- The 22nd Indonesian International Motor Show (IIMS) was held between September 18th and 28th, at the Jakarta International Expo. While last year’s event focused on vehicles that comply with Indonesia’s Low Cost Green Car program (LCGC), this year, the emphasis was on volume-selling MPV and SUV models. While the market strategy of Honda, that produces its core products locally, and Toyota among others that relies on importation are different, it was obvious that all carmakers put an emphasis on MPVs and SUVs.

- According to Inovev’s local partner, the vehicle that attracted the most attention was Honda’s HR-V. Honda’s core product, is intended to go into local production and will be launched within the year. Other Japanese carmakers exhibited imported models only, Toyota’s Rav4, Mitsubishi’s Delica and Nissan’s X-Trail took center stage at each carmaker’s booth. While all three models currently imported, may switch to local production it is likely to depend on future sales and market development.

- As a core market of MPV’s, production of the Toyota Innova MPV is scheduled to take place in Indonesia, scheduled to start production in the last quarter of 2015. Meanwhile, Mitsubishi announced a plan to start operations of a new plant in the first half of 2017 with an annual production capacity of 160 000 units. The facility is intended to be used to manufacture a newly-developed small MPV. It is believed that the small MPV will be based on the Mirage a small sized vehicle.

- Kia announced a plan to set up a plant in the ASEAN with an annual production of over 200 000 units. If Kia establishes the production of the Morning (another small vehicle) in Indonesia, and sets it at a price that can compete with LCGC models it may be able to penetrate the market.

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