Car sales to remain buoyant next year: Experts

Sari P. Setiogi, The Jakarta Post, Jakarta

Industry experts are optimistic that car sales will remain buoyant next year despite the country's general election.

"Indonesians are now used to changes in politics and it will not have a significant impact on the automotive business," operations chief of automotive component maker PT Astra Otoparts Alem Pusbowo told the press over the weekend on the sidelines of the Indonesian Car of the Year 2003 award ceremony.

"I believe business will continue as usual despite the coming election, it may even improve."

He said car sales this year were expected to reach around 305,000 units. In 1998, sales reached about 60,000 units and 100,000 units in 1999.

Industry analyst Suhari Sargo shared his view.

"The (car) market here is still large if we look at the geographical spread, as well as the ratio of car ownership in the country. So I believe the automotive business will keep growing," said Suhari.

He said, the car ownership ratio in Indonesia was about one car for 35 people. In Malaysia, the ratio is 1:8 while Thailand is 1:15.

He added that about 70 percent of car sales were concentrated in the Java-Bali market.

There have been concerns that many business activities will slow down next year due to the elections, which some fear could turn violent as it would be the first direct presidential election in the country.

Talking about which models would dominate the market next year, both said that multipurpose vehicles (MPVs) will continue to be the favorite of Indonesians.

"Indonesians have a different culture and habits. Most consider cousins, in-laws and grandchildren as all part of the family circle. And due to that, most people need cars with more seats," said Alem.

In Singapore, Thailand and Malaysia, the trend has switched to smaller cars such as sedans, he said.

Suhari said MPVs dominate about 70 percent of the local car market share.

However, he believed that sooner or later the trend here would also switch to smaller and more compact vehicles, "but it will not happen in the next three to five years."

Meanwhile, Toyota compact sedan Vios won the Bardhal Mobilmotor Indonesian Car of the Year 2003 award, beating those from other categories, such as city car, sport utility vehicle (SUV) and MPV. Last year, Toyota Camry won the award.

However, the award for people's favorite was won by the popular Toyota Kijang van.

There were a total of 32 car brands from various categories participating in the competition this year, an increase from 18 last year.

The evaluation was made based on design, engineering, quality, safety, driving pleasure, performance and price.

Box

Bardhal Mobilmotor Car of the Year 2003 category winners:

1. Exclusive Luxury Sedan: Mercedes Benz S-Class 280 2. Luxury Sedan : Audi A6 3. Premium Sedan : Toyota Camry 4. Medium Sedan : Toyota Corolla Altis 5. Compact Sedan : Toyota Vios 6. City Car : Chevrolet Spark 7. 4X2 SUV : Nissan X-Trail 8. 4X4 SUV : Grand Cherokee 9. Double Cabin : Ford Ranger 10. Cab Over MPV : Daihatsu Zebra 11. Premium MPV : Mitsubishi Kuda Grandia 12. Sub Compact MPV : Suzuki Aerio 13. Compact MPV : Honda Stream