INDONESIA: Toyota to develop cheap cars for ASEAN
Toyota is considering Indonesia, Thailand, and Vietnam as options for a low-cost car production hub to the Southeast Asian market.
According to a Bisnis Indonesia report, TMC will make an intensive review of investment climates, automotive business outlooks, and automotive industrial growths in the three countries before making a decision on where the investment will go.
President Director of PT Toyota Astra Motor (TAM), the brandholder sole agent to Toyota in Indonesia, Johnny Darmawan revealed Indonesia was one of the strongest candidates to become Toyota's low-cost car production hub.
"Indonesia's toughest competitor is Thailand, which is the top automotive-making country in ASEAN. However, Indonesia still has huge opportunity, thanks to its rapid domestic car market growth," he told Bisnis Indonesia.
The three countries, he continued, were considered the most attractive in term of automotive investments. Indonesia had huge market potential and raw material resources, Thailand had good infrastructures and aggressive policies in capturing foreign investments, and Vietnam was a country with competitive labor wage. At the moment, Vietnam was continuously improving its investment climate to attract as much investment as possible.