March 21, 2012
Nissan Ups Investment in Indonesia, ASEAN’s Largest Market
March 21 – Jakarta – Nissan CEO Carlos Ghosn announced a ramp up of investment in Indonesia this week, adding $400 million to increase production capacity and sales.
This follows $313 million pledged last July, part of plans to triple sales growth in the ASEAN region.
“In my opinion, this is just a step towards a bigger future. Because it’s a rich country, it has a very big population and we have a steady growth,” said Ghosn.
“There is no doubt in my mind that this is going to be one of the engines of growth of the world, after the BRICS would have reached their plateau.”
With economic growth exceeding 6% last year and an expanding middle class, Nissan has high expectations for Indonesia, which overtook Thailand as the largest car market in ASEAN.
“Let’s not forget that Indonesia is a very rich country with very big potential, which is still very low in terms of automation. You have about 30 cars per 1,000 people in Indonesia, where Brazil is already at 200 or Russia is at 200, and the average European country is at 500,” added Ghosn.
The CEO visited the Cikampek plant, located some 80 kilometers from the capital, telling staff to ready themselves for the task ahead.
A second Indonesian plant is already on the way, with capacity hitting 250,000 by 2014, and the workforce set to exceed 3,000.
During a meeting with President Susilo Bambang Yudhoyono, Ghosn reiterated the automakers’ commitment to Indonesia, which along with India and Russia will be the first markets set for the return of the Datsun brand from 2014.