Car sales to remain buoyant next year: Experts
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