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BMW Indonesia optimistic on growth prospects
The Indonesian unit of German automaker BMW is confident it will see rising sales despite the industry currently suffering from weak demand.
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The automotive industry and car ownership in Indonesia have seen fast growth over the past decade, but are currently suffering from weakening demand. (-/-)
The Indonesian unit of German automaker BMW is confident it will see rising sales despite the industry currently suffering from weak demand.
BMW Indonesia president director Karen Lim said she was keen to continue the company’s positive performance from last year, when the company saw sales increase by 5.7 percent to 3,638 vehicles.
“We never disclose a specific target for automotive sales, but yes, we believe we will proceed with further growth,” she expressed the company’s expectations.
In the first quarter of 2016, nationwide car sales decreased by 5.4 percent to 267,228 units from 282,344 during the same period last year, according to a data from the Indonesian Automotive Association (Gaikindo).
Despite the weakening industry performance, the company remains hopeful, since the government estimates overall economic growth of 5.3 percent this year, which is expected to spur automotive demand.
“Economic growth of 5.3 percent this year will restore the people’s purchasing power,” BMW Indonesia corporate communications head Jodie O’Tania said during the launch of the new BMW X1 in Jakarta on Wednesday.
BMW showcased two variants of the locally assembled X1, sDrive18i and sDrive18i xLine, costing Rp 619 million (US$46,643) and Rp 659 million respectively.
O’Tania said the X1 launch was part of the company’s strategy to increase sales by targeting young middle-upper class buyers. She said the car was designed with the latest compact technology and was smartphone-friendly, aiming directly for the middle-up market.
The launch proves that BMW is sticking to its strategy based on luxury cars, which still account for only 1 percent of the Indonesian auto market. Among the reasons cited by the company for still manufacturing expensive cars is that the race is less competitive than that for middle-class automotives.
“There is still a lot of room to explore in the luxury car segment, such as technical features and interior design,” O’Tania said.
Aside from the X1, BMW Indonesia assembles its cars – the X3, X5, as well as the 3 and 5 series – in partnership with PT Gaya Motor, a subsidiary of automotive giant PT Astra International, where BMW assembles ready-built parts from Germany and the US at a rate of 12 cars per day or around 2,400 per year. (adt/dmr)
