9/13/11 (AEIN) Japanese automaker Toyota plans to increase its production capacity in Indonesia and take other steps to expand sales of its vehicles in the same country. Toyota President Akio Toyoda announced these plans at a news conference, Radio Japan reported on Tuesday.
Toyota will construct a second automobile production facility next to its existing factory in the southeast Asian nation. This will boost the automaker's Indonesian production capacity by sixty percent. The company will also introduce a new Indonesia-specific model by 2013.
By manufacturing automobiles in Indonesian rather than Japanese factories, Toyota can reduce labor and shipping costs when selling vehicles to Indonesian customers. It will also gain favor with the Indonesian public by benefiting the economy and providing employment.
With the world's fourth largest population and a relatively prosperous economy, Indonesia has become an important auto sales market. The number of passenger vehicles has doubled in the past fifteen years and created significant air pollution, according to the Jakarta Post.