Wednesday, March 14

FOURTH HONDA FACTORY IN INDONESIA

If anyone in the motorcycle industry was in any doubt where the growth in motorcycle sales is, the following announcement should leave them in no doubt. It is the Asian market that is still growing while the 'developed' countries launguish as Baby Boomers age and fewer are able to ride.

On March 13 Honda announced its joint venture company in Indonesia would be building a fourth motorcycle plant, with a production capacity of 1,100,000 scooter units per annum.

The JV is Astra Honda Motor, and with the new plant, Honda production in Indonesia will grow to 5.3 million units a year.

It should be noted that total (all four brands) motorcycle production in Japan is barely 600,000 units a year these days.

The new Astra Honda Motor plant, at Bukit Indah Industrial Park about 70 kilometres east of central of Jakarta, is planned to start production in the autumn of 2013.

The motorcycle market of Indonesia is the world's third largest next to China and India, and expanding demand is expected on the back of the steady economic progress in recent years.

The total market of motorcycle in 2011 reached 8.01 million units, an increase of 109 per cent compared with 2010.

The total Indonesian market is expected to grow to 8.7 million units in 2012 and AHJ is planning to sell around 4.8 million units, up from 4.27 million units in 2011.