automotive

The Entrepreneur Outlines The Impacts And Opportunities For Indonesia Arising From The Automotive Crisis In Thailand

PT Toyota Astra Motor (TAM), under the auspices of PT Astra International Tbk. (ASII), has stated that the company is not affected by the ongoing automotive industry crisis in Thailand. According to data from the Indonesian Automotive Industry Association (Gaikindo), Toyota Astra Motor imported 23,644 vehicles from Thailand throughout 2024. Several Toyota models assembled in Thailand include the Hilux Rangga (all types), Hilux 4x4, Hiace, Corolla Cross Hybrid, Camry Hybrid, Corolla Altis Hybrid, and Vios. 

Anton Jimmi Suwandy, the Marketing Director of Toyota Astra Motor, indicated that there are no significant issues arising from the automotive crisis in Thailand. Approximately 90% of the Toyota vehicles sold in Indonesia are locally produced. "For imported models, we source not only from Thailand but also from Japan and several other countries, ensuring that our import supply can meet existing demand," Anton stated in an interview with Bisnis on Thursday, January 30, 2025. Furthermore, he mentioned that this year, Toyota will focus on locally produced models that significantly contribute to the company's sales. "We will assess the demand conditions this year, and it is certain that locally produced volume maker models will be prioritized due to their high demand. For imported supplies, we will coordinate with our principals and the Toyota Regional Office," he explained. Throughout 2024, Toyota produced a total of 516,997 vehicles, reflecting a 12.3% year-on-year decline compared to 589,262 units in the same period of 2023. This decrease in production aligns with the weakening of the domestic automotive industry. Gaikindo reported that total wholesale vehicle sales in 2024 amounted to 865,723 units, a 13.9% year-on-year decrease from 1,005,802 units in the same period of 2023. Consequently, Anton expressed hope that both the domestic and export automotive markets would recover this year, leading to an increase in production figures. 

Opportunities for Indonesia  

Meanwhile, Gaikindo assesses that the ongoing automotive industry crisis in Thailand presents an opportunity for Indonesia to boost vehicle sales. Gaikindo's Secretary General, Kukuh Kumara, stated that there is potential for Indonesia to become an automotive production base in ASEAN, as vehicle sales in Indonesia remain the highest in Southeast Asia. "In the future, the automotive industry will be in Indonesia. We know that Thailand is currently facing significant challenges. Therefore, this is a momentum that Indonesia must capitalize on, as we are still leading in ASEAN," Kukuh remarked during a meeting in South Jakarta last week on Thursday (January 23, 2025). He emphasized that it is quite feasible for Indonesia to become a production hub in ASEAN, given its potential human resources. He also mentioned that automotive manufacturers have the option to collaborate with various manufacturing companies (general assemblers) before deciding to establish their own factories. "There are many options in Indonesia; they can utilize general assemblers. Once the volume is substantial, they can proceed to build their own factory. This approach allows for market development simultaneously," Kukuh concluded. In addition to the decline in sales, Gaikindo reported a 14.3% year-on-year decrease in vehicle production in Indonesia, totaling 1.19 million units in 2024, compared to 1.39 million units the previous year. Conversely, vehicle sales in Thailand have plummeted to the lowest level in 15 years,

Tag: ASII Astra International Toyota Astra Motor