Mitsubishi Fuso Truck and Bus Corporation (MFTBC), an integral part of Daimler Trucks, today announced that it has acquired equity positions in P.T. Krama Yudha Tiga Berlian Motors (KTB) and P.T. Mitsubishi Krama Yudha Motors and Manufacturing (MKM), two leading Indonesia truck and automotive companies. The transaction underlines MFTBC’s commitment to Indonesia, which is the company’s largest market after Japan. Mitsubishi Fuso is the number-one commercial vehicle brand in Indonesia, with over 50 percent market share. Over the past five years, MFTBC has sold over 175,000 units in Indonesia.
“Daimler Trucks sees strong, long term growth prospects in Asia as a whole, including in the key market Indonesia,” said Mr. Andreas Renschler, Daimler AG Board Member responsible for the Daimler Trucks Division. “This move will further strengthen Mitsubishi Fuso’s ability to build on its leading position in Indonesia while enhancing the business in all aspects.”
“MFTBC is very pleased to announce this important step forward in our Indonesia business,” said Mr. Harald Boelstler, MFTBC President and CEO. “For many years, we have successfully worked together with KTB and MKM in serving the Indonesia market. Share participation by MFTBC is the logical next stage in moving even closer to the market as we continue to bring the highest quality products and services to Indonesia commercial vehicle operators.”
KTB, headquartered in Jakarta, is the wholesale organization marketing Mitsubishi Fuso commercial trucks and Mitsubishi passenger cars in Indonesia. Established in 1970, the company today has about 630 employees.
MKM, also located in Jakarta, is a manufacturer producing parts and assembling components for Mitsubishi Fuso trucks and Mitsubishi passenger cars in Indonesia. Established in 1973, the company has about 780 employees.
Agreement Among Indonesia- and Japan-Based Companies
MFTBC’s participation in KTB and MKM comes as the result of an agreement among P.T. Krama Yudha (KY) of Indonesia, Mitsubishi Corporation (MC), Mitsubishi Fuso Truck and Bus Corporation and Mitsubishi Motors Corporation (MMC). The agreement principally calls for MFTBC to acquire equity positions in KTB and MKM. At the same time, MMC will take a stake in KTB, while transferring its share of MKM to MFTBC. MFTBC’s shares will be 18% in KTB and 32.28% in MKM.
The new ownership structure of KTB and MKM is expected to bring strategic advantages to all involved parties, related to the Mitsubishi Fuso truck and Mitsubishi car business in Indonesia. The transaction based on this agreement has now closed.
Rising Sales and New Product in Indonesia
Due to improving market conditions and excellent response to new products, Mitsubishi Fuso sales in Indonesia are significantly increasing in 2007. Through the first three quarters of 2007, sales rose 48 percent to 21,679 units (Q1-Q3 2006 = 14,662 units). (Sales figures are based on MFTBC wholesales.)
In March of this year, Mitsubishi Fuso launched the new generation Canter light-duty truck in Indonesia. With the latest design features for safe, reliable and fuel-efficient operation, the new Canter introduces important vehicle innovations to Indonesia customers. It has been extremely well received in the market.
Overall, Mitsubishi Fuso’s product line for Indonesia includes light-duty trucks, heavy-duty trucks and light-duty bus chassis.