| JAKARTA, Sept 17
JAKARTA, Sept 17 Honda Motor Co aims to
expand its share of Indonesia's big motorcycle market to 60
percent from 46 percent before the decade is up by increasing
its edge over arch-rival Yamaha Motor , the
chief of its Indonesian venture said.
Honda, the world's top motorcycle maker, increased its
annual output capacity in Indonesia to 4.3 million vehicles in
July from 3.5 million at the end of last year, scrambling to
keep pace with surging demand.
Indonesia is the world's third-biggest two-wheeler market,
having grown by about 40 percent in the past five years to 7.355
million in 2010 on the back of steady economic expansion and
rising income in a country with virtually no public transport
Of that, Honda shipped 3.416 million, giving it a market
share just 1.2 percent more than Yamaha.
"We expect demand to continue growing, and reach 10 million
within the decade," Yusuke Hori, president director of PT Astra
Honda Motor, told a small group of reporters at its newest
factory near Jakarta on Saturday.
"By then, we want to own 60 percent of the market."
That kind of growth would require more production facilities
less than two years down the line, Hori said, but he declined to
With full overtime usage, Honda would be able to build at
least 5 million motorcycles a year with what it has now, he
For 2011, Honda is aiming for a 53 percent share of the
market with sales of 4.3 million motorcycles out of an expected
8.10 million market, Hori said.
Honda had lagged Yamaha in launching automatic transmission
models in Indonesia as that market grew from just 4 percent in
2005 to 45 percent last year, forcing it to cede its top spot
for several months at the start of 2010.
That sent its Japanese headquarters into crisis mode,
culminating in the appointment in April 2010 of Hori to head
Astra Honda, the 50-50 joint venture with local conglomerate
Astra International .
"The first thing I did was visit 90 dealers in 12 major
cities over three months," Hori said.
"The decision to add more capacity came quickly, after one
month of being here, because I knew that was the main reason we
had fallen behind."
Hori said Honda had also been able to offer more attractive
products in the past two years thanks to a strategy of procuring
components from the cheapest country in its global network.
Through what it calls "global procurement", Honda has been
able to cut costs by 9-14 percent on several new models,
importing some parts from suppliers in China and India, Hori
"That's allowed us to add more features to our products at
the same prices," Hori said.