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The factory system on the TCH only includes the panic button as far as an alarm goes. None of the theft-deterrent stuff, such as going off when the window is broken or if a door is open with the alarm is armed. At least as far as I am aware. I spend a while not long ago trying a combination of alarm arming and door opening and closing to try to get the alarm to go off. Got nothing. So for my car, the flashing light just indicates that the door is closed.
I could be very wrong though and that there is some malfunction.
I thought it did when I first bought it. I had assumed since it come with the sophisticated SmartKey system, that it would include an alarm, but I was wrong. Such a sad part of decontenting and cost savings. My 2001 L300 beater came with a factory alarm.
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