SAIC-GM-Wuling JV begins construction of new Indonesian plant 21-Aug-2015 12:44 GMT News Investments Plant's vehicle assembly section is expected to be completed by late 2017 Three-way Chinese joint venture (JV) Shanghai Automotive Industry Corporation-General Motors-Wuling Automobile Company (SGMW) today (21 August) began construction of its new Indonesian plant, reports Dow Jones. The JV plans to produce mini-commercial vehicles and multi-purpose vehicles (MPV) at the new 600,000-square metre factory located in Bekasi. The plant's vehicle assembly section is expected to be completed by late 2017, followed by construction of a facility to manufacture automotive spare parts. SGMW Motor Indonesia vice-president Yuan Zhijun sounded a positive note, stating, "SGMW Motor Indonesia was established due to the potential and opportunities here. We are confident about our presence in Indonesia." Significance: SGMW had been considering expansion plans in Indonesia since 2007 and confirmed a potential JV partnership in late 2013. In February 2015, the JV confirmed an investment of USD700 million to build a new plant with an estimated annual production capacity of 150,000 units. The plant will be the first overseas facility for the company. The first vehicle expected to enter production at the facility is a new MPV model under the Wuling brand, as previously reported. IHS Automotive identifies this model as Wuling's 730 C-segment MPV, while we also expect the JV to produce the chassis-cab and van versions of its Sunshine minivan at the plant. Total expected output at the facility is predicted at 13,690 units in 2017, and this is forecast to climb to 27,406 units during 2018 when the JV begins local assembly of an all-new unnamed D-segment MPV based on the 730 MPV nameplate. The kits for these models will be supplied by the automaker's Liuzhou West and East plants in China. The JV's new Bekasi plant will mainly cater to demand in the local market, although it will also ship the models to neighbouring markets such as Malaysia, Thailand, and Vietnam in the Association of Southeast Asian Nations (ASEAN) region, according to our data. The information contained in this presentation is confidential. Any unauthorized use, disclosure, reproduction, or dissemination, in full or in part, in any media or by any means, without the prior written permission of IHS Markit or any of its affiliates ("IHS Markit") is strictly prohibited. IHS Markit owns all IHS Markit logos and trade names contained in this report that are subject to license. Opinions, statements, estimates, and projections in this report (including other media) are solely those of the individual author(s) at the time of writing and do not necessarily reflect the opinions of IHS Markit. Neither IHS Markit nor the author(s) has any obligation to update this report in the event that any content, opinion, statement, estimate, or projection (collectively, "information") changes or subsequently becomes inaccurate. IHS Markit makes no warranty, expressed or implied, as to the accuracy, completeness, or timeliness of any information in this report, and shall not in any way be liable to any recipient for any inaccuracies or omissions. Without limiting the foregoing, IHS Markit shall have no liability whatsoever to any recipient, whether in contract, in tort (including negligence), under warranty, under statute or otherwise, in respect of any loss or damage suffered by any recipient as a result of or in connection with any information provided, or any course of action determined, by it or any third party, whether or not based on any information provided. The inclusion of a link to an external website by IHS Markit should not be understood to be an endorsement of that website or the site's owners (or their products/services). IHS Markit is not responsible for either the content or output of external websites. Copyright © 2021, IHS Markit®. All rights reserved and all intellectual property rights are retained by IHS Markit..