The company was created in 1988 after Panjdarya and Atlas Autos merged. AHL manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso.
Atlas Honda has Pakistan's largest in-house manufacturing capability at its Karachi and Sheikhupura plants, which include an R&D wing and tool making facilities through CAD/CAM. The annual assembly production capacity of AHL is 1.35 million units, with 150,000 units from the Karachi plant and 1.2 million units from the Sheikhupura plant.
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