Japanese automakers gear up in Indonesia – report

Honda_Mobilio_prototype_-001

The 2013 edition of the Indonesian International Motor Show – which opened yesterday in Jakarta – has seen plenty of activity from Japanese automakers, who are using the show to showcase small, fuel-efficient vehicles meant to further consolidate their market dominance, the Nikkei reports.

The introduction of the Low-Cost and Green Car (LCGC) programme by the Indonesian government has certainly spurred activity – the tax breaks the programme introduces means that small, fuel-efficient cars will become more accessible price-wise to the low- and middle-income group. In order to qualify for the tax breaks, a car must not only be inexpensive and fuel-efficient, but also contain 80% locally-sourced parts.

Suzuki_Karimun_Wagon_R_Indonesia_-002

Suzuki introduced its 1.0 litre Karimun Wagon R at the show, and the report suggests that the model could enter the Indonesian market as early as October. The automaker also officially announced its plans to build a 93 billion yen factory, which will be located near Jakarta.

The plant, scheduled to begin operations in February next year, is set to boost local production capacity by about 70%, to 250,000 cars annually. According to executive vice president Toshihiro Suzuki, future plans to utilise Indonesia as an export base are under consideration.

datsun-goplus-iims-live-7a

Honda, meanwhile, had its Brio Satya on display. The car, officially introduced last week and due out in the market in November, also qualifies for tax breaks under the LCGC programme.

The company also stated its intent to enter the small MPV market, with the world debut of the Mobilio prototype signaling that. Honda president Takanobu Ito stated that the company is aiming to quickly capture a 10% market share, which likely means that the Mobilio will be fast-tracked for production.

Honda_Brio_Satya_Indonesia_-002

Elsewhere, Daihatsu and Toyota started sales of the Ayla and Agya eco-car twins earlier in the month, ahead of the IIMS – both also qualify for LCGC certification (the first two vehicles to be certified, apparently), as will the Datsun GO and GO+ MPV, which are expected to enter the market next year.

Of course, there’s the flipside to things – according to Hafriz, who is reporting from Jakarta, while all the talk at IIMS is all about the LCGC programme and the vehicles that it’s spawning, there are those who say that it’ll make the already bad traffic jams worse. If one percent of the millions of the motorbike-riding crowd trades up, he ventures, it’ll be pretty much gridlock 12 hours a day. Certainly food for thought.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • hantu on Sep 20, 2013 at 12:38 pm

    Karimun Wagon R already in India long time ago..

    Like or Dislike: Thumb up 3 Thumb down 3
    • FACEPALM on Sep 20, 2013 at 2:00 pm

      Wagon R already available in Indonesia since the 90s bro. Duhhh you thought they still katak bawah tempurung?

      Now they having the latest version of Wagon R while we never ever would see this car on our road.

      Like or Dislike: Thumb up 6 Thumb down 0
    • anonymous on Sep 27, 2013 at 9:13 pm

      si hantu better use investigation in google before typing comments.

      Like or Dislike: Thumb up 1 Thumb down 0
  • leroycharlie on Sep 20, 2013 at 1:22 pm

    Malaysian Auto Market has been sidelined by all international players.

    Like or Dislike: Thumb up 13 Thumb down 2
    • kadajawa on Sep 20, 2013 at 4:54 pm

      Big thanks to Dr M….truly the father of modern Indonesia automotive industry…bravo NAP, bravo MITI….!!!

      Like or Dislike: Thumb up 9 Thumb down 0
    • carguy2000 on Sep 20, 2013 at 5:47 pm

      to reduce cost. dozen of Japan small manufacturing that supplying specific parts moving their factory in Indonesia. this only means to create job and cutting price. somehow the money will went to japan again if it not localize 100 %. it will take some time but we will get there

      Like or Dislike: Thumb up 1 Thumb down 2
      • anonymous on Sep 27, 2013 at 9:17 pm

        business is business bro .. “if you’re lucky, I was more lucky than you”

        Like or Dislike: Thumb up 1 Thumb down 0
  • Steve web on Sep 20, 2013 at 1:26 pm

    Malaysia is falling behind once again in automotive sector. Looks like Indonesia government low cost and green car scheme is attracting a lot of foreign investor….aaah what is our government thinking all this while

    Like or Dislike: Thumb up 10 Thumb down 2
    • Pablo on Sep 20, 2013 at 2:08 pm

      Don’t worry, our KL International Motor Show would have :-
      5 concept car from Proton,
      2 concept car from Lotus,
      2 concept car from Perodua,
      3 Batmobile or transformer’s Camaro,
      10 concept/modified car from local University,
      50 car from accessory company or magazine,
      20 exotic car from NAZA,
      Plus hundred’s car from different car dealer.

      And there would be plenty of car and motorbikes inside the carpark!

      Like or Dislike: Thumb up 27 Thumb down 2
      • carguy2000 on Sep 25, 2013 at 5:56 pm

        funny, Indonesian motor show has the same participant minus the concept car from Proton.

        Like or Dislike: Thumb up 0 Thumb down 0
        • anonymous on Sep 27, 2013 at 9:22 pm

          do you know?, proton resigned from the show a few days earlier. for what? because protons can only place outside the building .. so pathetic isn’t?

          Like or Dislike: Thumb up 1 Thumb down 0
  • Jonjai on Sep 20, 2013 at 5:31 pm

    I’m wondering what proton is planning to boost its market share cake in Indonesia. Please proton you are too slow to react to reap the benefit of the Indonesian market. Buck up or bungkus la…..

    Like or Dislike: Thumb up 6 Thumb down 1
  • b sensible on Sep 20, 2013 at 11:27 pm

    indonesia is a BIG market & proton think it can penetrate the market…huh, they might be wrong. the bigger the market, the more competitive as more products for consumers to choose. the problem here is that consumers will choose the better product that’s value for money. that’s the main reason toyota is the 1st choice among the indon consumers. for proton to penetrate the market, it needs to sell the cars at low cost anyone can buy, and producing the cars matching “toyota” quality…then bingo!

    Like or Dislike: Thumb up 4 Thumb down 1
    • alldisc on Sep 21, 2013 at 1:30 pm

      indonesia, like india and chine even though has high number of populations, at approx 260 million but we need to bear that easily 70% of them lives in puberty.

      still, 70 million is a whole lot bigger than what malaysia can offer.

      Like or Dislike: Thumb up 0 Thumb down 2
      • TesseractOrion on Sep 22, 2013 at 12:06 am

        Umm, did you really mean ‘puberty’? It’s true that a lot of the population is young ;-)

        Like or Dislike: Thumb up 1 Thumb down 0
  • Wonder why only small cars are being launched in IIMS? Seems like Indonesia is small car market

    Like or Dislike: Thumb up 3 Thumb down 1
    • Since Indonesian govt introducing LCGC scheme, it seems logical for them to have small cars. All this while in Indonesia, small cars perceived as luxurious vehicles which translates: If you can buy a small car, carry 4 adults – you are rich. If you buy an MPV which could load 7 or 8 adults – you are middle income people.

      The idea of LCGC programme is briliant IMHO..

      Like or Dislike: Thumb up 2 Thumb down 1
  • Jaguh kampung manaaaa….. tak join party iims kat jakarta indon?
    ….
    Oh, sibuk tidor dibawah tempurung rupanya

    Like or Dislike: Thumb up 3 Thumb down 0
 

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