daihatsu ayla

Some updates on the sales of lower-priced compact vehicles in Indonesia since the country’s Low Cost Green Car (LCGC) policy kicked into place last month. The recent Indonesian International Motor Show in Jakarta saw Japanese automakers unveiling a slew of new models in an attempt to capture more of the growing pie.

According to the Nikkei, Daihatsu reports that demand for its 1.0 litre Ayla compact five-door hatch, which is priced at 76.1 million rupiah (RM21,150), has been brisk – a dealership in the outskirts of Jakarta, for example, has sold around 100 Aylas in just two weeks. A spokesman said around 40% of the buyers are new customers, with those in their early-30s with young families making up a large percentage.

The Ayla and its eco-car twin, the Toyota Agya, premiered at last year’s IIMS, and were originally supposed to have begun selling in the country last December following the completion of the new plant that would build them, but their market introduction was put on hold as the companies waited for the Indonesian government to announce the LCGC programme. Both were the first vehicles certified in the programme.

toyota agya

Under the programme, a 10% luxury tax normally included in car prices is waived for LCGC-certified vehicles. Programme requirements for LCGC compliance include an engine capacity of below 1,200 cc, a minimum fuel consumption of 20-22 km per litre and a price of 95 million rupiah (RM26,400) or less. As it goes along, the LCGC cars will also need to contain 80% locally-sourced parts.

The report adds that a market survey by Daihatsu anticipates that by 2020, around five million Indonesian households will have the ability to purchase a new vehicle, which is more than double the 2010 figure. The automaker believes that with programmes such as the LCGC, the number could increase further to 12 million households.

Plenty of promise from a country with a population of 250 million and a total industry volume of 1,100,000 units in 2012 – presently, the country has a rate of 36 vehicles per 1,000 residents, and with a view of the potential spoils, it’s easy to see why automakers are viewing it as one of the most promising automobile markets in the world.