Japanese automaker Mitsubishi Motors said it intends to invest about 10 trillion rupiah ($667 million) in Indonesia between 2022 and 2025, Reuters quoted the country’s Chief Economic Minister Airlangga Hartarto as saying on July 26. to expand its existing production facilities. He mentioned that Mitsubishi Motors CEO Takao Kato said the company plans to produce hybrid and battery-powered electric vehicles in Indonesia. Hartarto said the Japanese company had invested 11.3 trillion rupiah by 2021 and would now increase production by expanding facilities. To increase capacity he said Mitsubishi…
Japanese automaker Mitsubishi Motors said it intends to invest around 10 trillion rupiah ($667 million) in Indonesia between 2022 and 2025 to expand its existing production facilities, Reuters The country’s chief economic minister, Airlangga Hartarto, was quoted as saying on July 26.
He mentioned that Mitsubishi Motors CEO Kato Takao said the company plans to produce hybrid electric vehicles and battery-powered electric vehicles in Indonesia.
Hartarto said the Japanese company had invested 11.3 trillion rupiah by 2021 and would now increase production by expanding facilities.
increase capacity
He said Mitsubishi Motors aims to increase its export capacity from Indonesia from 42,000 in 2021 to 72,000 in 2024 and 98,000 in 2024, thanks to the company’s financial incentives for exporting products.
“Indonesia’s tax rates are actually competitive compared to other countries like Thailand,” Airlangga said. Thailand is another large auto assembler in the region.
Mitsubishi Motors seeks to diversify its products under the current electric vehicle trend, focusing on the production of electric vehicles such as hybrid, plug-in and fuel cell electric vehicles. After 2023, the company will launch a new lineup of Xpander and Pajero Sport models. Mitsubishi will also produce two new electric vehicles in 2024.
key export base
The automaker established its local manufacturing arm, Mitsubishi Motors Krama Yudha Indonesia, in Bekasi, East Jakarta, in 2018, and made it an important global export base.
Mitsubishi exports from Indonesia to 39 destinations in Asia, Africa and South America. It plans to ship its vehicles to Australia soon.
Indonesia is an important country for Mitsubishi, and its market size is larger than the company’s sales in Japan. In addition to increasing investment in Indonesia, the company plans to launch a number of new models for the local market with various eco-friendly engine types to support the Indonesian government’s plan to achieve carbon neutrality by 2060.
