Daihatsu’s Indonesian unit, PT Astra Daihatsu Motor, will spend about US$70 million to almost double annual output capacity to meet growing demand.

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The compact car specialist told Reuters capacity at the Indonesian subsidiary will rise to 150,000 units by the spring of 2007 from the current 78,000 following the investment.


The investment is in addition to a plan announced earlier this year to increase PT Astra Daihatsu’s annual output to 114,000 vehicles by the end of this year, Daihatsu told the news agency.


The Indonesia unit plans to hire about 1,500 new workers.


Reuters noted that Daihatsu, majority held by Toyota, is eager to expand its overseas operations since the Japanese market is expected to stay stagnant on a shrinking population.

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PT Astra Daihatsu Motor manufactures small cars developed with Toyota.