Honda Motor‘s Indonesian unit – PT Honda Prospect Motor (HPM) – has celebrated a one million unit automobile production milestone with a ceremony at the Karawang factory.
VIPs from the Indonesian government attended along with Seiji Kuraishi, executive vice president of Honda Motor, Noriaki Abe, president and CEO of Asian Honda Motor and Tomoki Uchida, president director of HPM.
HPM began local automobile production in February 2003 with the Honda Stream at its factory in Karawang, West Java. The plant was built on an area of 512,500sq m with an initial spend of IDR700bn and production capacity of 80,000 units. HPM started constructing its second factory on a total building area of 145,760sq m in 2012 and spent IDR3.1 trillion. The plant was inaugurated in January 2014 with capacity of 120,000 units taking Indonesian total capacity to 200,000 units a year.
When production started in 2003, annual sales were approximately 22,000 units. The company booked 200,000 unit sales in 2016 with a 19% market share. Currently, HPM produces seven models at the two factories – Mobilio, BR-V, HR-V, Jazz [Fit], Brio RS, Brio Satya and CR-V.
The Karawang factory also exports components worldwide to destinations include neighbouring ASEAN countries, such as Thailand, Malaysia, the Philippines, Vietnam, other Asian countries such as India and Pakistan, as well as Latin American countries, including Mexico, Brazil, and Argentina. HPM also delivers parts to Japan. In 2016, component exports from Indonesia grew from the 5,600 containers shipped in 2015 to over 7,700.
Export value increased from IDR1.8 trillion in 2015 to more than IDR2.2 trillion in 2016. In 2017, HPM plans to increase exports to nearly 10,000 containers worth about IDR2.5 trillion.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataHonda further strengthened its Indonesian production operations with the opening of a stamping factory which produces automobile component parts such as side, roof and floor panels. The factory began operations in May 2016 after a spend of IDR194bn. The factory has implemented advanced production technology, including automatic continuous process and robotic systems, and has capacity for up to 2m pieces per year for both domestic sales and export.
In September 2016, HPM spent an additional IDR228bn on a new crankshaft factory that can make 240,000 a year. This factory complies with the government regulation for Low Cost Green Car (LCGC) models. Currently, HPM has achieved up to 87% local content in its products.
Kuraishi said: “It is a great achievement to arrive at this milestone in just 14 years and follows [on from] Honda Motor Company’s 100 millionth unit of cumulative automobile production worldwide in September last year. Honda sales in Indonesia were ranked fourth for Honda globally, behind only the US, China and Japan. Indonesia has always been and always will be an important market for Honda. We will continue to dedicate ourselves to doing business in Indonesia and the expansion of automobile production capacities with new factories is a testament to that commitment.”
See also: ASEAN market review on just-auto’s research database QUBE
