Marcos Purty, president director, GM Indonesia, left, and U.S. Ambassador to Indonesia Scot Marciel, right, drive a Chevy Spin off the line in Indonesia.
Another global automaker cemented its interest in Asia as General Motors kicked off production at a new assembly plant in Indonesia: potentially a major automotive market.
Frost & Sullivan predicts Indonesia’s automotive production in 2013 will grow 7.5% reaching 1.2 million units. The demand for the passenger vehicles segment in Indonesia is likely to increase 7.6% year-on-year to 840,000 units in 2013 from 780,500 units in 2012.
The first Chevrolet Spin was led off the production line by Dr. Budi Darmadi, Indonesia’s director general for Leading Industry Based on High Technology, Ministry of Industry, and Tim Lee, GM vice president, Global Manufacturing and president, International Operations, who was on hand to help dedicate the GM Indonesia plant.
Located about 10 miles east of Jakarta, the 624,300-square-foot Bekasi plant is fully owned by General Motors Indonesia. Representing an investment of $150 million, the facility employs 700 people.
“Indonesia is one of General Motors’ fastest growing markets and we are big believers in build where we sell and source where we build,” Lee said. “Last year, we saw a 17% growth in Indonesia compared with 2011. With the excitement around the launch of Chevrolet Spin, we are looking forward to continuing on this path of success.”
The Chevrolet Spin is a global sub-compact, seven-seat MPV designed to offer space, refinement, flexibility and agility in a modern design. Chevrolet Spin also brings features that position it ahead of its competitors, such as a Bluetooth-connection head unit, double-blower air conditioning system with an additional air outlet in the third row, digital speedometer display and multi-information display.
There are three engine variants: 1.2-liter, 1.5-liter and a 1.3-liter diesel. Additionally, the Spin has a six-speed automatic transmission with tiptronic technology. All of these features are firsts in the sub-compact MPV segment.
Chevrolet Spin was introduced in September 2012 at the Indonesia International Motor Show.
Eighty percent of the Spins manufactured in Indonesia will stay in Indonesia, with the remainder exported to Thailand and the Philippines. The Bekasi facility can manufacture as many as 40,000 vehicles a year, GM officials said.
“Today’s opening is a special occasion for our 700 employees, 43 local auto-parts makers and 34 Indonesian Chevrolet dealers,” said Marcos Purty, president director, GM Indonesia.
(Click Here to read about GM’s rollout of the Silverado.)
However, automakers are constantly searching for new markets and the new Indonesian plant could play a role in growth in the region.
Vivek Vaidya, vice president, Automotive & Transportation Practice – Asia Pacific at Frost & Sullivan, said that the growth will be supported by the stable growth of the domestic economy, the continuous investment flow, infrastructure development, and increasing automotive production capacity. However, the growth will likely restricted by numbers of regulatory issues.
Ford recently announced it plans to begin selling F-150s and Rangers in Myanmar shortly and plans to offer a full lineup of vehicles by December. General Motors’ officials have stated that they are looking at the possibilities in Myanmar, but haven’t signaled any commitment beyond that interest.
Myanmar is really a gateway to a larger region of about 10 countries that comprise the Association of Southeast Asia Nations (ASEAN). Those nations combined represent 600 million people, with a little more than half being able to drive, according to Ford.
(To read more about Ford’s move into Myanmar, Click Here.)
On display at the event was a 1928 Chevrolet, marking GM’s tie to the predecessor to GM Indonesia, GM Java, founded in 1927. General Motors was the first car manufacturer to operate in Indonesia.