Toyota export target still attainable

JAKARTA. PT Toyota Motor Manufacturing Indonesia (TMMIN), the joint venture of Japan’s biggest automaker Toyota Motor Corporation (TMC) and publicly listed diversified group PT Astra International, says it is still on track to meet its overseas sales target despite a shrink in demand.

Exports of the sports utility vehicle (SUV) Fortuner and multi-purpose vehicle (MPV) Innova surged by 8.35 percent, with 32,128 sold in the first half of this year, driven particularly by strong demand from the Middle East, according to the firm’s statistics.

Shipments of Fortuner to the Middle East totaled 16,314, while delivery of Innova stood at 7,088, representing 50.78 percent and 22.06 percent of overall exports, respectively.

Thanks to this achievement, TMMIN hit nearly half of its export target — 69,688 vehicles — for the year, paving the way for the firm to attain its sales goal, Yanuarto Widihandono, TMMIN external affairs division manager, said on Tuesday.

“In the second semester we will maintain our early annual sales target,” Yanuarto told reporters at a press briefing.

TMMIN exports accounted for 37.48 percent of its total production of 85,719 vehicles in the January-June period.

The firm’s produced 36.42 percent of the 235,376 units made domestically under Toyota brands. Other types, such as Avanza, Rush and Town Lite, are produced by Toyota’s affiliate, PT Astra Daihatsu Motor (ADM), which also exports the vehicles.

Production of whole vehicles under Toyota is expected to reach 461,854 this year, up 6.2 percent from last year, with exports settling at 122,448, up 6.94 percent.

TMMIN director I Made Dana M. Tangkas said that in the second half of this year to meet the designated sales target, the company would diversify its export destinations and types of vehicles. However, he declined to elaborate further.

In line with boosting its export volume, the firm also aims to balance overseas and domestic market sales in the future by increasing allocation for exports to half of its total sales, Made said.

“We want to do this as soon as possible. This is where we are heading over the next few years,” he explained.

Exports of all Toyota brands, which comprise completely-built up (CBU) units; completely-knocked down (CKD) units; engines; and components, in the first half of this year were valued at US$8.51 billion, up 6.10 percent year-on-year.

TMMIN kicked off manufacturing in Indonesia in 1971 and began producing the Kijang, a massive hit with the domestic market, in 1977. The Innova was put into production in 2004 and the Fortuner in 2006.

The firm currently operates four plants in Karawang, West Java; and Sunter, North Jakarta.

To cope with more robust local and global demand, the firm began operations at its second plant in Karawang with an annual production capacity of 70,000, which will increased to 120,000 early next year.

Its first Karawang plant, which is currently being upgraded, will reach annual capacity of 130,000 by September. With these expansions, TMMIN expects its total capacity will settle at 250,000 vehicles next year.

In addition, the firm plans to build a new engine plant in Karawang with a total investment of Rp 2.3 trillion (US$214.49 million). The plant, scheduled for operation in 2016, will be able to produce 216,000 units every year, more than half will be exported.

According to Made, the firm is now preparing the land for construction, but kick off is “still not definite”. (Linda Yulisman)