Audi targets 80 percent sales growth, launches A5

PT Garuda Mataram Motor (GMM), the authorized dealer of German car brand Audi, targets to increase its sales by roughly 70 percent this year to 600 units in a bid to strengthen its position in the growing luxury car market in Indonesia.

GMM president director Andrew Nasuri said the target was in line with the quota set by the brand’s principal, Audi AG.

Actual demand, he said, could be well over 700 units.

“Last year’s demand was up to 400 units, but we could only supply 350 units. As for this year, we have asked the principal to increase the quota for Indonesia,” Andrew announced during the launch of the new Audi A5 Coupe on Wednesday.

Andrew said the company’s optimistic sales forecast was based on last year’s performance, which saw sales growth of 100 percent from 2010, driven by strong demand for the Audi A4 (42 percent of total sales) and the Audi A6 (21 percent).

The Audi A4 and the Audi A6 are assembled at Indomobil’s plant in Cakung, East Jakarta. Other types directly produced by Germany’s Volkswagen Group are imported in the form of completely built units (CBU).

Andrew is also optimistic that the two-door Audi A5 Coupe will be well received by the Indonesian market.

“The market for coupes in Indonesia is normally very small because most luxury car owners use drivers. But I think we are entering a new era, and we are optimistic that this car will tap into that niche little market,” said Andrew.

According to GMM general manager Imelda Muhidin, the company only plans to sell 20 new A5s, with 10 of those already attracting buyers before Wednesday’s launch.

“The principal will supply four to five A5s every two or three months this year. We have asked them to supply more than 20 units, but of course it’s up to the principal,” said Imelda.

In order to overcome the tight competition in the luxury car market, last year Audi introduced three years free after sales service and will open a new exclusive outlet in South Jakarta this year.

Audi currently has two exclusive dealers located on Jakarta’s Jl. MT Haryono and in Pacific Place, and six other partner outlets with its parent company Volkswagen in Jakarta, Medan, Bandung, Semarang and Surabaya.

Under the management of Volkswagen Group in Germany, Audi entered the Indonesian market in 1997 through Garuda Mataram Motor, a subsidiary of the Indomobil Group. “For the luxury car market, there is this growing specific segment in our country that has strong purchasing power. With this growing upper class, we can’t stop introducing new products made for this specific market,” said Soebronto Laras, president director of Indomobil, who was also present at the launch. (nad)