Astra to unveil new Toyota model
Rendi A. Witular , Jakarta
Automotive assembler and distributor PT Astra International said it would launch a new generation of its popular Toyota Kijang van called Toyota Innova next week, saying the new multipurpose vehicle (MPV) is expected to further strengthen the company's dominance in the domestic car market.
"We plan to launch Innova in the first week of September. We expect Innova will help maintain our current (domestic car) market share of around 47 percent," said Astra corporate secretary Aminuddin on Thursday.
"We project Innova will contribute a significant portion to our sales next year. To date, 14,000 Innovas have been ordered even though the car has yet to officially hit the street," he said.
Astra is the largest automotive company in the country. Car sales this year are projected to jump to a record level of around 420,000 vehicles, compared to 370,000 in 1997. Last year, car sales reached 354,300 units.
The locally manufactured Innova, which will also be exported to other Southeast Asian countries, is expected to be priced at between Rp 190 million (about US$21,100) and Rp 210 million (see graph for specifications). Kijang vans have a price tag of around Rp 120 million, except for the limited edition Krista model that sells for around Rp 190 million.
Aminuddin said Astra planned to initially produce at least 700 Innova per month.
The launch of Innova is the latest move by Astra and Toyota- Astra Motor (TAM), the local unit of Japan's Toyota Motor Co., to enter the high-end segment of the MPV car market here by capitalizing on its successful Kijang model.
Kijang, first introduced in the early 1980s, is the most popular car in the country designed to serve middle-class households.
To maintain leadership in the lower-end MPV market, Astra earlier launched the Toyota Avanza and Daihatsu Xenia vans. Astra will longer manufacture Kijang vans.
Equipped with a 1,399 cc engine, the Avanza has a retail price of between Rp 80 million and Rp 100 million, while the 1,000 cc and 1,300 cc Xenia sell for between Rp 60 million and Rp 90 million.
Both models are manufactured at Astra Daihatsu (ADM) factories and sold through Toyota and Daihatsu dealerships. Astra has a 37.81 percent stake in ADM, while TMC owns 51 percent.
The vast amount of orders for Avanza and Xenia is solid proof of how attractive the low-priced MPV market is and prompted Astra's rival PT Indomobil Sukses International to produce a similar model: the Suzuki APV, which carries a price tag of below Rp 100 million.
In the first seven months of this year, overall car sales rose by 26 percent to 285,039 units compared to the same period last year, with Astra's sales surging by 31 percent to 140,765 units.
Record low interest rates and a stable political climate and security have boosted car sales to a record high since the country was hit by the late 1997 Asian financial crisis.
Astra has projected car sales to jump to around 500,000 units next year.
Astra shares ended higher by Rp 300 to Rp 6,100 on the Jakarta Stock Exchange on Thursday.