VW passenger cars reenter RI market

VW passenger cars reenter RI market

JAKARTA (JP) : PT Car and Cars Indonesia (CCI) launched on
Friday three new Volkswagen (VW) passenger car models in a move
to reenter the Indonesian car market.

CCI president Wenda Wonoseputro told the Jakarta Post on
Friday that after being absent for about 20 years, VW had
returned to Indonesia to satisfy the demand from car enthusiasts.

The three new VW car passenger models include the 1.6 and 1.7
liter Golf, 1.8 and 2.8 Passat and the new 2.0 Beetle.

CCI, which is a sister company of Singapore-based Car and Cars
Singapore, would act as marketing, spareparts supplier as well as
providing after-sale service for VW cars in Indonesia.

Speaking on the sidelines of the launching ceremony, Wenda
expressed optimism that the local market would respond well to
the VW cars.

"Now is the right time to start investing as the country's
economic and political condition is starting to improve," Wenda
said.

"Although we only have four months before the year ends, we
are optimistic that we will be able to sell 150 VW cars in which
about 60 percent will be related to the sale of the Golf model,"
she said.

She added that the company expected to sell more than 600 cars
the following year.

The newly launched VW passenger cars would be aimed at the
upper end of the market, Wenda said.

"The Golf and Passat models will compete with luxury cars such
as the Audi A3, Mercedes Benz, BMW series 3 and Volvo S40, while
the new VW Beetle so far has no competitor in this country," she
said.

She said that the 1.6 and 1.7 Golf models will be sold
respectively at Rp 265 million (about US$30,000) and Rp 290
million, the Passat 1.8 and 2.8 at Rp 450 million and Rp 535
million, while the new VW Beetle will be priced at Rp 405
million.

Wenda said that CCI would provide a year's guarantee and an
exclusive after-sales service to its customers.

She added that CCI also planned to introduce VW passenger cars
to the Multi Purpose Vehicle (MPV) and Sport's Utility Vehicle
(SUV) in 2003.

She said that CCI has so far invested $2.5 million in the
country with the opening of a new representative office as well
as outlets, adding that the company expected to open new outlets
in Bandung and Surabaya next year.

The Association of Indonesian Automotive Industries (Gaikindo)
predicted earlier that domestic car sales in 2001 would decline
to 280,000 units from 300,000 last year.(11)