Honda Consolidates Motorcycle Business Structure in Malaysia
|Penang, Malaysia, July 31, 2008– Honda Motor Co., Ltd. announced it has signed a joint venture agreement with Oriental Holdings Bhd. (OH) in Malaysia to establish a 50/50 joint venture company, Boon Siew Honda Sdn. Bhd., in September 2008, to consolidate motorcycle production and sales in Malaysia and achieve higher customer satisfaction and efficiency.
Currently, Boon Siew Sdn. Bhd. (BSW) is responsible for wholesaling Honda motorcycle products in Malaysia and contracts the final assembly of Honda motorcycles to Kah Assemblers Sdn. Bhd., a wholly-owned subsidiary of OH.
With the new agreement, Honda will obtain 50% of the outstanding shares of Kah Assemblers Sdn. Bhd. from OH, and establish a 50/50 joint venture with OH. In January 2009, wholesale operations are scheduled to be transferred from BSW to consolidate production and sales operations with the new company. While envisioning collaboration with other Honda companies in the ASEAN region, the new company will strengthen its competitiveness and strive to provide products and services which exceed customer expectations.
The overall size of the motorcycle market in Malaysia was approximately 468,000 units in 2007 (up 6% from 2006) and is expected to reach approximately 520,000 units in 2008 (up 11% from 2007). As steady growth is expected to continue, Honda will establish a new business structure which enables Honda to quickly respond to the diverse needs of customers and further grow its motorcycle business in Malaysia.
<About Boon Siew Honda Sdn. Bhd.>
<History of Honda motorcycle business in Malaysia>
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