Yamaha to Raise Motorcycle Output by 50 per cent in Vietnam
Japan’s Yamaha Motor Co. Ltd will start operations at a second motorcycle factory in Vietnam in October 2008, boosting its output by 50 per cent in a country that has become the fourth-biggest motorcycle market in the world.
Yamaha, the world's second-largest motorcycle maker after Honda, said it would invest US$46 million to build the new plant, which will boost its annual production capacity in Vietnam to 700,000 units.
The new factory will locate in Noi Bai Industrial Park in Hanoi and would assemble motorcycles, mainly 115-cc vehicles. Its existing plant in Vietnam will focus on making parts. All output would be for sales in Vietnam.
Earlier this month, Honda said it would spend about US$65 million to start operations at a second motorcycle factory in Vietnam during the second half of 2008, lifting its annual output by 50 per cent to 1.5 million units.
Demand for motorcycles has been increasing rapidly in Vietnam in step with its fast-growing economy. The market grew 31 per cent in 2006 to 2.3 million motorcycles in 2006, according to a recent estimate by Honda.
Yamaha said its motorcycle sales in Vietnam grew 46 per cent in 2006 to 350,000 units, and it sees a 24 per cent rise this year to 430,000 units.
Yamaha is now keeping around 30 per cent of motorbike market share in Vietnam, after Honda Vietnam with 60 per cent. (VNA)
Vietnamese
