Tue, 26 Mar 2002

Function takes precedence over technology

Jonminofri Nazir, Contributor, Jakarta

Last week a European automotive company introduced the latest technology: a single pedal car. While in cars with automatic transmissions the clutch pedal has long been nonexistent, this new technology utilizes a single pedal that combines both the accelerator and the brake. When one wants to increase speed, the top part of the foot, near the toes, presses the pedal and for the brakes, the entire bottom part of the foot is used to press the same pedal.

Will this new invention be accepted by the market? The question is difficult to answer now. However, according to Jimmy Lukita, a racer who is always asked to conduct test drives on new cars in Indonesia, the new technology could be acceptable to consumers, especially those in Indonesia.

"The problem is how to train one's foot in getting used to only one pedal. It's only a matter of acquiring a new habit," Jimmy said.

The single pedal may be welcomed not only as a new technology, but also a new style in driving cars, because driving will become more relaxed as one does not have to move the right foot from one pedal to another in operating the accelerator and the brake.

"It's suitable for those who like to relax or enjoy easy driving," commented Jimmy, who is also the owner of Jim's Sport workshop. He warns, however, that those interested should test it out and get accustomed to it before driving on congested streets.

"Usually consumers accept new technologies quickly," said the racer who has driven all types of cars. As far as he can remember new automotive technologies have always been well received, that is why he predicts the single pedal car will likewise get a warm reception.

The application of the single pedal is indeed something new, though no manufacturer has used it in their latest products. To Jimmy it is not a radical change in the automotive industry, as it simply combines two functions in one piece of equipment.

If that is so, there has practically been no new technology causing essential changes in the automotive industry for the past 10 years. Most of the changes have been nonessential and for accessories, for example, the body design, the headlights and rear lights, the interior and so forth.

This is what differentiates automotive products from those of information technology, where changes are drastic and fast. One can easily switch to cars of different makes and still drive any with comfort. However, each information technology product comes with its own unique characteristics and specifications and some people are uncomfortable with such speedy developments.

Now let us take a look at some of the newcomers to Indonesia's automotive market: Honda Stream, the new Mitsubishi Kuda and the Long Escudo. All these three brands have added something new, which are not essential changes, but are enhancing features in comparison to their earlier models.

Honda Stream in its home country, Japan, is sold in two engine versions, the 1,700 cc and the 2,000 cc, but in Indonesia, PT Honda Prospect Motor is only selling the 1,700 cc version. It is a four cylinder DOHC (Dual/Double Overhead Cam) engine with VTEC (Variable Valve Timing and Life Electronic Control) technology that uses fuel more efficiently and increases engine power. Honda Stream combines the characteristics of a sedan with a MPV (Multi Purpose Vehicle), which is popular in Indonesia, and can accommodate eight passengers, though ideally six would sit more comfortably.

The main changes in Honda Stream, in comparison with the previous Hondas, is in its body and design. The headlights, for instance, resemble huge eyes that bulge when they are switched on at night.

The Stream's interior, especially the front compartment, is more spacious, because the stick shift is connected to the dashboard, just like in Toyota Kijang, Mitsubishi Kuda or Isuzu Panther. Another notable addition is numerous glass holders, which are within easy reach. This gives the impression that the car has been created for long distance journeys.

Another new car in the market, the latest Mitsubishi Kuda, produced by PT Krama Yudha Tiga Berlian Motors, also does not feature any essential changes. The new technology proudly presented is its automatic transmission, which is equipped with a power mode for maximum acceleration.

Compared with the previous edition and other brands in the same category, the engine boasts greater power. Its double wishbone and coil suspension, plus the stabilizers, absorb shocks and vibrations better, giving passengers a smoother ride. Mitsubishi Kuda obviously attempts to provide more comfort for its passengers. However, this superior feature, which is actually quite important, has not speeded up the sales, when one compares them to Kijang.

This year Suzuki has launched the latest edition of Escudo, called Suzuki Grand Escudo XL-7, more popularly known as the Long Escudo. The length has been added in response to the local market demand, which tends to prefer family type vehicles. Escudo, however, has retained its original image with the interior look of a sedan and the exterior of a jeep.

Long Escudo is indeed much more spacious and its current capacity has now increased to seven adult passengers, while still providing a comfortable seating configuration.

These new cars and other new brands give the impression that not many basic changes have occurred, especially in their technology or engine.

In fact these changes are not a prime consideration for Indonesian consumers when purchasing a car. In Jimmy's observation they regard the car function as the most important factor, while technology, luxury and brand does not affect their purchasing decision. That is why Korean brands have acquired a nice spot in Indonesia's car market.

Jimmy's observation is quite accurate when one views the car sales figures. For example, all MPVs (Multi Purpose Vehicles) or family vans have enjoyed higher sales compared to other types of the same brands.

The figures in the table below clearly indicate that for any manufacturer to grab a meaningful share of Indonesia's car market, it has to be able to create a functional vehicle, with a larger passenger capacity and a more comfortable interior, but not necessarily focusing on new technology.

Therefore the steps taken by Mitsubishi Kuda are actually correct: enhancing the interior and providing more comfort. Its powerful engine should in fact be another draw card to pull more buyers than Kijang. But the actual figures tell another story. The 70 percent market share of minivans or family vans enjoyed by Kijang obviously shows that consumers still prefer Kijang over other brands.

Today, after the economic crisis, the people are making car purchases considering car function over and above any other considerations. This is verified by statements made by rich and successful businesspeople and celebrities as quoted by the local media. Tong Djoe, the business tycoon, for example, has locked up his Mercedes, Bentley and Jaguar in his garage. Now he goes everywhere in his Panther, Kijang or Suzuki Carry.

"These cars get me everywhere in time, it is just the same," he said, as reported in Kompas of March 12, 2002. This clearly indicates that he prioritizes function, above comfort, prestige, technology and other considerations.

Others, like Sofyan Wanandi, a businessman and OC Kaligis, a lawyer, who undoubtedly could afford to purchase cars with superior technology, obviously opt for a functional car for their daily use. The reasons they give are varied: living a simple life and avoiding an opulent lifestyle amid the current economic burden on the common people and avoiding mugging and car theft. They cite occurrences where thieves target luxury car rear vision mirrors, because these mirrors alone can cost millions of rupiah.

Apart from function, the Indonesian consumers also take into consideration the price factor, the resale value in the second- hand car market and maintenance costs, including efficiency of fuel consumption. The car model becomes the last point of consideration. The advancement in technology also seems feature less in making a purchasing decision.

However, in the long run, technological advancement will still play an important role. If a popular vehicle in Indonesia is also equipped with new technology, it certainly will give its consumers added value.

Furthermore when environmental protection becomes an important consideration behind a purchase, cars with environmentally- friendly technology will certainly become the market's prime choice. This has indeed become the focus of attention of car manufacturers worldwide: creating cars with environmentally- friendly engines and bodies.

Slowly but surely, car producers are starting to apply environmentally-friendly technology in their products. The latest car with such features is Peugeot 307. Part of its body is made from recycled material.

Sales of favorite cars in 2001: Toyota Kijang (61,734 units), Isuzu Panther (26,636 units), Mitsubishi L300 (16,381 units), Daihatsu Taruna (9,865 units), Suzuki Escudo (9,523 units), Mitsubishi Kuda (6,019 units).