UMW Toyota Motor Sdn Bhd is taking it’s operations here to the next step. It will start manufacturing cars here in Malaysia, with the first roll-out expected in 18 months time.

Toyota’s sales success of around 7000 cars a month has reached a milestone where it will begin to be financially feasible to manufacture vehicles locally instead of importing CKD kits and merely assembling them here in Malaysia. These Malaysian-manufactured Toyota cars would have over 60% local content. Toyota officials did not mention which models would be manufactured locally, but it is likely the high volume models like the Toyota VIOS which accounts for 1,500 units of the 7,000 monthly sales figure.

There is a future possibility of price reductions for the locally manufactured vehicles from cost-savings from its operations, but this is just a possibility. UMW Toyota is also exporting a vehicle assembled locally to Thailand beginning next Monday. The model exported will be a van model.