Nissan to bolster presence in RI's automotive market

JAKARTA (JP): French-Japanese automaker Nissan Motor Co Ltd. is seeking to enhance its presence in Indonesia to obtain a greater share of the country's automotive market.

Visiting Nissan president and chief executive officer Carlos Ghosn said on Monday his company expected to hit a 10,000-unit annual sale in the next two years, as against last year's sale of less than 1,000 units.

Ghosn said the company also expected to secure 10 percent share of the country's automotive market in the long term.

"We're eager to be back in Indonesia, not for one or two years, but for the long term as Indonesia is a promising market. That's why we've committed to growing here," Ghosn told reporters in a media briefing during his first visit here.

The French automotive firm owns 35 percent of Nissan Motor Co. Ltd.

Ghosn said the company's move to increase its shareholding in PT Ismac Nissan Manufacturing -- a joint venture between Nissan Motor Co Ltd. and local car distributor PT Indomobil Sukses International -- last May was an indication of its strong commitment to the country's automotive industry.

Nissan raised its stake in the company to 75 percent from 35 percent after repaying the company's debt worth US$20 million.

The joint venture has been renamed PT Nissan Motor Indonesia (NMI), where Indomobil still holds a 25 percent stake.

The joint venture suspended its vehicle production in Indonesia in September 1998 following the Asian economic crisis. It resumed its production in May last year.

Ghosn said NMI, which was expected to fully operate this September, would bolster Nissan's presence in the country with "more diversified" types of cars.

Nissan is introducing several models such as Nissan Sentra and Nissan X-Trail in the local market which would be competitive in terms of production cost and price, Ghosn said, adding that he is confident Nissan will be able to achieve its sales target.

Nissan, which sold 938 cars last year, is projected to sell 3,500 cars this year.

Indomobil's president Subronto Laras said Nissan was likely to achieve its target this year, given the strong demand of Nissan products.

"Nissan's sales is quite bright. In the course of the last two months, we've sold 350 units each month," Subronto said.

Subronto welcomed Nissan's ambitious sales target, but he warned that Nissan must develop specific products which could compete with popular brands like Suzuki Futura, Suzuki Carry, Toyota Kijang and others.

According to the Association of Indonesian Automotive Industries (Gaikindo), the country's car sales sharply recovered to 300,000 units last year, from 93,000 units in the previous year. (03)