Renault-Nissan Alliance Expands Southeast Asian Footprint in Indonesia

VIENNA – The Renault-Nissan Alliance is taking significant steps to increase its presence in Indonesia, as the Japanese auto maker shows a new Datsun model for the local market and its French partner announces assembly plans in the country.

Indonesia is among the top emerging markets in Southeast Asia, with a population of 250 million. The country, which has 36 vehicles for every 1,000 residents, is seen as one of the world’s most promising passenger-vehicle markets.

“We plan to quadruple sales in Indonesia from 2010 to 2016, and Indonesia will become one of Nissan’s top 10 countries if not top five,” Datsun chief Vincent Cobee tells WardsAuto in an earlier interview.

Following the debut of the Datsun GO small hatchback in India in July, Nissan shows the all-new Datsun GO+ 7-seat multipurpose vehicle at the Jakarta auto show being held this week in Indonesia’s capital.

“It’s a leap in terms of fuel economy, cost of ownership, modernity (and) technology,” Cobee says of the model.

The Datsun GO+ also creates an all-new segment in its price range with its 3-row seating, Nissan says. The MPV is powered by a 1.2L gasoline engine mated to a 5-speed manual transmission.

Both the hatchback and the MPV will be produced locally at the Nissan plant in Purwakarta, 50 miles (80 km) southeast of Jakarta, and will go on sale in 2014. Both cars will be priced at less than IR100 million ($8,800),considered a low price point in Indonesia.

With the launch of the two models, the Datsun brand aims to account for up to 50% of Nissan’s Indonesian sales in 2016.

Renault, meanwhile, signs a new partnership agreement with Indonesian assembler and distributor Indomobil Sukses International.

Indomobil Group, one of two largest automotive companies in Indonesia, has been the importer for Renault in Indonesia since 2001. The company is involved through its sister companies or joint ventures in production or assembly of Chery, Nissan, Suzuki and Volkswagen vehicles, and distributes other brands as well.

Indomobil has been Nissan’s partner in Indonesia since 1981, helping the auto maker attain a 6% market share with 67,000 sales in the country last year.

Renault first will introduce the Duster cross/utility vehicle, to be assembled locally by Indomobil. The Koleos SUV and sporty Megane R.S. hatchback version of the R.S. will follow as completely built-up imports.

At the same time, Indomobil will be building up a Renault dealer network, aiming for 45 showrooms by 2016, with more to follow.

“Starting in 2015, Renault will launch tailor-made products for localized assembly that will cover the heart of the Indonesian market,” the auto maker says in a statement.

Nissan has a long manufacturing history in Indonesia. Its original Datsun cars were assembled by Indokaya beginning in 1969. Another company called Ismac took over assembly in 1983, joining the Indomobil Group in 1987.

Nissan bought 35% of Ismac’s shares in 1996, which resulted in the name change to Ismac Nissan. The Japanese auto maker increased its share to 75% in 2001 and changed the name to Nissan Motor Indonesia.

Nissan builds the March, Livina, Livina X-Gear, Grand Livina, Evalia, Serena, Juke and X-Trail models in the country. Annual capacity at the Purwakarta plant is 90,000 units, which is expected to grow to 250,000 by 2016.

Renault vehicles first were assembled in Indonesia by Gaya Motor from the mid-1970s through the early 1990s.