Atlas Honda is considering launching 250cc and 500cc motorcycles in Pakistan as demand for premium bikes continues to gain momentum, marking a potential entry into a segment it has largely stayed away from.

The company shared the plans during its MY26 corporate briefing with Topline Securities, where management said growing consumer interest in higher-displacement motorcycles, partly driven by stronger overseas remittances, has prompted it to evaluate expanding its portfolio beyond its conventional models.

Atlas Honda also unveiled plans to increase its manufacturing capacity. Its annual production capacity of 1.65 million motorcycles will be expanded to 2 million units by December 2026 under a project expected to cost between Rs5 billion and Rs6 billion.

Until the expansion is completed, the company said it is meeting robust demand by operating above its rated capacity through overtime production and support from its network of vendors.

According to management, Pakistan’s overall motorcycle market has recovered to around 2.3 million units annually. At the same time, sales of Chinese motorcycle brands have fallen sharply from previous highs, while motorcycles with engine sizes above 100cc are steadily capturing a larger share of the market as consumer preferences shift toward more powerful models.

On the electric vehicle front, Atlas Honda said it has no immediate plans for additional investment, maintaining that its existing production facilities are sufficient to meet anticipated EV demand.

The company also highlighted that it has not raised motorcycle prices over the past three years except for increases stemming from government taxes and duties. It added that improving farm incomes are expected to further support motorcycle demand in the coming months.