Kawasaki Heavy Industries opens Vietnam unit to boost large motorcycle sales
HO CHI MINH CITY, NNA - Japan’s Kawasaki Heavy Industries Ltd. has established a wholly owned subsidiary in Vietnam to import and sell its motorcycles, cashing in on growing demand for medium-sized and large motorcycles in Southeast Asia’s second-largest two-wheeler market.
The subsidiary, Kawasaki Motors Vietnam Co. (KMV), which was founded on Jan. 18 this year at a capital of $1.5 million with a staff of seven, started sales on Thursday last week, Kawasaki Heavy said in a statement.
KMV has taken over Kawasaki motorcycle sales in Vietnam from TC Motorcycles (Vietnam) Co., an affiliate to Malaysia’s Tan Chong Motor Holdings Bhd., the statement said. TC Motorcycles had sold the products under a cooperative agreement with Kawasaki Heavy since 2014.
As Vietnam’s economy continues to grow and push up personal income, the market for medium-sized and large motorcycles (250 cc and higher) in the Southeast Asian country is expected to expand to roughly 6,600 units in 2019 from about 4,400 units last year, the statement said. Kawasaki Heavy, which has been supplying supersport, sport and naked motorcycles ranging from 175 cc to 1,000 cc to Vietnam, aims to sell about 2,500 units there in this fiscal year ending March 2020.
The Vietnam Association of Motorcycle Manufacturers (VAMN) forecasts sales of motorcycles in Vietnam to reach about 3.6 million units this year from about 3.3 million units sold in 2018, making the country the fourth-largest motorcycle market in Asia, after China, India and Indonesia, the statement said.