Car makers rev up for resurgence in demand
Car makers rev up for resurgence in demand
JAKARTA (JP): Dealers of 15 car makers displayed their new
products at Indonesia's first automotive show in three years in
Jakarta this week in the hopes of a resurgence in demand.
The Indonesian Automotive Show 99 set the stage for dealers to
aggressively promote their products in anticipation of rising
growth in car sales next year, organizer Taufiq Hidayat of PT
Antheus Indo Ad-Pro said on Friday.
"The car dealers are taking part in an event like this because
they expect demand to grow," Taufiq said, recalling that the last
automotive show in Indonesia was in 1996, the year before the
economic crisis hit the country.
Sales figures support their optimism.
According to the Association of the Indonesian Automotive
Industry (Gaikindo), 78,739 units were sold between January and
November. Last year, sales plunged to 58,303 units, from 395,000
in 1997.
The theme of the fair, which opened on Thursday and closes on
Monday at the Jakarta Convention Center, is "Moving Toward a New
Indonesia".
Some 10,000 people visited the exhibition on the first day and
a lot more were expected over the weekend, Taufiq said.
Also taking part are 16 producers of car accessories, such as
lubricants and car audio systems. Motor insurance firms are also
exhibiting.
South Korea's Kia Motors made its Indonesian debut with a
sports utility vehicle (SUV), Sportage, and its sedan Shuma.
Kia's first product to hit Indonesia's roads was the Timor
car, the controversial national project that had since been
scrapped. Although fully built at Kia's Korean plants, Timor cars
currently found in Indonesia are designated national cars.
PT KIA Mobil Indonesia General Manager Louis Sugiartono said
he had sold 70 units of Sportage and Shuma in the first two days
and hoped to sell 150 units by the end of the exhibition.
"There is a strong interest in our Sportage model which
features the first four-wheel drive in its class," Louis said.
However, he said, the main purpose of Kia's participation was
to introduce the company to the Indonesian market.
Also enjoying a stream of visitors was Mitsubishi dealer PT
Krama Yudha Tiga Berlian Motors which sold 10 cars on the first
day.
Marketing manager Doni Masubi said most sales came from its
Kuda model, which is aimed at the family van market dominated by
Toyota Kijang.
Mitsubishi also displayed a new model in its Pajero range,
which is expected to enter the Indonesian market in May with a
price tag of Rp 650 million (US$93,000).
PT General Motors Indonesia, still relying on its SUV Opel
Blazer, said the exhibition was a good opportunity to strengthen
its presence in Indonesia.
Marketing manager Paulus B. Suranto said sales of Blazers had
been increasing by an average of 20 percent per month.
Paulus said Opel hoped to maintain the 60 percent market share
it had in the SUV sector.
Visitors were mostly drawn to Zafira, Opel's new family van,
which could become available next year.
"We use this exhibition to see visitors' reactions to Zafira
before deciding to invest in the new model here," Paulus said.
The Texmaco group, which has been at the center of a massive
loan scandal, cast a rather bulky appearance next to Kia's stand
with a range of its Perkasa trucks and a bus.
Ramesh Kumir, head of the automotive division of PT Texmaco
Perkasa Engineering, said the company had received inquires for
some 300 trucks during the exhibition. (03)