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1. Car sales peaks at 470,000 units.

Car sales hit an all time annual record of 470,000 units in 2004 or an increase of 30% from 2003's sales of 354,210 units.

PT Pantja Motor said a number of factors have contributed to increase in car sales in the country including better security, the launching of new models of cars with prices below Rp 100 million, improved purchasing power of the people and facilities offered by financing companies with low interest credits. Multifinance companies banks are more aggressive in offering credits with low down payment.

In 2005, car sales are predicted to hit 520,000 units. New models and the operation of new car makers in the country from Malaysia, Italy and India. Proton from Malaysia already bought assembling plant from Ningz Pacific from Cikarang.

Fiat from Italy, Great Wall from China, and Mahindra & Mahindra from India are among foreign car makers planning to build or acquire production facilities in the country. Mahindra & Mahindra is studying possible cooperation with PT Timor Putra Nasional (TPN) by utilizing the production facility of the Indonesian company.

General Motor Indonesia stops producing Blazer

PT General Motors Indonesia (GMI) said it will stop producing sport utility vehicle Chevrolet Blazer from its factory in Bekasi, West Java starting March, 2005. GMI President Harold Koh said Blazer, which hit the market for the first time in 1996, has reached the end of its life cycle. In automotive industry, a product has a life cycle determined by demand and competition in its segment, Koh said on Sunday. Blazer has been assembled and produced in the country in a number of variants such as LT, DOHC, Montera, LN and Chevrolet Blazer XR. Since 1996 more than 18,000 units of Blazer have been produced and sold in the country. GMI said it will maintain the assembling plant in Bekasi until further decision from the parent company.

Apart from as assembling cars, the facility owned by GMI in Pondok Ungu, Bekasi built over a 12 hectare plot of land also used as a testing place, painting place, and spare part distribution center. GMI has received the certificates of ISO-9002 and ISO-14001

The company, which wholly owned by General Motor Corp. (GMC) plans to expand its sales networks and improve its after sales services through a network of GM AutoWold, Dealers. GMI now has 37 dealers, six exhibition rooms, and five official workshops in Sumatra, Java, Kalimantan, Sulawesi, Bali and Lombok.

In addition to Blazer, GMI sells multipurpose vehicles (MPV) namely Safira and Tavera. Its sedan cars include Optra, city car Aveo and Spark.

Its parent company General Motor Corp. is aggressive in penetrating the Asian market. It teams up with DaimlerChrysler AG to develop hybrid engines, which is fuel efficient with low emission to compete with Toyota and Honda in technology. GMC and DC have established cooperation to develop and produce transmission systems.

Toyota Astra Motor offers 3-year guarantee

In order to maintain lead in market share and improve services to consumers, the country's largest producer of cars Toyota Astra Motor (TAM) has offered new system of guarantee for cars with a production code of frame No. (VIN Code) 2005. The guarantee is free service for three years or a running for 100 kilometers. The new guarantee system is in line with the Global Quality Project concerning the quality of product and has been applied for the first time to Kijang Innova as a local product with global quality. Earlier in 2004, TAM offered a guarantee of 2 years or running for 50,000 km.

A new guarantee is also provided for battery for which the guarantee is increased in period from 1 year to 2 years or from up to 20,000 km to up to 50,000 kilometers in use. With the new guarantee system, TAM applies new interval service for Toyota cars with free service for 10,000 km running or 6 months.

The guarantee is effective only if the users meet certain maintenance requirements determined by TAM. One of the requirements is that service is regular in 143 official workshops or service centers of Toyota in the country.
Table - 1
Car sales in Indonesia,
1995 -2005

 Sales
 Year (Units)

 1995 378,704
 1996 332,035
 1997 386,691
 1998 58,303
 1999 93,843
 2000 300,964
 2001 299,634
 2002 317,780
 2003 354,208
 2004*) 470,000
 2005*) 520,000

*) estimate
Source: Gaikindo

Table - 2
Sales of Chevrolet cars by types,
January - November 2004

 Volume
Model (units)

Optra 329
Zafira 336
Tavera 78
Aveo 1,711
Sark 1,139
Blazer 361
Total 3,954

Source: Gaikindo
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Title Annotation:TRADE
Comment:1. Car sales peaks at 470,000 units.(TRADE)
Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Jan 11, 2005
Words:766
Previous Article:Condition of Indonesia's motorcycle industry and prospects.
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