TOKYO: Toyota Motor Corp plans to spend nearly 30 billion yen ($388 million) to build an assembly plant in Indonesia that it aims to launch in the first half of 2013, the Nikkei business daily said, as it taps demand from the fast-growing Southeast Asian auto market.
The move would enable Toyota to nearly double its production capacity in Indonesia to about 200,000 vehicles a year, the Nikkei said.
The plan comes after three years of limiting capital investment to expanding existing plants in Japan and abroad, the Nikkei said.
The facility will be built adjacent to its existing factory in the Jakarta suburbs of Karawang and is expected to assemble three subcompact models, including a low-priced strategic vehicle under development for the country, the paper said.
Officials at Toyota were off on Friday and unavailable to immediately comment on the report.
Toyota aims to increase its output in Southeast Asia's biggest economy and said in May it would spend 16.5 billion yen to boost production capacity there to 140,000 vehicles a year in early 2013 from 100,000 units.
Last year, auto sales in Indonesia totalled around 750,000 units, approaching Thailand's roughly 800,000, with the number seen exceeding 1 million units in the coming years, the Nikkei said.
Toyota controls about 60 percent of the Indonesian market when contributions by group firms such as Daihatsu Motor Co are included. But as competition grows with Nissan Motor and Suzuki Motor announcing plans to boost output, Toyota aims to improve cost competitiveness through increased local production, the Nikkei reported.
Other global automakers are looking to increase production in Indonesia. On Thursday, the Indonesia head of Geely Automobile Holdings Ltd told Reuters that the Chinese automaker plans to set up a car factory in country by 2015.
Shares of Toyota were down 0.1 percent in early morning trade on Friday, in line with the benchmark Nikkei average. ' Reuters
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The move would enable Toyota to nearly double its production capacity in Indonesia to about 200,000 vehicles a year, the Nikkei said.
The plan comes after three years of limiting capital investment to expanding existing plants in Japan and abroad, the Nikkei said.
The facility will be built adjacent to its existing factory in the Jakarta suburbs of Karawang and is expected to assemble three subcompact models, including a low-priced strategic vehicle under development for the country, the paper said.
Officials at Toyota were off on Friday and unavailable to immediately comment on the report.
Toyota aims to increase its output in Southeast Asia's biggest economy and said in May it would spend 16.5 billion yen to boost production capacity there to 140,000 vehicles a year in early 2013 from 100,000 units.
Last year, auto sales in Indonesia totalled around 750,000 units, approaching Thailand's roughly 800,000, with the number seen exceeding 1 million units in the coming years, the Nikkei said.
Toyota controls about 60 percent of the Indonesian market when contributions by group firms such as Daihatsu Motor Co are included. But as competition grows with Nissan Motor and Suzuki Motor announcing plans to boost output, Toyota aims to improve cost competitiveness through increased local production, the Nikkei reported.
Other global automakers are looking to increase production in Indonesia. On Thursday, the Indonesia head of Geely Automobile Holdings Ltd told Reuters that the Chinese automaker plans to set up a car factory in country by 2015.
Shares of Toyota were down 0.1 percent in early morning trade on Friday, in line with the benchmark Nikkei average. ' Reuters
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