Honda Motor Co., Ltd. announced that, effective March 25, 2013, it has officially established a new motorcycle production and sales subsidiary in Kenya, where further market growth is expected.
Based on Honda's basic approach with local operations to "start small and grow big" the new company, Honda Motorcycle Kenya Limited, will focus primarily on production and wholesale business. The company will establish a system and capability for global parts sourcing as well as efficient production to deliver high quality products at affordable prices. The new plant, which will have an initial production capacity of 25,000 units, is scheduled to become operational in September 2013.
The new company in Kenya is the third Honda subsidiary in Africa, following South Africa and Nigeria, and the new plant will become the second Honda plant in Africa, after only the plant in Nigeria. Combining the two plants together, Honda's annual motorcycle production capacity in Africa will be 175,000 units.