Suzuki cheap MPV enters market<\/p>\n
Tony Hotland, Jakarta<\/p>\n
Competition among car manufacturers in the popular multipurpose
\nvehicle (MPV) market segment will surely get tougher after Suzuki
\nlaunched on Friday its newest model, Suzuki APV, which carries a
\nprice tag of below Rp 100 million (about US$11,025).<\/p>\n
Soebronto Laras, president of PT Indomobil Suzuki
\nInternational, a unit of the Indomobil Group, the second largest
\ncarmaker here, stated that the new line was to counter rivals
\nToyota Avanza and Daihatsu Xenia, which drew strong interest from
\nthe public when launched early this year.<\/p>\n
Both the Avanza and the Xenia are produced by the country's
\nlargest auto assembler and distributor, Astra International, and
\nalso carry a low on-the-road-price of below Rp 100 million.<\/p>\n
\"The presence of Avanza and Xenia has boosted the sales
\nportion of cars priced Rp 100 million to 76.7 percent of total
\ncar sales (in the first half of this year). Last year, growth in
\nthe (MPV) segment was quite slack,\" Soebronto said during the
\nlaunch of the Suzuki APV. The MPV segment here has been dominated
\nby vans such as the popular Toyota Kijang.<\/p>\n
Data from the Association of Indonesian Automotive
\nManufacturers (Gaikindo) shows that about 354,578 cars were sold
\nnationwide last year, up 11.6 percent from 2002.<\/p>\n
The figure is estimated to rise to around 440,000 by the end
\nof this year.<\/p>\n
Soebronto said there was vast room for growth of low-priced
\ncars in the country, considering that the economy was still
\ndeveloping and the huge market of more than 220 million
\npopulation.<\/p>\n
The orders piling up for Avanza and Xenia are solid proof of
\nhow attractive the market is and prompted Suzuki to produce a
\nsimilar model, although Indomobil claims that the new car
\nperforms better than its competitors.<\/p>\n
Both Toyota and Daihatsu claim that at least 30,000 orders for
\ntheir new models were received just a week after being launched,
\nand there is still a long waiting list, with back orders pending
\nup to 2005.<\/p>\n
The car producers are competing to grab attention not only in
\nthe domestic market, but also in the foreign market.<\/p>\n
\"We plan to export between 25,000 to 35,000 to countries
\nwithin the Southeast Asia, Middle East and South America,\"
\nSoebronto said.<\/p>\n
Suzuki has invested about Rp 2 trillion to support its plan to
\nproduce 70,000 of the new model annually. The cars will become
\navailable in September.<\/p>",
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