Volvo changes its strategy to reel in young customers<\/p>\n
Abdul Khalik, The Jakarta Post, Jakarta<\/p>\n
Volvo launched a cheaper model here on Thursday in what appears
\nto be a change of strategy in the company's efforts to penetrate
\nthe already tight domestic premium car market.<\/p>\n
The Swedish automotive giant, whose limousines have been used
\nas the official cars of Indonesian Cabinet ministers for many
\nyears, expects its new S60 sedan will prove attractive to the
\ncountry's brand-conscious young business executives.<\/p>\n
\"We hope the S60 type can be used by young executives who
\nenjoy driving, appreciate quality and also recognize good value.
\nThis is a very attractive offer compared to other, similar class
\nbrands, such as the BMW 3-series or Mercedes C-type, because we
\noffer more for less money,\" said Ross Higgins, Volvo's Indonesian
\nbrand director.<\/p>\n
The new car, equipped with a 5-cylinder turbocharged engine
\nand an automatic transmission, will be sold for Rp 375 million
\n(about US$44,642, off the road). Volvos are usually sold for
\nbetween Rp 500 million and Rp 850 million.<\/p>\n
He said that currently the BMW 320 series, which had a price
\ntag of around Rp 526 million, was no match for the cheaper Volvo
\nS60 because the latter had more horsepower and a better equipped
\ninterior.<\/p>\n
\"We must catch up with our competitor's better image by
\noffering more. Because we left the Indonesian market after the
\ncrisis erupted in 1998, we simply have to fight from behind,\"
\nsaid Ross.<\/p>\n
Volvo has also introduced a more luxurious model, called the
\nS80 type, which is on offer for Rp 530 million (off the road).<\/p>\n
But Ross hoped that the S60 model would be the main driver in
\nincreasing Volvo car sales in Indonesia to around 400 units this
\nyear compared to the 360 units sold last year.<\/p>\n
\"We are optimistic about the current condition in Indonesia
\nthis year although there will be elections. We believe we can
\nachieve our target because learning from past experiences, we are
\nconvinced the Indonesian market is very resilient to sudden
\nshocks,\" he said.<\/p>\n
Other industry players have also predicted higher car sales
\nthis year despite the elections, with sales projected to grow to
\nbetween 375,000 and 385,000 units, compared to the 354,331 units
\nsold last year.<\/p>\n
But competition in the small premium car market will be much
\ntougher as other players like BMW and Mercedes Benz are also
\nintroducing new models. Even Japanese giants like Toyota and
\nHonda are also eying a slice of the premium market.<\/p>\n
With the current level of sales, Volvo is number three after
\nBMW and Mercedes in Indonesia. BMW still holds the biggest market
\nshare with 46.8 percent of the total 4,315 cars sold last year
\nwhile Mercedes has a 30 percent market share.<\/p>",
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