Chery to increase production capacity at Handal factory
Kompas Otomotif, 29 Apr '26
Chery is preparing plans to expand production in Indonesia in response to increasing consumer demand and the potential launch of new models in the near future.
This has prompted the Chinese manufacturer to increase production capacity at its Handal Indonesia Motor (HIM) facility.
President Director of Chery Group Indonesia, Zeng Shuo, stated that the company's current production capacity at the Handal factory stands at 4,000 units per month. "Currently, our production capacity at Handal is 4,000," Zeng said in Wuhu, China, on April 28th, 2026.
Meanwhile, Deputy President Commissioner of Handal Indonesia Motor (HIM), Jongkie D Sugiarto, stated that said research firm had requested an increase in production.
He further added that the company is prepared to accommodate higher production requirements. However, the measures undertaken will not immediately involve the construction of new facilities.
According to Jongkie, the company will first optimise its existing production lines to minimise investment costs while maintaining flexibility amid uncertain market conditions.
"We will prepare multiple options. It is not feasible to undertake all measures at once, such as building a new factory, as this requires significant investment. There is also a need to prepare for potential market downturns, production declines, and the utilisation of existing facilities," Jongkie stated.
As part of this approach, HIM is considering increasing working hours through a shift system without adding new production lines. "To increase production, two shifts may be introduced. The production lines will remain unchanged, but both day and night shifts will be added. That is one example," he said.
In parallel, reports have emerged suggesting that a new Chery model may be produced at the Handal facility. However, no official confirmation has been provided regarding the model.
Through this optimisation strategy, production capacity is expected to increase gradually without requiring substantial capital investment, while also preparing for a potential rise in demand driven by the introduction of a new model.
