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General Motors banks on SUVs to regain RI’s buyers’ appetite
After years of dwindled earnings, United States automotive giant General Motors (GM) is trying to make a comeback by mainly focusing on Indonesia’s sports utility vehicle (SUV) market
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fter years of dwindled earnings, United States automotive giant General Motors (GM) is trying to make a comeback by mainly focusing on Indonesia’s sports utility vehicle (SUV) market.
As people’s habits and lifestyles are changing, the SUV segment surged rapidly in the country, with its sales increase outpacing that of multi-purpose vehicles (MPVs) last year.
“The SUV segment is growing in Indonesia. The market almost doubled its volume in 2016 from 2015 […] Families are becoming smaller, so people are moving from vans to SUVs,” GM Indonesia president director Gaurav Gupta told The Jakarta Post.
He also attributed the bright prospect in the SUV segment to massive infrastructure development across the country, which contributed to better driving experiences for users of the model.
To further penetrate this market, GM unveiled three new products on Thursday, two SUVs, the Chevrolet Trailblazer and Chevrolet Trax, as well as a fuel-efficient car called the Chevrolet Spark.
Chevrolet Trailblazers are available in two trims, LT and LTZ, for Rp 430 million (US$32,250) and Rp 455 million, respectively.
The Chevrolet Trax, which is also offered in two varieties, is sold at Rp 279 million and Rp 305
million. Meanwhile, the Chevrolet Spark is priced at Rp 196 million.
“We are looking to double our portfolio. We are aiming for better growth than the industry,” Gupta said.
Car sales, a key indicator of consumption in Southeast Asia’s largest economy, only rose by 4.7 percent to 1.06 million in 2016 from the previous year, according to data from the Indonesian Automotive Manufacturers Association (Gaikindo).
The competition in the SUV segment has intensified as Japanese automakers, who already have a strong foothold in the Indonesian automarket, such as Toyota and Honda, have also rolled out new models to tap into this lucrative segment. In the premium market, Mercedes and BMW have also applied a similar strategy.
Despite the bleak outlook, GM is optimistic about the future of the auto industry in Indonesia, banking on better macroeconomic conditions.
It believes that with its huge population of more than 250 million, continuous economic growth of about 5 percent, a stable exchange rate and a high credit surge will enable Indonesia to remain the most attractive auto market in the world.
To challenge Japanese automakers with strong brand images in the Indonesian market, GM would focus on satisfying its niche customers who were looking for something ‘different’, the product planning and program manager of GM Indonesia, Rowan S. Suhendy, said.
For instance, GM introduced the seven-seater all new Trailblazer, developed by GM Brasil and GM Thailand, which is equipped with distinct features, such as a remote engine start.
Currently, GM offers five product line-ups for the Indonesian market, Chevrolet Trax, Captiva, Spark, Trailblazer and Orlando.
The firm sold 1,795 units from January to November 2016, a decrease of 146 percent compared to the same period in 2015, according to Gaikindo data as quoted by tempo.co.
GM earlier closed down its factory in Bekasi, West Java, after its MPV, Chevrolet Spin, failed to lure local buyers amid head-to-head rivalry with Japanese automakers. The model, which was popular in Brazil, relied heavily on imported components, making its finished output expensive.
