Automotive industry players are optimistic that the market
potential for four-wheeled vehicles in Indonesia still promises to attract new
investments. It is believed that the release of one of the manufacturers
recently will not discourage investors.
At the end of last month, General Motors (GM) announced that
it would stop selling vehicles in Indonesia in March 2020. After-sales services
for these Chevrolet branded vehicles will continue to ensure consumer comfort.
GM said the move was in line with the company's plan to
focus on businesses that have sustainable profitability. In addition, GM does
not have production facilities in the country, making it difficult to compete
in increasing sales volume.
Nevertheless, a number of other automotive industry players
are still optimistic about the Indonesian market. PT Garuda Mataram Motor
(GMM), the agent holding the brand (APM) for Volkswagen (VW), in Indonesia
stated that it was not concerned about the decision of the manufacturer from
the United States.
"I'm not worried
about that, because like this, what came out yesterday was a foreigner, while
we are with the locals, under the auspices of Indomobil. So, we're not going to
back down.
If we retire, it will take longer to build again," GMM
COO Jonas Chendana told Bisnis last weekend.
He said that the market potential in Indonesia is still
quite promising for the German brand. At the recent launch of the Tiguan
Allspace model, the principals of VW have also expressed their seriousness in
working on the domestic market.
This was demonstrated by starting to import partially
decomposed and assembled cars in Indonesia.
Indomobil as a VW partner has built a factory with a
production capacity of around 6,000 units per year in Cikampek, West Java,
through its subsidiary, PT National Assemblers.
Meanwhile, PT Toyota Astra Motor (TAM), APM Toyota in
Indonesia, also stated that GM's decision would not affect the Indonesian
automotive industry. The decision was deemed unable to illustrate that the
domestic market was not promising enough.
TAM Executive General Manager Fransiscus Soerjopranoto said
GM's departure was also considered not so significant. According to him, other
brands that are big players in the domestic automotive industry are still
confident about the market in Indonesia. “The most important thing is that all
the big players are still staying.
So those who control 60%-70% of the market are still
investing in Indonesia. That's a good sign, because the factor is not
necessarily the unattractiveness of the market. For us, the potential is still
very big," he said.
TAM as APM and PT Toyota Motor Manufacturing Indonesia
(TMMIN) as the factory of Toyota Motor Co. in Indonesia still believe that this
condition will not affect their principal investment in Indonesia, including
for electrified cars.
Previously, Toyota Motor Co. rumored to be investing IDR
28.3 trillion to develop hybrid cars in the country. “What is clear is that we
are always committed to
support every program and direction of government policy.
But what is the amount of the investment, and when is it uncertain," he
told Bisnis, Sunday
STRESSED
General Chairman of the Association of Indonesian Automotive
Industries (Gaikindo) Yohannes Nangoi said General Motors saw their sales in
Indonesia a little depressed so they stopped sales operations, but after-sales
was still continuing.
"Hopefully with time they can find products that are
suitable for Indonesia and also competitive prices," he told Bisnis.
Yohannes said Gaikindo did not regulate price competition
because that was the strategy of each company. According to him, to be able to
survive in Indonesia, automotive companies are required to present products
that suit the needs of the community and at the right price. "So, if you
want to sell in Indonesia, know Indonesian tastes.
If you want to export, know the taste of the export destination
country. Once you know, adjust the price, if the price doesn't match, it won't
sell," he said.
Gaikindo noted that in January-September 2019, wholesale
sales of the Chevrolet brand in Indonesia totaled 970 units, which was quite
depressed compared to the same period in 2018 which totaled 1,887 units.
Throughout 2018, Chevrolet sales recorded 2,509 units, down
30.6% compared to 2017. Even though last year was a period when domestic
vehicle sales grew 7% compared to 2017.
Yohannes admitted that he did not know whether GM's
departure was related to the presence of Wuling Motors, which is also owned by
the manufacturer from the United States.
General Motors is one of Wuling's stakeholders. This brand
from China has been around for 2 years and has domestic production facilities.
So far, Wuling's sales performance has been quite good because it has been able
to penetrate the top 10 best-selling brands in Indonesia.
Wuling has also exported the Chevrolet Captiva vehicle which
has the same platform as Wuling Almaz.
Meanwhile, Automotive Observer Bebin Djuana regretted GM's
decision to leave the Indonesian market, which was considered to have
potential. GM's loyal customers and consumers will be harmed by the company's
decision. He also considered the decision to be inappropriate because it was
taken when the domestic automotive market was under pressure.
Comments
Post a Comment