News Releases 2012

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Indonesia
June 4, 2012

Honda Begins Construction of New Auto Plant in Indonesia

JAKARTA, Indonesia, June 4, 2012 - P.T. Honda Prospect Motor (HPM), Honda’s automobile manufacturing and sales joint venture in Indonesia, today held a groundbreaking ceremony to mark the start of the construction of its new automobile production plant in Karawang Industrial Park in a suburb of Jakarta. The ceremony was attended by high ranking official from the Ministry of Industry of Indonesia, as well as Takanobu Ito, Honda Motor Co., Ltd. president & CEO.

Honda Begins Construction of New Auto Plant in Indonesiazoom

With annual production capacity of 120,000 units, the new auto plant is scheduled to begin production in 2014 in order to continue meeting demands in the rapidly growing automobile market in Indonesia. In addition to BRIO, which was developed especially for Asian markets, HPM is planning to produce a new MPV (Multi-Purpose Vehicle) model at the new plant. Designed based on BRIO, the new model will enhance the Honda lineup of MPV models which account for the majority of passenger vehicle sales in Indonesia.

The new plant, an investment of approximately 3.1 trillion Indonesian rupiah (approximately 27 billion yen*), will employ approximately 2,000 associates at the start of production. Combined with the current capacity of 60,000 units, HPM’s annual production capacity will total 180,000 units.

Moreover, HPM will strengthen the local product 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 is planning to begin sales of BRIO before the end of 2012 by importing the model from Thailand. HPM will then begin local production of an Indonesian version of the model at the existing plant before the end of 2013, with BRIO production to be transferred to the new plant when it becomes operational in 2014.

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

Statement by Takanobu Ito/ President and CEO of Honda Motor Co., Ltd. :

“Indonesia became the largest automobile market among ASEAN countries last year. We believe this new factory will contribute positively to the general industry and economy in Indonesia, while creating new working opportunities for people here. Concurrent with the launching of BRIO and other new products, we will continue the effort to maximize the joy of our customers, with speed, affordability and low CO2 emissions.”

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 (end of May, 2012)

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