Cheaper MPVs to drive car market this year<\/p>\n
Sari P. Setiogi, The Jakarta Post, Jakarta<\/p>\n
Multipurpose vehicles (MPVs) could soar in popularity this
\nyear as new economy models are launched with relatively
\naffordable prices of below Rp 100 million (US$11,990).<\/p>\n
\"Last year, MPV (sales) growth was almost zero percent, but
\nthis year I predict it will reach about 5 percent,\" the chairman
\nof the Indonesian Automotive Manufacturers Association
\n(Gaikindo), Bambang Trisulo, said on Tuesday.<\/p>\n
Toyota is launching the Avanza minivan with a retail price of
\nbetween Rp 80 million and Rp 100 million, while Daihatsu
\nintroduces Xenia with a retail price of between Rp 60 million and
\nRp 90 million. Avanza is equipped with a 1,300 cc engine, while
\nXenia has either a 1,000 cc engine or a 1,300 cc engine.<\/p>\n
Other top car makers are also planning to introduce less
\nexpensive MPVs.<\/p>\n
\"Although MPV sales growth will 'only' be 5 percent, it is
\nlarge in volume as the MPV segment still holds about 50 percent
\nof the domestic market share,\" Bambang said.<\/p>\n
In 2003, national car sales reached 350,000 units, according
\nto Gaikindo. It is expected that this figure will grow to 390,000
\nunits this year despite the elections.<\/p>\n
\"The economic indicators are relatively stable and the
\nelections also seem to be more well prepared. I assume there will
\nbe no huge, serious troubles during the elections,\" said Bambang.
\nHe is optimistic that people will keep buying new cars,
\nparticularly low to mid-priced cars.<\/p>\n
Last year, the stars of the market were single utility
\nvehicles (SUVs), commercial cars and mid-class sedans. This year,
\nbecause of the elections, sales growth for mid-class vehicles is
\nnot expected to be too big.<\/p>\n
\"People will refrain from buying costly cars this year,\"
\nBambang said.<\/p>\n
Separately, the director general for small and medium
\nindustries and trade at the Ministry of Industry and Trade, Aang
\nTjahajadi, said the growing car market in the country should be
\nfollowed by a growing local components industry.<\/p>\n
For motorcycle components, Indonesia is already the third
\nlargest manufacturer in the world after China and India.<\/p>\n
\"The local content of motorcycles manufactured here now
\nreaches almost 90 percent,\" said Aang.<\/p>\n
However, he said the country still found it difficult to
\nfollow the latest technology in the car industry.<\/p>\n
\"In the global arena, models (of components) are changing very
\nrapidly. For small industries, it is somehow difficult for them
\nto keep up to date,\" said Aang.<\/p>\n
Indonesian Vehicle Component Market Size (US$ million)<\/p>\n
Year Revenue Exports Domestic<\/p>\n
1999 7.276 336 6.941<\/p>\n
2000 16.235 613 15.622<\/p>\n
2001 14.400 681 13.719<\/p>\n
2002 14.100 629 13.471<\/p>\n
source: Indonesian Automotive Parts and Components Industries Association<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/cheaper-mpvs-to-drive-car-market-this-year-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }