Toyota is increasing its presence in the Southeast Asian electric vehicle market by expanding production in Indonesia and Thailand.

The company is generating revenue from its electric vehicles (EVs) and is establishing new manufacturing facilities in these two countries, according to Electrek.

The global automotive market is shifting towards EVs. They are generally less expensive to fuel and maintain, quieter in operation, do not produce smog, and have a lower environmental impact.

Although concerns exist regarding the environmental effects of mining materials for EV batteries, the extraction of fuels required for internal combustion engine vehicles involves larger quantities of polluting resources, resulting in a greater overall environmental burden.

Indonesia is a market where EV adoption is increasing, and the government has introduced measures to attract automakers.

The value-added tax has been reduced to 1% for vehicles with at least 40% local content, compared with the standard 11%. Domestic production also allows companies to avoid import tariffs introduced last year.

This expansion enables Toyota to maintain its 30% market share amid competition from Chinese manufacturers and supports Toyota Indonesia's exports, which currently reach over 80 countries.

Hiroyuki Ueda, president director of Toyota-Astra Motor, as cited by Electrek, stated that producing EVs in these markets is part of Toyota's "multi-pathway strategy."