Toyota to raise the annual capacity at its plant in Indonesia

Article by Christian A., on February 12, 2012

With hopes of keeping up with growth in Indonesia (Southeast Asia's top economy), Toyota has decided to raise the annual capacity at its Karawang plant in Indonesia by 50,000 cars to 120,000 cars, according to a senior official. Toyota has informed Reuters last Wednesday that it will make an additional investment of 15 billion yen ($195.11 million) in the facility.

The Kijang Innova compact MPV and the Fortuner SUV are produced at the Karawang plant intended for the domestic market and export markets like Thailand and South Africa.

In 2011, Indonesia’s domestic car sales reached a record 894,180 units, about 16.9% higher than the previous year. This was aided by the lowest ever interest rate and an expanding middle class.

Leonardo Henry Gavaza, an analyst at Bahana Securities in Jakarta, said that as many automakers want to substantially increase their capacity, it’s suggested that the industry is “bullish about Indonesia's automotive market."

Gavaza said that Indonesia's domestic car sales have exceeded those of Thailand in 2011. This helps explain the increase in direct investment in the sector. He added that car sales in 2012 would probably be flat or lower than in 2011 due to the higher base.

However, sales should hit 1 million cars in 2012 and 8.8 million motorcycles if the government withdraws its plan to increase fuel prices as well as a separate plan to raise the down payment rate for car loans by 30%.

If you liked the article, share on:

Pin It

Comments

Recommended

Reddit user Jdubbswrx spotted a rather deceptive move coming from the German automotive manufacturer Audi. He posted an image of the supposed exhaust of the new 2018 Audi SQ5 sporting...
by - March 29, 2017
McLaren car owners will be thanking the automotive company as it has decided to roll out new goodies for the 540C, 570S and 570GT sports car line-up. From this series...
by - March 29, 2017
On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries