Honda's Indonesian subsidiary, PT Honda Prospect Motor (HPM), said it plans to spend IDR4.8 trillion (US$360m) over the next five years to support its passenger car production operations in the country.
The announcement was made at a ceremony to mark the millionth car produced at its Karawang plant in West Java, which has been in operation since 2003.
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The company said it would expand component production capacity to support local vehicle production and also directly export to overseas assembly plants.
Engine production capacity will be increased to 300,000 units per year, from the current 225,000 units. There will also be spending on vehicle frame and polymer injection moulding production facilities at the Karawang complex.
HPM's vehicle production capacity in Indonesia is 200,000 units per year, split between two plants which produce the Jazz, Mobilio, BR-V, CR-V, HR-V, Jazz and Brio models. Sedan-type passenger cars are imported mostly from Thailand.
The brand significantly outperformed the local market last year with 199,364 sales – up 25% on the previous year.
HPM is targeting component exports worth IDR2.5 trillion in 2017, up from IDR2.2 trillion in 2016. According to local reports, the company aims to export 10,000 containers of components this year, up from 7,700 last year. It plans to increase the number of countries it exports parts to from the current 12 – which are located mainly in Asia and Latin America.
