Imported cars dominate country's largest auto expo

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)