Honda Indonesia plans major boost in sales by 2016

JAKARTA, Sept 19 Thu Sep 19, 2013 3:19am EDT

JAKARTA, Sept 19 (Reuters) - Honda Motor Co plans to further boost production in Indonesia in the hope of pushing sales to 300,000 units a year in 2016, lifted in part by sales of cheaper, energy-efficient cars.

PT Honda Prospect Motor, its joint venture with PT Astra International, sold 69,000 vehicles last year and has sold 62,000 in the first eight months of this year.

Company director Jonfis Fandy told reporters that the company was aiming at sales of 1,200 units a month of its low-cost green car (LCGC), the Brio Satya, which is due to come onto the market from November.

Indonesia recently approved a new regulation to make such cars tax exempt.

Last week, the fifth-biggest carmaker in the fast-growing market said it would open a new auto plant in Indonesia in 2014 and would more than double its annual car production capacity to 200,000 vehicles.

Fandy said the company planned to build an additional factory after that but did not elaborate. (Reporting by Fathiya Dahrul, Editing by Jonathan Thatcher and Jeremy Laurence)

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