BMW to sell cars under AFTA scheme

BMW to sell cars under AFTA scheme

Ahmad Junaidi, The Jakarta Post, Singapore

Automaker BMW said here on Thursday its Indonesian unit would
begin exporting the BMW 530iA model to Thailand next month, and
its Thai unit would begin exporting the 330iA model to Indonesia.

BMW Group senior vice president for sales said the move would
make the company the first premium automaker to sell cars under
the ASEAN Free Trade Area (AFTA) scheme.

He added that the company was currently assessing the market
potential in both countries.

Under the AFTA scheme, which came into full effect at the
start of the year, car import duties must be set a no more than 5
percent.

The president of BMW Indonesia, Jesus Cordoba, said the cars
to be sold in Thailand would be manufactured by PT Astra
International.

BMW had a record-setting 2001 in Asia, selling 78,527
vehicles, a 28.4 percent increase from the previous year.

According to the statement, BMW accounted for one in every
five luxury cars sold in Asia last year, with BMW Korea Asia's
fastest-growing subsidiary.

Demand in Asia is strong for high-end sedans and sports
utility vehicles.

"In the medium term - that is in the next five years - we plan
to double our sales in Asia from 78,000 units today to
approximately 150,000 units in future," said Michael Ganal, a
member of the BMW board of management.