China’s Chery Automobile is in talks with Indonesia’s PT Astra International (AI) to assemble its cars in Indonesia for the local market, according to local reports.

Chery has been in touch with executives of PT Gaya Motor, a contract assembler owned by Astra International, to assemble its cars at its plant in North Jakarta after it discontinued its partnership with the Indomobil group in March.

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Chery now has a new local marketing partner, PT Karya Semesta Investama, and is in the process of setting up PT Chery Mobil Indonesia, a new distribution subsidiary.

Gaya Motor assembles vehicles for BMW, Isuzu, Foton and Geely, and will likely add Peugeot to its line up next year. Tata Motors has been in touch regarding the assembly of its Nano mini-car.

Gaya Motor president director Ary Mariano said his company has the ability “to accommodate all clients wish to assemble their cars in Indonesia”.

A decision has not yet been made. Chery wants to assemble the Eastar Cross, a 2.0L seven-seater MPV that would compete head on with the Toyota Innova, Astra International’s largest brand.

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