Honda launches new sedan amid tight competition

JAKARTA (JP): PT Honda Prospect Motor, the sole agent of Japan's Honda Motor Co. Ltd,. launched here on Friday a new model of its Honda Civic sedan amid the growing competition in the domestic automotive market.

The company's vice president Yoshiaki Nakamura said he was optimistic that the public would respond enthusiastically to 1,700 cc New Civic despite the tight competition.

"We hope we will be able to sell 2,000 units of the new model this year," he said following the launching of the car.

Nakamura said the previous model, which was launched in 1999, enjoyed a brisk demand, with sales reaching 1,200 units last year.

According to him, the previous model successfully controlled 18 percent of the market segment for medium-sized sedans with capacity between 1,500 cc and 1,800 cc.

With the 18 percent share, Honda Civic grabbed the second place after Toyota Corolla, while Mitsubishi Lancer took the third place.

The company spokesman Jonfis Fandy also said that Honda would have a lot of buyers this year as its main competitors would not be launching any new models this year.

"This sedan is creating a new global standard" he added.

He said that New Civic adopted the latest technology on G- Force control to reduce the risk of accident by using better quality steel in its body. It is also fitted with dual safety bags.

Jonfis said buyers would also be able to make a savings of approximately 33 percent in their fuel and maintenance costs as New Civic's fuel consumption is only equivalent to that of a 1,500 cc sedan, and its maintenance interval is longer compared to other 1,700 cc sedans.

The New Civic, which comes in four series, sells between Rp 232 million (about US$24,400) and Rp 256 million on the road.

Automotive analysts predict gloomy sales in the local car market this year due to political uncertainties.

The Indonesian Association of Automotive Industries (Gaikindo) predicts a zero growth although the Ministry of Trade and Industry estimates a 6 percent growth to 320,000 units.

Last year, car sales jumped to 300,000 from 93,843 in 1999 on the back of improvement in some economic sectors.

According to Gaikindo's record, sedan sales significantly increased to 47,770 units from only 11,041 in 1999 and light van sales rose to 211,900 units from 1999's 67,718.

Truck, jeep and bus sales would likely reach 40,330 units, up from 1999's 14,084 units. (05)