INDONESIA AS NEW EMERGING MARKET

Tuesday, March 07, 2006

INDONESIAN AUTOMOTIVE MARKET PROFILE

The “undisputed” market leader in the Indonesian car market (for 2003) is TOYOTA with 41.5% market share, followed by MITSUBISHI with 23.6% and SUZUKI with 21.5% market share respectively.

The major car assemblers are:
- ASTRA Group (Toyota, Daihatsu, Isuzu, Peugeot, BMW)
- KRAMA YUDHA Group (Mitsubishi, Fuso)
- INDOMOBIL SUZUKI Group (Suzuki, Nissan, Mazda, Hino, Audi, Volvo, VW)
- IMORA Group (Honda)
- HYUNDAI MOTOR INDONESIA (Hyundai)
- KIA MOBIL INDONESIA (Kia)
- GENERAL MOTORS INDONESIA (Chevrolet)
- FORD MOTOR INDONESIA (Ford)
- DAIMLER CHRYSLER INDONESIA (Mercedes Benz, Chrysler)

Multi Purpose Vehicles (MPV) have gained more and more popularity among Indonesian car users and currently, sales of MPV cars account for approximately 50% of the total car sales in the country. The latest popular models are Avanza and Xenia, an MPV model jointly developed by Toyota and Daihatsu and sold at a price range of between Rp. 67 million to Rp. 100 million per unit. Suzuki also has officially launched the company’s own MPV model named Every Plus to compete with Toyota Avanza and Daihatsu Xenia.

89% market share is contributed by the sales of commercial vehicles against 11% of sedan or passenger cars. Although sedan/passenger car sales continue to be much smaller as compared to the commercial car sales, the growth rate is bigger than that of commercial car sales growth. Significant contribution is registered by the sales of new sedan models from Toyota, Honda and Suzuki and currently, 20 sedan brands are competing in the market.
Imported cars in CBU-form have also registered a significant increase; during the first three months of 2004, 7.500 units of imported cars were sold as compared to only 1.400 units during the same period of 2003. The market share of imported cars is pretty small and despite sales increase and significant growth rate expected for 2004, the market share would not exceed 8% in total. The industry is optimistic that the total car sales for 2004 is projected to hit the 400.000 mark and this figure would exceed the previous sales figure peak of 387.000 units sold during 1997. Toyota, the market leader, is expected to launch its new generation of its most popular KIJANG van model in September 2004, which should significantly increase the company’s car sales for the remaining period of 2004.

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