In a joint press conference in Jakarta on Tuesday, Toyota Motor and its subsidiary Daihatsu Motor announced capacity increases at their two assembly plants in Indonesia. The decision was made in response to the strong demand for their products both in Indonesia and in overseas markets.
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Toyota Motor Manufacturing Indonesia (TMMIN) plans to invest $US40 million in expanding annual production capacity at its Karawang plant (about 40 miles [70km] east of Jakarta) from 70,000 to 100,000 units by the end of 2005. The plant makes the Kijang Innova MPV – one of the IMV models that are also assembled in Thailand, India, Philippines, Malaysia, South Africa and Argentina.
A further 500 workers will be recruited at the Karawang plant and accumulated investment in the facility will rise to $400 million. This year, the company plans to export a total of around 75,000 component sets and built-up vehicles to Malaysia, Philippines, India and other ASEAN countries. This figure is projected to rise to 83,000 units in 2006. In the first quarter of 2005, a total of 5,800 Innova CKD sets were exports, while the figure released for CBUs was 4,500 for the five-month period between November 2004 and March 2005. Production for export has been ramped up significantly in recent months.
PT Astra Daihastu Motor is investing a further $10 million in expanding its Sunter plant to accommodate additional assembly capacity for the Daihatsu Xenia and Toyota Avanza compact minivans. Annual capacity will rise to 114,000 units by 2006, from the current 78,000 units, and an additional 700 workers will be recruited.
Annual production capacity of the Xenia and Avanza combined will rise to 84,000 units, from the current 52,000 units. The plant also makes the Zebra minibus, the Taruna SUV and the Ceria small passenger car. Ageing models such as the Rocky and Hi-line will be phased out after the revamp.
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By GlobalDataThe plant also exports Toyota Avanza CKD kits to Malaysia, which are assembled by Perodua, the country’s second national car company, and sold locally under the Toyota brand. The company plans to increase exports to 42,000 units to Malaysia in 2006, from a projected 24,000 units this year.
Combined Toyota and Daihatsu production capacity in Indonesia will rise from 158,00 units to 224,000 in 2006.
Tony Pugliese
