Mitsubishi announces plan to increase production capacity in Indonesia

JP/Riza Roidila Mufti

 

Mitsubishi Motors has announced plans to increase production capacity at its factory in Bekasi, West Java in response to high demand, particularly for its Xpander MPV, both in domestic and international markets.

A press statement issued by the company in Tokyo on Wednesday said Mitsubishi’s total production capacity in Indonesia would be increased to 220,000 vehicles in 2020 from its current production capacity of 160,000.

For that, the company will invest 4 billion yen (US$34.99 million), which is expected to employ more than 800 new workers to add to the 4,100 current employees of the company.

The statement said production capacity for the Xpander alone would be increased from 115,000 to 160,000 vehicles annually in the 2020 fiscal year.

For exports, production would be increased from 30,000 to 50,000 vehicles to meet demand outside ASEAN.

Xpander engines would be produced at Nissan Motor Indonesia (NMI), increasing  the Xpander’s local content to 80 percent.

The Xpander recorded the largest sales in Indonesia in March and July. It was declared Car of the Year 2018 by Otomotifin March and by the Automotive Journalists Forum in September.

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