Toyota expands in Indonesia but maintains Thailand production base

Thansettakij•Economy•5d ago

Reader Briefing

Toyota is expanding its production capacity in Indonesia to support market growth while maintaining its established manufacturing base in Thailand.

•Toyota is increasing investment in Indonesia to serve both domestic and export markets.
•Industry sources and Bank of Ayudhya state that Toyota's expansion in Indonesia is not a relocation of production from Thailand.
•Thailand remains a key ASEAN production hub due to its comprehensive supply chain and industrial ecosystem.
•Bank of Ayudhya continues to support Japanese clients expanding within ASEAN via its network and MUFG.

•Indonesia has continuously attracted global automakers, including Toyota, to increase investment in its market.
•Toyota's expansion in Indonesia is intended to increase production capacity for the Indonesian domestic market and exports, particularly for multipurpose and family vehicles.
•Thailand maintains a more diverse production base covering pickup trucks, passenger cars, and multipurpose vehicles.
•Kohei Omori of Bank of Ayudhya stated that there is currently no widespread trend of Japanese companies relocating production bases out of Thailand.
•Japanese companies utilize regional diversification strategies to reduce risk by not relying on a single country.
•Japanese corporate clients account for approximately 10% of Bank of Ayudhya's total loan portfolio.
•Bank of Ayudhya is prioritizing support for future industries such as semiconductors, data centers, and startups to attract new investment into Thailand.
•Bank of Ayudhya and MUFG utilize their networks to assist Japanese clients in expanding business across ASEAN markets.

Full article content is available on the original source.

Toyota(โตโยต้า)ℹ️

A major automaker expanding its production base in Indonesia while maintaining operations in Thailand.

Bank of Ayudhya(ธนาคารกรุงศรีอยุธยา จำกัด (มหาชน))ℹ️

A financial institution providing loans and business matching for Japanese investors in Thailand.

A financial network used in conjunction with Bank of Ayudhya to support Japanese clients expanding in ASEAN.

Indonesia(อินโดนีเซีย)ℹ️

An ASEAN country attracting automotive investment and specializing in multipurpose and family vehicle production.

Thailand(ประเทศไทย)ℹ️

A key ASEAN production hub with a diverse automotive industry and a long-standing supply chain ecosystem.

Vietnam(เวียดนาม)ℹ️

An ASEAN country where some Japanese companies are expanding their business bases.

ASEAN(อาเซียน)ℹ️

The regional bloc where Japanese companies are diversifying their production and market bases.

Kohei Omori(นายโคเฮอิ โอโมริ)

President of the Japanese Corporate Banking Group at Bank of Ayudhya.