Yamaha Motor and Toyota Tsusho have agreed to establish a new company, Yamaha Motor Cambodia, to manufacture and market motorcycles with the aim of strengthening the foundation of the motorcycle business in the Cambodian market.
The new company will begin operations on October 1, 2008, and its starting capital of US$11.5 million will be invested 70% by Yamaha Motor, 20% by Toyota Tsusho and 10% by Cambodia’s Kong Nuon Import & Export.
Since March 2007, Asia Motors, a joint venture company between Toyota Tsusho and Kong Nuon Import & Export, has been assembling and marketing motorcycles with parts and components supplied as semi knocked-down kits by Thai Yamaha Motor.
Yamaha Motor Cambodia will begin operations by taking over operations at the Asia Motors factory and the Asia Motors sales network, and a 94,890sqm lot will be acquired in Phnom Penh’s special economic zone for the construction of a new factory.
The initial target for the new company is to expand motorcycle sales to 30,000 units valued at JPY4.2 billion by 2010, after the start of production at the new factory.