Auto Industry: Daihatsu, Toyota To Sell Jointly Developed Car In Indonesia

TOKYO December 11, 2003, Dow Jones reported that Daihatsu Motor Co. and its parent company, Toyota Motor Corp. , said Thursday they will launch a jointly developed small vehicle in Indonesia from January.

Daihatsu and Toyota will spend a total Y9.9 billion on the project. The new car will be sold as the Daihatsu Xenia and Toyota Avanza with a combined monthly sales target of 3,600 units.

PT Astra Daihatsu Motor, Daihatsu's production base in Indonesia, will produce the car. The number of workers at the production base will double to 3,500 by next year as a result.

The car will be able to carry seven passengers and will be priced between IDR60 million and IDR90 million ($1=IDR8,493).

The latest tie-up is the third collaboration between Toyota and Daihatsu in overseas markets. Toyota started local production of a Daihatsu small car in Pakistan in 2000. It also began manufacturing a Daihatsu sports utility vehicle in Venezuela in 2001.

Toyota holds a 51.1% stake in Daihatsu.