Leading Japanese automaker, Toyota Motor Corp, has reportedly revealed its plans to invest $1.80 billion (27.1 trillion rupiah) in Indonesia over the next five years to produce electric vehicles (EVs).
Notably, the southeast Asia-located country aims to emerge as a major producer and exporter of electric vehicles, by processing and utilizing its abundant supplies of nickel laterite ore in lithium batteries.
Several other global companies, including LG Energy Solutions, which is a unit of LG Group and South Korea’s Hyundai Motor Group have already announced considerable investments in this area.
Indonesia’s chief economics minister, Airlangga Hartarto, stated that Toyota has invested nearly $938.5 Mn (14 trillion rupiah) in Indonesia since 2019 and expressed belief on the demand for EVs, which would continue to rise in Indonesia and ASEAN.
For the record, Indonesia, with a population of 270 million is aiming to sell only electric cars and motorcycles by 2050 in a bid to cut carbon emissions by replacing vehicles powered with combustion engines.
By 2030, the country anticipates having 13 million electronic motorcycles, inclusive of converted ones and 2.2 million electronic cars on its roads.
According to sources, Toyota intends to produce various types of hybrid EVs over the next four years.
Speaking on this initiative, Vice Chairman of Toyota, Shigeru Hayakawa revealed that with this additional investment, the Indonesian government will recognize the company’s commitment to investing in EVs.
Apparently, Toyota has not disclosed the details of the investment.
It has been reported that Mitsubishi Motors Corp would invest nearly $670Mn (10 trillion rupiah) in Indonesia to begin producing hybrid and battery EVs, between 2022 and 2025.
It is also imperative to note that the Japanese automakers’ investment commitments come along the heels of the Indonesian President, Joko Widodo’s Japan visit this week to promote economic ties.