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.