Posts tagged automotive

Could Indonesia overtake Thailand as an auto manufacturer?


Will Indonesia overtake Thailand as the automotive manufacturing center of Southeast Asia? Thanks to increased investment from overseas carmakers, government incentives and a growing domestic demand for vehicles, many think so.

Thailand has traditionally been the country of choice for international manufacturers. Despite its own large middle-class customer base and strong production figures (1.64 million vehicles in 2010) it faces new pressure from rising costs and a new government-set minimum $10 daily wage for workers. Companies produced a total 650,000 vehicles in Indonesia and sold 764,000, but forecasts predict both numbers could top a million by 2013.

The Jakarta Globe reports:

Indonesia is already expecting more than $1 billion in investment in the automotive sector starting this year. Nissan recently announced a $250 million expansion plan; Suzuki has announced an $800 million expansion; Chrysler a $100 million expansion; Daihatsu just carried out a $246 million expansion; and BMW a $12 million expansion. India’s Tata also expressed interest in building a production base in Indonesia.


Peugeot and General Motors have also announced plans to assemble vehicles in Indonesia. The government also intends to provide tax breaks for investments over Rp1 trillion (US$117 million), though no formal arrangement has been made yet.

Indonesia’s auto manufacturing base is in Bekasi and Karawang, near Jakarta and the government-set minimum wage of $8 may see Thailand-based companies chase lower costs. As always, Indonesia’s infrastructure inadequacies will be an issue and the country would need to address them before it could become a serious global export leader, an analyst said.

source & article: The Jakarta Globe


Selling to Japan is the ‘feather in the cap’: Malcorp CEO


Malaysian auto parts manufacturers have spent years building a reputation for product build quality and supply reliability, exporting their products to several automakers around the world. Appealing to Japanese automakers, however, is another story entirely. A contract with a major manufacturer there offers lucrative rewards and increased stature, but Japanese thoroughness and taste for flawless quality present extra challenges to suppliers.

Some Malaysian companies were making inroads into the Japanese market even before the 11 March disasters in Tohoku damaged supply chains. The two countries signed a five year Economic Partnership agreement in 2006, with an auto industry component providing a skills training center in Malaysia and a number of trade shows.



Since March, many Japanese companies have expressed a desire to diversify their risks by teaming up with manufacturers in other Asian companies and Malaysia has found itself in a prime position. Trade agencies JETRO and MATRADE are aiding firms to find each other and achieve profitable outcomes on both sides. (more…)

JETRO: Trade fair advice for ASEAN manufacturers in Japan


Malaysian and other Southeast Asian manufacturers are making themselves known in Japan, and more Japanese companies than ever are looking for overseas collaborations. International trade fairs are a fantastic opportunity to showcase a company’s offerings but adapting to each other’s business culture can make the experience more profitable, says Japan’s largest overseas trade organization.

The Japan External Trade Organization, or JETRO, has been around since 1958. Its original mission was to promote Japanese exports in overseas markets, but given radical economic shifts in Japan and elsewhere since then, its mission has broadened to include general facilitation of business understanding between Japanese companies and their overseas partners. This happens mainly through trade fairs, seminars, data-gathering, trade missions and publications. It has offices in 73 cities in every world region, of which 24 are in Asia and nine are in ASEAN countries.

JETRO offers a surprising amount of support to foreign enterprises looking to build a position in the Japanese market. For trade fairs it offers prime exhibition space and decoration, pre-arranges meetings and study tours before the fair begins, actively promotes exhibitions through the media and direct mail, and provides several interpreters.

I spoke recently to Ms. Mio Kawada, JETRO’s Director of International Trade Fairs in Japan, who in May oversaw the fifth Malaysian Auto Industry Exhibition (MAIE) in Yokohama. The expo featured 11 Malaysian manufacturers seeking export and import opportunities, OEM arrangements, technical alliances and other joint ventures with their Japanese counterparts. A glance at the Malaysian auto industry’s experience in Japan offers useful and universal pointers to other industries as well. (more…)

Peugeot the top selling European brand in Malaysia


Peugeot continues its surprising ascendancy in Malaysia, with the Malaysian Automobile Association ranking it the best selling European brand in the first quarter of 2011. Its 1,538 units sold were a huge 167% increase on sales for the same period last year.

Or maybe it’s not so surprising, given that Peugeot has made Malaysia its production hub for the right-hand drive market and manufactures all locally sold models at Naza Automotive in Gurun, Kedah.

Nasim Sdn Bhd, Peugeot’s official Malaysian distributor since 2008, says it’s on target to sell 7,000 new vehicles by the end of the year, launching two new models to achieve that goal. Most popular current models are the mid-size 308 (588 units sold) and the 207 sedan (537 units). The company also announced it would open five new sales and service outlets to bring its total in Malaysia to 23.

Meanwhile, Naza Automotive will produce 60,000 units of an as-yet-unnamed new model between 2012 and 2016, 60% of which will be exported to right hand drive markets in Southeast Asia, Australia, New Zealand and Africa.

source & article: The Edge Malaysia

Indonesian industry grows with more multinational investment


Large multinationals Proctor & Gamble (P&G) and Samsung this week announced increases to their Indonesian manufacturing capacity, while Toyota also reaffirmed its commitment to Indonesia as a major production hub. As well as exports, their products are also aimed at Indonesia’s growing domestic demand.

Toiletries and Home Products giant P&G said it had experienced a double-digit growth in Indonesian demand for its products, which it will meet with a new local plant and office building to manufacture the Gillette, Pantene and Olay product ranges.

Korea’s Samsung C&T said it will invest US$150-200 million in a 50 megawatt solar power plant, after conducting feasibility studies into possible locations in Java, Bali or elsewhere.

Meanwhile Toyota, which has already exported 225,382 complete vehicles via its local subsidiary PT Toyota Astra Motor (TAM) since 1987, says Indonesian domestic  demand is growing rapidly and may reach 1 million units a year within two years. It has already sold 85,494 units this year, a 24% increase on the same period in 2010, and has a 37.9% share of the Indonesian market.

TAM President Johnny Darmawan said his company intends to make Indonesia a major manufacturing base, but also sounded the familiar call for increased commitment from the government in the form of road, port and power improvements and reliable human resource skills.

Peugeot announces new Malaysia-produced sedan


Peugeot will launch a new sedan in Malaysia to compete with the Honda Civic, Toyota Altis and Nissan Sylphy next year, with production to begin locally at Naza Automotive’s plant in Gurun, Kedah by the end of the year.

Malaysia is the center for producing Peugeot’s right-hand drive models in the region, with the company keen to cement its presence in the Southeast Asian market. Naza will make 60,000 of the new sedans over the next five years, with 40% going on sale to the Malaysian domestic market in April 2012 and the remaining 60% exported to Australia, New Zealand, Asean and even Africa.

source & article: The Star online

Audi moves into ASEAN, will assemble vehicles at Jakarta plant


Premium auto brands have their eyes on Asian markets beyond just China and India, and Audi has put its foot in the door with its announcement of a new assembly plant in Indonesia. Audi’s partnership with NDOMOBIL/Garuda Mataram Motor will produce around 2,700 Audi A4 and A6 models by 2015.

In announcing the project, Audi Member of the Board of Management for Production Frank Dreves signalled intentions to build the brand in Indonesia as “one of the most important members of ASEAN” and “one of Asia’s most dynamic growth regions”. Local sales of premium cars look set to boom alongside more everyday models and Audi is likely the fastest-growing premium brand in Southeast Asia, with the company also planning to expand its dealership network in the region.

source & article:

BMW doing well in Malaysia, may assemble more locally


Things have been going well for BMW in Malaysia for the past year, with the launch of its first Malaysian-assembled model in 27 years and sales of a record 4,509 vehicles. The company is now considering local production for a wider range of models.

Malaysia now has fifteen BMW dealerships across the country, including four new ones in Kuala Lumpur, Kuantan, Butterworth and Johor Baru. Traditional models like the smaller BMW 3 series and full sized BMW 7 series had record sales, while the company broadened its range of offerings with the BMW 5 series, the BMW X1, BMW X5, along with the S1000RR Superbike and the new MINI Cooper range.

The BMW X1 is assembled in Kulim, Kedah. BMW is confident Malaysia’s auto industry is recovering from the recent slump, as the sector recorded a Total Industry Volume (TIV) of 598,200 units, beating 2005′s record of 552,316 units.

source & article: Business Times

Indonesia’s Daihatsu subsidiary increases production again


Indonesia’s local Daihatsu subsidiary PT Astra Daihatsu says it will increase its production capacity for the second time this year, thanks to growing local demand for its vehicles. The company will spend Rp150 billion (US$16.7 million) ramping up production to 330,000 units a year, after announcing plans to spend Rp360 billion ($40.1 million) increasing production to 230,000 a year just a few months ago.

PT ADM has been producing cars since 1977 but began collaborating with Toyota Astra Motor in 2004, and has since invested Rp4 trillion ($446 million) in the local auto industry. Its models have included the Daihatsu Xenia and Toyota Avanza minivans, and the Daihatsu Terios and Toyota Rush SUVs. At its peak, the company produced 1 million units a year in 2005.

source & article: Antara News

PSA Peugeot Citroen makes Malaysia its regional export hub


Hot on the heels of its July 70,000-car production deal with Naza, PSA Peugeot Citroen announced yesterday it will make Malaysia its center for exports to ASEAN, Australia and South Africa. Already the #2 carmarker in Europe after Volkswagen, Peugeot has its eyes on Southeast Asia as a major grown region.

A company spokesman says Peugeot “has big ambitions in ASEAN”. Malaysia made up 85% of regional sales with 3,800 vehicles sold. Although this is still less than 1% of the Malaysian market, Peugeot is hoping its new 160cc 207 model can compete well with Japanese models like the Honda City or Toyota Vios. They are increasing their target to 7-8,000 cars in 2011, sold through 20 Malaysian outlets.

article & source: AFP

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