Regarding Local Vehicle Production, MG: The CKD Process Is More Than Just A Price Adjustment

MG4 EV was exhibited at the 2023 Periclindo Electric Vehicle Show. (Doc. MG Motor Indonesia)

JAKARTA - Morris Garage (MG) continues to make various efforts to bring the best mobility to consumers in the country. Not only that, but the British manufacturer also has a commitment to present a model that will be assembled in Indonesia.

Some time ago, MG Motor Indonesia announced it would start assembling its vehicles locally in 2024 and hoped this would be key in increasing sales in the Southeast Asian market.

With the assembly of gasoline-engined cars (ICE) to EVs in Indonesia, it opens up opportunities for them to lower prices thanks to tax leniency for local vehicle production. However, the company said that the initiative was not only a matter of price adjustments.

Arief Syarifudin, as Marketing & PR Director of MG Motor Indonesia, said that his party started the Completion Knock Down (CKD) production as a tangible manifestation of sustainable innovation and quality improvement.

"The CKD process allows us to increase the availability of spare parts, shorten the waiting time for repair and maintenance, and ensure more consistent vehicle quality, with standards that match local consumer needs," said Arief when contacted by VOI, Friday, November 10.

In addition, support from the government to establish local factories in Indonesia encourages the acceleration of the realization of the project. This is expected to accelerate the process of localizing electric vehicles (EVs) and other vehicles, as well as immediately meeting the requirements to get incentives from the government.

Arief hopes that the plan to localize the production can have a positive impact on the economy, the development of Human Resources (HR), and the overall growth of the automotive industry in Indonesia.

"We hope this step will strengthen consumer confidence in the MG brand and improve the experience of overall vehicle ownership," concluded Arief.