Toyota to invest 15b yen in Indonesia
Indonesia - Japan's automaker Toyota Motor Corporation is looking to invest 15 billion yen (S$241.8 million) in Indonesia to raise the production capacity.
The company is looking to increase capacity from 70,000 to 120,000 cars of its second plant in Karawang plant in West Java, The Jakarta Post reported. The second plant is expected to start full operation by early 2014.
With this investment, Toyota's total production capacity will increase to 230,000 units. At present, the original Karawang plant is able to produce 110,000 units of cars each year.
"We want to expand our exports and meet the higher domestic demand for our passenger cars," Yukitoshi Funo, executive vice president at Toyota, told The Jakarta Post.
He added that this investment, together with the initial investment of 26.3 billion yen (S$423.9 million), will bring total investments in the second Karawang plant to 41.3 billion yen (S$665.6 million).
Indonesia expects car sales to bypass 1 million units in 2013 to overtake Thailand as the biggest automotive market in the region.
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