Chery Confirms Factory Construction in Indonesia This Year

KatadataOTO – In producing its model options, Chery Group no longer solely relies on PT Handal Indonesia Motor. They have now collaborated with Inchcape Indonesia to assemble the Jaecoo J5.

However, the Chinese manufacturer revealed it will not stop its plans to have its own factory. They are even optimistic about starting construction this year and the facility being operational by next year.

“For the factory in Indonesia, we will start the groundbreaking this year. So, the hope is that it can be completed and operational soon," affirmed Zheng Shuo, President Director of Chery Group Indonesia, on the sidelines of the Lepas Kelapa Gading dealer opening some time ago.

This factory will later produce all brands under the Chery Group. It is hoped that this will optimize sales and speed up unit availability.

Photo: Chery

“But this doesn't mean all units will be produced at that factory. Because there's a possibility that production needs will exceed capacity, thus still requiring cooperation with other companies,” he later said.

Unfortunately, he was reluctant to explain in detail when the factory construction would take place or its production capacity. Meanwhile, several companies have already completed their production facilities, such as Aion, Vinfast, and soon BYD.

It was previously reported that Chery was rumored to be planning to acquire the Handal Indonesia Motor factory. This would mean they would no longer need to build their own production facility in the country.

The news was even said to be beneficial for Chery. This is because they would not have to wait too long to start vehicle production.

Photo: Courtesy

Moreover, the number of Chery Group brands that have entered the country has been increasing and requires a large amount of stock. So it is understandable that this option could be an attractive one for the manufacturer.

This year alone, they will bring two new brands, namely Lepas and Icar, to the country. Both brands are believed to be assembled directly in the country using production facilities from other manufacturing companies.