Toyota to strengthen export support

TOYOTA   EXPORTS   INDONESIA

Indonesia - Toyota Motor Corp. will be building a second manufacturing plant in Indonesia worth US$341 million which will be used to supply its domestic and export markets.

The facility will have the capacity to manufacture 70,000 vehicles a year and will be constructed next to its existing factory in Karawang, according to president of PT Toyota Motor Manufacturing Indonesia Masahiro Nonami.

It is scheduled to begin production in early 2013.

Aiming to boost sales in emerging markets, the company will be establishing a production hub along with a complete network of suppliers in the country, Business Week reported.

"To ultimately cut production costs, automakers need to bring their entire network of suppliers overseas," Takeshi Miyao, an analyst at consultancy Carnorama said. Companies will also need to do more than that due to import taxes and shipping costs, he added.

Toyota is planning to delve deeper into local production rather than export from Japan, according to Toyota Tsusho Corp.'s spokesperson Kosuke Ishida.

"Toyota is trying to switch to locally supplied parts," Akio Toyoda, president of Toyota said. "For a healthy development of the auto industry, we need a very solid base for parts sourcing."

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