Uncertain political condition made sales of commercial vehicles for Semester I this year to drop by 5% against 2013. Still businesspeople were expecting the condition would improve in the next Semester as the next President would be in office.
Such was disclosed by Chairman II of the Association of Indonesian Automotive Industry [Gaikindo] Yohannes Nagoi in Jakarta on Thursday afternoon [17/7]. Meanwhile broaly speaking automotive sales in Indonesia was predicted to reach 1.2 million units this year. In line with the introduction of energy efficient and green vehicles [LCGC]. President of IAMI disclosed that downturn of coal price in the world market and Government’s regulation to prohibit export of raw mining ores had its indirect effect on sales of trucks normally used for carrying coal.
“One of the strategies adopted was to shift focus on carrier vehicles used for distribution and logistics, around 80%-90%” this was stated by President of IAMI, flanked by PT IAMI GM Sales Takashi Rahada. With high potentials in logistics, efforts had been focused on Java over the past few years as it was no longer possible to aim at Sumatra when the market was low.
In line with company’s future plan to produce small commercial vehicles, the company also planned to build a factory in Cikarang, West Java, which was scheduled for completion by end of this year. The factory which had started construction in 2011 would soon spedcialize in producing trucks. With total investment worth Rp 1.5 trillion, for the first step production output was targeted at 40.000 units which would gradually be increased to 50.000 units.
Soon after producing for 2 years the company would start exporting their products after domestic demand was fully met. “Even today the company had already exported part of production output like light commercial vehicles. To meet domestic need, production capacity was targeted at 40,000 to 50,000 units.” He said.
In 2014 sales of PT IAMI was projected to reach 32 thousand units more than 2013 at 31,527 units. In the past few years sales of commercial vehicles were more prevalent, compared to light commercial vehicles. In 2013 sales of commercial vehicles only constituted 60% this year increasing to 65%. Admittedly it was not easy to sell commercial vehicles compared to private cars and passengers cars.
Such was due to high variety of commercial vehicles in terms of usage or consumer’s profile. Moreover in Indonesia consumers were more concerned about loading capacity than comfort. With population of 250 million people, Indonesia had enormous human resources potential to be employed in automotive industry on the production or distribution side. Indonesia had the potential to be the “Detroit” of automotive industry in Southeast Asia. (SS)
Business New - July 23, 2014