Honda Motor will build a second car plant in Indonesia costing about JPY27bn.
The new plant with annual capacity of 120,000 units will be built within the property of Honda’s existing plant in a suburb of Jakarta and is scheduled to begin operation in 2014, the automaker told Kyodo News.
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The new plant will produce vehicles such as the Brio – also made in Thailand and India – to sell in the expanding domestic market with exports to neighbouring countries possible in future.
Around 2,000 jobs will be created at the factory near Jakarta, which will have an annual production capacity of 120,000 vehicles, the company told news agency AFP.
“Our operations in Indonesia will take the next step to become more autonomous and play an even more important role for Honda in this region,” Hiroshi Kobayashi, Honda chief operating officer for Asia and Oceania, said.
“Honda will not only build automobiles in Indonesia to meet the needs of customers here. Indonesia will serve as a key export base for Honda, for both completed vehicles and components.”
Earlier this week Honda announced it would be building a new motorcycle factory in Indonesia, capable of producing about 1.1m bikes a year to meet growing demand in the country.
The new plant, operated by Honda’s local joint venture partner PT Astra Honda Motor, will cost about 3.13 trillion Indonesian rupiah (US$341m) and add 3,000 new jobs, it said.
