The Suzuki Motor Corporation is investing 60 billion yen to build a new car plant in Indonesia for passenger cars, a spokesman for the company announced on Sunday. The news comes as the Japanese automakers are targeting the world’s fourth most populous state. Which if they conquer will make Suzuki a real global force to be reckoned with.
Suzuki is the fourth largest carmaker in Japan by sales.
Suzuki is the fourth largest carmaker in Japan by it’s volume of sales and the company is set to manufacture small cars in the country based on the 660 cc mini car, fuel efficient “Wagon R” which is currently sold in Japan. While in the UK Suzuki is most well known for its motorbikes and cars such as the Vitra, Grand Vitra, Jiminy, Alto and the ever popular Swift.
In the country, Suzuki will exchange the 660 cc engine for ones with a larger displacement. The spokesperson for the company did not disclose the capacity of the plant or when it will begin operating. Suzuki already has a vehicle plant in Indonesia.
The Indian Sales and far East market with its emerging economy is a massive market in comparison. Over 1 Million vehicles were sold last year in Indonesia and the country recently signed into a law a low cost green car programme, to promote small vehicles, however it is on hold pending a review.
Suzuki is amongst other Japanese carmakers such as Honda and Toyota that are considering utilising the Japan only mini car technology to try and build a presence in emerging markets that have a fast growing middle class, such as Indonesia.
Maruti Suzuki India Ltd is the largest carmaker in India by Sales
Suzuki is already known for it’s presence in India, where it has been producing vehicles since the early 1980’s. It’s subsidiary company Maruti Suzuki India Ltd is the largest carmaker in the country by sales.