Citramobil Nasional cuts Bimantara car prices<\/p>\n
JAKARTA (JP): PT Citramobil Nasional, a unit of publicly
\nlisted PT Bimantara Citra, has slashed its car prices by six
\npercent to capture the growing sedan market.<\/p>\n
Citramobil president Jongkie D. Sugiarto announced yesterday
\nthat the 1,500-cc Cakra sedan now sold for Rp 42.5 million
\n(US$17,450) with on-road costs, down from Rp 45 million.<\/p>\n
The 1,600-cc Nenggala sedan now sells for Rp 56 million, with
\non-road costs, down from Rp 59.5 million.<\/p>\n
"The price cuts are possible due to the increased local
\ncomponent percentage in both sedans and the reduced import
\ntariffs on the remaining imported kits," Jongkie said.<\/p>\n
He said the Cakra sedan -- which is essentially a renamed
\nHyundai Accent imported from Hyundai Motor Co of South Korea in
\ncomplete knocked down form and assembled locally -- was 20.64
\npercent made with local components.<\/p>\n
Nenggala sedan -- a renamed Hyundai Elantra -- is 20.79
\npercent local components.<\/p>\n
Jongkie said the local components in both sedans were
\nuniversal components like glass, rubber and plastic, suspension,
\nbrake system, clutch and steering systems.<\/p>\n
Fourteen local vendors supply Citramobil with components.<\/p>\n
As Cakra and Nenggala sedans contain more than 20 percent
\nlocal components, the tariffs on the remaining imported
\ncomponents are dropped to 50 percent, down from 65 percent.<\/p>\n
On top of import tariffs, when the cars are sold they are
\nsubject to a 35 percent luxury tax and 10 percent sales tax.<\/p>\n
Jongkie said the price cuts were expected to drive up the
\nsales of both cars to 350 cars a month each, from about 300
\nvehicles a month.<\/p>\n
Competition<\/p>\n
He said the price cuts would help them survive the tough
\ncompetition now, particularly from the duty and tax exempt Timor
\nsedan.<\/p>\n
Cakra's new price is only slightly higher than the 1,500-cc
\nTimor sedan.<\/p>\n
"Our new prices are the best prices for now. When we increase
\nour local components to over 40 percent or even 60 percent, we
\nwill cut our prices again," Jongkie said.<\/p>\n
Jongkie said Bimantara Citra and Hyundai would form PT
\nBimantara Hyundai Indonesia to construct and control automotive
\nmanufacturing facilities in the 500-hectare Bimantara Automotive
\nIndustrial Estate in Purwakarta, West Java.<\/p>\n
Construction will start soon after PT Bimantara Hyundai
\nIndonesia is formed on Thursday, and be completed by the end of
\nnext year.<\/p>\n
"By January 1999, we will start producing a vehicle with local
\ncontent of over 60 percent," Jongkie said.<\/p>\n
The auto complex will have assembling, body stamping and
\nmachining facilities.<\/p>\n
Jongkie said the facilities would have an initial production
\ncapacity of 100,000 vehicles a year.<\/p>\n
Meanwhile, Poeng W. Lubis, another Citramobil Nasional
\nexecutive, predicted that by 2000, sedans would make up almost 50
\npercent of the local auto market, which could reach 600,000
\nvehicles.<\/p>\n
Currently, sedans account for less than 15 percent of the
\nmarket.<\/p>\n
Poeng said the sedan market would expand as prices dropped.<\/p>\n
"People now buy commercial vehicles because they cannot afford
\nsedans. Whenever sedans prices reach the same as commercial
\nvehicles, people will definitely choose sedans," Poeng said.
\n(rid)<\/p>",
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