Honda: New Malaysia Motorcycle Facility


Motorcycle Industry News

As the Malaysian motorcycle market continues to grow, bringing in more demand for Honda motorcycles, the Japanese marquee plans to build a new, high-quality and high-efficiency motorcycle production plant in the country.

This was announced Monday by Boon Siew Honda Sdn. Bhd.(BSH), a motorcycle production and sales joint venture between Oriental Holdings Berhad and Honda Motor Co., Ltd. in Malaysia.

Boon Siew Honda (BSH) plans to transfer production from the current motorcycle plant to the new one, which is scheduled to become operational in the first half of 2013 with an annual production capacity of 350,000 units.

BSH is planning to build a new plant within the state of Penang, approximately 20km south of the existing plant, and expects a total investment of approximately 188 million Malaysian ringgit (approximately 5 billion yen*1).

BSH says “the motorcycle market in Malaysia experienced a brief decline due to the impact of the global economic recession in 2009. However, the market quickly recovered, and industry-wide sales in 2010 reached 487,000 units, a 8.2-percent increase compared to 2009. Continuous growth is expected for the motorcycle market in Malaysia where there is steady demand for motorcycles as a mode of transport in people’s daily life.

“In this context, BSH made the decision to build a new plant and transfer the existing production in order to further strengthen its ability to provide high-quality products to its customers in a timely manner.

“Since the start of local production in 1969, cumulative production of Honda brand motorcycles in Malaysia has reached 4.23 million units, and Honda’s market share was 45% in 2010. Honda will continue enhancing its product lineup to meet the diversifying customer needs in Malaysia.”

New Malaysia Honda Motorcycle Plant: Quick Facts

  • Location: Penang, Malaysia
  • Start of production: First half of 2013
  • Production capacity: 350,000 units/year
  • Employment : Approximately 1,100 associates
  • Total floor space: 39,000 m2
  • Lot size: 233,000 m2
  • Major production models: Dream100(EX5); Wave100/110/125; Icon; models with medium-size engines and high value added models

Boon Siew Honda Quick Facts:

  • Establishment: September 2008
  • Location: Penang, Malaysia
  • Capital Investment: 2.5 million Malaysian ringgit
  • Capitalization ratio: 50% Honda Motor Co., Ltd.; 50% Oriental Holdings Bhd.
  • Representative: Satoshi Okada, President
  • Business: Motorcycle production, sales and service
  • Start of production: September 2008; (In 1969, Honda and Boon Siew Sdn. Bhd. (BSW) formed a technical collaboration and Kah Motor Sdn. Bhd. Began final assembly of motorcycles in Malaysia contracted by BSW.)
  • Production Capacity: 250,000 units/ year (2-shifts)
  • Motorcycle dealer: 584 dealership locations (as of the end of August 2011)