Bosch has begun operations at its new EUR10m car parts plant in Indonesia as part of a more sustained wave of expansion into south-east Asia’s automotive sector.
The plant in Cikarang, West Java, produces oxygen sensors and fuel injectors for car engines although the company confirmed that capacity at the plant remains very limited at this stage.
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The company hopes to broaden the range of components produced at the plant, depending on regional demand. Vehicle markets in south east Asia are typically dominated by Japanese producers with competitor Denso already well established in Bosch’s targeted market segments.
Bosch said it generated revenues of IDR998bn (US$83m) in Indonesia last year, mainly from automotive aftermarket, power tool and domestic appliance sales.
In south east Asia, Bosch has automotive factories in Thailand, where it produces diesel systems, braking systems and windscreen wipers, and Vietnam where it produces seat belt systems.