Starting From Super Antelope To Later Hybrid Antelope, This History of Toyota Exports Reaches 2 Million Units
Toyota just celebrated the achievement of their 2 million vehicle exports on Tuesday (2/15/2022). PT Toyota Motor Manufacturing Indonesia (TMMIN) was honored by president Jokowi's presence at the event at karawang factory, West Java. This event is also the first release of Toyota Fortuner exports to Australia.
The achievement of Toyota's full vehicle exports from Indonesia of 2 million units is achieved through consistency and a long process to continue to increase competitiveness and gain the trust of the global market. In addition, Toyota Indonesia's export activities are also made possible by the development of the national automotive industry which moved from imports until the early 1970s followed by local component production and became a production and export base. Now the stage of export development that reached an accumulative number of 1 million units in 2018.
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| History of Toyota Exports Reaches 2 Million Units |
President Director of PT TMMIN Warih Andang Tjahjono revealed that the achievement of two million units of exports and prime exports to Australia was part of the contribution to the development of Indonesia's national automotive industry including in maintaining a positive trade balance. Toyota has always strived to increase competitiveness and gain the trust of the global market in export activities.
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"This achievement cannot happen without the support of all parties to the automotive industry. We thank the Indonesian government for providing support, including in bilateral and multilateral cooperation such as cooperation with Australia through IA-CEPA, so that this achievement can be realized properly. We interpret this achievement as a trigger for the spirit to be able to continue to improve export performance," Warih said in his statement.
History of Toyota Exports
Toyota's exports began in 1987 with the first shipment of the third generation Kijang or Super Kijang to Brunei Darussalam. The volume of prime exports is still in a relatively small amount of 50 units per month.
In line with the increase in competitiveness, the best momentum of Toyota's export expansion began with the trust of Toyota Indonesia in the IMV project in 2004. Kijang Innova's strategic position as a production base provides a great opportunity for Toyota Indonesia to expand penetration into the global market in addition to meeting the needs of the domestic market. This is also a challenge to prove Indonesia's capability in becoming a vehicle manufacturer. Since then, Toyota Indonesia's vehicle exports have increased by about 7,000 units per year.
Toyota's efforts to gain the confidence of the export market are moving together with the growth of the Indonesian automotive industry so that Toyota's export activities are growing both for its volume and destination country. Starting from the development of the market to several countries in the Middle East and Latin America, currently Kijang Innova, Fortuner, Vios, Sienta, Veloz, Avanza, Rush, Lite Ace / Town Ace, Agya, and Raize as well as decomposed vehicles (CKD), gasoline engines, components, and production aids.
These products have been exported to more than 80 countries in asia, the Pacific, Africa, Latin America, and the Middle East. Meanwhile, annual export volumes have increased sharply to more than 100,000 units per year since 2012 and even broke through the 200,000-unit mark per year in 2018 and 2019 before the COVID-19 pandemic hit the global economy.
After having corrected up to 30 percent in 2020 due to the pandemic, exports of Toyota-branded whole vehicles from Indonesia in 2021 recorded a figure of 188 thousand units. This achievement shows that T-Brand's export performance has recovered to the level of 90 percent compared to the situation before the pandemic.
This year Toyota Indonesia also plans to conduct local production of Hybrid Electric Vehicle (HEV) models that are also intended for export markets in addition to the domestic market. On the occasion, Industry Minister Agus Gumiwang revealed that this model is Kijang Innova Hybrid.
Global Standard National Products
Agus revealed, as well as exports to Japan, the export of car products to Australia is known to have strict specifications, such as fuel, emissions, and safety. This means that the Indonesian automotive industry already has high competitiveness so that its products are in demand by foreign markets. Agus said Indonesian products have been exported to four continents, namely the Americas, Africa, Asia and Australia.
The national automotive industry has a forward linkage value of Rp 35 trillion and a backward linkage value of Rp 43 trillion in 2021. Toyota itself has a forward linkage value of Rp 19.7 trillion and a backward linkage value of Rp 16.1 trillion. This means that Toyota accounts for 40 percent of the total accumulative manufacturing industry.
Related to the value of investment, the automotive industry was recorded to reclassize Rp 22.5 trillion in 2021 where this record was up 220 percent compared to the achievement of investment in 2020. Toyota Group has committed to increase investment of Rp 28.3 trillion until 2024.
"We are also accelerating the deepening of the structure of the automotive industry so that the value of vehicle TKDN is increasing. Currently local purchases of four-wheeled vehicles or more produced in Indonesia average 20 to 80 percent. Toyota has a local purchase of 75 percent. So the brand can be Toyota but actually a domestic product," agus said.
Therefore, the government pays great attention to the development of the automotive industry through various stimulus. Therefore, the Minister of Industry expressed his gratitude to President Joko Widodo for all the support and direction aimed at awakening automotive industry players in the midst of the pandemic, especially through the provision of Sales Tax incentives on Luxury Goods Borne by the Government (PPnBM DTP). "The results of the PPnBM DTP policy proved to be able to sustain the growth and increase of vehicle production and were able to avoid layoffs in the automotive industry sector, especially the IKM sector," agus said.
The President also gave appreciation to the efforts of the Minister of Industry in continuing to encourage car exports to reach 80 countries on four continents. "What I am happy about is that the local content, TKDN is already more than 75 percent. That is, many components or spare parts, and also accessories in the car are supplied from our SME industries. It is also very good to revive small businesses, which are in our country," concluded President Jokowi.
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