Mercedes-Benz has started assembly of the M-Class SUV in Indonesia at the company’s Wanaherang, Bogor plant in West Java.
According to Jakarta Globe cited by Paultan, Daimler has spent between 20 to 30 million euros in the past two years to modernise this assembly plant.
Mercedes-Benz has strong growth potential in Indonesia, according to Claus Weidner, president director of Mercedes-Benz Indonesia. The German carmaker has introduced the ML 350 4MATIC in June, and now it has decided to assemble the M-Class series locally.
“The model is locally assembled which proves that Indonesia is a potential market for Mercedes-Benz. It also reflects the strength of Indonesian talents who are able to assemble with high precision and discipline. Our decision indicates that the investment climate in Indonesia is conducive to the growth of our business,” Claus Weidner said.
The ML 350 4MATIC that Mercedes-Benz assembles in Indonesia is the same variant of the third-generation W166 model that is currently being sold in Malaysia. The SUV is powered by a 3.5-liter V6 engine with 306 horsepower and 370 Nm of torque. In Malaysia, the car is priced at 570,888 Malaysian ringgit (roughly $186,625) due to high import duties, but production in Indonesia is expected to lower the prices as both countries are part of the ASEAN economic organization.