Yamaha Motor to spend 3.1 billion yen to double Philippines output
MANILA, NNA - Japanese motorcycle manufacturer Yamaha Motor Co. will invest 3.1 billion yen ($28.3 million) to double its annual output capacity in the Philippines as part of its strategy to meet growing demand in Southeast Asia.
Yamaha said in a statement Friday that it will build a factory in the Lima Technology Center in Lipa City in Batangas province south of Manila, where the company already has a plant. The new facility will become operational in July 2020. The expansion will double the company’s production capacity to 800,000 units a year.
The new assembly line will mainly turn out the ‘Mio’ automatic-transmission 125-cc engine scooter, for which local demand is rapidly growing.
Yamaha also plans to increase the number of its factory workers in the Philippines to 2,000 by 2021 from the current 1,400.
To improve cost competitiveness, Yamaha is seeking to raise the portion of local procurement of parts and components to 30 percent of total production in the Philippines in 2021, from just 6 percent now, a spokesman told NNA.
The company aims to boost annual sales in Philippines to one million motorcycles with a market share of 40 percent by 2023, up from 540,000 last year (including 100,000 imported from Indonesia), representing a 24 percent share, he said.