GM prolongs prices of Opel cars
JAKARTA (JP): PT General Motors Indonesia, the producer of Opel vehicles, said on Monday it would maintain its current prices, despite a cut in import duties for imported cars.
Director of sales, marketing and aftersales David Purcell told The Jakarta Post that General Motors' main product -- the Opel Blazer sport utility vehicle -- was locally assembled, so the impact of the new duties and tax structure would be minimal.
"At the moment we will maintain our current prices. It is too early for us to make any decision, as there are many other factors that affect our pricing," he said.
Purcell said Opel Blazer vehicles were assembled at the General Motors' plant in Bekasi, West Java, with a local content of 20 percent.
Under the former automotive regulation, as a locally assembled vehicle with a 20 percent local content, Blazer was eligible for import duties of 30 percent and a luxury tax of 35 percent.
On Thursday the government announced a new automotive policy, in which import tariffs and luxury taxes on automobiles were restructured and incentives removed for vehicles with high local content.
Under the new policy, import tariffs on completely built up (CBU) commercial cars category one, such as utility vehicles, were cut to 45 percent, from 105 percent previously. Luxury taxes were set at between 10 percent and 30 percent, depending on engine capacity, compared to 35 percent previously.
Import duty on complete-knocked-down (CKD) vehicles, or locally assembled utility vehicles, was set at 25 percent. Depending on their engine capacity, luxury taxes on CKD vehicles will be set between 10 percent and 30 percent.
"CBU vehicles in the same category with Opel Blazer may enjoy a decrease in import tariffs and luxury taxes under the policy. However, as a locally assembled vehicle, the changes in the duty applied to Opel Blazer are minimal," he said.
Purcell said the new Opel Blazer LT was currently priced at Rp 209.49 million, while the new Opel Blazer DOHC was Rp 188.67 million. Both prices do not include registration fee, transfer-of ownership tax and vehicle tax.
General Motors' public relations manager Helena Abidin said the company hoped Indonesian customers would not think the new automotive policy would reduce car prices.
"There are misinterpretations that the new automotive policy will lower car prices. We want our consumers to understand that the reduction in import duties is applied to CBU vehicles, not locally assembled vehicles like our Opel Blazer. We hope that potential buyers do not expect substantially lower prices," she told the Post.
Helena said the company, the Indonesian arm of U.S-based General Motors, sold 350 units of the Opel Blazer in May, leading the sport utility vehicle segment with a 50 percent market share.
The new automotive policy, which cut import duties on several automotive components and abolished the local content requirement, is expected to lower prices of imported four-wheeled vehicles and motorcycles.
Potential buyers have reportedly delayed purchasing vehicles in the expectation of lower prices as a result of the new policy. (gis)