Yamaha Motor Philippines, Inc. has launched a PHP 2.7 billion (USD 75 million) expansion of its motorcycle factory in Lima Technology Center in Batangas, and has plans to hire an additional 1,300 workers for the plant. The move is in response to an increase in demand for its automatic models as fewer people are using public transportation during the COVID-19 pandemic.
The newly built facility covers 20,000 square meters with an additional capacity of 300,000 units annually, up from its previous capacity of 150,000 units annually. The expansion was made to accommodate Yamaha’s 155 cc models. Furthermore, the expansion is also capable of accommodating a few more assembly lines should Yamaha decide to assemble more models.
However, according to the Motorcycle Development Program Participants Association (MDPPA), despite busy motorcycle-based delivery services during the lockdown, product sales fell 33.3% to 941,260 units in the first 10 months of 2020 compared to the same period in 2019. The organization represents motorcycle brands in the Philippines: Honda, Kawasaki, Suzuki, and Yamaha.
This suggests that even as the motorcycle industry suffered under the current business climate, Yamaha is coping well, prompting the company to expand its production capacity in the Philippines.
(Sources: BusinessWorld; Manila Bulletin; MotoPinas.com)