Nissan aims to boost sales through discounts on original spare parts
Nissan aims to boost sales through discounts on original spare parts
Sandy Darmosumarto, The Jakarta Post, Jakarta
PT Nissan Motor Indonesia hopes its recent move to reduce the
price of original spare parts for all its models will strengthen
its brand, and, as such, help increase its sales next year.
Teddy Irawan, deputy director for national sales and promotion
with Nissan Motor Indonesia, told The Jakarta Post on Friday that
around 200 components were being sold at a variety of discounted
prices, ranging up to 30 percent, starting from Dec. 1.
"It is part of our long-term strategy to boost competitive
advantage and customer satisfaction," Teddy said.
He did not, however, indicate the sales target for next year.
The firm has targeted its sales at 6,600 this year, up from 3,600
the previous year.
Chairman of the Association of Indonesian Automotive
Manufacturers (GAIKINDO) Bambang Trisulo praised Nissan's move,
saying it would contribute positively to Nissan car sales.
According to Bambang, lower spare part prices would indirectly
help the brand's reputation for quality. The proliferation of
low-priced and low-quality fake spare parts had caused a negative
impact on car brands. But with the price of original parts being
reduced, price-conscious customers would choose the more durable
original parts.
"Currently, sales of non-original parts make up around 30
percent of overall sales in the components industry. The only way
to reduce their rising share is to beat them through lowering the
price of original parts," he said.
Teddy said that among the components on discount were brake
pads and shock absorbers. He did not specify whether the price
reduction was permanent or temporary; nor did he specify whether
the discount affected spare parts produced by original equipment
manufacturers (OEM) or replacement equipment manufacturers (REM),
or both.
OEMs supply original components directly to car manufacturers.
Thus, a reduction in the price of components may affect the price
of automobiles. REMs, on the other hand, cater for businesses
that offer after-sales service. Fake components are produced by
REMs.
Deputy head of the purchasing division of PT Toyota Motor
Manufacturing Indonesia A.K.Hadi told the Post that Toyota had no
plans to follow Nissan's move as the price of spare parts for
some Toyota products, particularly the Kijang van, was already
low.
Kijang's spare parts are cheap because they are produced en
masse by Toyota due to high-volume sales of the van.
He admitted, however, that Toyota had been seeking to reduce
the price of spare parts for some products, particularly its Dyna
trucks.
"Toyota has initiated the manufacturing of lower-priced
components for Dyna trucks under the brand of Arpi. The Arpi
brand is inferior in quality, and is priced around 20 percent to
30 percent below Toyota's genuine Aspira brand," said Hadi.
"The higher local materials content in the Arpi range is the
reason for its lower price. The price of imported components is
determined to a great extent by currency exchange rate
movements," he commented.