Joko Trisanyoto, a marketing director at Toyota Astra Motor, the sole distributor of Toyota vehicles in Indonesia, said MPVs will likely maintain their 42 percent share of the total car market in Indonesia next year.
Car sales are predicted to reach a record 1.1 million vehicles this year, Jongkie D. Sugiarto, an executive at the Association of Indonesian Automotive Manufacturers (Gaikindo), said earlier this month.
Another Gaikindo executive, Johnny Darmawan, predicts even higher sales for next year, believing the market will grow to 1.2 million. MPVs will likely account for at least four in 10 vehicles sold this year and next, followed by compact and city cars.
“MPVs will continue to dominate the market next year,” Joko said. “Suzuki Indomobil Sales and Nissan Motor Indonesia just launched their MPVs, the [Suzuki] Ertiga and [Nissan] Evalia,” he added, referring to TAM’s competitors’ move to tap into the MPV market.
He added that households will next year have higher incomes and consider buying cars that can accommodate more family members.
Indonesia’s car sales rose 24 percent year-on-year in October to 106,807 units, thanks to strong demand from buoyant middle class consumers that are willing to spend more money amid low interest rates and tame inflation.
October’s figure brought total sales in the first 10 months to 923,132 cars, a 3.2 percent rise from the same period last year.
Toyota sold 334,554 cars from January-October this year, accounting for 36 percent of the total market in the period, while Daihatsu sold 135,546 cars, representing a market share of 15 percent. The Toyota Avanza and the Daihatsu Xenia were the two most popular cars in the Indonesian market.
Teddy Irawan, vice president director at Nissan Motor Indonesia, said there had been growing demand for city and compact cars. But, he acknowledged, it would not shake MPVs’ domination in the market next year.
That is why the Japanese carmaker launched its latest MPV model, the Evalia. The company aims to challenge Toyota and Daihatsu’s dominance in the low-end segment.
The Jakarta Globe: ID/Abdul Muslim & Abdul Aziz | November 19, 2012