Yamaha Brand Motorcycle Production Begins Again in Iran Under Technical Assistance Agreement

Yamaha Motor Co., Ltd. (YMC) has recently concluded a technical assistance agreement with the nationally run Iranian motorcycle maker DMI (President: M. H. Kakoei Nejad; Location: Tehran) to begin the manufacture of motorcycles in Iran, and a signing ceremony finalizing the agreement has just been held at YMC's home offices in Iwata, Shizuoka Pref., Japan. Under this agreement, plans call for the manufacture of Yamaha brand motorcycles to begin in Iran in the summer of 2002.

The motorcycle model to be manufactured by DMI under the recently concluded technical assistance agreement is the 4-stroke 125cc engine-powered "YBX" presently being manufactured by YMC'S Indian joint venture, Yamaha Motor Escorts Limited (YMEL). Under the agreement, YMC will supply technical assistance in the areas of manufacturing technology, quality control and the introduction of manufacturing equipment and facilities, while parts for the actual manufacturing will be supplied by YMEL. With a goal of achieving 40% local supply of parts, efforts will also be promoted toward the manufacture and procurement of main parts and components in Iran as well. The production goal under the agreement is 20,000 units in the first year, 2002, and 50,000 units annually from the third year on.

In the past, from 1971 to '81, DMI manufactured three Yamaha brand motorcycle models in the 80cc, 100cc and 125cc classes under a technical assistance agreement with YMC. For a period of time after the Iranian Revolution production was halted, after which YMC began supplying Yamaha parts for models to be manufactured and sold by DMI under the DMI brand name. In recent years, inexpensive motorcycle models of Chinese makers have entered the Iranian market and demand has risen to close to 250,000 units annually. In light of these market developments, DMI and YMC have been considering local production of a 4-stroke 125cc model on the Iranian market.

Under the new technical assistance agreement, we will be working to expand the market for Yamaha brand motorcycles in Iran by supplying models that better fit the needs of the expanding Iranian market, especially by increasing price competitiveness by making use of models that are already being manufactured in other overseas Yamaha production bases.

*Figures calculated at exchange rates of: 1 rial = 0.015 yen 1 rupee = 2.6 yen