TAM exports Avanza to Thailand

TAM exports Avanza to Thailand

Tony Hotland, Jakarta

Major automobile manufacturer PT Toyota Astra Motor (TAM) marked
on Monday the first export of its new, popular Avanza
multipurpose vehicle (MPV) to Thailand as an effort to capitalize
on the ASEAN Free Trade Area (AFTA) scheme.

TAM will export some 700 Avanza units per month to Thailand.

"The export of Avanza shows that it is competitive in quality
and price against the global standard. In other words, the
Indonesian automobile industry has steadily gained world-class
competitiveness," managing officer of Tokyo-based Toyota Motor
Corporation Akira Okabe said after the export ceremony.

The Toyota Motor Corporation owns a 95 percent stake in TAM,
while the remainder is held by local automotive giant PT Astra
International.

Okabe added that Toyota would expand its investment in
Indonesia should more countries, especially Southeast Asian
countries, want to import Avanza.

"This export also shows the commitment of Toyota to making
Indonesia its production base for multipurpose vehicles and a
major investment area," he said.

TAM president Johnny Darmawan said the export would not
disrupt Avanza supply for the domestic market, even though TAM
has a long waiting list with back orders pending up to 2005.

"When we launched Avanza, we made quite a conservative target
for the domestic market and planned to export. We didn't expect
such a huge response here, but we already have local and export
divisions," he said.

Unlike those sold in Indonesia, export Avanzas are equipped
with variable valve-timing intelligence, or VVT-i, which produces
cleaner gas emissions, in order to meet Thailand's emission
standard.

Minister of Trade and Industry Rini Soewandi, who also
attended the ceremony, expects TAM to speed up production to meet
growing demand, which would open new job opportunities.

"Producing automotive components ... requires a great many
employees. With an export target of up to 2,000 Avanza units, it
is expected to absorb at least 1,700 new employees," said Rini,
who once led TAM.

The company is also considering exporting to other ASEAN
countries, pending sales figures for Thailand.

Toyota has invested some US$90 million for the production of
its Avanza and Xenia models, which are manufactured by Toyota
Motor Corporation's subsidiary, Daihatsu Motor.

Avanza and Xenia were introduced early this year to meet
growing demand for affordable cars under Rp 100 million
($11,111). The company claimed both models have received a
tremendous welcome.

The market for such cars have boosted overall sales, with
around 160,000 cars sold during the first quarter of the year, up
25 percent from the same period last year.