Mitsubishi Motors is restructuring its sales operations in Indonesia.

It has reached a basic agreement on restructuring MMC-brand vehicle sales operations with local partners Mitsubishi Corporation (MC), PT Krama Yudha (KY) and Mitsubishi Fuso Truck and Bus Corporation (MFTBC), according to a statement.

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Under the new agreement, current distributor PT Krama Yudha Tiga Berlian Motors (KTB) will be split into MMC and MFTBC brands and a new distributor dedicated to the MMC brand will be set up.

"The new distributor will enhance MMC's passenger car sales organisation in Indonesia through promoting areas such as branding, sales personnel training, improving the quality of after-sales services and building up the dealer network. The new company is due to start sales operations in April 2017," MMC said.

MMC, in partnership with MC and KY began car production and sales in Indonesia in 1970 and business has grown subsequently though focused mainly on commercial vehicle sales.

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MMC is preparing for expected growth with a new factory at Mitsubishi Motors Krama Yudha Indonesia (MMKI) scheduled to start assembly in April 2017. The following October, MMC plans to start production of a new compact MPV for which it said there was "a large demand in Indonesia".

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The automaker plans to boost profits in Indonesia by expanding its model line, shifting focus from small commercial vehicles to passenger vehicles, strengthening sales operations with the new MMC brand-focused distributor, new product and expanded local production.