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.
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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Malu apa PHkuuuur…..
Pipu here dun fancy VW and Renault cars
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
VW and Renault already assembly here. So no problem
MAI MAI MAI DANI MAI MALAYSIA
Why not Malaysia?
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!
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!
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?
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.
Dont be so hopeful. These people are not that clean. Trust me. Remember Charles Ghosn?
Carlos is the same as MO1. Don’t worry
Not laziness. But cronism & Proton. All investor lari
But bapa crony is back in the house…
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
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.
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.
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?
Maju lah Indonesia.
I hate to say this but Indonesia is a rising economic tiger . Malaysia has just to swallow it