Why Indonesia Auto Market dominated by MPV?

By Ali Budiman

Toyota Avanza Display at Auto2000 Showroom

Indonesia auto market has unique characteristic. If Thailand auto market is dominated by Pick Up/Double Cabin (Mitsubishi L200, Ford Ranger, Toyota HiLux) and Malaysia auto market is dominated by Sedan (Proton Saga, Toyota Vios, Honda City), thus Indonesia auto market is dominated by MPV, such as: Toyota Avanza.

Why Indonesia Auto Market dominated by MPV?

Refer to various literatures about Indonesia auto market, we can summarize that why Indonesian people buy Multi Purpose Vehicle (MPV) are “They need a car to bring or carry on all family members/friends.” Dad & Mom, Children, GrandPa & GrandMa, Uncle & Aunty, even the nanny.

During weekdays, most of Indonesian people use they own cars for: commute to workplace, transporting children to school, and business purpose. During weekend, they use the cars for one day trip for leisure (with family/ friends); shopping with family, hang out with friends, going out for hobbies and traveling with family/ friends.

For instance, most of Jakarta people go to Bandung (about 200 km) almost every weekend to hunting clothes in “Factory Outlet” or foods in various nice places in Bandung.

Refer to these purposes, so a car must be low fuel consumption but powerful and easy to ascend in height. And since MPV is used for family trip during weekend for long distance travel, service network availability becomes a concern especially outside Jakarta City. And the one important thing is spare part. Spare part must be easily available in part business center like such as: Asem Reges market, Kemayoran area, Atrium Senen market, etc.

Why MPV segment dominated by Japanese Brand?

Yes, Indonesia auto market has unique characteristic. In the mind of Indonesian people, each brand has certain perceptions, associate to quality. Toyota, Suzuki, Honda, Daihatsu, Nissan, Mitsubishi as Japanese brand: highest perceived quality, affordable price and good resale value. While European brand; BMW, Mercedes-Benz, Volvo, Peugeot perceived expensive, high maintenance, and low resale value. And Korean brand; Hyundai, Kia has perception as low resale value.

These perceptions makes Japanese brand dominates Indonesia auto market, included MPV segment. Toyota Avanza, Daihatsu Xenia, Toyota Kijang Innova, Nissan Grand Livina, Suzuki APV, control almost 100% MPV market share.

Related articles :

1. MPV models makes up 38% of Indonesia Car Sales in 2008.

2. Toyota Avanza, Indonesia Top Selling Cars.

3. New MPV in 2009.

4. Indonesia Cars Sales 2009 still hopeful.

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Indonesia International Motor Show (IIMS) 2009, the Show Must Go On

By Ali Budiman

Toyota Brand Ambassador in IIMS

Despite the fact that the 17^th Indonesia International Motor Show (IIMS) 2009 will be held in 2 months time, numerous sole distributors have pulled their applications back. Thus organizers are considering alternatives in an attempt to gain the interest of its applicants.

From the information that was gathered by author, only 12 members of GAIKINDO; Toyota, Honda, Isuzu, Daihatsu, Nissan Diesel, Proton, Hino, Hyundai, VW, Audi, Mitsubishi, Foton group Modern and Jaguar; have confirmed that they will be attending the IIMS 2009.

Other brands, however, have confirmed that they will not be attending the IIMS, such as Mercedes-Benz, BMW, Renault, Peugoet, Chevrolet and Volvo will not be attending as well.  Even Suzuki, who is a fan of exhibitions, will leave out this annual motor show.

Most of sole distributors decide to pull back since they must to focus more on sales and tough that brand imaging activities such as exhibitions should be less in frequency. And the other reason is, without doubt, the change of location from the usual venue Jakarta Convention Centre (JCC) to Jakarta International Expo Center (JIEC) in Kemayoran.

The event organizers have suggested numerous alternatives to attract participants. Before the show, event organizers give more than 10,000 free tickets to public by road show in some public area/shopping center.

And as usual, together with 17^th IIMS 2009, GAIKINDO will also hold the 4^th Indonesia International Automotive Conference. The conference is an arena for the national automobile industry to make international exposure.

People will acknowledge what achievements and latest technology that national automobile has made so far. Through this agenda, Indonesia automotive industry can tell the world that the global financial crisis will never bring them to an end.

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