Audi A4 to tackle BMW head on in RI's market

By Russell Williamson

IN a bold move, German carmaker Audi will launch its new A4 midsized prestige sedan early next year at similar pricing to BMW's 323i.

The A4, which will be distributed by Indomobil subsidiary, PT Garuda Mataram Motor Company, is expected to be priced between Rp 140 million and Rp 150 million.

With a 2600cc V6 engine, the A4 will compete directly against BMW's 2500cc straight-six 323i, priced at Rp 142,700,000 for the five-speed manual version.

Although the A4 is a worthy competitor for its German compatriot, with little image and knowledge of the marque in Indonesia, Audi will have a tough job on its hands.

However, the head of Garuda Mataram, Judianto Aranadi, said the company was hopeful of selling about 1,800 cars next year, depending on production schedules and market demand.

"The problem is we have to see how fast the learning curve is going and whether we can produce it and also the acceptance of Audi into the Indonesian market," he said.

Judianto said preparations for the assembly operations at a new green-fields factory at Bukit Indah -- owned by PT Ismac Nissan Manufacturing -- were now underway.

"We are in the process of preparing for the installation of the jigs and hopefully we will start trials in November," he said.

Ismac Nissan is a joint venture between Indomobil, Nissan and Marubeni Corp, which will assemble a range of Indomobil products.

Judianto said if all the production trials go according to plan and the supply of complete knock down kits is reliable, the car should be available for sale by about February or March next year.

The A4 will be offered in one model only with the 110kW V6 engine driving the front wheels.

Specification will be high with standard features including driver and passenger air bags, antilock brakes, air conditioning, central locking and power windows and mirrors.

Although the A4 will be the only model available initially, Judianto said the production line will be configured to enable assembly of the larger A6 at a later stage.

He said this would not be likely until at least the end of next year or 1998, however, because Garuda Mataram would wait until the new model was released in Europe next year.

"We have to study the A6 because they are coming with the new one next year," he said.

"Also, they want to concentrate on the A4 first because this is the first time Indonesia has produced Audi and, according to Audi, we have a lot of new things to learn."

To further promote the marque in Indonesia and the entire Asia-Pacific region, Audi AG, the German parent company, is also establishing a regional office in Singapore.

The office will be fully operational with about 15 staff by February next year and will be responsible for markets from India to China and Korea, and south to Australia and New Zealand.

Audi's new regional director Asia Pacific, Mathias Seidl, said the establishment of the Singapore office would help the company achieve greater recognition and improve sales volumes in the region.

"We want to be nearer to the market so we understand it better and can be faster to react to the market," Seidl said.

"At the moment, we are still looking after the entire region from Germany but we have started to move closer to the market and establish a regional office in the area," he said.

Seidl said he expected sales of Audi cars in the region were expected to grow to about 20,000 cars by 2000, up from 10,000 this year.