Toyota Needs New Trade Agreements to Boost Export Volume

KatadataOTO – Japanese manufacturer, Toyota has exported a cumulative 2.8 million vehicle units from Indonesia. The target is to reach three million units this year.

According to Toyota, the current challenge in pursuing an additional 200 thousand units is how to increase export volume.

“Now, to increase that (export) volume, one thing that can help is a trade agreement with destination countries, especially new destination countries,” said Nandi Julyanto, President Director of PT TMMIN (Toyota Motor Manufacturing Indonesia) when met in Central Jakarta, Wednesday (14/05).

Nandi revealed that Mexico is a country with great opportunities. There, the LMPV (Low Multi Purpose Vehicle) Avanza is a favorite.

Photo : Toyota

“Currently, we are limited by a quota with Mexico. We have discussed with the Ambassador, the Ministry of Foreign Affairs, and the Ministry of Finance (regarding the trade agreement),” Nandi continued.

Not only Mexico, Toyota believes there is a need for trade agreements with various current export destination countries. So that the volume can be increased.

The Global South market, including Mexico and Peru, is considered potential. They hope for facilities to be provided, such as establishing a free trade agreement, or FTA.

“If we can have free trade with them, there will be no quota,” he asserted.

For the mutual benefit of both countries, Toyota had proposed that Indonesia import ethanol from Mexico.

For your information, Toyota currently still leads four-wheeled vehicle exports in Indonesia throughout 2024. 

Since starting exports from Indonesia in 1987, as of October 2023, Toyota's cumulative export figure is 2,520,754 units.

Photo : Toyota

Meanwhile, as of 2024, Toyota contributed 166,531 vehicle units to exports. Despite a decrease from 2023 (276,089 units), the brand is still the largest exporter in Indonesia.

Exports of Toyota's HEV (Hybrid Electric Vehicle) electrification line also recorded positive results, increasing from 8,700 units in 2023 to 18,700 units in 2024, a rise of almost 111 percent.

Meanwhile, in 2025, Toyota is targeting the number of electrification exports to increase to 20 thousand units. By 2030, the hope is that 50 percent of exported Toyota vehicles will be hybrid cars.