Toyota, Daihatsu launch Xenia, Avanza minivans
Sandy Darmosumarto, The Jakarta Post, Jakarta
Toyota Motor Corporation (TMC) and its subsidiary Daihatsu Motor Co. (DMC) launched a new type of mini-van on Thursday, capitalizing on the growing demand for vehicles in the Rp 60-100 million (US$7,063 - US$11,772) price bracket.
The new products were introduced amid concerns over the slow growth in Toyota's top selling Kijang van.
"Since the economic crisis in 1997, the market for the Kijang has increased by only small increments. However the growth of demand for vehicles in this particular price bracket has been astounding," said Yulian Warman, head of Astra International's corporate communications.
Astra International has a 31.87 percent stake in Astra Daihatsu Motor (ADM), distributor and manufacturer of Daihatsu brands in Indonesia, and a 51 percent stake in Toyota-Astra Motor (TAM), distributor of the Toyota brands in this country.
Additionally, TMC has a 51 percent stake in DMC.
The new vehicle will be sold under the badge of Daihatsu Xenia and Toyota Avanza, but produced solely in Daihatsu's Indonesian plant. Local content is expected to be around 60 to 70 percent.
Xenia will be available in two models, respectively equipped with 1000 cc and 1300 cc engines, while Avanza is available with a 1300 cc engine.
Xenia cars cost Rp 70-90 million, while Avanza sells for Rp 90-100 million. Waiting list for the Avanza was reported at 4,000 units, while that for the Xenia at 2,000.
Daihatsu and Toyota have invested a total of US$90 million in ADM and its vendors in order to develop the project.
"Toyota and Daihatsu together have conducted market research to fulfill the specific needs of Indonesian customers," said Akio Toyoda, senior managing director of TMC.
Both ADM and Toyota Motor Manufacturing Indonesia (TMMI) have plants in Indonesia, but both agreed to produce the new cars at ADM's facilities. ADM will double its workforce to roughly 3,500 workers at its facilities in 2004.
"Taking into account long-term production plans, the optimal arrangement is to allocate the production of this new vehicle to ADM's plant," said Irwan Priyantoko, general manager of TMMI.
Takaya Yamada, president director of DMC expressed a positive note on the future of the new cars.
"DMC and TMC are quite sure that the project will contribute to Indonesian society in the area of motorization. At the same time, the project will help develop the parts and supply businesses and create jobs," Yamada said.
Earlier, Toyota said it had chosen Indonesia and Thailand to be the center of its production plants for the region, with Indonesia selected to develop the new mini-van and Thailand for a new type of light pickup truck.
Aside from being sold on the local market, the Avanza and Xenia models will be exported to Southeast Asia and South Asia.