News Releases 2015

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November 2, 2015

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 then 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 USD 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, the market began to show rapid growth from the beginning of this year. AHL will be well prepared to accommodate the Pakistani motorcycle market, where further expansion is expected in the coming years.

<About Atlas Honda Ltd.>

Established: 1992
Capital Investment: 1,034,066,130 Pakistan rupee
Capitalization Ratio: 35% Honda Motor Co., Ltd.
55% Atlas Group
10% Public
Location: Head office: Karachi
Plants: Karachi and Sheikhupura
Representative: Saquib H. Shirazi, C.E.O
Business: Production and sales of motorcycles
Employment: Approximately 3,900 associates (as of October 2015)
Production capacity: Karachi Plant: 150,000 units / year
Sheikhupura Plant: 600,000 units / year
Production model(s): Karachi Plant: CD70
Sheikhupura Plant: CD70, CD Dream, Pridor, CG125, CG Dream and Deluxe