Jakarta, Indonesia – In a significant move that marks a new chapter in the global expansion of Chinese automaker SkYWORTH Automobile, the company has signed a strategic Memorandum of Understanding (MOU) with Indonesia’s Djarum Group subsidiary, Polytron. The agreement, signed on August 27 in Jakarta, is poised to accelerate the production and localization of SkYWORTH vehicles in the Indonesian market.
Milestone Agreement
The MOU, described as a milestone in the collaboration between SkYWORTH and Polytron, outlines a comprehensive plan that includes the establishment of a Knocked Down (KD) assembly plant, joint product development, and localization of hardware and software. The partners aim to achieve a production target of nearly 10,000 SkYWORTH vehicles within three years.
Efficient Supply Chain and Local Production
The KD factory, which will be set up in Indonesia, is designed to enhance the efficiency of the supply chain and reduce production costs through local assembly. This approach is expected to shorten the delivery cycle of vehicles, making them more competitive in the Indonesian market. By focusing on local production, SkYWORTH and Polytron aim to tailor their offerings to meet the specific needs and preferences of Indonesian consumers.
Joint Product Development
The collaboration also extends to joint product development, with a focus on creating new energy vehicles that cater to the Indonesian market’s demands. The partners will explore the localization of hardware and software to ensure that the vehicles are well-suited to the local usage patterns and requirements.
Expansion into the Middle East
SkYWORTH’s strategic vision is not limited to Indonesia. The company has also set its sights on the Middle East, having signed a strategic cooperation agreement worth 10 billion yuan with the Saudi royal family’s KAG Group earlier this year. The agreement, which is divided into two phases, has an initial five-year business plan worth 10 billion yuan, with the second phase to be determined based on the outcomes of the first.
GlobalKD Factory Network
SkYWORTH Automobile has indicated its commitment to expanding its global footprint by establishing KD factories in key regions worldwide. The company aims to partner with local governments to operate these factories, with the Middle East being one of the primary regions for KD factory construction.
IT Home’s Coverage
The news was first reported by IT Home, a leading tech portal, which received a tip from a reader identified as HH_KK. IT Home highlighted that the partnership between SkYWORTH and Polytron is a significant step towards the localization of the automotive industry in Indonesia.
Conclusion
The strategic cooperation agreement between SkYWORTH Automobile and Polytron marks a pivotal moment in the company’s journey to becoming a global player in the automotive industry. By focusing on local production, joint product development, and localization, SkYWORTH is positioning itself to meet the unique needs of various markets, including Indonesia and the Middle East. As the company continues to expand its global network of KD factories, it is well on its way to becoming a major player in the international automotive scene.
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