How did the Toyota Avanza become one of the most dominant cars in Indonesia?

Basically, Indonesians don’t have a choice, and in the early 2000s, we were stuck with this car if we had to choose a 7-passenger MPV car.

For decades, Indonesians have loved the Toyota Kijang. This OG MPV from Toyota seats 7 and was crazy popular because it was cheap and easy to fix.

Then there’s the Isuzu Panther, the Kijang’s arch-rival. It’s all about that diesel engine, which is super economical, even though it’s not a speed demon. But hey, more torque for hauling the whole kampung, right? Plus, it’s still cheaper to run than the gas-guzzling Kijang (although Toyota did finally come out with a diesel version later on, but that’s another story).

Finally, we have the Mitsubishi Kuda, which rolled out in the late 90s. This was the choice for people who weren’t feeling the Kijang or the Panther’s, uh, interesting, driving style. It was a solid option and people dug it.

The problem is, these cars haven’t exactly gotten cheaper with age. People still love the Kijang, so the price keeps going up, making it less and less “the people’s car” they keep talking about. The Panther’s diesel engine isn’t exactly known for comfort, and the Mitsubishi Kuda? Well, some folks still see it as an outsider brand. Maybe Toyota figured this out in the early 2000s, because the Kijang just kept getting pricier.

In rolls the Avanza — a total game changer. Back then, the Kijang ruled the MPV roost, but its price tag was ouch-worthy, especially for the base trim that had already crossed over 100 million rupiah. Enter the Avanza, a brand new “LMPV” (low MPV) concept by Toyota — basically a smaller, more affordable MPV with all the essentials. We’re talking 7 seats, decent fuel economy, all at a price that didn’t break the bank (under 100 million rupiah for the base trim!).

Let’s face it, Indonesians love a good 7-seater. The Avanza was a breath of fresh air for anyone wanting a car back then. It was cheap (well, affordable at least), comfortable enough for its time, super economical, and parts were easy on the wallet. No wonder it became a favorite.

Fun fact: The launch price was around 89.5 million rupiah, while the average Indonesian salary was still 1–2 million per month. Meanwhile, the Kijang was getting pricier by the day. Even their base trim with a carbureted engine and zero bells and whistles was reaching 90 million! The Avanza, on the other hand, came with a fuel-efficient and decent-powered injection engine. Plus, being smaller and lighter, the smaller engine handled the car just fine, unlike the Kijang where the engine struggled with its weight.

Looking for something even cheaper? Daihatsu Xenia, the Avanza’s twin, was there for you in 2003. At a mere 60 million rupiah, you get a 3-cylinder, 1.0-liter engine. Forget A/C, power steering, or windows; it was manual everything, with just a cassette tape for entertainment. But hey, for the price, people weren’t complaining.

The Avanza and Xenia were exactly what Indonesians needed back then — a cheap and reliable 7-seater from a trusted brand. For a while, these two dominated the streets, becoming the best-selling cars until newer models eventually took over.

So, the Toyota Avanza and Daihatsu Xenia? Those were the rides back in the good ol’ days. They weren’t fancy, but they sat 7 people in decent comfort (if you got the middle trim with working AC, that is). Plus, they were way cheaper on gas than the Kijang and, well, dirt cheap in general. No wonder everyone drove them; they were the perfect choice for a simpler time.

Think about it: Indonesians back then just wanted a car that wouldn’t break the bank and was easy to fix themselves. The Avanza and Xenia fit the bill perfectly. They had that old-school suspension and rear-wheel drive setup, which was perfect for bumpy roads in countries like ours. Plus, the wheelbase and ground clearance were spot on — basically, these cars were built for Indonesia (and other developing countries) like a glove.

The truth is, we weren’t exactly spoiled for choice back then. Sure, there was the Nissan Grand Livina and a couple of other options, but nothing quite hit the sweet spot like the Avanza and Xenia. We wanted a reliable car that held its value, and these two were the clear winners. No wonder everyone just went with them!

With prices that low, what were we supposed to do? The Avanza and Xenia were the obvious choices, and that’s what most of us ended up with. It took a while before we got more options, but hey, at least the Avanza was the perfect Indonesian car — cheap, comfy for the whole family — what more could you ask for?

Those cars are designed for developing countries, kind of like SUVs and pickup trucks in the US, they fit Indonesia well, so many people like it.