Motorcycle production in Indonesia is expected to reach 5.8 million units next year, an increase of 16% compared to this year's expected total of 5 million units, because of increased production by Honda, Suzuki and Yamaha.
“At the very least, production of motorcycles in 2006 will total 5.5 million,” Budhi Darmadi, Director General for Transportation and Telecommunication Industries at the Department of Industry, told Tempo Interactive, an Indonesian news agency.
P.T. Astra Honda Motor Inc., Honda's joint venture motorcycle company in Indonesia, is constructing a new plant with a capacity of one million units annually, making the company Honda's largest motorcycle production subsidiary in the world with the annual capacity of three million units; Suzuki's subsidiary in Indonesia, PT. Indomobil Suzuki International, plans further investments; and Yamaha said it intends tto establish a $70 million new factory capable of producing 600,000 units annually by 2007.
Also adding to Indonesia's production total are companies from India, including Bajaj Auto Ltd., India's second-biggest maker of scooters and motorcycles, and TVS Motor Ltd., India's third-biggest motorcycle maker. TVS plans to invest $50 million into its facility.
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