Japanese truck maker Isuzu Motors Ltd plans to relocate a factory from Thailand to Indonesia and could start production as early as next year, Indonesia’s industry minister Agus Gumiwang Kartasasmita said on Wednesday (7/6).
Meanwhile, Isuzu in Thailand, which operates two assembly plants locally, did not immediately respond to a request for confirmation.
“We appreciate Isuzu’s decision,” Minister Agus said. “We will provide incentives and will support the relocation process.”
He hopes that Isuzu can enhance the utilization of domestic components in the assembly process. Agus also encourages Isuzu to expand its export market, particularly to Africa.
Isuzu’s presence in Thailand
Isuzu is best known for its D-Max pickup, which led the one-ton pickup market last year for the three consecutive years. The company first entered Thailand in 1966 and has two assembly plants: Samrong in Samut Prakan and Gateway in Chachoengsao Province.
No details were available on what aspects of Isuzu’s business in Thailand would be affected by a shift to Indonesia, or any potential job losses.
In December last year, the company stated its intention to introduce electric pickups and trucks in the Thai market, which is currently more focused on passenger electric vehicles (EVs).
Isuzu’s thriving operations in Indonesia
Isuzu already has a factory in Karawang, Indonesia. Niijima stated that Indonesia is a crucial country for Isuzu, both as a market and a production hub for their vehicles.
Its factory located in Karawang has a high utilization rate, reaching 85 percent. In 2022, the factory achieved a production volume of 44,694 units, representing 15 percent of Isuzu’s total global production.
Isuzu Indonesia successfully exported 8,254 units of Completely Built-Up (CBU) vehicles in 2022. The company aims to increase exports to 25 countries this year.
“Thus, Isuzu seeks the support of the Indonesian government to facilitate exports,” Niijima said.
