Japanese suppliers in Indonesia: New entries and capacity enhancements

Activities of Aisin Seiki, IJT Technology, Keihin, Seiren, G-Tekt, TPR, Press Kogyo, and others

2014/06/30

Summary

Indonesia
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 This report summarizes activities of Japanese automotive parts suppliers in Indonesia in the seven months to late May 2014. The automobile sales volume in Indonesia continued to expand by 9.3% year-over-year (y/y) to 435,000 units during the period of January to April 2014, following a large increase of 10.2% y/y to 1.23 million units in 2013. In this country, major automakers like Toyota, Nissan, Honda, and Daihatsu continue to enhance their production capacities, to launch strategic vehicles designed for emerging countries, and to build engine plants (for details, please refer to this report).

 Japanese parts suppliers have followed the OEMs and have been starting new operations and expanding their production capacities. These suppliers' moves are to satisfy automakers' demand for local production, promoting weight reduction and energy saving, and reduce production costs of vehicles.

 In order to further strengthen operations in Indonesia, some suppliers are also restructuring their manufacturing and sales bases, establishing sales subsidiaries, and positioning Indonesia as export hubs. Activities in Vietnam, Malaysia, Laos, and Myanmar will be posted shortly in a separate report.

Activities of Japanese suppliers in Indonesia

New entries Supporting automakers' demand for local production and plans to increase production:
Ibara Seiki (cold forged products), Okajima Pipe (precision electric-resistance-welded tubes with small diameter and thin wall), Katsuyama Finetech (seat belt parts), Suminoe Textile (floor mats), Seiren (seat fabric), Chiyoda Kogyo (seat parts), Nishikawa Rubber (rubber and plastic products), Piolax (resin molded and metal parts), Fuji Oozx (engine valves), Press Kogyo (frame parts for trucks), Marugo Rubber (special hoses for trucks)
Enhancement of production capacities, production of new items, etc. Construction of new plants and buildings:
Aisan Industry (engine parts), Aisin Seiki Group (body, engine, and brake parts), Central Motor Wheel (aluminum wheels for next-generation IMVs), Hitachi Chemical (powdered metal products), Yutaka Giken (exhaust parts)
Supporting weight reduction and energy saving:
Keihin (ECUs), G-Tekt (CVT parts), DaikyoNishikawa (plastic engine parts)
Introduction of low-cost production lines:
Taiho Kogyo (highly-efficient engine bearing machining line; for models designed for emerging countries), Fine Sinter (new small-scale, highly-efficient shock absorber production line; to support Toyota's TNGA)
Enhancement and restructuring of operations JVC Kenwood (restructuring of manufacturing and sales bases to strengthen car electronics business), Imasen Electric Industrial (establishment of sales subsidiary for mechanical and electrical products)

Sources: Press releases by each company


Related Japanese Supplier Reports:
* the US (Apr. 2014)
* China (part 2): Northern, Northeastern & Southern regions (Mar. 2014),
  China (part 1): Eastern and Central China (Mar. 2014)
* Latin America (Part 2): Trends in Brazil and Mexico (Mar. 2014), Latin America (part 1): New plants in Mexico (Mar. 2014)
* Thailand (Part 1) (Jan. 2014), Thailand (Part 2) (Jan. 2014), ASEAN (Nov. 2013)
* Russia and Eastern Europe(Oct. 2013), India (Sep. 2013)