Honda to Expand Motorcycle Production Capacity in Indonesia
December 12 2014 - 2:38AM
JCN Newswire (English)
PT Astra Honda Motor (AHJ), Honda's motorcycle production and
sales joint venture company in Indonesia, today announced plans to
expand the production capacity of its motorcycle production plant
in Karawang (4th plant) by adding a new production line with annual
production of 500,000 units. The new production line will be
dedicated to the production of sports bikes so that AHJ can realize
stable supply to accommodate rapidly growing demand for sports
bikes, which are considered to be high-value-added products in
Indonesia.
Demand for sports bikes is growing rapidly as consumers diversify
their orientation and value system in Indonesia where stable
economic growth is continuing. With the addition of the new
production line, AHJ will provide good products with speed,
affordability and low CO2 emissions and fulfill the demand in the
sports bike market where further growth is expected. In this way,
Honda will strengthen and establish its presence in the motorcycle
market in Indonesia.
The new sports bike production line will be built within the
property of AHJ's existing Karawang Plant in the Bukit Indah
Industrial Park, which is located approximately 70 kilometers east
of the central part of Jakarta. AHJ plans to invest 1,900 billion
Indonesian rupiah (approximately 16.9 billion yen)* to build this
new production line and newly hire approximately 1,500 associates
to begin production before the end of 2015. With the addition of
the new production line with production capacity of 500,000 units,
the total production capacity of the Karawang Plant will be
increased from the current 1.1 million units to 1.6 million units.
The combined annual motorcycle production capacity of AHJ's four
existing plants will increase from 5.3 million units to 5.8 million
units before the end of 2015.
Along with this capacity expansion, AHJ will enhance production
efficiency and quality through the introduction of the latest
production technologies and strive to make this new production line
a benchmark for future light sports bike production. In the area of
the environment, the new production line will be designed to reduce
CO2 emissions and conserve energy through use of natural energy,
making it an environmentally-responsible and low carbon production
line which is also friendly to associates and the local
community.
Indonesia has been the world's third largest motorcycle market
behind India and China, and a further increase in demand is
expected. For 2014, industry-wide motorcycle sales in Indonesia are
expected to be approximately 8 million units, and AHJ's sales are
expected to exceed 5 million units, breaking the all-time annual
sales record. Honda will strive to continue fulfilling the
expectations of its customers by providing products that
accommodate diversifying customer needs.
*Calculated at the exchange rate of 1 rupiah = 0.0089 yen
About Honda
Honda Motor Co., Ltd. (TSE:7267/NYSE:HMC) is one of the leading
manufacturers of automobiles and power products and the largest
manufacture of motorcycles in the world. Honda has always sought to
provide genuine satisfaction to people worldwide. The result is
more than 120 manufacturing facilities in 30 countries worldwide,
producing a wide range of products, including motorcycles, ATVs,
generators, marine engines, lawn and garden equipment and
automobiles that bring the company into contact with over 19
million customers annually. For more information, please visit
http://world.honda.com.
Source: Honda
Contact:
Honda
Media Inquiries
corporate_pr@hm.honda.co.jp
+81-3-5412-1512
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