Thu, 02 Sep 2004

Sales likely to be boosted at Jakarta Motor Show

Novan Iman Santosa and Primastuti Handayani, The Jakarta Post, Jakarta

With less than three weeks to go before the second phase of the presidential election on Sept. 20, the automotive industry and prospective buyers will likely forget for a while the hustle and bustle of the political parties.

From Sept. 4 to Sept. 14, Jakartans will have a chance to enjoy numerous automotive products being displayed at the second Jakarta Motor(cycle) Show at the 35,000-square-meter hall at the Jakarta Convention Center in the Bung Karno Sports Complex, Senayan, Central Jakarta.

The events -- featuring the latest innovations for passenger cars and motorcycles -- will be opened to the press and VIP guests on Friday.

The most awaited vehicle will likely be the new Toyota Kijang Innova. Even before its official release, around 200 customers have ordered one.

Other top attractions will include the newly launched Audi A6, the Mercedes-Benz SLK and the VW Touareg in the premium market segment. There will also be the Honda New Odyssey and Renault Megane Grandtour in the Multi-Purpose Vehicle (MPV) class and Ford Escape 2.3 and Hyundai Tucson in the SUV class.

Many car manufacturers have agreed to use the motor show as a tool to boost sales.

Susilo Darmawan, CEO of PT Garuda Mataram Motor, the authorized dealership for Audi, said such motor shows would have a big impact for some brands that are relatively unknown in Indonesia.

"The show will bring brand awareness to the visiting customers and they will get the chance to see the latest products," he said, adding that hopefully the show could boost the sales of the A6. Audi hopes to sell at least 30 units over the next four months.

Nicholas Soesanto, operations director of Mercedes-Benz dealer PT Cakrawala Automotif Rabhasa, said the show was necessary for a newcomer such as his dealership. "It is one way for us to get closer to our prospective customers."

The dealer will display its SLK and SL350 at the show in addition to regular Mercedes-Benz products such as the C class and E class.

PT General Motors Indonesia (GMI) will also have a display car in addition to their featured models.

"We will display the Chevrolet Lumina sedan powered by a V6, 3.8-liter engine, although there is no intention to market the sedan here soon," PT GMI president director Harold Koh said.

"It is part of our effort to build brand awareness in which we would like to remind Indonesians that Chevrolet is not all about trucks of pickups. We also have sedans."

A similar approach was also taken by PT Honda Prospect Motor (HPM).

"The Honda CRV special edition is more luxurious with more features such as fog lamps. Inside, we put a car theater system with a high-end TV set and audio system as well as leather seats," said PT HPM's sales and marketing general manager Jonfis Fandy.

Spokeswoman for Korean car manufacturer PT KIA Mobil Indonesia, Yanti Yulianto, said the company would focus on improving sales and brand image. "We will have the new KIA Picanto as our tool to help boost sales. Most of the cars on display are those sold here."

"Among them are the new, completely knock-down (CKD) Carens II multi purpose vehicle (MPV) and the new Pregio van," she said.

Since the auto show is supposed to also focus on motorcycles, seven producers -- Honda, Kanzen, Kawasaki, Kymco, Piaggio, Suzuki and Yamaha -- will also feature their latest products.

"In total, there will be over 100 companies taking part in the show, including auto-related companies such as those sell car audio equipment and lubricants," said Events organizer Andy Wismarsyah of Dyandra Promosindo.

The organizers expect to lure more than 200,000 visitors and a total sales of more than Rp 600 billion (US$65.22 million) for all products.

"We hope the motor show will help reach the total annual sales target of more than 400,000 units this year," Andy said.

The Association of Indonesian Automotive Manufacturers (Gaikindo) data shows that 354,311 vehicles were sold last year, an 11.5 percent increase compared to 2002. In the first half of 2004, some 226,155 vehicles were sold.

While the Association of Indonesian Motorcycles Manufacturers (AISI) expects a total sales of more than 3.4 million units this year compared to some 2.8 million motorcycles last year.