Luxury automakers do brisk business at expo

JAKARTA (JP): The Gaikindo Auto Expo 2000 ended here on Tuesday, with big names like DaimlerChrysler, Volvo, BMW, Audi and Ranger Rover reporting brisk business over the seven-day display.

Deputy marketing director for DaimlerChrysler Indonesia Anto Nurdiyanto said that orders for the latest Mercedes C-Class model reached 500 cars, far higher than the company's initial estimate.

"From the opening of the show (Wednesday last week) until Sunday, we've seen an average of 100 orders per day for the new C-class alone," Anto told The Jakarta Post at the DaimlerChrysler stand.

He said people did not mind the price tag of Rp 390 million (US$46,900) for the cheapest C-Class model.

"There is a long waiting list, and we haven't even begun its production here," he added.

C-Class cars will be brought to Indonesia in completely knocked down form and buyers will have to wait until March 2001 before owning one because they will first be assembled in the local plants, Anto said.

Anto said that the smaller A-Class, which arrived on the local market early this year, was selling over 100 units per month.

While the E-class and the existing C-Class, he said, were selling at between 20 units and 25 units and 30 units and 35 units per month respectively.

The automotive show was held by the Indonesian Association of Automotive Industries (Gaikindo) and by exhibition organizers Dyandra.

As of Monday, the show, Gaikindo's first since 1996, had been visited by some 170,000 people.

General Motors Indonesia (GMI) also reported promising sales figures of 132 units until Tuesday morning.

"Prospective buyers amount to 600 people and we will definitely follow them up," GMI marketing manager Paulus B. Suranto said.

He said some 65 percent of the 132 units sold so far were Chevrolet family wagon Zafiras for around Rp 207 million off the road.

GMI launched the Zafira in late August. Paulus estimated that he would sell 300 Zafiras this year, and another 1,800 the next.

Meanwhile, Volvo took the opportunity to launch its S-80 model during the show. It claimed to have sold 15 for about Rp 696 million each.

Chief executive officer for Volvo at the Indomobil Group, Djunaedi Hadiwidjaja, said that Volvo was undergoing an image change with the introduction of the new S-80.

"Volvos are primarily known as a cars for executives and companies. The S-80 will now attract private owners as well," Djunaedi explained.

He said the S-80 would replace the current, more conservative Volvo models presently seen on Jakarta streets, such as the S-60.

"We expect to sell 30 units of the S-80 each month," he said.

Asked whether sales of luxury cars would remain high, he said that demand would grow along with the economy.

"As foreign investors enter Indonesia, more expatriates will arrive, and they will not chose cars of a lesser quality than they are used to at home. Here is where demand for our cars will remain high," Djunaedi said.

But Gaikindo executive Freddy Sutrisno said that despite the high sales of luxury cars, demand for the cars was actually slowing.

"Sales reached their peak during the first quarter of this year but now we're seeing a steady decline," Freddy said.

He said that since the economic crisis people had refrained from buying luxury cars, something which was causing the surge in demand for them.

"Back then, the luxury car market was empty, now its getting full and the tight competition is up to those who have entered the market late," he said.

Freddy said that although luxury cars were dominating the show, sales of vehicles for commercial use, like the Toyota Kijang, Isuzu Panther and Mitsubishi Kuda would make up the majority of transactions.

According to a Toyota marketing officer at the show, some 80 percent of the 200 Toyota cars sold at the show were the Kijang model priced at about Rp 155 million.

Freddy said that the market for commercial cars took up an average of 75 percent of the total car market, of which only 12 percent were sedans.

Gaikindo, he said, estimated that car sales this year would hit around 150,000 units up from 98,000 units last year.

On Monday a group calling itself the Anti-Luxury Cars Movement (GAMM) staged a protest near the Jakarta Convention Center where the auto expo was being held.

The group demanded the government ban the imports of luxury cars, saying they provoked class envy.(bkm)