I saw that a brand new Toyota avanza costs arround 14k euros in Indonesia.

This seems very cheap for me. For sure toyota saves on some parts so that the Cars can be Sold more cheaper over there.

Does anyone know how these Toyota can be sold so cheap in Indonesia?

  • fikri_inter-business@alien.topBEnglish
    1·
    1 year ago

    1. Exchange rate obviously. I converted 14k eur to idr, it’s not cheap at all. Only 10-20% of the people in jakarta make that amount annually. They won’t be able to buy them cash

    2. Many comments here are not aware of the existence of avanza. That’s because toyota in indonesia is only the brand. At least 80% of the production from conceptual design, raw material, to spare parts are designed, engineered, and produced locally by astra. In the avanza case, it’s a toyota-daihatsu joint. There are some toyota models that are designed based on the japanese concept and produced in indonesia, but they are entitled to a progressive regional government levy/fee. Corolla cross and vellfire are some popular examples

    3. Implication of #2 is lower production costs, from R&D, labor, bill of materials and components, to supply chain