Mitsubishi Motors (MMC) plans to invest IDR5.7trn (US$375m) in Indonesia by the end of 2024 to expand capacity and introduce new models, according to local reports citing a government official.

At the opening of the Gaikindo Indonesia International Auto Show this week industry minister Agus Gumiwang Kartasasmita said the automaker planned to expand capacity at its Bekasi plant to 250,000 units next year. He was understood to have met with MMC executives during a recent trip to Japan.

The factory, run by the automaker’s majority owned local joint venture Mitsubishi Motors Krama Yudha, was completed in 2017 with capacity for 160,000 vehicles per year.

It makes the Xpander and Pajero models for ASEAN markets as well as the Nissan Livina after its Alliance partner ceased production in the country two years ago. The plant produced 201,000 vehicles last year, according to industry data.

Mitsubishi plans to build the Minicab MiEV electric vehicle (EV) at the plant by the end of this year, according to the industry ministry.

The government cut the sales tax on locally made EVs and was considering lifting import duty and sales tax on imported EVs for companies planning to invest in local production. Agus said: “We are optimistic that, if this policy is implemented, we can attract more investment and increase demand for EVs."

MMC also plans to produce hybrids in Thailand next year, according to unconfirmed reports in Japan, which would make the country the first outside Japan building its hybrid electrics.