Motorcycle Market Soars by 36.4%

Honda & Yamaha Keep Competing Tightly
The motorcycle sales volume in the domestic market in January 2008 soared
by 36.4% to 473,060 units from 346,669 units in January 2007.

The Association of Indonesian Motorcycle Industries (AISI) revealed the
sales volume in January was the highest in the past five years.

"I hope the condition will be a good start for the national motorcycle
industry this year. This is a very remarkable achievement," said
Chairperson of AISI Gunadi Sindhuwinata yesterday.

According to him, usually motorcycle sales volume in January was lower
than the sales volume in the previous months since after the Christmas and
New Year's holiday consumers chose to refrain themselves from buying
motorcycles.

Gunadi exposed in January 2008 Honda still ranked highest by selling
208,130 units, up from 153,806 units in January 2007.

In the meantime, Yamaha tailed Honda by selling 185,900 units of
motorcycles, up from 133,199 units in January 2007, while Suzuki in
January 2008 was able to sell 73,043 units of motorcycles.

Three factors

According to him, the significant growth was supported by improved
domestic macro-economic conditions.

He continued there were at least three factors spurring motorcycle sales
volume. The first factor is motorcycle has become a basic need among
Indonesian families.

Second, the controllable inflation has maintained the people's purchasing
power. Third, the relatively low BI Rate at 8% since December 2007 has cut
credit interest rate to 12%-14% per annum. "Most people are still buying
motorcycles on credits."

Domestic motorcycle producers are optimistic they will be able to meet the
target to sell a total 5.2 million units of motorcycles this year.

--------------------------------------------------------------------
This message contains confidential information and is intended only for the
addressee named. If you are not the named addressee (or authorised to
receive for the addressee), you must not disseminate, distribute or copy
this email.Please notify the sender immediately by e-mail if you have
received this e-mail by mistake and delete this e-mail from your system