Mitsubishi to invest $600 million in Indonesian car factory

GCI11HPKP7Japan’s Mitsubishi Motors Corp will invest $600 million to set up its first multi-purpose vehicle factory in Indonesia, aiming to capitalise on strong demand for the segment in the country as well as to export to other markets in Asia.

Multi-purpose vehicles or MPVs accounted for more than half the 1.23 million cars sold in Indonesia in 2013. Often known as people carriers, larger versions can seat up to eight passengers.

The assembly plant is expected to start production in 2017 and will help Mitsubishi Motors to raise its annual production capacity in Indonesia to 240,000 vehicles from 160,000 currently, Mitsubishi Motors Chief Executive Osamu Masuko told reporters in Jakarta.

Mitsubishi Motors expects to export 20,000 MPVs per year to other countries, mainly Thailand, the Philippines and Vietnam. It does not plan to produce this particular type of car in Japan.

“In Japan, it is very difficult to increase domestic sales because our population decreases every year,” Masuko said.

“While in Indonesia its population still increases every year, so in the future the Indonesian market will become bigger and bigger.”

Mitsubishi Motors, owned 10.1-per cent by Mitsubishi Corp, currently manufactures commercial vehicles at a plant in Jakarta owned by Mitsubishi Corp and local partners.

Foreign investment in Indonesia appears to be picking up on hopes of reform after Joko Widodo was elected president of the country of around 240 million people.

 



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Japan’s Mitsubishi Motors Corp will invest $600 million to set up its first multi-purpose vehicle factory in Indonesia, aiming to capitalise on strong demand for the segment in the country as well as to export to other markets in Asia. Multi-purpose vehicles or MPVs accounted for more than half the 1.23 million cars sold in Indonesia in 2013. Often known as people carriers, larger versions can seat up to eight passengers. The assembly plant is expected to start production in 2017 and will help Mitsubishi Motors to raise its annual production capacity in Indonesia to 240,000 vehicles from 160,000 currently,...

GCI11HPKP7Japan’s Mitsubishi Motors Corp will invest $600 million to set up its first multi-purpose vehicle factory in Indonesia, aiming to capitalise on strong demand for the segment in the country as well as to export to other markets in Asia.

Multi-purpose vehicles or MPVs accounted for more than half the 1.23 million cars sold in Indonesia in 2013. Often known as people carriers, larger versions can seat up to eight passengers.

The assembly plant is expected to start production in 2017 and will help Mitsubishi Motors to raise its annual production capacity in Indonesia to 240,000 vehicles from 160,000 currently, Mitsubishi Motors Chief Executive Osamu Masuko told reporters in Jakarta.

Mitsubishi Motors expects to export 20,000 MPVs per year to other countries, mainly Thailand, the Philippines and Vietnam. It does not plan to produce this particular type of car in Japan.

“In Japan, it is very difficult to increase domestic sales because our population decreases every year,” Masuko said.

“While in Indonesia its population still increases every year, so in the future the Indonesian market will become bigger and bigger.”

Mitsubishi Motors, owned 10.1-per cent by Mitsubishi Corp, currently manufactures commercial vehicles at a plant in Jakarta owned by Mitsubishi Corp and local partners.

Foreign investment in Indonesia appears to be picking up on hopes of reform after Joko Widodo was elected president of the country of around 240 million people.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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