Toyota Motor Corp. and its partners will increase their investment into Indonesia to seven trillion rupiah ($700 million) over the next five years as the Japanese-based automotive giant looks to expand its reach in Southeast Asia.
Reuters reports Toyota, which has an almost 40 per cent share of the Indonesian new-car market, plans to invest 310 billion rupiah ($31 million) into its No.1 Karawang plant to boost production capacity to 130,000 vehicles by September 2013.
The company currently builds the Innova people mover and the HiLux-based Fortuner SUV at the plant.
Toyota will also purchase land surrounding the factory to build an engine plant.
Earlier this year, Toyota announced a plan to invest five trillion rupiah ($500 million) to build No.2 Karawang plant, while partner Denso Corp. also set aside one trillion rupiah ($100 million) for a new factory of its own in Southeast Asia’s largest economy.
Aisin Seiki, Daihatsu Motor, Toyota Auto Body and Toyota Tsusho are all part of the collaborative investment effort in Indonesia, which is growing steadily as an automotive industry in terms of domestic sales and exports.
Car sales increased 17 per cent in Indonesia in 2011 to 894,180 units – an all-time record for the world’s fourth-most populous nation, which is home to more than 237 million people.