Honda Celebrates One Million Automobile Production Milestone in Indonesia
February 27 2017 - 3:26AM
JCN Newswire (English)
PT Honda Prospect Motor (HPM) today celebrated its one
million-unit automobile production milestone in Indonesia at its
ceremony held at the Karawang Factory. Honorable guest, Director
General of Metal, Machinery, Transportation Equipment, and
Electronics, Mr. I Gusti Putu Suryawirawan, and other VIPs from the
Indonesian government attended the ceremony while Mr. Seiji
Kuraishi, Executive Vice President of Honda Motor Co., Ltd, and Mr.
Noriaki Abe, President and CEO of Asian Honda Motor Co., Ltd.
attended representing Honda together with Mr. Tomoki Uchida,
President Director of HPM.
HPM began local automobile production in February 2003 with Honda
Stream at its factory located in Karawang, West Java, Indonesia.
The Karawang Factory was built on an area of 512,500 m2 with an
initial investment worth of 700 billion rupiah, with the production
capacity of 80,000 units. HPM started constructing its second
factory on a total building area of 145,760 m2 in 2012 with an
investment worth of 3.1 trillion rupiah. The second factory was
inaugurated in January 2014 with the production capacity of 120,000
units, which makes the total production capacity of the company to
200,000 units per year.
Honda has enforced its production capacity in Indonesia to fulfill
the increasing demands for Honda automobile products in the
country. When Honda began its production in Indonesia in 2003, the
sales result was approximately 22,000 units. Since then, Honda has
increased the sales volume considerably and it recorded 200,000
unit sales in 2016 with 19% market share in the country. Currently,
HPM produces 7 models at its two factories, which include very
well-accepted Honda Mobilio, Honda BR-V, Honda HR-V, Honda Jazz,
Honda Brio RS, Honda Brio Satya and Honda CR-V.
The Karawang Factory currently plays an important role in Honda's
global automobile component export worldwide. The export
destinations include neighbouring ASEAN countries, such as
Thailand, Malaysia, the Philippines, Vietnam, other Asian countries
such as India and Pakistan, as well as Latin American countries,
including Mexico, Brazil, and Argentina. HPM also delivers their
component parts to Japan. In 2016, Honda component export from
Indonesia significantly grew and increased the number of containers
exported from 5,600 in 2015 to more than 7,700 containers.
Consequently, the export value also increased from 1.8 trillion
rupiah in 2015 to more than 2.2 trillion rupiah in 2016. In 2017,
HPM plans to increase the export quantity to nearly 10,000
containers with a value of more than 2.5 trillion rupiah.
Honda further strengthened its production operations with the
opening of its stamping factory, which produces automobile
component parts such as side panels, roof panels and floor panels.
The factory began its operation in May 2016 with a total investment
of 194 billion rupiah. The factory has implemented advanced
production technology, including automatic continuous process and
robotic system and has the production capacity of up to 2 million
pieces component parts per year for both domestic sales and
export.
In September 2016, HPM made an additional 228 billion rupiah
investment and started operation of its new factory for crank
shaft. Honda employed advanced and environmentally friendly
technology and adopted high-precision machines at this new factory
to produce maximum of 240,000 crankshafts per year. This crank
shaft factory is met with the regulation enforced by the Indonesian
government for Low Cost Green Car (LCGC) models. Currently, HPM has
achieved up to 87% local content in its products.
Seiji Kuraishi, Executive Vice President of Honda Motor Co., Ltd.
said, "It is a great achievement to arrive at this milestone in
just 14 years and follows in Honda Motor Company's 100 millionth
unit of cumulative automobile production worldwide in September
last year. Honda sales in Indonesia was ranked in 4th position for
Honda globally, behind only US, China and Japan. Indonesia has
always been and always will be an important market for Honda. We
will continue to dedicate ourselves to doing business in Indonesia
and the expansion of automobile production capacities with new
factories is a testament to that commitment."
Tomoki Uchida, President Director of HPM, said, "The achievement of
our one million-unit production milestone demonstrates how well
Honda cars have been loved and acclaimed by our esteemed Indonesian
customers, and also the commitment from Honda for the business
development in Indonesia. We will continue investing to further
enhance our production facilities and human resources and
contributing to the Indonesian automotive industry and the
society."
About PT Honda Prospect Motor
Establishment: 1999
Representative: Tomoki Uchida, President Director
Location: Jakarta, Indonesia
Capital investment: 70 million US Dollar
Capitalization ratio: 51% Honda Motor Co., Ltd.
49% PT Honda Prospect Motor
Employment: Approximately 7,900 associates
Business: Sales and production of automobiles
Honda Prospect Motor Automobile Production Factory
http://www.acnnewswire.com/topimg/Low_HondaProspMotor%20AutoProdFactory.jpg
About Honda
Honda Motor Co., Ltd. (TSE:7267/NYSE:HMC/LSE:HNDA) is one of the
leading manufacturers of automobiles and power products and the
largest manufacture of motorcycles in the world. Honda has always
sought to provide genuine satisfaction to people worldwide. The
result is more than 120 manufacturing facilities in 30 countries
worldwide, producing a wide range of products, including
motorcycles, ATVs, generators, marine engines, lawn and garden
equipment and automobiles that bring the company into contact with
over 19 million customers annually. For more information, please
visit http://world.honda.com.
Source: Honda
Contact:
Honda
Media Inquiries
corporate_pr@hm.honda.co.jp
+81-3-5412-1512
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