Indonesia the largest Daihatsu producer in the world

Japanese car manufacturer Daihatsu Motor Co. plans to invest 15 billion yen (126 million U.S. dollars) in its Indonesian plant with an aim to become the country's largest auto maker, local press said Tuesday.

Daihatsu Motor Co., Japans biggest minicar producer, will boost manufacturing capacity in Indonesia and make the Southeast Asian nation its center for overseas exports. The company will boost output capacity in Indonesia to 300,000 vehicles from 210,000, president Ter-uyuki Minoura said in an interview at the companys headquarters in Ikeda-City, Osaka.

Minoura didnt say when the addition would occur. "We will increase the capacity gradually," Minoura said. The "environment is really good" in Indonesia. Daihatsu said on Dec. 24 that it expects overseas output to increase by 20 percent this year to 295,000 units. Production in Indonesia will increase to 108,000 cars from 82,000.

The company, which is 51 percent owned by Toyota Motor Corp., in November boosted its full-year profit forecast, citing "solid" domestic and overseas sales. The company now forecasts net income of V13 billion (US$142 million) and operating profit of 26 billion yen on sales of ¥1.45 trillion for the year ending in March.

Daihatsu exported 3,100 cars in the 11 months through November from Indonesia to countries including Japan, Saudi Arabia and South Africa.That compares with 1,500 vehicles shipped overseas from Malaysia in the 10 months through October, the latest figure available.

The minicar maker may reenter the Chinese market with Toyota, Minoura said without providing details.

Earlier this month Daihatsu canceled a joint venture in China with FAW Jilin Automobile Co. Daihatsu began selling cars in the worlds biggest auto market in 2007 and sold a total of 9,500 until last year, spokesman Shozo Shimizu said Tuesday.