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MG to start manufacturing EVs at Rp 4t plant in W. Java in February
Currently, all MG cars sold in Indonesia are completely built-up (CBU) vehicles from the firm’s manufacturing plants in Thailand and China.
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Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan (second left) looks at an MG4 EV in Jakarta on April 29, 2023. (MG Motor Indonesia/-)
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utomotive brand Morris Garage (MG) will kick off production at a new factory in Cikarang, West Java, in February, the company announced on Wednesday.
The investment in the facility totals some Rp 4 trillion (US$257 million), according to Arief Syarifudin, marketing and PR director for MG Motor Indonesia, as quoted by Bisnis.com.
The plant is located near the production facility of MG's sister company, Wuling. Both brands are owned by Chinese state-owned car manufacturer SAIC Motor Corp, which invested some Rp 10 trillion in the factories.
Initially, MG's assembly facility is expected to produce the electric vehicle (EV) version of its ZS model, followed by the MG 4 EV a month later.
The company said the factory would have an annual production capacity of 100,000 units, with 60 percent of that figure dedicated to EVs. This would help MG increase its local content share to 60 percent by 2027, making its cars eligible for a value-added tax cut.
Around 70 percent of the factory's production will be for domestic market, while the rest will be exported to other countries, such as Australia, starting in the fourth quarter of next year, according to the Bisnis.com report.
Read also: Chinese carmakers edge ahead in Indonesian electric vehicle market
