ublicly listed diversified conglomerate Astra International, whose subsidiary PT Tjahja Sakti Motor (TSM) is the sole distributor of Peugeot in Indonesia, has shared its pessimism that the French car manufacturer’s plan to build a production facility in Southeast Asia would increase its sales in the domestic market, due to different market preferences.
As reported by Bloomberg in September, PSA Group, which makes Peugeot and Citroen cars, plans to build a factory in Southeast Asia, seeking local partnerships in Indonesia, Thailand, and Malaysia.
Astra International investor relations head Tira Ardianti said with a factory in Southeast Asia, Peugeot’s prices could be much more competitive, but it would not be enough to compete with Japanese carmakers, which dominate car sales in Indonesia.
“Indonesians love big cars, such as MPV [multipurpose vehicles] and SUV [sports utility vehicles], but Peugeot's lineup is mostly sedans,” Tira said during an Astra International workshop in Bogor on Friday.
She added that it would take time for Peugeot to expand its share in the local market, as Indonesian buyers were brand fanatics and car sales were still relatively low due to the weak economy.
From January to September, Astra sold 28 Peugeot cars, a tiny fraction of the sales of the group’s best-selling brand, Toyota, which hit 275,071 cars during the same period. (hwa)
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