Indonesian vehicle sales in 2015 forecast to remain flat at 1.2 million units

Mitsubishi to build plant; GM to close Bekasi Plant and open new JV plant with SAIC

2015/03/11

Summary

Vehicle production and sales in Indonesia In Indonesia, new vehicle sales in 2014 fell to 1.21 million units, down 1.8% from the previous year. Although the country overtook Thailand as the largest auto market in Southeast Asia, its sales were less than last year for the first time in five years due to stagnant economic growth, rupiah's depreciation, high interest rate, and reduced fuel subsidies. Sales of Low Cost Green Car (LCGC)-certified vehicles were strong at 170,000 units while those of the all other segments including the leading multi-purpose vehicles (MPVs) dropped. GAIKINDO forecasts that 2015 sales are expected to remain the same as the 2014 level at 1.2 million units (as of January 2015).

 According to LMC Automotive's medium- and long-term outlook, Indonesia has the highest sales growth potential in Southeast Asia due to its large, growing, and young population, with a fast expanding middle class. Although the country saw stagnant sales in 2014, LMCA forecasts that Indonesian sales are expected to increase by 7 to 9% year-on-year from 2015 to 2018 and will rise to 1,575,165 units in 2018.

 The new Indonesian administration formed in October 2014 will continue the LCGC program that the former administration had introduced. Since the ASEAN Economic Community officially begins in 2015, the government intends to promote domestic automotive industry and expand vehicle exports. As for the fuel subsidy system which was a burden for the government's budget, the new administration reformed the subsidy system to fulfill the election pledge. Effective as of January 2015, the subsidy for gasoline was eliminated while that for diesel was fixed.

 Vehicle production in Indonesia in 2014 increased to a record high of 1.3 million units, up 7.5% from the previous year. Exports of completely built-up vehicles grew by 18.4% year-on-year to 204,000 units. In anticipation of medium- and long-term growth in Indonesia and surrounding countries, a number of automakers are accelerating their moves to make Indonesia a production and export hub in the region. Toyota plans to start operations at a new engine plant in 2016 while Daihatsu is enhancing its development function in Indonesia. Suzuki and Mitsubishi are expected to begin production at new plants in 2015 and 2017, respectively. Among non-Japanese OEMs, GM revealed a plan to build a new joint venture plant together with SAIC Motor (GM also intends to close its existing plant in June 2015). VW is considering construction of a new plant.


Related Reports:
Japanese suppliers in Indonesia: New entries and capacity enhancements (Jun. 2014)



Toyota Group's market share declines to 49% while Honda expands share with Mobilio

Market share in Indonesia (2014) Market share in Indonesia by OEM

 In 2014, Toyota maintained the top position in the Indonesian auto market (excluding heavy-duty commercial vehicles), gaining a 33.7% share, while Daihatsu keeps the second at 14.8%. Toyota Group accounted for 48.5% of the market, down from over 50% in the previous year. The Toyota Vios, a compact sedan designed for emerging markets, and LCGC-certified Toyota Agya and Daihatsu Ayla increased sales. Meanwhile, sales of the Toyota Avanza and Daihatsu Xenia, their leading MPV models, declined by 23-30% year-on-year.

 Despite the stagnant market in 2014, Honda's sales surged and its market share grew by 5.3 percentage points to 13.5%. The company's sales were boosted by the success of the Mobilio, its low-priced MPV launched in January 2014.

 Japanese OEMs gained more than 90% share of the Indonesian market in 2014. However, competition with other foreign OEMs is projected to be tougher. Among non-Japanese automakers, GM plans to build a new plant jointly with SAIC Motor to build low-priced MPVs under the Wuling brand.

 By category, sales of the LCGC-certified vehicles amounted to 172,000 units in 2014. Their sales accounts for 14.2% of the total market and exceeds GAIKINDO's target of 12%. By model, the Toyota Agya ranked the first at 67,000 units, followed by the Daihatsu Ayla and the Honda Brio Satya. In February 2015, GAIKINDO forecasts that the LCGC sales in 2015 will be unchanged from the previous year at 170,000 units with a market share of 14% if the economic growth rate remains around 5%.

 On the other hand, 2014 sales of "4x2 Type" including the leading MPV segment fell by 13.7% year-on-year. Their market share also declined from 64.0% to 56.3%. In the MPV segment where competition is keener, Honda's Mobilio and Suzuki's Ertiga have been muscling in on the share of Toyota's Avanza and Daihatsu's Xenia.

Indonesia: vehicle production, sales and exports

(Units)
2009 2010 2011 2012 2013 2014 2015 (Forecast)
Production 464,816 702,508 837,948 1,065,557 1,208,211 1,298,523
Sales 483,548 764,710 894,164 1,116,230 1,229,904 1,208,019 1,200,000
Exports CBU 56,669 85,796 107,932 173,368 170,907 202,273
CKD 53,140 55,624 83,709 100,122 105,380 108,580

Source: Association of Indonesian Automotive Industries (GAIKINDO) (Note) The figure for 2015 (Forecast) is the forecast announced by GAIKINDO in January 2015.

 

Indonesia: new vehicle sales by category
(Units)
Category 2011 2012 2013 2014 2014
(YoY) (Market share)
Sedan 25,741 34,221 34,199 21,614 -36.8% 1.8%
4x2 569,768 739,168 787,712 679,856 -13.7% 56.3%
4x4 5,521 7,396 6,416 5,871 -8.5% 0.5%
Bus 3,853 4,472 4,054 3,834 -5.4% 0.3%
Pick up/Truck 270,205 311,609 328,378 313,237 -4.6% 25.9%
Double Cabin 17,815 19,364 17,962 11,487 -36.0% 1.0%
Affordable Energy Saving Cars 51,180 172,120 236.3% 14.2%
Others 1,261
Total 894,164 1,116,230 1,229,901 1,208,019 -1.8% 100.0%

Source: GAIKINDO (Note) Affordable Energy Saving Cars represent LCGC-certified vehicles.

 

 



Indonesian government changes fuel subsidy policy

New administration cuts and eliminates fuel subsidies

Subsidy reduction in November 2014  The new administration established by Mr. Joko Widodo in October 2014 has reduced the fuel subsidies and raised the prices of gasoline and diesel to fulfill his election pledge effective as of November 18, 2014. The gasoline price per liter was increased by 31% from IDR 6,500 to IDR 8,500, while the diesel price was raised by 36% from IDR 5,500 to IDR 7,500. The government had been suffering from the increasing fuel subsidies which strained the country's financial conditions.
Subsidy elimination in January 2015  On January 1, 2015, the Indonesian government announced a new policy for fuel subsidies. The subsidy for gasoline was eliminated while that for diesel was fixed and its price will fluctuate in line with international prices. Owing to lower crude oil prices, the official price of regular gasoline declined from IDR 8,500 in December 2014 to IDR 7,600 in January 2015. The budget earmarked for fuel subsidies will shrink from IDR 276 trillion to IDR 81 trillion. The government intends to apply saved funds for infrastructure improvement and social security.
Impact on auto sales  GAIKINDO predicted that auto sales would decrease by 10 to 15% due to reduction of fuel subsidies. However, the impact is expected to last only for a short period, and auto sales are projected to recover after two months (Outlook as of November 2014).

 

 



Local production by major automakers

 In Indonesia, a number of automakers continue to enhance their production facilities and expand their line-ups of models being produced, in anticipation of medium- and long-term growth of domestic demand and export markets.

 While Toyota has a combined annual production capacity of 250,000 units with its first and second plants, it also uses Toyota Autobody's plant to assemble its vehicles. The company plans to start operations at a new engine plant with an annual production capacity of 216,000 units in early 2016. Daihatsu raised its combined annual production capacity to 530,000 units at its Karawang and Sunter plants within 2014. Facilities for development of products at the Karawang plant were also improved. A new line at the engine plant will go on stream in summer 2015.

 Suzuki intends to begin production at its new plant from 2015 onward. Combined with the existing plant, the company will increase its annual production capacity from 150,000 units to 200,000 units, and eventually to 250,000 units. Suzuki's new powertrain plant has started integrated production of engines and transmissions successively since February 2014. Honda has started operations at its second plant in 2014. As a result, the company set up a combined annual production capacity of 200,000 units with its first and second plants.

 Mitsubishi plans to build a new plant with Mitsubishi Corporation and an Indonesian company. The new plant is scheduled to begin production in 2017 with an annual production capacity of 160,000 units, which can be raised to 240,000 units in the future. Nissan has started operations at its second plant in May 2014. Combined with its first plant, the company's annual production capacity will climb to 250,000 units from current 100,000 units at the point of full-scale production.

 Besides Japanese OEMs, GM and SAIC Motor jointly plan to start operations at a new plant with an annual production capacity of 150,000 units in 2017. The new plant is expected to build low-priced compact MPVs under the Wuling brand. Meanwhile, GM will close its Bekasi plant, which had been reopened in May 2013, due to higher production costs. VW reportedly has a plan to build a new plant in Indonesia by around 2017.

 Indonesia's total annual production capacity is estimated to be 1.4 million units as of the end of 2014. GAIKINDO forecasts that the country's annual capacity will grow to 2.2 million units by 2017 if Mitsubishi and VW build new plants as planned.

Indonesia: major OEMs' production facilities (excluding medium- and heavy-duty commercial vehicles)

OEM Plant Annual production capacity (in thousands of units) Production volume (2014) (in thousands of units) Models being produced
Toyota Karawang 1 130 704 Toyota Kijang Innova, Fortuner
Karawang 2 120 Toyota Etios Valco, Vios, Limo, Yaris
Toyota Autobody 6 Toyota NAV1
Daihatsu Sunter 330 Daihatsu Terios/Toyota Rush, Daihatsu Xenia/Toyota Avanza, Daihatsu Gran Max/Toyota Lite Ace/Hiace/Town Ace, Daihatsu Luxio
Karawang 200 Daihatsu Xenia/Toyota Avanza, Daihatsu Ayla/Toyota Agya
Honda Karawang 1 80 194 Honda Jazz (Fit), CR-V, Freed, Brio Satya, HR-V
Karawang 2 120 Honda Mobilio
Suzuki Tambun 150 137 Suzuki SX4, Grand Vitara (Escudo), Karimun Wagon R, Carry, Mega Carry, Suzuki Ertiga/Mazda VX-1, Suzuki APV/Mitsubishi Maven
Cikarang 0→50(2015) →100 (Plan) - Operations are projected to start from 2015 onward.Suzuki Ertiga and Karimun Wagon R will be produced.
Nissan Purwakarta 1 100→ 250(full-scale production) 93 Nissan Grand Livina, Livina, X-Trail, Serena, March, Juke, Evalia
Purwakarta 2 Datsun Go+ Panca, Go Panca
Mitsubishi Contract production 80 63 Mitsubishi Colt T120, Colt L300, Outlander Sport
New plant 0→160(2017) →250 (Plan) - Operations are planned to start in the first half of 2017.A newly developed compact MPV, Colt L300, and Colt T120 will be produced.
Mazda Contract production n.a. 6 Mazda VX-1
Isuzu Bekasi 42 (Panther) 7 Isuzu Panther, Medium-duty trucks
Karawang To be determined - Operations are projected to start from 2015 onward.
GM Bekasi 40 n.a. This plant reopened in 2013 but will be closed by June, 2015.
Joint venture with SAIC Motor 0→150 (2017) - Operations are scheduled to start in 2017.Wuling brand models will be produced.
VW Contract production 2 1 VW Touran, Golf, Transporter; Audi A4, A6
New plant To be determined - Operations reportedly to start by around 2017.Models to be produced are not yet determined.
Daimler Bogor 20 5 M-Benz C-, E-, S-, A-, B-, ML-, GL-Class, commercial vehicles
BMW Contract production n.a. 2 BMW 3 Series, 5 Series, X1, X3, X5;
Hyundai Bekasi 12 6 Hyundai Atoz (Atos), Accent, Excel, Avega, H-1 (Starex)
Sunter 5 3 Kia Carens

(Note)

1. "Contract production" refers to production at the plant in which the relevant automaker does not hold any stake.
2. Annual production capacities are based on the information on automakers' websites and various media reports. Production volumes for 2014 are based on Proliance's data.

 

 



Toyota Group (Toyota and Daihatsu) in Indonesia

Toyota expands exports of Avanza to Middle East and plans to redesign IMV in 2015

Building new engine plant  Toyota began construction of a new engine plant at the site of its Karawang plant in February 2015. The new engine plant is scheduled to start operations in the beginning of 2016 with an annual production capacity of 216,000 units. Half of the production will be exported. The company's total investment in the engine plant amounts to JPY 23 billion.
Expanding exports of Avanza  In June 2014, Toyota disclosed a target to expand exports of the Avanza built in Indonesia to the Middle East for the period from May 2014 to April 2015 to 5,000 units. While the company has already been exporting the model to Jordan, Lebanon and Syria, it will start exporting to Saudi Arabia, Oman, Kuwait, the UAE, Qatar, Bahrain, and Yemen. As a result, the Avanza is now being exported to 44 countries worldwide. In 2014, a total of 38,600 units of the Avanza were exported.
 Toyota intends to make Indonesia a production and supply hub in the world. The company's exports from Indonesia in 2014 totaled 118,000 units to over 70 countries in Asia, Africa, Latin America and the Middle East. While exports accounted for 20% of the production, its ratio will be raised to 30%. For Toyota, Indonesia is also a key supply hub of engines. The company is exporting 40% of locally-built gasoline engines for the IMV Series to its vehicle assembly plants in Asia, Africa, and Latin America.
Redesign of IMV Series  Toyota plans to redesign the IMV Series, the strategic models for emerging markets, in 2015 for the first time in eleven years (reported in February 2015). The IMV series consists of three models including the Hilux pickup, the Fortuner SUV, and the Innova MPV which share the same chassis. Annual sales of the three models amount to a million units. Toyota is projected to invest JPY 100 billion to revamp the chassis to improve its fuel efficiency and reduce its exhaust gas emissions. The updated IMV models are expected to meet more stringent environment regulations in Asian countries in the future. First, production of the new pickup is scheduled to start in Thailand in spring 2015, and then, production in Argentina and Indonesia will follow.
Release of new NAV1  The compact MPV based on the Toyota Noah was released in May 2014. The model comes with a 2.0-liter four-cylinder gasoline engine and a CVT. It is produced at Toyota Autobody's Bekasi plant. The new NAV1 is priced between the price ranges of the Alphard and the Kijang Innova at IDR 386.65 million-406 million.

 

Daihatsu enhances production capacities and development functions

Increasing production capacity at Karawang plant  Daihatsu has almost doubled the annual production capacity of its Karawang plant to 200,000 units in 2014. Through boosting manufacturing speed of existing production lines, production volume of LCGC-certified Daihatsu Ayla and Toyota Agya as well as the Daihatsu Xenia and Toyota Avanza MPV co-developed by Toyota and Daihatsu was increased. The annual production capacity of the Sunter Plant will remain to be 330,000 units.
Enhancing development functions  While Daihatsu had opened an R&D Center at its Karawang plant built in 2012, it has added a design experimentation building and a rough course within the test course in 2014. The company plans to develop new products and technology to fulfill the market requirements. The number of Indonesian engineers will also be increased through training them at the company's development center in Japan.
Release of Copen  The Copen mini convertible sport vehicle is planned to be released in Indonesia at a time to be determined. The model was exhibited at the Jakarta Motor Show 2014. It will be imported from Japan. In Indonesia where the MPV for a big family is most popular, the Copen appeals to customers who prefer exciting driving performance. By introducing the Copen, Daihatsu intends to demonstrate the wide range of its compact cars.
Supply of engines to Chinese OEMs  Daihatsu plans to supply about 100,000 units of engines per year from Indonesia to FAW in China in 2015 (reported in November 2014). The company will also supply 50,000 units of 1,000cc engines annually to Dongfeng Motor (reported in March 2015). In China where environmental regulations will be tightened, demand for fuel efficient engines is expected to increase. Daihatsu aims to improve its engine plant utilization in Indonesia by supplying the products to Chinese OEMs.

 

 



Honda, Suzuki, Mitsubishi and Nissan in Indonesia

Honda aims 2015 sales at 170,000 units and releases HR-V, new Jazz and new City

2015 sales target  In February 2015, Honda revealed its sales target (on shipment basis) in Indonesia for 2015 at 170,000 units, up 7% from the previous year. While the whole market is sluggish, the company plans to increase its sales through expanding its dealer network (up by 30% from the end of 2014 to 195-200 dealers) and boosting sales of the HR-V compact SUV (sold as the Vezel in Japan) launched in January 2015. Honda has set the 2016 sales target in Indonesia at 300,000 units.
Release of HR-V  Honda started delivery of the HR-V compact crossover SUV in January 2015. The model comes with a 1.5-liter engine combined with a CVT or MT, or is equipped with a 1.8-liter engine mated with a CVT. In Jakarta, the 1.5-liter model is priced at IDR 243 million-288 million while the 1.8-liter model at IDR 355 million. The HR-V is produced at the Karawang plant in West Java.
Launch of new Jazz  Honda unveiled the all-new Jazz compact hatchback (sold as the Fit in Japan) in June 2014. The model is equipped with a 1.5-liter i-VTEC engine combined with a CVT. The new Jazz is 55 mm longer than its predecessor and comes with enhanced safety features. It is priced at IDR 199 million-248 million.
Introduction of new City  The all-new City compact sedan was released in April 2014. The model is powered by a 1.5-liter i-VTEC engine mated with a CVT or MT. The new City has a wheelbase which is 50 mm longer than the previous model and offers strengthened safety equipment. It is priced at IDR 277 million-321 million.

 

Suzuki starts exporting Wagon R to Pakistan and operations at new powertrain and assembly plants

Export of LCGC  Suzuki began exporting the LCGC-certified Karimun Wagon R to Pakistan in June 2014. Initially 1,200 units were exported per month in 2014 in the form of CKD sets with an annual export target of 20,000 units. Suzuki aims to increase its exports from Indonesia with a target for 2018 at 50,000 units per year (completely built-up vehicle: 30,000, CKD: 20,000) (In 2013, Suzuki's exports totaled 25,000 units consisting of 23,000 completely built-up vehicles and 2,000 CKD sets.)
New powertrain plant  Suzuki has built a new engine and transmission plant at GIIC Industrial Estate, east of Jakarta. Operations at different units of the new plant have started successively since February 2014. After the new plant is operational, a part of engine production at the existing plant will be transferred.
New vehicle assembly plant  Suzuki has built a new vehicle assembly plant at GIIC Industrial Estate and plans to start its operations in or after 2015. Its annual production capacity is initially set at 50,000 units and will be raised to 100,000 units in the future. Combined with the capacity of 150,000 units at its existing Tambun plant, Suzuki's annual production capacity in Indonesia for 2015 is expected to climb to 200,000 units (and to 250,000 units in the future).

 

Mitsubishi plans to start operations at new plant in 2017 and enhances parts distribution system

Building a new plant  In February 2015, Mitsubishi Motors revealed a plan to build a new plant in Indonesia jointly with Mitsubishi Corporation and local partner Krama Yudha Group. Mitsubishi holds a stake of 51%, Mitsubishi Corporation 40%, and Krama Yudha 9%. Total investment including costs for the development of the new models will amount to approximately JPY 60 billion. The three companies will build a new plant at GIIC Industrial Estate in Bekasi, east of Jakarta. Operations are scheduled to start in April 2017 with an annual production capacity of 160,000 units. Its production capacity can be raised to 240,000 units in the future. Currently Mitsubishi Motors is contracting out production to Krama Yudha Ratu Motor which has an annual production capacity of 80,000 units.
 Mitsubishi Motors intends to develop the passenger car business in addition to the current light commercial vehicle business to effectively respond to growing demand in Indonesia. At the new plant, the company plans to build the Colt L300 (the second-generation Mitsubishi Delica) which will be transferred from the contractor's plant, a newly-developed small MPV, and the all-new SUV Pajero Sport. A part of production will be exported to the other ASEAN countries.
Enhancing parts distribution system  Krama Yudha Tiga Berlian Motors (KYB), Mitsubishi Motors' sole agency in Indonesia, built a new warehouse for spare parts in Bekasi, West Java, in April 2014 and began operating it as a spare parts center. Among 115 dealers which receive spare parts directly from the center, 40% of them can receive them within 24 hours. The new center helps strengthen the system to distribute spare parts quickly in Indonesia.

 

Nissan begins operations at second plant and launches LCGC-certified Datsun Go+ Panca and Go Panca

Operations start at new plant  Nissan started operations at its second plant in Purwakarta, West Java, in May 2014. At the same time, the company received the license for the LCGC program and began production of the Datsun Go+ Panca at the new plant. With an investment of JPY 33 billion, Nissan had built the second plant which features engine, body, paint and assembly operations. The second plant will be used exclusively for producing the Datsun brand vehicles for the Indonesian market. Nissan's first plant has an annual production capacity of 100,000 units. Combined annual capacity of the first and second plants is expected to reach 250,000 units at full ramp-up.
Release of Datsun Go+ Panca  Delivery of the LCGC-certified three-row MPV started in May 2014. The model comes with a 1.2-liter engine paired with a five-speed MT. It is produced at the Purwakarta plant, West Java. The Datsun Go+ Panca is priced at IDR 85 million-103 million in Jakarta.
Launch of Datsun Go Panca  Delivery of the LCGC-certified five-seat hatchback started in September 2014. The model is powered by a 1.2-liter engine combined with a five-speed MT. It is produced at the Purwakarta plant. The Datsun Go Panca is priced at IDR 96 million-101 million in Jakarta

 

 



GM, VW, BMW and Proton in Indonesia

GM plans to build a new plant with SAIC Motor while it intends to close its Bekasi plant

Building a new plant with SAIC Motor  In February 2015, SAIC-GM-Wuling, a joint venture between GM and SAIC Motor, announced a plan to build a new plant in Indonesia and produce low-priced MPVs under the Wuling brand. Subject to government approval, the joint venture will start construction of the new plant near Jakarta in 2015. The vehicles to be manufactured at the new plant will be sold primarily for the Indonesian market while a portion of the production may be exported to the other ASEAN countries. GM and SAIC will reportedly invest USD 700 million in Indonesia to start operations at the new plant in 2017 with an annual production capacity of 150,000 units.
Closing Bekasi plant  GM revealed a plan to stop producing the Chevrolet Spin small MPV in Indonesia by June 2015 and close its Bekasi plant, cutting 500 jobs (February 2015). In May 2013, GM invested USD 150 million to resume operations at the Bekasi plant which had ceased production since March 2005. However, production in 2014 amounted to less than 10,000 with Bekasi's annual capacity of 40,000 units. GM sold 8,412 units of the Spin in Indonesia and exported around 3,000 units in the same year. GM has been suffering from decreased profitability caused by lower sales of the Spin than expected due to inadequate dealer network and increasing production cost due to limited access to local parts suppliers.

 

VW reportedly plans to build a new plant by around 2017

 VW plans to construct a new plant in Indonesia by around 2017 (reported in February 2015). The plant's annual production capacity, investment amount, models to be produced, and local content are not yet determined. VW earlier had a plan to start building a plant in 2014, but the plan has been delayed due to the depreciation of rupiah.

 

BMW to introduce X6, 7 Series, X5M and X6M in 2015

 BMW's sales in Indonesia for 2014 surged to 5,600 units, up 62.4% year-on-year. Launching a number of new models including the 5 Series and the X5 boosted the company's sales. In 2015, BMW plans to introduce more new models such as the X6, the 7 Series, the X5M and the X6M.

 

Proton to cooperate with Indonesian company for development and production of Indonesian national car

 In February 2015, Malaysian national car maker Proton has signed a memorandum of understanding with Indonesia's PT Adiperkasa Citra Lestari (ACL) to jointly develop and manufacture an Indonesian national car. The signing ceremony in Malaysia was attended by Malaysian Prime Minister Datuk Seri Najib, Indonesian President Joko Widodo, and Proton chairman Tun Dr Mahathir Mohamad. The memorandum is an expression of current intentions and is not binding on both parties. The parties are expected to conduct a feasibility study including exploring the possibility of developing and producing a national car in Indonesia.

 

 



Heavy-duty commercial vehicle builders: Hino Motors, Mitsubishi Fuso and UD Trucks

Hino Motors unveils medium-duty truck model based on modular design

 In January 2015, Hino Motors unveiled the first market-best fit model (the company refers to the models that meet specific market needs as "the market-best fit models") based on the modular design in Indonesia. It is the first time for Hino Motors to launch the production of a new model outside Japan. The new model is a medium-duty truck of Hino500 Series which accounts for half of the company's total sales in Indonesia. The model combines a cab of the medium-duty truck with a heavy-duty chassis.
 Hino Motors revealed its strategy to develop a market-best fit model based on the modular design in its mid-term corporate plan announced in April 2012. In the modular design concept, parts and components of a vehicle are categorized as either core parts or peripheral parts which will be adjusted depending on user requirements. By designing common core parts and intensively manufacturing them in Japan as well as increasing the number of locally procured peripheral parts, Hino Motors is now able to deliver various models at shorter lead times.

 

Mitsubishi Fuso releases a strategic truck produced in India for emerging markets and a new microbus

Launch of strategic model for emerging market  In September 2014, Mitsubishi Fuso under the Daimler Group has launched the new FUSO FJ (GVW 25 tons) and the FUSO FI (GVW 12 tons) in Indonesia. These strategic truck models developed for growth markets in Asia and Africa are manufactured at Daimler India Commercial Vehicles' plant in India. They have already been introduced in Kenya, Sri Lanka, Zambia, Tanzania, Zimbabwe, Bangladesh and Brunei. Indonesia is the eighth market on which these trucks are sold.
Introduction of micro bus  Mitsubishi Fuso released the Espasio microbus in Indonesia in November 2014. The Espasio is based on the FE 71 Long Bus chassis of the light commercial vehicle Colt Diesel Series (sold as the Canter in Japan). The model offers seating for 17 passengers and is designed for various uses including public transportation, school buses, and businesses. Its price starts from IDR 392 million.

 

UD Trucks opens parts warehouse in East Kalimantan and dealership in East Java

 UD Trucks under the Volvo Group built a new spare parts warehouse by September 2014 in East Kalimantan where heavy-duty trucks for mining operations are in high demand. The new warehouse is expected to contribute to faster delivery of the spare parts for the Quester heavy-duty trucks used for mining businesses. Meanwhile in East Java where economy is growing, UD Trucks has opened a second dealership with a service facility. The company intends to support more efficient logistics in the province by responding to the growing demand. As of today, UD Trucks has 44 outlets consisting of 22 dealers, service shops and parts warehouses across the country.

 

 



Production Forecast by LMC Automotive: Indonesian production to rise to 1.58 million units in 2018

(LMC Automotive, January 2015)

Indonesian light vehicle production forecast by group In Indonesia, light vehicle production in 2014 increased by 8.5% year-on-year to 1,177,979 units.

 However, in January 2015, LMC Automotive has lowered its outlook for domestic sales and exports in Indonesia, which have impacted the production outlook. Market conditions have deteriorated on the back of weak commodity cycles and fuel price increases. The export outlook has also been adjusted based on the latest overseas demand outlook. Among the models, the export forecasts for the Toyota Avanza, the Honda Freed, and the Suzuki Ertiga have been lowered from 2015 or 2016.

 Nevertheless, in anticipation of mid- and long-term growth in the Indonesian market, a number of automakers will continue to expand production in the country. LMC Automotive forecasts that light vehicle production in Indonesia will increase to 1,286,682 units in 2015, up 9.2% from the previous year. Indonesian production is expected to grow by 6-8% year-on-year from 2016 to 2018 and will reach 1,579,035 units in 2018.

Indonesian light vehicle production forecast by make

(Units)
SALES GROUP GLOBAL MAKE 2012 2013 2014 2015 2016 2017 2018
Total 963,639 1,085,535 1,177,979 1,286,682 1,388,334 1,480,227 1,579,035
Toyota Group Toyota 424,810 467,371 403,917 380,314 402,319 427,920 455,395
Daihatsu 174,131 214,055 271,643 277,801 299,017 319,795 342,373
Hino 2,425 3,207 4,527 12,989 14,352 14,981 15,244
Toyota Group sub-total 601,366 684,633 680,087 671,104 715,688 762,696 813,012
Honda Group 63,855 76,681 158,892 205,011 229,104 245,194 262,849
Suzuki Group 98,863 132,465 128,015 155,936 204,628 217,752 232,236
Renault-Nissan Group Nissan 72,068 67,139 67,875 67,164 71,158 73,786 77,354
Datsun 0 0 19,316 44,931 50,638 54,508 58,913
Dacia 0 23 147 78 89 100 110
Renault-Nissan Group sub-total 72,068 67,162 87,338 112,173 121,885 128,394 136,377
Mitsubishi Motors 82,213 74,053 80,146 101,882 71,574 76,814 82,237
Isuzu Motors 19,145 13,189 12,175 12,437 13,824 14,751 15,570
Daimler Group Fuso 12,508 14,436 12,767 9,872 10,544 11,300 12,062
Mercedes-Benz 3,280 2,816 2,125 1,853 1,989 2,118 2,270
Daimler Group sub-total 15,788 17,252 14,892 11,725 12,533 13,418 14,332
General Motors Group 0 11,850 10,928 11,024 12,102 13,325 14,185
Tata Group 0 0 0 2,807 3,822 3,984 4,105
BMW Group 1,886 2,288 2,218 1,799 1,912 2,024 2,165
Hyundai Group 6,136 3,948 2,456 617 646 686 731
PSA Group 0 18 20 155 145 147 150
Mazda Motors 0 747 812 12 12 12 12
BAIC Group 810 746 0 0 0 0 0
Volkswagen Group 0 0 0 0 459 1,030 1,074
Geely Group 1,233 503 0 0 0 0 0
Chery Group 276 0 0 0 0 0 0
Source: LMC Automotive "Global Automotive Production Forecast (January 2015)
(Note) 1. Data indicate figures of only small-size vehicles, including passenger cars and light commercial vehicles with a gross vehicle weight of under 6 tons.
2. All rights reserved. Reproduction of any data will require permission of LMC Automotive.
3. For more detailed information or inquiries of forecast data, please contact LMC Automotive.

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