German car manufacturer BMW has released its 7 series sedans in Indonesia that will be assembled in the nation as it looks for taking advantage of long-lasting need for high-end cars in Southeast Asia’s most significant economy.
Other high-end car automakers such as Daimler AG’s Mercedes-Benz are likewise significantly moving part of their production to the nation of 250 million population to minimize expenses and disperse their automobiles quicker to customers.
“We are really favorable about the future of Indonesia and for that reason we likewise see an increased capacity in the high-end market,” Axel Pannes, handling director of BMW Group Asia, informed Reuters on the sidelines of a media launch in Jakarta.
The German automaker has invested over 210 billion rupiah ($15.5 million) during last 5 years to assemble higher number of vehicle models in Indonesia, the 7 series being the newest addition to its regional line-up.
The group sold an overall of 3,638 vehicles in Indonesia in 2015, up 5.7 percent from a year previously. BMW executives refused to provide sales forecasts for this year or for 2017.
International automakers would gain from lower import tariffs for certain parts if they were to establish regional assembly plants, stated Jongkie Sugiarto, co-chairman of the Association of Indonesia Automotive Industries.
The relocation would likewise be positive for Indonesia as it brings financial investment into the nation and produces employment, he included.
The Indonesian federal government is providing incentives for foreign business to construct automobiles locally, stated I Gusti Putu Suryawirawan, director-general for metal, devices, transportation devices and electronic devices at the industry ministry.
