Toyota Motor Corporation is planning to invest $143 million in a new plant in Indonesia.
Toyota Motor Manufacturing Indonesia (TMMIN), the Japanese carmaker’s local subsidiary, will increase production capacity to meet growing demand for its vehicles. The investment will help increase output from 180,000 vehicles to 230,000 vehicles by the middle of next year.
Johny Darmawana, TMMIN vice president, told The Jakarta Post that the investment will allow the company to make another 50,000 units a year starting from mid-2013, when the capacity upgrade is completed. He added that the new plant would produce new models.
“The increased investment showed that Toyota wanted to seize the opportunity as the Indonesian market continued to expand. At present, Toyota cannot fulfill the whole demand for cars in Indonesia and we still face shortages of supply, although Daihatsu has helped us,” Darmawana said. The new plant is currently under construction and will begin operating later this year.
Toyota Motor Manufacturing Indonesia currently operates three factories in Indonesia. PT Astra Daihatsu Motor (ADM) manufactures the Avanza multi-purpose vehicle and the Rush SUV for Toyota. Toyota aside, companies such as Daihatsu Motor, Suzuki Motor and Nissan Motor have also promised to increase investments in Indonesia.