Toyota to Make $1.8 Billion EV Investment in Indonesia
- July 27, 2022
- Posted by: Quatro Strategies
- Category: Manufacturing
Indonesian Economy Ministry announced on Wednesday that Toyota plans to invest 27.1 trillion rupiah ($1.80 billion) in Indonesia for the next five years to produce electric vehicles (EVs). Indonesia has been looking to become a global hub for producing and exporting EVs through processing its rich nickel supplies used in lithium batteries.
Other global players in the industry have already announced investment in this area including South Korea’s Hyundai and LG Energy Solutions.
Indonesia’s chief economics minister Airlangga said in a statement that Toyota had invested 14 trillion rupiah in the country since 2019. He added his belief that demand for EVs in the ASEAN and in Indonesia will keep growing.
As part of its effort to reduce carbon emissions, Indonesia, which has a population of 270 million, aims to sell only electric cars and motorcycles by 2050 to replace vehicles powered by combustion engines.
The government has also set a target of having 13 million electric motorcycles and 2.2 million electric cars on its roads by 2030.
According to the ministry statement, Toyota plans to produce various types of hybrid EVs in Indonesia over the next four years.
Indonesia also announced on Tursday that Mitsubishi Motors was planning to invest about 10 trillion rupiah in Indonesia between 2022 and 2025 to produce hybrid and battery EVs.
The investment commitments by the Japanese car makers come as Indonesian President Joko Widodo visits Japan this week to promote economic ties.
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