VW, Renault to start Indonesian assembly this year

VW, Renault to start Indonesian assembly this year

Volkswagen and Renault are set to invest in local assembly in Indonesia this year, according to the country’s ministry of industry, reported by Kompas. There have been rumours on the European carmakers setting up shop in the republic, but the size of the investments are unknown at this point.

According to Indonesia’s director of maritime, transportation and defense equipment Putu Juli Ardika, the two carmakers will use existing facilities in the country, as opposed to building new factories from scratch. He added that Indonesia has car production capacity of 2.2 million units per annum, but current output is at 1.2 million per year.

The government official also said that besides VW and Renault, there are other carmakers ready to invest in local production, such as Hyundai. However, those “Asian brands” aren’t ready to officially announce their intentions yet.

VW, Renault to start Indonesian assembly this year

Last month, Reuters reported that Hyundai is set to invest US$880 million (RM3.6 billion) in Indonesia, and has plans to produce electric vehicles (EVs) in the country, according to Indonesian deputy minister for industry Harjanto.

The official said that the planned factory will have an annual capacity of 250,000 units, including EVs. He added that the plan was to export 53% of the proposed plant’s output, mostly to ASEAN and Australia, with the remaining 47% for domestic consumption.

Hyundai – which along with Kia brand is the world’s number five automaker by sales – has not publicly commented on its plans for Indonesia, but said that it was “considering various ways to expand” in new markets including Southeast Asia. The company insisted that nothing had been decided regarding new production facilities in the region.

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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

  • Malu apa PHkuuuur…..

    Like or Dislike: Thumb up 4 Thumb down 1
  • YB Kunta Kinte on Jan 31, 2019 at 7:41 pm

    OMG we again lost to Thailand and Indonesia again. Wake up la MAI!

    Even Dyson chose Singapore despite labour so expensice to make EV cars

    Like or Dislike: Thumb up 5 Thumb down 1
  • Madani on Jan 31, 2019 at 8:24 pm

    VW and Renault already assembly here. So no problem

    Like or Dislike: Thumb up 3 Thumb down 5
  • Sohai (not ori) on Jan 31, 2019 at 8:40 pm

    MAI MAI MAI DANI MAI MALAYSIA

    Like or Dislike: Thumb up 0 Thumb down 0
  • Petoron Sagu on Jan 31, 2019 at 9:27 pm

    Why not Malaysia?

    Like or Dislike: Thumb up 2 Thumb down 2
  • Manifesto Dicapati on Feb 01, 2019 at 1:58 am

    The one thing that PH promised that they are ardently fulfilling is the setting up of NNCP, and yet we are still at the losing end when Tesla goes to Singapore, BMW & Nissan goes to Thailand, now VW & Renault goes to Indonesia. Everybody is avoiding Malaysia like the plague unlike last year when they were so eager to come. What a waste Malaysia!

    Like or Dislike: Thumb up 7 Thumb down 1
  • Daddykasi on Feb 01, 2019 at 7:31 am

    Rugi Malaysia. Disebab Proton & NNCP, semua lari ke Indonesia & Thailand.. Tak lama lagi Vietnam.. Indonesia hub MPV, Thailand hub Plpick up truck, Malaysia? Kereta sedan bahan api LPG.. Kahkahkahkah!

    Like or Dislike: Thumb up 6 Thumb down 1
    • Phaser on Feb 01, 2019 at 4:17 pm

      Senang je kau tembak Proton ye. Perodua tu apa? Bukan syarikat kereta nasional? Dorang jual 227,000 kereta tahun lepas. Proton jual 65,000. Lepas tu Proton + Perodua ada 20,000 pekerja tempatan. Tak kira suppliers, vendors, SA, dealers dan ramai lagi. Total berapa? 100,000 ada la kut.

      Jadi mana lebih bermanfaat? Bagi syarikat asing buka kilang di Malaysia atau kita majukan syarikat kereta Malaysia ke tahap antarabangsa?

      Like or Dislike: Thumb up 4 Thumb down 3
  • YB Kunta Kinte on Feb 01, 2019 at 7:38 am

    In the 80s and 90s, we were the CKD capital of Asia. All car companies wanted to CKD in Malaysia

    But now, because of corruption and laziness, all car companies past 20 years have moved to Thailand. They have made it the Detroit of Asia.

    The past 20 years, Thailand have got about few hundred billion USD in investments (RM Trillions).

    Pity Malaysia lost this and also few hundred thousand jobs that was meant for Malaysians.

    Today, VW and Renault also want to start in Indonesia.

    Pity MAlaysia. At this rate, even existing companies CKDing in Malaysia also might leave and open in Indonesia or Thailand.

    Hopefully, over time, these companies will see we are cleaning our act.

    Like or Dislike: Thumb up 4 Thumb down 3
  • John Bin Palat on Feb 01, 2019 at 7:55 am

    Last month Hyundai invested RM3.8 billion in Indonesia. But our resident troll John says everybody wants to invest in Malaysia

    Just like Malaysia has the cheapest petrol in the world and cheapest car prices in the world

    Like or Dislike: Thumb up 5 Thumb down 3
    • Rakyat Malaysia on Feb 01, 2019 at 3:09 pm

      Well, John was right about that. Everyone were very interested to come here…. before GE14. Now see what happened when Malaysians made the wrong choice. Really regret pangkah PH.

      Like or Dislike: Thumb up 5 Thumb down 0
  • John Menangis Kuat Kuat on Feb 01, 2019 at 7:56 am

    Thai people work 5 days a week. In Malaysia we work only from Monday to Thursday.

    So this is why car companies prefer Thailand and Indonesia.

    Like or Dislike: Thumb up 3 Thumb down 4
    • Rakyat Malaysia on Feb 01, 2019 at 3:11 pm

      In France, people work only Mondays to Wednesdays, Thursdays at home (can curi tulang), and Fridays is for joining the yellow vests. So how come they still got investment?

      Like or Dislike: Thumb up 4 Thumb down 1
  • Not Toyota Fan on Feb 01, 2019 at 10:26 am

    Maju lah Indonesia.

    Like or Dislike: Thumb up 6 Thumb down 0
  • I hate to say this but Indonesia is a rising economic tiger . Malaysia has just to swallow it

    Like or Dislike: Thumb up 4 Thumb down 0
 

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