KIA Motor eyes 10% of RI auto market

KIA Motor eyes 10% of RI auto market

KUTA, Bali (JP): PT KIA Mobil Indonesia, the sole distributor
of South Korean KIA Motors' products targets between eight and
ten percent of Indonesian market annually.

Company chief commissioner AM Hendropriyono briefed
journalists here on Thursday evening that with the sales target
his company would ship a total of 14,900 cars of various types
from South Korea per year.

Hendropriyono made the statements before the opening of KIA
Motors Corporation distributors conference, which involved
distributors from 15 countries. The event took place at the
Kartika Plaze Hotel here.

He said he was optimistic the company would reach the target
because KIA had 50 car and spare part distributors in 22
provinces in the archipelago, and KIA products had superiority
compared to Japanese, European and American products.

"Our products are competitive against European cars," Hendro
claimed.

One of the superiority of KIA products was the price, he said.
"Carnival, the newly introduced family van, costs only Rp 245
million (US$30,625) each, whereas a car of the same class, such
as Caravelle, costs Rp 575 million."

Carnival minivan of 2,500 cc, which was launched in Indonesia
only last year, has sold 800 units until March 31, 2000, the
company data say.

In the same period, 350 units of four-wheeled, 2,000-cc
Sportage, were sold.

"In Bali alone we have sold 200 Sportage," Hendropriyono said.

"KIA products have good resale value. A used Carnival is still
valued at Rp 240 million. Yet people are competing to buy it,"
Hendropriyono said, assuring that KIA products marketed in
Indonesia were of the same specification with those sold in other
countries like the U.S. and Europe.

Fair

Meanwhile, director general of KIA Mobil Indonesia Agus
Tjahajana said in his address to the conference participants that
the government of Indonesia had been working out to deregulate
import licensing.

In June of last year, the government launched a new automotive
policy to anticipate a global trade liberalization as ruled by
WTO regulations, Agus said.

"The new policy had taken into account both external and
internal factors. The first is the global change in automotive
sector, the second is the condition of regional automotive
industry, especially those in ASEAN countries, the third is the
international and regional deals. The internal factors taken into
account are continuation of the development of the existing
automotive industry and the availability of more affordable
cars," he said.

"I therefore would like to assure all of you that there will
be no more unfair business practice in automotive business in
Indonesia."

According to Agus, the domestic market was prospective in the
near future as Indonesian economy was on the way to recovery.

"I could ensure all of you that investment climate in
Indonesia is quite conducive and becomes more conducive in the
time to come." (zen/sur)