Mitsubishi seeks to comply with emission standards

Mitsubishi seeks to comply with emission standards

The Jakarta Post, Jakarta

After making its presence felt in the Indonesian automotive
market over the last 35 years, Japanese car manufacturer
Mitsubishi has now booked a total sales of 1.5 million units, and
plans to invest US$50 million in its plants to comply with
emission specifications.

"We are proud of our achievement and in our effort to comply
with the environmental regulation, we're adjusting our plants to
produce engines that comply with the Euro 2 standard," said
Fumio, president director of Mitsubishi's Indonesian sole
distributor PT Krama Yudha Tiga Berlian Motors (KTB) on Friday.

Following a global move to reduce vehicle emission, Indonesia
applied in 2003 the Euro 2 standard, which is deemed safer and
environmentally friendly. A resulting ministerial decree stated
that it is compulsory for the industry to produce vehicles that
comply with the standard as of Jan. 1, 2007.

The company has started investing for the adjustments earlier
this year. "We have invested around 50 percent of the total
amount and will continue with the rest to meet the 2007
deadline," Kuwayama added.

Despite its success in leading the local market in commercial
vehicles, the company still lags behind in marketing its more
lucrative passenger cars.

"Out of the 1.5 million units we have sold in thirty years, 50
percent were light commercial vehicles, 42 percent trucks and
only 8 percent passenger cars," said KTB marketing director
Rizwan Alamsjah.

Its plant in Pulogadung has a yearly production capacity of
120,000 units.

With its large Indonesian market, KTB was able to top the list
of sales in the Southeast Asia region, especially for commercial
vehicles. "As a comparison, in Thailand we only targeted a sales
of 50,000 unit this year," said Kuwayama, adding KTB targeted a
100,000 unit sales here this year.

As of early September, the company reported sales of 76,604
vehicles, dominated by commercial vehicles. Meanwhile, the
national car sales figure in the same period stood at 463,865
units.

"Our sales have increased by 14.5 percent as compared to the
same period last year," he said. However, with the recent
fluctuation in exchange rates and the fuel prices hike, the
company predicted a slower growth until the end of the year.

Rizwan said that currently prices of vehicles in the market
had risen by Rp 2 million to Rp 6 million.