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Automobile
U.S.A.
March 15, 2012

Honda to Build New Automobile Production Plant in Indonesia

JAKARTA, Indonesia, March 15, 2012 - P.T. Honda Prospect Motor (HPM), Honda's automobile manufacturing and sales joint venture in Indonesia, today announced plans to build a new automobile production plant with annual production capacity of 120,000 units. The plant will be located within the property of the existing HPM plant in the Karawang Industrial Park in a suburb of Jakarta. Combined with the current capacity of 60,000 units, HPM’s total annual production capacity will be 180,000 units.

The new plant, an investment of approximately 3.1 trillion Indonesian rupiah (approximately 27 billion yen*), is scheduled to become operational in 2014, and initial employment will be approximately 2,000 associates. HPM is planning to produce small-sized vehicles such as the BRIO developed for Asian markets. Based on its vision for the continuing expansion of the small vehicle market in Indonesia and an increase in exports to ASEAN countries, Honda will further enhance its production capacity and product lineup in Indonesia.

Moreover, HPM will strengthen local product planning and development function, establish a highly efficient production system, and increase local content to approximately 80% from the current level of approximately 50%. Through these efforts, HPM will provide high-quality products to its customers with speed and affordability.

HPM will begin importing BRIO from Thailand before the end of 2012, and then begin local production of an Indonesian version of the model at the existing plant before the end of 2013. HPM is planning to transfer production of BRIO to the new plant when it becomes operational in 2014.

*
Calculated with the exchange rate of 1 Indonesian rupiah = 0.0088 yen

Statement by Hiroshi Kobayashi / Managing Officer and Chief Operating Officer for Regional Operations (Asia & Oceania) of Honda Motor Co., Ltd. :
“Our operations in Indonesia will take the next step to become more autonomous and play an even more important role for Honda in this region. Honda will not only build automobiles in Indonesia to meet the needs of customers here. Indonesia will serve as a key export base for Honda – for both completed vehicles and components. At Honda, our corporate goal is to be a company that society wants to exist. In this spirit, we believe that our efforts to expand our business in Indonesia also will benefit the local community.”

About P.T. Honda Prospect Motor

Established: March 1999
Capital Investment: US$ 70 million
Capitalization Ratio: 51% Honda Motor Co., Ltd.
49% P.T. Prospect Motor
Representative: Tomoki Uchida
Location: Head office: Jakarta, Indonesia
Production Plant: Karawang
Business: Production and sales of automobiles
Products: Jazz, CR-V, Freed
Production Capacity: 60,000 units annually
Employment: Approx. 3,600 associates

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