Daihatsu’s overseas business is centered on Indonesia and Malaysia. Car ownership in both countries is increasing as a consequence of economic expansion, and Daihatsu is responding to this demand through the technologies and product appeal it has cultivated in Japan through its development of fuel-efficient, affordable and eco-friendly vehicles.
The Ayla (sold as the Agya under the Toyota brand) and the Axia were designed specifically for Indonesia and Malaysia respectively. Both cars incorporate technologies and expertise found in the Japanese mini vehicle, the Mira e:S. In addition, both cars adopt the global A-segment platform, which Daihatsu developed using its mini vehicle technologies, has evolved in a manner that is optimal for each country.
The key to achieving thorough cost reductions and high-quality—both of which are indispensable to Daihatsu’s method of vehicle manufacture—lies in the company’s independently developed production technologies.
Daihatsu Motor Kyushu Co., Ltd.’s Oita (Nakatsu) Plant No.2, which commenced operations in 2007, is a model plant that uses the SSC concept of “simple, slim and compact” to simplify its facilities and integrate its work processes.
P.T. Astra Daihatsu Motor (ADM) in Indonesia and Perodua Global Manufacturing Sdn.Bhd. (PGMSB) in Malaysia utilize production systems that incorporate a version of the Japanese SSC concept that has been optimized for local markets.
In order to expand the SSC concept overseas, Daihatsu has succeeded in adapting the approach that underpins high-quality Japanese manufacturing to suit local environments.
More specifically, the companies have adopted Quality Gate—a system which, instead of sending defective products downstream, stops the line and fixes the defect there and then—and has established bright, quiet, and comfortable working environments that include measures to combat the heat.
Seeking to develop the ability to create high-quality and internationally competitive vehicles, PGMSB commenced operations at a new plant in August 2014.
The new plant produces the latest generation of the Axia, which became the first-ever compact car to meet the Malaysian government’s Energy Efficient Vehicle requirements. The Axia has for this reason been widely acclaimed, and was developed to be an internationally competitive model after the AFTA (ASEAN Free Trade Area) and TPP (Trans-Pacific Partnership) free trade agreements came into force.
The technologies and expertise that Daihatsu has forged through fierce competition in the Japanese mini vehicle market is being leveraged in an optimal manner in both Indonesia and Malaysia, and the company believes its experience will contribute to the development of the automotive industries in both countries.
Including consigned OEM vehicles, Daihatsu’s production volumes in Indonesia stand at approximately 510,000 units in FY2019, making it the largest automobile manufacturer in the country.
In order to promote local development, the company has also established an R&D Center—complete with the country’s first-ever automobile test course—at the Karawang Assembly Plant, which commenced operations in October 2012.
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Perodua, the national car manufacturer established through the joint investment of the Malaysian government and Daihatsu, is steadily expanding its business and boasts the leading share of the automobile market in Malaysia for 14 years in succession. In order to strengthen its international competitiveness, Perodua intends to continue improving its business structure and reducing costs.
*The Perodua fiscal year runs from January to December.