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April 12, 2019

SAIC-GM-Wuling to boost Indonesia output, begin export

SAIC-GM-Wuling Automobile said it planned to lift output at its vehicle assembly plant in Indonesia as it looks to start exports to neighbouring markets, including Thailand.

By bcusack

SAIC-GM-Wuling Automobile said it planned to lift output at its vehicle assembly plant in Indonesia as it looks to start exports to neighbouring markets, including Thailand.

The Chinese joint venture company began operations at its US$700m factory located in Cikarang, just east of Jakarta, in 2017.

This is the company's only overseas vehicle factory so far and it has production capacity of 120,000 units per year.

The plant currently makes four models, including the Confero compact MPV, the Formo van and the Cortez compact SUV.

Last February it launched the 1.5-litre Almaz SUV.

Sales in Indonesia approached 17,200 vehicles last year, up from just under 5,000 units in 2017, and the company is under pressure to raise output. 

To help drive sales, SGMW marketing director Zhou Xing said the company planned to roll out "refreshed or all-new models in Indonesia every year".

Its current sales network of 93 outlets is also being expanded.

Zhou said the company was stepping up effort to increase local content to help reduce costs, with 16 Chinese suppliers already established in the country so far – producing steel and plastic parts as well as air conditioning systems.

SGMW currently exports vehicles to around 30 countries worldwide from China, mostly to south east Asia, Africa and the [Central and Southern] Americas.

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