Sign up | Log in



Home  >>   Daily News  >>   Asean  >>Economy  >> China carmaker builds $700m plant in RI for SE Asia market
NEW UPDATES Asean Affairs  24 August 2015  

China carmaker builds $700m plant in RI for SE Asia market

China-based automaker SAIC-GM-Wuling Automobile (SGMW) Corp. Ltd. has kicked off the construction of a factory in Indonesia, its first in Southeast Asia, as it seeks to expand its business in the region.

Located in Bekasi, east of the capital Jakarta, the factory carries a total investment of US$700 million and will be capable of producing up to 150,000 vehicles a year.

The plant, the construction of which is set to be completed by July 2017, is part of the company’s global expansion plan. It chose to develop a factory in Indonesia based on its strategic position as a hub for the Southeast Asian market, from which it could sell products to neighboring countries, such as Malaysia, the Philippines, Singapore and Thailand in the future.

“Indonesia has the biggest economy in Southeast Asia. It has potential for the automotive market,” said Yuan Zhijun, vice president of PT SGMW Motor Indonesia, the company’s subsidiary in Indonesia.

The company will seek to step up its production in the long run in order to distribute its products to other Southeast Asian countries.

“The first production will be focused to supply [the] Indonesian market. We will seek to [export] our cars to neighboring countries afterwards,” PT SGMS Motor Indonesia’s President Xu Feiyun told reporters on the sidelines of the factory’s ground-breaking ceremony on Thursday.

Xu said the company would manufacture cars with 50 percent local content and would plan to increase the local content in the future.

That is in accordance with the aim of the Indonesian government, which wants carmakers to increase their use of local content in order to benefit the country.

“The Trade Ministry is ready to bridge the company and local component industries,” said I Gusti Putu Suryawirawan, the ministry’s director for base metal industries.

He added that SGMW was currently collaborating with 40 local component producers.

Meanwhile, Xu cited big challenges in doing business in Indonesia given the fact that Japanese cars account for around 91 percent of the total automotive market in Indonesia. He said, however, that he was optimistic the company would be able to increase its market share as it had 30 years of experience in the industry.

“At the beginning we may only have a 5 percent share. But [we] will increase it to 10 or 15 percent as we go. The most important thing is to understand the market’s appetite,” Xu explained.

In addition, the Investment Coordinating Board (BKPM) said it had made efforts to convince the Chinese company to enter the Indonesian market since there was already a perception that the country’s market was dominated by Japanese products.

“We convinced them that after-sale services were more important than brands,” said Harri Santoso, the BKPM’s coordinator for investment marketing for China.

SGMW is a joint venture of three companies: SAIC Motor Corp. Ltd, General Motors and Guangxi Automotive Corporation. It produces mini-commercial vehicles and multipurpose vehicles (MPV).

The company has exported its products to South America, North Africa and the Middle East, where they are sold under the General Motors Chevrolet brand.

In 2014, the company sold more than 1.8 million vehicles with a total value of US$11.92 billion, or a 20.7 percent increase from the same period in the previous year.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           August  24 , 2015 Subsribe Now !
• China carmaker builds $700m plant in RI for SE Asia market Subcribe: Asean Affairs Global Magazine
• Productivity focus needed for farming: World Bank
• Trump Hotels teams up with MNC for first hotel in Asia 
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Brunei, UK can collaborate in improving infrastructure
• Seven islands will link to power grid
Asean Analysis                   August 21, 2015
• Asean Analysis August 21, 2015
Endgame to Myanmar’s Cease-fire Deal Tests President Thein Sein’s Resolve
Advertise Your Brand

Asean Stock Watch  August  21,   2015
• Asean Stock Watch-August 21, 2015
The Biweekly Update
• The Biweekly Update August 21, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand