Jakarta, Indonesia: PT Astra Honda Motor (AHJ), Honda's motorcycle production and sales joint venture company in Indonesia, is planning to expand the production capacity of its motorcycle production plant in Karawang (4th plant) by adding a production line with annual production of 500,000 units.
The company plans to invest IDR 1,900 billion (US$152 million) to build this sports bike production line and production is expected to begin before the end of 2015. With the addition of the new production line with production capacity of 500,000 units, the total production capacity of the Karawang Plant will be increased from the current 1.1 million units 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.
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 eight million units, and the company's sales are expected to exceed five million units, breaking the all-time annual sales record.