Yamaha Motor Co., Ltd. plans to increase the production capacity of motorcycles at Yamaha Motor Philippines, Inc. (YMPH). Under this plan, a new plant will be built on the same site as the current plant at the Lima Technology Center in Batangas, with the annual production capacity to be raised from the current 400,000 to 800,000 units. The Batangas plant currently produces the Mio scooter. In addition, as a medium-to-long term goal, the company aims to sell 1 million units in the Philippines (including imported completed units).
Yamaha Motor first entered the Philippines in 1962, starting with motorcycle sales. In 2007, the company established the wholly owned subsidiary YMPH, and started manufacturing motorcycles, building a system that can respond quickly to market changes. Sales volumes have grown to approx. 540,000 in 2018, compared to about 70,000 in 2008.
Construction has already begun on the new plant and it is scheduled to start operation in July 2020.
Total motorcycle demand in the Philippines in 2018 was approximately 2.26 million units annually (according to Yamaha's own survey), an increase of 14% over the previous year, and demand is expected to continue to grow further in the future.
The expansion of motorcycle production capacity in the Philippines is part of Yamaha's new medium term management plan of positioning the ASEAN market as one of its key markets to strengthen its earnings base.