Japan's Honda Motor plans to invest more than 100 million dollars to increase its motorcycle production in Indonesia in response to growing demand there, a report said on Monday.
Honda will spend more than 10 billion yen (109 million dollars) to raise capacity at a factory that it jointly operates with PT Astra International, by 20 percent to 3.6 million units, the Nikkei business daily said.
Indonesia is Honda's second-largest market for motorcycles, after India. The expansion of the factory is targeted to begin in 2010, the report said, without naming its sources.
A Honda spokeswoman said "nothing had been decided" about whether to expand the motorcycle business in Indonesia.
Honda has weathered the global economic downturn better than its two main Japanese rivals, Toyota and Nissan, partly due to brisk demand for its motorcycles, particularly in emerging economies.