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2. Car sales recorded at 158,655 units in first half of 2002. (Industry).

Commercial cars still dominate auto market in the country while sales of sedans have tended to decline. In 20001, sales of commercial cars rose 4% to 264,334 units from 254,073 units in 2000 and sales of sedan cars in 2001 dropped to 35,226 units from 46,890 units in the year before. Altogether car sales in 2001 dropped to 299,560 units from 300,964 units in 2000.

In the first six months of 2002, sales of commercial cars totaled 145,352 units and those of sedan cars totaled 13,303 units. Automotive observers said the decline in sedan sales in 2001 followed a decrease in the number of new models launched that year. Sales of sedan car are predicted to rise again in the second half of 2002 to follow the launching of new brands assembled domestically or imported in CBU form.

The launching of the automotive deregulation measure in 1999 resulted in an increase in the number of I types of car imported in CBU form such as KIA Carnival from South Korea categorized as commercial vehicle. In 2000 demand for KIA Carnival rose that buyers had to place order and wait for delivery. That year PT KIA Motor Indonesia as the sole agent for KIA Motor cars received orders for 1,800 units and 60% of them were for Carnival.

Demand for Hyundai Trajet, with model similar to Carnival, was also strong. Opel and Chevrolet also introduced cars of multipurpose vehicle (MPV) and Honda Prospect Motor came with Stream with a futuristic appearance after earlier launching Honda CRV. Until now, car sales in the country are dominated by non sedan cars such as van, s minibus, jeep, sport utility vehicle (SUV), MPV, pick up, bus and truck. Non sedan cars dominating sales are seven seater. Around 88.5% of 2001's sales of 299,560 units were non sedan cars.

In the first six months of this year, there were at least 13 types of sedan cars launched by sole agents (ATPM) in the country. They were Toyota New Camry 3.0V and 2.4G, Toyota Corolla Altis, Ford Lynx Ghia 1.8, Nisaan Sentra, Honda Civic/Accord, Subaru Impressa, Mitsubishi Lancer and KIA Spectra Wing. Luxurious sedan cars competing for a share of the small market size include Jaguar, Roll Royce, BMW 7 Li, Mercedes Benz SL500, Ferari, Maserati, Chrysler, Bentley, Lamborghini, Porsche and SAAB. The last two branch entered the domestic market through imports by sole agent Eutokars Chrisdeco Utama.

Altogether there are 22 brands and 130 types of cars tightly competing on the domestic market. In the first six months of this year Toyota remained more dominant with sales 43,652 or 28% of the market size. Mitsubishi came second with sales totaling 38,144 units (24%), followed by Suzuki 31,038 units, Isuzu 14,140 units and Daihatsu 10,142 units. The five Japanese brands dominate 87% of the market. The remaining 13% of the market was split between Honda, Peugeot, Hyundai, KIA, Ford, Opel and Chevrolet, Subaru, Nissan and Renault.

Astra Group leads with a market share of 44%.

Astra Group which represent a number of brands has continued to lead in the market. Its primadonna is Toyota Kijang. In the January-June period, Astra Group which agent for Toyota, Isuzu, Daihatsu, Nissan Diesel, Peugeot and BMW sold 70,208 units of car or 44% of the market size of 158,655 units in the first half of this year. During that period Astra launched new products including Toyota New Camry, Toyota Corolla Altis, BME Seri 7, Peugeot 307, Isuzu Panther Touring and daihatsu Ceria.

The Krama Yudha Group which relies only on Mitsubishi came second with a market share of 24%. Its latest product is Mitsubishi Kuda Grandia which comes as the strongest rival for Toyota Kijang and Isuzu Panther.

Another strong competitor of Astra Group is Indomobil Group with a market share of 22% or 34,909 in the first six months of this year. Indomobil Group is agent for Suzuki, Hino, Mazada, Nissan, Ssyangyong, VW Carravele and Audi with Suzuki as its main brands. Hyundai, KIA and Honda recorded sales 3,902 units, 2,590 units and 4,912 units respectively coming with brands Hyundai Trajet, KIA Sedona and Honda Accord Limited.

Task force of Inko II to resume restructuring of TPN

The government has set up Task Force of Indonesia-Korea (INKO) charged with resuming restructuring of PT Timor Putra Nasional (TPN) and PT KIA Timor Motors (KTM). The plan to restructure the two companies has been hampered so far. According to the director general of ILMEA, the Task Force of INKO-II, which was established in June 2002 is expected to complete its duty in mid August 2002.

The Task Force of INKO-II will resume the job not yet finished by the Task Force INKO-I to restructure TPN and KTM. The setting up of the Task Force is a result of an agreement between the government and Korean investor particularly KIA Motors as the shareholder of KTM. Restructuring of TPN and KTM is getting urgent as the assembling facilities already built but not finished by the companies have long been left idle and are feared to get damaged by rust.

The problems surrounding TPN and KTM are complex as they are not only tied with debt to the Indonesian Bank Restructuring Agency but also tax to the Taxation Directorate General. The Taxation Directorate General said TPN has an arrears of Rp 1.87 trillion in import duty, Rp 1.341 trillion in luxury sales tax and Rp 257 billion in value added tax.

TPN rejected the tax arrears and has brought the case to the Supreme Court. The company said the claim by the taxation directorate general is not in line with the taxation law as the import duty and luxury sales tax exemption was enjoyed by consumers.

The government plans to sell its stake of 16.2% in TPN and 25.7% in KTM. Based on a decision of the Financial Sector Policy Committee (KKSK) on Nov. 10, 2000, the government through IBRA is in control of 61.34% of TPN and Tommy held the remaining 38.66%. In KTM, the government is a 76.16% shareholders and KIA Motor Corp. a 22.64% owner and PT Inauda holds a 0.5% stake. The share composition is a formation aider the equity of TPN and a debt of US$ 32.5 million were transferred to IBRA. The debt of TPN restructured totaled US$ 466.6 million including US$ 354.8 million in principal and US$ 111.7 million in interest.

Timor which was a leader in sedan market in 1999, recorded a decline in sales to only 221 units in the first half this year. The decline followed the cancellation of tax facility it enjoyed before.
Car sales in Indonesia, 1997-2002 *)


 Year Commercial Passanger/ Total
 cars sedan cars

1997 313,476 73,215 386,691
1998 46,380 11,941 58,321
1999 82,802 11,012 93,814
2000 254,073 46,891 300,964
2001 264,334 35,226 299,560
2002 *) 145,352 13,303 158,655

*) January-June

Source: Gaikindo/Data Consult
Sales of commercial and sedan cars by brands, January-June 2002


Brand Commercial Sedan Total

Astra Group 70,208
Toyota 37,991 5,661 43,652
Nissan Diesel 589 -- 589
Daihatsu 10,412 -- 10,142
Isuzu 14,140 -- 14,140
Peugeot 775 160 935
BMW 33 717 750

Krama Yudha Group 38,144
Mitsubishi 37,654 490 38,144

Indomobil Group 34,909
Suzuki 29,239 1,799 31,038
Hino 1,536 -- 1,536
Nissan 1,726 41 1,767
Renault 89 -- 89
Ssangyong 64 3 67
Mazda 141 -- 141
VW Carravele 33 -- 33
Audi 17 86 103
Volvo 14 121 135

Imora Group
Honda 3,449 1,463 4,912

Jaguar -- 52 52
Opel 868 -- 868
Land Rover 23 -- 23
Daewoo 80 7 87
Hyundai 2,665 1,237 3,902
Mercedes-Benz 528 1,093 1,621
AMC Jeep 26 -- 26
Chevrolet 339 -- 339
Perkasa 87 -- 87
KIA 2,483 107 2,590
Timor -- 221 221

Total 145,352 13,303 158,655

Source: Gaikindo/Data Consult
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Comment:2. Car sales recorded at 158,655 units in first half of 2002. (Industry).
Publication:Indonesian Commercial Newsletter
Article Type:Statistical Data Included
Geographic Code:9INDO
Date:Aug 13, 2002
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