Daihatsu Motor Co said Wednesday it will build a new automobile factory with an initial output capacity of 100,000 units a year in Indonesia to meet growing demand in the Southeast Asian market.

The new 800,000 square-meter plant will be set up through a roughly 20 billion yen investment at an industrial park in Karawang, West Java, with manufacturing expected to commence in late 2012 with a workforce of around 1,400 new local employees, it said.

 Although Daihatsu did not reveal the type of vehicles that it plans to manufacture at the Karawang plant, industry observers said they expect the company to produce relatively affordable small vehicles targeted at Asian consumers.