In a significant development for the automotive industry, Toyota Indonesia is preparing to launch a new hybrid electric vehicle (HEV), likely to be named the Toyota Veloz Hybrid. This announcement was made by Bob Azam, Vice President Director of PT Toyota Motor Manufacturing Indonesia (TMMIN), during a discussion about optimizing the market potential for exports, particularly to Mexico, where existing models like the Avanza have garnered popularity.
Azam noted, "So models like the Avanza are actually well-liked in Mexico. Toyota has a factory there, but for other models that are also exported to other countries. Therefore, we can fill (it with Avanza/Veloz)." This sentiment aligns with Toyota's broader strategy to amplify its presence in global markets while also addressing environmental concerns.
In 2024, demand for environmentally friendly products surged, leading to a substantial increase in HEV exports. Azam reported that the exports of models such as the Kijang Innova Zenix Hybrid and the Yaris Cross Hybrid more than doubled, increasing from 8,792 units to 18,553 units year-over-year. He explained, "We see that in the export market, most are requesting hybrids due to infrastructure factors or other reasons. For example, in South America, many are requesting ethanol because it can also be used in hybrid cars, thus reducing emissions and improving fuel efficiency."
As Toyota aims to expand the adoption of hybrid technology across a wider range of products, Azam highlighted the importance of government incentives in accelerating the rollout of new models. He remarked, "Loan hybrid cars are usually fitted into luxury vehicles. Now, we have started to bring this to mid-range models like the Yaris Cross. The core idea is that all our models are pointed in that direction, depending on government incentives. The sooner the incentives come, the quicker we can launch."
Moreover, he stated, "Therefore, we must build the ecosystem such as batteries and other electrification components. Our target for 2030 is that 50% of our exports will be hybrid. From Indonesia, that 50% will be in hybrid form." The shift towards hybrid models is a clear indication of Toyota's commitment to reducing emissions and contributing to sustainable automotive practices.
This emphasis on sustainability resonates with the global automotive trend, as more consumers and governments advocate for greener technologies. The potential introduction of the Veloz hybrid model follows the registration of a new engine code under governmental regulations, raising excitement among consumers.
Henry Tanoto, Vice President Director of PT Toyota Astra Motor (TAM), commented on the uncertainty regarding model specifics and timings. He expressed, "If I cannot answer directly. But Toyota wants to use a multi-pathway approach to enter larger segments, fundamentally to reduce emissions through environmentally friendly technology that can be enjoyed by many people. But if asked what model and when, we will wait, but our direction is towards that way."
In addition to Toyota's announcements, Indonesian car exports have shown positive growth recently. In February 2025, Completely Built Up (CBU) car exports from Indonesia increased, reflecting a recovery in the automotive market following recent downturns. CNBC Indonesia reported on March 18, 2025, that this growth signals a resurgence in the sector, which is crucial for Indonesia's economic resurgence as well.
As the automotive industry navigates the complexities of global trade and environmental compliance, Toyota's strategies resonate alongside the increasing demand for hybrid and electric vehicles. With the emphasis on creating a sustainable ecosystem for production, the company is well-positioned to meet future challenges and market demands.
The movement towards a hybrid future is not merely a business strategy; it encapsulates a commitment to a responsible and sustainable automotive industry. This development highlights the intricacies of market demand, governmental support, and corporate responsibility in shaping the automotive landscape in Indonesia and beyond.
As the automotive world watches Toyota's next moves, consumers and stakeholders alike remain eager for the upcoming Veloz Hybrid and the further expansion of Toyota's hybrid offerings. The commitment to sustainable practices, paired with a responsive market strategy, is set to define Toyota's role in the evolving landscape of the Indonesian automotive industry.
Although specific details regarding launch timelines remain unconfirmed, the prospect of a hybrid future for Toyota Indonesia is on the horizon, emphasizing the crucial intersection between innovation and ecological sustainability in the automotive industry.
