Toyota introduces newest series of popular Kijang van

JAKARTA (JP): Carmaker PT Toyota Astra Motor launched its newest model of the popular Kijang multipurpose van on Thursday.

Company marketing director Alam Wiyono said Astra expected to continue its leading position in the market segment of commercial vehicles with the launching of the vehicle.

"Our sales expectation would be around 3,900 to 4,000 units per month," Alam said during a news briefing.

The new model features electric fuel injection, which promises better drive performance and fuel consumption.

It offers small changes in its exterior design from previous models, covering improvements in its headlights and enlarged rear window.

Alam said the van would come in its usual range of models, in long and short chassis, with prices ranging from Rp 68.7 million (US$9,160) for the pickup model to Rp 147.9 million for the Kijang Krista Diesel version.

"With the entrance of our new model here, we will discontinue the production of the most recent Kijang model," Alam said.

The company, part of the well diversified PT Astra International, sold 22,943 units of the recent model last year; since Kijang's introduction in 1977, it has sold over 700,000 units, making it the nation's most popular car.

Toyota Astra estimated this year's export sales to reach 30,000, a slight improvement from last year's 28,700.

It exports its products -- cars and spare parts -- to Southeast Asian countries, Japan, South Africa and France, where the company sells Toyota spare parts.

Local component content of the car reaches about 47 percent, consisting largely of machine parts and interior accessories.

Commenting on prospects for the car industry, Alam expressed confidence that total car sales would reach 200,000 units this year, compared to 94,000 last year.

He predicted the country's 10 major car producers and distributors would continue to control 70 percent to 80 percent of the market. Japanese cars are also likely to continue to dominate the market with some 90 percent.

Economic recovery, better security and the entrance of new investment would boost car demand this year, Alam said.

Among the main concerns of the car industry, he added, would be fluctuations in the value of the rupiah to the U.S. dollar and the country's security situation.

He further estimated that the commercial car market segment would continue to dominate this year's car sales by about 80 percent.

Separately, sales director of PT General Motor Indonesia (GM Indonesia) David D. Purcell expressed his optimism that the market share for commercial vehicles would continue to range from 80 percent to 85 percent.

"It has been stable for the last five years, I don't predict it would swing more than 5 percent to 10 percent," Purcell said during a media conference to discuss the 1999 performance of GM Indonesia, which sells the Opel Blazer and Montera line.

Within the commercial vehicle market segment, Purcell predicted growing demand for sports utility vehicles (SUV), saying their market share could double if backed by enough supply.

He said demand for SUVs in Indonesia was driven by consumers' preference for practicality.

SUVs have a wider range of applications, he said, adding it was a decisive factor for customers in buying a new car.

"Some road conditions in Indonesia are not the best, and in the unfortunate event of an accidents, SUVs are big and strong so passengers are more protected," he said.

Purcell said that investment in the sectors of mining, plantations and forestry would also create demand for SUVs.

GM Indonesia targeted sales of its Blazer and its new Montera model to reach from 4,500 to 5,000 units this year, whereas last year it sold 1,808 units of Opel Blazers.

Purcell said a new Opel model would probably be launched later this year, adding the firm was currently studying various GM models suitable for Indonesia. (03)