Mitsubishi Plans 7-Passenger MPV for Indonesia

Mitsubishi Motors Corp. plans to enter southeast Asia's multipurpose vehicle market in April 2017 with a seven-passenger model.

The new MPV will join the MMC Delica and compete with such entrenched vehicles as the Toyota Avanza, Daihatsu Xenia and Suzuki Ertiga.

MMC will build the model exclusively in a $500 million factory in Cikarang, Indonesia. MMC controls 51% of the joint venture set up to operate the plant. Mitsubishi Corp. holds a 40% stake, and Indonesian contract assembler PT Krama Yudha Tiga Berlian Motors owns the remaining 9%.

The new plant is expected to open with capacity to make 160,000 vehicles per year, then expand to 240,000 units sometime after 2025. Output will be sold locally and in 2018 also exported to Africa, the Middle East, the Philippines and Thailand.

MMC says the new plant will add production of the Pajero Sport SUV in August 2017 and add the L300 pickup truck in 2018.

The Cikarang facility is MMC's first assembly plant in Indonesia. The company also operates a huge factory in Thailand, which can build 450,000 vehicles per year.