Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>  Daily News  >>   Indonesia News  >>  Automotive  >>  German car maker picks Indonesia to launch SE Asia expansion

NEWS UPDATES 12 May 2009

German car maker picks Indonesia to launch SE Asia expansion

Related Stories

January 12, 2009
Indonesia’s car sales seen down 30% in 2009

December 8, 2008
Indonesia govt concerns over mass layoffs in car industry 

September 17, 2008
Indonesian car sales up 41% in August

September 10, 2008
Malaysia’s Proton to sell new MPV in Thailand, Indonesia

September 4, 2008
Toyota set to build $27m parts facility in Indonesia

August 28, 2008
Indonesian Toyota to raise prices gradually

August 26, 2008
GM setting up Asean MPV hub in Indonesia  

Volkswagen, Europe's largest carmaker, took a first step in its South East Asia expansion strategy with a deal to assemble Tourans compact minivans in Indonesia this year, reported Reuters.

"The plans envisage expanding market share in the Asean region beyond Indonesia, thus establishing Volkswagen throughout the region. It is intended to broaden the product offering to include further vehicles from the Volkswagen, Skoda, Audi and Volkswagen Commercial Vehicles brands," VW said.

VW is teaming up with Indomobil Group, the country's largest auto company and parent to Volkswagen's exclusive Indonesian distributor PT Garuda Mataram Motor.

Capacity initially would be several hundred Tourans and would gradually increase, VW said in a statement on Monday, adding that full-scale manufacturing could conceivably begin in 2012.

The Indonesian plant would take in pre-finished vehicles and carry out final assembly.

Shipping incomplete models for assembly elsewhere is a favoured method to supply markets with high import duties and, depending on the extent of the operation, can require roughly a tenth of the investment of a normal production site.

VW already sells the Tiguan compact SUV, the larger Touareg and the Golf GTI performance hatchback in Indonesia.

Over 500,000 new cars were sold in Indonesia last year, up from about 435,000 in 2007.

Volkswagen is keen to expand in South-east Asia, which it says offers "enormous" growth opportunities, but failed to clinch a deal with Malaysia's Proton after repeated negotiations.




 


Comment on this Article. Send them to  your.views@aseanaffairs.com

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
 
or
submit your comment in the box below 

Name

Name


Email

Email



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
asean@aseanaffairs.com