Although Japanese brand motorcycle have dominated the Southeast Asian markets since the 1960s, European products dominated these markets until the 1950s. The turning points resulted from differences in firm’s responses to the import substitution industrialization policies of Asian countries. This paper explores the market situation of Southeast Asia in the 1950s based on the materials of the Japanese Small Vehicle Manufacturers ’Association, and then clarifies how Japanese companies responded to their policies focusing Taiwan market. It was revealed that export-oriented company policy and the development of trade divisions of Honda Motor in the early periods made it possible to respond to local import substitution industrial policy earlier than other companies. Furthermore, the local government proceeded with the selection of companies by raising the local procurement rate of parts in a short period, underpinning Honda’s investment in production facilities for the Knock Down Assembly plant after 1962.
