Sime Darby enters Indonesian automotive market with Galeon Group

JAKARTA: Sime Darby Bhd has entered the Indonesian automotive market via PT Performance Motors Indonesia – a joint venture between its subsidiary Sime Singapore Ltd and Galeon Group.

PT Performance Motors Indonesia, which marks Sime Darby Motors’ first venture in Indonesia, gives the automotive arm of Sime Darby Bhd an immediate presence in Jakarta and Medan, via two dealerships representing BMW and MINI.

It will also serve as a springboard for the joint venture’s expansion into other provinces in Java and Sumatra with the BMW Group seeking to grow its network in Indonesia.

Sime Darby Bhd group chief executive officer Datuk Jeffri Salim Davidson said the new joint venture is part of Sime Darby’s strategy to grow its motors operations in Asia Pacific.

“Indonesia, being a country with one of the largest automotive markets in the region, and with a large and fast-growing middle and upper middle class – is a very important market for us.

Jeffri said Galeon Group which has been in the automotive business since 1989, had the critical expertise and understanding of the local automotive scene.

“We appreciate BMW Group’s trust in Sime Darby Motors, and we look forward to continue growing with BMW Group Indonesia as a strategic partner, and to work closely to grow the BMW and MINI brands in Indonesia,” added Jeffri.

BMW Group Indonesia president director Ramesh Divyanathan said the German carmaker welcomed the entry of Sime Darby Motors into BMW Group Indonesia's dealer network and its partnership with Galeon Group.

“This is a clear sign of confidence in BMW Group Indonesia's presence here and the strong sales performance of BMW and MINI brands in this market, both of which set new records in 2022,” he said.

Meanwhile, Galeon Group principal Leonel Gozali said that together with Sime Darby has valuable experience in the automotive sector across the value chain and would make great partners to grow together.

“With Sime Darby’s strong automotive and BMW experience, solid back-end systems, and strong financial capacity to support growth, we are confident that this partnership would bring success,” said Leonel.