Honda is set to relocate a factory from India to Indonesia, although it has not been disclosed as to when this will occur. CNN Indonesia reports that the country’s minister of industry, Agus Gumiwang, revealed these plans following a meeting with Honda principals during a visit to Japan last week.
Agus said that that Honda has pledged a strong commitment to investing in Indonesia. “Honda is committed to increasing investment until 2024 of around 5.2 trillion rupiah (RM1.49 billion), including the development of new models being carried out in Indonesia,” he said. He added that the automaker is planning to build a new electrified model in the republic, but its identity was not revealed, nor was it disclosed if it would be a hybrid.
He said that the company will be looking to increase its export activities, in the form of vehicles as well as components, with “car components produced in Indonesia being sent to become part of the global value chain.”
Previously, Honda Prospect Motor (HPM) had said that the automaker was looking at new investments in Indonesia, but did not mention that the investment was related to factory relocation. At the time, HPM said that the investment was not for the development of electric and hybrid cars, but would focus on conventional car strategies according to market needs as well as localisation.
Currently, HPM has two assembly plants in Karawang, West Java, with an installed annual capacity of 200,000 units. Local assembly products include the CR-V, HR-V, BR-V, Mobilio and Brio.
The news of a possible production facility relocation to Indonesia comes three months after the automaker said it was halting production at one of its two car manufacturing plants in India, which together have a combined production capacity of 280,000 units.
In December, Honda announced that it stopped producing cars at its plant in Greater Noida, close to New Delhi, and was moving all vehicle and component production in the country to its 180,000 unit-capacity Tapukara plant in the state of Rajasthan. In the fiscal year ending March 31, 2020, the carmaker sold 102,000 units in India and exported 4,000 units.
This realignment of its manufacturing operations is a natural step, given that production capacity is heavily under-utilised. Last July, Honda had announced plans to make India a strategic export hub for left-hand drive units to Europe by the end of the 2020 as a means to offset the slowing local demand.
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Toyota, Honda & Mitsu to Indon. Cemerlang gitu!
The automotive FDI trend for today:
Indonesia gets automotive investment from Honda, Mitsubishi and Toyota.
Meanwhile today’s news from Boleh-Land, Perodua Myvi sedan rendered with Ativa design cues.
Topkek.
Why is everyone moving to indonesia overnight? Some sort of FIZ arrangement there ?
Omnibus law
With Toyota, Mitsubishi and Honda investment in EV and hybrid in Indonesia, there goes RM12b investment money. Malaysian soon go Indonesia to be kakak and buruh! Well done Malaysia!
This must be due to India gomen minum teh tarik, sleeping 10x, which caused them to lose out to Indonesia. They should learn from us to have national car that won’t easily run away. Well done Malaysia!
LoL! That’s not the reason. Honda has been slow & pathetic towards Indian market which made them lose market share. In Indonesia they have Nickel & Cobalt in abundance do it helps in their EV policy. Please do some basic research before commenting.
Why car makers are choosing Indonesia and Thailand??
once again, Malaysia diabaikan ….hai :(
Simple reason; they have cobalt & nickel and we don’t. You think they go there to give jobs to Indonesians? Lmao!
8+3.2+1.49+…dan seterusnya
Miti
I hope Honda factory in Melaka will remain and continue to contribute to local market.
So worrying that all these billion ringgit investments avoiding Malaysia. Why?
So worrying that all these billion ringgit investments avoiding Malaysia. Why?
Remember when all those idiots came out to protest the government’s initiative to bring in these companies to Indonesia? Now they should be thanking them for bringing all these investments and giving them jobs. Kampung mentality hard to change.
Omnibus law.
aiya … Malaysia diabaikan sekali lagi …
aiya … Malaysia terlepas bencana alam sekitar sekali lagi …
Indonesia is the world biggest nickel & they have imposed a policy that all mined nickels has to be processed in their country before exporting. That is why most of the auto maker going into EV relocate there. Cheaper to produce with abundance raw materials.
Honda doesn’t buy nickel directly for their EVs. Rather the nickel will go through the extensive automotive supply chain before it ends up in the EV battery. Refining of nickel is already being done in Indonesia by the big boys of mining Vale & Tsingshan. Plus EV battery cells are generally made in Japan & China so the refined nickel has to go there first