PT Toyota Astra Motor (TAM) is waiting for a decision from its principal Toyota Motor Corp. (TMC) on Nov. 20 on possible continuation of sedans made in Thailand after the supply had been disrupted due to massive floods.
“Plants in Thailand will be closed down until Nov. 20. On that day we will find out whether the supply continues or it will be relocated to Indonesia or to another country if the flooding continues,” TAM marketing director Joko Trisanyoto told reporters on Friday.
He said that TAM’s stocks of Altis, Camry, Corolla, Limo, Vios and Yaris, could still fulfill market demands until the third week of November with the latest shipment arriving earlier this week.
TAM imports all sedans from Thailand.
“The shipment comprised of 1,000 sedans or equal to one week’s demand. In addition to that, dealers still have 2,000 units,” he said.
TAM president director Johnny Darmawan said that if Indonesia was picked as the destination of a production relocation if the floods continue, it would be a huge opportunity for the country.
“That would be a golden opportunity for Indonesia, although local production meant that we need a joint venture and investment,”
Industry Minister MS Hidayat announced earlier this year that TAM would invest an additional Rp 5.5 trillion (US$622.8 million) to build a new plant in Karawang, West Java, completing existing factories, two in Sunter, North Jakarta, and one in Karawang.
The new plant was expected to produce around 70,000 vehicles a year, boosting local production to 180,000 cars per year.
Joko added that local production would be the right option to take because TAM’s principle was not to be dependent on car supplies from a foreign country.
He added that unlike sedans, supply of components had not been disrupted because 65 percent had been locally supplied.
“The rest are from Japan and Southeast Asian countries. Thailand’s portion is relatively small at only 5 percent,” he said.
Due to Thailand’s worst flooding in decades, Joko said that monthly sales might decrease by 4,000 units, considering the lost supply of 1,000 sedans per week.
TAM aims increase car sales by at least 36 percent from the 850,000 units set by the Indonesian Automotive Industry Associations (Gaikindo), or about 306,000 units. TAM sold 284,000 cars in 2010.
Joko said sedans contributed between 12 percent to 15 percent of total sales.
On the same day, Johnny announced that TAM was named the best in the JD Power Asia Pacific 2011 Indonesia Sales Satisfaction Index (SSI) survey.
TAM had gained the highest 777 points from the total 1,000 points, the front runner among other auto makers. The industry average is 772 average points
Honda came in second with 773 points, followed by Daihatsu (769 points) and Mitsubishi (765 points).
“Strong brand and customer satisfaction is one whole unity. They guarantee the sustainability of a company,” JD Power Asia Pacific managing director Gerrit Kuyntjes said.
The survey involved 2,170 respondents questioned randomly on streets in Jakarta, Sumatra, West Java, Central Java, East Java, Sulawesi and Bali. Factors that helped TAM to be in top position were delivery process (31.1 percent), sales person (11.3 percent), dealer facility (11.7 percent), sales initiation (9.4 percent), paperwork (10.9 percent), delivery timing (13.4 percent) and deal (12.3 percent). (fem)