Business / Corporate

Mitsubishi Motors plans ¥4 billion boost to Indonesia output capacity

Kyodo

Mitsubishi Motors Corp. said Wednesday it will spend ¥4 billion ($35 million) to ramp up production capacity at a plant in Indonesia to meet solid demand for its recently launched multipurpose vehicle.

The carmaker will boost production capacity at a plant in Bekasi — on the eastern border of the capital, Jakarta — to 220,000 vehicles by March 2021 from the current 160,000 to boost shipments of its seven-seater Xpander MPV for the Indonesian and other Southeast Asian markets.

The plan to lift output capacity will create 800 new jobs at the plant, which currently hires 3,300 people, the company said in a release.

Japanese carmakers expect auto demand in Southeast Asian markets to rise sharply following a surge in sales in China and India. Mitsubishi Motors is strengthening its product lineup there as the region is already the key growth driver for the company.

Mitsubishi Motors, which joined the Nissan-Renault alliance in 2016, said it will also begin production of the engine for the Xpander at a plant run by a local subsidiary of Nissan Motor Co., Nissan Motor Indonesia, in 2020.

The vehicle released August last year has been a hit in Indonesia, becoming the best-selling model by monthly sales in March and July.

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