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Mitsubishi Motors Drives $375M Investment into Indonesia to Boost EV Production
Updated: Jan 8
[Edited] Japanese carmaker Mitsubishi Motors has announced plans to invest 5.7 trillion rupiah ($375.25 million) in Indonesia by 2024.
The investment aims to expand the company's production capacity in the country and increase its annual production to 250,000 units by 2024.
Additionally, Mitsubishi plans to start production of the Minicab-MiEV battery electric vehicle in its Indonesian plant by the end of this year.
Indonesia has been actively offering incentives to attract investment in the production of electric vehicles (EVs). The government is considering removing import duties and value-added tax on completely built-up EVs for companies that invest in domestic EV plants.
Industry Minister Agus Gumiwang Kartasasmita believes that these incentives will boost investment and increase demand for EVs in the country.
Executives from Mitsubishi's Tokyo headquarters recently met with Minister Agus to discuss the investment plans.
While a Mitsubishi spokesperson declined to comment further, it is clear that the company is actively exploring opportunities to expand its presence in Indonesia. In addition to its plans in Indonesia, Mitsubishi is also looking to start production of hybrid vehicles in Thailand early next year.
This move would mark the first time the company produces hybrids overseas. However, Mitsubishi has not provided any official comments on this report. Japanese automakers, including Mitsubishi, have faced challenges in the Chinese market and are now facing growing competition in Thailand from Chinese rivals. Mitsubishi's joint venture with Guangzhou Automobile Group (GAC) in China has experienced setbacks, leading to staff cuts and a decline in sales. In the ASEAN region, Mitsubishi reported a drop of 1.6% in retail and wholesale sales for the three months ending June 30.
Despite these challenges, Mitsubishi remains optimistic about its future in Southeast Asia. The company's investment in Indonesia and plans for hybrid production in Thailand demonstrate its commitment to the region and its efforts to adapt to the evolving automotive market.
Mitsubishi Motors plans to invest $375 million in Indonesia by 2024.
The investment aims to expand production capacity and introduce electric vehicles.
Indonesia offers incentives to attract investment in EV production. - Mitsubishi also plans to start hybrid production in Thailand.
Source: REUTERS