are
importing parts and selling in the market, however there is also a third type of
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organizations who are both manufacturing locally and are also importing from
outside countries.
Whatever the source of production is the industry of spare parts is highly
competitive and is currently in its growth stage, while the business in the said
industry is highly profitable and stable, there are certain factors which threaten this
industry in the near future. The detail of which will be discussed later in this report.
AN OVERVIEW OF ATLAS HONDA LIMITED

1.3.1 The Group:
Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor
Co., Japan. The foundation of the Atlas Group was laid in1962 with the
establishment of Shirazi Investments (Pvt) Limited with a capital of half a million
rupees and three men doing business in trading shares and real estate. The growth
of the Atlas Group is the result of its focus on good corporate governance. Today
Atlas is a diversified group dealing in engineering, financial services and trading.
It consists of seven public limited companies out of which six are quoted on the
Stock Exchanges in Pakistan, and five private limited companies. Atlas
shareholders equity now stands over 25 billion rupees; assets have increased to
over 60 billion rupees; personnel strength is over 7000 and annual sales have
crossed 60 billion rupees. The Group paid taxes of Rs. 15 billion over 2% of the
total government revenues. All this progress is due to the Group's reliance on the
intellectual capital, dedicated efforts and team spirit of all the stakeholders. Every
member is striving for excellence and taking pride in the Group's motto:
Organizational Development through staff development
Taken from the annual report of AHL;(Honda 2014)
1.3.2 The Company

According to Atlas Honda website: Atlas Honda Limited is a joint venture between
the Atlas Group and Honda Motor Co., Japan. The company was created by the
merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle
manufacturing concerns were established by the Atlas Group. In addition, a third
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concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh. Atlas
Honda Limited manufactures and markets Honda motorcycles in collaboration with
Honda Motor Company. The Company also manufactures various hi-tech
components in-house in collaboration with leading parts manufacturers like Showa
At sumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the
largest selling motorcycles in the country with an unmatched reputation for high
quality, reliability and after-sales-service. Atlas has undertaken to develop local
manufacturing capabilities to the highest, economically feasible level. While a
major role in localization has been assigned to vendor industries, Atlas has the
countrys largest in-house manufacturing capability at its Karachi and Sheikhupura
plants. To support the production facilities, the company has established an R&D
wing and tool making facilities through CDA & CAM which are growing rapidly in
size and function as the company expands. Atlas has managed to execute 14 Joint
Venture/Technical Assistance Agreements between local vendors and foreign
manufacturers for transfer of technology. Besides, Atlas has directly executed 5
Joint Venture/Technical
Assistance
Agreements
other than
Honda.
Atlas
management is striving to modernize company operations by adapting applicable

aspects of research and theory and more specifically, Hondas unique philosophy
of hard/soft technologies to the realities of Pakistani conditions. Company
management structure, systems and processes are changed according to the
demands of the customer, growth and new technology. Efforts are being made to
develop participation at all levels of personnel in decision-making and a substantial
and effective delegation has been established at levels where applicable. Various
participation programs such as Ala Mayar Quality Circles movement, launched in
1985, are strongly encouraged to allow constructive self-expression and
teamwork. The Company training and development programs encourage all
members to develop themselves and contribute to their full potential .Atlas Honda
is playing a pioneering role in creating conditions for easy and confident use of
motorcycles all over the country. A vast and growing network of over
1600motorcycles sales service and spare parts dealers has been established. In
order to back up this system, Atlas has set up Technical Training Centers in
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Karachi and Lahore which provide several courses of varying duration and
complexity for motorcycle mechanics and users each year. Mobile training facilities
take the latest know-how, technology and maintenance of motorcycles to major
rural and urban centers around the country.
Taken From : (AHL 2015)
1.3.3 Plants:
1.3.3.1 Karachi Plant:
Company mother plant is based in the city of lights and provincial capital of Sindh,
The Karachi city. It is located at F-36, Estate Avenue, S.I.T.E. Karachi. Atlas Group
signed technical agreement with Honda in 1963 and plant started commercial
production subsequently. Plant spread over an area of 5 acres. In 1964, production
began with 7motorcycles per day. Now plant production has reached to 300 units
in a day. Plant manufactures CD 70 only.
1.3.3.2 Sheikhupura Plant:
Another plant is situated in Sheikhupura city, Punjab. It is located at 26-27 KM
Lahore-Sheikhupura Road Sheikhupura. The plant was built in 1981 and spread
over an area of 27 acres with the establishment of modern and synchronized 500K
plant in 2006. The plant manufactures all four models i.e. CD 70, CD100, CG 125
and CG 125 Deluxe.
1.3.4 Annual Production Capacity

The annual production capacity of AHL of both plants is almost 750,000. Every 26
second a motorcycle touches the ground.
1.3.5 Authorized Capital
1.5 Billion (rupees)
1.3.6 Export
Currently Atlas Honda is exporting limited number of motorcycles to Bangladesh,
Afghanistan and Srilanka.
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1.3.7 Regional Offices
Lahore: 1 Mecloed Road Lahore-54000 [ (042) 111-111-245, 3722501517, 37233515-17 ]
Rawalpindi: 60-Bank Road, Saddar [ (051) 5120494-6, 5120497 ]
Multan: Azmat Wasti Road Multan-60000 [ (061) 4540054, 4540028,

4571989 ]
Rahim Yar Khan Atlas Honda Limited, 4B Zamindara Colony [(068)

5888809 ]
1.3.8 Stock Exchange Enlistments
Karachi Stock Exchange
Lahore Stock Exchange
1.3.9 Membership of Industry & Associations
Pakistan Automotive Manufacturers Association.
Marketing Association of Pakistan.
Management Association of Pakistan.
Lahore Chamber of Commerce & Industry.
Sheikhupura Chamber of Commerce & Industry.
Overseas Chamber of Commerce & Industry.
Karachi Chamber of Commerce & Industry.
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PRODUCTS
Atlas Honda offer a wide range of products in Pakistan, in addition to its traditional
70 and 125 models it has also launched CBR racing series. Spare parts is also a
major source of business for the company.
Figure 1: Products adopted from (AHL 2015)
OBJECTIVES OF AHL
The Company remains committed to deliver on its long term objectives of
sustainable growth and value creation. This is being achieved through continued
focus on operational excellence, product portfolio diversification, cost reduction
and a strong capital structure.
STRATEGIC GOALS OF AHL

1.6.1 Customers
Our customers are the reason and the source of our business. It is our joint aim
with our dealers to ensure that our customers enjoy the highest level of satisfaction
from use of Honda Motorcycles.
1.6.2 Quality
To ensure that our products and services meet the set standards of excellence.
Local Manufacturing
To be the industry leader in indigenization of motorcycles parts.
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1.6.3 Technology
To develop and maintain distinct business advantages through continuous
induction of improved hard and soft technologies.
1.6.4 Shareholders
To ensure health and viability of business and thus safeguarding shareholders
interest by maximizing profit. Payments of regular satisfactory dividends and
adding value to the shares.
1.6.5 Employees
To enhance and continuously up-date each members capabilities and education
and to provide an environment which encourages practical expression of the
individuals potential in goal directed team efforts and compensate them attractively
according to their abilities and performance.
1.6.6 Corporate Citizens

To comply with all government laws and regulation, to maintain high standard of
ethics in all operations and to act as a responsible members of the community.
The above strategic goals were taken from Atlas hondas Website: (AHL 2015)
VISION & MISSION OF AHL

1.7.1 Vision:
According to the official website, Companys Vision is as follows (AHL 2015)
Market leader in the motorcycle industry, coming up as a globally competitive
center of production and exports
CEOs vision is very clear. AHL is currently market leader in motorcycle industry
by a wide margin and would definitely like to retain this distinction, with current
55%market share, company is well positioned. However, in future after WTO
complete implementation, protection from foreign competition would reduce, as
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duty on imported motorcycles will be further brought down from the current level
of 75%
1.7.2 Mission:
According to the official website, Companys mission statement is as follows (AHL
2015)
A dynamic, profitable and growth oriented company through market leadership,
maximizing export and excellence in quality and service; to ensure attractive
returns to equity holders; reward employees according to their ability and
performance; to foster a network of researchers and engineers ensuing unique
contributions to the development of the industry; customer satisfaction and
protection of the environment by producing emission friendly green products and
to remain a good corporate citizen fulfilling its social responsibilities in all respects.
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CHAPTER-2. DIVISIONS /DEPARTMENTS OF AHL

DIVISIONS OF AHL
Atlas Honda have following department and divisions which integrate
together and are responsible for the success of the company at their own
part. The following data was adopted from the SOPs of Atlas Honda Limited,
provided by my manager. (AHL 1985)
LOGISTICS DEPARTMENT
Under vendor improvement Program Company ensure timely supply of raw
material; reduce rejection in parts and ensuring quality under the assistance
of quality assurance department. Improve the sourcing of vendor to make
them company strength.
Purchase department control all purchases other than auto (bike) like
stationary, kitchen items, office supplies and all type of purchase but not
motorbike or parts related.
Vendor procurement department purchase parts and other auto related
parts from local, head office, and from import. Many parts are manufactured
through in-house facility of AHL as frame body, paint, hub, fuel tank, cylinder
head casting, and shocks/cushions of bike in Sheikupura plant. Fourth
department under logistics is dispatch or delivery of finished goods (motor
bike) to the market as required by marketing department. Under this logistic
department control and handle the mobility and transition of company
product through company transport (trucks). The main functions of the AHL
can be summarized in the following ways:
Main Functions:
Vendor Procurement (VP)
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Local Purchase
Finished Goods Dispatch
Vendor Improvement Program (VIP)
Out Source Processing (OSP)
PRODUCTION PLANNING CONTROL:

This department control overall production, and also planning for future and
define the production level. Coordinate with the marketing department for
the production of the bikes. Defining the items to be procured locally. To
conduct warranty claim down meeting for the sake of reducing the warranty
claims. To define items to be procured from Honda Japan. Coordinate with
quality assurance department for the maintenance of quality standards.
Man management to mobilize the manpower for the execution of production
plan
Production department has three plants:
Assembly Plant
Engine Plant
Casting Plant
Functions:
Issuance of Production Plan
Execution of Production Plan
Forecasting Production on the basis of Sales Forecasting of
Marketing & Sales Department
Target setting in Production daily, weekly, monthly and yearly
basis
Synchronization between all the department into meet
production targets
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Two levels of Planning
Macro Level Planning
Micro Level Planning
QUALITY ASSURANCE DEPARTMENT:

This department assures at Atlas Honda Ltd. that motorcycles here are
produced with Highest Quality and their parts.
This department is dealing four sections.
In Coming & Receiving Unit
Quality Assurance vendor (QAV)
In House Section
Final Inspection
I.T DEPARTMENT:
Transition period in it department is going on and company is shifting its
entire system from oracle developer to SAP (system application & products
data process. For this purpose Siemens professionals are implementing
SAP modules in head office and providing training to AHL executives to be
familiar with SAP. Without SAP it is difficult for it department to prepare
global reports as per required by our foreign investor Japan. And there are
lots of hurdles to receive timely information. From September 1 SAP will be
implemented company has purchased its 6 modules out of 21 modules. So
it will be great transition period in companys IT department. AHLs Lahore
and Sheikhupura plant is linked with each other through radio link on one
server. So information can be shared on the same time on the same places.
The main advantage of this change is time saving, efficiency enhancing and
generating extra storage for data. Following are the functions of the IT
Department:
Main Functions:
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Software Development
Troubleshooting
Oracle & Developer 6AI
Windows upgrading & installation
UNIX
Lotus Notes
LAN & WAN System
Use of WAN
CORPORATE AFFAIRS:
All the company matters at corporate level are handle by corporate affairs
department. Like dealings with manufacturers union (PAMA, Pakistan
automotive manufacture association.).
Dealings with government in terms of taxes, import tariffs and other matters
etc.
Areas of activities:
Engineering development board:
It facilitates imports and less import duty by fulfilling the SRO (statutory
regulatory ordinance.) and took facility of less duty.
PSQCA:
It controls quality. And standardize it. If any product meets its standards it
gives a certificate for production. And this certificate is required to be
renewing after a specific time period.
PAMA (Pakistan automotive manufacture association):

All the government affairs are handled through PAMA. E.g. cost, taxes
etc.
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Valuation:
Helps to stop misuse of law. E.g. other motor cycle manufacturers imports
parts from china and say them to paste less price tag and take original price
from us to save themselves from taxes. So it was suggested that tax should
be on value or import item not on price.
Valuation of parts are done and duty will be according to their assigned
value.
HUMAN RESOURCE DEPARTMENT:

HR Department is the most important department in any organization. It
depicts the outer look as well as inner look to the market about the company
operations and image.
HR Department in Atlas Honda Ltd is increasingly invited to participate in
strategic planning and organizational goal setting. It has also becomes
involved in personal and career development (to prevent stagnation and to
develop talent), in interpersonal relations (to assure teamwork and accurate
communication), in attending to associates needs (to demonstrate the
organizations concern for them), and in associate participation in work life
(to help associates perform at their full capacity).
Objectives:
Meeting Organizational Goals
Developing Future Managers
Major Functions:
Human Resource Planning
Forecasting Human Resource Needs by keeping touch the
concerned departments
Retaining Employees
Attracting Employees
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Labor Relations Influences
Balancing Labor & Management concerns
Organizational Structure
HR Analysis
Job Analysis
Staffing
Training & Development
Compensation Management
Employee Evaluation
Employee Movement & Replacement
On & Off Timing:

Plant
7:45am~ 5:20pm
Head Office
8:20am ~ 5:40pm
Break Timing
1:15pm ~ 1:45pm
For Late Comers:

If less than 30 minutes late (Less than or equal to 4
times in a month), then it is marked as 1 absent.
If more than 30 minutes, then it is marked as short
leave
Leave Policy:
Compensation Privilege Leave (CPL) in lieu of working
in off day.
Give Rs.750 for Grade 12
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Can get leave in working day
Retirement Policy:
Age:
60Years
Whats given at retirement?
20 grams gold (Gift)
Termination Rate
2%
Resignation
Intimation Period 1 month
Human Resource Planning:
Requisition Slip from concerned department
Approval
Advertisement
Develop Application Pool
Short Listing of Applicants
Test of Applicants (50% marks are required to appear in

1st Interview)
1st Interview (GM of concerned department, Manager HR)
2nd Interview (CEO, GM HR & Admin, Manager Admin &

IR)
Complete Medical Examination from Shaukat Khanum

Memorial Hospital
Orientation
Complete Personal File
Entry in Personnel System
Probation Period (6 months)
Issue Confirmation Letter
Training and development:

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Training need assessment (TNA) (supervisor suggest
training)
Annual training
Benefits:
Car and motor cycle (grade 11 and above car, grade 12
and 13 motorcycle, grade 15 motor cycle with installments)
Bonuses
Gratuity
Provident fund
Group life insurance
Health insurance
Personal benefits
Compensatory leaves
Allowances
Personal loan
Performance appraisal system:

PDC (plan, do, check) process is followed for the appraisal system. Plan
is done by the people. Performance is also evaluated with by relative
evaluation process. The evaluation process is as follows.
Send appraisal form
Self-appraisal
Set objectives
Rationalization of rating with hod
Record hods comment
Post appraisal interview
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Collection of all forms by hod
Hod should write a separate note, (if required, recommend
salary adjustment)
STORES DEPARTMENT:
The main function of this department is to provide parts, materials and
services to production without any kind delay, and ensuring that there is no
stop in production assembly line of motorcycles in Atlas Honda Ltd.
The second function of this department is to keep record of all the parts and
materials, which are issuing and receiving.
Store Department can be classified into six further sections. Which are as
follows:
Receiving Section
Issuing Section
Raw Materials Store
General Store
FINANCE DEPARTMENT:
This department deals with the financial transactions and financial
management of Atlas Honda Ltd.
Sales Taxation
In atlas Sales tax is a department which is working on two type of sales tax the
account manage vendors tax on their sale and also manage tax payment on our
product sale
Salary Structure
Total attendance received from HR department
amount finalized by payroll
department according to number of hours of working in this account the accountant

make a voucher on the basis of bill then bill is signed by finance manager .So I
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have to enter in computer in SAP system .over time is also claimed as per grade .
Payroll department deduct conveyance, medical, EOBI and also canteen charges
from employees salary and also deducted advances,
Salaries & wages A\c
To Bank A\c
*****
*****
Taxation
Input sales tax

In input sales tax the department has to deduct present rate of sale tax from
vendors cheque and Sale tax is claimed by the government
Output sales tax
In output sales tax we have to pay tax on our sales
Withholding tax:
Sales tax department also deduct withholding tax from vender cheques there are
two types of withholding which is deducted on good the department deduct 3.5%
on goods and deduct 6% on supplies
The department reconciles receivable or payable by FBR at monthly
Factory Overhead Transactions
Employees who are linked by manufacturing and by production department those

salary expenses enter into FOH by SAP specific code e.g. 5210100
Accounts payables
In vendor payment department invoices come from billing department the

department have to verify bill invoice and vendor specific code and enter payment
in his account and create cheque for him. Sometime department directly paid or
directly received payment from supplier or customer they create three type of
voucher for the this purpose
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Cash received voucher in this voucher the receive cash against sale of their scrap
cash payable voucher in this type they pay cash to private contractor for their
service or good.
Financial reports
Preparation of financial reports on annual, semiannual and quarterly basis

accounts for a major function of the finance department.
Bank Reconciliation
Bank reconciliation deal with different types of banks in this department Atlas
finance system mostly, make payments through bank and also receive cash
through bank so at the end of the month department reconcile its balance with the
bank it is happened at every end of the month.
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CHAPTER#3 ORGANIZATIONAL ANALYSIS

SWOT ANALYSIS
The SWOT analysis of any company shows the standing of a company at a certain
point, I have done a SWOT analysis of AHL as follows:
3.1.1 Strengths:
Strong Organizational culture
Atlas Honda Limited follow a very bonding and strong organizational culture. Due
to the joint venture with the Japanese company, there is a strong influence of
Japanese organizational practices on the culture of Atlas HONDA Limited. There
is a distinct sense of respect between employees at all level, the practice of uniform
at both plant and at regional offices and the concept of a single cafeteria, create a
sense of equality among employees and motivate them.
Excellent Brand image.
AHL enjoys a significant brand strength in the market. The Brand image of Atlas
Honda is very strong, and bears a promise to quality and value of money, boosting
the sales of the company.
Qualified and well trained staff
AHLs HR policies are strict and adherent to such quality measures which ensure
the acquisition of highly trained and qualified staff, continuous programs of
employee professional and personal development are carried to ensure the up to
date knowledge of the skilled and non-skilled labor at AHL.
High quality products
Atlas Honda is a symbol of quality, companys products are perceived as high
quality product, among the buyers, and are regarded as a safe investment in a
vehicle.
ISO certified
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Atlas Honda achieved ISO 9001 certification in 1999 and ISO 14001 certification
in 2003. And since then they have competed the respective surveillance audits
periodically.
Resale value
Among the competitors in the market, Atlas Hondas products have the most resale
value in the used motorcycle market, providing the customers another incentive to
choose Honda over other competitors.
Market share and volume.
Atlas Honda enjoys the largest market share in the market, in terms of both volume
and presence.
Experienced, developed and loyal service dealers network.
AHL emphasize a lot on its service and dealer networks, these dealers which are
widely present in almost every region of Pakistan. This helps Company to ensure
the distribution of products even in remotely accessible areas.
Largest and penetrated 4-stroke mechanics network.
The Atlas Honda Family is an important part of the companys focus group. This
family consist of one of the largest and most penetrated mechanics network in
Pakistan, and they are involved in different promotional and mechanic welfare
programs.
Best warranty system.
An efficient and quickly accessible warranty system prevails in the company, the
warranty claims are dealt on an urgent basis and the customer is facilitated by the
use of local and divisional dealing of the claims, which is opposite to the central
dealings of the competitors.
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3.1.2 Weakness:
Lack of marketing in Spare Parts Division
Spare parts division lacks an effective and efficient marketing campaign, which
allows competitors to fill in the gaps and grasp additional market share.
High price of products
Prices of Atlas Honda products are very high as compared to its competitors in
market. This is a reason which discourages the consumers to purchase AHL
products.
Difficult to maintain high quality production at high market demand
AHL has started outsourcing many production units and parts, although AHL has
defined quality assurance procedures and policies, however there is still many
quality related problems and issues arising every day.
Complexity in coordination and communication among facilities, vendors and two
geographical locations i.e. Karachi and Sheikhupura plants
AHL uses a software for order booking, which is operated by the Karachi plant
having client servers in Lahore office and sheikhupura Plant, Although the process
of order taking and posting is very systemized, however it is highly complex and
time taking.
3.1.3 Opportunities:
Exploration of new markets.eg. Srilanka, Africa. And other countries.
AHL is already exporting to Afghanistan, Bangladesh and some African countries,
however many African and some south Asian markets are open for AHL to
penetrate and expand their business there.
Stabilize the improve process of export to Afghanistan, and Bangladesh to capture
more market share.
The current exports to Afghanistan and Bangladesh is both, less in number and
very costly to the company, By capturing more market share in these countries,
the cost can be reduced and the process of export can be stabilized.
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Newly developed areas/markets (e.g. Gawader)
With the development and construction of China-Pakistan Economic Corridor,
there are many regions of Pakistan which would be developed as industrial and
domestic areas, there is a great market opening there for AHL.
Industry expansion
The entry into car spare parts market as a whole division, 3 wheeler market, and
universal spare parts market, AHL can expand its industry on a good level.
Technology upgrading
Rapid change in technology is making the work more easy and cost effective,
however the technology being used in AHL is comparatively low graded then its
competitors like Yamaha. Upgradation can help achieve cost cuts and increase
profit.
3.1.4 Threats:
Chinese cheaper products challenges
Many Chinese companies have entered the market with low priced, and low quality
products. The increase in the number on periodic basis is alarming.
Strong competition from competitors in near future
Yamaha and other well-known brand of 2 wheelers are entering the market and
pose a threat to AHL.
Energy crisis
Energy crisis has affected the production of AHL in the past and is still a threat to
the production capacities of AHL in the near future, unless and until a complete
solution of this problem is discovered.
High rate of taxation
Increasing tax rates poses threat to every business, both import duty and other
direct and indirect taxes reduces AHLs profit with every upwards fluctuation.
28
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ORGANIZATIONAL STRUCTURE
C.E.O
I.T
Marketing
Engineerin
g
Logistics
Finance
Sales
Production
H.R
V. P
Human
Resources
S. Parts
Services
Local
Purchase
Industrial
Relation
F. G. D
Paint
I. Sales
DD & CC
V. I .P
Out Source
process
Frame
Assembly
Welding
Figure 2: Organizational Structure(Main)
29
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MARKETING OVERVEIW
3.3.1 Brand:
Honda enjoys a very strong brand image, following data from this website will show
you the market strength of AHL:(Bikez.com 2015)
What is Honda?
Honda is an entity that realizes the dreams of individuals and spreads joy to
people. Honda's philosophy, unique corporate culture, pursuit of challenges that
fulfill individuals' dreams and variety of products and activities born of challenges
will remain the foundation of the Honda brand. We will continue building on our
history of realizing people's dreams.
Honda's Driving Force:
The expectations and appreciation of people around the world for our dreams.
People see Honda as pursuing its dreams and always remaining a step ahead of
the world. This image and the peoples appreciation of our outlook will continue to
be the driving force of the Honda brand.
Honda's Goal in Branding:
To create a brand that is supported by peoples expectations and appreciation.
Global Brand Slogan:
Everyone has a dream, some goal or activity that gives their life a deeper meaning
and sparks passion. When we pursue a dream, we feel empowered. This power,
in turn, connects us to others who share the same dream. It gives us the strength
to overcome great challenges and inspires us to spread the joy of our dreams to
others. Ultimately, the power born of a dream is a creative force, capable of
producing revolutionary ideas. Honda encourages all is associates to pursue their
dreams. That is why we say we are a company built on dreams. In the new century,
the power of Honda's dreams will continue to lead new insights and technologies
in automobiles, motorcycles, power products, parts and other fields of mobility that
are just beginning to be imagined. Dreams are the very essence of Honda. The
dreams of our associates, customers, and supporters make Honda what it is today.
Our highly original ideas and free thinking have surprised the world on many
30
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occasions. Honda will continue to be Honda in the 21st century as long as we have
our dreams and original thinking. We will keep on dreaming and challenging
ourselves to realize our dreams. What will we come up with next? We will
continue creating exciting products and realizing peoples dreams and
expectations. Our slogan For Honda to remain Honda, and for everyone to realize
their aspirations, we must believe in "The Power of Dreams"
3.3.2 MARKETING MIX

PRODUCT
Honda currently offers six brands in the market: CD-70 and CG-125 (CD and
CG are manufacturing model codes for the motorcycle and 70 and 125 are the
displacement volumes of the engines). Among these there are Prider, Deluxe,
Dream and CBR.
In the past, Honda has offered more than 40 brands for its customers, which
were taken out of the production process due to their declining sales and
contracting markets.
The main features of Atlas Honda motorcycles that have given it the edge over
its customers are: High resale value, fuel economy, durability and reliability.
The product parts installed in the motorcycle are produced in-house, purchased
from vendors or imported from Japan as CKD (Complete Knock Down) units.
PLACE
Atlas Honda has two production plants at Karachi and Sheikhupura. At the
Karachi plant, only CD 70 is produced while at the Sheikhupura plant, CD 70
and CG 125 and rest of the models are produced. The Karachi plant is on 5
acres while the Sheikhupura plant is on 25 acres.
The distribution network of Honda comprises of 64 Antenna Dealers and 925
Service Dealers all over the country (Antenna Dealers are responsible for the
warranty claim by the customer and its relevant processing while Service
31
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Dealers are responsible for sales and parts replacement and service to
customers).
4-Stroke Mechanics are independent mechanics who are trained by Honda to
provide service to customers. Honda trains them in 4-stroke technology and
later if they provide excellent service and satisfaction to customers, Honda can
make them Service Dealers after quality assurance check.
PROMOTION
Atlas Honda practices advertising but only to a limited degree. The reason
being that it already has a well-established market and excess demand.
The need for advertising arises when the product is to be ventured out into
newer arenas or newer markets. Due to this factor, Atlas Honda has started
advertisements some time back.
The most common advertisement seen on the media is on GEO TV with a
catchy theme and tune.
Other than this advertisement, Honda uses sign boards, pana flex boards and
billboards to display its products.
Print media is also employed for advertisements due to the fact that newspaper
is a widely read medium of information.
Atlas Honda has sponsored Independence Day rallies in the past.
In the last Champions Trophy, Atlas Honda sponsored hockey matches but this
needs to be practiced on a more regular basis.
PRICE
For the CD 70, Atlas Honda has set the price at Rs.58500 and for CG-125, the
price is Rs. 73000. These prices have been revised after a Rs.10000
decrement in the price of Atlas Honda some time back.
Chinese competitors motorcycles lie in the range of Rs.30000-50000, due to
which people are going for Chinese motorcycles (cost factor but poor quality)
but still cannot reach the market leader spot that Honda has occupied since
many years.
32
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Yamaha and Suzuki have also followed in Hondas footsteps and decreased
their prices accordingly.
3.3.3 COMPETITORS BRANDS & MODELS

There are more than 70 motorcycles brands in Pakistan, to name a few top
competitors we can look at the following list.
Yamaha
Yb-100 Excellence
Yama-4
YBR 125
SD-110
SD-Flash
JS-70
JC-125 (china)
PH-70
RF-70
RF-125
DS-70
C-70 (CBU)
LF-70
LF-150
JH-70 (Remot-Self)
JH-70 (Without)
Suzuki
Sohrab
Pak hero
Hero
Star
Lifan
Jailing
33
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SIX KEY PRINCIPLES OF ATLAS HONDA:

Back to basics:
The analysis of customer, competition, company, and cost is put in focus at the
start of each endeavor.
3Rs (Respect, Recognition, and Reward):

To be a great company, we need to put respect, recognition, and reward-and in
that order-at the core of our management practices.
Cash is king:
The company is cash rich, we will have the resources to beat the competition. We
must re-assess and re-vitalize the focus on generating and preserving cash.
Analysis, analysis and analysis:

The decision making procedure be supported by a combination of data analysis
backed bygenba on the spot analysis.
Customer first:
The endeavor of our company need to be that we understand the company more
deeply and create market or financial solutions for him to buy his dreams productour product
850 k is must in 2015:

It is our goal to sell a minimum of 850k in 2015. For this we must use revolutionary
path instead of evolutionary in everything we do.
34
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CHAPTER-4. INTERNSHIP PROJECT

INTRODUCTION OF PROJECT
I was assigned a project to study and analyze the various spare parts marketing
companies in the market and to compare them with HONDA and make necessary
comparisons in order to draw some conclusions and draft suggestions.
DESCRIPTION OF PROJECT
The current project is intended to explore the 2 wheeler automotive industry in
Pakistan with special focus on the spare parts sector of the industry. In this project
I explored the spare parts markets in Lahore and identified the market behavior
and studied the market structure. After classifying major market share holders and
competitors (Atlas Honda, Crown Lifan, Ishiwachi, Road prince), I studied each
company, their management practices, did their SWOT analysis and interviewed
their A class managers.
This helped me to do a comparative analysis of all these companies and identify
the gaps to derive conclusions, and to make suggestion to Atlas Honda limited.
FINDINGS OF PROJECT
Spare parts contribute almost 9% of the companys sales revenue. This shows that
spare parts are an integral and important part of atlas Honda limited. So now that
we have judged and analyzed the importance of SPD in atlas Honda limited, I will
list down the major differences of atlas Honda limited and other companies.
1. Atlas Honda has a well reputed name and a great goodwill among the
consumers in market.
2. Honda gives highest margin to its dealers to enjoy.
3. Atlas Honda has largest market presence of 24%.
4. Atlas Honda has the slogan of proved quality and 100% genuine products.
5. Atlas Honda has a very strong distribution and retailer network.
But having said all that;
35
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Atlas Honda's spare parts are the highest priced parts in the market. This may
deprive company of the sale from the customers seeking low priced products.
Atlas Honda have largest amount of counterfeit products present in the market,
mainly because of the following reasons i identified
A) The brand name of Honda is sold a lot in market
B) The price of Honda is high in market so counterfeit will result in more
profits
C) Legal actions of Honda have been very soft in the recent past.
Although u can see Honda having highest or second highest sales in market, but
the presence of counterfeit brings down the original sales of AHL.
Atlas Honda has a week and stagnant marketing practices.
Atlas Honda has a no credit policy in contrast to the market trend
A DETAILED INTERNSHIP PROJECT REPORT IS ATTCHED

HERWITH THIS REPORT IN THE ANNEXURE-A.
36
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CHAPTER-5. LEARNING AS AN INTERN

DUTIES
I was placed in the spare parts division and my major duties included:
Market visit:
My first task was to visit the major spare part markets in Lahore and asses he
presence of different brands of spare parts in the market, and to enlist them and
also to communicate with the AHL shop managers as an outside person and to
inquire about the counterfeit in the market.
Market overview:
I was asked to make a market overview, with special focus on the 4 major spare
parts selling companies in Pakistan.
Customer Review:
In my visit to the markets I was supposed to identify target market and
demographic of the current customers of AHL spare parts.
Price Comparison:
A price comparison was assigned to me, collecting retail and wholesale price lists
of different companies and to make a comparison of the wholesaler margin and
customer retail price was included in this task.
PCMO Work
AHL is planning to launch Passenger car motor oil in the market, for that they
assigned us a task to visit the badami bagh market and the lorry ada market of
Motor oil and collect some initial information about them..
Internship project
An internship project was assigned to me the detail of which is attached with this
report as Annexure-A.
37
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ACCOMPLISHMENTS
Accomplished
major
marketing
survey
for
the
organization for their upcoming product PCMO

Completed my internship project assigned to me, and was
declared the best project in my department
NEW KNOWLEDGE ACQUIRED

I came across many things that were new to me, first of all the
industry was itself very much new to me. I never looked at the 2 wheeler industry
the way I look at it after completing my internship. Furthermore the spare parts
market was also very new to my knowledge. The practical and professional
language used in the market and the ways in which a dealer can be convinced and
how can u sell your desired product at your desired rate in the market also added
up as new additions in my mind.
Atlas Honda Limited is a great corporate giant in our country, being part of it was
itself a great honor and pleasure. The highly competitive and professional
environment of AHL host a very learning environment and the experienced and
trained staff help you a lot in your learning and grooming. AHL taught me a lot of
things; AHL helped me in experiencing the practical aspects of the theoretical
knowledge we gained in our university. Following are the things to highlight;
i.
Markets behavior
ii.
Structures
iii.
Selling techniques
iv.
Distribution methods
v.
Market dealing
vi.
Corporate dealing
vii.
Professional culture
viii.
Professional dressing
38
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ix.
New terminologies
x.
Market response
xi.
Marketing failures
xii.
Marketing techniques
xiii.
Survey techniques
xiv.
Interview skills
xv.
Summarization and classification.
The above listed are a few in many of the things I learned from AHL. I found this
internship full of learning, knowledge and new experiences.
PROBLEMS ENCOUNTERED
As an intern I faced many problems at my very first job. But the very friendly and
skilled staff of AHL was always there to help me and guide me through it.
I faced problems while identifying the markets, and penetrating it. Convincing
shopkeepers and dealers to even talk to you and then provide you your desired
information was also a very tricky job. Absorbing the organizational culture was
itself a big problem. Visiting different companies as a student and getting their
information was also a very difficult task.
But my mentors at AHL were always there to guide me through each and every
step and show me the right path to do things.
IMPACT ON CAREER
This internship left a great impact on my career goals and planning; I experienced
different fields and decided to change my specialization. It changed my perspective
of professional life industries. I learned how to survive in the very bursting lava of
professional competition and how to make your way up while leaving your place
vacant for new comers. I experienced interactions with many experienced
professionals of AHL as well as other companies and this helped me to alter my
perspective about the different level of managements in a hierarchy. This
39
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internship can be termed as a turning point in my career and will always be the
ground breaker for me till my professional life continues.
CHAPTER-6. RECOMMENDATIONS AND CONCLUSION

RECOMENDATIONS
Atlas Honda is a great corporate giant, however there are certain things which if
improved can lead to a better working of the company and improved performance
of the company.
1. Atlas Honda's spare parts are the highest priced parts in the market. This may
deprive company of the sale from the customers seeking low priced products.
2. Moreover Atlas Honda have largest amount of counterfeit products present in
the market, mainly because of the following reasons I identified
The brand name of Honda is sold a lot in market
The price of Honda is high in market so counterfeit will result in more
profits
Legal actions of Honda have been very soft in the recent past.
Although u can see HONDA having highest or second highest sales
in market, but the presence of counterfeit brings down the original
sales of AHL.
Atlas Honda has a NO credit policy in contrast to the market trend.
3. Marketing policies can be improvised by making them more mechanic focused
and by introducing more attractive schemes for them.
4. Atlas Honda have a large share in spare parts market but that is due to large
number of motorcycles the brand cater in the market, however this is not the
case with the other leading companies, by focusing more on non AHL bikes and
their parts, HONDA can acquire more market share.
5. A strong legal team should be taking actions against the counterfeit in market
and necessary actions like awareness about genuine products and security
steakers etc should be taken in order to reduce the counterfeit. Only reducing
counterfeit in market can boost up the sales.
6. Credit policy should be introduce, to cope up with the competitors in the market.
40
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7. Spare parts division should be decentralized and the order taking and delivering
process should be simplified and quick.
CONCLUSION
Atlas Honda Limited is a leading company in our country, It follows some of the
best organizational policies and practice them. This internship introduced me to
many aspects of the working of AHL in Pakistan. I observed some gaps in their
marketing policies of Spare parts division, and improving of which will help the
company to grow and expand in this sector as well.
41
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JARGONS & ACRONYMS

AHL
Atlas Honda Limited
CRLF
Crown Lifan
ISH
IshiWachi
RP
Road Prince
CPL
Compensation Privileged leave
PBS
Pakistan Beau rue of statistics
PCMO
Passenger car motor oil
NOTE: IN THE COMPILATION OF ABOVE REPORT ATLAS HONDA

WEBSITE AND THEIR STANDARD OPERATIONG PROCEDURES WERE
WIDELY USED.(AHL 2015)
42
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BIBLIOGRAPHY
1. Admin (2015). "Bikes Articles."
http://bikes.qeemat.com/news/.
Retrieved
26/08,
2015,
from
2. AHL (2015). "ATLAS

www.atlashonda.com.pk.
Retrieved
26/08,
2015,
from
HONDA."
3. AHL (2015, August 24, 2015 @ 2:39 pm). "Company l Atlas Honda." Retrieved
26/08, 2015, from http://atlashonda.com.pk/corporate/company/.
4. AHL (2015, August 24, 2015 @ 2:39 pm). "Strategic Goals l Atlas honda."
Retrieved 26/8, 2015, from http://atlashonda.com.pk/corporate/strategic-goals/.
5. AHL (2015, August 24). "Vision & Mission l Atlas honda." Retrieved 26/08, 2015,
from http://atlashonda.com.pk/corporate/vision/.
6. AHL, C. D. (1985). SOPs AHL, Atlas Honda Limited. 2: 234.
7. Bikez.com (2015, 2015). "2015 Atlas honda." Retrieved 26/8, 2015, from
http://www.bikez.com/motorcycles/atlas_honda_cbr_150_2015.php.
8. defence.pk (2015, 25-8-15). "Pakistan Two Wheeler Industry." Retrieved 26/8,
2015, from http://defence.pk/threads/pakistan-two-wheeler-industry.31336/.
9. Honda, A. (2014). Annual Report 2014, Atlah honda Ltd. 1st: 103.
43
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ANNEXURE-A
Internship project presented at Atlas Honda
44
________________________________________________________________________
Internship Project
Atlas Honda Limited
Spare Parts Division
A comparative study of spare parts companies in Pakistan; with special
focus on RP, CRLF, ISH & HONDA
Dated: 29/07/2015
45
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Contents
Sr.
Description
Personal Statement
Introduction of Project
Executive Summary
Industrial Review
Market Review
Consumer Behavior
Detailed overview of selected companies
Comparative analysis of companies
Differences with Atlas HONDA
10
Personal Learning
11
Suggestions
46
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Personal Statement
I am a student of BSBA (Hons.) at Department of Management Sciences,
COMSATS Institute of Science and Technology, Lahore Campus. My degree
majors are Marketing and Finance. Before this I did my Intermediate from
Government College University, Lahore, through Lahore board of intermediate and
secondary education. Working for Atlas Honda limited as an intern was a wonderful
experience, I learned a lot from the highly trained and experienced staff of the
company and they helped me in exploring the practical aspects of the theoretical
knowledge we acquired in our university. Atlas Honda is a wonderful place for
those who want to learn and excel in the professional life, and it feels wonderful
being a part of such a well reputed organization.
Introduction of Project
Executive Summary
The current project is intended to explore the 2 wheeler automotive industry in
Pakistan with special focus on the spare parts sector of the industry. In this project
I explored the spare parts markets in Lahore and identified the market behavior
and studied the market structure. After classifying major market share holders and
competitors (Atlas Honda, Crown Lifan, Ishiwachi, Road prince), I studied each
company, their management practices, did their SWOT analysis and interviewed
their A class managers.
This helped me to do a comparative analysis of all these companies and identify
the gaps to derive conclusions, and to make suggestion to Atlas Honda limited.
Industry:
Two Wheeler Industry In Pakistan
Pakistan motorcycle industry is flourishing as it met 95% localization through state
of the art technology implementation, billions of investment and hundred
thousands of skilled work forces. In this potential industry, contributors have played
their vital role to not only making it able to compensate local demand but also for
exporting various models of motorbikes in different countries. Pakistan,
motorcycles sales stood at 1.44 million units in first 10 months of FY14 according
to Pakistan Bureau of Statistics (PBS) data.
Presently there are 43+ motorcycle assemblers in the country. Out of these, there
are three Japanese assemblers (Honda, Yamaha and Suzuki), while the remaining
40+ assemble Chinese motorcycles. These assemblers buy parts, sub-assemblies
and assemblies from over 200 large, medium and small vendors located in Karachi
and Lahore. It is estimated that the motorcycle industry employs to more than
200,000 people directly and indirectly.
The motorcycle industry in Pakistan has recorded strong growth over the past
decade, mainly due to increased urbanization and induction of many new players
in the market who are manufacturing and providing motorbikes at much cheaper
prices, but nobody has been able to beat the market leader, Atlas Honda.
47
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Two Wheeler Spare Parts Industry In Pakistan
Like the two wheeler vehicle industry in Pakistan, spare parts industry is also a
leading industry as it generates a handsome amount of revenue for the automotive
manufacturers as well as local sole part dealers. There are three types of business
present in the industry, all having its own perks and privileges. First category is of
those multinational and national organizations who are manufacturing spare parts
in Pakistan and is selling in the local market. Second category is of those who are
importing parts and selling in the market, however there is also a third type of
organizations who are both manufacturing locally and are also importing from
outside countries.
Whatever the source of production is the industry of spare parts is highly
competitive and is currently in its growth stage, while the business in the said
industry is highly profitable and stable, there are certain factors which threaten this
industry in the near future. The detail of which will be discussed later in this report.
Market Review
Market in spare parts is not much dispersed, major transactions occur in the two
large cities of Pakistan, namely Lahore and Karachi. However different companies
have their production plants, ware houses and regional offices all across the
country.
Main Competitors
With a variety of large numbers of local and international brands available in
markets I was able to identify following four major competitors in the market
1. Atlas Honda (AH)
2. Crown Lifan (CRLF)
3. Ishiwachi (ISH)
4. Road prince (RP)
Major Markets
In my study I observed three main markets of Lahore city including Macleod Road,
Lytton Road and Multan Road, among those I found Macleod road to be main hub
or business center of the city in terms of two wheelers spare parts. Upon careful
and detailed study of the market I was able to calculate market presence of
different brands of spare parts.
Market Presence
48
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Market : Macleod Road
Visit Date: 24/07/2015
Total number of shops counted: 174
Documented Reference: Pictures of each and every shop was taken.
Brand
Number
of Market
Outlets
presence
Approximat
ed
Mix(others)
65
37%
Atlas Honda
42
24%
CRLF
23
13%
Road Prince
15
9%
ISH
3%
Yamaha
3%
Eagle Eye
2.50%
United
2.50%
Ravi
2%
Kclf
1.50%
Suzuki
1.50%
Quingqi
0.50%
RBX
0.50%
Sohrab
0.50%
Star Lf
0.50%
Totals
174
100%
Consumer Behavior
49
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Customer Demographics
Customers in spare parts market are rather diverse instead of being close.
Following customer demographics can be seen in the market;
Trait
Detail
Gender
Mostly males gender are the key consumer of the spare
parts, because in Pakistan it is considered that only
males can ride the two wheeler vehicle.
Age
16years - 60years old
Geographic factor
The market for spare parts is spread in all over the
Pakistan with consumption increasing as you move
towards more populated areas of Pakistan like Punjab
and sindh.
Socio
Economic Mostly customer want low priced products but moderate
factor
price parts can also be seen in market .
Psychological Factor The mindset of the customer is more price oriented then
quality conscious, however there is a certain set of
people which are quality conscious as well.
Detailed overview of selected companies:

Crown Lifan
50
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Basic Introduction
Lifan Group China made an agreement with Crown-Lifans Group Karachi, planning
ahead to form a company named CROWN MOTORCYCLE COMPANY in 2003.
Now the parts of Crown Lifan are available in each and every corner of Pakistan.
These parts have same claimed qualities just like the Japanese parts but in price
wise it is too much cheaper than the Japanese parts.
According to the crown Lifan, they are the market leaders and dont have any
competitor in market. They have 300 fast moving items. And more than 1000 parts
of various brands of motorcycles like SOHRAB,YAMAHA, SUZUKI, HONDA,
3Wheelers, Generators and some universal parts as well. With the sale of
universal parts on the top chart.
Unique Selling Preposition
The unique selling preposition of CRLF is the Crown Lifan FAMILY, it consists of
150 members comprising of dealers, distributors, mechanics, retailers, company
officials and executives. The members of this family have direct access to the CEO
of the company and each and every one of them can contact each other through
this network and they meet at least once in a year.
Marketing and Promotional Activities
CRLF is busy in some focused and planned marketing and promotional activities.
It includes Incentives, shades, mechanics uniform, festivals celebrations, coolers,
gifts, cakes on birthdays, foreign trips, dealer incentives, etc. In last year CRLF
sponsored a group of 250 people to CHINA on a one week vacation and that trip
is still very highly discussed and admired among the retailers and distributors in
the market. According to the CRLFs representative; OTHERS ARE DICTATORS,
WE ARE EDUCATORS.
SWOT Analysis
These are the strengths, weaknesses, opportunities and threats listed by the
official of the company.
1. Strengths:
CRLF Family
2. Weaknesses:
Variety short every time
3. Opportunities:
Local Production
4. Threat:
Govt. Policies
Market Share
According to my observation CRLF enjoy 35% market share in terms of sales in
market.
Counterfeit
There is very low proportion of counterfeit of CRLF in market, the company officials
says it is the result of the rapid and strict action of their legal team against any
litigation that evolve in the market.
Distribution Channel
They distribute and sell their products by the mean of the CRLF family and order
placing and stock delivery take place from the head office. They have a credit
control system of 7-17-21 days.
Ishiwachi (ISH)
51
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Basic Introduction
ISH is a parts importing company with their products coming from Malaysia,
Taiwan, Vietnam and China. It was established in 2004 and from since it is working
under the umbrella of the slogan of quality parts and is considered as a quality part
supplier in the market. ISH listed Atlas HONDA as the competitors in the market
as they claim that both the companies are working on quality.
No compromise on quality is what the Managing Director said while we interviewed
him and asked him about his companys USPs. According to him ISH is determined
to provide high quality parts to the customers and for that they are willing to take
the price a bit higher.
ISH is also doing detailed marketing activities, they are working on mechanics, and
they have these empty boxes schemes which are very popular in the market.
SWOT Analysis
1. Strengths:
Quality
2. Weaknesses:
Distribution and dealer Network
3. Opportunities:
Regions Expansion
4. Threat:
Local and low priced Industry
Market Share
ISH enjoys 7-8% market share but is increasing day by day.
Counterfeit
ISH is currently having no counterfeit in market, however there are risks in future.
Super Distributor Distributors Retailers
ISH deals on 70 % cash and 30 % credit business.
Road Prince
Basic Introduction
Omega Industries came into existence in 1995. Today, It is one of the top
motorcycles & rickshaws manufacturer in Pakistan. They have a team of
professionals and our network of sales, service and spare parts is covering almost
the whole country.
Road Prince listed Crown Lifan as their competitors as they follow them in their
marketing and pricing strategies.
Mechanics Contacts and Reward system
Road Prince is investing heavily in marketing and promotional activities, they have
Cash prizes, gold coin schemes, UMRAH tickets and foreign tours for mechanics
and dealers.
SWOT Analysis
52
________________________________________________________________________
1. Strengths:
Financial Strength/Credit limit
2. Weaknesses:
Stagnant marketing styles and strategies
3. Opportunities:
Place to become market leader
4. Threat:
Local Industry
Market Share
Road prince enjoys 9%-10% of market share.
Counterfeit
Road Prince have 12-13% counterfeit in market, they have a legal team working
on the only person supplying illegitimate RP products in market, but according to
the GM operations spare parts, the case is taking longer than expected and case
is about to settle.
Mega Distributor -> Distributor -> Sub Distributor -> Retailer
They give their mega distributor a credit of 60 days.
Atlas Honda
Basic Introduction
Atlas Honda Limited (AHL) is a joint venture between the Atlas Group and Honda
Motor Co. Ltd., Japan. The company was created by the merger of Panjdarya
Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing
concerns were established by the Atlas Group.
Atlas Honda Limited offers state of the art OEM standard Parts with precision
technology for replacement market of all Honda Models produced indigenously.
These spare parts are perfectly coordinated with one another and give safety,
reliability and performance of optimum level.
Atlas Honda genuine Oil best suits all types of engines based on Japanese
technology and is blended and formulated for maximum performance of your bike.
Dealership and Service Network and high quality genuine parts.
Atlas Honda Limited is busy doing direct and indirect marketing and push and pull
promotional schemes, they have discounts for dealers and mechanics, however a
lack of incentives and gifts as compared to other companies.
SWOT Analysis
1. Strengths:
Quality and genuine products
2. Weaknesses:
stagnant marketing strategies
3. Opportunities:
3 wheeler and car parts market
4. Threat:
Counterfeit and local industry
53
________________________________________________________________________
Market Share
Atlas Honda enjoys the market share of 24-25% in terms of sales in market.
Counterfeit
There is approximately 30-35% counterfeit of Atlas Honda in market, according
toofficials at atlas Honda they have a legal team to defend the copy rights and
trademarks they have, but the problem seems to prevails.
Atlas Honda Distribute its products centrally from Karachi office and through their
dealership network mainly and also involving retailers as well.
Price Comparison of major Parts

Due to large number of parts and product range offered by companies it is not
possible to compare each and every product, however a glimpse of their
comparison can be seen by comparing the top 10 parts used in a CD-70
motorcycle
Here is the price comparison of 10 most used parts in a CD-70 motorcycle of the
considered companies
Sr Part Name
HONDA
CRLF
ISH
Road
W.P
W.P
W.P
Prince
R.P
R.P
R.P
W.P
R.P
1 Air Filter
30
40
30
45
28
33
2 Air filter Euro
70
100
49
65
51
59
3 Brake Shoe
170 190
130 138
140
165 140
161
4 Cable Clutch
90
120
64
73
65
80
65
75
5 Chain Sprocket 840 900
655 700
715
740 645
742
Kit
6 Clutch Plate
180 220
91
103
100
130 87
101
7 Piston Kit
545 580
312 355
375
405 370
426
8 Switch
180 220
122 135
125
160 114
132
9 Spark Plug
76
90
45
56
55
75
53
61
10 Wiring
525 550
290 325
315
350 295
340
Analysis Based on the comparison;
1. Retail Price Analysis
54
________________________________________________________________________
Wiring
Spark Plug
Switch
Piston Kit
Road Prince
Clutch Plate
ISH
Chain Sprocket Kit
CRLF
Cable Clutch
Honda
Brake Shoe
Air filter Euro
Air Filter
0
200
400
600
800
1000
2. Whole sale margin analysis
Wiring
Spark Plug
Switch
Piston Kit
Road Prince
Clutch Plate
ISH
Chain Sprocket Kit
CRLF
HONDA
Cable Clutch
Brake Shoe
Air filter Euro
Air Filter
0
20
40
55
60
80
100
120
________________________________________________________________________
Average Margin given to retailers
HONDA
ISH
ROAD PRINCE
CRLF
30.4
24.6
28.2
15.3
Counterfeit
One problem that the automobile parts companies face in the market is counterfeit;
these are non original illegitimate and non genuine parts. After visiting the market
following statistics were found:
Brand
Number of Outlets
Atlas Honda
CRLF
Eagle Eye
ISH
Kclf
Quingqi
Ravi
RBX
Road Prince
Sohrab
Suzuki
United
Yamaha
Star Lf
Mix(others)
35%
3-4%
1%
1%
Nil
5%
2%
Nil
12-13%
Nil
7-8%
1%
3%
Nil
20-30%
Note: this data is not calculated, it is summarized on the basis of what dealers
showed us and told us. Although we self witnessed the counterfeit products,
however there is a probability that it may contradict positively or negatively in
reality. Atlas Honda Limited undertook national campaigns to educate customer
about the detrimental effects of using fake parts. These efforts, along with a wider
distribution network and improved customer accessibility, helped to increase
revenue to over Rs.4.0 billion. However, the influx of illegally sourced spare parts
continues to pose a major threat to this business in the organized sector.
Major Differences of Atlas HONDA and others

56
________________________________________________________________________
To list down the major differences between atlas Honda and other companies, lets
just see what SPD(Spare parts Division) is to Atlas Honda Limited.
Strategic goals of AHL 2015: To be the industry leader in indigenization of
motorcycle parts.
In 2015: The Spare Parts business registered an impressive growth of 28.8%
Import of Parts: Due to imports of raw materials, plant and machinery, motorcycle
parts and other related items, Company is sensitive to fluctuation in foreign
currency.
Financial Year ended 2015
Rs
% shares
Revenue
from Spare
parts
4082056000 91.0818 %
Revenue
8.918204
from Bikes 41690121000 %
Total
Revenue
45772177000
Spare parts contribute almost 9% of the companys sales revenue.
This shows that spare parts are an integral and important part of Atlas Honda
Limited. So now that we have judged and analyzed the importance of SPD in Atlas
Honda limited, I will list down the major differences of Atlas Honda limited and
other companies.
1. Atlas Honda has a well reputed name and a great goodwill among the
consumers in market.
2. Honda gives highest margin to its dealers to enjoy.
3. Atlas Honda has largest market presence of 24%.
4. Atlas Honda has the slogan of proved quality and 100% genuine products.
5. Atlas Honda has a very strong distribution and retailer network.
But having said all that;
2. Atlas Honda's spare parts are the highest priced parts in the market. This
may deprive company of the sale from the customers seeking low priced
products.
3. Atlas Honda have largest amount of counterfeit products present in the
market, mainly because of the following reasons I identified
a) The brand name of Honda is sold a lot in market
b) The price of Honda is high in market so counterfeit will result in more
profits
c) Legal actions of Honda have been very soft in the recent past.
4.
Although u can see HONDA having highest or second highest sales in

market, but the presence of counterfeit brings down the original sales of
AHL.
57
________________________________________________________________________
5. Atlas Honda has a NO credit policy in contrast to the market trend.
Suggestions
1. Atlas Honda is an excellent company with a legacy of more than 50 years.
However there are some things where I think the company should work
more and by doing that the company can achieve more.
2. Marketing policies can be improvised by getting more mechanic focused
and by introducing more attractive schemes for them.
3. Atlas Honda have a large share in spare parts market but that is due to large
number of motorcycles the brand cater in the market, however this is not
the case with the other leading companies, by focusing more on non AHL
bikes and their parts, HONDA can acquire more market share.
4. A strong legal team should be taking actions against the counterfeit in
market and necessary actions like awareness about genuine products and
security steakers etc should be taken in order to reduce the counterfeit. Only
reducing counterfeit in market can boost up the sales.
Learning
Atlas Honda Limited is a great corporate giant in our country, being part of it was
itself a great honor and pleasure. The highly competitive and professional
environment of AHL host a very learning environment and the experienced and
trained staff help you a lot in your learning and grooming. AHL taught me a lot of
things; AHL helped me in experiencing the practical aspects of the theoretical
knowledge we gained in our university. Following are the things to highlight;
1. Markets behavior
2. Structures
3. Selling techniques
4. Distribution methods
5. Market dealing
6. Corporate dealing
7. Professional culture
8. Professional dressing
9. New terminologies
10. Market response
11. Marketing failures
12. Marketing techniques
13. Survey techniques
14. Interview skills
The above listed are a few in many of the things I learned from AHL. I found
this internship full of learning, knowledge and new experiences.
58

Internship Report AHL 2015.

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________________________________________________________________________

DEPARTMENT OF MANAGEMENT SCIENCES

ATLAS HONDA LIMITED, PAKISTAN

REPORT SUBMITTED BY:

SUBMISSION DATE: 20/08/2015

Internship Report On AHL

Internship Report On AHL

Internship Report On AHL

Internship Report On AHL

CHAPTER-1. BACK GROUND OF HOST ORGANIZATION

TWO WHEELER SPARE PARTS INDUSTRY IN PAKISTAN:

Internship Report On AHL

AN OVERVIEW OF ATLAS HONDA LIMITED

1.3.2 The Company

management is striving to modernize company operations by adapting applicable

Internship Report On AHL

1.3.4 Annual Production Capacity

1.3.5 Authorized Capital

1.5 Billion (rupees)

Internship Report On AHL

1.3.7 Regional Offices

Lahore: 1 Mecloed Road Lahore-54000 [ (042) 111-111-245, 3722501517, 37233515-17 ]

Rawalpindi: 60-Bank Road, Saddar [ (051) 5120494-6, 5120497 ]

Multan: Azmat Wasti Road Multan-60000 [ (061) 4540054, 4540028,

Rahim Yar Khan Atlas Honda Limited, 4B Zamindara Colony [(068)

1.3.8 Stock Exchange Enlistments

Karachi Stock Exchange

Lahore Stock Exchange

1.3.9 Membership of Industry & Associations

Pakistan Automotive Manufacturers Association.

Marketing Association of Pakistan.

Management Association of Pakistan.

Lahore Chamber of Commerce & Industry.

Sheikhupura Chamber of Commerce & Industry.

Overseas Chamber of Commerce & Industry.

Karachi Chamber of Commerce & Industry.

Internship Report On AHL

Figure 1: Products adopted from (AHL 2015)

STRATEGIC GOALS OF AHL

1.6.6 Corporate Citizens

VISION & MISSION OF AHL

Internship Report On AHL

Internship Report On AHL

CHAPTER-2. DIVISIONS /DEPARTMENTS OF AHL

PRODUCTION PLANNING CONTROL:

Internship Report On AHL

Macro Level Planning

Micro Level Planning

QUALITY ASSURANCE DEPARTMENT:

In Coming & Receiving Unit

Quality Assurance vendor (QAV)

Internship Report On AHL

PAMA (Pakistan automotive manufacture association):

Internship Report On AHL

HUMAN RESOURCE DEPARTMENT:

On & Off Timing:

For Late Comers:

Internship Report On AHL

Whats given at retirement?

20 grams gold (Gift)

Intimation Period 1 month

Human Resource Planning:

Requisition Slip from concerned department

Develop Application Pool