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Yamaha to invest $15 million in motorcycle industry - Lahore_Real_Estate - 03-27-2010 11:51 AM
Staff Report
ISLAMABAD: Yamaha Japan has proposed to invest $15 million for the manufacture and sale of motorcycles of advanced functions, high quality and sophisticated designs in the 125cc and 150cc categories in Pakistan.
This was discussed during a meeting, in which Yamaha Japan’s General Manager Ito Yasushi and Director Nick Ohmura called on Board of Investment Chairman Saleem H Mandviwalla in the office on Friday.
They discussed the investment opportunities in Pakistan in the motorcycle industry.
The 125-150cc motorcycle categories are currently being imported from Europe and Latin American. Yasushi gave a detailed presentation on behalf of Yamaha elaborating on their plans to construct a state-of-art manufacturing and employee training facilities. They have already developed such services in Indonesia, and expressed his desire to introduce the same in Pakistan.
Commencing in 2010 they would produce 22,000 motorcycles in the first year with a workforce of 450 employees and would gradually increase their production to over 750,000 motorcycles in 2020 and employ a total of 8,100 employees in Pakistan. They have divided their project into three phases. The first phase includes the injection of 4.3 billion yen, which would include training of personnel and production. The second phase would include an injection of 7.4 billion yen and the third phase would include an injection of 3.3 billion yen, which would include 90 percent localisation of their manufacturing. Yasushi further stressed that Yamaha Pakistan would be a hub factory for export and Yamaha would commit to export motorcycles from Pakistan.
However, they pointed out to the BoI chairman that the new Pakistan’s automotive policy being developed does not include motorcycles, which around the world is defined as an automotive. They requested that the policy be amended to include motorcycles so that they could avail the terms and conditions of the policy in the proposal including the five-year import duties exemption for CKD parts.
BoI chairman welcomed the Japanese delegation and appreciated the Japanese companies and businessmen in Pakistan. He highlighted the policy parameters of investment in Pakistan. While stressing he underlined the policy, which allowed 100 percent foreign equity in the major sectors and full repatriation of profits and dividends in all the sectors.