Automotive Dealer - Peugeot Citroen assemble cars in Indonesia 2012 ; Constantinus Herlijoso, the CEO of PT Astra International-Peugeot, the authorized distributor of Peugeot cars, said on Friday that the firm would assemble complete knock down (CKD) cars at the production facility of Astra’s subsidiary, PT Gaya Motor, in Sunter, North Jakarta, We expect that the assembly process can start in 2012 and we can start selling locally-assembled cars in 2013.
Peugeot’s market share in the domestic market is still very small, less than 1 percent. By assembling the cars in Indonesia, we expect to grab more shares.
Currently, PT Astra International-Peugeot imports completely built up (CBU) cars, primarily from France, with a smaller quantity coming from Malaysia.
In Asia, Peugeot operates a plant in China, besides Malaysia, which serves as a regional assembly base.
Peugeot domestically assembled its 206 model from 2003. However, in 2005, it ceased operations due to the skyrocketing value of the euro, which pushed up prices and triggered a drop in its annual sales from 2,000 units to 85 units in 2009, which last year increased to 203 units due to an overall growth of Indonesia’s car market, which topped 744,895 units.
The Indonesian Automotive Industry Association (Gaikindo) has projected that automobile sales for 2011 will top 800,000 units, which would be a historic new figure in Southeast Asia’s largest economy.
Stellar economic performance, an improved investment climate and a rising middle class in Indonesia has boosted the confidence of automakers to increase investment in the country.
Major automakers, such as Toyota Motor Manufacturing Indonesia, Nissan, and BMW, have recently unveiled plans to continue investing in Indonesia, while Japanese car maker, PT Astra Daihatsu Motor, is due to construct a new factory in East Karawang, West Java, estimated to cost Rp 2.1 trillion (US$245.7 million).
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