PT Astra Daihatsu Motor (ADM), an Indonesian subsidiary of Daihatsu Motor, held a groundbreaking ceremony for the new assembly plant in Karawang, West Java, Indonesia, marking the start of its construction.

The new plant (Plant Line 2) is being built in the area adjacent to the site of the first Karawang Assembly Plant (Plant Line 1) in West Java, and will replace the plant in Sunter which has been in operation for 27 years.

The Sunter plant produces the Multi Purpose Vehicles (MPV) and Sport Utility Vehicles (SUV), namely the Avanza, Xenia, Rush, and Terios. The new Karawang plant will be taking over the production of these models.

Also read: All-new 2022 Daihatsu Xenia debuts in Indonesia: First look at the next-gen Alza, priced from RM 56k to RM 71k

While Daihatsu did not reveal future product plans, it is implied that the biggest motivator for this move is to have a plant capable of producing electrified vehicles (xEV).

The new assembly plant is a result of a IDR 2.9 trillion (around RM 822 million) investment and will have a production capacity of 140,000 units per year. ADM aims to complete the construction by 2024 and begin operations in 2025.

As part of the effort to achieve carbon neutrality, the plant will utilise renewable energy with 3,600 solar panels installed on the roof for 2,100 kW of power, which is said to reduce carbon emission rates by up to 20 percent per year.

Also read: Daihatsu Indonesia invested RM 480 million in its plant to build the Rocky

“This groundbreaking ceremony is form our appreciation to the Indonesian government, Daihatsu partners, as well as our loyal customers. This milestone is important for us heading towards the future, and shows our commitment to extend our cooperation with Indonesia," said Yasushi Kyoda, President of ADM.