Nissan opens second plant in Indonesia, launches Datsun Go+ Panca

Nissan has inaugurated its all-new manufacturing facility in Indonesia and also launched the Go+ Panca MPV today.

The second plant in Purwakarta, Indonesia, represents an investment of 33 billion yen (Rs 1,914 crore) and is part of the company's market expansion plan stated in its six-year mid-term business plan, Nissan Power 88.

The new 60,000 square metre facility includes body assembly, paint, trim and chassis operations will be dedicated to the production of Datsun cars for Indonesia. With the expansion, Nissan increases its production capacity in the country from 100,000 units per annum to 250,000 units at full ramp-up. The new plant will generate up to an additional 3,000 jobs in the region.

The Datsun Go hatchback, which has gone on sale in India, will become the second product in the brand's Indonesian range from 2014, with specific tailoring for the needs of Indonesian customers.

Indonesia is a key strategic market for Nissan's global business objectives. The carmaker expects to sell more than 90,000 units there in 2014 and plans to increase the number of sales outlets from 100 to 130 during the year.

At the inauguration of the new plant, Nissan Motor Indonesia also announced its participation in the Low Cost Green Car (LCGC) program. Following the requirements of the initiative, the official name of the Datsun brand will be Datsun Nusantara, with Datsun Go+ Panca as the new model's official name.

The word ‘Panca’ is derived from the global naming of the Datsun Go – Go can be translated as ‘five’ in Japanese and Panca which also means ‘five’ in Bahasa Indonesia. The ‘+’ is reflective of the extra space in the third row for either passengers or luggage which allows the 5+2 MPV to accommodate two extra occupants.

The Go+ Panca, which is priced from 85 million IDR (Rs 442,502) to 103 million IDR (Rs 536,197), is powered by a 1.2-litre 68bhp engine paired with a five-speed manual transmission. Datsun GO+ Panca initially goes on sale at 39 dealerships, and by the end of the fiscal year, will be available at 95 dealerships nationwide.

With LCGC licence approval, Nissan will enter the LCGC segment which is expected to be the growth engine for motorisation in Indonesia. The LCGC program initiated by the Indonesian government exempts luxury taxes on cars with engine capacity of up to 1200cc and with a minimum fuel consumption of 20km/litre. The tax exemption also applies to diesel or semi-diesel vehicles of up to 1500cc, also with minimum fuel consumption of 20km/litre. The current tax for new vehicles ranges from 10-75 percent, depending on engine size.

"We are extremely pleased to launch our second plant and announce our participation in the LCGC initiative today," said Toru Hasegawa, corporate vice-president, Nissan Motor Corporation and president director, PT. Nissan Motor Indonesia. “With more production capacity and the LCGC license, we are able to further enhance our offerings to our Indonesian customers.”

“Today we celebrate the launch of the Datsun Go+ Panca in Indonesia. Datsun is a brand with a special place in the hearts of Indonesia's car enthusiasts. Many Datsun owners' clubs have remained active since their heyday of the 1970s," said Vincent Cobee, global head of Datsun. “We look forward to welcoming those passionate Datsun owners alongside a new generation of drivers looking for a durable family car that incorporates what you would expect from Datsun – engaging driving and worry-free ownership experience, competitive total cost, accessible services with transparent pricing and dealership proximity."