Atlas Honda to increase production to 1.35m units per year


Salim Ahmed

Lahore—Atlas Honda Limited (AHL) has successfully completed its expansion project for increasing production from the present 750,000 units per annum to 1.35 million units per year. The total investment in the project is US $100 million by the company and another US $60 million by its associated undertaking and vendors over a period of five years. A new line has started test production and regular production will start from October 20th. The company will continue to invest in the next five years in new model development and the machinery, dies molds, fittings and fixtures that are needed for an array of new models and variants that the company is planning to launch.
“We announced our investment sometime back for the expansion of our motorcycle operations in Pakistan. And today we have achieved this,” said the PR representative while talking to a group of journalists during their visit to the company’s Sheikhupura plant. He said the expansion will generate 5650 direct and indirect jobs in the company, its associate companies and part manufacturing partners. ‘A five-year expansion plan has already been implemented to double the installed capacity of our Sheikhupura factory, near Lahore, from the existing 0.6 million to over 1.2 million units per annum,’ he added.
The representative of the company added that an investment of US $100 million will be made directly by Atlas Honda, whereas $60 million will be invested over the next five years by Atlas Honda’s associated companies and by the company’s parts suppliers to expand their own respective facilities and to develop capacities needed for new models to be introduced. The company’s mother plant is based in Karachi spread over 5 acres, the journalists were informed. The Company representative added that Atlas Group signed technical agreement with Honda in 1963 and plant started commercial production subsequently. In 1964, production began with seven motorcycles per day. Now plant production has reached to 550 units a day.
Besides manufacturing Honda motorcycles, he added, the company produces various value added auto parts for in-house consumption as well as catering the demand of after sale market. ‘The larger of the two plants is situated in Sheikhupura city, Punjab. This plant has the country’s largest in-house manufacturing facility,’ he added. The visitors were informed that 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. ‘After the expansion, the plant is equipped for producing 3000 units per day. The plant manufactures all six models i.e. CD 70, CD Dream 70cc, Pridor 100cc, CG 125, CG Dream 125cc and CG 125 Deluxe,’ he added.
AHL, he added, is a joint venture between Atlas Group and Honda Motor Co. Ltd., Japan. ‘Established in 1963, AHL is engaged in progressive manufacturing and marketing of Honda motorcycle and parts in Pakistan. The company has an annual capacity of 900,000 units at two plants, located at Sheikhupura and Karachi,’ said the PRO.
AHL’s portfolio includes Honda CD-70, CD-Dream 70cc, Pridor 100cc, CG-125, CG-Dream 125cc, CG-125 Dlx, and newly launched imported CBR series in 150cc and 500cc. ‘Over the years, the Company has enjoyed phenomenal success. With products of highest quality, state of the art manufacturing facilities, largest dealership network and impeccable after sale service, the company today is considered the flag bearer of the motorcycle industry in Pakistan and is steadily moving ahead,’ he added. Today, he added, the company is widely recognized as the impetus behind the larger and growing two-wheeler industry of Pakistan as it brought about technology transfers and laid the ground for a huge and technically capable vendor base to train human resource in the area.