automotive

Indonesian-made Left-hand Drive Cars Reach Vietnam Worth Rp 11.46 Billion

The automotive manufacturing industry continues to be a major contributor to foreign exchange and a key player in national economic growth. In 2023, the automotive sector recorded exports of 500,000 Completely Built Up (CBU) vehicles, marking a 6.7 percent increase from 2022. Additionally, exports of parts totaled 122 million pieces.

"I believe that exports are not just about selling products, but also about building a good reputation for the Indonesian industry," said Minister of Industry Agus Gumiwang Kartasasmita during the launch of the first export by PT Chery Indonesia in Cikarang on Friday, November 1.

The Minister praised PT Chery Motor Indonesia for its recent achievement in exporting the OMODA 5 Turbo, a left-hand drive vehicle, to Vietnam. "This is an important moment for enhancing the contribution of the national automotive industry in the global market," he stated.

The first batch will export 60 units of the OMODA 5 Turbo worth Rp11.46 billion, with about nine more batches planned for export to Vietnam by the end of December 2024. "With Chery Indonesia entering the global market, we are showing the world that we can produce high-quality vehicles with advanced technology," the Minister added.

Furthermore, the Minister expressed hope that PT Chery Motor Indonesia would increase the types, variants, and number of units exported, targeting not only traditional markets like ASEAN but also new export markets such as Australia. The export volume could serve as a foundation for Chery Motor Indonesia to invest in building its industry in Indonesia.

"Note for Chery, the local content value is still at 40 percent. This figure can be improved. We need to find ways to increase it to 60 percent," he emphasized.

The Minister of Industry expressed hope that Chery will involve as many small and medium automotive industries in Indonesia as possible to be part of the global supply chain.

Through hard work, innovation, and strong collaboration between the government and industry players, the Minister is optimistic that the first export of PT Chery Motor Indonesia will mark the beginning of significant steps ahead. "The government will continue to support all initiatives aimed at advancing the domestic industry, including training human resources, investing in sustainable innovation and technology, and easing regulations for businesses," he emphasized.

Moreover, in recent years, the national automotive industry has shown impressive performance. In 2023, the four-wheeled vehicle industry produced 1.39 million units, with domestic sales exceeding 1 million units.

Meanwhile, from January to September 2024, the national four-wheeled industry recorded a production value of 881 thousand units, wholesales of 633 thousand units, and exports of 343 thousand units CBU and 35 thousand units CKD (Completely Knocked Down).

Chen Chunqing, Executive Vice President of Chery International, stated that in the past two years, Chery Indonesia has launched several models from the Tiggo and Omoda series in the local market, including ICE and BEV models. With futuristic designs, high-tech features, and safety, Chery has received much appreciation from Indonesian customers.

"Today marks a new milestone in our journey at Chery Indonesia. We are here to witness the start of our first export of the OMODA 5 to Vietnam," he said.

This first export achievement shows that Chery not only strongly supports the government's hopes for car export volumes but also demonstrates Chery's long-term commitment to development and expansion in Indonesia.

Tag: Agus Gumiwang Kartasasmita Automotive Chery Indonesia