Jakarta, Indonesia – 08 May 2014 - Nissan has inaugurated its new manufacturing facility in Indonesia. The second plant in Purwakarta, Indonesia, represents an investment of 33 billion yen and the initial production will be dedicated to assembling Datsun vehicles for customers in Indonesia. The 60,000 m2 facility includes body assembly, paint, trim and chassis operations. With the expansion, Nissan increases its production capacity in Indonesia from 100,000 units per year to 250,000 at full ramp-up. The new plant will generate up to an additional 3,000 jobs in the region.
Nissan Motor Chief Competitive Officer (CCO) Hiroto Saikawa said, “By investing in a second plant in Indonesia and leveraging the global manufacturing capabilities of the Nissan Production Way, we are now able to further satisfy the increasing demand of Indonesian customers."
Nissan also confirmed the approval of their Low Cost Green Car (LCGC) program license. With this approval, Nissan will enter the LCGC segment which is expected to be the growth engine for motorization in Indonesia.
Indonesia is a key strategic market for Nissan's global business objectives. Nissan expects to sell more than 90,000 units in Indonesia in 2014. To achieve this goal, the company plans to increase the number of sales outlets from 100 to 130 during the year.
The Low Cost Green Car program initiated by the Indonesian government which exempts luxury taxes on cars with engine capacity of up to 1,200 cc and with a minimum fuel consumption of 20 km/l. The tax exemption also applies to diesel or semi-diesel vehicles of up to 1,500 cc, also with minimum fuel consumption of 20 km/l. The current tax for new vehicles ranges from 10-75 percent, depending on engine size.
Nissan Motor Co., Ltd., Japan's second-largest automotive company, is headquartered in Yokohama, Japan, and is part of the Renault-Nissan Alliance. Operating with approximately 236,000 employees globally, Nissan sold more than 4.9 million vehicles and generated revenue of 9.6 trillion yen (USD 116.16 billion) in fiscal 2012.