Suzuki Motor Corp.. plans to build new facilities to manufacture engines in Indonesia because growth is so rapid automotive, which is dominated by Toyota Motor Corp. group. Plant, which is also intended to boost production of small cars in the fast-growing market in Southeast Asia. Similarly, Bloomberg reported.
Suzuki will invest U.S. $ 780 million for the third plant built on an area of 1.3 million square meters in the area of Industrial Falkirk, West Java. Construction of the plant is part of an effort to increase production capacity in Indonesia, from 120 thousand units today to 150,000 vehicles.
Intense competition in domestic Japan and sluggish demand caused Sunrise domestic manufacturers, including Suzuki looking for growth overseas. Rise of the yen which hit record highs against the dollar has made exports less competitive than Japan, so Japanese automakers streamline their local production.
This announcement comes shortly after Suzuki announced the purchase of a diesel engine from Fiat SpA. This agreement will help Suzuki to reduce the long waiting period on some best-selling models, such as Swift.
Suzuki currently has two factories in Indonesia with a production capacity of 1 million units of motorcycles and 80,000 cars per year.
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