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September 22, 2011

Honda to Build New Motorcycle Production Plant in Malaysia

-- Renewing production capability with the transfer of existing production --

PENANG, Malaysia, September 22, 2011 - Boon Siew Honda Sdn. Bhd.(BSH), a motorcycle production and sales joint venture between Oriental Holdings Berhad and Honda Motor Co., Ltd. in Malaysia, announced plans to build a new high-quality and high-efficiency motorcycle production plant that will result in the transfer of production from the existing plant in order to continue fulfilling growing demand in the motorcycle market in Malaysia.

Honda to Build New Motorcycle Production Plant in Malaysia

With a goal to achieve higher customer satisfaction and management efficiency, BSH was established in 2008 to consolidate Honda’s motorcycle production and sales operations in Malaysia, which were previously operated as two separate companies. BSH has consolidated its business and maintained industry-leading unit sales volume in 2010.

BSH is planning to build a new plant within the state of Penang, approximately 20km south of the existing plant, and expects a total investment of approximately 188 million Malaysian ringgit (approximately 5 billion yen*1). The new plant is scheduled to become operational in the first half of 2013 with an annual production capacity of 350,000 units.

The motorcycle market in Malaysia experienced a brief decline due to the impact of the global economic recession in 2009. However, the market quickly recovered, and industry-wide sales in 2010 reached 487,000 units, a 8.2% increase compared to 2009. Continuous growth is expected for the motorcycle market in Malaysia where there is steady demand for motorcycles as a mode of transport in people’s daily life.  In this context, BSH made the decision to build a new plant and transfer the existing production in order to further strengthen its ability to provide high-quality products to its customers in a timely manner.

Since the start of local production in 1969, cumulative production of Honda brand motorcycles in Malaysia has reached 4.23 million units, and Honda’s market share was 45% in 2010. Honda will continue enhancing its product lineup to meet the diversifying customer needs in Malaysia. 

Honda will continue to provide good products with speed, affordability and low CO₂ emissions to maximize the joy of customers.

Calculated based on the exchange rate of 1 Malaysian ringgit = 26.8 yen

<About the new plant.>

Location Penang, Malaysia
Start of production First half of 2013
Production capacity 350,000 units/year
Employment Approximately 1,100 associates
Total floor space 39,000 m2
Lot size 233,000 m2
Major production models
  • Dream100(EX5)
  • Wave100/110/125
  • Icon
  • models with medium-size engines and high value added models

<About Boon Siew Honda Sdn. Bhd.>

Establishment: September 2008
Location: Penang, Malaysia
Capital Investment:

2.5 million Malaysian ringgit
Capitalization ratio:

50% Honda Motor Co., Ltd.
50% Oriental Holdings Bhd.
Representative: Satoshi Okada, President
Business: Motorcycle production, sales and service
Start of production: September 2008
(In 1969, Honda and Boon Siew Sdn. Bhd. (BSW) formed a technical collaboration and Kah Motor Sdn. Bhd.  Began final assembly of motorcycles in Malaysia contracted by BSW.)
Production Capacity: 250,000 units/ year (2-shifts)
Motorcycle dealer: 584 dealership locations (as of the end of August 2011)

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