JAKARTA. Major automobile manufacture Astra Daihatsu Motor (ADM) may produce 5 million vehicles next year, a move that would strenghten its position as Daihatsu’s biggest production bade outside Japan. Prijono Sugiarto, the president director of ADM’s parent company, Astra International, said the group had approved a plan to produce a new model that would be manufactured locally starting from next year 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.
Starting local assembly in Indonesia in 1987, ADM now runs facilities, including an engine plant, in Sunter, North Jakarta, and Karawang, West Java, with overall annual capacity of 530,000 units it source 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 Dihatsu (51.9 percent) and 1.92 million for Toyota (48.1 percent). The company exports to 48 destinatioms in Asia, the Middle East, Africa, and South America.