Honda Motor Co. (HMC) plans to open a new car manufacturing plant in Jakarta, Indonesia by investing 3.1 trillion rupiah ($337 million). The plant, which will be located in Karawang Industrial Park, will produce small cars like Brio compact.
The plant will have an annual production capacity of 120,000 vehicles, lifting the company’s total production capacity in the country to 180,000 vehicles per year. The plant will start operating with a workforce of 2,000 people.
Indonesia has become a manufacturing hot-spot due to its lower wage structure. As a result, many global automakers including General Motors Co. (GM), Nissan Motor Co. (NSANY) and Toyota Motor Corp. (TM) are planning to expand their operation in the country.
Recently, Honda unveiled its plan to build a scooter factory in the country, which will boost its annual capacity to 5.3 million motorcycles. In September last year, Toyota announced its plan to invest
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