Manufacturer of Honda motorcycles in Indonesia, Astra Honda Motor, is confident of being able to surpass Yamaha sales.

Because, PT Astra Honda Motor plans to boost its production capacity to 4 million units from 3.5 million units earlier. The goal is to meet the demand quickly.

Yamaha has also announced it would raise production capacity from three million to 3.6 million units. This step is expected to be effective from early next year.

This information is obtained from Panggah Susanto, Director of Land Transport Equipment Industry and the Ministry of Aerospace Industry, last week. "Yes, they (AHM) have reported to increase capacity to 4 million units," said Panggah.

The national motorcycle market this year is expected to rise to 7 million units. Substantial increases are also expected to occur in 2011. "If they do not add capacity, they could lose their market. Investment up to US$ 50 million," explained Panggah.

According to sources, Honda increased its production to strengthen the position of the automatic scooter. For that, the amount of production in Plant III AHM in Cikarang, West Java, was raised again. Currently, Honda production 150,000 units per month.

Honda will increase its production capacity from three million units to 3.5 million per year, starting this summer. For that, they have poured 30 million dollars of funds. "Increasing capacity for its scooter variants," said Prijono Sugiarto.

When confirmed by sources, Executive Vice President Director AHM Loman declined to elaborate the plan saying further informations would be given when the time comes.