Usman, the worthy forum members are suggesting various solutions in good faith, perhaps assuming that this problem is specific to your car. Let me tell you what happened to me.
I live in Islamabad. I bought a new honda city in May 2011. From the very first day, I realized the powerlessness of gear 2 but taking it lightly I did not panick. Last week, I went to Murree along with my family and driving my new honda city there was a nightmare. Gear 2 was absolutely powerless, and I had to use Gear 1 all the way up. Even the Gear 1 became powerless when it came to climbing a steep road to the rest house where we had booked room. The car refused to go up and we were there in the middle of road all confused and embarrassed. I called Honda Classic in I-10 but it was wastage of time talking to them on phone. I had to park my car on roadside there, and during the rest of our 3 days stay we had to use taxi. All this spoiled our vacations, thanks to Honda City.
On Friday, 17 June (yesterday) I visited honda classic and explained to them everything, but again they were not able to offer any help or suggestion except cleaning the plugs. I told their engineer Rizwan and Khurram that I am ready to return my car to honda atlas even if it causes a loss of one or two hundred thousands. I then called honda atlas, lahore and a lady named Bushra assured me that honda engineer will soon contact me, but so far I have not received any call from them.
Today, I had to use my 2006 Cultus to go to Pir Sohawa, because my new honda city which has done just 1500 KMs cannot go to Daman-e-Koh, I bet, what to talk about Pir Sohawa. I offer my car to Honda engineers as a gift with extra cash prizes if they drive my honda city up to Daman-e-Koh in whatever gears they like. I bet one million against one rupee that the car cannot go to Daman-e-Koh.
Now coming back to the problem; the only reason for this problem is some sort of a major manufacturing fault, and absolutely nothing else. Honda Atlas is turning a deaf ear to consumers complaints considering it a problem with a few indidual units, but they are wrong. Honda Atlas is soon going to pay a big price for this. I am telling you that it is a matter of just a few more months, and nobody in Pakistan will be willing to buy Honda City. If the Honda Atlas does not fix problem in my car till end of next week or give me a new replacement that does not have this problem, I am going to go to a court of law to sue Honda for giving me a defective car while I paid full price of a new car in running condition. Let us join hands and do whatever is needed to force Honda Atlas to turn a heed to our problem. Even if the courts do not redress our problem for one reason or the other, we should spread a word through internet and media, so that we at least save those who plan to book Honda City in near future.