Honda Atlas Cars faces setback as LHC upholds CCP inquiry into alleged market manipulation

LAHORE – The Lahore High Court has upheld the ongoing inquiry by the Competition Commission of Pakistan (CCP) into Honda Atlas Cars (Pakistan) Limited, rejecting the automaker’s challenge to transfer the case.

The court ruled that the inquiry, which began in 2018, is in accordance with the law and directed Honda Atlas Cars to fully cooperate with the process.

The court’s decision comes after a series of legal maneuvers by Honda, which had attempted to stall the CCP’s investigation, alleging that the commission lacked jurisdiction.

Honda had been accused of exploiting consumers through practices such as premium payments, delayed deliveries, and price hikes. Despite multiple official notices from CCP between 2018 and 2022, Honda failed to comply and instead filed several petitions to delay the inquiry.

The CCP, which aims to curb anti-competitive practices in Pakistan’s growing automotive market, had argued that its investigation covered potential violations of Sections 3 and 4 of the Competition Act, 2010. The case centers around Honda’s alleged attempts to undermine consumer rights and market fairness.

The high court emphasized the importance of market transparency and the need for information gathering for effective market regulation. The court also noted that a prolonged inquiry without progress violates the principles of justice, ordering the CCP to conclude the inquiry within six months.

Previously, on September, the LHC had rejected Honda’s request to transfer the case, which set the stage for final arguments scheduled for October 13, 2025. The automaker’s continued legal stalling has delayed the inquiry, which is now poised for a decisive ruling next month.

With 13 carmakers now active in Pakistan, compared to just three when the inquiry began, the CCP’s probe into Honda has become a landmark case for consumer rights and competition laws in Pakistan’s auto industry.

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