Toyota Indonesia considers local production of Avanza hybrid
Bisnis Otomotif, 15 Oct '26
Toyota Motor Manufacturing Indonesia (TMMIN) is considering domestic production of the Avanza hybrid, although implementation would depend on resource availability and the homologation process.
The potential addition of the model would expand Toyota's locally manufactured hybrid vehicle range, which currently includes the Innova Zenix hybrid, Veloz hybrid and Yaris Cross hybrid, produced at its Karawang manufacturing facility in West Java.
TMMIN President Director Nandi Julyanto stated that demand for hybrid electric vehicles (HEVs) in Indonesia was increasing. Speaking at ICE BSD in Tangerang on October 14th, 2026, he said, "Demand for hybrid models is increasing. However, the Avanza hybrid is not yet available."
According to Nandi, the Avanza and Veloz share a similar vehicle platform, making the development of a hybrid system for the Avanza technically feasible. However, introducing the technology would require additional homologation procedures and resources, which would affect the company's ability to expand local production.
"Currently, our resources are limited for carrying out additional homologation, including coordination with facilities in Thailand and Japan. Therefore, our focus remains on the Veloz hybrid," Nandi explained.
TMMIN had previously considered export opportunities for the Veloz hybrid, which is manufactured in Indonesia. However, potential export destinations remain limited, partly because vehicle specifications differ between markets, including steering position. These differences affect the suitability of Indonesian-manufactured vehicles for export to particular markets.
Regarding the possibility of expanding its locally manufactured hybrid vehicle range, Nandi said, "Going forward, we do not rule out developing other models, including the Avanza hybrid. However, such a move would require consideration of market requirements, homologation requirements and resource availability."
TMMIN's production figures reflect the scale of its local manufacturing operations for the Veloz hybrid. By the end of August 2026, the company had produced 15,737 units of the model since assembly began in Indonesia. Domestic orders for the Veloz hybrid had also exceeded 19,000 units. These vehicle order forms (SPKs) were recorded from the opening of orders in November 2025 to August 2026.
Toyota manufactures several other vehicle models in Indonesia for domestic sales and export markets. These include the Avanza/Veloz, Raize, Yaris Cross, Fortuner and Agya/Wigo. The Avanza and Veloz account for the largest share of Toyota's vehicle exports, reflecting the role of locally manufactured models in the company's export operations.
Toyota's vehicle exports increased by 2.5% in January-September 2026 compared with the number of units exported during the same period in 2025. During this period, Toyota accounted for approximately 60.2% of Indonesia's total completely built-up (CBU) vehicle exports.
The potential introduction of the Avanza hybrid would therefore depend on TMMIN's available resources, the additional homologation requirements and market considerations, while the Veloz hybrid remains the company's current focus for hybrid vehicle production in Indonesia.