Printer Friendly

Profile of auto industry.

Backgrounds

Asia becoming automotive production center

World's major car makers such as Toyota, Mitsubishi, Suzuki, General Motor, and Ford have known no more territorial borders in expanding their operations including manufacturing operations.

For efficiency and marketing, they established production bases outside their countries of origin in a bid to control or have a larger share of the global market. Currently Asia has been chosen as a new production center. Many worlds' class auto makers have made Asian countries notably Southeast Asian countries as production centers.

Apart from Japan, which has long been a strong rival for the United States and Europe in auto industry, a number of other Asian countries such as China, South Korea and Malaysia, have taken a big step toward a global player in the auto industry.

Recently, in Detroit Auto Show 2006, Zhejiang Geely Holding co. Ltd displayed compact sedan product of Geely 7157CK, which successfully gave a shock to the world car industrialists for its excellent quality and sophistications far superior than what most people think of Chinese products so far.

CEO Geely of USA John Harmer said the company is the first Chinese car maker having a market in the United States. Earlier another Chinese car maker Cherry already had planned to enter the U.S. market through cooperation with Daimler Chrysler but implementation was postponed until 2007.

AFTA to boost ASEAN automotive industry

Automotive industry has continued to grow in ASEAN notably after the implementation of the ASEAN Free Trade Area (AFTA), under which the import duty on car products was slashed to 0%-5% in 2003.

The import duty on a car having a local content of 40% is 5% in other ASEAN member countries. ASEAN is a group of 10 Southeast Asian countries.

Malaysia delayed joining other countries in the agreement on car trade as it was still concerned with protecting its domestic industry, Proton. It joined the free trade agreement only in 2006.

The effect of the agreement is great. Japanese car makers rushed to increase investment including in Indonesia and Thailand to expand their assembling capacity to keep strong market foothold in this region. Toyota Avanza and Innova, and Daihatsu Xenia began to push aside Proton even in Malaysia its home country. The decline in Proton's market share in Malaysia, forced it to change orientation more to export market. Indonesia is its main target. It plans to build its assembling plant in Indonesia scheduled to be in operation this year.

Indonesia Becomes Production Centre

Agents of foreign principals in Indonesia now generally controlled by the principals, also have taken steps adjusting themselves to the change in policy in this region. Mitsubishi, aware that it could not do much in competition in the market of passenger/sedan cars stopped producing those types of cars in the country and decided to maintain the remaining market share with cars supplied from its assembling plant in Thailand. Mitsubishi now concentrates on maintaining its lead in the market of trucks in the country.

Indonesia has become the production center for Suzuki especially for Suzuki APV, an MPV category below 1.500 CC. Suzuki APV has also entered markets in other Asean countries. It has even been exported to various other countries in the world.

Import duty on basic material components reduced to increase competitiveness

The policy abolishing the import duty on spare parts and components of cars for exports, with a regulation of the finance minister No.79/PMK.010/2006 was protested by local producers saying it contradicts a scheme to strengthen the domestic component industry. The policy will weaken the competitiveness of local products of components, they said.

The government, therefore, issued a regulation with a decision of the finance minister No. 34/PMK.011/2007 on 3 April 2007, reducing the import duty on the basic materials of automotive components to zero. The regulation, however, is effective only for 12 months.

Structure of Auto Industry

Characteristics of auto industry in Indonesia

Auto industry in Indonesia began to expand after the operation of brand holding sole agent (ATPM) early the 1970s through decisions of the Industry Minister No. 295/1982 and No. 428/1987. ATPM was authorized to assemble, produce and distribute their products in Indonesia. ATPM have double functions as a sole sales agent and as a producer.

In the beginning the government of Indonesia hoped that ATPM would become the embryo of the country's auto manufacturing industry through transfer of technology to produce cars with high local content.

However, after 30 years the program failed to work as expected as the industry remains heavily dependent on imports for components. The prices of car in the country, therefore, remain high.

The original objective of developing auto manufacturing industry in Indonesia became unclear with the deregulation measure in 1999 allowing imports of cars in Completely Built Up (CBU) form. The existence of ATPM became irrelevant as many non ATPM companies imported cars in CBU form.

After the government itself said that the relations between ATPM and their principals are based on business principles and the involvement of the government is no longer needed, many principals finally took over the role of car manufacturing in the country leaving ATPM only as a distributors for their cars.

Toyota Motor Corp. took over control of the assembling division of PT. Toyota Astra Motor (TAM) and left TAM as a distributor for Toyota cars. In 2003, the manufacturing sector was handled by PT. Toyota Manufacturing Indonesia (TMMIN), which is 95% owned by Toyota Motor Corp.

Similarly Suzuki Motor Corporation took over the manufacturing activity of PT Indomobil Suzuki International by increasing its share to 90% from only 40% before leaving a 10% stake for Indomobil Sukses International. The distribution business is handled by PT Indomobil Niaga International.

Brand Holding Sole Agents (ATPM)

Astra and Indomobil are two largest automotive companies in the country having affiliation with a number of foreign principals. They become agents for the Indonesian market.

Astra handles the distribution of a number of Asian and European brands including Toyota, Daihatsu, Isuzu, Nissan Diesel, Peugeot and BMW.

The Indomobil Group handles the distribution of Suzuki, Volvo, Audi, Nissan, Ssangyong, Hino, Renault, VW Caravelle and Chery. Other agents are individual companies belonging to no company group.

In addition, there are a number of ATPMs serving as agents for cars of a number of brands such as PT Garuda Mataram Motor ATPM for Audi and VW Caravelle, PT Nasional Motor Company for Mazda and Hino; PT Daimler Chrysler Indonesia for Mercedes, Chrysler and Jeep, and PT Grandauto Dinamika for Bentley, Daimler, Jaguar and Roll Royce.

VW Caravelle is a product of Volkswagen, but its agent in Indonesia is PT Garuda Mataram Motor instead of PT Car & Cars Indonesia, which is the ATPM for Volkswagen in the country.

PT Garuda Mataram Motor became its agent after it was named to import VW Caravelle cars for use during the APEX Summit in the country in 1992. PT Car & Cars Indonesia is now agent only for VW passenger Car/sedan.

Cars could be divided into two main types--passenger and commercial cars. Passengers cars consist of three types--Sedan, MPV 4x2 and SUV 4x4 each with different types in engine capacity.

Commercial cars consist of three types--Bus, Pick Up/Truck and Double Cabin 4x2/4x4 each with different weight (Gross Vehicle Weight).

Production Capacity

Some of the ATPMs still function as both producers and distributors but other ATPMs have become two independent companies--manufacturing company and distributor such as in the case of PT Toyota Astra Motor, which now operates only as a distributor. Its manufacturing division has become an independent company with the name of PT Toyota Motor Manufakturing Indonesia (TMMIN) as from July, 2003. PT TMMIN is 95% owned by Toyota Motor Corporation and 5% by PT Astra Internasional.

Suzuki Motor Corporation has also increase its stake in PT Indomobil Suzuki International as the ATPM for Suzuki in Indonesia.

PT Indomobil Suzuki International now operates only as a manufacturing company as the distribution job has been handed over to PT Indomobil Niaga International as its Sole Distributor.

Some ATPMs have no assembling facility such as PT Tjahja Sakti Motor as agent for BMW cars, PT Astra France Motor as agent for Peugeot, PT Pantja Motor as agent for Isuzu cars, etc. They have their cars assembled by other assembling companies like PT Gaya Motor, which is not an ATPM or other ATPM affiliate such as in the case of Ssangyong car, which is assembled by PT Nissan Motor Indonesia--both affiliated to the Indomobil Group.

Toyota Manufacturing Indonesia (TMMIN) has the largest production capacity among car assembling companies in the country with a total capacity of 170,000 units a year.

Mitsubishi, which was once the second largest in capacity with two assembling plants--PT Krama Yudha Ratu Motors for commercial cars and PT Krama Yudha Kesuma Motors for passenger cars suffered a setback notably in the years after the crisis. In 2005, PT Krama Yudha Kesuma Motors stopped operation after a decline in sales of Mitsubishi passenger cars in the country.

Ownership

A number of ATPMs in Indonesia has launched restructuring to adjust to developments of auto industry in the country, region and in the world.

Production

Indonesia's car production from 2003 to 2005 continued to increase both passenger and commercial car production. However, in 2006, the production dropped to only 296,008 units from 500,710 units in 2005. The decline was recorded for both passenger and commercial car production.

The Astra Group, which is agent for cars of six brands remained the largest auto maker in the country, followed by the Indomobil Group, which are agents for nine brands including a new brand Chery Motor from China with ATPM PT Unicor Prima Motor.

Sales

An increase was reported from year to year in the 1999-2005 period. In 2000, sales surged to 300,965 units from only 93,813 units in 1999.

Imported cars in CBU form contributed to the 220.8% increase in sales on the domestic market in 2000 after import restriction was removed in 1999. Imports were made by general importers and ATPMs.

In 2001, there was a slight decline in sales but after that sales grew steadily until peaking at 533,917 units 2005. In 2006 sales dropped to 318,904 units as a result of drastic hikes in the oil fuel price late 2005. The fuel price hike weakened the buying power of the people.

Sales on the domestic market in 2005 and 2006 were dominated by MPV and SUV, with sales totaling 328,272 units in 2005 and 203,342 units in 2006. The market share of MPV and SUV rose because of sharper fall in the sales of other types of cars.

Effects of new types on sales

The appearance of new types of cars has its effects on sales on the domestic market, but effects are not always significant in increasing sales.

In 2004, there were a number of new models and some of them succeeded to become market leader until 2006 such as Toyota Avanza, Daihatsu Xenia, Honda Jazz, Toyota Innova and Suzuki APV.

Other new types of models, which already launched earlier appeared in 2004 such as Daihatsu New Zebra 1,5 and Daihatsu New Taruna and Mitsubishi Colt T120SS 1,5. The market in 2004, therefore was dominated by new cars of MPV category with engine capacity of less than 1,500 cc.

The year 2005 was marked with competition between Premium sedans--BMW and Mercedes Benz--which launched various types in small and medium size and highly luxurious such as Mercedes A150, C230, C280, E280 and CLS 350 and 500 types, and BMW of the 120i, 320i types to serial 7 such as 735i, 740i and 750i.

In 2006, there were fewer new types launched on the domestic market. In January, 2006 there was only Toyota Yaris in the segment of mini MPV. The reason was a decline in the purchasing power of the people following the drastic surge in oil fuel prices late 2005. In June, 2006, Toyota launched HiLux type replacing Kijang Pick Up, which is no longer produced.

In October and December in 2006, a number of models appeared with new types such as Toyota Avanza and Daihatsu Xenia in types with engines of VVTi technology and several types of Chevrolet, Nissan, Mercedes, Hino, Peugeot, etc. Noteworthy in 2006 was the appearance of Chinese product Cherry with the types of Cherry QQ compact sedan launched in the country by its agent PT Unicor Prima Motor.

Avanza and Xenia dominate sales on the domestic market

Toyota Avanza and Daihatsu Xenia, which were launched only in January, 2004, already rose to the ranks of ten largest car products in sales in the country in 2005. Avanza was the second in lead with sales at 54,893 units or 10.3% of the total sales in the country. In 2006, it even led other brands with sales at 52,260 units. The sales fell in 2006 but it rose in market share to 16.4% as the total car sales in the country that year shrank sharply from 2005.

Meanwhile, Xenia was the seventh in market share in 2005 with sales at 27,505 units, down to 23,555 units in 2006, but it rose in market share to 7.4% or the third largest that year.

Kijang, which has long dominated sales of non sedan passenger cars in the country, fell sales in 2006 to 46,565 units from 93,114 units in the previous year. The decline was a result of a change in market promotion to Kijang Innova and the replacement of Kijang Pick Up with Toyota Hi Lux.

Kijang sales in 2006 were represented more by Kijang Innova with Kijang Pickup no longer produced.

Sales in 2007 increasing

The start of 2007 was marked with the launching of new models and types such as Toyota with its All New Vios, which is a new model of Vios; Nissan Grand Livina which entered the MPV market facing strong rivals including Toyota Kijang Innova, Avanza and Daihatsu Xenia.

Meanwhile, Suzuki released a new product, SX4, which is the first model in Indonesia in the new class of Cross Over, a combination of the toughness of SUV and the convenience of sedan.

Proton, which constitutes a new player in Indonesia, launched a new model of Proton Savvy with a 1,200 cc engine and Proton Gen 2 with an engine capacity of 1,600 cc.

Daihatsu hopes to see a repeat of success through its cooperation with Toyota such as it has recorded in the launching of Xenia with a new product Daihatsu Terios in the SUV class. The product is a twin of Toyota Rush.

The appearance of new models in 2007 tightened the competition in the market marked with changing of places in the top ten in sales in the first quarter of the year.

Based on data at Gaikindo, cars sales in the first quarter of this year rose 6.4% from the same period last year--from 79,411 units to 84,519 units. The sharpest increase was recorded in March when sales surged 26% from 26,823 units to 33,905 units.

Toyota maintained the lead in sales on the domestic market though declining in sales from 34,476 units in the first three months of 2006 to 30,477 units in the same period this year. Honda also suffered a setback in sales down to 8,746 units from 8,996 units. Suzuki, however, recorded a significant increase--from 8,500 units to 11,673 units placing it second in the market share replacing Mitsubishi, which was relegated to fourth. Daihatsu surged from 7,551 units to 11,364 units placing it third rising from the fifth.

Exports

Car exports by Indonesia have continued to increase from year to year especially after the implementation of the free trade scheme of AFTA. The export market was open more widely after the deregulation of 1999 and the implementation of AFTA in 2003. Exports were dominated by Astra International and Indomobil.

Exports of cars in CBU and CKD forms from Indonesia peaked in 2005 when exports totaled 212,821 units, dominated by Toyota with exports of 78,622 units and Suzuki 11,839 units.

Toyota products were dominated by Avanza and Innova, and Suzuki products by APV.

Avanza and Innova have been exported to various countries including Saudi Arabia, Oman, Kuwait, the United Arab Emirates, Bahrain and Qatar. Suzuki APV was exported to Brunei Darussalam, Pakistan, Thailand, Singapore, the Philippines, Australia, South Africa and Middle East.

Meanwhile, exports of components fell from 447,420 pieces in 2004 to 380,371 pieces in 2005 and to 285,124 pieces in 2006.

The government sets export target for 2007 at 38,000 units or up 22.5% from 31,000 units in 2006. The increase in export is predicted following the operation of the car port in Tanjung Priok in July, 2007. The car port will facilitate exports.

Imports

The deregulation measure in 1999 resulted in the appearance of more foreign products on the domestic market imported by general importers and ATPM. The policy, however, caused problem as many importers have no maintenance facility.

The government, therefore, through the industry minister, issued a decision No.50/2000 requiring importers to register the types of car they are to import. In addition, they are required to have Vehicle Identification Number (VIN) showing the country of origin, manufacturing factory and other specifications and year of manufacturing.

In addition, in May 2001, the government issued a regulation requiring general importers to cooperate with workshop, which has certificate from the Industry Ministry to guarantee the availability of maintenance.

Imports of cars in 2006 declined compared with the previous year.

Government policy

The deregulation measure of 1999 constituted a fundamental change in the country automotive policy, allowing imports of cars in the form of CBU causing change in market competition. Competition became sharper after that year.

In line with the new policy, the government recently provided import duty facility to PT Astra Daihatsu Motor with a decision of the finance minister No: 195/KMK.10/2006 on 11 April 2006.

The decision gave import duty facility for the import of 2,400 units of cars in CBU form by PT Astra Daihatsu Motor imported from Malaysia. The import duty was 20% on CBU cars from Malaysia and 0% on cars in CKD form based on the Common Effective Preferential Tariff (CEPT).

The facility was not exclusive as the same facility was also given to PT Proton Edar Indonesia based on a decision of the finance minister No: 530/KMK.10/2005 on 11 November 2005 to import 1,300 units of CBU car.

Import duty on CBU and CKD cars

After the 1999 deregulation measure, the import duties were reduced to 25%--50% on CKD (completely knocked down) and 40%--80% on CBU (completely built up) cars depending in the engine capacity. The import duty on large buses of 24 tons or heavier is 5%.

The reduction of the import duties is also in line with the AFTA scheme, which was first implemented in 2003. Under AFTA, the import duty on cars with a local content of 40% is only 5% in all Asean member countries.

Increase in luxury sales tax cancelled

On October, 2005, the government raised the sales taxes on luxurious goods. Later, however, the government regulation PP. No. 41/2005 was cancelled on public protest especially by auto industrialists. See the following table.

Environmental issue

The emission standard of Euro 2 is a standard used to reduce waste gas emission of motor vehicles effective all over the world.

In Indonesia the Euro 2 standard is legalized in a decision of the state minister of the environment No. 141/2003 but its implementation was delayed as automotive industry was not immediately ready to implement it. However, almost all over automotive factories agreed to comply with the regulation to adopt the Euro 2 standard.

The regulation became effective on January, 2007 for new motor vehicles. Toyota Astra Motor it has started selling cars with the Euro 2 standards since 2003 such as Vios and Limo cars.

PT. Toyota Astra Motor President Johnny Darmawan said so far six types of Toyota car have met the standards and b the end of this year the number will rise to 8 types to include Innova and Dyna.

Suzuki products using the standard include Carry, Karimun, Katana and APV with Catalytic Converter (CC).

Meanwhile, PT Astra Daihatsu Motor will upgrade the model of Zebra by adopting the Electronic Fuel Injection(EFI) and addition of Catalitic Converter.

Honda cars, which are mostly imported, have been produced with the engine technology friendly with the environment. Even Jazz, CR-V, Accord and Odyssey already meet the standard of Euro 4. Stream is being tested to determine whether it needs CC as it is prepared for Euro 4.

PT Pantja Motor also said all engines of its Isuzu cars have been designed to meet the Euro 2 standards.

Marketing aspect

Characteristics of competition

In the past competition was between the same types of cars with the same functions such as among the type of Jeep 4x4, minibuses, pickup and sedan cars. The competition, therefore, was more limited and clearer between certain segments. Therefore, two types of car would be needed to serve two different functions.

Now, however, it is different as there is no longer clear segmentation. Minibus is now as convenient as sedan and the technology is almost the same. Similarly MPV cars have been used as minibus and as passenger cars. On road cars are as off road cars, which are now no less convenient such as SUV type cars.

Suzuki has even launched a new class of Cross Over car, which has the characteristics of both sedan and SUV cars.

Mini MPV a basic design used for Hatchback sedan such as Honda Jazz and Suzuki Aerio.

MPV, therefore, has big share of the market in the country as it has multi functions greater than other types of car.

Passenger/sedan cars

--Sedan market grows slowly

The competition among the types of sedan cars is tighter with the penetration of MPV and SUV and new class namely Cross Over that continues to grab the market share of sedan in the country. MPV and SUV have been designed with convenience no inferior to sedan, therefore, sedan has little to be superior over other types of car.

Meanwhile, small and medium size sedan of 1,500cc-2,000cc compete sharply in the market as sedan is relatively more expensive than mini MPV and medium size sedan is more expensive than MPV.

--City Car and Premium Car maintain foothold

City Cars have small share of the market but it has special market segment that could not be filled by other types. Being smaller, city cars are easier to maneuver in crowded cities. They are generally more fuel efficient.

Currently Suzuki Karimun still leads in market share among city cars. Daihatsu has launched its new city car product namely Daihatsu Sirion with an engine capacity of 1,300 cc produced by Malaysia . It is sold at Rp 132 million to Rp 142 million.

Premium cars also have small share of the market but they also have market segment that could not be filled by other types such as MPV and SUV. The consumers of Premium cars are people of higher class.

Among the type of Premium cars are Audi of A2 to A6 types, BMW serial 3 to 7, Honda New Accord Vti, Hyundai Azera, Mercedes of C to SLK types, Toyota Crown and Camry, and Volvo of S and XC types. The prices of premium sedan are between Rp 500 million to almost Rp 2 billion each.

Multi Purpose Vehicle (MPV)

MPVs have continued to be have the largest market share in the country that prompted Toyota Motor Corp to reduce the market share of Kijang car, which has long dominated the market of minibuses and pick ups in the country by stopping production of Kijang pick-up cars.

Toyota Motor Corp. wants to make Kijang Innova as its main product for MPV global market. MPV cars in Indonesia consists of two categories namely one with engine capacity of less than 1,500 cc and one with engine capacity of more than 1,500 cc.

--Mini MPV with cylinder capacity of less than 1,500 cc

MPV with cylinder capacity of less than 1,500 cc appeared amid tight competition in the market MPV with cylinder capacity of more than 1,500 cc which come with the luxury of all facilities of sedan class such as Antilock Brake System(ABS), Air Bags, powerful engine, etc. that send the prices soaring. Most buyers in the country, however, have the purchasing power for cars with prices below Rp 150 million such as old types of Kijang and Panther and minibuses with cylinder capacity of below 15,00 cc such as Zebra, and Carry/Futura/Colt T120SS.

Therefore, the market response was strong when Toyota Avanza and Daihatsu Xenia were launched in 2004. The two types immediately dominated the market in the country.

The market of Mini MPV before the appearance of Avanza and Xenia was dominated by MPV, which also functioned as commercial cars such as Daihatsu Zebra, Suzuki Carry/Futura and Mitsubishi Colt T120SS with price range from Rp 73 million to Rp 93 million.

After the appearance of Avanza and Xenia with price range from Rp 86 million to Rp 140 million the market saw a new attractive alternative for passenger MPV with prices not far from the old models of mini MPV.

Avanza and Xenia constitute twin products but Xenia is cheaper as it uses lower capacity engine of 1,000 cc to 1,300 cc as against Avanza with engine capacity of 1,300 cc to 1,500 cc.

--MPV with cylinder capacity of more than 1,500 CC

The prices of Toyota Innova and MPV of the same class such as Hyundai Trajet, KIA Carens, Isuzu Panther, Honda Stream, etc. range from Rp 150 million to more than Rp 300 million or much higher than the prices of Kijang, Panther and Kuda. The difference in the prices is caused by the greater facilities offered by the new models. However, the market reaction is not as enthusiastic as to the Mini MPV.

Mitsubishi L300 is an MPV designed as commercial car with price ranging from Rp 138 million to Rp 152 million, followed with Panther with market prices of Rp 165 million to Rp 207 million.

Meanwhile, PT Nissan Motor Indonesia launched its latest MPV only in April 2007 namely Grand Livina 1,500 CC and 1,800 CC, to compete against other models in the class of more than 1,500 cc. Grand Livina with competitive facility and carrying capacity is more competitive in price as it is offered only at Rp 138.5 million making it the cheapest among the type with 1,500 cc engine. Some MPV with cylinder capacity of more than 2000 cc. are sold at price not more than lower class MPV that give them certain market among MPV with luxurious facilities. Among MPV of this class include Mitsubishi Grandis, KIA Sedona, Honda Stream and Nissan Serena, Renault Megane, Peugeot 307SW and 407 SW and Subaru Outback.

Sport Utility Vehicle (SUV)

SUV was originally designed as a new generation of General purpose Vehicle or jeep with the convenience of sedan.

The SUV market expands as it maintains the market of the old type of jeep that could operate in rough areas or road of poor condition. With modern and futuristic design as sedan has, SUV no longer functions as off road vehicles but it has become urban cars with personal and dynamic characteristics. SUV has two classes namely 4x2 or Two Wheel drive and 4x4 or Four Wheel Drive.

SUV 4x2 market has expanded rapidly that more car makers have produced cars of this types.

SUV 4x4 constitutes SUV of premium class with high prices. It belongs to the class of other premium sedans like Mecedes ML 350 with price of Rp 1,150 million, Land Cruiser with price of Rp 1,475 million, VW Touareq Rp 865 million to Rp 1,555 million and BMW X series with prices of Rp 749 million to Rp 1,070 million.

Land Rover, all 4x4 model, has a number of types--Free Lander with prices up to Rp 568 million, legendary Defender with prices from Rp 404 million to Rp 687 million and SUV namely Range Rover with price of Rp 1.7 billion.

Commercial cars

--Pick Up and Double Cabin

After the production of Kijang Pick Up was stopped in 2004, the market of Pick Up cars in the country is sharper in competition marked with the appearance of new brands and types such as KIA Big Up and Isuzu D Max. Meanwhile, Mitsubishi is not to be left behind by launching L200 to be coupled with Pick Up L300, which has established strong market foothold in the country.

Similarly Toyota launched Pick Up Hilux produced in Thailand to fill the market left by Kijang Pick Up.

Meanwhile, the market of Double Cabin cars, which is a new model in the country is filled with the same brand as those producing Pick Up and new type launched by Ford Ranger the pioneer of Double Cabin in Indonesia.

Effects of car prices and purchasing power of consumers on market competition

The car market in the country has continued to be dominated by MPV and SUV. The market share of MPV and SUV rose from 61.50% in 2005 to 64.1% in 2006.

Meanwhile, the majority of consumers have the purchasing power for cars of between Rp 100 million and Rp 200 million, which are the price range for MPV and SUV.

More successful in that MPV market with that price range are Avanza, Xenia and Kijang Innova, dominating almost 50% of the market in 2006.

Generally, the car consumers in the country could be put in three different categories by purchasing power namely those with the purchasing power of Rp 100 million Rp 150 million and Rp 200 million.

Cars with a price of Rp 100 million lead in market share

In 2006, the market of cars with the prices of around Rp 100 million was dominated by Toyota Avanza, Daihatsu Xenia and Suzuki APV accounting for 27.7% of the total car sales in the country, up from 20.7% in 2005.

The increase in market share of the three brands was noteworthy as it came when almost all calls of other classes suffered a setback in 2006.

Market of cars with prices of around Rp 150 million sharp in competition

The market of cars with prices of around Rp 150 million in 205 and 2006 was dominated by Honda Jazz, which made its appearance in 2004. It went as a sole leader almost without competitor in its class. The closer rival is only Suzuki Aerio. Strong competitors came up only in 2006 after the success of Honda Jazz which chalked up sales 6% of the total car sales in the country in 2005 and 5.8% in 2006--a big market for small class of cars.

The new competitors included Suzuki Swift, which appeared in September 2005, and Toyota Yaris in January 2006. The market of cars of Rp 150 million was later entered by SUV produced by Toyota and Daihatsu in the form of Toyota Rush and Daihatsu Terios. With strong brand image competitive features, Yaris and Swift came as a strong rival in the market for Honda Jazz. In addition, Suzuki came up with SX4 which claimed as a the pioneer in Cross Over vehicle in Indonesia.

Rush and Terios repeat success of Avanza-Xenia

The competitiveness of Rush and Terios was shown in the car sales in the first three months of 2007 when Terios led over Jazz with sales of 4,006 units as against Jazz sales of 3,424 units. Rush sales came close to that of Jazz with 2,899 unit.

Market of cars with price range of Rp 150 million-Rp 200 million brisk with many players

In the market of cars with price range of Rp 150 million--Rp 200 milliona, Kijang Innova came up as the leader, followed by Panther, which has also developed strong brand image.

This class had a market share of 20% in 2006, but was full of various brands and classes such as MPV of Hyundai Trajet, Kia Carrens, Chevrolet Zafira and a number of sedan classes and SUV.

A new competitor appeared in the market of cars of Rp 150 million--Rp 200 million in price in April, 2007 namely Nissan Grand Livina, which is expected to come as a strong competitor with cheaper price.

Distribution System

There are three car distribution systems in Indonesia.

Via Sole Distributors

Cars from assembling factories or imported cars handled by ATPM are sent to sole distributor from which to main dealers, which are responsible for marketing in certain areas coordinating a number of dealers.

Among the brands using this system include Suzuki, Isuzu, BMW, Mercedes, Hino, Peugeot and Daihatsu.

Distribution through Main Dealers

Under this system, cars from assembling plants or imported cars, which are handled by ATPM are sent directly to a number of main dealers without sole distributors.

A main dealer is responsible for sales in a certain area coordinating a number of dealers. This system is used by Toyota and Honda.

Toyota has 5 main dealers. One of them is Auto 2000, which together with four other main dealers control sales of 80% of sales of Toyota cars in Java and part of Sumatra.

Distribution via official and independent dealers

Under his system, cars are distributed directly by ATPM among dealers both official and independent dealers. This system is used by Mitsubishi, KIA, Hyundai and Ford.

Mitsubishi relies the process of distribution fully to independent dealers as it has no official dealer. KIA uses both independent and official dealers.

Independent dealers

Wide 3S (sales, service and spare part) networks are controlled not only by ATPM but also by some independent dealers, which are used by a number of ATPMs. Among independent dealers are PT Sun Motor and PT Tunas Ridean Motor.

PT Sun Motor

PT Sun Motor is an official dealer of 12 brands in Indonesia namely Mitsubishi, Suzuki, Nissan, Mazda, Volvo, Hino, Chevrolet, Renault, Chrysler, Jeep, Hyundai and Toyota.

It has 53 branches in Jakarta, Bandung, Semarang, Solo, Surabaya, Denpasar, Medan and other major cities. Sun Motor is an independent dealer with sales totaling 20,002 units of cars in 2005 or 3.74% of the total number of cars sold that year in the country.

Sun Motor also has special division for Suzuki motorcycles with 37 branches in the country. In 2005, its sales of Suzuki motorcycles totaled 104,49 units.

PT Tunas Ridean Motor

The company was established in 1967 with the name of Tunas Indonesia Motor as agent and importer of Mercedes, Fiat and Holden cars. In 1980, it was renamed PT Tunas Ridean.

In 1995, PT Tunas Ridean was listed on the Jakarta Stock Exchange. In the same year, the Jardine Motor Group acquired a 25% stake in the company. Now Jardine is a 37.4% shareholder of Tunas. Tunas has 63 show rooms and 55 service centers. The Tunas Ridean group has a 4% share of car market in Indonesia, with products including Toyota, Daihatsu, BMW, Peugeot and Chevrolet.

Market share of major players of auto makers in Indonesia

Major car makers in the country include PT. Toyota Astra Motor, PT. Krama Yudha Tiga Berlian Motors, PT. Indomobil Suzuki International, PT. Astra Daihatsu Motor and PT Honda Prospect Motor. The five companies accounted for 87.3% of car market in the country in 2006, up from 86.5% in 2005.

PT Toyota Astra Motor

On July 15, 2003, Toyota Astra Motor (TAM) became PT. Toyota Motor Manufacturing Indonesia (TMMIN) taking over the job of assembling Toyota cars in the country leaving TAM as its distributor.

As a major player in the car market in Indonesia, PT TAM has after sales network with after sales service in various cities in the country consisting of 5 main dealers--Auto 2000, PT New Ratna Motor, PT Agung Auto Mall, PT Hasjrat Abadi and NV Hadji Kalla Trad. Co; and 75 dealers operating 180 sales and after sales service outlets.

The wide networks contributed considerably to the sales of Toyota cars in the past years. Last year Toyota cars had a market share of 38.8% in the country far ahead of its closest rivals Mitsubishi 14.4% and Suzuki 14%.

Kijang Innova and Avanza remain the primadonna. of Toyota in the MPV category. Meanwhile sales of Toyota Rush, which was launched in December, 2006, totaled 2,899 units in the first three months of 2007 or only slightly behind Hoda Jazz.

Toyota contributed 70.75 % to the total car sales of the Astra Group and accounted for 38.8% of car total; sales on the domestic market in 2006.

In 2005, exports of Toyota cars totaled 78,622 units including Innova and Avanza. Exports were made to Saudi Arabia, Oman, Kuwait, the United Arab Emirates, Bahrain and Qatar.

PT Krama Yudha Tiga Berlian Motor

Early 1970, PT New Marwa Motor was established as a sole distributor for Mitsubishi Indonesia in 1973, the name of the company was changed with PT Krama Yudha Tiga Berlian Motor.

For over 20 years operating in Indonesia, Mitsubishi maintains lead in the market of Pick Up and trucks with products including Colt T120SS, L 300 and Colt Diesel FE and Fuso.

In 2005, together, the three type of Mitsubishi cars namely Colt T120SS, L300 and Colt Diesel were among the ten largest in sales with total sales of 77,088 units or 14.4% of the country's total car sales that year.

In 2006, sales of the three products fell to only 32,462 units or 10,2%. Total domestic sales of Mitsubishi in 2006 was 14.7% of the total sales of all types. Mitsubishi has 140 dealers and 46 sub dealers all over the country.

PT Indomobil Suzuki International

PT Indomobil Suzuki Manufacturing was established in 1967, as a Joint Venture between PT Indomobil Utama Indonesia and Suzuki Motor Co. Ltd of Japan. In 1990, its name was changed with Indomobil Suzuki International.

In 2006, Suzuki had a market share of 14% with products including APV, Carry/Futura, Grand Vitara and SX4.

Currently PT Indomobil Suzuki International has 187 independent dealers and 15 official dealers all over the country.

Suzuki's most popular product at present is APV (Asean Project Vehicle), which belongs to the MPV 1.500 CC class launched in 2004. It is expected to gain foothold in the world market. It has been exported to various countries.

PT Astra Daihatsu Motor

The company was established through merger of a number of companies in 1992 including Daihatsu Indonesia (which was established in 1978), Daihatsu Engine Manufacture (established in 1983) and Nasional Astra Motor (established in 1987).

The company is 61.75% owned by Daihatsu Motor Corp., 6.38% by Toyota Tshuso Corp. and 31.87% by Astra International.

Its most popular product at present is Xenia, which is a type of mini MPV and Terios, a type of SUV. Its latest product is City car, Daihatsu Sirion.

Daihatsu's market share in Indonesia was 10.4% in 2006, up from 9.1% in 2005.

PT Astra Daihatsu Motor has 31 branch offices and 71 official dealers and 66 independent dealers making it one of the main players in the auto industry in the country.

PT Honda Prospect Motor (HPM)

PT Honda Prospect Motor is a Joint Venture between Honda Motor Co. Ltd and PT Prospect Motor established in 1999.

After the establishment of PT Honda Prospek Motor, PT Honda Prospect Engine and PT Istana Mobil Raya (IMORA) were immediately merged into. HPM took over the status of IMORA as Honda ATPM and made IMORA its sales agent in Jakarta.

Later HPM entered the MPV and SUV segments with products Stream and CRV. The market share of Honda expanded fast after the launching of its mini MPV namely Honda Jazz in 2004. In 2006, its market share was 9.4%.

HPM has also exported part of its production. Exports have been made to various countries including Thailand, India, the Philippines, Malaysia, Pakistan Taiwan and China. Its exports included engine parts, body parts and Honda Stream in CBU form.

HPM has 77 dealers all over Indonesia and the number is to be increased to 83 dealers to meet the competition.

New Investment

Hyundai Buses and Trucks to enter the market

Hyundai Motor Company has teamed up with the Korindo Group to build a new factory in Balaraja, Tangerang, Banten to produce Hyundai buses and trucks. The Korean giant through its subsidiary PT Korindo Heavy Industry started with an investment of US$ 25 million in the venture and in 2011, the investment is to be increased to US$ 120 million. It plans to make Indonesia as its production base in ASEAN.

Currently PT Korindo Heavy Industry has signed contract to buy 24 buses valued at Rp 1.10 billion per unit for use by Jakarta city transport PPD and Mayasari for Trans Jakarta Bus Way service. With an annual capacity to produce 1,500 units bus bodies and 10,000 units of truck chassis, the company hopes to turn out 4,000 trucks and 500 buses or a market share of 25%.

Prospects and Conclusion

* Car manufacturing industry in Indonesia as well as in other Asean countries is controlled by foreign principals with global orientation making those countries as their production base.

* ATPM has the role manly as sales agent and distributor.

* Principals have increased control over ATPMs to take over the job of manufacturing industry.

* Sales on the domestic market have tended to increase despite a setback in 2006 as a result of a drastic hikes in the prices of oil fuels late 2005 forcing consumers to postpone plan to buy new cars.

* Based on data of sales, prices, type/models and brands, sales will be dominated by cars with:

--Prices from Rp 100 million to Rp 200 million.

--Type and model of MPV.

--Strong Brand image.

* Price--It is important that the price is within the buying power of most consumers. It is, however, only one of the factors for consumer to buy a car.

* Type/model--The type or model should be up to date.

--Currently most consumers prefer cars which look modern/futuristic, luxurious and trendy.

--Another requirement is that a car should have a large carrying capacity, but convenient and fuel efficient.

MPV cars would meet the hose factors easier than other types of cars. Therefore, MPV care are higher in demand on the domestic market.

* Brand Image is a determinant factor for consumer to buy a car as strong brand image reflects strong sales, service, spare part (3S) and selling value. Therefore, maintaining strong brand image is important for producers and ATPM.

Brand image could not be created in a short time. It always takes long time to build public or consumer confidence.

* The role of the government is still needed to develop auto industry especially in creating favorable investment climate with legal certainty.

* The involvement of the government is needed to improve the quality of human resources in the auto industry because of the lack of educational facility in the automotive sector.
Table--1
ATPM by groups and brands

Name of company Brands

Astra Group:
Toyota Astra Motor, PT Toyota
Pantja Motor Isuzu
Astra Nissan Diesel Indonesia, PT Nissan Diesel
Astra Daihatsu Motor, PT Daihatsu
Astra France Motor, PT Peugeot
Tjahja Sakti Motor, PT BMW

Indomobil Group :
Indomobil Suzuki International,PT Suzuki
Central Sole Agency, PT Volvo
Garuda Mataram Motor Audi, VW Caravelle
Nissan Motor Indonesia, PT Nissan
Indobuana Auto Raya, PT Ssangyong
Hino Motor Sales Indonesia, PT Hino
Auto Euro Indonesia, PT Renault
Unicor Prima Motor,PT Chery

Krama Yudha Group
Krama Yudha Tiga Berlian Motors Mitsubishi

Imora Group
Honda Prospect Motor, PT Honda

Others
Daimler Chrysler Indonesia, PT Mercedes-Benz,
 Chrysler, Jeep
General Motors Indonesia, PT Chevrolet
Grandauto Dinamika, PT Bentley, Daimler,
 Jaguar, Roll Royce
Hyundai Indonesia Motor, PT Hyundai
KIA Mobil Indonesia, PT KIA
Ford Motor Indonesia, PT Ford
Java Motors, PT land Rover
Starauto Dinamika, PT Daewo
Car & Cars Indonesia, PT VW
Eurokars Chrisdeco Utama, PT Porche
Proton Edar Indonesia, PT Proton
TC Subaru, PT Subaru
Mazda Motor Indonesia, PT Mazda

Name of company Countries of
 Origin
Astra Group :
Toyota Astra Motor, PT Japan
Pantja Motor Japan
Astra Nissan Diesel Indonesia, PT Japan
Astra Daihatsu Motor, PT Japan
Astra France Motor, PT France
Tjahja Sakti Motor, PT Germany

Indomobil Group :
Indomobil Suzuki International,PT Japan
Central Sole Agency, PT Sweden
Garuda Mataram Motor Germany
Nissan Motor Indonesia, PT Japan
Indobuana Auto Raya, PT South Korea
Hino Motor Sales Indonesia, PT Japan
Auto Euro Indonesia, PT France
Unicor Prima Motor,PT China

Krama Yudha Group
Krama Yudha Tiga Berlian Motors Japan

Imora Group
Honda Prospect Motor, PT Japan

Others
Daimler Chrysler Indonesia, PT Germany

General Motors Indonesia, PT United States
Grandauto Dinamika, PT Britain

Hyundai Indonesia Motor, PT South Korea
KIA Mobil Indonesia, PT South Korea
Ford Motor Indonesia, PT United States
Java Motors, PT Britain
Starauto Dinamika, PT South Korea
Car & Cars Indonesia, PT Germany
Eurokars Chrisdeco Utama, PT Germany
Proton Edar Indonesia, PT Malaysia
TC Subaru, PT Japan
Mazda Motor Indonesia, PT Japan

Source: Gaikindo/Dataconsult/ICN

Table--2
Cars by categories

Categories of passenger cars

Sedan Cc [less than or equal to] 1,5 lt (G/D)
 1,5 lt < cc [less than or equal to] 3,0 lt (G)/2,5(D)
 Cc > 3,0 lt (G) /2,5 (D)

MPV 4x2 Cc < 1,5 lt (G/D)
 1,5 lt < cc [less than or equal to] 2,5 lt (G/D)
 2,5 lt < cc [less than or equal to] 3,0 lt (G)
 Cc > 3,0 lt (G) /2,5 (D)

SUV 4x4 Cc < 1,5 lt (G/D)
 1,5 lt < cc [less than or equal to] 3,0
 lt (G) /2,5 (D)
 Cc > 3,0 lt (G) /2,5 (D)

Bus GVW 5-10 ton (G/D)
 GVW 10-24 ton (G/D)
 GVW >24 ton (G/D)

Pick Up / GVW < 5 ton (G/D)
Truck GVW 5-10 ton (G/D)
 GVW 10-24 ton (G/D)
 GVW > 24 ton (G/D)

Double Cabin GVW < 5ton (G/D)
4x2 / 4x4 For all cc

Source: Gaikindo

Table--3
Car assembling companies and
production capacity

Name of assembling Year of Status
company establish
 ment

Astra Daihatsu Motor, PT 1978 PMA

Astra Nissan Diesel 1984 PMA
Indonesia, PT

Daimler Chrysler 1970 PMA
Indonesia, PT (Mercedes
Benz Indonesia, PT)

Gaya Motor, PT 1969 PMDN

General Motor Indonesia, 1993 PMA

Indomobil Suzuki 1976 PMA
International, PT

Hino Indonesia 1982 PMA
Manufacturing, PT

Honda Prospect 1976 PMA
Motor, PT

Nissan Motor Indonesia, 1995 PMA
PT

Krama Yudha Ratu 1975 PMDN
Motors,PT

National Assemblers, PT 1971 PMDN

Trijaya Union, PT 1986 PMDN

Toyota Astra Motor, PT 1971 PMA

Pantja Motor, PT 1974 PMA

Name of assembling Brand Prod. Cap.
company (units/y)

Astra Daihatsu Motor, PT Daihatsu 105,000

Astra Nissan Diesel Nissan Diesel (Truck) 6,500
Indonesia, PT

Daimler Chrysler Mercedes Benz, 8,000
Indonesia, PT (Mercedes Chrysler, Dodge,
Benz Indonesia, PT) Jeep

Gaya Motor, PT BMW, Isuzu, Peugeot, 60,000
 Daihatsu, Nissan
 Diesel

General Motor Indonesia, Chevrolet 30,400

Indomobil Suzuki Suzuki 120,000
International, PT

Hino Indonesia Hino 10,000
Manufacturing, PT

Honda Prospect Honda 42,000
Motor, PT

Nissan Motor Indonesia, Audi, VW, 12,000
PT Ssangyong, Volvo,
 Nissan

Krama Yudha Ratu Mitsubishi Colt 100,000
Motors,PT T120SS, Colt L300,
 Colt Diesl FE, Fuso

National Assemblers, PT Suzuki, Mazda, Kia 21,000

Trijaya Union, PT Mitsubishi Buses 1,440

Toyota Astra Motor, PT Toyota 170,000

Pantja Motor, PT Isuzu 51,000

Source: Gaikindo/Data Consult

Note: PMA: Foreign investment company
PMDN: Domestic investment company

Table--4
Car companies and share split before and
after restructuring (2002)

Name of companies Shareholders and share
 split before restructuring

PT.Toyota Astra Motor Toyota Motor Corp. 49%
 Astra International 51%

PT. Astra Daihatsu Daihatsu Motor Corp. 40%
Motor Nichimen Corp. 10%
 Astra Int'l 50%

PT. Indomobil Suzuki Suzuki Motor Corp 40%
 Indomobil Sukses Int'l 51%

PT. Hino Indonesia Hino Manufacturing 60%
Manufacturing Indomobil Sukses 20%
 Sumitomo Corp. 10%
PT. Tjahja Sakti Motor BMW AG 50%
 Astra International 50%

PT. Honda Prospect Honda Motor Co. Ltd 49%
Motor Honda Prospect Motor 51%

Name of companies Shareholders and share
 split after restructuring

PT.Toyota Astra Motor Toyota Motor
 Manufacturing Indonesia
 (TMMIN)
 (manufacturing)
 Toyota Motor Corp. 95%
 Astra International 5%
 Toyota Astra Motor
 (TAM)
 (distribution)
 Toyota Motor Corp. 49%
 Astra International 51%

PT. Astra Daihatsu Daihatsu Motor Corp.
Motor 61.75% Toyota Tsusho
 Corp. 6.38% Astra
 International 31.87%

PT. Indomobil Suzuki Suzuki Motor Corp. 90%
 Indomobil Sukses Int'l 10%

PT. Hino Indonesia Hino Manufacturing 90%
Manufacturing Indomobil Sukses Int'l 10%

PT. Tjahja Sakti Motor PT. Tjahja Sakti Motor
 (manufacturing)
 Astra International 100%
 PT BMW Indonesia
 (Sales / Distribution)
 BMW AG 100%

PT. Honda Prospect Honda Motor Co.Ltd 51%
Motor Honda Prospect
 Motor49%

Source: Data consult/ICN

Table--5
Production of cars in Indonesia, 2004-2006
(units)

Category Year
 2003 2004 2005 2006

Passenger cars 203,196 257,467 332,590 206,321
Commercial cars 118,848 164,638 168,120 89,667
Total 322,044 422,099 500,710 296,008

Source: Gaikindo/Data Consult/ICN

Table--6
Car sales on the domestic market, 1999 - 2006

 (units)
Year Commercial Passenger Total
 cars cars

1999 24,374 69,439 93,813
2000 72,219 228,746 300,965
2001 98,698 200,901 299,599
2002 115,997 226,068 317,748
2003 128,561 312,865 354,629
2004 170,283 312,865 483,148
2005 169,598 364,319 533,917
2006 96,517 222,387 318,904

Source: Gaikindo/Data Consult

Table--7
Sales of cars by categories, 2005 - 2006

 (units)
 Year Category of pass. cars
 Sedan MPV-SUV

 2005 35,513 328,272
 2006 17,903 203,342

 Year Category of comm. Cars Total
 Pick Up Truck

 2005 103,731 66,401 533,917
 2006 56,921 40,738 318,904

Source: Gaikindo/Dataconsult/ICN

Table--8
Launching of new types of car in Indonesia, 2004-2006

 New products
Month Year 2004 Year 2005

January Toyota Avanza Toyota Kijang
 Daihatsu Xenia Innova *
 Mazda RX 8 Honda Odyssey
 Honda New CRV

February Suzuki Every Mitsubishi Grandis
 Honda Jazz Nissan TiiDa
 Nissan Murano *

March KIA Sorento Daihatsu Taruna
 Audi A8 OXXY
 Mercedes CLS 350
 Mercedes CLS 500
 Peugeot 407

April Toyota Limo Kia Carens SE Plus
 KIA Picanto Kia Big Up
 Chevrolet Zafira

May BMW 760 Li Mercy A-150

June Toyota Camry Hyundai New Atoz
 Suzuki Carabian BMW 120i
 Honda New City BMW 320i
 BMW X3 BMW 620i
 BMW 740i

July Nissan New Cedric Toyota Fortuner
 Chevrolet Aveo Hyundai tucson
 Renault Megane Nissan X-Trail STT

August Suzuki APV Mitsubishi Maven
 Daihatsu New Zebra BMW 523
 Daihatsu New taruna BMW 750 Li
 Nissan New Serena Peugeot 407 2,9
 Chevrolet Spark
 VW New Caravelle

September Toyota Kijang Innova Suzuki Swift
 Nissan Teana Ford Focus
 Ford Ranger DC Kia Pride

October VW Touareg Mercedes C230
 Mercedes C280
 Mercedes E280
 Mercedes B170

November Mitsubishi L200 BMW M5
 Mitsubishi T120SS
 1,5
 Mercedes C240 Wgn
 Mercedes SL 350

December Nissan Murano BMW 735i
 Chevrolet Estate

 New products
Month Year 2006

January Toyota Yaris

February

March

April

May

June Toyota HiLux

July Suzuki Grand Vitara
 Hyundai Azera

August Toyota Avanza VVTi
 Daihatsu Xenia VVTi
 Chevrolet kalos
 Nissan Latio
 Mercedes R350L

September Chery QQ

October

November

December Toyota Rush
 Toyota Dyna 110,130
 Hino Dutro
 Lexus LS 460
 Peugeot 607
 Mazda 6

Source: Gaikindo

Table--9
Largest brands in sales with models in Indonesia, 2005-2006

Ranks Year 2005
 Brand/model Units %

1 Toyota Kijang 93,114 17.4

2 Toyota Avanza 54,893 10.3

3 Suzuki 47,896 9.9
 Carry / Futura

4 Mitsubishi 35,470 6.6
 Colt Diesel FE

5 Honda Jazz 32,241 6.0

6 Suzuki APV 27,882 5.2

7 Daihatsu Xenia 27,505 5.2

8 Mitsubishi 22,187 4.2
 T-120SS
9 Mitsubishi L300 19,431 3.6

10 Isuzu Panther 18,846 3.5

Subtotal 379,465 71.1
Total Domestic Sales 533,917 100

Ranks Year 2006
 Brand/model Units %

1 Toyota Avanza 52,260 16.4

2 Toyota Kijang 46,565 14.6

3 Daihatsu Xenia 23,555 7.4

4 Suzuki 23,301 7.3
 Carry/Futura

5 Mitsubishi 21,740 6.8
 Colt Diesel FE

6 Honda Jazz 18,581 5.8

7 Toyoya Dyna 13,479 4.2

8 Suzuki APV 12,283 3.9

9 Isuzu Panther 11,615 3.6

10 Mitsubishi L300 10,722 3.4

Subtotal 234.101 73.4
Total Domestic Sales 318.904 100

Source: Gaikindo

Table--10

Largest brands in sales in Q1 of 2006 and 2007

 Quarter I 2006 Quarter I 2007
Brand Volume (unit) Brand Volume (unit)

Toyota 34,476 Toyota 30,477
Mitsubishi 10,772 Suzuki 11,673
Honda 8,996 Daihatsu 11,364
Suzuki 8,500 Mitsubishi 11,041
Daihatsu 7,551 Honda 8,746
Isuzu 3,945 Isuzu 4,078
Hino 1,168 Hino 1,458
Ford 881 Nissan 1,402
Kia 743 Ford 982
Hyundai 696 Kia 709

Source: ATPM

Table--11
Exporters by ATPM and brands

ATPM/Assembler Brands

Toyota Astra Motor,PT Toyota (Kijang)
Astra Daihatsu Motor,PT Daihatsu
Pantja Motor,PT Isuzu
Indomobil Suzuki International,PT Suzuki
Honda Prospect Motor,PT Honda
Tjahja Sakti Motor, PT BMW
Krama Yudha Tiga Berlian Motor,PT Mitsubishi
Daimler Chrysler Indonesia,PT Mercedes Benz
Astra France Motor, PT Peugeot

Source: Gaikindo

Table--12
Sales of cars in CBU and CKD forms, 2004 - 2006

Year 2004 2005 2006

CBU (unit) 9,572 17,805 30,974
CKD (unit) 65,845 103,370 105,917
Components (unit) 447,420 380,371 285,124

Source Gaikindo/Data Consult-ICN

Table--13
Imports of cars in CBU, CKD forms and components,
2005 - 2006

Year 2005 2006

CBU (unit) 31,760 33,663
CKD (set) 20,630 8,610
Components (pieces) 38,580 22,080

Source: Gaikindo

Table--14
Import duties on CBU, CKD, IKD cars and components

Category Cylinder capacity Import duty

 CBU CKD
 2004 2003 2004
Passenger

Sedan CC [less than or equal to] 1,5 lt 65 35 35
 1,5lt<CC[less than or equal to] 70 40 40
 3,0lt(P)/2,5(D)
 CC= 3,0 lt (P)/ 2,5 (D) 80 50 50

MPV CC[less than or equal to] 1,5lt 45 25 25
(4x2) 1,5lt<CC=2,5lt 45 25 25
 2,5lt<CC=3,0lt(P) 45 25 25
 CC>3,0lt(P)/2,5(D) 45 25 25

SUV CC[less than or equal to] 1,5lt 45 25 25
(4x4) 1,5lt<CC=3,0lt(P)/2,5lt(D) 45 25 25
 CC>3,0lt(P)/2,5(D) 45 25 25

Commer-
cial

BUS 5Ton<GVW[less than or] 24Ton(P/D) 40 25 25
 GVW>24Ton(P/D) 5 0 5

Truck/ GVW<5Ton(P/D) 45 25 25
Pick GVW 5-24Ton (P/D) 40 25 25
Up GVW >24Ton (P/D) 10 0 5

Double GVW<5Ton(P/D) 45 25 25
Cab
4x2/4x4)

Cylinder capacity Import duty

 IKD
 2003 2004

CC [less than or equal to] 1,5 lt 15 (*1) 15 (*1)
1,5lt<CC[less than or equal to] - -
 3,0lt(P)/2,5(D)
CC= 3,0 lt (P)/ 2,5 (D) - -

CC[less than or equal to] 1,5lt 15 (*2) 15 (*2)
1,5lt<CC=2,5lt 15 (*2) 15 (*2)
2,5lt<CC=3,0lt(P) 15 (*2) 15 (*2)
CC>3,0lt(P)/2,5(D) 15 (*2) 15 (*2)

CC[less than or equal to] 1,5lt - -
1,5lt<CC=3,0lt(P)/2,5lt(D) - -
CC>3,0lt(P)/2,5(D) - -

5Ton<GVW[less than or] 24Ton(P/D) 7,5 (*3) 5 (*3)
GVW>24Ton(P/D) 5 (*3)

GVW<5Ton(P/D) 15 (*2) 15 (*2)
GVW 5-24Ton (P/D) 7,5 (*3) 5 (*3)
GVW >24Ton (P/D) - 5 (*3)

GVW<5Ton(P/D) 15 (*2) 15 (*2)

Cylinder capacity Import duty

 Components
 Assy IKD

CC [less than or equal to] 1,5 lt 15 10 (*4)
1,5lt<CC[less than or equal to] 15 -
 3,0lt(P)/2,5(D)
CC= 3,0 lt (P)/ 2,5 (D) 15 -

CC[less than or equal to] 1,5lt 15 10 (*5)
1,5lt<CC=2,5lt 15 10 (*5)
2,5lt<CC=3,0lt(P) 15 10 (*5)
CC>3,0lt(P)/2,5(D) 15 10 (*5)

CC[less than or equal to] 1,5lt 15 -
1,5lt<CC=3,0lt(P)/2,5lt(D) 15 -
CC>3,0lt(P)/2,5(D) 15 -

5Ton<GVW[less than or] 24Ton(P/D) 15 -
GVW>24Ton(P/D) 15 -

GVW<5Ton(P/D) 15 10 (*5)
GVW 5-24Ton (P/D) 15 10 (*4)
GVW >24Ton (P/D) - -

GVW<5Ton(P/D) 15 10 (*5)

Source: Gaikindo

Note: (*1) excluding engine; P = gasoline, D = diesel oil

(*2) excluding body, chassis, engine, transmission and differential
gear

(*3) excluding body, chassis and engine

(*4) only for engine

(*5) for engine, transmission, differential gear

Table--15
Luxury sales tax (PPnBM) effective after
the revocation of PP No. 41/2005

Category Engine capacity PPnBM Incr-
 2003 2005 ease
 (effec- (re-
Pass. car tive) voked)

Sedan CC[less than or equal to] 1.5 lt 30% 30% 0%
 1.5lt<CC[less than or equal 40% 50% 10%
 to] 3.0lt(P)/2.5(D)
 CC[less than or equal to] 75% 75% 0%
 3.0 lt(P)/2.5(D)

MPV CC= 1.5lt 10% 10% 0%
(4x2) 1.5lt<CC=2.5lt 20% 25% 5%
 2.5lt<CC=3.0lt(P) 40% 50% 10%
 CC>3.0lt(P)/2.5(D) 75% 75% 0%

SUV CC[less than or equal to] 1.5lt 30% 30% 0%
(4x4) 1.5lt<CC=3.0lt(P)/2.5lt(D) 40% 50% 10%
 CC>3.0lt(P)/2.5(D) 75% 75% 0%

Comm. cars

Double GVW < 5 ton(P/D) 20% 25% 5%
Cabin Double Cabin, All CC
4x2/4x4

Note :

PPnBM year 2003 based on PP No. 43/2003 (31 July 2003)

PPnBM year 2005 based on PP No. 41/2005 (25 October 2005) (cancelled)

P = Petrol (engine), D = Diesel (solar)

Table--16
Schedule of adoption of Euro 2 based on a decision of
the state minister for the environment

Type of Motor vehicle 2005 2006 2007

Four wheelers
- New types of cars with gasoline as fuel Jan. 1
- New type with fuels diesel oil and gasoline Jan. 1 Jan. 1

Two wheelers
- New types (two stroke and 4 stroke) Jan. 1
- Current product (4 stroke) July 1
- Current product (2 stroke) Jan. 1

Source: State minister for the environment

Table--17
The prices of small and medium sedans
by brands/model

Brand Model Price range per unit
 (Rupiah)

Honda New City 176,800,000-190,800,000
Honda All New City 268,000,000-330,000,000
Hyundai New Accent 120,000,000-130,000,000
Kia Pride 131,500,000-146,500,000
Toyota Vios 163,200,000-174,400,000
Toyota Altis 253,000,000-297,000,000
Proton Gen 2 130,000,000-146,000,000
Chevrolet Optra 169,000,000-192,000,000
Chevrolet Kalos 147,500,000-167,500,000
Ford Focus 242,000,000-259,000,000
Mitsubishi Lancer 222,000,000-258,000,000
Peugeot 207 199,000,000-219,000,000
Peugeot 206 175,000,000-191,000,000
Peugeot 307 289,000,000-576,000,000
Renault Grand Tour 289,000,000-299,000,000
Subaru Impreza 400,000,000-610,000,000
VW New Polo 237,000,000-252,000,000
Nissan Latio 209,000,000

Source: ATPM

Table--18
Prices of City Car by brands/model, 2007

Brands Model Price range per unit
 (Rupiah)

Chevrolet Spark 92,500,000 - 110,000,000
Hyundai Atoz 96,250,000 - 118,000,000
Kia Picanto 99,250,000 - 123,500,000
Proton Savvy 95,000,000 - 107,000,000
Suzuki Karimun 100,500,000
Chery QQ 74,900,000 - 79,600,000
Daihatsu Sirion 132,000,000 - 142,000,000

Source: ATPM

Table--19
Price of Mini MPV with cylinder capacity
of [less than or equal to] 1,500 CC by brands/model 2007

Brands Model Price range per unit
 (Rupiah)

Daihatsu Zebra 78,850,000-92,750,000
 Xenia 86,300,000-113,800,000
Toyota Avanza 106,200,000-141,300,000
 Yaris 150,000,000-176,800,000
Mitsubishi Colt T120SS 77,500,000
 Maven 112,000,000-127,000,000
Suzuki Carry/Futura 86,000,000-93,000,000
 APV 106,500,000-140,000,000
 Swift 141,000,000-163,500,000
Chevrolet Aveo 134,700,000-139,000,000
Hyundai Getz 129,000,000-132,500,000
Honda Jazz 144,000,000-164,000,000

Source: ATPM

Table--20
Prices of MPV with capacity of more than 1500 cc
by brands/model 2007

Brand Model Price range per unit
 (Rupiah)

Mitsubishi L 300 138,250,000-152,250,000
Mitsubishi Grandis 285,000,000
Isuzu Panther 165,900,000-207,750,000
Hyundai Trajet 196,500,000-215,000,000
KIA Carens II 156,950,000-169,950,000
KIA Travello 135,000,000-158,300,000
KIA Sedona 223,000,000-259,100,000
Honda Stream 212,000,000-257,000,000
Chevrolet Zafira 183,000,000-243,340,000
Chevrolet Estate 162,000,000-172,000,000
Toyota Kijang 153,550,000-239,600,000
Nissan Nissan Grand 138,500,000-203,500,000
Nissan Serena 249,500,000-291,000,000
VW Caravelle 899,000,000-949,000,000
Renault Megane 259,000,000-269,000,000
Peugeot 307 SW 349,000,000
 407 SW 477,000,000
Subaru Outback 375,000,000-450,000,000

Source: ATPM

Table--21
Prices of SUV 4x2 by brand/model 2007

 Brand Model Price range per unit
 (Rupiah)

Chevrolet New Blazer 172,000,000-205,000,000
Daihatsu Terios 122,500,000-167,500,000
Ford Escape 259,000,000-287,000,000
Ford Everest 255,000,000-320,000,000
Honda New CRV 272,000,000-298,000,000
Hyundai Tucson 228,500,000-237,000,000
Hyundai Santa Fe 385,000,000-450,000,000
KIA Sportage II 203,000,000-227,500,000
Mazda Tribute 264,500,000-324,300,000
Nissan Terrano 185,000,000-275,000,000
Nissan X-trail 238,000,000-355,000,000
Subaru Forester 310,000,000-420,000,000
Suzuki Escudo 162,000,000-245,500,000
Suzuki Katana 93,000,000
Suzuki Grand vitara 199,500,000-231,500,000
Toyota Rush 155,400,000-179,400,000
Toyota Fortuner 323,800,000-381,800,000

Source: ATPM/Data Consult /ICN

Table--22
Pick Up and Double Cabin by brands/model

Brand Model Price range
 (Rupiah)
Pick Up

Daihatsu Zebra 65,150,000-77,900,000
Ford Ranger S/Cab 126,000,000-206,500,000
Isuzu Panther 108,950,000-112,350,000
 D-Max 216,000,000
Kia Big Up 110,500,000-122,200,000
Mitsubishi T120SS 69,000,000-71,750,000
 L300 111,250,000-111,750,000
Suzuki Carry/Futura 63,000,000-70,500,000
Toyota Hilux 112,000,000-212,700,000

Double Cabin
Ford Ranger D/Cab 248,000,000-289,000,000
Isuzu D-Max 284,000,000-313,000,000
Mazda B-Series 247,000,000
Nissan Frontier 276,000,000
Mitsubishi Strada 192,500,000-255,000,000

Source: ATPM/Data Consult /ICN

Table--23
Cars with prices of around Rp 100 million

Brand Model Class Cylinder
 type capacity
 (CC)

Hyundai New Sedan 1,500
 Accent
Kia Pride Sedan 1,400
Proton Gen 2 Sedan 1,600
Chevrolet Aveo Sedan 1,500
Hyundai Getz Mini MPV 1,300
Daihatsu Xenia Mini MPV 1,000-1,300
Toyota Avanza Mini MPV 1,300-1,500
Mitsubishi Maven Mini MPV 1,500
Suzuki APV Mini MPV 1,500

Brand Price range per unit
 (Rupiah)

Hyundai 120,000,000-130,000,000

Kia 131,500,000-146,500,000
Proton 130,000,000-146,000,000
Chevrolet 134,700,000-139,000,000
Hyundai 129,000,000-132,500,000
Daihatsu 86,300,000-113,800,000
Toyota 106,200,000-141,300,000
Mitsubishi 112,000,000-127,000,000
Suzuki 106,500,000-140,000,000

Source: ATPM

Table--24
Cars with prices of around Rp 150 million

Brand Model Class Cylinder
 type capacity
 (CC)

Suzuki SX4 Cross Over 1,500
Chevrolet Kalos Sedan 1,400
Toyota Yaris Mini MPV 1,500
Honda Jazz Mini MPV 1,500
Suzuki Swift Mini MPV 1,500
Daihatsu Terios SUV 1,500
Toyota Rush SUV 1,500

Brand Price range per unit
 (Rupiah)

Suzuki 154,500,000-165,500,000
Chevrolet 147,500,000-167,500,000
Toyota 150,000,000-176,000,000
Honda 144,000,000-164,000,000
Suzuki 141,000,000-163,000,000
Daihatsu 122,500,000-167,000,000
Toyota 155,400,000-179,000,000

Source: ATPM

Table--25
Sales of largest brands/models
January - March, 2007

Brand Unit

Toyota Avanza 15,437
Toyota Kijang Innova 7,445
Daihatsu Terios 4,006
Honda Jazz 3,424
Toyota Rush 2,899
Suzuki Swift 1,316
Suzuki SX4 208

Source: ATPM

Table--26
Cars with price range of Rp 150 million-200 million

Brand Model Class Cylinder
 type capacity
 (CC)

Honda New City Sedan 1,500
Toyota New Vios Sedan 1,500
Chevrolet Optra Sedan 1,800
Peugeot 206 Sedan 1,400
Isuzu Panther MPV 2,500 (diesel)
Hyundai Trajet MPV 2,000
Kia Carrens MPV 1,800
Chevrolet Zafira MPV 1,800
Chevrolet Estate MPV 1,600
Toyota Innova MPV 2,000
Nissan Grand Livina MPV 1,500-1800
Chevrolet New Blazer SUV 2,200
Nissan Terano SUV 2,400
Suzuki Escudo SUV 1,600-2,500
Suzuki Grand Vitara SUV 2,000

Brand Price range
 (Rupiah)

Honda 176,000,000-190,000,000
Toyota 163,000,000-174,000,000
Chevrolet 169,000,000-192,000,000
Peugeot 175,000,000-191,000,000
Isuzu 165,900,000-207,700,000
Hyundai 196,500,000-215,000,000
Kia 156,900,000-169,950,000
Chevrolet 183,000,000-243,000,000
Chevrolet 162,000,000-172,000,000
Toyota 153,550,000-239,600,000
Nissan 138,500,000-203,500,000
Chevrolet 172,000,000-205,000,000
Nissan 185,000,000-275,000,000
Suzuki 162,000,000-245,000,000
Suzuki 199,500,000-231,500,000

Source: ATPM

Table--27
Distribution through sole distributors

 Brands Principals ATPM

Suzuki Suzuki Motor PT Indomobil Suzuki
 Corporation International

Isuzu Isuzu Motor Ltd PT Pantja Motor

BMW BMW AG PT Tjahja Sakti
 Motor

Mercedes Daimler PT Daimler Chrysler
 Chrysler Indonesia

Hino Hino Motor Ltd PT Hino Motor
 Manufacturing
 Indonesia

Peugeot Peugeot Motor PT Astra France
 Co. Motor

Daihatsu Daihatsu Motor PT Astra Daihatsu
 Co. Motor

 Brands Sole distributors Number
 of
 dealers

Suzuki PT Indomobil Niaga 202
 International

Isuzu PT Astra Intl. - Isuzu 98
 sales operation

BMW PT BMW Indonesia 23

Mercedes PT Daimler Chrysler 22
 Distribution Indonesia

Hino PT Hino Motor Sales 30
 Indonesia

Peugeot PT Astra 25
 International -
 Peugeot Sales
 Operation

Daihatsu PT Astra I 124
 nternational-Daihatsu
 Sales Operation

Source: ATPM

Table--28
Distribution via main dealers

 Brands Principal ATPM

Toyota Toyota Motor Toyota Astra
 Corp. Motor

Honda Honda Motor PT Honda
 Co. Ltd Prospect
 Motor

 Brands Main Dealers Number
 of
 dealers

Toyota -Auto 2000 142
 -PT New Ratna Motor
 -PT Hadji Kalla Trading Coy
 -PT Hasrat Abadi
 -PT Agung Auto Mall

Honda -Honda Jakarta Centre 54
 -Honda Bandung Centre
 -Honda Semarang Centre
 -Honda Surabaya Centre
 -Honda Cikarang

Source: ATPM

Table--29
Distribution via official and independent dealers

Brands Principal

Mitsubishi Mitsubishi Motor Co.

Hyundai Hyundai Motor Co.

KIA KIA Motor Corp.

Ford Ford Motor Company

Chevrolet General Motor Corp.

Brands ATPM Number of
 Dealer

Mitsubishi PT KTB 140

Hyundai PT Hyundai Indonesia 36
 Motor

KIA PT Kia Mobil Indonesia 77

Ford PT Ford Motor Indonesia 6

Chevrolet PT General Motor 46
 Indonesia

Source: ATPM

Table--30
Sun Motor group in motor vehicle retail

Name of company Location/branches

PT Sun Motor Jakarta Jakarta

PT Sun Motor Solo Solo, Madiun, Cirebon, Tegal,
 Klaten, Jember, Purwokerto,
 Denpasar, Semarang, Salatiga

PT Sun Motor Yogyakarta Yogyakarta

PT Sun Motor Semarang Semarang

PT Sun Motor Surabaya Surabaya

PT Sun Motor Malang Malang

PT Sun Star Motor (Mitsubishi) Jakarta, Salatiga, Solo,
 Wonosobo, Kudus,
 Kediri, Blitar, Surabaya,
 Malang, Probolinggo

PT Indo Sentosa Trada (Indo Mobil) Bandung, Medan

PT Sun Motor Indosentra Trada (Suzuki) Jakarta Semarang

PT Duta Putra Sumatera (Suzuki) Medan

PT Sun Dinasty Motor (Chryler) Jakarta

UD Sun Nusantara Motor Jakarta

CV Surya Indah Motor (Toyota) Kudus

PT Setrakarya Ekamegah (Suzuki) Jakarta

Source: Data Consult

Table--31
Five main players in auto industry in Indonesia

Brands Main products in Distribution Market share
 Type/Model networks and
 service

Toyota Innova 5 main dealers 38.8%
 Avanza 75 dealers
 Rush 180 outlets
 Fortune
 Yaris

Mitsubishi Colt T120SS 140 dealers 14.7%
 L300 46 sub dealers
 Colt Diesel FE
 Fuso

Suzuki APV 187 dealers 14%
 Carry/Futura 15 group dealers
 SX4
 Swift
 Grand Vitara

Daihatsu Xenia 137 dealers 10.4%
 Terios

Honda Jazz 77 dealers 9.4%
 CRV
 Stream

Source: ATPM

Table--32
Plan and realization of investment by Korindo Group - Hyundai

Investor Products Prod. Cap.
 (unit annually)

PT. Korindo Buses 1,500 bus bodies
Heavy Industry and trucks 10,000 units of
-- Hyundai truck chassis
Motor Company

Investor Production Investment
 plan/a year

PT. Korindo 500 buses 2007
Heavy Industry 4,000 trucks US$ 25 million
-- Hyundai 2011
Motor Company US$120million

Source: Antara

Market share of cars by type 2006

Truck, 12.80%
Pick Up, 17.50%
MPV-SUV, 64.10%
sedan, 5.60%

Note: Table made from pie chart.

Market share of cars by brand 2006

Honda 9.4%
Suzuki 14.0%
Mitsubishi 14.7%
Peugot and
Nissan Diesel 0.4%
Isuzu 5.2%
Daihatsu 10.4%
Toyota 38.8%
Others 7.1%

Note: Table made from pie chart.
COPYRIGHT 2007 P.T. Data Consult, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:INDUSTRY PROFILE
Publication:Indonesian Commercial Newsletter
Article Type:Industry overview
Geographic Code:90ASI
Date:Apr 1, 2007
Words:11668
Previous Article:Interest rates scaling down but credits remained un-disbursed.
Next Article:Auto insurance market haunted by tariff war.
Topics:

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters