LCGC Replaces MPV Market, Businesses Say

TEMPO.CO, Jakarta - Executive Chief of Vehicle Industry Association (Gaikindo) Jongkie D. Sugiharto, predicted that there will be a market shift of Multi-Purpose Vehicle (MPV). According to Jongkie, the presence of low-cost green cars (LCGC) will establish a new market that will replace the MPV market.

"The MPV market will remain large but there will be a shift to LCGC. LGCG demands are up this year. Last year, in 4 months time, the number [of LCGC sold] reached 51 thousand. This year it will increase..." he said at the Mulia Senayan Hotal, Wednesday, February 5, 2014.

Gaikindo has set a target to sell 120,000 LCGC in 2014. Jonkie asserted that LCGC price tag is relatively low and the cars’ passenger capacity will be a main factor for Indonesian consumers. However, he also stressed that the commercial vehicle segment will grow this year in line with the economic growth.

Vivek Vaidya, Vice President Frost & Sullivan, a market research company, said that low-cost green cars will boost the number of car sales in 2014. Vivek predicted that car sales in 2014 will reach up to 125,000 units.

"This type of car is not only interesting to the domestic market but also in the export market as well. Don’t be surprised if these cars will contribute largely to exports, because they are considered as a hot item in Laos, Cambodia, South America, or Africa," he said.

Based on Frost & Sullivan's data, Toyota Agya is the highest selling product at 16.815 units being sold. Daihatsu Agya comes in second at 14.264 units while the Honda Brio Satya sells 11.592 units and the Suzuki Wagon R with 8.500 units being sold.

ANANDA TERESIA