Toyota launched the second-generation Toyota Alphard, a luxury multipurpose vehicle (MPV), focusing on the upper class Indonesian car market, in Jakarta on Wednesday.

"This is the type of car for people with drivers because it offers comfortable passenger seats with plenty of space," said Johnny Darmawan, president director of Indonesia's authorized Toyota dealer, PT Toyota-Astra Motor.

The vehicle is priced at Rp 1.1 billion.

The supplier has 50 orders on the waiting list, surpassing the initial target of 30 for 2008. The car will soon also enter other Asian markets and the Middle East.

"We are seeing a stronger demand for cars despite the fuel price rise. So far the market for this luxury MPV is not big, around 200-300 units a year, dominated by two brands, Toyota and Honda," Johnny said.

Other than Honda Odyssey, other premium MPV brands include Hyundai H1, Mercedes Benz Vito, Volkswagen Caravelle and Volkswagen Transporter.

The first generation of Alphard was launched in 2002 but did not enter Indonesia through Toyota official dealers. Independent buyers imported them from Japan, Hong Kong and Saudi Arabia.

The company estimated that more than 1,000 units have reached the streets without sufficient after-sales service.

"When the car is badly damaged, the independent importers lack service capability and access to spare parts. The Toyota system only allows the official technicians or dealers in the designated country to place orders for spare parts.

"Now we will be able to satisfy customers better," Johnny said.

Speaking of a potential reduction in import tax on the price of the car, with the implementation of the economic partnership agreement (EPA) between Indonesia and Japan, Johnny said that the company has built-in a reduction on the current price tag.

"Even if there is a reduction, it will be minimal," he said.

MPVs are one of the most popular type of car in Indonesia, accounting for more than 60 percent of the vehicle market, with sedans, trucks and pickups making up the rest.(mri)

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