Automotive sales may fall to 50,000 vehicles<\/p>\n
JAKARTA (JP): Indonesia's automotive sales may decline further
\nto 50,000 cars this year from 58,000 cars last year, as demand
\nremains low in the crisis-hit country, a noted automotive company
\nexecutive has said.<\/p>\n
Herman Z. Latief, the president of PT Krama Yudha Tiga Berlian
\nMotors, said on Monday the car market would remain depressed
\ndespite expected improvement in the country's economy in the
\nsecond half of 1999.<\/p>\n
\"The country's economic crisis and political instability are
\nthe main contributors to the further fall in automotive vehicle
\nsales,\" he said at a launch of the Mitsubishi Kuda family van.<\/p>\n
\"It is possible that the country's automotive market is the
\nworst affected in the region by the crisis,\" he said.<\/p>\n
Prior to the crisis, Latief said the country's automotive
\nmarket had shown impressive growth, with annual sales of 400,000
\nvehicles of various makes.<\/p>\n
Sales dropped to 58,000 units in 1998 as the economic crisis,
\nwhich began in the middle of 1997, became more severe and the
\ncountry's political situation became tenuous following the
\ndownfall of former president Soeharto.<\/p>\n
\"If the prediction comes true, Indonesia will, for the first
\ntime in the country's automotive history, record lower sales than
\nSingapore, which records 60,000 units annually,\" Latief said.<\/p>\n
He said the Indonesia situation differed from automotive
\nmarkets in other Asian countries, in which there was a tendency
\nfor the market to follow a country's economic recovery.<\/p>\n
Latief said he was still optimistic about the long-term
\noutlook for the country's automotive market, citing Indonesia's
\nvast territory and large population.<\/p>\n
He said Krama Yudha launched the multipurpose family van
\nMitsubishi Kuda, to show its commitment to the domestic market,
\ndespite the economic crisis.<\/p>\n
The company's principal, Mitsubishi Motors in Japan, has
\ndeveloped the car in three countries -- Taiwan, Indonesia and the
\nPhilippines -- under the \"complementation parts\" scheme for
\nefficiency.<\/p>\n
The Kuda car has 40 percent local content and 60 percent
\nimported content.<\/p>\n
Off-road prices are Rp 110 million (US$12,200) for the Super
\nExceed type, Rp 105 million for the GLS type, and Rp 92 million
\nfor the GLX type. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/automotive-sales-may-fall-to-50000-vehicles-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}