Toyota, Daihatsu to raise RI capacity

In response to strong demand for the Kijang Innova van, PT Toyota Motor Manufacturing Indonesia (TMMI), a local unit of Japanese automotive giant Toyota Motor Corp., will invest some US$40 million to expand its production capacity here.

In a press statement on Tuesday, TMMI announced that in response to strong demand for the Innova, the company would increase its annual production capacity at its plant in Karawang, West Java, from 70,000 vehicles to some 100,000 vehicles this year.

"TMMI will invest approximately $40 million in the plant expansion and will hire about 500 new employees," said the company in the statement.

The plant expansion is part of Toyota's ongoing effort to improve its global production and supply network for its Innovative International Multipurpose Vehicle (IMV) series, which included the Innova.

Production of the IMV models began in August last year in Thailand, Indonesia, Argentina, South Africa, India, the Philippines and Malaysia, with Indonesia serving as a base for the production and export of minivans and gasoline engines.

Elsewhere, PT Astra Daihatsu Motor (ADM), a local joint venture of Japan's Daihatsu Motor Corp., next year will increase its annual production capacity for its small vans from 78,000 vehicles to 114,000 vehicles.

The small vans are developed jointly by Daihatsu and Toyota, with Daihatsu selling the vans under the name Xenia and Toyota under the name Avanza. Annual production capacity for both the Xenia and the Avanza will be increased from 52,000 vehicles to 84,000 vehicles.

ADM is expected to invest some $10 million in its plant expansion and will hire some 700 new workers.

When these planned production capacity increases are implemented, Toyota and Daihatsu's total annual production in Indonesia will expand from 158,000 vehicles to 224,000 vehicles at full production. -- JP