Mitsubishi plans to increase the production capacity in Indonesia

Mitsubishi plans to increase the production capacity in Indonesia

Mitsubishi has announced it is to increase the production capacity at its state-of-the-art manufacturing facility in Bekasi, Indonesia in response to strong demand for the Xpander crossover MPV in Indonesia and export markets.

The expansion will increase capacity to 220,000 units from the current 160,000 units by fiscal year 2020. The expansion represents an investment of around 4 billion Yen and will see an extra 800 people employed at the Bekasi plant, taking the total number of staff to 4,100.

The production volume of the Xpander will rise from 115,000 units to 160,000 units by fiscal year 2020. Exports will rise from 30,000 units to 50,000 units to feed demand from overseas markets including ASEAN countries.

In addition, the Xpander's engine will be produced in Nissan Motor Indonesia (NMI), a local production subsidiary of Nissan Motor. This will increase the localized parts ratio of the Xpander to about 80% from the current 70% and have beneficial economic effects on the local supply chain. The expansion of NMI facility will mean 160,000 units of the engine will be produced annually.

Since its launch last August, the Xpander has accumulated 100,000 orders in Indonesia by the end of September 2018. In March and July this year, it was ranked No.1 in Indonesia's sales volume ranking, and has received the Car of the Year 2018 from the OTOMOTIF newspaper in March and FORWOT Car of the Year 2018 from Automotive Journalist Forum in September.

Share This Article
Reports

OUR PARTNER

Do you need car GPS? Don't miss factory price offer here!