The Chinese mining industry vehicle manufacturer in Indonesia, First Automobile Works (FAW) Trucks, has set its sights on expanding into the province of South Sumatra.
In Indonesia, FAW Trucks is sold by its Brand Holder Agent (APM) PT Gaya Makmur Mobil (GMM) and is the only Chinese truck distributor that has been in Indonesia for the longest time without ever-changing brands.
GMM FAW Truck president director Frankie Makanimang, said that South Sumatra is the third region following Jambi and Riau in which FAW Trucks is sold during its 14 years of business in Indonesia.
This year, the company has set a target of supplying 150 truck units to cater to the industry’s demands in South Sumatra. These trucks include dump trucks, mixers, tractors, and truck chassis.
The company assured that all vehicle types will have a minimum power of 550 hp, meeting the specific requirements of the mining industry, while also maintaining fuel efficiency and low emission levels.
A key factor in the company’s decision to expand into South Sumatera
The company’s decision to open an office in Palembang City, South Sumatera, was based on the positive growth of the mining industry in the area. The province is also so rich in natural resources, earning it the title ‘food and energy barn’.
The South Sumatra Energy and Mineral Resources Agency noted that coal was one of the mining industry commodities which production increased by one million tons to 50 million tons compared to the previous year’s 49 million tons.
At the end of 2021, at least 196 Coal Mining Business Licenses (IUPs) were active across 13 regions (regencies and cities). Out of the 196 IUPs, as many as 129 IUPs had reached production status.
Furthermore, the company emphasized their shared commitment to fostering an environmentally friendly and sustainable industry, which was also a major factor in the company’s decision.
A look at FAW’s market share and dominance in the market
In its home country, FAW is trusted by the Chinese Government as one of the official state vehicle brands. With an annual production exceeding 3.5 million units, FAW holds the position of being the largest automotive company in China.
Moreover, it boasts a substantial truck market share of over 20 percent, solidifying its standing as the leading medium-heavy truck market leader in China.
In Indonesia, GMM has sold 4,000 units of FAW Trucks during its 14 years of operation in Indonesia. GMM introduced a diverse range of FAW Truck models that comply with the EURO-5 standard, surpassing the governmental EURO-4 standard and emission regulations, especially for OnRoad applications in the country.
South Sumatra is targeted to contribute to ten percent of FAW sales nationally. This optimistic outlook stems from the fact that FAW trucks are well-suited for both internal mining plantation operations and external road usage. The specifications of FAW trucks enable them to navigate all types of terrain, including on-road and off-road environments.
