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Citroën to produce electric cars in Indonesia

Two electric Citroën C3s in a factory in Indonesia

I announced to you at the end of October 2023 that Citroën is on track to produce 100% electric cars on Indonesian soil, in addition to the factory installed in India, which will be dedicated exclusively to the Indonesian market.

We know that India is a strategic market for Citroën because it is huge and will be one of the largest in the world in a few years' time. Having a factory in India also makes it possible to export models to the South-East Asian region without paying customs duties, thanks to the ASEAN agreement, allowing the brand to manufacture in India and export its cars in the region as far as South Africa and, in particular, Indonesia, another market where Citroën wants to establish itself in the long term.

Indonesia wants to develop electric cars and is committed to offering financial incentives such as the bonus in France to encourage the purchase of this type of engine. However, Indonesia intends to impose a strict condition on these incentives, namely that cars qualifying for them must be assembled in Indonesia and not imported. In order to benefit from these incentives and to increase production volumes, manufacturers such as Citroën, which can rely on the facilities of its importer, Indomobil. Indomobil. Indomobil has two factories in Indonesia, in Pulogadung and Purwakarta, and it is in the latter that Citroën intends to produce its 100% electric cars, which it will market in Indonesia. During a meeting with journalists, the head of Citroën Indonesia, Tan Kim Piauw, said: "If we want to receive incentives for electric cars, we have to commit to building a factory in Indonesia. At the same time, we are aiming for our factory to be operational this year", stressing that the Purwakarta factory would start operating in 2023 before ramping up in 2024 with cars intended only for the Indonesian market to start, without excluding a probable export to neighbouring countries later.

For the time being, the Citroën C3 is imported directly from India and the C4 from Europe. This new production line, inaugurated in an Indomobil factory that also produces Volkswagen, will primarily be used to produce the C3 and, probably in the future, the 100% electric versions of the C3 Aircross, if they are marketed in Indonesia. Nevertheless, this new production line underlines Citroën's desire to establish itself in Indonesia in a sustainable and long-term way by providing the means to meet the conditions imposed by the government for electric cars. The thermal versions will continue to be produced only in India, at the Stellantis plant in Tiruvallur.

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