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!