Citroën is continuing its international expansion strategy by focusing on Indonesia, a key market for its future development. Present since October 2022, the French brand has taken an important step towards local production with the announcement of the manufacture of the Citroën C3 electric car in Indonesia. This decision was made official during the GIIAS 2024 event, where Citroën exhibited its flagship models under the theme "#FromFranceforIndonesia".
Until now, the brand's models sold in Indonesia have been imported from India, and this practice will continue for the thermal versions. However, the local production of electric vehicles marks a new decisive step in the development of Citroën in Indonesia.
Speaking at the GIIAS 2024 press conference, Tan Kim Piauw, CEO of PT Indomobil National Distributor, said: "We are proud to have achieved so much in the two years since the announcement of Citroën's return to Indonesia, and on this occasion we have achieved one of Citroën's strategic steps to start domestic production of the Citroën ë-C3, as a first step to work in the Indonesian electric vehicle market and create zero-emission mobility". Production of the Citroën ë-C3 will start in August 2024 at the PT Nasional Assemblers plant in Purwakarta, thanks to an investment of Rp 381 billion (€21.6 million). This ambitious project is expected to create many local jobs and strengthen Indonesia's automotive industry, with a local content target (TKDN) of 40% to benefit from tax incentives.
A strategic step for Citroën and the Indonesian automotive industry
Indonesia is a strategic market for Citroën and the announcement of the local production of the Citroën ë-C3 is part of the brand's desire to support government initiatives in the field of electric vehicles. Citroën was the first brand to receive official approval from the Investment Coordination Board (BKPM) to participate in the Battery Electric Vehicle programme, allowing the import of electric cars with government incentives during the transition period. This information was also announced exclusively on Passionnément Citroën on 28 May.
Highlighting the importance of this market, Daniel Gonzalez, COO ASEAN & General Distributors of Stellantis, said: "Signing an agreement for the local production of the Citroën ë-c3 naturally demonstrates Citroën's long-term commitment to supporting government programmes in the transition to the electrification era in Indonesia. "Citroën plans to produce 6,000 units per year at the Purwakarta plant, with capacity to expand in the event of increased demand. At the same time, Citroën will continue to import the C3 from India to meet market demand while local production ramps up.
Citroën's local manufacturing initiative is not limited to vehicle production. The brand is also investing in the construction of a spare parts centre in Purwakarta to ensure parts availability and quality after-sales service. In addition, specialised technicians are being trained at each dealership to meet customer requirements and ensure a high level of service.
This expansion of Citroën in Indonesia, marked by the local production of the C3, illustrates the brand's long-term commitment to the country. By combining innovation, investment and support for government policies, Citroën is demonstrating its ambition for the Indonesian market, where it intends to establish itself strongly and sustainably. The first sales figures are also interesting and I will tell you about them here in a few days.
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