'You are what you drive' sustains high-end MPV market<\/p>\n
Rudijanto, Contributor\/Jakarta<\/p>\n
An editorial that appeared in this newspaper some time ago
\nprofessed that \"You are not what you drive\", in reference to
\nPeople's Consultative Assembly Speaker Hidayat Nurwahid's refusal
\nto accept a luxury Volvo as his official car.<\/p>\n
For high-end multipurpose vehicle (MPV) distributors, the
\nreverse is a magic tag line that boosts sales: \"You are what you
\ndrive\".<\/p>\n
Compared to low- and medium-end MPVs, the high-end MPV market
\nis small but, surprisingly, a stable and promising one. Models
\nsuch as the Volkswagen Caravelle, Mercedes Benz Viano 3.0 and
\nToyota Alphard are never short of buyers ready to spend Rp 700
\nmillion to Rp 1 billion (US$111,000) and beyond to make a
\nstatement of personal style.<\/p>\n
A number of prominent figures have been spotted riding premium
\nMPVs including President Susilo Bambang Yudhoyono, who rode in a
\nblack Toyota Alphard to visit his mother in the small East Java
\ntown of Blitar, while well-known lawyer OC Kaligis once arrived
\nat the house of former president Soeharto in a VW Caravelle.<\/p>\n
Such sightings have raised the image of upmarket MPVs among
\naffluent Indonesians, lending additional oomph to the \"You are
\nwhat you drive\" campaign.<\/p>\n
This is also why the sole distributor of the VW Caravelle,
\nGaruda Mataram Motor, has forecast a sales growth of over 100
\npercent for this year.<\/p>\n
\"This upper market segment is very promising. Our data shows
\nthat sales growth has been quite satisfactory, since we have sold
\nbetween 100 units and 150 units of the VW Caravelle annually,\"
\nsaid Wanny Bhakti, head of public relations at Garuda Mataram
\nMotor.<\/p>\n
With an on-the-road price tag ranging from Rp 850 million to
\nRp 1.25 billion, the new VW Caravelle is certainly beyond the
\nreach of most Indonesian families. However, heightened demand
\nsince the September launch of the new Caravelle has made Wanny
\nconfident in setting a year-end sales target of 30 units.<\/p>\n
\"We imported 10 units for the Jakarta Motor Show II in
\nSeptember, 2004 and they sold out during the event. Some buyers
\nhad to register as indent buyers, and will receive the car at the
\nend of the year,\" he said.<\/p>\n
Many have also fallen in love with the Toyota Alphard 3.0 and
\n2.4, with their large yet elegant design -- never mind the Rp 500
\nmillion-to-Rp 700 million price tag.<\/p>\n
Unlike the Caravelle, which is imported by a single
\ndistributor, general importers have brought in a variety of
\nToyota Alphard 3.0 and 2.4 models.<\/p>\n
The lack of strong after-sales services from an authorized
\ndistributor has not diminished customer demand for luxury MPVs,
\nand in the third quarter alone, the former Ministry of Trade and
\nIndustry received a request from several firms to import a total
\nof 600 Alphard units from showrooms across the world, including
\nthose in Singapore and Australia.<\/p>\n
Another important player in this segment is Mercedes Benz,
\nwhich markets its MB Viano 3.0 (Ambiente). Sold for Rp 9.46
\nmillion off the road, the Viano 3.0 attracts buyers not only
\nbecause of its well-established brand name, but also for the
\ncomfort the Viano offers with its roomy cabin.<\/p>\n
Measuring about 5m long and 2m tall, the eight-seater Viano
\nlooks like the grand and expensive MPV it is, compared to the low
\nand medium MPVs that dominate the market, such as the Toyota
\nInnova, Honda Stream, Hyundai Trajet and Suzuki Aerio.<\/p>\n
Upmarket buyers have responded positively not only to high-end
\nMPVs, but also to sports utility vehicles (SUVs), another non-
\nsedan vehicle.<\/p>\n
One particular high-end SUV model that has an established
\nmarket in the country is BMW's X3 series, particularly its X3 30i
\nand X3 2.5i.<\/p>\n
At Rp 849 million and Rp 749 million respectively, BMW has
\nalready sold 42 X3 units as of September. The two BMW X3 models
\nwere launched in July, targeting high-end buyers who love SUVs.<\/p>\n
As with its older brother, the BMW X5, the new BMW X3 features
\nxDrive technology, which enhances road grip, agility and safety,
\nand BMW's Hill Descent Control (HDC), which assists drivers when
\ndriving down hills -- even on loose ground or slippery surfaces.<\/p>\n
\"BMW does not have an MPV model in its worldwide product
\nportfolio. In keeping with our tag line 'Sheer driving pleasure',
\nBMW focuses on the development of sporty, dynamic and high-
\nperformance cars that will offer enjoyment for those driving and
\nriding the car,\" said Feldani Effendy, PT BMW Indonesia's media
\nrelations officer.<\/p>\n
The MPV\/SUV premium vehicle market in Indonesia is relatively
\nsmall compared to its low- and medium-vehicle markets.<\/p>\n
DaimlerChrysler's Deputy Director for Marketing Planning and
\nCommunication Yuniadi Hartono said the high-end MPV market was
\nvery limited, particularly for exclusive European MPVs such as
\nthe Mercedes Viano and VW Caravelle.<\/p>\n
\"Last year, Mercedes Benz and VW together sold approximately
\n100 units. This year might end with similar sales figures,\" said
\nYuniadi.<\/p>\n
The domestic SUV market has always been hot, particularly with
\nthe influx of low and medium SUVs such as the Toyota Avanza,
\nDaihatsu Xenia, Kijang Innova and Suzuki APV. Priced between Rp
\n70 million and over Rp 200 million, the newly launched SUV models
\nhave already attracted thousands of willing indent buyers.<\/p>\n
As of September, the affordable Toyota Avanza recorded sales
\nof 32,203 units, while Toyota Kijang Innova drew 33,000 indent
\nbuyers just a month after its launch. Although not as impressive,
\nthe Suzuki APV still recorded 4,000 indent buyers as of mid-
\nSeptember.<\/p>\n
Following the successful presidential election and smooth
\ntransition of power in the country that boosted consumer
\nconfidence, the Association of Indonesian Automotive
\nManufacturers (Gaikindo) raised its domestic sales target to
\nbetween 400,000 and 420,000 units, from its earlier target of
\n385,000 units.<\/p>\n
The country's total car sales reached a total of 348,736 units
\nduring the first nine months of this year, or an increase of
\nnearly 30 percent as compared to 268,531 units in the same period
\nof last year.<\/p>\n
Gaikindo chairman Bambang Trisulo predicted that next year's
\nmarket would be more promising, with sales reaching 480,000 to
\n500,000 units, and sales of cars in the Rp 100 million to Rp 150
\nmillion price range is also expected to boost the domestic
\nautomobile market.<\/p>\n
Of course, such an optimistic forecast depends on the
\ncountry's political and economic conditions. However, it seems
\nthat no matter what may come to pass, sole distributors of high-
\nend MPVs and SUVs will continue to survive and grow as long as
\nthey chant the magic words \"You are what you drive\".<\/p>",
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