Yamaha in Pakistan

Yamaha Motor Co. will build a motorcycle plant in Pakistan with the aim of starting production in 2015, in an attempt to expand its business in an untapped emerging market, company President Hiroyuki Yanagi said Friday in an interview with Kyodo News.
Yamaha will first invest 1.3 billion yen in the Pakistani plant before increasing the amount to a total of 10 billion yen by 2020 to raise its production capacity to 400,000 units a year.
"Motorcycles sold now in Pakistan are mainly Chinese-made, but they are very old," Yanagi said. "We'd like to stimulate the market by introducing new models."
Yamaha has set its initial production target at 40,000 units per year.
The motorcycle market in Pakistan is expected to double to 3 million units in 2020 from the 2013 level of 1.5 million, according to the Japanese manufacturer.
The contract with DYL (Dawood Yamaha Ltd.) has come to an end. DYL will use engine of YAMAHA but will not display logo/monogram of Yamaha anywhere on the motorcycle. They will sell under their own brand names.

 According to ARY News on 11-09-2013:

Karachi : The Board of Investment Chairman, Muhammad Zubair on Tuesday said Japanese company Yamaha would invest $ 150 million to establish a motorcyle manufacturing plant in Karachi. ARY Nerws reported.

This would help boost the foreign direct investment and technology transfer in the country, the Board of Investment (BoI) Chairman said while addressing a press conference here.
 

He said the company had applied in 2009 for establishing its  plant in Pakistan, but it was not given permission by the last regime despite persistent efforts.

He said a delegation of Yamaha approached Federal Finance Minister Muhammad Ishaq Dar and apprised him of the situation.

The minister took up the matter at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, which after detailed deliberations and expediting the process, allowed the company to  set up the plant.

He said the government during the first three months in office, had formulated a motorcycle policy by taking all the stakeholdesr on board and offered incentives to both local and foreign companies for introducing the latest technologies to attract foreign direct investment and development of the local industry.

The BoI Chairman said the local motor cycle manufacturing industry  would have to introduce the modern technology to get benefit from the new policy.

He said that Yamaha would start production by December 2014 as it would invest US$ 150 million during next five years and initially it would produce 25 percent motorcycles here, with 15 percent increase in capacity each year.

Muhammad Zubair said that;

The decision of Yamaha to establish its plant in Pakistan will encourage other famous brand to invest in different sectors of the economy as the country offers more lucrative business opportunities as compared to the regional countries.

He said that FDI was recorded at 23 percent of GDP in 2007 which came down to 13 percent of the GDP showing a decline of US$ 20-24 million during the tenure of last government.

Besides, he said that government was negotiating with the laptop manufacturers to establish their plants in Pakistan to fulfill its domestic requirements as demand and use of the laptops were increasing day by day.

The government is determined for the revival of nation economy by improving the investment climate, attracting FDI and encouraging local investors and famous brands, he added.

He further said that government has taken several steps and announced short medium and long term solution to overcome the energy crisis to promote and develop the local industry.

 

Yamaha to invest $150m for setting up plant in Karachi: BoI Chairman

BoI Chairman Muhammad Zubair yesterday said Japanese company Yamaha would invest $ 150 million to establish a motorcyle manufacturing plant in Karachi.

This would help boost the foreign direct investment and technology transfer in the country, the Board of Investment (BoI) Chairman said while addressing a press conference here. He said the company had applied in 2009 for establishing its plant in Pakistan, but it was not given permission by the last regime despite persistent efforts. He said a delegation of Yamaha approached Federal Finance Minister  Muhammad Ishaq Dar and apprised him of the situation. The minister took up the matter at a meeting of the Economic Coordination Committee (ECC) of the Cabinet, which after detailed deliberations and expediting the process, allowed the company to set up the plant.–APP

 

Board of Investment Chairman Muhammad Zubair on Tuesday announced that the government has granted permission to Yamaha Company to establish motorcycle plant in Karachi and the company would invest $150 million during the next 5 years but would start operations in December 2014.
He, while praising the performance of current regime, said that the last government of Pakistan People’s Party did not issue license to Yamaha that was  applied in 2009 but under the new government, BoI in just 3 months made it possible. This would help boost the foreign direct investment and technology transfer in the country, he said.
He said in a media briefing that Ishaq Dar took up the matter in Economic Coordination Committee of the Cabinet that after detailed deliberations and expediting the process, allowed the company to setup the plant. Yamaha at the initial stages would produce 25 percent motorcycles in Pakistan that will be increased with the passage of time.
Muhammad Zubair said that the government had formulated a motorcycle policy just in 3 months while taking all the stakeholders on board. He said that government has offered incentives to local and foreign companies for introducing latest technologies.
All steps are being taken to attract foreign direct investment and development of local industry. But local industry would have to introduce modern technology to be the beneficiary of new policy formed by the government, he added.
Muhammad Zubair said that decision of Yamaha to establish its plant in Pakistan will encourage other famous brands to invest in different sectors of the economy as the country offers more lucrative business opportunities as compared to the regional countries.
He also said that government was also negotiating with laptop manufacturers to establish their plants in Pakistan. He mentioned that Foreign Direct Investment fell significantly during the tenure of previous government.