Chery's Self-Owned Factory to Produce 100,000 Units Annually Starting in 2027

KatadataOTO – Chery Indonesia affirms its step to build an independent factory to increase its production capacity domestically.

Although it has not provided many details, Chery aims for its factory to be ready to produce several models for domestic needs.

"That is to cover all (products) of the Chery Group," said Budi Darmawan, Vice Country Director of PT Chery Sales Indonesia (CSI) in Semarang, Wednesday (28/01).

He revealed that the Chery factory is expected to start supporting unit production in 2027.

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The facility is said to complement the production capacity at the assembly facilities owned by PT Handal Indonesia Motor (HIM).

"If we look at this year, the figure (production capacity of the independent Chery factory) is around that (100 thousand units per year)," said Budi.

Furthermore, Budi said the Chery factory will be prioritized for domestic needs first.

However, it does not rule out the possibility that local assembly will be done to meet export market demand.

It should be noted that previously Chery has exported to Vietnam one of its Sport Utility Vehicles (SUV), the Omoda 5.

Speaking about the models to be produced, the Chery representative is still reluctant to say much. However, it is most likely products that are already locally assembled such as the Chery Tiggo Cross CSH, E5 and J6.

"We'll see later. Of course it won't immediately go to full capacity, we will proceed gradually. We'll see the conditions, future plans, and the volume will be adjusted accordingly," Budi emphasized.

For your information, Chery is currently still collaborating with PT Handal Indonesia Motor (HIM) to carry out vehicle assembly.

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The first assembly began in 2022. The first models that started local assembly are the Tiggo 7 Pro and the Tiggo 8 Pro.

This represents Chery's long-term commitment to invest in Indonesia. Those two locally assembled products were first sold at the Indonesia International Motor Show, or IIMS 2022.

As an initial stage, the spare parts for assembling Chery cars at PT HIM are still supplied from the Chery Automobile plant in its home country, China.