Stiff competition in every class<\/p>\n
Burhanuddin Abe
\nContributor\/Jakarta<\/p>\n
Competition between car makers is accelerating as seen at the
\nGaikindo Auto Expo 2005, which was held in Senayan, Jakarta from
\nJuly 8 to July 17.<\/p>\n
Automobiles in various categories, including sedans, compact
\nsedans, SUVs (Sport Utility Vehicles) and MPV (Multi-Purpose
\nVehicles) were on display at the expo.<\/p>\n
At least 140 companies took part in the expo, with 28 of them
\nbeing trademark holder sole agents (ATPMs).<\/p>\n
As the most prestigious automobile expo in the country,
\nGaikindo's expo was like looking at the national automotive
\nindustry landscape in miniature.
\n The population's ambition to own new cars is so great that the
\ngovernment's statement that it would enforce a progressive tax
\nrate on automobiles and limit the sale of cars in the fuel
\nefficiency drive paled in insignificance as automobile
\ntransactions at the expo surged to Rp 1 trillion in just nine
\ndays.<\/p>\n
Indeed, car sales have continued to increase following the
\nhigher economic growth rate. While in the post-monetary-crisis
\nyear of 1999, just over 100,000 cars were sold, the year 2000
\nshowed an increase to 308,805 cars. The figure is expected to
\ncontinue to rise in the next three years: 317,791 cars in 2002,
\n354,409 cars in 2003 and 483,169 cars in 2004.<\/p>\n
The Indonesian Association of Automotive Manufacturers
\n(Gaikindo) chairman Bambang Trisulo predicted that if the
\ncountry's political and security situations remained conducive to
\nbusiness, sales of new automobiles in late 2005 could reach
\n480,000 to 500,000 units.<\/p>\n
The increase will also be contributed to by the launch of mini
\nautomobiles, which are sold for between Rp 100 million and Rp 150
\nmillion per unit. \"Mini automobiles have greatly stimulated the
\nnational automotive market and have significantly jacked up
\nmarket growth this year. The market shows a great demand for
\nthese cars. That's why all manufacturers like Toyota, Suzuki and
\nMitsubishi, have brought out cars in this category,\" he said.<\/p>\n
This optimism is quite natural, especially given the fact that
\nautomotive producers like Suzuki, Toyota, Mitsubishi and
\nDaihatsu, in their positions as the principals of ATPMs, have
\nnow controlled the majority shares of these agents. This practice
\nhas raised production volume. Bigger investment will be made to
\nmeet market demand while automobile designs will cater to the
\ntaste prevailing in the domestic and global markets. Another
\nimportant factor is that the selling prices will also be made
\nmore competitive.<\/p>\n
Fortuner, an SUV Urban, may be singled out as an example of a
\nsuccessfully marketed automobile with a unique design and a
\nmaximum capacity sold at a very competitive price. This car,
\nwhich is a variant of IMV 4, a product of Innovative
\nInternational Multi-Purpose Vehicle (IMV), a Toyota global
\nproject, is now officially marketed in Indonesia. The presence of
\nthis car will push the SUV market in this country to break the
\nupper sales threshold of 35,000 units in 2005.<\/p>\n
\"Our target is to sell about 500 Fortuner automobiles a month
\nthis year,\" said PT Toyota-Astra Motor's (ATM) president director
\nJohnny Darmawan.<\/p>\n
There is indeed a strong reason for Johnny's optimism.
\nFortuner represents today's trend of an urban SUV design concept.
\nThis automobile, whose very low coefficient of resistance enables
\nit to be more aerodynamic in appearance, is sold at an on the
\nroad price of between Rp 295 million ( 2.7 V G A\/T 4x2 type) and
\nRp 353 million (2.7V A\/T 4x4 type).<\/p>\n
The launch of Fortuner on July 8 here was a surprise because
\nthe mid SUV market has been dominated by Nissan X-trail and Honda
\nCRV these years. Nissan X-Trail is provided with a 2.5 liter
\n(2,488 cc), 4-collinear-cylinder, double overhead camshaft
\n(DOHC), 16-valve (four valves per cylinder) engine as well as a
\ncontinuous variable valve timing control (CVTC). Honda CRV,
\nmeanwhile, has a 2.4-liter, 4-collinear-cylinder, DOHC 16-valve
\nengine, completed with an intellectual variable valve timing and
\na lift electronic control (i-VTEC)<\/p>\n
Thanks to this CVTC and i-VTEC technologies, the engine will
\nbe stronger in power while still being fuel-efficient and
\nenvironmentally friendly.<\/p>\n
Throughout 2004, 6,071 CRV cars and 7,131 Nissan X-Trail
\nautomobiles were sold. This year the battle is not yet over and
\nthe outcome will not be known until late 2005 or early 2006.
\nHowever, the market landscape has now changed with the presence
\nof Fortuner. The SUV market also sees the presence of Ford
\nEscape, Mazda Tribute, Suzuki Escudo 2.0, Suzuki Grand Escudo
\n2.7, KIA Sportage II, Hyundai Santa Fe and Subaru Forester.<\/p>\n
The presence of these new SUVs shows market dynamism,
\nespecially because in the past two to three years, SUV has gained
\ngreater popularity, said Soehari Sargo, a national automotive
\nobserver.<\/p>\n
He also noted that these SUV automobiles were introduced to
\nthe market not only in pursuit of sales but also in the context
\nof brand image promotion. Competition is very stiff and \"this is
\nthe response of market dynamism,\" he added.<\/p>\n
In the premium class, you can find the darlings of automobile
\nfans, such as Rolls-Royce, Bentley, Porsche and Jaguar. The most
\nbitter competition is now going on between Mercedes-Benz and BMW.
\nWhile Mercedes relies on its latest models (New A-Class, C Sport,
\nCL 350 and New SLK Class 350), BMW shows of BWM Series 3 and
\n730Li as well as 740Li.<\/p>\n
The attraction that these BMW of series 7 have is that their
\nV8 engines are completed with Bi-Vanos and Vaveltronic. These
\nelectronic-operated automobiles use a streptonic transmission
\nsystem with six levels of acceleration.<\/p>\n
A no less exciting competition is also occurring in the sub-
\ncompact, hatchback automobile market. Popular makes in this class
\ninclude, among others, Honda Jazz iDSI, Honda Jazz VTEC,
\nChevrolet Aveo, Hyundai Gets, Peugeot 206, Renault Clio and,
\nlately, Suzuki Swift. This last mentioned automobile, which was
\nlaunched at the Gaikindo expo, is available on the Indonesian
\nmarket in a CBU condition. At a glance, this Japanese-made
\nautomobile, which made its debut appearance in the Paris Motor
\nShow in 2004, resembles BMW's new Mini Cooper. Not surprisingly,
\nSuzuki Swift has immediately stolen the attention of car
\nenthusiasts.<\/p>\n
Provided with a 1.5-liter, 4-collinear-cylinder, 16-valve (4
\nvalves a cylinder) DOHC, variable valve timing (VVT) engine,
\nSuzuki Swift directly faces Honda Jazz with its VTEC (Variable
\nValve Timing and Lift Electronic Control). The VVT technology
\nmakes the engine more powerful and more efficient in fuel
\nconsumption while its combustion residue will be more
\nenvironmentally friendly.<\/p>",
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