Economy cars draw avid interest
Tony Hotland, The Jakarta Post, Jakarta
The recent launch of economy car model by major automobile manufacturer Toyota under its Avanza line -- priced under Rp 100 million (US$11,772) -- proves how huge a market exists here for non-exclusive vehicles.
Astra International corporate communications head Yulian Warman said the move was simply an effort to expand Astra's market and to counter the flat sales of Toyota's enormously profitable brand, Kijang.
"We conducted surveys after the economic crisis and discovered that the demand for inexpensive cars was astounding; we didn't have a product in that segment," he told The Jakarta Post late last week.
Astra International owns a 51 percent stake in Toyota-Astra Motors, the local distributor of Toyota automobiles.
Toyota is not the only automaker turning its attention to this market, let alone the first. Toyota Motor Corporation's subsidiary Daihatsu Motor also just recently launched the Daihatsu Xenia, which sells for between Rp 60 million to Rp 90 million.
These two Astra products, said Yulian, had received a "phenomenal" welcome. He said they had already received 19,000 orders for Avanza and 9,500 for Xenia, although the cars were only launched on Jan. 15.
Other products in the market include big names Chevrolet Spark, Suzuki Carry and Karimun, and the upcoming Every, also from Suzuki.
While Yulian acknowledged that the growing market for lower- priced cars might eclipse the sales of used cars and motorcycles, he said Astra was simply offering more choices and this was nothing but healthy competition.
The hype over Astra's novel products was observed on Saturday during an exhibition of Xenia at the Semanggi Expo Center, Central Jakarta.
"I like the car ... I might grab an order form. The car's quite affordable, especially because it looks much like the Kijang," said Riyanto, 31, upon returning from a test-drive.
Another visitor, Cynthia, 27, said after handing in her order form that "my husband and I have been thinking of replacing our motorcycle, and then there's this car. I think it's affordable enough in times like these".
A Xenia sales executive said numerous visitors interested in the car had submitted order.
Indonesia has been experiencing good performance in the automotive sector, especially with the growing demand for cars at prices under Rp 100 million.
In 2003, approximately 100,000 economy cars were sold, 60 percent of which were pick-up trucks, and the remainder, mini- buses.
About 175,000 cars priced over Rp 100 million were also sold last year.
Association of Indonesian Automotive Manufacturers (Gaikindo) head Bambang Trisulo said the growth of this particular market would be profitable for the industry as a whole.
"Producers of car parts will make a profit. It will also create jobs and employ more human resources," he said.