JAKARTA (TheInsiderStories) – Indonesia’s joint venture automobile and commercial vehicle manufacturer, PT Isuzu Astra Motor Indonesia, is ready to export its product to the Southeast Asian market starting in early 2020, the management said today (11/18). The plan follows the successful sale in the domestic market.
“We will export early next year. We will export the latest product – the Traga medium pickup model – to the Southeast Asian market, especially the Philippines and Vietnam. The Traga medium pickup model was only launched in April 2018 and very successful because it is accepted by Indonesian consumers so that sales increase significantly,” Rahmat Samulo, company’s marketing director told media in Jakarta.
Samulo did not specify the total export quota prepared by the company, but he believed the amount was above three digits with the main destination being the Philippines and Vietnam.
“With the export of the Traga model, it proves that Indonesian assembled car products can be accepted by foreign markets. The most important thing is not the export, but the quality. It means that the quality we offer has global quality, not only for the domestic market,” Samulo adds.
He noted, the sales of Isuzu Traga reached 4,288 units until September 2019. This achievement increased by 180.6 percent from the previous year which only reached 1,528 units.
For the domestic market itself, Isuzu Traga is claimed to be able to market 500 – 600 units per month. Traga’s success is said to have been part of the pickup medium market segment, according to Samulo, adding the high numbers due to it is a nGaikindoew product with a stubborn and economical engine.
The holding company of PT Astra International Tbk (IDX: ASII) once exported its product – Panther model- in 2007. However, this only lasted a few years before finally stopping. Since then, the company has only produced their cars in Karawang, West Java.
Astra Daihatsu Motor Targets 17% Market Share in 2020
The joint venture between Astra International, Daihatsu, and Toyota Tsusho, PT Astra Daihatsu Motor (ADM), has set a target of 17 percent market share in 2020, the same as this year’s target.
“Our target market share did not go up nor did it go down, (because) just maintaining (the target) is already difficult,” company’s planning & communication division head Elfina Afny, said in Jakarta, saying the existing market conditions next year will not be much different from this year.
For 2019, the company realization sales were still in line with the set market target. Until September 2019, ADM had recorded retail sales of 127,639 units. If calculated, the sales volume is equivalent to around 16.8 percent of total domestic retail sales in the first nine months of this year which amounted to 758,413 units.
This achievement makes ADM as a brand holder agent with the second largest market share after Toyota, which has a market share of 31.6 percent, according to Afny.
Most of ADM’s retail sales realization was supported by sales of the low-cost green car (LCGC) segment of 54,257 units, equivalent to around 42.50 percent of ADM’s total sales. The ADG LCGC sales increased by 1.4 percent compared to 53,497 units sold in the same period in the previous year.
The company’s retail sales are still dominated by the Sigra model with a total of 37,241 units or a contribution of 29.2 percent of total sales. Furthermore, the second position was followed by Gran Max PU of 25,865 units, equivalent to 20.3 percent of retail sales.
Meanwhile, January to October domestic car sales have declined by about 11.7 percent from the same period last year, according to data from the Association of Indonesian Automotive Manufacturers (Gaikindo) compiled by diversified conglomerate Astra International.
Sales from January to October totaled 849,609 units, down 11.7 percent from the 962,834 cars sold in the same period last year. In October alone, domestic car sales dropped to 96,030, down nearly 9.5 percent from the 106,079 units sold in the same month last year.
“Political activities have hampered sales in the first semester of 2019, especially the presidential and the simultaneous regional head elections,” Gaikindo cochairman Jongkie Sugiarto said on Friday (11/15).
Almost all carmakers saw a similar slowdown. Toyota reported sales of 31,142 cars in October, down about 16 percent from the 36,209 units in the same month last year. Honda’s sales fell about 6 percent to 14,503 units Mitsubishi’s dropped by nearly 8 percent to 14,023 units.
Although it faces declines in almost all of its brands, Astra International continues to dominate domestic car sales with a 53 percent share of the market. The publicly listed company holds the distribution and manufacturing rights to Toyota, Daihatsu, Isuzu, Peugeot, and UD Trucks.
Astra’s competitors, Suzuki and Nissan, recorded an increase. Suzuki’s sales climbed about 2.4 percent to 8,721 units in October from the same period last year while Nissan’s sales increased by about 187 percent to 480 units.
Despite the overall domestic auto sales drop, Sugiarto said that the sales target of 1 million units this year remains unchanged from its latest revision. The target is lower than last year’s sales realization of 1.15 million units.
The year-to-date sale of 849,609 cars currently fulfills 84.9 percent of the target, meaning 150,712 units have to be sold in the last two months to reach the association’s goal.
“We hope that we can reach 1 million sales in December this year so that the year-on-year decrease will only be around 13 percent,” said Sugiarto, who previously earmarked an average monthly sales of 85,000 units to attain the target.
Written by Lexy Nantu, Email: email@example.com