Toyota Motor Corp. will invest about ¥210 billion ($1.9 billion) through 2023 in Indonesia, mainly to develop hybrid cars, people close to the matter said Saturday.
The planned investment in one of the largest auto markets in Southeast Asia is also meant to prepare the Japanese automaker for future growth in demand for completely electric vehicles, they said.
Toyota President Akio Toyoda explained his company's investment plan for the country to Indonesian government officials at their meeting earlier in the week, the sources said.
In 2018, Toyota produced about 200,000 cars in Indonesia.
The company said earlier this month it will move up its target to achieve annual global sales of 5.5 million units of electric and other eco-friendly vehicles by five years to 2025.
The announcement came after Toyota said in late 2017 it would aim for EVs to account for more than half its global sales by around 2030 — or about 5.5 million units, including 1 million EVs and vehicles using fuel cell technology, which generates electricity from hydrogen and oxygen.