T

he Indonesian automotive market has been enjoying a strong rebound after the 2008-2009 financial crisis with a retail sales of around 745,000 vehicles in 2010, up from 486,061 cars in 2009 and 607,151 in 2008.

The Indonesian Automotive Manufacturer Association (Gaikindo) forecast that that figure would reach an all-time record of 800,000 units this year. The market for premium cars has also enjoyed strong performance although its numbers are still relatively small when compared to the overall market. There were 5,327 luxury cars sold in 2010, up from from 3,450 cars in 2009.

There are already several brands, mostly European, offering their cars in the rather small premium segment in Indonesia. This, however, has not deterred Yokohama, Japan-based Nissan Motor Company (NMC) from marketing its premium brand, Infiniti, in Indonesia.

Indonesia became the first market in Southeast Asia for Infiniti with the launch of three models and a dedicated showroom on Jl. TB Simatupang on Wednesday evening. The models launched were the Infiniti G coupe, the M luxury performance sedan and the FX crossover.

The Jakarta Post and several other journalists talked with PT Nissan Motor Indonesia president
director Takayuki Kimura and NMC’s Infiniti business unit marketing and sales operations manager Lisa Kaylor on Infiniti’s business plan in Indonesia and other issues. Following are the excerpts from the interview.

Question: What is the effect of the recent earthquake and tsunami on Nissan’s operations in Japan?

Answer (Kimura): Nissan Japan is still calculating the impacts including on parts suppliers. We are still investigating the situation carefully; it will take a lot of time. We can confirm there will be no problem in continuing local production in March but there may be some problems for production next month.

As for Nissan Livina models, only 15 percent [of it is] imported from Japan — mainly safety-related components and parts such as ABS (anti-lock braking systems) and sophisticated computer systems. The remaining 85 percent comes from ASEAN countries.

Are there contingency plans if the situation gets worse?

I cannot imagine the condition getting worse. Japan is strong enough and the recovery effort has been tremendous.

Why did choose to launch Infiniti now?

It is part of an aggressive plan to increase Infiniti’s global presence. Indonesia is the first of 25 markets where the Infiniti will be introduced from this year until 2013.

Kaylor: It’s a good time to launch. The Infiniti M was launched last year. Had we introduced the Infiniti in Indonesia last year we would not have had the opportunity to introduce the coupe. The Indonesian automotive market is rapidly expanding; the luxury market is no exception. We want to satisfy demand. We expect it to continuously grow especially in the luxury market.

What is your sales target for Indonesia?

We aim to sell 200 cars in fiscal year 2011 and (capture a) 5 percent market share of the premium segment. Currently we already have (sold) between 40 and 50 cars of the three models — or roughly about two months sales.

How do you differentiate Infiniti from other luxury brands?

The term “luxury” is just an entry ticket. We want to differentiate Infiniti by its performance in our own way. We also have the Infiniti design identity wherein each model has its own characteristics. It is a rather different approach than European brands which are more consistent and sometimes look alike.

Who are your target customers?

We are targeting progressive individuals, modern premium people who want to experience a total driving experience. People who want to drive their cars themselves instead of sitting in the back seat.

Indonesian customers are sophisticated customers who know what they want. I believe the target of 200 cars will be easy to reach. Most of the existing sophisticated customers are in the Jakarta area. These customers already have a number of cars in their garages and we want to add or replace one of those cars.

Is there any plan to provide financing plans to customers?

Most of the customers prefer to pay by cash; it is quite common.

Is there any plan to bring the Infiniti Performance Line (IPL) to Indonesia?

We are studying this carefully. The market is not that big and I believe the price has to be not too expensive.

What about diesel engines or hybrid systems?

Not at the moment for diesel engines, as the quality of diesel fuel in Indonesia is still poor. I was quite surprised when BMW launched their diesel-fuel saloon here. They are very brave. But we may have future opportunities. Hybrids are also possible.

Infiniti recently joined the F1. Why?

Kaylor: We do not at the moment have our own F1 team. (It is) not our historical strength. We are supplying a Renault engine to the Red Bull team. The aim of our participation is to increase brand awareness in the markets that organize F1 races.

What are the plans for Nissan brand in Indonesia?

We will this year double the production capacity of Livina from 50,000 to 100,000 per year.

What about the government plan to manufacture a low-cost green car?

We have not prepared anything yet as nothing has been confirmed so far. The government should confirm its requirements as soon as possible.

Won’t it be too late as other car manufacturers have prepared their own designs?

Based on our experience, Nissan was the first to answer Thailand’s requirement for such a car with the Nissan March. But the Indonesian government’s requirement are very different. So don’t underestimate Nissan.