Mitsubishi Motors Corporation (MMC) and business partners Mitsubishi Corporation (MC), PT Krama Yudha (KY) and Mitsubishi Fuso Truck and Bus Corporation (MFTBC) have reached a basic agreement on restructuring MMC-brand vehicle sales operations in Indonesia.

Under the basic agreement, the current distributor PT Krama Yudha Tiga Berlian Motors (KTB) will be split into MMC and MFTBC brands, and a new distributor dedicated to the MMC brand will be set up.

The new entity will enhance MMC’s passenger car sales organisation in Indonesia in areas such as branding, sales personnel training, improving the quality of after-sales and building up the dealer network. The new company is due to start operating in April 2017.

MMC, in partnership with MC and KY started automobile production and sales in 1970 and has since grown to focus mainly on commercial vehicle sales. To meet expected growth in the Indonesian passenger car market, MMC is preparing to commence production in a new factory in April 2017.

In October next year, the new facility in Bekasi will start rolling out a new compact MPV, previewed by the XM Concept that was showcased at this year’s GIIAS show. The SUV-flavoured “low MPV” will compete with the Toyota Avanza, Daihatsu Xenia, Honda Mobilio and Suzuki Ertiga in the Republic. The SUV theme was also used by Honda for the BR-V.

MMC said that it will work to further expand profits in Indonesia through expanding its model lineup, moving its focus from small commercial vehicles to passenger vehicles, strengthening the sales aspect with the new MMC brand-focused distributor, in addition to production through the new factory and new MPV.

GALLERY: Mitsubishi XM Concept at GIIAS 2016