Gasgoo.com - SAIC Group and General Motors have officially decided to invest in a new joint venture factory for SAIC-GM-Wuling in Indonesia. SAIC Group¡¯s role in the joint venture¡¯s decision is very important, with the manufacturer holding a 45.9 percent role in the JV. The factory, which will be built on the outskirts of capital city Jakarta, is scheduled to officially begin operation in 2015. However, the project still needs official approval from the relevent government authorities before it can progress.
This current project will see SAIC-GM-Wuling providing technology, products and branding. Unlike its previous project in India, where its vehicles used the Chevrolet nameplate, vehicles produced and sold in Indonesia will be sold under the Wuling name. As such, this marks the first time the Chinese joint venture¡¯s name has surfaced on vehicles sold outside of its home country.
SAIC-GM-Wuling began looking into opening up the Indonesian market by as early as 2007. However, these plans were put on a hold as SAIC and GM first set their sights on the larger Indian market. India has over six times the population of Indonesia. Indonesia only has about 2 million vehicles. Although current GDP growth is only 5.02 percent, SAIC-GM-Wuling has been motivated by new Indonesian President Joko Widodo¡¯s new policies to stimulate the country¡¯s economy.
Worth pointing out is Indonesia¡¯s trade relationship with fellow ASEAN countries. Through the Indonesian factory, SAIC-GM-Wuling will be able to sell vehicles to countries like Thailand, Malaysia, Singapore and the Philippines in the future. Officials from SAIC-GM-Wuling have previously stated that they have been very welcomed when offering prospects to invest in the country. Currently, all sides are waiting for approval from the relevent government authorities.