Honda to start exporting Stream

Honda to start exporting Stream

Adianto P. Simamora, The Jakarta Post, Jakarta

PT Honda Prospect Motor, the local sole agent for Japan's third-
largest carmaker, Honda Motor Co Ltd., announced on Thursday
plans to start exporting Stream minivans to Thailand next month.

"The first shipment will be in August, totaling some 180
vehicles. But next year we will increase it up to 360 vehicles
per month," Satoshi Okomoto, vice president of Honda Prospect
Motor, announced on Thursday.

Satoshi said the company expected to export some 4,000 to
6,000 vehicles annually to meet the high demand in Thailand.

To start with, Honda will supply the Thailand market from its
plant in Sunter, North Jakarta, which has a total capacity of
17,000 vehicles per year.

But Honda is constructing a bigger plant in Karawang, West
Java, which will have a total capacity of 40,000 vehicles per
year.

Honda has invested some US$30 million to set up the new plant
here to make the country the production base of Stream minivans
for the ASEAN market.

Indonesia is the only country outside of Japan that produces
the Stream minivan.

"We hope the new plant will start production next March, two
months earlier than previously scheduled so as to meet high
demand both in Thailand and the domestic market," he said.

Satoshi also expressed optimism that the sales of Stream on
the domestic market would top other Honda models.

"The demand is high here as many domestic buyers are standing
in line to buy Streams," he added.

Honda is expected to sell some 500 to 600 Streams per month in
the Indonesian market.

As of June, he said, Stream sales had reached some 2,300
units, making it the main contributor to the company's total
sales of about 4,912 vehicles here.

Honda predicts that its total car sales this year will reach
20,000 vehicles from 10,600 last year.

Meanwhile, Jonfis Fandy, senior marketing and sales manager of
Honda Prospect Motor, said the current weakening of the rupiah
against the U.S. dollar would cut down car demand for the
remainder of the year.

"The decline in the value of the rupiah will push automobile
prices up and will in turn reduce domestic demand," he said.

He predicted that the domestic car market this year would only
reach about 310,000 vehicles.

The Association of Indonesian Automotive Industries (Gaikindo)
earlier predicted that 2002 car sales would reach some 320,000
vehicles, up from last's year's figure of 300,000.

The association has revised upward its forecast for domestic
sales from the previous figure of 300,000 as the economy
continues to show signs of stability.

Gaikindo earlier reported that as of May 2002, total car sales
reached some 130,500 vehicles, a 15 percent increase compared to
the same period last year.