Toyota aims to sell more models in tough RI market

Toyota aims to sell more models in tough RI market

Imanuddin Razak, The Jakarta Post, Gold Coast, Australia

With its experience in sales and distribution, as well as
networking, car manufacturer Toyota plans to grab a larger share
of Indonesia's car market by introducing models that have sold
well in other countries. Several of these models were introduced
to Southeast Asian journalists, including The Jakarta Post's
Imanuddin Razak, during an event called The Toyota Great
Multipurpose Vehicle Adventure in Australia's Sydney and Gold
Coast in mid-March.

Tough trading conditions in the car industry, including constant
changes in automotive technology, have not deterred car
manufacturers across the globe, including Nagoya-based Toyota,
from competing in the potentially enormous, yet not fully
exploited market of Indonesia.

People may be aware of the limited presence of Toyota's Lexus
luxury sedans; recent-entrant Camry sedans; and the enormous
presence of Land Cruiser jeeps of different generations, smaller
Altis/Soluna and Vios sedans and -- most popular of all -- Kijang
vans, on Indonesian streets.

In February 2005 alone, Toyota had a 31.7 percent market share
of Indonesia's automotive industry with 13,899 vehicles sold,
compared with the same period last year when it sold 10,717 cars.

PT Toyota Astra Motor, the distribution arm for Toyota in
Indonesia, recently revealed in its monthly report that its
increase in sales this year was triggered by increasing sales of
the latest Kijang Innova vans and the smaller Avanza vans.

A continuous presence, long-term experience in sales and
distribution, as well as strong networking in Indonesia are
apparently the reason why the giant Japanese auto producer is
interested in expanding its Indonesian market.

"Many other car producers have also introduced similar car
types as we're offering to potential buyers. However, we have the
benefit of our long and continuous presence in Indonesia, as
indicated by our nationwide after-sales service and call centers
as well as dealers," Toyota Motor Asia senior vice president for
its marketing planning division, Shigeru Takayanagi, said on the
sidelines of a test-drive session at the Gold Coast Darlington
Park circuit and off-road tracks.

People may remember that the appearance of Toyota cars in
Indonesia dates back to the early 1970s, when its early Land
Cruiser jeeps hit the country's streets and roads, along with its
popular Corolla sedans.

In the late 1970s, Indonesians also witnessed the production
and sale of the first generation of Toyota Kijang vans.

European (mostly German), American (Ford and GM) and
Australian vehicles (Holden sedans and pickup trucks) could be
seen on Indonesian city streets before the arrival of Japanese
cars. However, their presence has fluctuated since that time,
while Toyota has been a constant presence in Indonesia since the
early 1970s.

With the aim of at least maintaining its approximately 30
percent share of some 510,000 units on offer in Indonesia this
year, Toyota introduced a number of its worldwide special utility
vehicles (SUVs) and multipurpose vehicles (MPVs, known within the
company as IMVs -- Innovative International Multipurpose
Vehicles) during the event in Australia.

A total of 27 4x2 and 4x4 cars were available for the session,
including the 4,000cc, V6, 24-valve Tacoma van and its bigger
brother, the 4,700cc, V8, 32-Valve Tundra, both of which are sold
in the United States only; the currently Japan-made-only Alphard
Hybrid van, whose variants can already be found on Jakarta
streets; and two Toyota landmarks, the Land Cruiser, which
appeared in its two latest variants, the V8 DOHC 4V Land Cruiser
100 and the V6 DOHC 4V Land Cruiser Prado, and the popular six-
cylinder Land Cruiser 78.

But the center of attention was the Indonesian-made Kijang
Innova, which is predicted to top Indonesia's car sales this year
and has been exported to other countries since November last
year.

Also grabbing attention were three variants of the Thai-made
Hilux minivans, which also sell well in the home country, and the
four-cylinder 16V DOHC Intercooler VN Turbo Diesel Fortuner SUV,
the latest version of which will enter the Indonesian market
later this year.

"We know that most Indonesian people favor the Kijang compared
with any other type of vehicle. But we've also been observing
slow changes in Indonesian consumers' behavior in choosing cars,"
holding company Toyota Motor Corporation managing officer Yoshio
Shirai said during a media presentation at Luna Park, Sydney.

Takayanagi concurred and added that Toyota had decided to
produce cars where the market was available and could absorb
them.

"We've been planning to assemble passenger cars in ASEAN
countries by 2010 ... we'll add an Asian nuance to those cars,"
Takayanagi said.

If the Fortuner, which has been produced in Thailand, and will
also be produced in Argentina and South Africa this year, really
enters Indonesia in July, it will have to fight to get a piece of
the SUV "cake" along with the other four brands that are already
in the SUV market -- the Nissan X-Trail, Honda CRV, Ford Escape
and Suzuki Escudo.

Will the Fortuner follow the success of the Kijang Innova?

Let's wait and see!