Nissan Making Sales, Production Push in Indonesia

Nissan opens its second manufacturing facility in Indonesia, boosting its production capacity in the Southeast Asian country from 100,000 units a year to 250,000.

The ¥33 billion ($324.7 million) plant in Purwakarta, 60 miles (95 km) southeast of Jakarta, is seen as a significant step forward for Nissan’s plans to become a leading brand in the country.

Initial production at the 645,834-sq.-ft. (60,000-sq. m) facility that includes body assembly, paint, trim and chassis operations, will involve assembling Datsun vehicles for domestic sales.

The new plant will generate up to 3,000 jobs.

Nissan also confirms the approval of its low-cost green-car program (LCGC) license, giving it access to the segment expected to be the growth engine in the Indonesian auto industry.

The government’s LCGC program exempts luxury taxes on cars with engine capacity of up to 1.2L and with a minimum fuel consumption of 47 mpg (5.0 L/100 km). The tax exemption also applies to diesel or semi-diesel vehicles up to 1.5L with minimum fuel consumption of 47 mpg. The current tax for new vehicles ranges from 10% to 75%, depending on engine size.

Datsun says the first car to be built at the plant is the Datsun GO+.

Nissan Indonesia says to meet the requirements of the LCGC initiative, the official name of the Datsun brand will be Datsun Nusantara, with the Datsun GO+ Panca as the new model’s official name.

“Datsun GO+ Panca is the first of its kind in terms of price and value in the Indonesian family car market, and in the LCGC,” the automaker says in a statement.

The 5-door multipurpose vehicle is powered by a 1.2L 68-hp engine paired with a 5-speed manual transmission.

Nissan is accepting orders for the new car, with first deliveries scheduled for June. The automaker says with prices starting at 85 million rupiah ($7,381), the Datsun GO+ Panca will revolutionize the segment as the only model to offer a spacious and flexible 3-row interior in that price category.

Prices for the three grades and its derivatives range up to 103 million rupiah ($8,930). The Datsun GO+ Panca initially goes on sale at 39 dealerships and by the end of the fiscal year will be available at 95 sales outlets nationwide.

Indonesia is a key strategic market for Nissan's global business objectives. To reach its 2014 goal of selling more than 90,000 units there, the automaker is increasing the overall number of sales outlets from 100 to 130 during the year.