Honda to start new plant for motorcycles in Peru next year

dpa German Press Agency
Published: Wednesday November 29, 2006

Tokyo- Honda Motor Co announced its plan to start motorcycle production in Peru next year to meet growing demands, the company announced Wednesday. Honda's sales unit in Peru has established a subsidiary Honda Selva del Peru SA, and with a capital investment of 2 million US dollars is expected to begin construction of a new factory in Iquitos, Loreto, in December for the motorcycle production, Honda said.

The plant is expected to operate with an annual production capacity of 25,000 units and to eventually increase the capacity to 100,000 units.

Honda's motorcycle sales in Peru soared 35 per cent to 12,000 units in 2005 from a year before and are expected to reach 20,000 units in 2006.

Peru's motorcycle market has been rapidly growing since 2004, the Japan's top motorcycle maker said.

Overall sales of motorcycles in the South American nation rose 29 per cent to 63,000 units in 2005 from 2004 and are expected to increase to 90,000 units in 2006, Honda said.

© 2006 dpa German Press Agency