RI car companies told to ready for Asian mart
RI car companies told to ready for Asian mart
JAKARTA (JP): Chairman of the Association of Indonesian
Automotive Industries Herman Z. Latief has urged businesses to
gear up for 2000, when Asia's automotive market, excluding Japan,
is expected to reach six million vehicles a year.
Latief said domestic automotive companies should be able to
take advantage of, and play an important role in, this huge
market.
"In the future, the domestic automotive industry -- which
includes the components industry -- should use the Asian market
as a benchmark to develop the domestic market," Latief was quoted
by Antara as saying.
He was speaking Sunday at the closing of a nine-day automotive
exhibition.
"What's more, this prediction excludes Japan ... so there is a
big chance to really explore the Asian market," he said.
Japan's market alone would reach 12 million vehicles by 2000,
he said.
Earlier reports said that Indonesia would be the fastest-
growing car market in the world over the next five years with
new-car sales expected to grow at an annual compound rate of 18.4
percent.
Asian countries top the list of fastest growth markets with
India and China expected to make the greatest gains in terms of
volume. Both are expected to have markets of over one million
vehicles a year by 2005.
Together with the emerging markets of Asia, increasing sales
in South American and Eastern European countries are expected to
push global sales from 35.1 million vehicles last year to just
under 40 million a year by 2005.
Dwi Karsonno, the president of PT Debindomulti Adhiswasti
which organized the automotive exhibition, said it was a success.
Rp 63.07 billion (US$25.85 million) of cars, motorbikes and
automotive components were sold, he said.
Dwi was quoted by Antara as saying that the Opel Blazer sold
most, making Rp 20.68 billion for 257 cars.
Ford
Ford Motor Co. expects its sales in Asia to more than double
within the next four years to five years, Kenneth Brown, director
of Asian markets public affairs said in Singapore yesterday.
At a briefing, Brown said Ford sold 320,000 vehicles in the
Asia-Pacific (including Japan, Australia and New Zealand) in
1995.
This constituted about 2.4 percent of a total of 13.5 million
vehicles sold in the region in 1995.
"From a 2 percent player, we expect to become a 5 percent
player in the next four to five years ... most of the increase
should come from India and China," he was quoted by AFP as
saying.
Brown also dismissed recent concerns about a growing glut in
motor production capacity in Asia.
He said the glut was mostly in mature markets like Japan and
South Korea. "Outside those areas, the excess capacity is not
terribly high."
He said Thailand 900,000 could make vehicles a year against
domestic sales of 588,000 vehicles last year.
After taking into account exports, Thailand's excess capacity
could be in the region of 100,000 vehicles to 200,000 vehicles
which should be used up in a couple of years, he said.
The U.S. auto company has a US$500 million joint venture to
start a pickup truck manufacturing facility in Thailand by May
1998.
The company expects to start making trucks in Vietnam by
October 1997 and is conducting feasibility studies in the
Philippines.
It is also developing a light commercial vehicle in China with
its joint venture partner Jiangling Motors Corp. (pwn)