Indonesians put price first when buying a car<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
As each driver stops at Toto's booth to pay the parking fee, the
\n21-year-old parking attendant counts down eagerly for the day
\nwhen he will join them on the other side of the booth as a car
\nowner.<\/p>\n
\"Cars are cheap now, so why should I bother to buy a
\nmotorcycle?\" said Toto, who earns about Rp 2 million (US$210)
\nmonthly as a parking attendant at an office building on Jl. Jend.
\nSudirman, Central Jakarta, and also from his other side job.
\n\"Plus, they (cars) are safer and more prestigious.\"<\/p>\n
Potential buyers like Toto should prompt the automotive
\nindustry, which has forecast that this year's sales will increase
\nby 10 percent to 530,000 units, to carefully price their
\nproducts, according to a recent survey by market research firm
\nACNielsen.<\/p>\n
The firm's online survey -- covering 14,134 respondents
\nworldwide -- revealed that Indonesia was among the top three
\ncountries, of the 28 polled, with the highest percentage of
\npeople intending to own a car.<\/p>\n
In recent years, the availability of affordable cars and easy
\nfinancing have spurred auto sales in Indonesia, making it one of
\nthe world's hottest car markets with a 36 percent jump in sales
\nin 2004.<\/p>\n
According to the survey, 82 percent of potential car buyers in
\nIndonesia, compared to 74 percent in the Asia Pacific region,
\nmentioned price as the most important factor when buying a car.<\/p>\n
Managing Director for ACNielsen's Southeast Asia operations,
\nFarquhar Stirling, said car dealers should therefore maintain
\ntheir approach of supplying \"affordable vehicles for the whole
\npopulation\".<\/p>\n
More surprisingly, he added, was the fact that only 26 percent
\nof potential car buyers in Indonesia, compared to the regional
\naverage of 49 percent, said that vehicle performance was an
\nimportant factor, the lowest among the 14 Asia-Pacific countries
\nsurveyed.<\/p>\n
\"It's interesting that Indonesia is down there,\" said
\nStirling, adding that respondents surveyed online tended to be
\nbetter educated and wealthier than the general population. \"Again
\nit validates the fact that the country is very price conscious.\"<\/p>\n
He explained that to the Indonesians surveyed, the second most
\nimportant factor was brand image, or the prestige, of the car.<\/p>\n
\"That's why branding strategy is also important here,\" said
\nStirling.<\/p>\n
The survey revealed that 24 percent of the Indonesians
\nsurveyed considered Toyota as the top brand -- thanks to its
\naffordable Kijang Innova and Avanza MPVs -- followed by Honda (13
\npercent), which saw a 215 percent increase in sales last year
\nafter the launch of their Jazz compact car.<\/p>\n
Stirling said the growing number of motorcycle owners --
\nboosted by cheaper prices and easy credit facilities -- also
\nconstituted a strong base for potential car buyers.<\/p>\n
\"Trading up to a small car (for motorcycle owners) is the next
\nobvious step,\" he said, pointing to the fact that many
\nIndonesians treated their motorcycles as \"family vehicles\" that
\ncould carry up to five people regardless of safety.<\/p>\n
For Toto, the availability of low priced cars and easy credit
\nterms -- which sometimes only require a 5 percent down payment
\nand installments of up to five years -- has made him consider
\nbuying a car.<\/p>\n
\"I've already saved enough money to make a down payment for an
\nAvanza,\" said Toto, referring to the entry-level car with a price
\nstarting at Rp 93.5 million. (002)<\/p>",
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