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T General Motors Indonesia plans to market its Chevrolet sedans to taxi operators in Indonesia’s eastern regions to avoid competition in the larger cities in Java.

Company spokesperson Augusta Sirait said on Friday that the taxi-supply business is a “tough segment” in the domestic auto market, as it is “a large and interesting segment, with huge potential that attracts various car distributors engaged in fiercely tight competition”.

He didn’t share any details of when the plan would be enacted, only citing Bali as one of the most
viable options in the plan.

“There are many [American] tourists in Bali, for whom the Chevrolet brand will be the one they’ll be most familiar with,” he told The Jakarta Post in a phone interview.

He said that GM Indonesia currently supplied taxis to three companies: Taxiku, Indah Family and Cipaganti Taxi.

The first two are based in Jakarta. Cipaganti is based in Bandung and also operates widely in Jakarta.

Augusta said that Chevrolet marketed its Lova sedans for taxi use.

“Lovas are essentially downgraded from the Kalos sedans [marketed for general consumers]. Differences can be found in wheels and suspension systems, among other areas,” he said.

He said that the downgrading process was done according to the demands of the taxi operators.

“Our representatives will talk with theirs to find out what they want for their taxis. This will, in turn, determine how much can be cut from the normal price,” he said, adding that the price for Kalos for general consumers is Rp 160 million (US$18,720).

“[Taxi operators] may decide how much downgrading they want. However, they still have to comply with our safety and comfort standards,” he said.

Transportation firm Blue Bird Group, which operates Blue Bird and Pusaka taxis, shares this sentiment, saying that vehicle safety and reliability are still the two most important elements in deciding which brand to use for their taxis.

“The downgrading will not affect passengers’ safety or comfort,” Blue Bird Group spokesman Teguh Wijayanto told the Post over the phone on Friday.

He cited the change from power windows to standard windows and cast wheels to standard wheels, as well as the removal of a built-in audio system, as examples of downgrading.

Blue Bird currently operates 17,000 taxis in eight regions across Indonesia, including Jakarta, Ban-dung, Surabaya, Bali and Manado.

The company uses Toyota Limo, a taxi version of Toyota Vios.

“We aim to add an additional 2,000 new taxis this year,” Teguh said, adding that the firm has realized more than half of its revenue target as of August.

The company also operates the Silver Bird premium taxis, which use Mercedes Benz E-series and C-series sedans, as well as Toyota Vellfire vans, for its armada.

“We don’t downgrade [premium taxis], as they serve the premium market,” he said.

Separately, South Korean carmaker Hyundai markets its premium Sonata sedans for executive taxis, said Jongkie Sugijarto, chairman of PT Hyundai Mobil Indonesia (HMI).

The company has previously supplied standard taxis, but has no plans to supply them again for the time being, he added.

Both Teguh and Augusta agreed that taxi companies prioritized engine durability, while Mukiat Sutikno, vice president of HMI, added that low operational costs and competitive pricing were also considered. (mim)