Peugeot sets its sights on ASEAN market

By Russell Williamson

PEUGOET's launch of the midsize 406 sedan in Indonesia earlier this month signaled the beginning of the French carmaker's aggressive strategy to substantially increase its market share and volume in the ASEAN region.

The area manager -- Southeast Asia of Peugeot's International Operations Division, Philippe Mady, said the company hoped to double its volume within ASEAN in three to four years.

Mady said he expected Peugeot to lift sales from nearly 10,000 cars this year to 20,000 by about 2001.

He said this was part of an overall strategy by Peugeot to improve its passenger-car market share outside Europe. Peugeot currently has about a 12 percent to 15 percent share of the total passenger-car market.

"We want to double our market share outside Europe within the next five years but because of the growth here, we think we can achieve this target in three to four years," Mady said.

However, he said in order to achieve that level of growth there needed to be a strong commitment from both Peugeot and its regional partners.

In Indonesia, Peugeot cars are assembled and distributed through PT Multi France Motor (MFM), a subsidiary of Astra International.

Mady said the quality of this relationship was one of the best examples in the region and, together with the right products, would help Peugeot achieve its sales target.

"Since the new momentum given to our cooperation with MFM and Astra, we have realized that there is only one approach to win the public's acceptance of Peugeot cars," Mady said.

"This approach is perfect for the product and respects the customer. These are the two basic premises that form the core of our marketing strategy in ASEAN countries," he said.

This approach is already proving fruitful in Indonesia with MFM expecting to sell more than 2,000 cars next year.

"From 750 cars sold in 1995 in Indonesia we will certainly break the 1,400 mark this year. With the new 406 model coming up, prospects for the coming year are very positive," Mady said.

In recognition of the potential of Indonesia as being a cornerstone for the success of the French marque in the region, the country was chosen to be the first to launch completely knocked down vehicles outside of Europe.

Mady said Peugeot also demonstrated its commitment to the country by getting new vehicles to Indonesia in a very short space of time.

"We successfully launched the 306 in January this year and now only 11 months after, we are proposing the 406," he said.

This launch happens only one year after the initial launch of the car in Europe.

To further improve its performance in the region, Mady said, Peugeot had also recently established a dealer with a new partner in the lucrative Singapore market and was working on improving its relationships with its assembly partners in Thailand, Malaysia and Vietnam.