GM sets sight on Indonesia, Thailand

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US car maker General Motors plans to expand heavily in Indonesia and Thailand in order to tap growth opportunities in the two markets with rising income levels. The company wants to increase the number of dealerships to 55 from 35 in Indonesia and to 120 from 91 Thailand by the end of 2013, GMs head of Southeast Asian operations, Martin Apfel, was quoted as saying by Bloomberg.

The Detroit-based automaker intends to make up for the sluggish sales in other markets including the US and Europe by expanding its operations and opening up manufacturing bases in the two countries.

GM quit the Indonesian market in 2005 by closing a small assembly plant in Bekasi city, located in West Java on the eastern border of Jakarta due to a financial crunch. However, the automaker recently reactivated the plant in order to strengthen its position in the market dominated by Japanese automakers. PT General Motors Indonesia is targeting to start production by the first quarter of 2013 with a production capacity of 50,000 units, making Indonesia the second GM production center in ASEAN after Thailand.

GM anticipates nearly five-fold increase in sales in Indonesia by 2014. For now, the company plans to manufacture a seven-seat multipurpose vehicle at the plant, aimed at both the local market and other markets in Southeast Asia such as Thailand and the Philippines.

Last year, GM’s Chevrolet brand sales in Indonesia jumped 72 per cent. However, it occupied less than 1 per cent of the market. Meanwhile, the company’s Chevrolet sales in Thailand more than tripled to 59,652 vehicles in the first 10 months of 2012, led by Colorado pickup truck.

GM’s main rival, Ford Motor Co. is also pursuing a major expansion plan in Asia, including China, India and Thailand. The company expects that the continent will account for 70 per cent of its global growth in the next decade, mostly from China and India. It also anticipates Asian sales volumes to double and account for a third of its global sales by 2020.

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Reading Time: 2 minutes

US car maker General Motors plans to expand heavily in Indonesia and Thailand in order to tap growth opportunities in the two markets with rising income levels. The company wants to increase the number of dealerships to 55 from 35 in Indonesia and to 120 from 91 Thailand by the end of 2013, GMs head of Southeast Asian operations, Martin Apfel, was quoted as saying by Bloomberg.

Reading Time: 2 minutes

US car maker General Motors plans to expand heavily in Indonesia and Thailand in order to tap growth opportunities in the two markets with rising income levels. The company wants to increase the number of dealerships to 55 from 35 in Indonesia and to 120 from 91 Thailand by the end of 2013, GMs head of Southeast Asian operations, Martin Apfel, was quoted as saying by Bloomberg.

The Detroit-based automaker intends to make up for the sluggish sales in other markets including the US and Europe by expanding its operations and opening up manufacturing bases in the two countries.

GM quit the Indonesian market in 2005 by closing a small assembly plant in Bekasi city, located in West Java on the eastern border of Jakarta due to a financial crunch. However, the automaker recently reactivated the plant in order to strengthen its position in the market dominated by Japanese automakers. PT General Motors Indonesia is targeting to start production by the first quarter of 2013 with a production capacity of 50,000 units, making Indonesia the second GM production center in ASEAN after Thailand.

GM anticipates nearly five-fold increase in sales in Indonesia by 2014. For now, the company plans to manufacture a seven-seat multipurpose vehicle at the plant, aimed at both the local market and other markets in Southeast Asia such as Thailand and the Philippines.

Last year, GM’s Chevrolet brand sales in Indonesia jumped 72 per cent. However, it occupied less than 1 per cent of the market. Meanwhile, the company’s Chevrolet sales in Thailand more than tripled to 59,652 vehicles in the first 10 months of 2012, led by Colorado pickup truck.

GM’s main rival, Ford Motor Co. is also pursuing a major expansion plan in Asia, including China, India and Thailand. The company expects that the continent will account for 70 per cent of its global growth in the next decade, mostly from China and India. It also anticipates Asian sales volumes to double and account for a third of its global sales by 2020.

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