Mercedes takes hatchback orders

JAKARTA (JP): PT Mercedes Benz Indonesia, capitalizing on recent slashes in import tariffs, said on Monday it was taking orders for its A-class hatchbacks in fully built form for delivery early next year.

"We have received quite a number of orders for the A-class," deputy director Anto Nurdiyanto told The Jakarta Post.

He declined to give the number but said it was promising. "We hope to be able to accommodate all the bookings and satisfy all the customers."

Mercedes launched the hatchback in Germany several years ago in an effort to expand its market beyond the traditional segment of luxury cars. It became a popular vehicle in Europe and will become available in Indonesia at the beginning of next year.

A-class cars will be priced at about Rp 200 million off-road at the current rupiah exchange rate.

Mercedes also will import fully assembled M-class four wheel drive and the S-class cars, among the most expensive in its range with prices expected to reach from Rp 1.15 billion to Rp 1.39 billion.

In compliance with the World Trade Organization's ruling, the government last month deregulated the automotive sector, slashing import tariffs on luxury sedans to 65 percent from 175 percent. Luxury cars are still subject to 30 percent to 50 percent taxes on luxury goods.

Anto said the new policy would affect prices of new orders of all types of Mercedes cars, but not for existing units of C-class and E-class cars which arrived in completely knocked-down form.

The company has a work force of 1,125 in its local plants, assembling Mercedes sedans, trucks and buses.

Anto declined to comment whether the company would continue to assemble the C-class and E-class cars locally, or import them in fully built forms.

Like other automakers, Mercedes recorded a massive slump in its Indonesian sales, falling to 444 units in 1998 from 3,400 in 1997.

The first half of 1999 has been even worse, Anto said. "We'd be content if we could sell 200 units this year." (02)