Kawasaki Local Subsidiary in Vietnam Begins Motorcycle Sales
Aug. 23, 2019
Tokyo, August 23rd, 2019 — Kawasaki Heavy Industries, Ltd. announced today the establishment of Kawasaki Motors Vietnam Co., Ltd. (KMV), a locally based motorcycle import and sales company in Vietnam. KMV started the operation yesterday, on August 22nd.
In October 2014, Kawasaki entered a cooperative agreement with Malaysian-owned company, TC Motorcycles (Vietnam) Co., Ltd. (TCMCV), in which Kawasaki played a role in production and international logistics of motorcycles and TCMCV handled domestic sales in Vietnam. However, in response to forecasted growth in the motorcycle market of Vietnam, Kawasaki has decided to establish KMV. KMV has taken over TCMCV's network of dealerships and will use them to carry out sales activities while also establishing new dealer locations in response to market growth, with the aim of expanding Kawasaki's motorcycle business in Vietnam.
The current market of Vietnam saw more than 3.3 million motorcycles sold in 2018, making it the 4th largest motorcycle market in Asia after those of China, India and Indonesia. As Vietnam's economy continues to grow, sales are projected to reach approximately 3.6 million units in 2019.* Furthermore, because income levels are on the rise in Vietnam, rapid growth is expected in the mid-size and large motorcycle categories (250 cc and higher), increasing from approximately 4,400 units in 2018 to roughly 6,600 units in 2019.**
Kawasaki sells 175–1,000 cc class motorcycles of Supersport, sport and naked types (among others) in Vietnam, with plans to sell about 2,500 units in FY 2019. As KMV embarks on sales efforts in Vietnam, Kawasaki plans to continue strengthening the Kawasaki brand and boosting customer satisfaction for its mid-size and large motorcycles.
Overview of Kawasaki Motors Vietnam Co., Ltd.
|Location||Ho Chi Minh City, Socialist Republic of Vietnam|
|Establishment||January 18, 2019|
|General Director||Takeshi Tanigawa|
|Capital||1.5 million US dollars (approx. 165 million Japanese yen***; wholly owned subsidiary of Kawasaki Heavy Industries)|
|Business activities||Sales of motorcycles and related service parts, accessories and after-sales services|
|Number of employees||7 (at the start of company’s operation)|
|*||Statistics published by the Vietnam Association of Motorcycle Manufacturers (VAMM) for 2018 and 2019|
|**||Kawasaki estimates for 2018 and 2019|
|***||At an exchange rate of 1 USD = approx. 110 JPY|