Indonesia: more auto manufacturers gather for
production of seven and eight-seat MPVs
Production of VW Touran and Honda Freed start, while production of Hyundai H-1 is on the way
Sep. 24, 2009 No.810
Executive Summary
In Indonesia, the 2008 auto production and new vehicle sales rapidly expanded to more than 600K vehicles, a new record. Global economic slump and weak Rupiah have eclipsed the country's demand for automobiles since the end of 2008. Although the production and new vehicle sales are on the horizon of recovery, the 2009 demand will weaken by 25% over the previous year to 450K according to the forecast by GAIKINDO (Gabungan Industri Kendaraan Bermotor Indonesia - the Association of Indonesia Automotive Industries).
The Indonesian annual auto production capacity is 800K scale. The GAIKINDO expects the Indonesian auto market to expand to the one million scale in 2015, and accordingly, the production capacity will expand. Geely Automobile and Beiqi Foton Motor announced the plan to build their plants so far.
Seven and eight-seat MPVs are overwhelming in the Indonesian new vehicle market. Of 600K new vehicle sales, 230K were MPVs. Toyota, Daihatsu, Suzuki and Nissan produce MPVs in the country. Daihatsu added the new Luxio in February 2009. Toyota, Daihatsu and Suzuki export MPVs as well.
New MPVs have hit the Indonesian auto market more than ever. VW began consignment production of Touran, a MPV, in May 2009. Honda added the Freed, a MPV, to the production in Indonesia June 2009. Hyundai will launch the MPV H-1 in the first quarter of 2010. Daimler is expected to additionally produce a new MPV model. Of them, Honda, Hyundai and Daimler are planning to export the MPVs within the ASEAN region.
In addition, two Chinese auto manufacturers of Beiqi Foton and Geely tied up with Astra International respectively. Beiqi Foton has consigned the production of microbuses to Astra since January 2009. Geely will begin to consign the production of passenger cars to Astra from the fall of 2009.
2008 new vehicle sales reach record 604K, while forecasting them 450K in 2009
In Indonesia, the 2008 new vehicle sales jumped to 604K, up 170K equal to 39.3% over 2007. The auto production mushroomed by 189K equal to 45.9% to 601K. Both refreshed the 2005 records respectively.
The auto-loan interest rate had been raised and debtors had been screened more strictly than ever since November 2008. These depressed the sales of December to below 40K for the first time in one year, and sales remained sluggish in the first half of 2009. The 2009 sales will stay 350K to 450K according to the GAIKINDO's forecast as of the end of 2008.
Even in the gloomy pictures, the auto industry showed some signs of recovery in spring 2009. The sales picked up in the January-July period of 2009, and the drop in sales over 2008 narrowed to 28.7%. The GAIKINDO revised the 2009 sales forecast upward to 450K in the announcement in June 2008.
Auto production and new vehicle sales in Indonesia |
(units) |
|
|
2004 |
2005 |
2006 |
2007 |
2008 |
|
Production |
422,099 |
500,710 |
296,008 |
411,638 |
600,628 |
|
New Vehicle Sales |
483,148 |
533,917 |
318,904 |
433,341 |
603,774 |
|
Export |
9,572 |
17,805 |
30,974 |
60,267 |
100,982 |
|
Note: |
The GAIKINDO's auto industry data in the January-July period of 2009 says that Indonesia had a production of 244,534, new vehicle sales of 250,449 and export (CBU + CKD) of 59,579. |
Indonesia: New vehicle sales by brand on a shipping basis |
(units) |
|
|
2004 |
2005 |
2006 |
2007 |
2008 |
Jan.-Jul.2008 |
Jan.-Jul.2009 |
|
Toyota |
141,953 |
182,767 |
123,703 |
150,677 |
212,150 |
119,232 |
96,934 |
|
Daihatsu |
47,623 |
48,762 |
33,021 |
51,957 |
78,044 |
42,437 |
40,304 |
|
Isuzu |
23,452 |
25,010 |
16,605 |
18,270 |
25,325 |
15,184 |
8,579 |
|
Nissan Diesel |
1,693 |
1,867 |
1,380 |
2,115 |
2,389 |
1,601 |
544 |
|
Peugeot |
821 |
486 |
118 |
85 |
59 |
40 |
22 |
|
Honda |
46,500 |
53,750 |
30,000 |
40,000 |
52,500 |
31,267 |
18,801 |
|
Mitsubishi Motors |
89,590 |
89,158 |
47,023 |
61,547 |
87,524 |
52,135 |
31,804 |
|
Suzuki |
82,241 |
87,274 |
44,760 |
58,095 |
73,066 |
46,532 |
24,706 |
|
Others |
49,422 |
44,836 |
22,273 |
51,703 |
76,748 |
45,073 |
30,436 |
|
Total |
483,295 |
533,910 |
318,883 |
434,449 |
607,805 |
353,501 |
252,130 |
| Note 1. |
The data show the total sales of passenger cars and commercial vehicles. |
|
| 2. | According to GAIKINDO's data, Nissan vehicles included in Others are as follows: 12,201 in 2004, 10,551 in 2005, 4,006 in 2006, 19,030 in 2007 and 31,879 in 2008. | |
| 3. | Mitsubishi Motors include the Mitsubishi Fuso vehicles. |
Two Chinese manufacturers to add production capacity with their future plants to the current 800K scale annual production in Indonesia
Indonesia has an annual production capacity of 809K (except the capacities of the GM and Proton plants which have been shut down). The production bases staked by Japanese auto manufacturers have a production capacity of 623K among them.
The GAIKINDO expects the Indonesian auto market to grow to one-million scale in 2015, and accordingly, the country's automotive production capacity will expand. Geely and Beiqi Foton expressed their intention to build their plants respectively in Indonesia. In addition, GM might resume the production at its plant.
Indonesia: Vehicle production bases of major auto manufacturers
|
|
Ownership |
Assembly |
Annual |
Production model |
|
Toyota Motor Manufacturing Indonesia |
Toyota 95% |
Karawang |
100 |
Toyota Kijang Innova, Fortuner |
|
Sugity Creatives |
Toyota Auto Body 88.52% |
Bekasi |
10 |
Toyota Dyna |
|
Astra Daihatsu Motor |
Daihatsu 61.75% |
Sunter |
211 |
Daihatsu Terios/Toyota Rush (based on the Bego), |
|
Hino Motors Manufacturing Indonesia |
Hino 90% |
Purwakarta |
10 |
Hino Dutro, Super Ranger, Jumbo Ranger, Large buses chassis |
|
Nissan Motor Indonesia |
Nissan 83.3% |
Purwakarta |
40 |
Nissan Grand Livina, Livina, |
|
Astra Nissan Diesel Indonesia |
Nissan Diesel 12.5% |
Bekasi |
2 |
Large trucks, Bus chassis |
|
Honda Prospect Motor |
Honda 51% |
Karawang |
50 |
Honda Jazz (Fit), CR-V, Freed |
|
Suzuki Indomobil Motor |
Suzuki 90% |
Bekasi |
125 |
Suzuki Swift, SX4, SX4 Sedan, |
|
Isuzu Astra Motor Indonesia |
Isuzu 44.94% |
Jakarta |
75 |
Isuzu Panther/Chevrolet Tavera, |
|
Mercedes-Benz Indonesia |
Daimler 89.21% |
Bogor |
20 |
M-Benz C-Class, E-Class, S-Class, |
|
General Motors Indonesia |
GM 100% |
Bekasi |
(20) |
(The plant stopped operation in March 2005) |
|
Proton Cikarang Indonesia |
Proton 100% |
Cikarang |
(7) |
(Auto production is halted) |
|
Krama Yudha Ratu Motor |
Krama Yudha 80% |
Jakarta |
70 |
Mitsubishi Fuso Colt Diesel (Canter), FM/FN series (Fighter) |
|
Mitsubishi Colt L300 (based on the Delica), |
||||
|
Hyundai Indonesia Motor |
Bimantara Group 100% |
Bekasi |
11 |
Hyundai Avega (Verna hatchback) |
|
Kostramas Jaya |
Korindo Group |
Balaraja |
7 |
Hyundai trucks (over GVW 8.5t),, Large buses |
|
Gaya Motor |
Astra 100% |
Sunter |
60 |
BMW 3-Series, 5-Series, Futon View |
|
National Assemblers |
Indomobile Group 100% |
Bekasi |
18 |
Chery QQ, Chery Tiggo, |
|
The total annual production is 809K |
||||
| Note 1. |
The ownership ratio shows the stake taken by each auto manufacturer. |
|
| 2. | Isuzu Astra Motor Indonesia is the former Pantja Motor. Proton Cikarang Indonesia was Proton Tracoma Motors. | |
| 3. | The five manufacturers in blue in the lower line are local capital manufacturers. Gaya Motor and National Assemblers are the assemblers of vehicles on a commission basis. Krama Yuldha Ratu Motor is the production base of Mitsubishi Fuso and Mitsubishi Motors; although neither of them takes direct stake in Krama (instead, they take stakes in local auto dealers and the auto parts suppliers which supply auto parts for the vehicles produced in Indonesia). | |
| 4. | GM planned to spend 60 million US dollars to resume the operation of the Bekasi Plant by the beginning of 2009. It announced, however, to delay the plan to 2011. | |
| 5. | Proton Cikarang Indonesia halts auto production, while it paints imported Proton Wira, a taxi model. |
Toyota and Daihatsu produce 302K vehicles in 2008, while their export jumped to 84K units
The production by brand in 2008 is as follows. Production of Toyota and Daihatsu brand vehicles aggregated to 302K, up 79K over 2007. The production overreached 300K units first time ever. Suzuki, which produces MPVs, also expanded the production by 38K to 98K, and Nissan by 12K to 30K units. Production of Mitsubishi Motors, Honda and Hino also mushroomed.
In the 2008 export of finished vehicles, three brands of Toyota, Suzuki and Daihatsu showed a considerable growth to 101K, up 41K over the previous year (the total export of Toyota and Daihatsu brand vehicles was up by 38K to 84K).
Indonesia's unit production and export by brand |
(units) |
|
|
Production |
Export |
||||||
|
2004 |
2005 |
2006 |
2007 |
2008 |
2006 |
2007 |
2008 |
|
|
Toyota |
130,440 |
169,178 |
122,229 |
172,436 |
226,001 |
16,363 |
46,167 |
58,285 |
|
Suzuki |
81,784 |
103,830 |
51,878 |
60,013 |
98,314 |
14,091 |
14,014 |
25,852 |
|
Mitsubishi |
86,823 |
86,277 |
41,982 |
48,161 |
77,906 |
4 |
4 |
- |
|
Daihatsu |
46,491 |
48,729 |
33,065 |
50,369 |
76,244 |
- |
- |
16,845 |
|
Honda |
27,520 |
39,597 |
21,034 |
29,465 |
43,672 |
480 |
- |
- |
|
Nissan |
12,205 |
10,759 |
3,376 |
18,518 |
30,310 |
- |
- |
- |
|
Isuzu |
22,296 |
24,558 |
15,214 |
17,534 |
24,450 |
- |
- |
- |
|
Hino |
6,301 |
7,229 |
3,231 |
8,192 |
14,350 |
- |
- |
- |
|
Hyundai |
2,012 |
4,646 |
1,136 |
3,074 |
2,923 |
- |
- |
- |
|
Mercedes Benz |
2,248 |
2,229 |
454 |
1,305 |
2,802 |
- |
- |
- |
|
Nissan Diesel |
1,608 |
1,926 |
1,638 |
1,861 |
2,250 |
- |
- |
- |
|
BMW |
1,310 |
1,084 |
771 |
10 |
852 |
36 |
2 |
- |
|
Chery |
- |
- |
- |
700 |
554 |
- |
80 |
- |
|
Mazda |
35 |
121 |
- |
- |
- |
- |
- |
- |
|
Peugeot |
553 |
288 |
- |
- |
- |
- |
- |
- |
|
Chevrolet |
473 |
259 |
- |
- |
- |
- |
- |
- |
|
Total |
422,099 |
500,710 |
296,008 |
411,638 |
600,628 |
30,974 |
60,267 |
100,982 |
Source: GAIKINDO
Note: Mitsubishi's data are the total of Mitsubishi Motors and Mitsubishi Fuso.
MPV producing Toyota, Daihatsu, Suzuki and Nissan, enjoy brisk sales
Indonesia refreshed the record of new vehicle sales to 604,000 in 2008, of which sales of seven or eight-seat MPVs expanded to 230K, up 60K over 2007.
As to MPVs, Toyota produces the Kijang Innova, Daihatsu the Toyota Avanza, Daihatsu Xenia and the new Luxio launched in February 2009, Suzuki the APV, and Nissan the Grand Livina.
These MPVs are in great demand. In the 2008 sales by model, the Toyota Avanza won the first place, the Toyota Kijiang Innova the second, the Daihatsu Xenia the fourth, and the Suzuki APV the ninth.
| Indonesia: Top 10 models in the 2008 sales | (units) |
|
|
||||||||||||||||||||||||||||||||||||
| Note 1. |
Mitsubishi FE Colt Diesel is the Canter of Mitsubishi Fuso. |
|
| 2. | The sales of the top 10 models reached 351,541 equal to 58.2% of the new vehicle sales of 603,774. | |
| 3. | Of the sales of the Nissan Livina Series, 16,700 were the Grand Livina, a MPV. |
Daihatsu adds the new MPV model Luxio to the production at Astra Daihatsu
|
Daihatsu had developed the Luxio, a new MPV, at Astra Daihatsu Motor, Daihatsu's subsidiary. Daihatsu began to mass-produce the Luxio for the Indonesian market in February, and put the model into the market in March 2009. Daihatsu sets a monthly sales target at 1,000 units (the plan for export is unknown). The Luxio is a three-row and eight-seat MPV based on the Grand Max, a commercial van, and equipped with 1.5-liter engine. Daihatsu purchases 78% of auto parts in Indonesia, and 87% in the ASEAN region. |
| Note 1. |
At Astra Daihatsu Motor, Daihatsu produces the Xenia, a MPV, (OEM-supplied to Toyota as Avanza), the Terios, a SUV (based on the Bego, and OEM-supplied to Toyota as Rush), and the Gran Max, a commercial van (OEM-supplied to Toyota as the Lite Ace/Town Ace, the Japan market models). |
|
| 2. | According to the Daihatsu's business in the January-May period of 2009 released by the GAIKINDO, Daihatsu had a production of 28,971, new vehicle sales of 29,340, and an export of 6,672 (CBU). |
Toyota produces Innova, a MPV, and Fortuner, a SUV
| At Toyota Motor Manufacturing Indonesia, Toyota produces the Kijiang Innova, a MPV (named as Innova for export), and the Fortuner, a SUV. The Innova and the Fortuner are exported mostly to Middle East and gulf countries, such as Saudi Arabia and UAE. In September 2009, Toyota added the cheapest model to the Kijang Innova (10% cheaper than the current cheapest model). |
| Note 1. |
As to the Kijiang Innova, Toyota sold 51K in Indonesia in 2008. It won the second place in the sales by model (the first place was the Avanza, OEM-supplied to Toyota by Daihatsu; 86K were sold). |
|
| 2. | According to the Toyota's business in the January-May period of 2009 released by the GAIKINDO, Toyota had a production of 67,636, new vehicle sales of 62,801 and an export of (CBU + CKD) 29,978. |
Nissan's production expands to more than 30K units in 2008 thanks to the Livina Series
| Nissan produces the Livina Series, the X-Trail and the Serena at Nissan Motor Indonesia, a Nissan's subsidiary. Thanks to the production of the Livina Series since 2007, the production expanded to 30,310 in 2008 (it was 3,376 in 2006 and 18,518 in 2007). |
| Note 1. |
The 2008 sales of the Livina Series were 25,200 units, of which sales of the Grand Livina, a MPV, reached 16,700 units. |
|
| 2. | According to the Nissan's business in the January-May period of 2009 released by GAIKINDO, Nissan had a production of 6,492 units and new vehicle sales of 7,289 units (but no exports). |
Suzuki adds the Luxury, a high end model, to the APV, a MPV
| Suzuki produces the Carry and the APV at Suzuki Indomobil Motor, a Suzuki's subsidiary. In March 2009, it added the Luxury, a high-end class APV, to the APV. Suzuki's 2008 sales in Indonesia were as follows: 24,263 Carry (vans and pickups) and 19,695 APV. The APV is OEM-supplied to Mitsubishi Motors under the name of Mitsubishi Maven. |
| Note 1. |
Suzuki changed the name of its Indonesian subsidiary from P.T. Indomobil Suzuki International to P.T. Suzuki Indomobil Motor at the end of 2008. |
|
| 2. | According to the Suzuki's business in the January-May period of 2009 released by the GAIKINDO, Suzuki had a production of 18,633 units and new vehicle sales of 16,977 units and an export (CBU + CKD) of 566 units. |
Honda to resume production of MPVs, and Hyundai and Daimler plan to produce MPVs
Honda, Hyundai and Daimler will add production of MPVs in Indonesia respectively, while planning to export them to the ASEAN region.
Honda has produced the Freed, a MPV, since June 2009. It will start exporting the MPV to the ASEAN region within 2009.
Hyundai plans to start production of the H-1, a MPV, in the first quarter of 2010. Daimler will strengthen the plant to produce a new model MPV. Hyundai and Daimler respectively plan to export MPVs to the ASEAN region.
Honda adds the Freed, a MPV, to production in Indonesia, planning to export it to the ASEAN region
| Honda began to mass-produce the Freed equipped with a 1.5-liter engine at the Karawang Plant of Honda Prospect Motor in June 2009. It sets the 2009 sales target at 6,000. The Freed is a three-row seven-seat MPV. Indonesia is the first choice for Honda to produce the MPV overseas (it was released in May 2008 in Japan). Honda plans to export it to the ASEAN region at around the end of 2009. |
| Note 1. |
Honda had produced the Stream, a MPV, at the Indonesian Plant. It stopped the production in 2007 (the Stream and the Civic use the same platform, and the Freed and the Fit as well). Honda's 2008 production and sales ballooned thanks to brisk sales of the Jazz (Fit) fully remodeled in June 2008. |
|
| 2. | According to the Honda's business in the January-May period of 2009 released by GAIKINDO, Honda had a production of 11,285 units and new vehicle sales of 12,624 units (no export of CBU and CKD). |
Hyundai to produce the H-1, a MPV, from 2010, planning to export it to the ASEAN region
| Hyundai and Hyundai Indonesia Motor, an Indonesian local capital company, signed the technical licensing agreement with respect to the production of the H-1, a MPV, in March 2009. The MPV is imported as a finished vehicle. Hyundai plans to produce the model at an initial monthly production of 250 units in the first quarter of 2010. Hyundai will purchase not less than 40% of auto parts in the ASEAN region. The MPV will be exported to ASEAN countries. |
|
Note: |
Hyundai Indonesia Motor completed updating the painting facilities of the assembling plant in Bekasi, Pondok Ungu, to produce the H-1. |
Daimler plans to produce the M-Benz brand MPV
| Daimler plans to additionally produce a high end MPV under the M-Benz brand in Indonesia. It has not announced when and at what scale to start the production yet. It will spend another 200 billion Rupiah (18 million dollars) for the Bogor Plant according to the plan to make it as the supply base of the MPV to the ASEAN region. |
Daimler plans to export M-Benz brand busses to the ASEAN region
| M-Benz Indonesia, a Daimler's subsidiary, will raise the local content from 30% to 40%, planning to export busses to the ASEAN region. The M-Benz brand bus gains the second largest share in Indonesia following the Hino brand bus. |
Assembling of the new E-Class begins
| Daimler will begin to assemble the new E-Class in September 2009 (the finished vehicles have been imported since August). Daimler spent another five million USD associated with the start of production. As to the new E-Class, Daimler set the 2009 sales target at 400, of which one fourth is locally produced. In Jakarta, it is priced at 1,059 million to1,379 million Rupiah for the imported vehicles and 800 million to 1,000 million Rupiah for Indonesia-made vehicles. |
VW, Geely and Beiqi Foton Motor in China begin consignment production, while Peugeot plans to re-consign its production
What comes to European and American auto manufacturers, VW tied up with the Indomobil Group in 2009, and began consignment production of the Touran, a MPV. Peugeot is said that it is in talks with Astra International regarding the resumption of the consignment production. GM announced that it would delay the initial schedule to resume its plant to 2011 from the beginning of 2009.
As to Chinese manufacturers, Chery Automobile has consigned the production in Indonesia since 2006. Beiqi Foton Motor tied up with Astra International and began to consign the production to Astra in January 2009. Geely tied up with Astra International also, planning to begin consignment production in the fall of 2009. Geely and Beiqi Foton announced the plan to build their own plants respectively in Indonesia.
Tata Motors, an Indian company, announced that it would participate in the Indonesian market. Tata is expected to produce vehicles in Indonesia.
VW ties up with Indomobil Group, and begins consignment production of the Touran
| In May 2009, VW tied up with the Indomobil Group. National Assemblers of the Indomobil Group began to do CKD assembling of the VW Touran equipped with a 1.4-liter engine in May 2009 (the vehicle was released in June). The initial annual production is planned at 1,000. The local content is not more than 10%. VW will gradually increase the number of production models, planning to expand the annual production scale from 20,000 to 40,000. It is also planning to assemble the Skoda and Audi brand vehicles. |
|
Note: |
Garuda Mataram Motor of the Indomobil Group, a distributor of imported VW vehicles, sells the Touran. |
Peugeot considers resuming passenger car production with Astra International
|
Astra International, which imports and sells Peugeot vehicles, disclosed that it had talks with Peugeot with respect to resuming the consignment production, as the Indonesian market registered tone of recovery. Peugeot is expected to resume the production with the 207 or the 308 in 2010 or 2011. |
|
Note: |
Peugeot halted CKD assembling of the 504, 505, 206, 405 and 406 at Gaya Motors owned by Astra International in 2005 because of anemic sales. |
Geely and Beiqi Foton, Chinese auto manufacturers, begin consignment production, considering building their own plants in Indonesia
| The Indonesian government in July 2009 uncovered that two Chinese auto manufacturers consider building their plants in Indonesia, and have already finished the market survey. The Indonesian government did not reveal their names; however, Geely and Beiqi Foton, a commercial vehicle manufacturer, expressed the intention to build their plants as of today. |
Geely plans to establish the sales network in Indonesia and build their plants within three years
| Geely Mobil Indonesia is a distributor in which Geely, a Chinese auto manufacturer, takes majority. The distributor announced in June 2009 that Geely will build a plant in Indonesia within three years. Geely plans to export the products to the ASEN region, Australia and New Zealand. |
| Geely will contract out the production to Gaya Motor of the Astra International for three years until the plant goes online. It is planned to produce the sedan and hatchback MK, and the sedan CK from the fall of 2009 (either of the models will be equipped with 1.5-liter engine). Geely aims to locally purchase 20% auto parts in Indonesia. The 2010 sales target in Indonesia is set at 2,000 units. |
|
Note: |
Geely and Gaya Motor agreed to CKD assembling of the Geely CK-1 in 2007; however, Geely failed to establish the sales network in Indonesia, and the start of the assembling was delayed. Geely plans to establish its sales network centering on Geely Mobil Indonesia, in which it takes majority. |
Beiqi Foton begins consignment production of microbuses, while expressing the intention to build its plant
| Beiqi Foton Motor, a Chinese auto manufacturer, presented the Foton View XLC in the Indonesian International Motor Show in July 2009. It started to sell the vehicle in Indonesia. The Foton View is a microbus with 11 or 14 seats and equipped with a 2.8-liter engine (in Indonesia, they are classified as a MPV). |
| Beiqi Foton planned to consign the CKD assembling of the Foton View to Gaya Motor to build a hundred units from January 2009 and sell them from the beginning of 2009. The release was unfortunately delayed due to slump in demand. Beiqi Foton expressed the intention to build a plant in Indonesia and make it as a supply base to the Asia-Pacific markets, in conjunction with the release of the microbus in July (details are unknown). |
Chery Automobile strengthens the production capabilities of the Geely Tiggo, a SUV
| Chery Automobil has consigned the production to National Assemblers since 2006. It produces the QQ and the Tiggo in Indonesia. Unicor Prima Motor, a Chery's Indonesian distributor, announced that it would spend about nine billion rupiah in 2009 to raise the Chery brand awareness. Chery will spend more than a half of the money to update the production facilities for the Tiggo, a SUV, and spending the rest to strengthen the sales organization. |
Tata Motors starts business feasibility survey to make inroads to Indonesian market
| Tata Motors, an Indian auto manufacturer, started the business feasibility survey to make inroads into the Indonesian market in July 2009. It will take three to six months. It is expected to import and sell finished vehicles, while it is said that Tata will possibly manufacture the products locally. |
