Toyota says to invest $337mil in Indonesia expansion

  • Business
  • Tuesday, 13 Sep 2011

JAKARTA, Sept 13 (Reuters) Toyota Motor Corp said on Tuesday it would invest a total $337 million in Indonesia, including in building a new 70,000-vehicles-a-year factory in its second move this year to expand in the fastgrowing car market.

The world's biggest automaker said the factory would produce vehicles such as its Kijang and Innova, with annual capacity at the new plant rising to 180,000 units by 2013.

Toyota joins a long list of automakers that have announced plans to invest or expand in the world's fourthmost populous country this year, including General Motors Co , Nissan Motor Co and Toyota subsidiary Daihatsu Motor Co .

Last week, China's Geely Automobile Holdings Ltd said it planned to set up a factory in Indonesia by 2015 with an initial capacity of 10,000 vehicles per year and startup investment of $20 million.

Indonesia's car market grew by a staggering 58 percent last year to a record 765,000 vehicles and is widely expected to top 1 million in the next few years.

Toyota President Akio Toyoda entered the news conference at a ballroom in a Jakarta hotel in an orange Kijang pickup truck, developed in 1977 at the request of the Indonesian government.

"I am confident that the announcement of this second factory will be seen as proof of Toyota's commitment to the Indonesian market," Toyoda told the news conference.

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