The international dynamics of motorcycle manufacturing are shifting, and Yamaha is investing in a plant in Pakistan, as the big Japanese producers take advantage of their regional position in Asia and cash-in on that market.
The Yamaha move to Pakistan takes place after a similar announcement that Kawasaki would start manufacturing in Thailand.
The Yamaha investment would amount to $150 million, and the new manufacturing plant would be built in Karachi.
The aim is to assemble 22,000 motorcycles at the plant by 2012, and eventually start building engines there come 2017.
Yamaha would also use Pakistan as a base for its Asian and African exports.