According to the Automotive Focus Group (AFG) blog, Toyota is to shift some of its Thai output base to Indonesia.
Toyota Motor Manufacturing Indonesia (TMMIN) has started producing its all-new Vios at the company’s plant in Karawang, West Java, as it gradually moves its production base from Thailand to Indonesia.
Up till now, Toyota exported the new Vios from Thailand, but the company has now spent 2.5 trillion rupiah (6.7 billion THB) in initial capital on its expansion in Indonesia.
Toyota Yaris
According to TMMIN president-director Masahiro Nonami the company plans to produce 1,000 Vios sedans every month.
“Currently, we have approximately 100 auto-part suppliers, with local companies constituting some 20 percent of the suppliers, while the remaining 80 percent are made up of Japanese and joint-venture companies,” he said.
Toyota wants to shift its production base gradually from Thailand to Indonesia and hopes to complete the move some time next year.
The car manufacturer also plans to start producing the new Toyota Yaris, which it also currently imports from Thailand, in Indonesia next year.
President-Director Masahiro Nonami also said, “Although Indonesia is a very attractive market for automotive products, some problems in the country, such as traffic gridlock, high production costs and increasing minimum wages, need to be addressed to attract more automotive companies here.”
And as a veiled threat to the Indonesian government he also added that Toyota might double or triple its annual car production in Indonesia if the country improves its infrastructure, for example, by improving port efficiency.
