Daimler Commercial Vehicles Indonesia (DCVI) announced that it is starting the construction phase of its newest factory in the Cikarang area, West Java together with Daimler Commercial Vehicles Manufacturing Indonesia (DCVMI).

This was marked by the ground-breaking activity carried out by DCVI and DCVMI which also symbolised Daimler Truck AG's investment commitment to the truck and bus business in the Indonesian automotive market.

Andreas Deuschle as Head of International Sales and Customer Services-Daimler Truck Asia said that in building this latest factory, the company had disbursed investment funds worth IDR 500 billion (US$ 32 million).

"The Board of Directors of Daimler Truck AG approved the construction of this new factory with an investment of IDR 500 billion as a form of their commitment," he said in an official statement received on 19th February, 2024.

In the future, this 146,000 square metre factory will become a new production and assembly facility for Mercedes-Benz trucks and buses in Indonesia, which previously used factory facilities in the Wanaherang area, West Java, which only has an area of ​​560,000 square metre.

Not just a production facility, this newest factory will also be equipped with an assembly plant, test track, management office, vehicle preparation centre and various necessary employee facilities.

Naeem Hassim, President Director of DCVI said that "this new factory will support the local ecosystem and will gradually increase the local content in every Mercedes-Benz truck and bus product produced from the factory."

He explained that "since the Mercedes-Benz Axor Euro 4 truck was officially launched in June 2022 some time ago, DCVI has gradually assembled this unit locally until now it has 7 (seven) models."

"The Mercedes-Benz Axor Euro 4 is one of the superior products from our assembly plant in Indonesia. The various Axor Euro 4 models offer durable and reliable trucks, which are built to Euro 4 emission standards," he further explained.

The new production and assembly facility for Mercedes-Benz trucks and buses in Indonesia will be built throughout 2024 and is expected to be fully operational in the first quarter of 2025.