P.T. Honda Prospect Motor (HPM), Honda’s automobile manufacturing and sales joint venture in Indonesia, on Monday held a groundbreaking ceremony to mark the start of the construction of its new automobile production plant in Karawang Industrial Park in a suburb of Jakarta. The ceremony was attended by high ranking official from the Ministry of Industry of Indonesia, as well as Takanobu Ito, Honda Motor Co president & CEO.

With annual production capacity of 120,000 units, the new auto plant is scheduled to begin production in 2014 in order to continue meeting demands in the rapidly growing automobile market in Indonesia. In addition to BRIO, which was developed especially for Asian markets, HPM is planning to produce a new MPV (Multi-Purpose Vehicle) model at the new plant. Designed based on BRIO, the new model will enhance the Honda lineup of MPV models which account for the majority of passenger vehicle sales in Indonesia.

The new plant, an investment of approximately 3.1 trillion Indonesian rupiah (approximately 27 billion yen), will employ approximately 2,000 associates at the start of production. Combined with the current capacity of 60,000 units, HPM’s annual production capacity will total 180,000 units.

Moreover, HPM will strengthen the local product development function, establish a highly efficient production system, and increase local content to approximately 80% from the current level of approximately 50%. Through these efforts, HPM will provide high-quality products to its customers with speed and affordability.

HPM is planning to begin sales of BRIO before the end of 2012 by importing the model from Thailand. HPM will then begin local production of an Indonesian version of the model at the existing plant before the end of 2013, with BRIO production to be transferred to the new plant when it becomes operational in 2014.

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