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Mitsubishi Motors Drives $375m Investment into Indonesia to Boost EV Production
Mitsubishi Motors is gearing up for a major expansion in Indonesia, sinking 5.7 trillion rupiah ($375.25 million) in 2024 to ramp up production capacity to 250,000 units per year by 2024.
The Japanese automaker also plans to kickstart local production of its Minicab-MiEV battery electric vehicle by the end of 2022.
Indonesia Woos Mitsubishi with EV Incentives
The hefty investment comes as Indonesia offers incentives to attract companies to produce electric vehicles locally. The government is mulling removing import duties and value added tax on fully built EVs for manufacturers with domestic plants. "We are optimistic that this can stimulate investment and EV demand," said Industry Minister Agus Gumiwang Kartasasmita.
A Mitsubishi spokesperson confirmed executives met with the minister but declined to comment further.
Mitsubishi Shifts Focus Towards Hybrids and EVs
The Indonesia expansion aligns with Mitsubishi's broader strategy to pivot towards hybrid and electric models. Mitsubishi plans to begin making hybrids in Thailand in early 2023, marking its first hybrid production outside Japan.
This signals a response to rising competition in ASEAN from Chinese automakers amid Mitsubishi's slow move into EVs. Mitsubishi's sales in the region dropped 1.6% in Q2 2022, with Thailand deliveries plunging 32%.
Mitsubishi investing $375m to expand Indonesia capacity to 250k units by 2024
Kickstarting local EV production this year
Indonesia offering incentives for domestic EV manufacturing
Mitsubishi shifting focus to hybrids and EVs in ASEAN
Source: REUTERS