Honda to double production capacity at motorcycle plant in Pakistan

Atlas Honda Ltd. (AHL), Honda's motorcycle production and sales joint venture in Pakistan, announced plans to double the production capacity of its existing Sheikhupura plant from the current 600,000 units to 1.2 million units during the next three years to accommodate the expected expansion of the motorcycle market in Pakistan.

AHL is currently producing motorcycles at two plants – the Karachi plant in the southern part of the country and the Sheikhupura plant in the northeastern part of the country, with annual production capacity of 150,000 units and 600,000 units, respectively.

For this capacity expansion plan, AHL will first add another production line to the Sheikhupura plant with the plan to begin production on this new line in October 2016. AHL will further expand the overall capacity in stages. Including the addition of a new line and strengthening of its production system and capability, AHL is planning to invest approximately US$ 50 million in this three-year capacity expansion, which also will add approximately 1,800 new associates. After this expansion, AHL's overall annual production capacity will be increased to 1.35 million units.

With an overall population of approximately 190 million people, the size of the motorcycle market in Pakistan has been at approximately 1.3 million units for the last several years. However, Honda says the market began to show rapid growth from the beginning of this year.