Honda Prospect Motor (HPM) has officially opened its second factory in Karawang, West Java, Indonesia.
Development started with ground breaking on 4 June, 2012 alongside HPM’s first factory and it cost IDR3.1 trillion (US$260m).
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The new factory has total building area of 145,760 m2 and production facilities including stamping, welding, engine assembly, frame assembly, painting, plastic moulding and plastic painting. Support facilities such as the plastic moulding and painting were kept as compact as possible for faster and more efficient material supply to the production areas.
Natural light is used to illuminate as much of the workspace as possible and air conditioning uses the latest technology.
Production capacity of 120,000 units per yeartakes HPM total output to 200,000 units per year. This factory has started with production of the Mobilio, a new model designed for Indonesia.
Local content at HPM is now 86% and the number of local suppliers has increased from 100 to 145 companies.
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By GlobalDataThere are currently 7,500 employess in both factories.
Takanobu Ito, president & CEO of Honda Motor said at the opening ceremony: “This expansion of business in Indonesia to meet market demand reflects the Honda company principle to supply products of the highest quality, yet at a reasonable price for worldwide customer satisfaction. Indonesia has always been an important market for Honda. Now, we are advancing our commitment to expand Honda business in Indonesia.”
Tomoki Uchida, president director of PT HPM, said: “The establishment of our new factory is an effort to meet increasing customer’s demand for Honda products, along with the automotive industry growth in Indonesia. With increasing production capacity and supported by new product like the Mobilio, this is another step toward our target of achieving 300,000 units of sales in Indonesia in 2016.”
Last year, Honda managed to set new record for its own sales in Indonesia with a total of 91,493 units of sales. Honda’s sales achievement in 2013 has grown 132% from previous year, which was the highest growth among other brands in the industry. Moreover, Honda also able to increase its market share from 6.2% in 2012 to 7.5% by the end of 2013, while products like Jazz, CR-V, Civic and CR-Z became market leaders in each respective segments.
