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Proton to sell CBU cars in Indonesia

Here’s Proton’s plans to increase market share in Indonesia. For the moment, PT Proton Edar Indonesia will sell CBU (fully imported from Malaysia) sedans in the 1.3 liter to 1.8 liter capacity range, which is liable for 5% duty. Even with the duty slapped on, prices of Proton cars there is still cheaper than Japanese imports.

Apparently CKD assembly operations in Proton’s Cikarang plant will start when there is enough demand for Proton cars in Indonesia. But the question is, shouldn’t the purchase/building of a plant only come after volume justifying CKD operations has been reached?

Source

28 Comments »

  1. ergo_etc said,

    December 7, 2006 @ 12:35 am

    idioto

  2. AmiR said,

    December 7, 2006 @ 1:23 am

    just improve ur damn quality enough la!….>

  3. 4G63T DSM said,

    December 7, 2006 @ 8:08 am

    Good move by Proton to get CBUs into the Indon market. However CKD operations are a little immature.

    But just wait…..Indons may just pull Thai’s move and slap on restrictions and complain that M’sia is not playing fair.

  4. normal_user said,

    December 7, 2006 @ 8:10 am

    1.8 liter car? are u sure paul?

    I tot the Satria GTi & Waja 1.8 has already stopped production.

  5. KL-ATR said,

    December 7, 2006 @ 9:25 am

    Haha! How typical. Build factory first, then wait and see if it’s required. Maybe 2 years later, demand is high enough to start production. But after leaving all the machines unused for so long, they need to be serviced and maybe even replaced. Spend more $$$. But why should Proton care? They’re only using taxpayer’s money! When oh when will they look at Carlos Ghosn and learn how he turned Nissan from the brink of bankruptcy to profitability???

  6. RM said,

    December 7, 2006 @ 9:53 am

    A classic case of Protonomics which involves excesses…bundles of it. It’s a state run company and the proxy through which the Government is able to justify collection of billions in excise duties for the GOV. Proton has vast resources backing it to make silly and costly decisions. Does anybody know how much Proton sunked in the Cikarang plant ? What is the plant’s assembly capacity ? the cost of maintaining it pending future numbers to commence operations ? Can’t they at least use the facilities to assemble for other manufacturers in the meantime ?

  7. ckengyo said,

    December 7, 2006 @ 10:50 am

    i think income group in indonesia is very extreme. either very rich or just make a living. not a lot of middle class, which proton target, 2 support. motorcub should b their biggest market. of cos those smuggling stolen cars in batam not count.

  8. ed0r said,

    December 7, 2006 @ 11:51 am

    It’s still premature for proton to fully produce CKDs in Indonesia, yes I agree with that considering many factors particularly costs and yeah, like Paul said: the sales volume.

    I hope those people running proton should really use their brain well lol. Or should I ask Phua Chu Kang to tell ‘em that? use ur blain aaaa… sighs.

    Just sell CBUs, improve the quality and highly reliable after sales services first!

  9. motorhead said,

    December 7, 2006 @ 1:20 pm

    “But the question is, shouldn’t the purchase/building of a plant only come after volume justifying CKD operations has been reached?”

    This question is (unfortunately) not important… the important is (for themlah, of coz).. who earn the money from the deal / purchase, (such as komisyen & etc).. biasalah, still don’t understand how they work, meh?.. like the UK sport complex project la…

    Sux.. will always be sux… even more sux….

  10. Joe Ooi said,

    December 7, 2006 @ 1:57 pm

    Plan to sell Wira as taxi as posted by Paul Tan not long ago, do this taxi volume justify CKD units? But as usual, this is P1 big mouth talk show!

  11. ed0r said,

    December 7, 2006 @ 2:01 pm

    I am a fan of How Do They Do It? on Discovery Channel (astro). How do they make pens, process diamonds and even water processing. And when it comes to how do people make cars, they covered P1 Tanjung Malim plant. Yes, impressive facilities and stuff. But…but, how do we get a lousy car? LOL. How do they mess with it aaaa..

    Sorry a bit off topic, just nagging hehe. Later.

  12. REDDEVIL said,

    December 7, 2006 @ 2:10 pm

    Another stupid investment by Proton. Destine to be failed… Now they starting to export excess stock to Indon, but Indons is not stupid. I believe they will get tha jap cars if the price difference is not much.

  13. transformer said,

    December 7, 2006 @ 3:36 pm

    i had a fren working in Batam, Indonesia to me before…

    Check this out..
    most locals buy japanese car…. bcoz 2nd are DAMN CHEAP!
    you could see a lot Altis, Aristo, Prado, Accord, Oddessy… But these are stolen from neighbouring countries but you can still get legal document/permit to drive… even Kancil, Wira & Waja also there… long time ago…

    Conclusion: P1 Boleh!

  14. Driven2020 said,

    December 7, 2006 @ 4:17 pm

    Batam cars are all from imported from Singapore. If not mostly.

    When sg ppl sold of their car for export, the cars were sold very cheaply that’s why it is more affordable for Batam ppl.

  15. protonGL said,

    December 7, 2006 @ 6:48 pm

    in deep water…

  16. tamannegara said,

    December 7, 2006 @ 9:00 pm

    so..how to use the factory?
    no survey first..just jump in and bought the factory..and
    think proton car will sale like hot cake in indonesia?
    maybe proton think indonesia just another malaysia market?

  17. al said,

    December 7, 2006 @ 9:37 pm

    haha…….. another way to find money ….toidi

  18. oranglulu said,

    December 7, 2006 @ 9:37 pm

    they target the wira and waja for taxi,perdana for limosine services…..for most average people?…..just can’t affort it…..

  19. andylkw2004 said,

    December 7, 2006 @ 9:59 pm

    haha…P1 really out of their mind.

    pls lar..before investing do study 1st. i think proton advisor maybe stupid.

    now proton is wasting our people money. what they do within 15yrs.

    design new car but very low quality.
    had 1st class facilities at tanjung malim but lowest class of car quality.

    hope that proton can merge or bought by other giant japanese car maker.

    at least, worth it. fired all the proton top management.

    if these things executed. at least proton can be saved.

  20. Joe Ooi said,

    December 8, 2006 @ 12:54 am

    Aiya, in Indon, especially Batam Island, P1 don’t need to export. Most of the P1 car are seludup and sell there damp “cheap-cheap”………………

  21. hameed koyakuti said,

    December 8, 2006 @ 8:37 am

    Paul, your source is wrong. Import duty for Msian cars in indon is still 60%, thats why we still stick to our AP system, eventhough we lowered our import duty to 5% to honor AFTA & CEPT.

    And to all other msian, kita kena tipu buta2, thats why we dont abolished the AP to ASEAN countries as well.

  22. domoteka said,

    December 8, 2006 @ 1:51 pm

    hah???? hameed koyakuti, you say we as in bolehland have already lowered our import duty to 5% to honor afta and cept?? eh lu betui ka tak betui lu cakap ni?
    you in which dreamland that you hear malaysia honor ap and cept, charge only 5% import duty???
    dun come and bluff lah……..
    if mrs30% minister and her close one eye MP buddies have already reduced the import duty to 5% to honor afta and cept konon, they cannot build personal istanas on government land already lah……..

    please get your fact right before simply posting for the sake of posting lah…….

  23. SamGan said,

    December 8, 2006 @ 9:04 pm

    It’s true, the NAP has lowered import duty for Asean cars to 5%. to comply with AFTA. But you’re wondering why our prices still so high? Because as usual Malaysian govt. gives with one hand and take away with another hand. Excise duties are jacked up to compensate for reduced import duty so overall no difference.

    Also, the AP system does not comply with AFTA as it impose a quota which is not allowed under AFTA. Like the Thais, the Indons have every right to impose penalty duty on Malaysian cars as we do not comply fully with AFTA.

  24. DAN said,

    December 9, 2006 @ 5:50 pm

    proton r thinking that Indonesia is like Malaysians that stupid that same kind!

  25. domoteka said,

    December 11, 2006 @ 9:53 am

    Dan, we malaysians not stupid, just downright compliant and obedient……
    if indon government do this to bakso people, bakso people riot already lor….
    hai, kan malaysia boleh…..so actually it is bolehlah, takpelah attitude that make the G so brave to suck our blood….

  26. domoteka said,

    December 11, 2006 @ 9:56 am

    SamGan, maybe you are right, it seems i was blinded by the ever increasing prices that even if the G pura pura reduce the import duty to 5%, they impose another 300% sales tax or something ridiculous like that….
    Hameed, my humble apologises….

  27. domoteka said,

    December 11, 2006 @ 9:59 am

    Oh yah, did you guys know, avanza is cheaper in thailand than in malaysia???
    Steady lah UMW, keep on cheating Toyota die hard(and die stubbornly stupid) fans……..
    eh you toyota fans in malaysia, toyota is a very very good brand, only in malaysia brought in by con company UMW to fleece you…..dun buy from UMW, got many grey imports…..or many other brands like Nissan/Mitsubishi..
    buka mata, buka minda….jangan asyik kena tipu

  28. hameed koyakuti said,

    December 13, 2006 @ 2:03 am

    Dont simply blame G ler……..earlier on, when we earlier reduce duty to 5%, our neighbour doesnt reduce…..thats why avanza a lot cheaper during 1st batch……
    eventhough we have AP, other neighbour also have other non monetary control ma……some impose luxury tax ler, quota registration ler, local content quota ler…….
    ever imagine why passenger car is not selling well in our neighbouring countries…….same reasons…….
    im not defending P1, but the attitude of our neighbours are also not honest……
    totally, only the japs and the westeners reap the benefits……hehehe……new form of colonisation….

    p/s P1, pls be competitive ler……

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