Geely Plans to Establish Independent Factory, Here Are the Considerations

KatadataOTO – Currently, many manufacturers are selling electric cars in Indonesia. Some have even started local assembly.

As done by Geely in the country. They are collaborating with Handal Indonesia Motor (HIM).

The Chinese brand is also open to the possibility of establishing its own factory in Indonesia in the future.

“There is indeed a plan to have our own (production) facility,” said Constantinus Herlijoso, Sales & Channel Development Director of Geely Auto Indonesia in Gading Serpong, Tangerang some time ago.

Photo : Courtesy

However, he revealed that the plan to build a Geely factory in Indonesia is still just in the discussion phase.

Geely has not yet been able to decide on the timing for the construction of their production facility in the country.

“As of now, we have not received information on whether it will be realized in the near future or how,” Herlijoso continued.

He further explained that there are a number of considerations in establishing their own factory in the country.

Such as the readiness of the land they will use. Then, access to the location to facilitate operational processes.

Then, the production process for both electric and hybrid Geely cars is also a consideration. Because they also have to use Indonesian-made batteries.

“Some components must be local, then there are production processes that must be done locally. Both painting and body joining are all part of the consideration,” he emphasized.

Herlijoso confirmed that Geely is currently focused on strengthening its market. Then introducing many products to consumers.

Moreover, next year there are a number of new cars that will be brought to Indonesia. This will increase Geely's appeal in the eyes of the public.

So if many Geely cars are sold and sales volume increases significantly, it could encourage them to establish their own factory.

This is in line with Geely's long-term strategy to strengthen the domestic supply chain.

Handal Becomes Assembly Base for Chinese Cars

For your information, many Chinese electric car manufacturers do not yet have their own production facilities.

Photo : Geely

Most of them collaborate with HIM. As done by Chery, Jaecoo, Aletra, and Xpeng.

Indeed, the HIM factory in Purwakarta has a number of facilities. Such as a paint shop area, oven, and testing line.

So manufacturers do not need to invest too much to locally assemble their products.