BMW, Mercedes expect robust sales
BMW, Mercedes expect robust sales
JAKARTA (JP): The sole agents of BMW and Mercedes-Benz expect
bullish sales this year thanks to market recovery and a more
favorable government automotive policy.
The sole agent of BMW in Indonesia, PT Tjahja Sakti Motor,
said on Thursday that sales were expected to reach about 2,500
vehicles this year, up from about 900 last year.
While the sole agent of Mercedes-Benz, PT DaimlerChyrsler
Indonesia, predicted its sales this year would swell to about
2,000 vehicles from only 600 last year.
"The car market will continue to recover and will be even more
dynamic with no limits on the importation of completely built-up
(CBU) cars," president of Tjahja Sakti, Prijono Sugiarto, told a
news conference.
He said the government's recent decision to revoke a decree
banning the importation of certain types of CBU cars had received
a warm welcome from customers, who had gradually regained their
purchasing power.
Minister of Industry and Trade Luhut Pandjaitan revoked last
week a decree made in February by the previous minister that
banned the importation of CBU cars with an engine capacity
exceeding 4,000cc or with tag price of more than US$40,000.
He said the decree violated the principles set by the World
Trade Organization.
Indonesia eased the restriction on the importation of CBU cars
in July last year by cutting import duty to a range of between 65
percent and 80 percent depending on engine size from as high as
200 percent.
However, in February this year then minister Jusuf Kalla
issued a decree to ban the importation of more expensive CBU cars
with an engine capacity exceeding 4,000cc or priced over $40,000
a vehicle, arguing that the presence of such luxurious cars would
only cause social jealousy.
Prijono said the market's enthusiasm for imported CBU cars was
indicated in the many inquiries the company had received so far.
He said the CBU BMW models that would be available this year
included the Rp 839 million (US$106,125) station wagon BMW 528iA-
T, which would be available in August, and the Rp 1.1 billion off
roader jeep BMW X5 4.4A, which was expected to arrive in
November.
"We have so far sold 150 vehicles through the indent system in
which a customers has to wait some time before their car is
delivered," he said.
He said Tjahja Sakti expected to sell about 300 CBU vehicles,
or about 10 percent of its predicted total sales this year.
Separately, corporate communications manager of Mercedes-
Benz's sole agent DaimlerChrysler Indonesia, Wim Ekel, said the
company expected to sell about 1,000 imported CBUs out of the
total predicted sales this year of around 2,000 vehicles.
"So far, we have sold about 400 CBUs," he said, adding that
CBU Mercedes-Benzs available here included the A140, ML320, ML270
and S320 with price tags ranging from Rp 235 million to Rp 1.3
billion.
Both Tjahja Sakti and DaimlerChrysler said they would maintain
their core business of car assembling despite the promising CBU
car import business.
Tjahja Sakti's Prijono said the sales of the imported CBUs
would never be able to exceed that of locally assembled vehicles
because the market for CBUs was very limited.
"It is possible we could sell more CBU BMWs than locally
assembled vehicles if the government reduced the import duty and
luxury tax dramatically, which would cut the price of CBUs," he
said.(cst)