Suzuki Ready to Develop New Models in Indonesia with Rp 5 Trillion Investment

KatadataOTO – Not long ago, Suzuki was confirmed to be injecting IDR 5 trillion for the development of its factory in Indonesia, focused on purchasing new equipment.

The hope is that this can help boost Suzuki's production figures, which were sluggish in 2024, dropping from 110,126 units in 2023 to 73,437 units throughout 2024.

Furthermore, Suzuki revealed that there will be prototype product development at the factory following the additional investment.

“Prototype one, prototype two, mass production prototype, will happen to be developed in one factory,” said Joshi Prasetya, Department Head of Strategic Planning at PT SIS (Suzuki Indomobil Sales) when met in Jakarta, Friday (14/03).

Photo : PT SIS

This includes the development of new products that will be marketed to Indonesian consumers. However, the company is still reluctant to disclose further details about the models.

He also could not yet confirm if the facility could accommodate local production of electric cars. Considering, next year Suzuki plans to introduce its first EV in Indonesia, the e Vitara.

“We'll see later, that includes electrification. Here, electrification means hybrid,” Joshi affirmed.

For your information, the IDR 5 trillion investment was disbursed to support production needs until next year.

The production facility upgrade is also intended to help Suzuki be more aggressive in domestic car sales.

Throughout 2024, data from Gaikindo (Association of Indonesian Automotive Industries) shows that PT SIS's production figures meant Suzuki contributed 7.9 percent of the country's car production.

Photo : PT SIS

Although the figures dropped drastically from 2023, there was a surge in August 2024 with 7,386 units. Meanwhile, the lowest figure was reached in April 2024 at 5,117 units.

Currently, Suzuki locally produces several models, including the Ertiga and XL7 Hybrid hybrid line. Thanks to the TKDN (Domestic Component Level) meeting the requirements, there are incentives to be enjoyed.

As a result, the price of locally assembled hybrid models from Suzuki has decreased, making them more competitive for consumers who want to use environmentally friendly vehicles.