Honda Motorcycle Production to Expand for 4th Time in Indonesia

Honda Motorcycle Production in Indonesia

With the just-announced expansion, PT Astra Honda Motor (AHJ), Honda’s motorcycle production and sales joint venture company in Indonesia, will increase its production capacity in Indonesia by half a million units per year.

That will boost overall annual production capacity at its four plants 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.

The expansion will take the form of a new production line at the plan in Karawang (4th plant) that will be primarily dedicated to production of sport bikes that will address high demand in Indonesia.

The new 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 or $145,340,00 USD) to build this new production line and newly hire approximately 1,500 associates to begin production before the end of 2015.

Along with this capacity expansion, AHJ will enhance production efficiency and build quality through the introduction of the latest production technologies. 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.

PT Astra Honda Motor was established in December 2000 and began manufacturing operations in January 2001 in Jakarta, Indonesia. As of October of this year, it employed about 22,000 associates producting the Revo, Blade, SupraX, SupraX Helm-in, Verza, Mega Pro, CB150R, CBR150R, BeAT, Spacy, Scoopy, Vario110, VarioTechno 125 models.