Daihatsu's new city car set to enter tight market
JAKARTA (JP): PT Daihatsu Astra Motor launched on Thursday its new city car, the Young Recreational Vehicle (YRV), with an upbeat annual sales target of 1,000 units amid an estimated sluggish market.
Daihatsu vice president Noertjahjo Darmadji said the YRV was targeting a market niche to help it sell amid this year's tight competition.
"I am sure we can sell at least 100 units a month," Noertjahjo told reporters on the sidelines of the car's launching ceremony.
His optimism challenges the estimated zero growth prediction for this year's car market, which last year saw 300,000 units sold.
The four-door mini van, with an engine capacity of 1,300 cc, is imported in a completely built up (CBU) form. Its launching is another attempt to cater for consumer demands for better maneuverability in Jakarta's crowded streets.
The car features a steer shift system that allows drivers to switch from automatic transmission to manual, using buttons at the steering wheel to shift gear.
Larger in size than compact cars like Suzuki Karimun, but smaller than an Opel Zafira, Daihatsu aligns its YRV along with the Mercedes A-class and Peugeot 206.
YRV's on-the-road price is Rp 169 million (about US$17,900) for its automatic model, and Rp 154 million for the manual version. This sets the car head-to-head in competition with the widely popular Toyota Kijang.
"We're not competing against the Kijang, that model is produced for the masses. Our buyers want to stand out and be distinctive," Noertjahjo went on.
He said Daihatsu's YRV was aimed at buyers who were young, fun, and whose choice of car would reflect their dynamic lifestyle.
"We're selling a lifestyle here," Noertjahjo said.
"This is a new class of car, and so far our competition is confined to the A-class and Peugeot 206," he went on.
He said he hoped to grab a 30 percent share of the market among the three brands competing in the same class.
YRV's sales target, he continued, was high considering that CBU cars were more expensive than locally assembled models.
He said that cars like YRV, which were aimed at a niche in the market, were not economically feasible for local assembly.
"The small demand cannot justify the cost of assembling them (the cars) here," he explained.
He said that demand for luxury CBU cars were dropping, which gave way to imports for middle-of-the-range cars like YRV.
Daihatsu's optimism of meeting YRV's sales target, is based on the car's success in Japan after its launching there last year.
"The YRV is Daihatsu's flagship in Japan," Noertjahjo said.
But the Indonesian Association of Automotive Industries (Gaikindo) has said that competition is tough, especially after cheap Chinese cars are predicted to hit the market sometime this year.
Gaikindo also blamed the country's continued security uncertainties behind local consumers' lackluster buying intentions. (bkm)