LAHORE: In the wake of rising consumer demand, Atlas Honda Limited is planning to expand its product portfolio at an investment of $150 million.
The phase-wise investment will span five years.
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The company, currently offering six locally-manufactured two-wheeler products of up to 125cc category and two imported motorcycles for the niche market, is planning to introduce more models with greater engine capacity.
To achieve the goal, the company has finished the first phase of its expansion project at the Sheikhupura plant, which will see its capacity increase from 750,000 units to 1.2 million units per annum.
The company said that it is witnessing an average demand boost of around 30% for the past few years. Atlas Honda, which rolled-out its first bike in 1964 from its Karachi plant, sold 190,424 units in 2003-04 and managed sales of 440,054 units in 2009-10.
Atlas Honda is a joint venture between Atlas Group and Honda Motor Company Limited Japan.
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Currently, 142 vendors are associated with the company that help it towards localisation percentage of up to 94% for its CD-70 model and 90% in the 125cc category.
The annual demand for two-wheelers is 1.7 million units per year, which is expected to keep rising.
Atlas Hondaâ€™s sales rose to Rs 55 billion in financial year ended March 2016, an increase of 20% from the corresponding period. Its profit after tax stood at Rs 3 billion, a growth of 28% from the corresponding year.