Daihatsu Motor to produce 5 million cars

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JAKARTA. Major automobile manufacture Astra Daithatsu Motor (ADM) may produce 5 million vehicles next year, a move that would strengthen its position as Daithatsu’s biggest production base outside Japan. Prijono Sugiarto, the president director of ADM’s parent company, Astra International, said the grup had approved a plan to produce a new model that would be manufactured locally starting from next yaer to help meet its target. The development of the model will cost around Rp 1 trillion (US$76.06 million).

In line with the plan, ADM would try to gradually boost its exports until it reached 30 percent of total production from a current level of 15 percent, Prijono added. “I think we are on the right track to achieve that,” Prijono said Thursday during a ceremony to mark ADM’s production of 4 million units.

Strating local assembly in Indonesia in 1987, ADM now runs two facilities, including an angine plant, in Sunter, NOrth Jakarta, and Karawang, West Java, with overall annual capacity of 530,000 units it sources autoparts from 216 first-tier suppliers and 1,105 second-tier suppliers.

Apart from making cars for Daihatsu, the plants also assemble vehicles for Toyota. As of May, ADM has made 2.08 million vehicles for Daihatsu (51.9 percent) and 1.92 million for Toyota (48.1 percent). The company exports to 48 destinations in Asia, the Middle East, Africa, and South America.

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