Make fuel-efficient cars: Govt

Make fuel-efficient cars: Govt

The Jakarta Post, Jakarta

Minister of Industry Andung A. Nitimihardja urged automotive
makers in the country to produce fuel efficient vehicles and
develop cars that use alternative energy in a measure to curb
fuel consumption.

"I would urge Daihatsu and other car manufacturers to produce and
sell fuel efficient vehicles and support the use of alternative
energy," he said on the sidelines of a ceremony marking the
rolling of the production line of PT Astra Daihatsu Motor's
millionth car here on Thursday.

Antara quoted Andung as saying that the government would
provide support to encourage firms to produce more efficient and
environmentally friendly vehicles. He expected manufacturers to
produce more cars with smaller engine capacities, instead of
bigger ones, to reduce fuel consumption.

Daihatsu -- whose models include the Xenia, Zebra, Ceria and
Taruna -- revealed that it planned to invest Rp 500 billion
(US$51.05 million) to increase its annual production capacity
from 110,000 units to 140,000 units in 2006.

ADM vice president Noertjahjo Darmaji said the increased
capacity would enable Daihatsu to employ an additional 700
workers.

Meanwhile, Daihatsu Motor Corp. executive president director
Katsuhiko Okumura said Indonesia had been the company's
production development priority base for the last 30 years for
both passenger and commercial vehicles.

"Our target is to become the market leader in Indonesia," he
was quoted by Antara as saying, but adding that Daihatsu would
need some time to achieve this target as its current market share
stood at only 9.9 percent.