PT Toyota-Astra Motor launches new Corolla

JAKARTA (JP): PT Toyota-Astra Motor is shrugging off the worst ever recession in the history of the country's automotive industry and launching the latest generation of its Toyota Corolla tomorrow.

Despite nationwide vehicle sales collapsing by more than 80 percent since last July, Toyota bosses say the launch is part of the company's long-term strategy for the country's small sedan market.

"The whole industry is facing great challenges at the moment," said Toyota-Astra Motor president director Mikio Nomura, "But however difficult the situation, we cannot give up. We have to grow and to grow means to come up with something new."

Preparations to launch the new model began well before the economic crisis began to paralyze the automotive sector, he said.

"I do not think the (current) situation will last long," he said. "We have rainy days and sunny days," and added that he hoped the sunny days would return by the end of the year.

The new Corolla, with a 1,800cc engine compared to the previous model's 1,600cc, comes in three models; the Xli five- speed manual, SE-G four-speed automatic and SE-G five-speed manual.

Antilock brakes and driver and front passenger air bags are two of the new features that Toyota gives the new Corolla a distinct advantage over its competitors, which include the Honda Civic, Mitsubishi New Lancer and Peugeot 306.

Off-the-road launch prices are Rp 125 million (US$14,700) for the Xli, Rp 140 million for the manual SE-G and Rp 150 million for the SE-G automatic.

"These prices have been set using an exchange rate of 6,000 to the U.S. dollar," explained Toyota-Astra Motor general manager Noertjahjo D. "We will keep these prices for the first three months or until we sell 500 vehicles."

Any price increases would be determined by market conditions, particularly the value of the rupiah, he added.

The sales target is 500 cars for the first three months and 150 per month thereafter. Company marketing director Nobuharu Tabata said that even though the sales target was "not very brave", he was hoping to increase the Corolla's share of the small sedan market to more than 30 percent.

Noertjahjo defended the high price of the company's spare parts. "Between 80 percent and 90 percent are imported and we insist that all the official dealers and repair shops sell only our parts to ensure quality standards are maintained." (jea)