Toyota materializes its investment commitments through its two Indonesian units: Toyota Motor Manufacturing Indonesia (TMMI) and Toyota Astra Motor (TAM). The Japanese-based company made Indonesia one of its production hubs, both for sales on the Indonesian market and for exports abroad. Initially global car manufacturers were attracted to invest in production facilities in Indonesia because of the country's low minimum wages and relatively low land prices. The cars would then be shipped abroad. However, when car sales in Indonesia started to surge drastically in the years 2010-2013, Indonesia has also become an attractive sales market for global car manufacturers.

Currently, Toyota already owns five plants in Indonesia, all located around Indonesia's capital city of Jakarta.

Factories of Toyota in Indonesia:

Factory Products Manufactured
Remark
Karawang 1 Kijang Innova, Fortuner
Karawang 2 Etios Valco, Limo, Yaris
Karawang 3 Gasoline engine, ethanol type RNR This factory focuses on the
manufacturing of export products
Sunter 1 Gasoline engine, ethanol type TR
Sunter 2 Stamping parts/dies, iron castings

Source: Bisnis Indonesia

Around 50 percent of vehicles manufactured by Toyota in Indonesia are shipped abroad, mostly to other ASEAN countries and Africa.

In Indonesia, Toyota is the clear market leader controlling about 36 percent of the car sales market. TAM says its Toyota car sales in Indonesia climbed 19 percent (y/y) to 349,707 vehicles in full-year 2016. Considering overall car sales in Indonesia may only have grown 5 percent (y/y) in 2016, it implies Toyota managed to expand its market share in Southeast Asia's largest economy.

Read more: Analysis of Indonesia's Automotive Industry

Although the official data still need to be released, Indonesia's total car sales in full-year 2016 are estimated at 1.05 million, modestly rising from 1.01 million sold vehicles in the preceding year. Since 2013 Indonesian car sales have been bleak due to people's weakening purchasing power amid slowing economic growth, falling commodity prices and Bank Indonesia's high interest rate environment in the 2013-2015 period.

Toyota's Wholesale Car Sales in Indonesia:

    2013   2014   2015   2016¹
Car Sales
(car units)
434,232 399,119 321,818 349,707
Market Share
(%)
   35.3    33.0    31.9    35.9

¹ January-November period only
Source: Gaikindo

Indonesian Car Sales (CBU):

 Month    Sold Cars
      2012
   Sold Cars
      2013
   Sold Cars
      2014
   Sold Cars
      2015
   Sold Cars
      2016
 January      76,427      96,718     103,609      94,194      85,003
 February      86,486     103,278     111,824      88,740      88,208
 March      87,917      95,996     113,067      99,410      94,093
 April      87,144     102,257     106,124      81,600      84,770
 May      95,541      99,697      96,872      79,375      88,567
 June     101,746     104,268     110,614      82,172      91,498
 July     102,511     112,178      91,334      55,615      61,893
 August      76,445      77,964      96,652      90,537      96,291
 September     102,100     115,974     102,572      93,038      93,156
 October     106,754     112,039     105,222      88,408      91,846
 November     103,703     111,841      91,327      86,938    ±99,650
 December      89,456      97,706      78,802      73,264
 Total    1,116,230
   1,229,916
   1,208,019    1,013,291

 

     2008    2009    2010    2011     2012     2013     2014     2015
Car Sales
(car units)
 607,805  486,061  764,710  894,164 1,116,230
1,229,916 1,208,019 1,013,291
Car Exports
(car units)
 100,982   56,669   85,769  107,932  173,368  170,907  202,273  207,691

Source: Gaikindo

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