Indonesia is a production base for a number of leading global automakers such as Toyota Motor Corp, Honda Motor Co and Suzuki Motor Corp.

Recent local Indonesia new namely Bisnis Indonesia said that Chinese automaker Chery Automobile is planning to set up a production base in Indonesia for its Chery QQ model aimed at the Southeast Asian market

Bisnis Indonesia said Chery had asked Indonesia’s second-largest auto distributor, PT Indomobil Sukses Internasional Tbk, if it could produce the model.

Indomobil, a distributor for a number of global brands, distributes the Chery QQ in Indonesia, Southeast Asia’s biggest economy. The company recently lost the distribution rights for Mazda Motor Corp.

Although sales of new vehicles in Indonesia hit a record high of 533,910 last year, the sector has been hit this year by soaring inflation and high interest rates.

New auto sales dropped in the first eight months of this year nearly 50 percent from a year earlier.

(Source:Reuters)

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