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Gaikindo aims for production of 1.4 million cars by year end
The Association of Indonesian Automotive Manufacturers (Gaikindo) wants the Indonesian automotive industry to produce up to 1
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he Association of Indonesian Automotive Manufacturers (Gaikindo) wants the Indonesian automotive industry to produce up to 1.4 million units by the end of the year.
According to Gaikindo, the automotive industry has been experiencing a handsome growth in Indonesia since the country's gross domestic product (GDP) reached US$5,000 a year, making it a durably lucrative and attractive market.
The Industry Ministry's director-general for high technology industries, Budi Darmadi, said that the total amount of cars being produced in Indonesia reached 1.2 million units in 2013. Within the first eight months of 2014, car production rose by 14 percent compared to the same period last year, reaching 878,000 units.
Budi also said that this year's production capacity has risen since several companies were putting their investment plans into place in 2014.
'We had a number of companies announce their investments about one to two years ago and that does not include companies such as Mitsubishi and Volkswagen, who have recently announced their investment plans,' he said on the sidelines of the 22nd Indonesia International Motor, as quoted by kontan.co.id.
Mitsubishi, for instance, recently announced plans to build its second factory in the country, which would have the capacity to produce a total of 160,000 cars annually by 2017.
Currently, Gaikindo aims for a total national production capacity of 2.2 million units by 2017. (dyl/nfo)(++++)
