Honda Prospect Motor
|156,621 units (2018)|
Number of employees
PT Honda Prospect Motor (also called HPM) is a subsidiary of Honda automobiles for production, marketing and export of passenger cars in Indonesia. Based in Jakarta, it is a joint-venture company between Honda Motor Co, Ltd. (51%) and PT Prospect Motor (49%). Established on February 15, 1999, HPM replaced PT Imora Motor as the sole distributor of Honda cars in Indonesia.
Honda cars have been sold in Indonesia since 1968 through Prospect's affiliated sales company, PT Imora Motor. In 1975, Prospect began local production of Honda automobiles, responding to Indonesian government policy to encourage local automobile production. Honda vehicle sales in 1997 totaled 6,872 units (up 7% over 1996) but declined by 83% in 1998, to 1,182 units, mainly due to the economic crisis that hit the Southeast Asian region.
In 1999, Honda Motor Co., Ltd. decided to establish a new joint venture company, PT Honda Prospect Motor (HPM), as of February 15, 1999. HPM integrated Honda's Indonesian automobile businesses, which was previously conducted by four separate companies ranging across vehicle assembly, engine and component manufacturing, and wholesale distribution. HPM was capitalized at US$70 million, with 51% was initially held by Honda's partner PT Prospect Motor and 49% by Honda Motor Co., Ltd.
HPM began local automobile production in 2003 after the establishment of its first manufacturing plant in Karawang, with Honda Stream as the first car produced. Its development was supported with Rp 700 billion investment. The 100,000th car produced by the Karawang Plant rolled off the production line on January 29, 2007. HPM started exporting Honda Freed to neighbouring Southeast Asian countries from 2009 to 2014, and later Honda Brio in 2019.
To serve the increasing demand for Honda products in Indonesia, HPM opened a second manufacturing plant next to the existing plant on January 15, 2014 which increased its total annual production capacity from 30,000 units to 200,000 units. With total investment of Rp 3.1 trillion, the second factory has total building area of 145,760 m2 with main production line facilities including welding area, engine assembly, frame assembly, and painting area. The factory also supported with including material supply area, stamping, plastic injection, plastic painting and vehicle quality.
On February 27, 2017, HPM celebrated one million automobile production milestone.
- Honda CR-V (launched 1999)
- Honda Jazz (launched 2004, localized 2006)
- Honda Brio (launched 2012, localized 2013)
- Honda Mobilio (launched 2013)
- Honda HR-V (launched 2014)
- Honda BR-V (launched 2015)
- Honda CR-Z (2012-2018)
- "Honda Prospect Motor Company Profile". Honda Prospect Motor. Retrieved 1 July 2019.
- "Honda to form New Automobile Joint Venture in Indonesia". Honda Global. Retrieved 1 July 2019.
- "Honda Prospect Motor Opens Second Factory in Indonesia". Honda Global. Retrieved 1 July 2019.
- "Honda Celebrates One Million Automobile Production Milestone in Indonesia". Honda Global. Retrieved 1 July 2019.