TOKYO, Aug 5: Japanese automaker Daihatsu Motor Co. Ltd. said on Monday it hoped to increase investment, production and sales in Southeast Asia to cut costs and meet a growth in demand.

The firm, a subsidiary of Japan’s Toyota Motor Corp., said it was considering increasing a stake in Indonesian unit PT Astra Daihatsu Motor from 40 percent.

We also hope to boost capacity there, said a Daihatsu spokesman, declining to give a specific target. The Indonesian plant currently makes 25,000 vehicles a year.

Additionally, we are looking to raise the percentage of car parts made locally in Indonesia from 60 per cent at present, he said, adding this would cut costs.

Annual output at the factory is projected to double to 50,000 vehicles by 2005, the Nihon Keizai Shimbun newspaper reported earlier.

Daihatsu would boost its stake in the Indonesian factory to 60 per cent from 40 per cent as early as this year and raise local part procurement to 80 per cent, the financial daily said, citing company sources.

At present the automaker makes 40 per cent of all parts used by the Indonesian factory in Japan, said the spokesman.

Daihatsu aims to raise the output capacity at another plant in Malaysia by 20,000 vehicles to 150,000 by 2005, the spokesman said, adding the firm also wanted to increase the volume of vehicles sold outside Japan.—AFP