The document discusses Toyota's strategy and tactics for expanding in Southeast Asia. The strategy was to prepare automobile industry infrastructure and grow local suppliers. Tactics included localizing production through projects like IMV to reduce costs and increase quality exports. This supported governments and grew the regional automobile industry. The goal was to produce vehicles locally like the Toyota Kijang in Indonesia and Tamaraw in the Philippines to meet customer needs.

2. Strategy
Tactic
Value

3. Toyota Kijang
• “Kijang” – an Indonesian word for DEER
or MUNTAC
• Minibus manufactured by Toyota Astra
Motors
• Innova or Tamaraw in the Philippines

4. • Produced since 1977 up to present
• There are already six generations of
Toyota Kijang
• High seating capacity, high ground
clearance, rugged suspension, and ideal
for poor roads and extended families

5. Toyota in ASEAN
STRATEGY
Foundation: Preparing the automobile industry
infrastructure and finding/growing suppliers
Reasons:
• Large families
• Business and family transport
• Unpaved roads
Goal: Produce items locally

6. Toyota Tamaraw Philippines (1976)

7. Toyota Kijang Indonesia (1977)

8. Growth of Toyota in ASEAN
• ASEAN Free Trade Agreement
Country based to regional production
Tariff exemptions
Mass Production

9. Development of Toyota
• IMV project
Cost-reduction
Quality exports
Cut in Japanese car parts imports
Support of government and local communities

10. Tactic: ASEAN Approaches
• LOCALIZATION
“...thorough localization is necessary to
making further progress in intra- and
extraregional exports. We therefore are
maximizing local R&D functions, and seek to
achieve local/regional procurement rates of
100% at the earliest possible stage”

11. Strategy
Tactic
Value

12. Tactic: ASEAN Approaches
• IMV PROJECT
“...we will follow the IMV project by
strengthening our production and supply
bases for compact vehicles in Asia, move
toward thorough localized procurement,
and ensure and enhance our cost
competitiveness”

13. Tactic: ASEAN Approaches
• DEFINING “ASIA”
“...does not include China, India, Pakistan,
Bangladesh, and Japan...expected to recover
from the impact of the Thailand floods, with
demand rising above that of 2011

14. Strategy
Tactic
Value

15. Value: PERCEPTION
• Three Ovals logo
“...three ellipses symbolizing the heart of
the customer; the product and the great
advancements in the technology the
company has made...”

16. • “...red and white, both speaking of their
own beauty. The ellipses are made in
either red with a white background or
seen as metallic; sequentially giving the
Toyota logo a sleek and an elegant
look...”