Daihatsu to intensify focus on Indonesia as part of growth

Daihatsu to intensify focus on Indonesia as part of growthDaihatsu is set to make Indonesia an integral part of its business expansion globally, according to a report in the Nikkei. The Japanese small car specialist, which posted a record 103.4 billion yen operating profit for the fiscal year ending March, is already very much a leading marque in Indonesia, but is looking at the country to provide a springboard for further growth elsewhere.

Away from its domestic market, Indonesia is Daihatsu’s largest overseas production and sales base, and the country also serves as its export hub to emerging markets. In 2010, the company’s Indonesian arm posted an operating profit of 33.8 billion yen, effectively triple the 11.3 billion yen it earned in 2009. This figure is good enough to account for 30% of its overall total operating profit, something not to be sneezed at.

In all, it sold 123,400 vehicles in the country last year, up 48% from 2009, adding up to an overall market share of 15.5%. Daihatsu’s parent, Toyota, has around 40% of Indonesia’s vehicle market share, and combined the brands have well over half of the share of the Indonesian market.

Now, Daihatsu is set – with the help of Toyota – to increase production in the country. It is set to spend around 20 billion yen to build a new factory, beginning in August, in the suburbs of Jakarta – when the plant is ready in 2013, it will offer an annual production capacity of 100,000 vehicles, adding to the company’s existing annual capacity of 280,000 cars there.

The new factory is expected to assemble a low-price compact of around a 1.0 litre engine displacement for the Indonesian market. The company says the vehicle will be the cheapest compact ever made by the Toyota group and will also be supplied to Toyota for sale under a different model name. Besides domestic sales, it plans to export the model to other Southeast Asean markets and elsewhere in a bid to expand its presence in Asia.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • hantu on May 26, 2011 at 4:46 pm

    When Daihatsu want to bring a range of car in Malaysia?
    Now, Daihatsu sell lorries and vans only.
    Doesn’t have plan to bring Daihatsu car in Malaysia?

    Like or Dislike: Thumb up 0 Thumb down 0
    • Unforgiven on May 27, 2011 at 10:38 am

      I thought Perodua is able to penetrate the Asian market, because they are still one of the first.

      But I think our G is getting too much ‘free money in the pocket’ system, AP policy, etc that the investor is slowly moving away.

      We may need Perodua to remove the badge and take the original Toyota/Daihutsu badge.
      The price for an original Toyota/Daihutsu should be much cheaper and affordable in this Global economy. Something like the Dell system by getting proper suppliers?

      It’s the same for Lancer vs Inspira where the cost for Lancer is way cheaper than Inspira based on the selling price in Langkawi.
      The quality of Lancer is also better based on the report from MMM CEO, global standard.

      The faster the G is able to remove the ‘free money in the pocket’ system will definitely benefit the whole M’sia.

      Like or Dislike: Thumb up 0 Thumb down 0
      • Just me on May 27, 2011 at 4:41 pm

        Do not question hak keistimewaan Proton and Perodua, you can be charge with sedition …..hahaha

        Like or Dislike: Thumb up 0 Thumb down 0
      • autojohndoe on May 27, 2011 at 10:24 pm

        then maybe you may complain when there is no longer subsidy for fuel, sugar etc etc…

        because free money which also for malaysian no longer have…

        Like or Dislike: Thumb up 0 Thumb down 0
  • Intelligent agent on May 26, 2011 at 5:01 pm

    Indonesia cheap, very cheap labour but don’t have any expertise at all. So it’s wrong move by Daihatsu.

    Like or Dislike: Thumb up 0 Thumb down 0
    • Amir I'm Sorry on May 26, 2011 at 6:24 pm

      Indonesia has a good potential my friends…their economies is growing…they have huge young population with low debt…soon they have money and will consume more…out of 230 million people, you think there’s no 10% high skill workforce?….that will be more than Malaysian population…who says they don’t have expertise…you talk like you know the whole south east asia….don’t talk cock bro…..never look down on other people…you doesn’t sounds intelligent enough to me..

      Like or Dislike: Thumb up 0 Thumb down 0
      • hantu on May 26, 2011 at 9:22 pm

        Haha…
        Intelligent agent is now spokesman to gov. Always think Malaysia is more better than other countries. Each country have particular potential, so don’t underrate other countries. Soon, our countries will down with your nonsense.

        Like or Dislike: Thumb up 0 Thumb down 0
        • alldisc on May 28, 2011 at 11:03 am

          indonesia has 230 million people and they have the economic of scale.

          while malaysia population is only 10% of the numbers. of course, poverty is high there but not many malaysians can afford new car prices, except for 9 years loan.

          if bank negara reduce the loan term to only 5 years, new car registrations will drop to less than half.

          Like or Dislike: Thumb up 0 Thumb down 0
    • TFazuin on May 26, 2011 at 9:26 pm

      Salah tu… do you know their energy staff, i.e. oil and gas people in Exploration & Production is paid 30% higher than Malaysia’s staff? They have a bigger population and more university graduates than Malaysia can produce. On average even the richest people drive only a Toyota Camry, they aren’t very flashy, not until you know how much properties actually costs in Pondok Indah. If you think Bangsar is expensive, imagine 10 times more the price per square feet and with minimum build up space 20-50,000 square feet. Do not talk cock k…

      Like or Dislike: Thumb up 0 Thumb down 0
    • sorry dude, no doubt that Thailand and Indonesia automobil sector already surpass Malaysia.. only the G still in wet dreaming.. siok sendiri

      Like or Dislike: Thumb up 0 Thumb down 0
    • profiler on May 27, 2011 at 11:43 am

      Indonesia have capability to build helicopter and they do have build toyota based expertise there. So please do not under estimate anyone on the earth.

      Like or Dislike: Thumb up 0 Thumb down 0
    • fariz on May 27, 2011 at 4:06 pm

      typical, simply bash without proof…dude, Indonesia economy is booming…read here, please http://www.bbc.co.uk/news/business-13289862

      Like or Dislike: Thumb up 0 Thumb down 0
  • peYno on May 26, 2011 at 8:09 pm

    ha ha.. bye bye malaysia and PERODUA….

    Like or Dislike: Thumb up 0 Thumb down 0
    • MoFaz on May 27, 2011 at 9:51 am

      Do not ask why they didn’t choose Malaysia. I always mentioned that Malaysia is not suitable as production hub for Japanese car makers. Thailand population is double than us, and their Honda factory workers are paid cheaper than China’s. What about Indonesia? they have 10x population which means they could provide cheap labours for a very long time to come. minimum salary in Indonesia : $80 permonth or just RM250!
      what Malaysia should do is to improve our knowledge-based industries, develop more technologies to become the next Japan & Korea.

      Like or Dislike: Thumb up 0 Thumb down 0
  • Barkcrack on May 27, 2011 at 1:01 am

    i hope Daihatsu launched sedan, like D Charade in the past

    Like or Dislike: Thumb up 0 Thumb down 0
  • azrai on May 27, 2011 at 8:01 am

    How about their own Perodua?

    Like or Dislike: Thumb up 0 Thumb down 0
    • Peter on May 27, 2011 at 11:36 am

      Perodua will continue to rebadging each year…For so many years, it have been like this….Over the next few years or even decade….It will still continue to be like tat

      Like or Dislike: Thumb up 0 Thumb down 0
  • scgtimk1 on May 27, 2011 at 3:00 pm

    Hahaha.

    Daihatsu, a brand that cannot survived in Europe ‘sophisticated’ market and have to close down operation.

    Now, they come here to milk every penny from not so sophisticated and 3rd world market like Indon and Malaysia thru perodua.

    Gullible minded people easily duped to by Daihatsu

    Like or Dislike: Thumb up 0 Thumb down 0
 

Add a comment

required

required