Japanese car maker Mitsubishi Motors Corp is investing $600 million in a new multi-purpose vehicle factory in Indonesia, aiming to have a production capacity of 240,000 per month.
Japan's Mitsubishi Motors already makes commercial vehicles in Indonesia. Now it's planning to make cars too. The Japanese auto maker is investing $600 million in a new factory which will make MPVs - multi-purpose vehicles or so-called people carriers. The company's chief executive, Osamu Masuko, says it's responding to strong demand. (SOUNDBITE) (English) CHIEF EXECUTIVE OF MITSUBISHI MOTORS CORP, OSAMU MASUKO SAYING: "The Indonesian market is very important for Mitsubishi Motors, and Indonesia has much potential in the future. That is why this time we have decided to invest and to expand production facility". The new factory will double the number of vehicles made by Mitsubishi in Indonesia. And it will make exporting to other Asian markets easier. (SOUNDBITE) (English) CHIEF EXECUTIVE OF MITSUBISHI MOTORS CORP, OSAMU MASUKO SAYING: "Our product capacity will be 160 thousands units per year. And in the future, we have chance to expand our production capacity 240 thousands units." More than half the 1.23 million cars sold in Indonesia last year were MPVs. Mitsubishi says it also expects to export around 20,000 of them each year to countries like Thailand, the Philippines and Vietnam. The factory, just outside Jakarta is due to open in 2017.