Teasing the market

JAKARTA (JP): The automotive industry, much like the electronics industry, thrives on its ability to persuade consumers to purchase new products despite having older versions that run perfectly well.

Dealers seem to have a way of convincing people that even if their car is still comfortable, they need a new make which boasts more superior features.

A good example of the nature of the industry in relation to this pertains to the owners of the Suzuki Escudo and Vitara.

Indomobil, an agent for the four-wheeled Suzuki, is banking on the possibility that owners of the jeep-like vehicles have had enough of driving them after four or five years.

It is now persuading them to replace their cars with the latest Escudo 2.0.

These owners represent a good market as, other than being short of money, they have no reason not to buy a Escudo 2.0.

This is because technically, the earlier version of Escudo, which was made five years ago, is now past its used period.

Besides, those who received the car through a perk or company benefit would be ready for a new car.

The market of the new Escudo 2.0, however, has actually expanded by the marketing activity of rivals, such as the Honda CR-V. The distributor of the latter had for some time been engaged in a massive promotion campaign of the product, but recently disappointed customers by imposing a waiting period even after they had put down deposits.

Customers' disappointment might have benefited the dealers of the Escudo, which is more or less in the same class as the Honda CR-V, as it meant that it would now have a ready market to target.

This is why the dealer has decided to sell the Escudo without customers going through a waiting period.

We have yet to see the outcome of the current "war" between the Escudo and Honda CR-V, which both offer some common features.

First, they are both multipurpose vehicles (MPVs) or family wagons, a trend that was first started in Indonesia by the Toyota Kijang.

Second, the two cars have steel frames to protect passengers from strong impact. This is called double impact protection.

The Opel Blazer also boasts this feature.

Escudo, however, is considered a "real jeep" because it uses a jeep chassis while the Honda CR-V does not. The two cars, however, are reportedly fit and comfortable for use both off-road and on paved city streets.

Which one seems to have the greater chance at winning the contest?

In market competition, a product that spurs strong customer loyalty usually prevails.

This is why we hear about people collecting Mercedes Benzs, BMWs, Opels or VW Beetles.

If customer loyalty is the benchmark with which we are to judge the contest between the Escudo and Honda CR-V, we would see that the market share of the two cars has not changed much from what it was several years ago.

But not all customers here have a strong loyalty toward certain brands.

Another factor to consider is that the automotive market in Indonesia has for the past 18 years been shifting from vans or minibuses to the MPV.

What remains unclear is whether the shift has been caused by a changing preference of the customers or because the car manufacturers have been flooding the market with the vehicles.

The new frenzy for MPV cars might have been started with the entrance of the KIA Carnival into the local market.

As many as 6,000 Carnivals were sold annually while sales of the Caren, also from the same manufacturer, reached 4,000 cars a year.

This achievement was enough to boost the manufacturer's confidence to project a sales growth of 30 percent from last year's figure.

In addition, MPVs from other companies, such as the Hyundai Trajet, Peugeot 806, Honda Odyssey, Toyota Picnic, Chevrolet, Zafira, Volkswagen, BMW and Mercedes Benz have now entered the market here.

How long will this trend last? That is a difficult question to answer because most Indonesians prefer to have cars that can transport a number of people at the same time -- something that is more easily done by an MPV than a sedan.

This explains why the Kijang has remained a favorite for over 20 years. Earlier, minibuses were the favorite though they were not as comfortable to ride in as the Kijang.

Paulus B. Suranto, however, has detected a new trend in the offing. He said the sedan, or mini cars under 1500 cc, have started to penetrate the market and found enthusiastic followers.

Less than three years ago, only a small number of consumers were interested in the mini. "Producers should really respond to this new interest," he said.

Car of the future

People-carrying vehicles appear set to remain a favorite, but with additional sophistication, such as computerized components, including the global positioning system (GPS).

One of the most successful features has been the replacement of the carburetor with an injection ignition system.

It is believed that the installation of electronic devices will grow with time, though, of course, questions remain over the usefulness of the gadgets.

The attempt to install a TV in the car, for instance, was considered a flop not only because the sets were of poor quality but they also had poor reception as the antennas usually did not function well unless they were inert.

All these ideas were developed to increase the comfort of passengers and drivers. One tire manufacturer, for instance, has reportedly been developing a mechanism to gauge a decline in air pressure in tires even when the vehicle is in high speed.

The gadget sends signals to the dashboard panel if the tires need to be pumped.

This would be an important innovation as a comfortable ride depends also on the tires' air pressure. Presently, only experienced drivers can tell the difference in air pressure in tires without the assistance of a tire gage.

Another major invention in the automotive technology is the installment of the Internet and telecommunications facilities in a car, enabling motorists to keep abreast of the latest information development through the global positioning system.

A driver would, for instance, be able to locate the nearest gas station or restaurant with the automatic vehicle location feature.

This device would even help drivers find areas with less traffic. And more importantly, if the car were ever to go missing, the owner would be able to track it down with the help of a satellite.

Of foremost importance, however, is the fact that consumers want to feel that they are driving rather than being driven by an automatic vehicle.

This means that even though technology will some day enable a car to move without a steering wheel, most people will still want one.

Driving for them always means sitting behind the steering wheel with their two feet controlling the gas and brake pedals.

Those three functions will need to be maintained, regardless how sophisticated the automotive technology will become.

But we look forward to the birth of a family car equipped with a computer and the automatic vehicle location using the global positioning system.