INTERVIEW-GM Indonesia sees minimum five-fold growth in 3 yrs

Tue Sep 13, 2011 10:59am BST

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By Janeman Latul and Chang-Ran Kim

JAKARTA Sep 13 (Reuters) - General Motors Co (GM.N) expects at least five-fold growth in its sales in Indonesia by 2014 when its reinstated factory will be producing at its full capacity of 40,000 vehicles annually, the head of its local operations said on Tuesday.

The U.S. auto giant announced last month that it would reactivate its factory in West Java, Indonesia, to build a "people mover" van for Southeast Asia from 2013 and raise its position in the fast-growing car market dominated by Japanese brands. [ID:nN1E77B0AR]

"We are definitely going to go from a small sales and marketing company to a design-and-build-where-you-sell company that has sales in the (tens of thousands a year)," GM Indonesia President Director Marcos Purty told Reuters in an interview.

Purty said the majority of the vans produced at its reactivated Bekasi factory would be sold in Indonesia, where sales jumped 58 percent last year. GM closed the plant in 2005 as it struggled to boost sales and its financial resources dwindled.

Last year, GM's sales in Indonesia, limited to the Chevrolet brand, rose 72 percent, but remain a paltry 4,500, giving it less than 1 percent of the market.

Purty said he did not have a specific sales volume or market share in mind as GM prepares to launch a vehicle in the popular multipurpose vehicle (MPV) market. But he acknowledged that with at least half the output bound for the local market and more models, including a truck, to be introduced over the next year, sales should reach at least 25,000 by 2014.

The No.1 U.S. automaker's $150 million investment comes at a time when competition is expected to heat up. Rival automakers are also planning capacity expansions to meet a steady and rapid growth in the country's demand for cars.

Toyota, which controls 38 percent of the Indonesian market, on Tuesday announced a 2.9 trillion rupiah ($337 million) investment to build its second factory. [ID:nL3E7KD0N2]

($1 = 8,600 Indonesian rupiah)

(Editing by Matt Driskill)

((ran.kim@thomsonreuters.com)(+81-3-6441-1804)(Reuters Messaging: ran.kim.reuters.com@reuters.net)) Keywords: GM/INDONESIA

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