Category: Companies / September 17, 2013 2:05 PM EDT
Japanese car maker Nissan Motor Co Ltd launched two new models of low-cost green cars on Tuesday (September 17) saying it considers Indonesia as a key growth market.
"Indonesia is a wealthy country, is very populated country. Today you have about 50 cars to 1,000 residents while in every European country you have 500 cars per 1,000 inhabitants. There is no doubt for us that the trend is up," said Carlos Ghosn, chief executive of Nissan Motor after unveiling the Datsun Go and Go Plus.
The locally-developed vehicles will go on sale in Indonesia in May 2014 at a price of less than a hundred million rupiah (8,800 U.S. dollars).
The company also said it planned to increase production capacity in Indonesia to 250,000 cars by 2016, almost triple its capacity in 2013.
"Today we have six percent market share. Our target is to reach 15 percent market share in Indonesia by the end of 2016," Ghosn said.
Indonesia's government has begun promoting fuel-efficient cars to offset an increase in fuel prices.
But there are fears that an influx of cars will add to the capital's notorious traffic jams.
Japan's second-largest automaker by sales plans similar low-cost cars for India, Russia and Brazil with its revived Datsun brand.
Video Credit: Reuters