Imported cars dominate country's largest auto expo
JAKARTA (JP): Luxurious imports dominate the Gaikindo Auto Expo 2000, the largest automotive expo held in the country amid early signs of economic recovery.
International automakers like BMW, Audi, DaimlerChyrsler, GM, Volvo, Toyota, Nissan, Hyundai, Mitsubishi, Daewoo and KIA packed the exhibition with their latest models, lured by significant increases in domestic car sales over the past several months.
The event, organized by the Indonesian Association of Automotive Industries (Gaikindo), was jointly opened by Minister of Communication Agum Gumelar and Minister of Industry and Trade Luhut Pandjaitan on Wednesday and will last until Sept. 12.
Among the imported completely built up (CBU) cars that are drawing most attention due to their extraordinary styles are German carmaker BMW's James Bond-style Z8 sport car, which sells for about Rp 2 billion (US$250,000), Audi's compact TT coupe, and KIA's futuristic Genesis.
South Korean automaker Daewoo launched five new models -- sedans Leganza, Nubira and Lanos, compact minicar Matiz and family van Tacuma.
Ssangyong, also from South Korea, launched its high-end product, Chairman, a sedan powered by a Mercedes-Benz engine and looks pretty similar to typical Mercedes-Benz sedans.
Another South Korean firm KIA, which has a strong presence here, launched 1,000cc minicar Visto valued at Rp 80 million, while Japanese firm Nissan launched the Silvia sport car with a 2,000cc engine and a price tag of Rp 395 million exclusive of tax.
Automakers exhibiting at the expo said that CBU cars, especially the compact minicar, sport utility vehicle (SUV) and multipurpose vehicle (MPV) models, had been the hot selling items this year.
BMW, for example, said it had sold no less than 100 units of its stylish Rp 609 million worth Z3 Roadster thus far this year, while Daewoo claimed to have sold 1,000 units of its Rp 84 million worth minicar Matiz.
Minister of Industry and Trade Luhut Pandjaitan acknowledged that imported CBU vehicles had been flooding the country since the government opened up the country's automotive market late last year.
However, he said the surge in imported cars would become a good drive for the growth of the local car market.
The decision to lift the restriction on imported vehicles had some positive results including higher tax revenues for the government and a boost in the activities of local car dealers, he said.
Nissan's sole distributor executive Bagus Pranoto predicted the craze for imported CBU cars would only last for two or three years.
He said only certain models with the most reasonable prices would be able to maintain high sales.
The rest will see their sales decline, if not completely abandoned by the market due to their exorbitant prices, he added.
Audi's country manager for Indonesia Nicholas Wilson said the company was very selective in importing CBU models.
He said Audi, which was now offering three models, Audi A4, Audi A6 and Audi TT, would launch the Audi A3 later this year.
The German carmaker will launch several others next year to anticipate growing market demand and fiercer competition from main rivals in the upper-luxury segment like BMW, Mercedes-Benz, Jaguar and Volvo, he said.
Wilson expected Audi to control at least 10 percent of the upper-luxury market with total sales estimated to grow to around 5,000 units next year from 4,000 units this year.
Hyundai, KIA and Daewoo said they were very optimistic that they could beat the European and American firms especially in the medium to small size and multipurpose vehicle segments.
KIA Mobil Indonesia's sales and marketing director San Gunawan claimed KIA's multipurpose vehicle Carnival currently controlled 70 parent of that market segment.
"I believe in the next two to five years, Korean cars will dominate this particular market segment. We have excellent style, great engine and most of all much better price," he said.
He predicted the European and American brands would likely lead in the big size sedan and sport-utility vehicle market. (cst)