Mitsubishi Motors Corporation (MMC) and Mitsubishi Corporation (MC) have announced the establishment of a new joint manufacturing company, Mitsubishi Motors Krama Yudha Indonesia (MMKI), with local partner Krama Yudha (KY) to construct a new vehicle assembly plant at GIIC Industrial Estate located 37km east of Jakarta.
The MMC, MC and KY partnership has manufactured and sold motor vehicles in Indonesia since 1970, reaching a cumulative total of 1.3m units sold (light commercial vehicles and passenger cars) as of the end of 2014. Indonesia has the fourth largest population in the world and further growth in the automobile market is expected as the economy continues to grow. In this context, developing the partnership’s passenger car business in addition to the current light commercial vehicle business has become a necessity in order to effectively respond to the coming demand increase in Indonesia.
Go deeper with GlobalData
The new plant, with a production capacity of 160,000 units per year, will start operations in April 2017. In addition to already locally-produced vehicles such as the Colt L300, a new small MPV (multi-purpose vehicle) model and a redsigned Pajero Sport will also be assembled at the new plant. A portion of those vehicles will be exported to other ASEAN countries, and the plant is expected to play a very important role as the second largest production site for MMC vehicles in the ASEAN region, after the Laem Chabang Plant in Thailand. Total investment, including costs for the development of the new models, will be approximately JPY60bn (US$501.33m).
A groundbreaking ceremony for the new plant is scheduled for 24 March.
Positioning the ASEAN region as its most important market, MMC has been embarking on a range of new projects under its New Stage 2016 mid-term business plan, including a redesignedTriton pickup truck in Thailand and the construction of a new assembly plant in the Philippines in an effort to achieve sustainable growth and enhance corporate value.
MMC intends to continue working on new assembly plants and launching new models, as well as restructuring its business in Indonesia. The aim of these strategies is to achieve growth in profits by utilising ASEAN production capabilities to fill each country’s needs.
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 GlobalDataMC has been involved in the motor vehicle business in Indonesia for more than 40 years, with activities ranging from production to distribution and auto loan services. As one of the most important markets for its motor vehicle business, MC will draw on its experience in the Indonesian motor vehicle market to strengthen its business foundation through the establishment of this new assembly plant.
