Honda Prospect Motor

PT Honda Prospect Motor (also called HPM) is a subsidiary of Honda automobiles for production, marketing and export of passenger cars in Indonesia. Based in Jakarta, it is a joint-venture company between Honda Motor Co., Ltd. (51%) and PT Prospect Motor (49%).[1] Established on 15 February 1999, HPM replaced PT Imora Motor as the sole distributor of Honda cars in Indonesia.

Honda Brio
Honda Mobilio
Honda BR-V
Honda Jazz
Honda Civic hatchback
Honda CR-V
PT Honda Prospect Motor
Subsidiary
IndustryAutomotive
Predecessor
  • PT Imora Motor
  • PT Prospect Motor
Founded1999
HeadquartersJakarta, Indonesia
Area served
Indonesia
Key people
ProductsAutomobiles
Production output
 133,247 units (2019)
156,621 units (2018)
OwnerHonda Motor Co., Ltd. (51%)
PT Prospect Motor (49%)
Number of employees
6,900 (2014)
ParentHonda
Websitewww.honda-indonesia.com

History

Honda cars have been sold in Indonesia since 1968 through Prospect's affiliated sales company, PT Imora Motor. In 1975, Prospect began local consignment production of Honda automobiles, responding to Indonesian government policy to encourage local automobile production. Honda vehicle sales in 1997 totaled 6,872 units (up 7% over 1996) but declined by 83% in 1998, to 1,182 units, mainly due to the economic crisis that hit the Southeast Asian region.

In 1999, Honda Motor Co., Ltd. decided to establish a new joint venture company, PT Honda Prospect Motor (HPM), as of 15 February 1999. HPM integrated Honda's Indonesian automobile businesses, which was previously conducted by four separate companies ranging across vehicle assembly, engine and component manufacturing, and wholesale distribution. HPM was capitalized at US$70 million, with 51% was initially held by Honda's partner PT Prospect Motor and 49% by Honda Motor Co., Ltd.[2]

Facilities

HPM began local automobile production in 2003 after the establishment of its first manufacturing plant in Karawang, with Honda Stream as the first car produced. Its development was supported with Rp 700 billion investment. Initial annual capacity was set to reach 40,000 by 2004.[3] The 100,000th car produced by the Karawang Plant rolled off the production line on January 29, 2007. HPM started exporting Honda Freed to Thailand and Malaysia from 2010[4] to 2014, and later Honda Brio to the Philippines and Vietnam from 2019.[5]

To serve the increasing demand for Honda products in Indonesia, HPM opened a second manufacturing plant next to the existing plant on January 15, 2014 which increased its total annual production capacity from 80,000 units to 200,000 units.[6] The first model to produce was Honda Mobilio at 86% local content.[6] With total investment of Rp 3.1 trillion, the second factory has total building area of 145,760 m2 with main production line facilities including welding area, engine assembly, frame assembly, and painting area.[6] The factory also supported with including material supply area, stamping, plastic injection, plastic painting and vehicle quality.

On 27 February 2017, HPM celebrated one million automobile production milestone.[7]

Models

Manufactured locally

Discontinued

Imported

Discontinued

References
  1. "Honda Prospect Motor Company Profile". Honda Prospect Motor. Retrieved 1 July 2019.
  2. "Honda to form New Automobile Joint Venture in Indonesia". Honda Global. Retrieved 1 July 2019.
  3. "Honda Global | September 25, 2003 Honda Begins Production of Automatic Transmissions at New Plant in Indonesia". global.honda. Retrieved 27 April 2020.
  4. "The Honda Freed - a CBU MPV from Indonesia". Paul Tan's Automotive News. 4 April 2010. Retrieved 27 April 2020.
  5. Deha, Daniel (26 March 2019). "Honda Motor Targets Exports US$1.8B from Indonesia in 2021". The Insiders Stories. Retrieved 27 April 2020.
  6. "Honda Global | 15 January 2014 Honda Prospect Motor Opens Second Factory in Indonesia". global.honda. Retrieved 27 April 2020.
  7. "Honda Celebrates One Million Automobile Production Milestone in Indonesia". Honda Global. Retrieved 1 July 2019.
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