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.