Toyota Indonesia Ships 2.5 Million T-Brand Vehicles to Over 100 Countries

For more than three decades, Toyota Indonesia has embarked on an impressive journey of exporting over 2.5 million T-brand vehicles to nearly 100 countries across the globe. This remarkable achievement has solidified Toyota Indonesia's position in the national automotive industry, contributing significantly to the country's trade balance. However, this journey, which began as an import venture, has been anything but an instant success. It has been a long and enduring commitment to enhancing Indonesia's trade balance.

The Journey of National Automotive Exports

The journey of Toyota Indonesia's automotive exports began in 1987 with the launch of the third-generation Kijang, initially shipped using traditional methods to Brunei Darussalam and select countries in the Asia-Pacific region. Over the years, the export performance of T-brand vehicles continued to evolve, with additional models introduced. By 2017, Toyota Indonesia had achieved an impressive milestone by exporting 200,000 units, marking the highest volume in the past five years. Beyond exporting fully assembled vehicles, Toyota Indonesia has also shipped completely knocked-down (CKD) units, engines, components, and production support equipment (dies & jigs). Since 2019, converted vehicles such as cash carriers, well-cabs, and patrol cars have also been exported to international markets.

In 2022, Toyota Indonesia achieved a significant milestone by becoming the first country to open export channels to Australia. This event also marked the export of two million Toyota Indonesia vehicles, commemorated in a ceremony at the Karawang factory and attended by the President of Indonesia, Joko Widodo. Furthermore, 2022 witnessed the success of Indonesia's competitive human resources in manufacturing the 7th-generation Kijang Innova Zenix, available in Internal Combustion Engine (ICE) and Hybrid Electric Vehicle (HEV) variants, incorporating locally assembled batteries. As a high-tech automotive export product, Kijang Innova Zenix garnered positive feedback from global consumers and made its way to Asia, the Middle East, and even Latin America. Capitalizing on the growing enthusiasm for electrically enhanced vehicles, Toyota Indonesia launched the Yaris Cross in 2023, another HEV, manufactured in the TMMIN factory in Karawang. Following in the footsteps of the Kijang Innova Zenix, the Yaris Cross has also received a warm reception, meeting global demand for environmentally friendly transportation.

“This accomplishment in Indonesia's high-tech automotive industry is credited to a robust supply chain, involving thousands of companies contributing to its success, providing livelihoods for over 300,000 employees. The role of the national automotive industry as a labor-intensive sector is paramount. The export performance of the national automotive industry represents significant potential for Indonesia to further enhance its contribution to the government's trade balance. It showcases the nation's capabilities not only in terms of its large population but also in terms of its competitiveness in producing high-tech automotive products for the global market” as emphasized by Bob Azam, Vice President Director of PT TMMIN.

Automotive Exports as a Pillar of the Trade Balance

Amid the global economic uncertainties, automotive export performance has emerged as a strong pillar supporting a positive trade balance for the Indonesian government. The national automotive industry is a competitive sector that employs hundreds of thousands of workers and contributes up to 4% of the country's total GDP. This strengthens the domestic economy by efficiently utilizing the country's densely populated workforce. According to data from the Central Bureau of Statistics (BPS), Indonesia's population has already reached 278.69 million as of mid-2023, reflecting a 1.05% increase from the previous year when it stood at 275.77 million.

For the January to September 2023 period, according to GAIKINDO data, Toyota Indonesia recorded exports of 213,901 units, marking a 2.5% increase compared to the same period in 2022, where 208,775 units were exported. In the same period, GAIKINDO reported a total of 379,498 completely built-up (CBU) units exported. Toyota Indonesia accounted for 56% of the total export performance of Toyota-branded vehicles, including HEV Kijang Innova Zenix and Yaris Cross. The more than 39,000 units of Kijang Innova Zenix and Yaris Cross, equipped with electrification features, have been well received both domestically and internationally.

"Vehicles ranging from ICE technology to electrification, as high-tech and eco-friendly products created by our nation, have gained favorable responses from consumers. Furthermore, electrified variants like the Kijang Innova Zenix and Yaris Cross have experienced increasing demand in various export destinations, including the ASEAN region, GCC, Central South America, and Oceania. This not only strengthens the national automotive industry but also solidifies Indonesia's position as one of the largest bases for Toyota vehicle production and export activities on the global stage," concluded Bob Azam.

Performance Achievement of Toyota Brand Exports (Jan-Sep 2023)