TOKYO, March 13 (Kyodo) — Honda Motor Co. said Tuesday it plans to open a new motorcycle plant in Indonesia in autumn next year with an annual output capacity of 1.1 million units to meet growing local demand.
The new facility will be built at a cost of some 27.5 billion yen at an industrial park some 70 kilometers east of Jakarta.
Honda already has three motorcycle plants in the country with a combined production capacity of 4.2 million units a year. The company decided to add another plant because the existing facilities are running at capacity.
Indonesia is the world's third-largest motorcycle market after China and India, with sales reaching a record high of around 8.01 million units in 2011, according to Honda.