Nissan to double its car production and market share in Indonesia by 2013

Article by Christian A., on August 27, 2010

With the surge in vehicle demand in Southeast Asia's largest economy and with the boost in domestic sales, Nissan Motor Co. now seeks to double its car production and market share in Indonesia by 2013. According to CEO Carlos Ghosn, if the infrastructure in Indonesia is improved, it has the potential to become a regional car export manufacturing base.

Still, Nissan has no plans to relocate plants from Thailand despite the recent reports of violence there.

At a press conference in Jakarta, Ghosn said that most of the capacity that Nissan will be creating in the country is primarily for the requirement in Indonesia.

He said that Nissan anticipates a "very strong growth of Indonesia's market." Nissan" goal is that with a $20 million investment, it plans to make 100,000 cars at its Indonesian plant in 2013. It also aims to expand its market share to above 10% from 5% to 7% currently.

Ghosn revealed that Nissan's Thai manufacturing was at full capacity.

As Indonesia's economy is expected to increase by about 6%, Nissan anticipates record car sales this year. Domestic sales are improving on the back of strong exports of commodities such as coal, coffee and palm oil.

Ghosn described Indonesia as having the potential to become an export base if its infrastructure is developed. [via autonews - sub. required]

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