Oil Prices Soar, Toyota Predicts Car Exports Will Soar 50 Percent This Year

JAKARTA - PT Toyota Motor Manufacturing Indonesia projects that car exports will soar this year, supported by rising oil prices in major export destination countries such as Saudi Arabia, so that demand for cars will increase.

"We are targeting Toyota car exports to increase by around 50 percent this year," said Director of Corporate Affairs of PT Toyota Motor Manufacturing Indonesia (TMMIN) Bob Azam, quoted from Antara, Monday, April 4.

He said the increase in exports was supported by strong demand from major export destinations in the Gulf countries, such as Saudi Arabia, which has benefited from rising oil prices this year.

In addition, he continued, also from other export destination countries whose economies have started to recover after being affected by the COVID-19 pandemic, such as the Philippines and countries in South America.

"Economy in these countries is starting to rise. Besides, they haven't imported for a long time and need a new car as a replacement," said Bob.

He estimates that in 2022 Toyota car exports will reach above 284.000 units, an increase of about 51 percent compared to 2021 which reached 188.800 units.

He admitted, the increase was mainly supported by export demand for Toyota Veloz last year, which underwent a model change. More than 50 percent of Toyota's exports will be contributed by the Veloz small multi-purpose vehicle (LMPV).

From January-February 2022, Toyota Indonesia's exports have reached more than 44.000 units, up 31 percent compared to the same period last year. It even increased by 44 percent compared to the achievement before the 2019 pandemic period.

In the first two months of 2022, Toyota's car exports consisted of SUV (Sport Utilities Vehicle) variants, namely Fortuner, Rush, and Raize reaching 22.300 units, MPV variants namely Kijang Innova, Sienta, Avanza, Town/Lite Ace, and Veloz reaching 11.800 units. as well as sedan, hatchback, LCGC variants such as the Vios, Yaris, and Agya reaching 9.900 units

Bob Azam is optimistic that the car export market will improve this year. Moreover, now there is also a new export destination, namely Australia in line with the implementation of the Indonesia Australia Comprehensive Economic Partnership Agreement (IA CEPA).

"Currently, Toyota's export contribution reaches around 80 percent of national car exports," he said. Every year, the Indonesian automotive industry is expected to be able to export around 300 thousand units.