Toyota announced that its Indonesian subsidiary, PT. Toyota Motor Manufacturing Indonesia (TMMIN) will increase the annual production capacity at its currently-under-construction Karawang No. 2 Plant to 120,000 vehicles from an originally planned 70,000 vehicles.
Karawang No.2 is an extension of TMMIN's existing Karawang No.1 plant, which produces the Innova and Fortuner for both domestic Indonesian consumption as well as exports to other regional markets including Thailand. Karawang No.2 will go online by early 2013 with an initial capacity of 70,000 units, before to 120,000 in early 2014. TMMIN's present Karawang No.1 plant has an annual capacity of 110,000 units.
The additional capacity provided by Karawang No.2 will be taken up a new line of models, which Toyota did not elaborate further. The new plant will employ 1,500 workers and Toyota expects to invest up to 41.3 billion Yen into the new plant.
Indonesia is now the largest car market within the ASEAN trade bloc, selling over 894,000 cars last year. Besides Toyota, Suzuki is also ramping up its local manufacturing capacity in Indonesia while VW is also starting local production of the T5 Transporter and Multivans in Indonesia.
As for the new models to be made at Karawang No.2, we know that Toyota's IMV model line (Hilux, Fortuner, Innnova) will be replaced sometime around 2014, but that doesn't explain the massive jump in capacity. Rumour has it that Toyota is considering a sub-Vios developing market car, available in both sedan and hatchback form, for sale within the ASEAN region, however that is most likely to be Toyota's entry for the Eco-car segment in Thailand and will have to be made there to qualify for tax incentives.