Indonesia: Toyota/Daihatsu each build a second plant for low-priced small cars

Nissan also boosts production capacity to produce eco cars that meet "Low Cost Green Car Program"

2011/12/09

Summary

 In 2010, production and new vehicle sales in Indonesia were 702,508 and 764,710, respectively, each up by slightly more than 50% as compared to the 2009 results that were affected by world recession. Sales volume in the January-October period of 2011 is 746,199 units, up by 19.3%.

 Indonesia is the fourth most populous nation in the world, with about 240 million people. Its automotive industry is in a stage of growth. Sales of vehicles in Indonesia are said to exceed those of Thailand, which is the largest market in ASEAN countries, in the near future. Due partly to the flooding in Thailand, vehicle sales in Indonesia surpassed those of Thailand by 32,357 units in the January-October period of 2011.

 In Indonesia, Japanese vehicles hold about a 95% market share. In 2010, Toyota had a 37.7% share and when combined with Daihatsu, holds more than 50% share of the market.

 Japanese OEMs expect the future expansion of the Indonesian market and are also enhancing their business in Indonesia as an export base that follows Thailand.

 Whereas multi-seat vehicles (such as Toyota Avanza and Daihatsu Xenia) are currently very popular in Indonesia, the Indonesian government plans to provide incentives to eco-friendly cars (low-priced compact cars) that meet requirements such as fuel economy and local-content ratio; each OEM is aiming to launch vehicles that meet the requirements.

 Toyota and Daihatsu will each build a second plant; Toyota is said to produce a compact car based on the Etios, which it launched in India, and Daihatsu is said to be planning to manufacture an even smaller 800-1000cc car, which will also be supplied to Toyota.

 Nissan will boost production capacity, planning to produce eco-friendly cars that the Indonesian government is currently promoting.

 Among heavy commercial vehicle manufacturers, Isuzu and Hino are enhancing their development and production structure as they consider Indonesia to be as important a base as Thailand.

 Among European, US, and Korean OEMs, GM, which withdrew from Indonesia in 2005, announced that it would resume production in 2013.