New Mitsubishi Distributor to Boost Sales Operations in Indonesia
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Mitsubishi Motors Corporation (MMC) and business partners Mitsubishi Corporation (MC), PT Krama Yudha (KY) and Mitsubishi FUSO Truck and Bus Corporation (MFTBC) reached a basic agreement on restructuring MMC-brand vehicle sales operations in Indonesia in order to strengthen their Indonesian operating base.
Under the basic agreement, the current distributor PT Krama Yudha Tiga Berlian Motors (KTB) will be split into MMC and MFTBC brands and a new distributor dedicated to the MMC brand will be set up. The new distributor will enhance MMC’s passenger car sales organization in Indonesia through promoting areas such as branding, sales personnel training, improving the quality of after-sales services and building up the dealer network. The new company is due to start sales operations in April 2017.
MMC, in partnership with MC and KY began automobile production and sales in 1970 and since then business has grown focusing mainly on commercial vehicle sales.
To meet further expected growth in the Indonesian passenger car market, MMC is preparing to commence production in April 2017 in a new factory at Mitsubishi Motors Krama Yudha Indonesia (MMKI). In October 2017, MMC also plans to start production of a new compact MPV segment model for which there is a large demand in Indonesia.
MMC will work to further expand profits in Indonesia through expanding its model lineup, moving its focus from small commercial vehicles to passenger vehicles, strengthening the sales aspect with the new MMC brand-focused distributor in addition to production through the new factory at MMKI and new product.
Questions & Answers
Q.What is the primary reason for restructuring Mitsubishi's sales operations in Indonesia?
What is the primary reason for restructuring Mitsubishi's sales operations in Indonesia?
The restructuring aims to strengthen Mitsubishi's Indonesian operating base. It will enhance the passenger car sales organisation and meet expected growth in the Indonesian passenger car market, shifting focus from commercial to passenger vehicles.
Q.Which current company will be split under the new agreement?
Which current company will be split under the new agreement?
The current distributor, PT Krama Yudha Tiga Berlian Motors (KTB), will be split. It will separate its operations for MMC-brand vehicles and MFTBC-brand vehicles, allowing a new distributor to focus solely on the MMC brand.
Q.When is Mitsubishi expected to begin producing vehicles at its new Indonesian factory?
When is Mitsubishi expected to begin producing vehicles at its new Indonesian factory?
Mitsubishi is preparing to commence production in April 2017 at its new factory at Mitsubishi Motors Krama Yudha Indonesia (MMKI). This initiative supports their focus on the growing passenger car market.
Q.What measures will the new MMC brand distributor implement to improve sales?
What measures will the new MMC brand distributor implement to improve sales?
The new distributor will enhance sales by promoting branding, providing sales personnel training, improving the quality of after-sales services, and expanding the dealer network. These steps aim to strengthen the passenger car market presence.
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