Investment: Yamaha resumes assembly in Pakistan

Published: April 28, 2015
SHARES
Email
Finance minister Ishaq Dar hoped that Yamaha will get a good response in Pakistan because of the growing demand of motorcycles in the country.  PHOTO: PID

Finance minister Ishaq Dar hoped that Yamaha will get a good response in Pakistan because of the growing demand of motorcycles in the country. PHOTO: PID

KARACHI: Yamaha, one of the largest motorcycle makers in the world, has resumed assembling motorcycles in Pakistan with an aim to produce up to 400,000 units annually by 2020.

“The new investment from Yamaha will create jobs and bring new technologies,” said Yamaha Motor Company President Hiroyuki Yanagi, adding that, “Pakistan is all set to become one of the top global markets of motorcycles.

Addressing the inaugural ceremony at Port Qasim Industrial Zone, he appreciated the role of the federal government in helping the company set up the plant.

Yamaha Motor Pakistan (Pvt) Ltd, a newly formed company with 100% equity from Yamaha Motor Company, Japan, is expected to produce 30,000 units in year 2015.

The factory has been established with an initial investment of Rs5.3 billion and its current production capacity is 40,000 units per year. It has hired 200 employees in the first phase.

Dar speaks

Finance Minister Ishaq Dar, present on the occasion, said the event is not only historic for Yamaha but also special for the government as it had been looking forward to witnessing this inauguration for the last two years.

“The federal government is aggressively looking for Foreign Direct Investment (FDI) because the future of Pakistan lies in it, especially in the manufacturing sector,” he said.

Talking about foreign investors’ concerns, he said, “The government is ready to help in providing additional security in any of the provinces.”

He hoped that Yamaha will get a good response in Pakistan because of the growing demand of motorcycles in the country. “The middle class in Pakistan is growing and people want quality motorcycles,” he added.

In its initial phase, the company has introduced the “YBR125” model, a 125cc engine motorcycle, with a network of 140 dealerships in different parts of the country. Equipped with new technology, industry analysts say the initial price of YBR125 (Rs129,400) is competitive enough for its rival models in the market. Pak Suzuki’s GS150 is available in Rs128,500 while Atlas Honda’s CG125 and CG125 Deluxe is available in Rs102,900 and Rs124,000, respectively.

Japanese Ambassador to Pakistan Hiroshi Inomata said that the presence of the top leadership of Pakistan in the inauguration ceremony signifies the importance of the investment Yamaha has brought into Pakistan.

“We appreciate the efforts of the government of Pakistan in bringing FDI in the country. We believe this is a win-win situation for both Japan and Pakistan,” Inomata added.

Board of Investment Chairman Dr Miftah Ismail said the middle class of Pakistan was growing at a rapid pace. From the current level of 70 million, it will touch 100 million by 2025, making Pakistan one of the top six countries with the largest middle class in the world, he added.

Published in The Express Tribune, April 28th,  2015.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.

Facebook Conversations

Reader Comments (18)

  • Adnan Siddiqi
    Apr 28, 2015 - 10:11AM

    This is called Pakistan regaining the confidence of investors and this is only possible when a PML-N led government is in power. Good show.Recommend

  • AMB
    Apr 28, 2015 - 10:38AM

    Wah wah, The Middle class in Pakistan will buy Yamaha bikes…where do v get these middle class politicians?Recommend

  • Jahangir Amin
    Apr 28, 2015 - 10:44AM

    @Adnan Siddiqi:
    Dear brother, total of USD 300 million investment had been made by Yamaha in Pakistan during previous govt. It’s just that the company has become operational in this govt. No big deal.Recommend

  • Usman Ansari
    Apr 28, 2015 - 10:56AM

    I fully expect Japan to ramp up investment in Pakistan now that China has unveiled its $46billion investment in the country. Geopolitics demand that Japan use whatever opportunity it has to enhance its influence.Recommend

  • xzoko
    Apr 28, 2015 - 1:05PM

    Have been hearing about this since 2009 in a coverage by pak wheels it should hv been finished 2yrs back finally it happened mainly bcoz of pml n trust me on this had it been Ppp this would never have happened they were filing there own pocketsRecommend

  • Ahsen Salman
    Apr 28, 2015 - 1:12PM

    Such investments are good for the country as well as for the consumers, if a new product equipped with latest technology hits the market, it will create a healthy competition among the manufacturers which definitely benefit the consumers.

    With the introduction of Yamaha’s new bikes, now is the time for the competition to re-think their policies where they are providing minimum 30 years old technology to Pakistani consumers with very bad fuel efficiency figures.

    I think this should be the responsibility of Government or their Departments to create such competition by encouraging new entrants and to ensure that the manufacturers could not create its monopoly and also to ensure that the manufacturers should provide the best / latest technology through their product to Pakistan, as it will ultimately benefit country’s Exchequer in terms of economy on fuel consumption, better environment etc. etc. Recommend

  • Haroon Rashid
    Apr 28, 2015 - 1:44PM

    Mr. Hiroyuki Yanagi launch of Yamaha YBR125 is good step for participation only in Pakistan home market. The BRIC economic region, SAFTA, Pakistans participation now in AIIC has many pluses to cater regional bi-lateral opportunities. Yamaha possibly secure Chinas orders via Pakistan with products as hybrid motor cycle, and Yamaha cars from lPakistan home m a rket to exports & JV in Middle East region local production. Do tell about Yamaha Car too to Pakishtani media as well. Do start Kit Car Assembly window for regional expofts. Recommend

  • Bablu
    Apr 28, 2015 - 2:03PM

    This is a very good news for Pakistan. It brings new jobs, new technology, and it will increase competition among motorcycle players. Good luck Pakistan, and job well done by the federal government. Recommend

  • Shakil
    Apr 28, 2015 - 2:48PM

    What will happend to Dawood Yamaha Limited (DYL) now :) they will have to remove Yamaha from their name as Yamaha itself entered the market now!

    Next should be Kawasaki back in Pakistan with a bang! Yamaha should introduce some latest tech bikes and scooters in Pakistan, as current market is using about 40 years old technology with only different name badges on top of it.Recommend

  • Aarij Siddiqui
    Apr 28, 2015 - 4:19PM

    is just me or no one can find any haters(Indians) over hereRecommend

  • IMRAN
    Apr 28, 2015 - 5:25PM

    Nice work done by YAMAHA CO. and govt.. by this investment by yamaha the former companies also do some efforts to reinvest for new and latest technology to compete with yamaha bikes in terms of quality and style..Recommend

  • devil
    Apr 28, 2015 - 10:50PM

    I appreciate the idea of investment. But I want to ask how can it be competitive when that already giving higher price in Honda and Suzuki. And price of bike rs 129400/- . how can it be economical for the * top six Middle class* Countries.? By all above statement it seems like they r investing for only those people who r rich and can afford those luxury. I agree that our country need these kind of investment to increase job opportunities and to increase exports. I think if they set price between 102000 to 120000rs.. Than it will definitely create huge competition. It will give market a good choice of cheaper bike to buy. Not only that. It also reduce the snatching of Honda bikes.
    One more thing are that going to manufacture completed bike in Pakistan or that still going to import engines from Japan and manufacture only rest of the body parts?Recommend

  • Oats
    Apr 29, 2015 - 12:14AM

    @Jahangir Amin: I think that the current economic climate is improving because any signed contract can be erased just as easily. The reality is that all over the world, perception of the economy of Pakistan under this new government is better.Recommend

  • Hussnain Qasim
    Apr 29, 2015 - 3:13PM

    i love Yamaha bikes. Thank you Yamaha for resuming assembly in Pakistan. I love your bikes. Recommend

  • Hassan Y.
    Apr 29, 2015 - 11:00PM

    Prices are high. It should be in accordance with Honda. Karachi is the biggest user of Bikes. If the law and order situation increases further, then the only bike which we will see on road is no doubt Honda. I own a Suzuki bike thou i don’t like it. Yamaha 125cc should not be more than Rs.122,000 if they are locally manufacturing it.
    Tip for Yamaha, Trail bikes are not locally manufacture and no one is in the market for it. Better to tap that market while offering 100cc to 200cc bikes at an accepted workable price. Recommend

  • haris
    May 5, 2015 - 10:08AM

    So Yamaha will be manufacturing the Engines in Pak as well? or only assembling will be done as the topic name suggests?Recommend

  • Eng Dawood Khan
    May 15, 2015 - 9:36AM

    Nice work done by YAMAHA CO. and govt.. by this investment by yamaha the former companies also do some efforts to reinvest for new and latest technology to compete with yamaha bikes in terms of quality and style..Recommend

  • Abdul Noman
    Sep 8, 2015 - 11:12AM

    This is indeed a great news for us. Now the prices of Yamaha motorcycle may decrease. I love Yamaha YBR 125 and YBRG. Recently I have got YBR on installment in Karachi from http://www.i4u.com.pk and quite happy with this heavy bike. Thank you Yamaha for considering Pakistan great market for them and the impact will be on the people who love sports bikes.Recommend

More in Business