Strong remittances, growing demand for premium motorcycles, and expanding production capacity encourage Atlas Honda to explore larger engine models in Pakistan.
Atlas Honda Limited (ATLH) is considering the launch of 250cc and 500cc motorcycles in Pakistan as demand for higher-engine-capacity bikes continues to increase, according to a report issued by Topline Securities following the company’s corporate briefing session.
Atlas Honda management indicated growing sales of premium motorcycles, driven largely by higher remittance inflows and improving consumer purchasing power.
The company stated that if this trend persists, it may introduce 250cc and 500cc models to capitalize on the expanding market for heavy bikes.
According to Topline Securities, Atlas Honda’s management shared these insights during its MY26 Corporate Briefing Session (CBS), where Chief Executive Officer Saquib Shiraz and other senior officials discussed the company’s financial performance, growth prospects, and expansion plans.
The company identified four key factors that could contribute to enhancing shareholder value over the coming years.
These include continued double-digit growth in motorcycle sales volumes, expansion of the after-sales and distribution network, an increasing share of motorcycles above 100cc in the sales mix, and improved treasury performance supported by substantial cash reserves.
Atlas Honda currently has an annual rated production capacity of 1.65 million motorcycles, or around 137,500 units per month. However, production reached a record 163,000 units in May as the company utilized overtime operations and support from its vendor ecosystem to meet strong market demand.
Management further disclosed that ongoing expansion projects will raise annual capacity to approximately 2 million units by December 2026.
The expansion is expected to require capital expenditure of around Rs5 billion to Rs6 billion. While the company can already assemble more than 2.5 million motorcycles annually, engine production capacity remains the primary constraint.
According to the briefing, future capacity enhancements will depend largely on growth in the internal combustion engine (ICE) motorcycle segment.
Atlas Honda believes its current facilities are sufficient to meet expected demand for electric motorcycles and therefore does not foresee the need for additional EV-related capacity expansion at this stage.
Pakistan’s two-wheeler market continues to benefit from rising fuel costs, prompting many consumers to shift from four-wheelers to motorcycles. The overall motorcycle market is estimated at around 2.3 million units annually, although still below the peak of 2.7 million units recorded in 2017.
Atlas Honda also emphasized that motorcycles above 100cc deliver significantly higher profit margins compared to the 70cc segment, which still accounts for around 50–55% of total sales. Demand in both segments is currently growing, supporting the company’s positive outlook.
The management remains optimistic about the agricultural sector, noting that nearly 60% of its customer base is linked to farming activities. Improved crop prices and stronger farm incomes are expected to support motorcycle sales and help sustain double-digit growth in the years ahead.
Regarding policy developments, Atlas Honda stated that discussions about a new auto policy remain speculative, adding that no official announcements have been made and recent tariff adjustments under the FY2026-27 budget have not materially affected the motorcycle industry so far.