Automotive - The Mazda assembly plant will be built in West Java

Automotive - The Mazda assembly plant will be built in West Java Eurokars Motor Indonesia (EMI), the sole agent brand holder (ATPM) and distributor of Mazda, announces its readiness to build its assembly center in Indonesia. This significant step is claimed to mark a new chapter in the partnership between Mazda Motor Corporation (MC) and PT EMI, which is expected to have a positive impact on the automotive industry and the Indonesian economy. (Source: Kontan) Comment : We like Mazda's plan to build its factory in Indonesia. Despitethe fact that it has not been announced which variant will be produced domestically, we believe Mazda sales volume is likely to strengthen on the back of a more affordable price tag due to the lower cost of production. We also expect Mazda sales to play an important role in competing with non-Japanese products. Additionally, we might also witness stronger landscape competition among non-Astra 4W brands. Maintain our overweight stance for the automotive sector and buy ASII with a SOTP TP of IDR7,350.