Honda has begun work on a motorcycle factory in Izmir with an investment of 861 million Turkish lira (about $26.7 million), according to reports in the Turkish press.

The company has submitted an application to the Ministry of Environment, Urbanization and Climate Change for the project, and based on available information, the facility is expected to initially produce the 125 cc PCX model.

The factory is set to employ 172 people and will have an annual production capacity of more than 200,000 motorcycles in its first phase.

It will be built on a 100,000-square-meter plot and is expected to manufacture additional models over time.

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Honda Ceo Toshihiro MIbe (AFP Photo)

Details of Honda’s investment in Türkiye emerges

Details from the project introduction file, submitted as part of the environmental impact assessment (EIA) application, include:

• The plant will be located in Coraklar neighborhood of Aliaga, on a 100,000-square-meter site.
• Annual production is planned at 204,500 motorcycles.
• Final decisions have not been made about all models to be produced.
• One confirmed model is the 125 cc PCX scooter.
• Another model with the same engine size, the Activa, is also planned for production.
• A third model, aimed at export—especially to Europe—will be a 1,500 cc scooter. This may be a larger version of an existing model or an entirely new design.
• Final decisions on the models are expected within about a month as planning progresses.
• The investment budget allocated for the project is 861 million TL (approximately $26.7 million).
• The plant will employ 172 people when completed.
• The site falls within an area designated as an “Organized Industrial Zone” under the 1/100,000 Scale Environmental Plan for the Izmir–Manisa Planning Region. The parcel of land belongs to Anatolia Natural Stone Ceramics Company.

With import costs increasing by up to 400% due to a new customs supervision tax, Honda has begun feasibility studies for domestic production to offset the higher costs, according to media reports.

May 04, 2025 10:52 PM GMT+03:00