FOR MARKETING PERSPECTIVE --- MAY 24<\/p>\n
;JP;
\nANPAc..r..
\nCar-MPV-SUV-sales<\/p>\n
JP\/ \/<\/p>\n
MPV answers Indonesian needs for spacious family cars<\/p>\n
Rudijanto
\nContributor
\nJakarta<\/p>\n
In spite of an increase in sedan sales, multipurpose vehicles
\n(MPVs) and sport utility vehicles (SUVs) continue to
\ndominate the country's automotive market.<\/p>\n
Automotive giant Astra International said MPV and SUV markets
\ncontinued to show a significant growth, despite the surge in the
\nsedan sales.<\/p>\n
Sales of heavy-duty MPVs and SUVs, such as the Honda CRV,
\nNissan X-Trail, Nissan Terano, Ford Everest and Ford Escape, for
\nexample, rose by 10.8 percent to 5,448 units in the first
\nquarter, this year from 4,919 in the same period in 2003.<\/p>\n
Meanwhile, sales of light-duty MPVs, such as the Suzuki Carry,
\nToyota Avanza, Daihatsu Xenia, Mitsubishi T120 and Daihatsu
\nZebra, surged by 78.3 percent to 22,825 units, from 12,805 last
\nyear, and medium-class MPVs and SUVs -- Toyota Kijang, Honda
\nJazz, Mitsubishi Kuda, Suzuki Escudo, Honda Stream and Daihatsu
\nTaruna -- rose by 11.5 percent to 25,674 from 23,026 units.<\/p>\n
As with other categories, sales of medium-class diesel MPVs,
\nsuch as Isuzu Panther, Toyota Kijang, Mitsubishi L300 and
\nMitsubishi Kuda, also booked a significant increase during the
\nfirst three months of 2004: by 46.9 percent to 4,396 units, from
\n2,992 last year.<\/p>\n
The Toyota Kijang has become the favorite among Indonesians.
\nLong favored by a tax system that placed a lower tax on these
\nMPVs, the commercial Kijang has been able to dominate the market.<\/p>\n
With such a significant increase, automotive analysts believe
\nthat the country's total car sales will be able to meet the
\ntargeted 380,000 units this year.<\/p>\n
In 2003, total sales rose to 354,331 cars from 317,749 cars in
\n2002. Sedan sales recorded a hefty increase of nearly 45 percent<\/p>\n
According to data from the Association of Indonesian
\nAutomotive Manufacturers (Gaikindo), sedan sales increased by
\nnearly 45 percent to 37,873 cars in 2003 after a major drop in
\n2002, when it declined to 26,714 cars from 35,188 units in 2001.
\nThe growth of the sedan sales was higher than those of other
\ncategories but in term of sales volume, sedan sales were far
\nbelow than the others.<\/p>\n
Toyota Astra Motor (TAM) has been able to maintain Kijang's
\ndominance during the first quarter with a 50-plus percent market
\nshare in the medium MPV segment. In March alone, TAM sold 6,285
\nunits, or a 21.5 percent increase compared to last year.<\/p>\n
Many players in the local automotive market have appealed to
\nthe government to change the current taxation system that favors
\nMPVs than sedans. For instance, Government Decree No. 7\/2002
\nstates that luxury sales tax for a 1,500-cc sedan is 30 percent
\nand 40 percent for 1,500- to 2,500-cc sedans.<\/p>\n
In contrast, taxes for MPVs with fuel tank capacities of less
\nthan 1,500 cc are 10 percent, and between 1,500 to 2,500, 20
\npercent. This lower tax for MPVs has enabled them to sell at more
\ncompetitive prices.<\/p>\n
While the 2003 launch of sedans priced at around Rp 150
\nmillion (about US$17,650) proved to boost sedan sales by 44.7
\npercent, it did not particularly affect the market share of MPVs.<\/p>\n
Many Indonesians certainly do not look at only prices, and
\ngreater seating capacities and more spacious interiors to haul
\ngoods constitute some of the key considerations in purchasing
\ncars -- and is why many players have flocked to the MPV segment.<\/p>\n
Although Kijang has guarded its domination of the medium-class
\nMPV segment carefully, other players have become increasingly
\naggressive in entering the MPV market, including the 4x2 heavy
\nMPV segment.<\/p>\n
But it seems there will be ample room for all players. PT
\nHyundai Mobil Indonesia's event & public relations head Lindarto
\nRahardjo believes that the MPV market is still promising.<\/p>\n
\"The concept of MPV suits the characteristics of Indonesians
\nwho need a car that is able to accommodate more family members.
\nSuch cars enable them to socialize with other families,\" said
\nLindarto.<\/p>\n
New players such as Hyundai, Chevrolet and KIA are struggling
\nto grab more of the MPV market share in their respective
\nsegments. No doubt, competition has forced these players to share
\nthe market with each other.<\/p>\n
Lindarto said while Hyundai sold between 200 to 300 Trajets
\nper month last year, the aggressive competition had cut its
\nmonthly sales to between 150 to 200 units.<\/p>\n
Hyundai has two types of its monocoque-body Trajet, the eight-
\nseater GL8 and seven-seater GLS, which sell respectively at Rp
\n185 million to around Rp 210 million.<\/p>\n
\"The real MPV has a monocoque body and provides comfort to the
\npassengers. It is not like commercial-based vehicles that are
\nmade into passenger cars. The real MPV is as comfortable as
\nsedan,\" said Lindarto.<\/p>\n
Another Korea-based manufacturer, KIA, is introducing a new
\nversion of its Carens this year. The old version of this MPV was
\ninitially introduced in 2002, Carens II has had a body makeover.<\/p>\n
Aside from changing its rear lights, the Carens II has also
\nundergone several changes to its interior, in particular the
\naddition of armrests on the front seats and a new air-
\nconditioning system that blows cool air from above and below the
\nseats.<\/p>\n
Powered by a 1800-cc Dual Overhead Camshaft (DOHC) engine, the
\nCarens II can accommodate up to seven passengers, and the longer
\ncabin means
\nthis MPV still looks spacious and comfortable, even when it is
\ncarrying a full carload.<\/p>\n
\"Our target is to sell 250 Carens II per month, and I think
\nthis is possible because the Carens II has the latest technology
\nand features and a more competitive price than its competitors,\"
\nsaid Adi Yudistira, KIA promotion manager.<\/p>\n
It is not only Asian automakers that are competing for the
\ndomestic market share, and even American makers are working hard
\nfor a slice. For example, Chevrolet is relying on its Zafira and
\nAveo models.<\/p>\n
PT General Motors Indonesia (GMI) assistant director of public
\nrelations Hanum Yahya said the Zafira was positioned as the smart
\nchoice for motorists who want a stylish and versatile MPV that
\nwas equally practical for home, office and leisure use.<\/p>\n
\"The Zafira's popularity comes from its exclusive Flex 7
\nseating system, which allows it to be transformed from a 7-seater
\nto a 2-seater in less than 15 seconds without removing a single
\nseat,\" said Hanum.<\/p>\n
The GMI has also recently launched a new variant, the
\nChevrolet Zafira Elegance. With a more luxurious and contemporary
\nlook, the Zafira Elegance has a full-leather interior and
\nIrmscher accessories, such as its aluminum-like three-spoke
\nsteering wheel, gear shift, hand brake and center console.<\/p>\n
Smaller than the Zafira, the Aveo is a five-door MPV. Awarded
\nthe BBC Top Gear's 2003 Best Choice for the super-mini category,
\nand this MPV is positioned to appeal to smart and adventurous
\ndrivers.<\/p>\n
The success of the Zafira Elegance and the Aveo will depend on
\nthe local market response. Declining to disclose its sales
\nperformance, the GMI only said sales for both models continued to
\nbe very encouraging.<\/p>\n
\"We are very optimistic about the future, and believe there is
\nmuch room for growth because of growing consumer demand for
\nquality, dependable vehicles that are affordable,\" said Hanum.<\/p>\n
With so many MPVs flooding the market, Indonesians will have
\nmore choices. Although the more luxurious MPVs do not compete
\ndirectly with the Kijang because of different market segments,
\ntheir presence has provided consumers with more options for a
\nfamily car.<\/p>\n
Indonesians are becoming more aware that driving family cars
\ncan be as comfortable as driving a sedan. With the economic
\ncondition showing gradual improvement, many expect that local
\ndemands will shift to more luxurious MPVs.<\/p>\n
Market rumors are abuzz that TAM is preparing to launch a new
\nversion of the Kijang, one more luxurious than existing models.
\nSome say the new Kijang will resemble a Trajet with a monocoque
\nbody.<\/p>\n
TAM marketing communication head Hendrayadi Lastiyoso could
\nnot confirm the rumor and said only that, as an automotive
\ncompany, TAM would constantly carry out product improvements.<\/p>\n
\"But as to when we will launch a new Kijang, we cannot say as
\nyet. As of now, we want to emphasize that we are still
\nconcentrating on selling the existing Kijang,\" he said.<\/p>\n
Whether a new Kijang is on the way or not, the market can
\nexpect that, as long as the tax system still favors MPVs and most
\nIndonesians continue to prefer spacious family cars, MPVs will
\nstill maintain their dominant presence in Indonesian roads.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/for-marketing-perspective-may-24-1447899208",
"image": ""
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