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Between 20, Toyota also manufactured the car in Karawang under contract to meet the high demand.

The first-generation Avanza/Xenia was assembled at the first Indonesian Daihatsu plant in Sunter, Jakarta. According to journalists, it also came with several downsides such as unstable ride during high speeds and unrefined NVH levels. This hybrid-type chassis also made the car retains the rear-wheel drive layout from the previous generations of Kijang and its ability to handle heavy loads. The front half of the chassis is ladder frame, while the rear half is monocoque.

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Unlike the Kijang and the succeeding Kijang Innova that utilises full ladder frame chassis, the Avanza uses a semi- monocoque ' unibody' chassis construction. The project was also referred by Toyota as the U-IMV (Under- IMV) project, a reference to the Innova that sits in a segment above the Avanza which rides on the IMV platform. Toyota and Daihatsu invested a total of US$90,000,000 for the project. After the development finished, the Avanza and Xenia were launched in December 2003 for the Indonesian market. Both companies collaborated to create a car that would slot below the Kijang. At the time, the price of the best-selling Kijang had skyrocketed, while the economy in the country had just recovered from the crisis. The Avanza and Xenia were both conceived by Toyota, Daihatsu and its Indonesian subsidiaries in the wake of the 1997 Asian financial crisis. The Avanza had been the best-selling car in Indonesia for 13 consecutive years (between 20 respectively), before its position was being taken by the Honda Brio in 2020. As of DecemberВ 2019, the Avanza had been sold 1.8В million units. As of DecemberВ 2018, the Avanza had been sold 1.7В million units, and combined sales with Xenia up to 2.75В million units. ДЄs of OctoberВ 2011, there have been 1В million Avanza/Xenia units sold, including 113,000 exported units. A rebadged version of the car was sold in China under the FAW badge until 2016. In addition to Indonesia and Malaysia, the Avanza is sold throughout Southeast Asia, South Africa, Mexico, Pakistan, Nepal, Cambodia, Myanmar, Bangladesh, Sri Lanka, the Middle East, Caribbean, Egypt and various other African countries. Its spiritual predecessor was the Kijang, whose model program has since been split to two different models (the other being the larger, more expensive Kijang Innova) to expand Toyota's reach in the MPV sector. The Avanza is mainly developed as an entry-level MPV. The 'Avanza' name is taken from the Spanish word which means 'get moving' and Italian word 'avanzato', which means 'advance', while 'Xenia' is taken from the Greek word ' Xenia' (a Greek concept of hospitality), which means 'guest-friendship'. Daihatsu designed and manufactures the vehicle, which is then sold by both Daihatsu and Toyota under Xenia and Avanza nameplate respectively under a consigned production and OEM manufacturing agreement. It is produced in Indonesia and also contract assembled in Malaysia (under Perodua) for the first-generation model. The Toyota Avanza is a mini MPV designed and produced by Daihatsu and marketed by Toyota.