Atlas Honda has signalled plans to enter Pakistan’s premium motorcycle market with 250cc and 500cc models if demand for higher capacity bikes continues to strengthen.
The announcement came during the company’s MY26 corporate briefing, attended by analysts from Topline Securities. Company management said growing consumer interest in premium motorcycles has encouraged Atlas Honda to consider expanding beyond its traditional lineup. It added that higher overseas remittances have helped boost demand for larger engine motorcycles in Pakistan.
The move would mark a significant shift for Atlas Honda, which has long dominated Pakistan’s commuter motorcycle segment through models such as the CD70, CG125, CB125F and CB150F. While the company has not confirmed launch dates or specific models, the indication suggests it is closely monitoring the country’s evolving motorcycle market.
Industry experts say the premium motorcycle segment has expanded steadily in recent years as buyers increasingly seek motorcycles with higher performance, advanced features and improved touring capabilities.
Manufacturing capacity to reach 2 million motorcycles
Atlas Honda also unveiled an ambitious production expansion plan to meet growing demand.
The company will increase its annual manufacturing capacity from 1.65 million motorcycles to 2 million units after completing an expansion project by December 2026. Management expects the project to cost between Rs5 billion and Rs6 billion.
According to the company, current production already exceeds its rated capacity. It has relied on overtime and support from its vendor network to maintain supplies and meet strong customer demand.
Management said Pakistan’s overall two wheeler market has recovered to around 2.3 million units annually. It also noted that although Chinese motorcycle brands have lost market share from previous highs, motorcycles above 100cc continue to gain popularity because of improving consumer demand.
The expansion reflects Atlas Honda’s confidence in the local market despite broader economic challenges. Pakistan’s motorcycle industry has shown signs of recovery over the past year as easing inflation, stronger remittance inflows and better rural incomes have supported consumer spending.
No immediate EV expansion planned
While Atlas Honda is exploring larger motorcycles, it has ruled out additional investment in electric motorcycle production for now.
The company said its existing electric vehicle facilities can comfortably meet expected demand, leaving no immediate need for further expansion in that segment. Management also noted that Atlas Honda has not increased motorcycle prices over the past three years, except for adjustments resulting from government taxes and levies.
Looking ahead, the company remains optimistic about sales growth. It expects improving farm incomes to continue supporting motorcycle purchases across Pakistan, particularly in rural markets where two wheelers remain an affordable and essential mode of transport.
If Atlas Honda proceeds with 250cc and 500cc motorcycles, the company could challenge imported premium brands and significantly reshape Pakistan’s higher capacity motorcycle market.
