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Monday July 16, 11:06 AM

Nissan to boost minivan output in Indonesia

JAKARTA, July 16 (Reuters) - Nissan Motor Co. plans to boost the output of its Grand Livina minivan to 2,500 units a month in Indonesia by the end of 2007 from 1,000 units in June, to meet strong demand, an official said on Monday.

Teddy Irawan, deputy director for sales and promotion at Nissan Motor Indonesia, also said that the company was planning to introduce a short-wheelbase version of the model in 2007.

"In July we started the second shift of our operation. We can produce between 1,300-1,400 units of Grand Livina a month. In August the output would increase to 2,000 units, and we see opportunity to increase it further to 2,500 units (by year end)," Irawan told Reuters by telephone.

Currently customers who want to buy the model, which was introduced in April, will have to wait until March next year for the car to be delivered.

By cranking up production, Nissan aimed to cut the waiting time to November and then to two or three months.

Irawan said the increase in output did not require new investment, but if output was to be increased further there would need to be new investment.

"If we are planning to produce more than 50,000 units per year, then we should definitely make new investment," he said.

Nissan sold about 4,000 vehicles in 2006, down from more than 10,500 units in 2005. Irawan said the company aimed to sell 20,000 units in the calender year of 2007.

Automotive demand in the world's fourth most populous nation plunged by around 40 percent last year as the industry was hit by high interest rates and weak consumer spending due to high inflation.

Total industry sales are expected to top 400,000 units this year from around 318,904 units last year. Vehicle sales posted a historic high at 533,910 units in 2005.

 


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