Toyota-Daihatsu to produce new MPV in RI

Novan Iman Santosa and Rendi A. Witular, The Jakarta Post, Tokyo/Jakarta

Japan's giant car producer Toyota Motor Corporation will team up with its subsidiary Daihatsu Motor Co. to produce and sell a new type of multipurpose vehicle (MPV) in Indonesia, possibly to be launched in January next year.

Spokesman for Toyota, Tetsuo Kitagawa said the two companies had invested around US$180 million in Indonesia for the new cars to be produced at Daihatsu's local production company PT Astra Daihatsu Motor.

"The cars will not only be sold in Indonesia, but also in the South East Asian region," said Kitagawa during a press briefing at the Tokyo Motor Show on Thursday.

Toyota holds a 51 percent stake in Daihatsu.

Kitagawa explained that Toyota had chosen Indonesia and Thailand to be the center of its production plants for the region, with Indonesia selected to develop the new MPV and Thailand for a new type of light pickup truck.

He said the production plant in Indonesia would have an initial production capacity of 70,000 units, with some 10,000 of those earmarked for export.

The plant would also produce 180,000 gasoline-powered engines for the new MPVs and pickup trucks. Around 130,000 of the engines would be exported to Thailand, he said.

"This is our consolidated effort to make our cars competitive. The two countries will play a key role for our global strategy... We chose Indonesia because our local partners have sufficient experience and skill to make such cars.

"Despite political uncertainty next year, we are still committed to Indonesia because the country still has room to rapidly develop," said Kitagawa.

He did not mention the launch date of the new MPVs, but an industry source in Indonesia said the MPVs would likely be on the roads early next year.

The cars will be sold through PT Astra International and PT Toyota Astra Motor, under the brands of Toyota Avanza and Daihatsu Xenia, with an engine capacity option of between 1000 cc and 1300 cc.

The cars, whose models are said to be more or less a combination of the legendary Toyota Kijang and the Daihatsu Taruna, are likely to have a capacity of up to five passengers.

The plan by Toyota to keep Indonesia as part of its global production network, and the recent move by Honda Motor Co. to entrust the making of its sophisticated automatic transmissions in the country, have raised new hopes that some still considered the country an attractive investment destination.