Honda Increases Motorcycle Production in Indonesia
Filed Under : Automotive News by Compare Auto Insurance
Sep.16,2010Astra Honda Motor, AHJ, has recently diversified their selection of automatic transmission model mopeds (scooters) by delivering three brand new models way back in August of 2009.

The Scoopy Scooter was announced in May of 2010. The PCS scooter will be available in global markets and was announced in June of 2010. The third and final new scooter is the Revo AT Cub-Type automatic transmission scooter which comes with the CV-Matic transmission from Honda which is their newest development. Their forecast says they will sell about 3.2 million units of product in 2010 which is an increase of twenty percent over 2009 sales.
PT Astra Honda Motor AHJ is Honda’s conjunct venture company in Indonesia that produces and sells motorcycles. They have decided to expand their annual motorcycle production capacity to 3.5 million units before 2010 concludes, and will then create a brand new plant with a periodic production limit of half a million units to enlarge their capacity to 4 million units before the conclusion of the year 2011. Since the demand for motorcycles has risen in Indonesia, AHJ has just enlarged theirannual production volume from 3 million motorcycles in 2009 to 3.3 million units through the end of May 2010. This achivement was accomplished with the addition of a new product line put in to an already existing production plant. AHJ will increase their production volume to 3.5 million units by the end of this year, 2010. A new plant is going to be built where the 3rd plant already exists but it will take until the second half of 2011 to become fully operational. The cost of this big business in Indonesia comes out to about 760 billion Rupiah, which is actually only about 84 million US dollars. To run the new addition to the factory, they will hire an additional 1,000 workers.
China and India lead the world in motor cycle demand since they are the biggest consumers of two wheel motor bikes. Indonesia currently sits in third place, which makes it the ideal location for Honda’s two wheel vehicle manufacturing facilities. The Indonesia market was responsible for about 5.8 million new motorcycle and scooter sales in 2009. By the end of 2010, experts forecast sales of almost 6.8 million for Honda. In order to meet the varying demands of consumers that are in different income brackets, Honda has diversified their product line in an effort to meet the needs of more people. Honda plans on expanding their production ability in Indonesia, India, and Vietnam by 2011 to keep up with the high demand.
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