Japanese carmaker Mitsubishi Motors said it is intending to invest about ten trillion rupiah ($667 million) in Indonesia for the expansion of its existing production facilities between 2022 and 2025, Reuters cited the country’s chief economics minister Airlangga Hartarto as saying on July 26. He referred to Mitsubishi Motors CEO Takao Kato who said that the company plans to produce hybrid electric and battery-powered electric vehicles in Indonesia. According to Hartarto, the Japanese company has already invested 11.3 trillion rupiah up to 2021 and is now going to boost its production output through expanded facilities. Increased capacity He said Mitsubishi…
Japanese carmaker Mitsubishi Motors said it is intending to invest about ten trillion rupiah ($667 million) in Indonesia for the expansion of its existing production facilities between 2022 and 2025, Reuters cited the country’s chief economics minister Airlangga Hartarto as saying on July 26.
He referred to Mitsubishi Motors CEO Takao Kato who said that the company plans to produce hybrid electric and battery-powered electric vehicles in Indonesia.
According to Hartarto, the Japanese company has already invested 11.3 trillion rupiah up to 2021 and is now going to boost its production output through expanded facilities.
Increased capacity
He said Mitsubishi Motors was aiming at increasing its export capacity from Indonesia to 72,000 units this year and to 98,000 units in 2024, from 42,000 units in 2021, taking benefit from fiscal incentives for the company’s exported products.
“Indonesia’s tax rate is actually competitive compared to other countries such as Thailand,” Airlangga said. Thailand is another large car assembling nation in the region.
Mitsubishi Motors seeks to diversify its products amid the current electric vehicle trend, focusing on producing electromotive vehicles such as hybrid, plug-in and fuel-cell electric vehicles. Beyond 2023, the company would start the new product lines with the Xpander and Pajero Sport models. Mitsubishi will also produce two new electric vehicle models in 2024.
Key export base
The carmaker established a local manufacturing arm, Mitsubishi Motors Krama Yudha Indonesia, in Bekasi, East Jakarta in 2018 and has made it a key global export base.
From Indonesia, Mitsubishi is exporting to 39 destinations in Asia, Africa and South America. Plans are to ship its vehicles to Australia soon.
Indonesia is an essential country for Mitsubishi, whose market is larger than the company’s sales in Japan. Apart from increasing its investment in the country, the company also plans to launch several new vehicle models with various environmentally friendly engine types for the local market to support the Indonesian government’s program to achieve carbon neutrality in 2060.
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