GM and SAIC gunning for Indonesian car market

wuling-hongtu

The fast growing Indonesian car market has caught the interest of General Motors and its Chinese partner SAIC Motor Corp. Both parties are in talks to form a joint venture to sell vehicles in the ASEAN country, a senior GM executive confirmed.

“We have to figure out how to strengthen our position in Indonesia. As one option, we are looking at doing something with SAIC,” said Bob Socia, president of GM China, at the Detroit motor show. “Indonesia is a huge opportunity. They have 240 million people, and very low penetration of vehicles.”

He added the Indonesia’s growing economy makes it a promising market for low-priced cars and vans. In China, GM has a JV with SAIC – SAIC-GM-Wuling Automobile Co – that produces commercial small vans and entry-level sedans. Besides China, Wuling sells its cars in India and South America.

GM already has a presence in Toyota-dominated Indonesia (36% market share), although it’s not very big there. Last June, GM announced plans to reopen its assembly plant in Bekasi, West Java, to produce the seven-seat Chevrolet Spin MPV this year. The plant will initially produce up to 40,000 units per annum.

Separately, SAIC, which is also the owner of the MG and Roewe brands, will set up a 50,000-unit capacity assembly plant in Thailand. The Shanghai-based company will partner the Charoen Pokphand Group in this venture, which will build cars for sale in the ASEAN region. This deal doesn’t involve GM.

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Danny Tan

Danny Tan loves driving as much as he loves a certain herbal meat soup, and sweet engine music as much as drum beats. He has been in the auto industry since 2006, previously filling the pages of two motoring magazines before joining this website. Enjoys detailing the experience more than the technical details.

 

Comments

  • only pertaining to indonesia and thailand. and new hot models keep penetrating singaopore only, leaving ourr country in the middle stuck with old tech proton and perutduas.

    Like or Dislike: Thumb up 8 Thumb down 2
  • We can’t really compete with Indonesia when it comes to market opportunity and potential as well as industrial output. they have 240 million plus population that are ever growing richer. So as an alternative ,we have to think out of the box and be creative. Starting with making Malaysia a technology or green-car hub, going with quality instead of quantity that we will lose. The Germans and Japanese did that in the 60s and 70s and it worked for them. The Koreans are doing it now.

    But sadly, my renting and proposal in this comment here is how far this will go. Because I know somewhere, maybe Putrajaya, there are some Inglorious people, sitting in a fountain full of paper Ringgits, singing Trololo.

    Like or Dislike: Thumb up 16 Thumb down 1
  • langit hitam on Jan 29, 2013 at 3:37 pm

    Why no interesting newa about Malaysian Automotive Industries?All went to Indonesian amd Thailand.

    Like or Dislike: Thumb up 0 Thumb down 0
  • listenlistenlisten on Jan 29, 2013 at 3:50 pm

    Am I the only one who noticed that the mini MPV in the picture above looks like it is derived from Proton Juara which is derived from Mitsubishi Town Box?

    Like or Dislike: Thumb up 4 Thumb down 3
  • engdau on Jan 29, 2013 at 4:18 pm

    Please sell our remaining unsold stock of “Juara” to Indonesia.

    Like or Dislike: Thumb up 3 Thumb down 2
  • javanese on Aug 23, 2013 at 6:03 pm

    proton juara?? upz, sorry “no designs such as litter box” for indonesian. :D

    Like or Dislike: Thumb up 0 Thumb down 0
  • robb Lee on Jan 06, 2016 at 10:43 pm

    Wuling Motors will play a significant role with GM China and SAIC in SE Asia. Huge market potential.

    Like or Dislike: Thumb up 5 Thumb down 0
  • robb Lee on Feb 02, 2016 at 1:13 am

    I suspect Wuling Motors will play a major role in the Indonesian auto economy over the next coming years as SE Asia demand for auto’s are growing exponentially!

    Like or Dislike: Thumb up 4 Thumb down 0
 

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