Small rise predicted in sales of luxury cars
Sandy Darmosumarto, The Jakarta Post, Jakarta
European luxury car makers have set conservative sales targets in the country for 2004 due to expectation of political and social upheavals related to the general elections.
Many manufacturers predict that high-income consumers will postpone investment in luxury passenger cars until after the elections.
Deputy director of marketing planning and communications with PT DaimlerChrysler Distribution Indonesia Yuniadi Hartono told The Jakarta Post over the weekend, "the new election process will take a longer period to complete. People are afraid to drive luxury cars for security reasons."
"Mercedes-Benz's sales target for the current year is 2000 vehicles. In 2003, the company sold slightly more than 2000 cars," he added.
Some are optimistic of achieving sales growth despite possible falling consumer confidence due to the elections.
PT Garuda Mataram Motor, the distributor of Audi cars, believes its customers, which are from the middle to upper segments of the market, "make purchasing decisions largely based on individual needs as opposed to the political situation".
"Audi sales in 2004 may reach around 200 units. The brand sold around 155 cars last year. We aim to increase the contribution of the A3 and A4 models to the firm's overall sales by 10 percent. Both models accounted for 60 percent of total sales last year," head of public relations of Garuda Mataram Wanny Bhakti said.
Head of public relations with PT BMW Indonesia Helena Abidin told the Post that growth in the market segment for premium cars would likely be flat.
She predicted that a total of 5,000 units would be sold this year. Sales of premium cars in the last three years have been within the range of 4,000 to 5,000 units.
Volvo, on the other hand, aims to increase sales to 500 units this year from around 350 last year.
The brand hopes to use the sporty S60 model to reach the younger generation within the market segment. Additionally, it aims to expand its market share through the popular XC90.
President director of PT Indomobil Sukses Internasional Gunadi Sindhuwinata told the Post, "the low market share of Volvo is due to the brand's conservative automobile designs, which cater to older executives looking for exclusivity."
Indomobil has a 100 percent stake in both the Audi and Volvo brands.
Tryfena Sri Rahayoe, marketing communications specialist with Jaguar's distributor, PT Grandauto Dinamika, said that Jaguar expected sales figures in 2004 would be broadly similar to last year's 200 units.
According to data from the Association of Indonesian Automotive Manufacturers (GAIKINDO), as of November last year, Mercedes-Benz led car sales in the premium market with 1,864 units followed by BMW with 1,551. Volvo was third with 251 units, while Jaguar held the penultimate spot with 184. Audi wrapped up the list with 140 cars sold.