Honda, the "Indonesian plan" to beat the competition

A new production line will create 500.000 more motorcycles

Honda, the "Indonesian plan" to beat the competitionHonda, the "Indonesian plan" to beat the competition

Honda – It's all too easy to question the recent surge in sportbikes 250 cc when looking at the new models from a purely European perspective. Now Honda's latest expansion plan expands this type of market to a size of world level.

The Japanese company has announced, in fact, that they will be produced 500.000 more motorbikes per year at its factory in Karawang, IN Indonesia, thanks to the addition of an additional production line, which will be exclusively dedicated to sports motorcycles, in particular at 250 cc. Why Indonesia? We are talking about one of the largest motorcycle markets in the world, which charges a tax of 60% on motorcycles over 250 cc, which goes up to 75% above 500 cc, as well as an import tax always equal to 60%. So a 600 cc motorcycle from 5.000 dollars imported from abroad would cost the equivalent of 14.000 dollars and this is how one can easily understand that every motorbike sold in Indonesia, around 8 million every year, within 250 cc would be better built locally. If we then add that the new production line of half a million motorbikes per year in Karawang will join the current production capacity of 1,1 million units the circle closes perfectly. Honda is, in fact, the fourth Indonesian factory with a total of 5,3 million motorcycles produced annually in Indonesia thanks also to its joint venture with the Astra Honda Motor.

Why should we worry? Because 25 years ago everyonefour "big" Japanese producers they were engaged in one fierce battle for supremacy in the 250 cc market and this is because the Japanese market is much smaller compared to the Indonesian one. Now Indonesia's growing prosperity means there are pilots eager for more performance and better technology, but now they can afford to pay. So it seems that the time is also ripe for a new generation of high-tech 250 motorcycle and Kawasaki has already said it is working on a 250 cc four-cylinder sports motorcycle, to add to its existing offer of single-cylinder and twin-cylinder engines. And it is normal to believe that the “Indonesian plan” of Honda can take it in the same direction as its rival.

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