Automotive mart stable in spite of new policy
Automotive mart stable in spite of new policy
JAKARTA (JP): Automobile prices are stable and buying patterns
have not fluctuated in the capital despite a recent government
policy allowing a domestic firm to produce cars without having to
pay duties and luxury sales tax.
A number of dealers and sales supervisors from Daihatsu,
Honda, Mazda, Nissan, Suzuki and Toyota told The Jakarta Post
over the weekend that car sales have not been affected by the
news that the new company's cars will sell at far lower prices
when they hit the market later this year.
The government, under Presidential Decree No. 2/1996, is
giving preferential treatment to PT Timor Putra Nasional, which
will not have to pay luxury sales tax or duties on imported
components provided that the local content in its products reach
at least 20 percent by the end of the first year, 40 percent in
the second year and 60 percent in the third year.
With the tax breaks, the company is expected to sell its cars
at price levels 50 percent lower than those of comparable sedans.
Timor Putra -- owned by Hutomo (Tommy) Mandala Putra, the
youngest son of President Soeharto -- in cooperation with Kia
Motors Corp. of South Korea, will launch the Timor in October.
"Overall there hasn't been any change in the buying patterns
of our cars since the policy was announced," said Imelda, branch
manager of Indomobil Group's Suzuki dealer in South Jakarta.
Indomobil, the second largest assembler of cars in Indonesia
after Astra, assembles Suzuki, Mazda, Nissan and Volvo vehicles.
Imelda said that every month her branch office sells an
average of 200 Suzuki vans, sedans and jeeps. Vans are the best
sellers at a price of about Rp 20 million (US$8,403).
"I think we'll sell around 200 vehicles this month," she said,
adding that her office has not cut any prices or changed its
marketing strategy to anticipate the policy's effect.
Noviar, a sales supervisor at an Astra dealer in Sunter, North
Sumatra, also said that buying patterns at his dealership have
not changed.
Astra assembles Toyota, Daihatsu, Isuzu and BMW vehicles.
"On average, we can sell 90 vehicles every month and this
month we achieved the same," Novia said, adding that his best
sellers are Daihatsu vans and Feroza jeeps.
He predicted, however, that his sales will probably drop in
the sedan market, which the Timor will soon enter.
"In the future, we might change our marketing strategy and cut
our prices. I don't know yet. Let's just wait and see," he said,
adding that the most he can do now is monitor the market.
Astra's main dealer on Jl. Sudirman, Central Jakarta, also has
not experienced a significant change in sales.
"There's been no drastic change here," said Ratna, a
saleswoman at the dealership. (13)