Suzuki Motor Corp is making a JPY60-billion ($611.4 million) investment to construct a new passenger car factory in Indonesia. Suzuki spokesman Ei Mochizuki told Reuters that the carmaker plans to build small cars in Indonesia based on its fuel-efficient 660cc mini car "Wagon R". Suzuki is Japan's fourth largest carmaker in terms of sales volume.
Mochizuki said that carmaker will be exchanging the 660cc engine for powerplants with a bigger displacement. Suzuki currently owns and operates a car plant in the country.
Indonesia recently signed into law a Low Cost Green Car (LCGC) program aimed at promoting small cars, although it is on hold pending review.
Suzuki is one of the Japanese carmakers including Toyota Motor Corp and Honda Motor Co that are mulling using their Japan-only mini car technology to penetrate emerging markets with a fast growing middle class like Indonesia, which is the fourth most-populous country in the world.