Toyota Astra Motor

TAM was established in 1971[2] as an importer for Toyota vehicles and transformed into a distributor company for the same brand vehicles a year later. Since Toyota's first entry into the Indonesian automotive market through TAM, Toyota had been known in the market through various car models. The earliest models introduced by TAM were Corona and Corolla. Corona, a mid-size family sedan, included the T-series, which periodically changed models in 1974, 1978 and every other four years until in 1998 when it was discontinued to undergo a model change to Camry.

The Corolla was also introduced in Indonesia in the early 1970s, and entered its third generation by 1975. This best-selling compact sedan in the world had captured the Indonesian market at the time. Toyota had created a new trend in sedan design: small, compact, and with rear-wheel drive. Both Corona and Corolla were highly accepted in the market during the early years. Later, other Toyota sedans entered the Indonesian market, such as the Starlet – a small hatchback, and was discontinued in 1998, Soluna – a subcompact sedan from Thailand was launched in 2000 and discontinued in 2003, and Cressida – a large-sized sedan introduced in 1977 and discontinued in 1992, and Toyota Crown.

TAM also manufactured cars in other segments. In the 4x4 class, Toyota introduced Land Cruiser which initially produced in 1950 and entered the Indonesian market in mid-1970s and was colloquially called “Toyota Hardtop”. This car was not only used for individual purposes, but also for industrial and military purposes. Specifically for commercial purposes, Toyota launched Toyota Dyna and Toyota HiAce; the latter was discontinued, only to return in 2012 as a large van. These models had been highly accepted in the Indonesian market in the previous 26 years, but the Toyota's real success in Indonesia started in 1977 when the Kijang was launched in Jakarta. This multi-utility car was known for its easy and low-cost maintenance and later became a legendary success in the Indonesian automotive market.

The first generation Kijang sold only 1,168 units during 1977, but a year later it increased to 4,629 units, four times as many as the year before.[3] The number continued to rise during the next several years. The second generation was launched in 1981 with a production volume of 19,323 units in 1985. The third generation was later introduced in 1986 and sold 82,687 units in 1987,[4] the largest sale ever in Kijang's history. Around 500,000 Kijang had been sold in Indonesia until 1995.

On 31 December 1998, TAM merged with three other companies: PT Multi Astra (a manufacturing company), PT Toyota Mobilindo (body parts manufacturing company), PT Toyota Engine Indonesia (specializing in engine manufacturing) with the name of PT Toyota Astra Motor.[5] Toyota claimed the merger was carried out with the goal to improve efficiency, to meet increasing consumers’ demand for quality, and to effectively face current competition in automotive industry. PT TAM initially consisted of two major departments, the production and marketing departments. The production departement, later in 2003 became PT Toyota Motor Manufacturing Indonesia,[6] conducted functional activities included casting, engine, stamping and assembling automobiles. Some components were directly supplied from Japan by Toyota Motor Corporation and the remaining was supplied by local components suppliers. Meanwhile, the marketing division was divided into overseas and domestic markets.

In 2003, TAM launched its first collaboration project with Daihatsu, the Avanza. The Avanza is developed as an entry-level compact MPV cheaper and smaller than Kijang. The car is manufactured entirely by ADM. Initial sales target was 2,500–5,000 units per month, but the actual sales achievement exceeded 15,000 units. A year later, the Kijang evolved as Kijang Innova, featuring modern look and modern features such as ABS and climate control. Kijang Innova is built above the IMV platform, which also spawned the Fortuner SUV and Hilux pick-up.

With the intention of establishing an integrated plant, TAM established a new manufacturing plant together with by parts and engine manufacturing plants. Currently, TAM was supported by two centers of production (Sunter and Karawang) and one parts center, the largest in Indonesia, which had been computerized since 1982 and was directly on line with Toyota's parts center in Haruhi, Japan. Factory in Karawang (first operated in 1998 with total investment Rp 462.2 billion) was considered to be one of the most advanced in Indonesia, built in 100 acres land with a test course and modern installation for environmental safety purposes.[2]