PT General Motors Indonesia launches second CBU model

JAKARTA (JP): PT General Motors Indonesia (GMI) launched the 1,800cc multipurpose vehicle (MPV) Chevrolet Zafira on Tuesday to cash in on Indonesia's rapidly growing market for completely built-up (CBU) cars.

Zafira, priced at Rp 207.7 million (US$25,000) off the road, is the second CBU model introduced by GMI in two weeks, having earlier launched the Chevrolet Blazer V6 with a price tag of Rp 500 million.

The car, imported from General Motor's factory in Thailand, is being touted by the agent here as an environment-friendly vehicle, with low noise and vibration, economical fuel usage, low servicing costs and lower emission.

Director of sales and after-sales marketing Kris Mayer said GMI hoped to sell 300 Zafira this year and between 1,800 and 2,000 units in 2001.

The optimism was founded on the strong interests shown on the Chevrolet Blazer model, marketing manager Paulus B. Suranto said.

Since the government lifted the ban on imports of CBU cars in June 1999, many big American and European automakers have launched their products in the Indonesian market which has traditionally been dominated by locally assembled Japanese makes.

The CBU cars not only help satisfy a growing appetite for different types of cars among the affluent Indonesians, but also fills a gap left by assemblers who cannot deliver their cars as quickly as the market demands. At present, buyers of virtually all locally assembled cars must wait for several months for delivery.

CBU cars are subject to a 45 percent import duty, a 15 percent luxury goods tax and a 10 percent sales/value-added tax.

Paulus added that almost 8,000 units of CBU cars have been sold in Indonesia since the ban was lifted and that 3,000 units more are expected to be sold by the end of the year.

The Indonesian Automotive Industry Association (Gaikindo) has estimated that sales of locally assembled cars should reach 204,000 in 2000, compared to 125,000 units in 1999. (02)