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Jakarta Post

Daihatsu Motor to produce 5m cars, new model in 2016

  • Linda Yulisman

    The Jakarta Post

Jakarta   /   Fri, May 8, 2015   /  08:42 am
Daihatsu Motor to produce 5m cars, new model in 2016

Four millionth: Industry Minister Saleh Husin (in the driver'€™s seat) and Astra Daihatsu Motor president director Sudirman Maman Rusdi (in the passenger seat) test drive a Daihatsu Terios as Daihatsu sales operation chief executive Djony Bunarto Tjondro (left), Daihatsu Motor Company chairman Koichi Ina (second left), Japanese Embassy representative Shuichi Akamatsu (third left) and PT Astra International president director Prijono Sugiarto (right) look on during a ceremony to celebrate the company'€™s of 4 million cars production in Jakarta. Antara/Wahyu Putro

Major automobile manufacturer Astra Daihatsu Motor (ADM) may produce 5 million vehicles next year, a move that would strengthen its position as Daihatsu'€™s biggest production base outside Japan.

Prijono Sugiarto, the president director of ADM'€™s parent company, Astra International, said the group had approved a plan to produce a new model that would be manufactured locally starting from next year to help meet its target. The development of the model will cost around Rp 1 trillion (US$76.06 million).

In line with the plan, ADM would try to gradually boost its exports until it reached 30 percent of total production from a current level of 15 percent, Prijono added.

'€œI think we are on the right track to achieve that,'€ Prijono said Thursday during a ceremony to mark ADM'€™s production of 4 million units.

Starting local assembly in Indonesia in 1978, ADM now runs two facilities, including an engine plant, in Sunter, North Jakarta, and Karawang, West Java, with overall annual capacity of 530,000 units It sources autoparts from 216 first-tier suppliers and 1,105 second-tier suppliers.

Apart from making cars for Daihatsu, the plants also assemble vehicles for Toyota. As of May, ADM has made 2.08 million vehicles for Daihatsu (51. 9 percent) and 1.92 million for Toyota (48.1 percent).

The company exports to 48 destinations in Asia, the Middle East, Africa and South America.

ADM president director Sudirman Maman Rusdi said that the 5 million target would likely be achieved, as the firm could produce 430,000 units this year and another 530,000 units next year in line with recovering market demand.

The new model that it intended to produce would be sold under both Toyota and Daihatsu brands, he added.

'€œWe haven'€™t decided yet whether to produce it in the Karawang or the Sunter plant. But all of our plants can produce any model according to demand,'€ Sudirman said.

ADM and Toyota have previously collaborated on a number of models, such as multi-purpose vehicles Daihatsu Xenia and Toyota Avanza and low-cost green cars Daihatsu Ayla and Toyota Agya.

ADM, Sudirman went on, would also employ its research and development (R&D) center in Karawang to build the new product.

ADM aims for its R&D center to be capable of carrying out full model change by 2019.

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