Chery Plans to Build Standalone Plant, Not Abandoning Handal

KatadataOTO – Chery has been selling cars in the country for several years. The Chinese manufacturer has partnered with Handal Indonesia Motor (HIM) to assemble their products.

Several models are made at the production facility in Pondok Ungu, Bekasi, West Java. For example, the Chery E5, Chery Tiggo 8, and J6.

However, the Chinese manufacturer recently expressed its intention to build its own factory in the country.

The decision has raised many questions from various parties. Including about their collaboration with Handal.

Photo : KatadataOTO

Chery Sales Indonesia (CSI) has spoken out about the collaboration with HIM after having its own production facility.

“We will see how it goes in the future. Because we cannot just stop (the collaboration with Handal) immediately,” said Zeng Shuo, President Director of Chery Group in Jakarta some time ago.

The Chery executive stated that they would gradually evaluate the collaboration with Handal.

Because many things must be considered first. Such as the production capacity of Chery's own factory once it is operational.

Whether it will be capable of producing all the models sold by Chery or not. Therefore, the collaboration with Handal cannot just stop.

“We will continue to be with Handal. We will likely do it in parallel,” concluded Zeng Shuo.

On the other hand, Handal also spoke out about Chery's plan to have its own facility in the country.

They welcomed the construction of the Chery factory. Because the collaboration between the two parties can continue in the future.

“Yes, it's okay, we can continue to cooperate with a win-win concept,” said Jongkie Sugiarto, Chairman I of Gaikindo to KatadataOTO, on Thursday (06/11).

Jongkie explained that their collaboration and Chery's intention to build its own factory could bring positive effects.

Such as creating many job opportunities. Thus being able to reduce the unemployment rate in the country.

“In addition, it can make the best use of the domestic component level (TKDN),” concluded Jongkie.

Photo : Chery

For your information, Chery has not been able to provide detailed information about the plan. Including the location and the funds that will be disbursed.

Nevertheless, the Chinese manufacturer stated that the plan to establish Chery's own factory is still being finalized.

It could be that Handal is willing to release part of their factory to Chery. Considering that the car production of the manufacturer from the Land of the Bamboo Curtain is centered in Pondok Ungu.

Then Handal also already has a new and larger factory in Purwakarta. So it is not impossible that Chery will utilize the existing facilities.