JAKARTA, Major automobile manufacturer Astra Daihatsu Motor (ADM) may produce 5 million vehicles next next year , a move that would strengthen its position Daihatsu’s biggest production base 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 trilion (US$76.06 milion).
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 milion units.
Starting local assembly in Indonesia in 1978, ADM now runs two facilities, including an engine plant, in Sunter, North Jakarta, and Karawang, West Java, with overall annual capacity of 530,000 units it sources autoparts from 2016 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 Daihatsu (51. 9 percent) and 1.92 million for Toyota (48.1 percent).The company exports to 48 destinations in Asia, the Middle East, Africa and South America.