PT Astra Honda Motor (AHJ), Honda's joint venture company in Indonesia responsible for motorcycle production and sales, held a ceremony commemorating the cumulative production of 20 million motorcycles.
Honda began motorcycle production in Indonesia in 1971 through a technical collaboration agreement. In December 2000, AHJ was established integrating the functions of parts manufacturing, engine and body assembly and wholesales activities.
In 2005, AHJ began production at its third plant. The company now has an annual motorcycle production capacity of 3 million units, the second largest among all Honda subsidiaries and affiliates worldwide.
The total motorcycle market in Indonesia, which is the third largest in the world after China and India, is expected to grow to 5 million units in 2007, an 8% increase from 2006. Last year, Honda launched a new automatic transmission model, Vario, and strengthened product attractiveness by renovating its major model line-up.
Honda has proactively adopted environmental technology to achieve better fuel efficiency and cleaner exhaust emissions. At the end of 2005, AHJ became the first company in Indonesia to begin the production and sales of models with programmed fuel injection (Honda PGM-FI) which also provides excellent start-up.
Honda is committed to meeting the needs of this growing market by providing products and technologies which exceed the expectations of customers.