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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.
Profile of the DMI