Honda raises target amid signs of market recovery

JAKARTA (JP): Sole distributor and assembler of Japanese Honda cars in Indonesia PT Honda Prospect Motor has increased its sales target of New Civic cars amid signs of recovery in the country's depressed automotive market.

Vice president Yoshiaki Nakamura said here on Wednesday he expected to sell up to 1,500 New Civics by March 2000, which is up from an initial forecast of 1,000.

"We revised the figure because we have been able to sell 487 since we launched the first series of the new model early this year," Nakamura said after the relaunch of the new car.

The new 1600cc Civic Ferio comes in four color options, using a variable valve timing and lift electronic control system (VTEC) for its engine and programmed fuel injection (PGM-FI) for its fuel supply system.

The new Civic Ferio is available in either manual or automatic transmission, each of which is sold at Rp 209 million (about US$29,850) and Rp 221 million respectively.

Honda sells its cars here under Accord, Civic and City models.

Company marketing manager Jonfis Fandy said 450 Accords have so far been sold, while 487 Civics and 219 City models have also been sold.

Honda's car sales in Indonesia dropped by 83 percent in 1998 to 1,182 from 6,872 in 1997.

According to data from the Association of Indonesian Automotive Industries (Gaikindo), Honda's sales increased from 234 in the first quarter to 417 in the second, but fell to 241 in the third.

The country's total domestic car sales showed an improvement in September by rising to 11,212 from 8,908 in August.

Total car sales increased from 8,840 in the first quarter to 14,039 in the second and 28,756 in the third, which ended in September.

Astra still dominated the country's domestic car sales with total sales of its BMW, Daihatsu, Peugeot and Toyota amounting to 313 in the first quarter, 421 in the second and 571 in the third.

Gaikindo recently revised its domestic car sales target this year from 50,000 to 60,000 due to the quicker than expected turnaround in the country's economy.

Domestic car sales reached 58,000 in 1998.

Director of service and parts of Honda Prospect Motor, Bunadi Kurniadjaja, said during the launch of the New Civic Ferio that the company would cut prices by up to 50 percent for most of Honda's spare parts in November.

"We will provide the discount to help our customers obtain genuine spare parts, such as timing belts, clutches, fuel strainers and air cleaners. This is in response to mounting complaints we have received from customers about the expensive price of spare parts," he said.

The price of automotive spare parts has increased up to 300 percent during the crisis.

Honda has increased the price of its spare parts by around 250 percent, Bunadi said.

The discount period will be in effect until March next year. (cst)