Honda Prospect Motor, the sole local distributor and assembler for the Japanese automaker in Indonesia, has begun building its second factory as part of its effort to expand into the low-cost car market here.
The new plant will help the automaker meet growing demand for passenger vehicles.
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The new factory is being built next to Honda’s existing facility in Karawang, about 70km (40 miles) east of Jakarta. It is scheduled to be completed by early 2014 and will produce the Brio small car and a seven seat MPV variant plus other mainstream models.
Honda, through its 51% owned affiliate PT Honda Prospect Motor (HPM), also makes the CRV, Jazz and Freed models in Indonesia.
The new plant will increase Honda’s production capacity in the country to 180,000 units a year, from 65,000 units now, at a cost of IDR3.1 trillion (US$325m).
HPM marketing director Jonfis Fandy said the company will begin importing the Brio from its main Thailand production base in July [it’s also made in India – ed] in time for launch at the Jakarta motor show.
