Timor distributor drops sales target from 4,000 to 2,500

JAKARTA (JP): PT Timor Distributor Nasional, the distributor of Timor cars has lowered its sales target from 4,000 a month to between 2,500 and 3,000 a month because of low domestic demand.

The company's new president director, Soemitro Soerachmad, said yesterday sales plunged to 980 units last month from 3,300 units.

The high sales in January, which were above the company's target, was because of the traditional buying spree before Idul Fitri, he said.

The post-Idil Fitri slump was also normal, he said.

"Thus, the fall in sales last month was not only experienced by Timor but also other automotive companies," Soemitro said.

Since October Timor Distributor had sold 11,200 of the 16,000 Sephia sedans it imported from South Korea's Kia Motors. It plans to import 45,000 sedans this year. The Sephia sedans are relabeled here as the Timor S515.

Soemitro said the company planned to sell 45,000 cars this year but was pessimistic this could be achieved in the present market.

He said Timor Distributor was targeting big buyers like state- owned companies, big private companies and government offices to lift sales.

Soemitro promised they would not be coerced into to buying Timor cars.

The Timor national car project was undertaken by President Soeharto's youngest son, Hutomo Mandala Putra, via his company PT Timor Putra Nasional.

The project has caused controversy because Hutomo was granted tax and tariff breaks to import cars from its partner Kia Motors pending the completion of Timor Putra's manufacturing plant in Indonesia.

Timor Putra and Kia started building a plant in Cikampek, West Java, earlier this year.

The project has drawn protests from Japan, the United States and the European Union. The World Trade Organization has yet to settle the dispute.

Soemitro said Timor Putra had bought the patent of Sephia cars from Kia. The agreement will be fully implemented when Timor Putra starts making the cars at its Cakampek plant next year.

Under the agreement on patent purchase Kia receives a percentage of the sales of the Timor S515 as payment for the patent.

Timor Putra is entitled to sell the cars domestically only. It needed special approval from Kia to export the cars.

Timor can freely export cars it makes which are different from Sephia sedans.

"The car is considered different from Sephia type however small the changes we make in the platform, like using different bumpers," he said.

Soemitro said Timor Putra would launch a Jeep Timor 520, and a new Timor sedan, Timor S 515i, soon.

Soemitro has replaced Soeparto Soejatmo as president director. Soeparto has been appointed chairman of Timor's research and development department. (jsk)