Thank you 2016! Here's 10 things about Automotive in Indonesia 2016, just in case you missed it.
Daniel Doni Sundjojo
Automotive Research I Market Research | Market Entry I Business Matching I
2016 is almost over, so just in case you missed something in Automotive Industry of Indonesia for 2016, here's some highlight for you:
1,Indonesia still favourite destination for invest in Automotive Industry despite some sad news.
Indonesia still one of the best destination for invest in Automotive Industry. After Toyota, Daihatsu, Nissan and Mitsubishi scale up its investment in Indonesia, SGMW Motors also make great investment in Indonesia, with brand Wuling, they already launched in Gaikindo Indonesia International Auto Show 2016 and hope to be very successful in Indonesia
And the latest, BMW also follow its competitor, Mercedes, to increase investment in Indonesia, after decided that BMW 7-series will be locally assembled in Indonesia as BMW already invested in BMW Production Network 2, PT. Gaya Motor, Indonesia.
In Retail environment, Mitsubishi also expand its investment with big plan to create a new company to distribute passenger and light commercial vehicles in Indonesia, and plan to start sales operations in April 2017.
Amid great news about growing investment in Indonesia, there are sad news as well. Of course, the biggest shocked news is when Ford decide to leave Indonesia.
In Monday, Jan 25, 2016, Ford Website announced this news and make uncertainty condition for Ford Partner and Customer however, the announcement of RMA Group by 1 November 2016 to take care its customer in Indonesia give better solution, even though still for some customer it is not enough and choose to sell their car.
Another shocking moment for Automotive Industry in Indonesia when Mazda Motor Indonesia had decided to end its era, and appointed Eurokars to handle its business in Indonesia. However, it is different with Ford that 100% leave Indonesia, for Mazda, its business is still remain exist, but already took over by Eurokars
As general, we can conclude that Indonesia still favourite destination to invest in Automotive Industry.
2. Institute Automotive Indonesia, Strategic Think Tank to accelerate Automotive Industry in Indonesia
Government of Indonesia want to boost Automotive Industries in Indonesia, and to speed up this process, on 20 Mei 2016, Indonesia Automotive Institute had been launched. Leads by Mr. I Made Dana M Tangkas, MSi as CEO, Indonesia Automotive Institute has very important mission, as think thank to accelerate Automotive Industry Indonesia.
Meeting between Indonesia Automotive Institute and JATO Dynamics Indonesia
3. Low Cost MPV segment still The King.
SUV may be new big wave in automotive with huge booming in many countries, but for Indonesia case, Low Cost MPV segment is still The King. We can see that in the Top 10 best selling model in Indonesia, low cost MPV segment is really dominant.
This reality make many OEM enter the battle of low cost car in Indonesia, particularly for MPV. Toyota, Daihatsu, Honda, Mitsubishi Suzuki, Nissan, Datsun already compete in this segment, and the even Renault bring Renault Kwid to enter this segment.
Mitsubishi launched XM CONCEPT to make competition in this segment even tougher, and use 2016 Gaikindo Indonesia International Auto Show event as spectacular World Premiere of XM Concept.
4. Indonesia probably has the most Auto Show in the world.
While in many countries Auto Show is held once a year or two times a year, Indonesia has many Auto Show in entire years. In Jakarta alone, there are 2 International level Auto Show : Gaikindo Indonesia International Auto Show and Indonesia International Motor Show. And recently, Auto Show also expand to other cities like Surabaya and Makassar. Since there are huge demand and enthusiasm in automotive not only in Jakarta but also other cities and as effort by Government and Automotive Industries to boost Automotive Industry in Indonesia
5. Online Taxi created new trend.
Invasion of online transportation network company such as Uber, Grab and GO-CAR in Indonesia is very massive recently. Despite pro-cons situation about it, many customer use it as alternate transport.
For OEM, clearly, it is great business opportunity and Toyota Astra Motor decide to grab this opportunity more aggressively. They launched Avanza Transmover that dedicated for it.
6. Toyota dominated Car Sales in Indonesia
Toyota dominated car sales in Indonesia with 43.87% market share for YTD November 2016, and make it as The King of Car in Indonesia. In November 2016, Toyota even dominated 49.87% market share, it means almost 1 car in every 2 car is Toyota.
7. Daihatsu still strong in Light Commercial Vehicles segment.
Daihatsu still strong in Light Commercial Vehicles segment, despite tight competition with Mitsubishi and Suzuki. Daihatsu Gran Max still too strong to be beaten, and recently, Daihatsu even launched Hi-Max to team up with Gran Max in order to maintain Daihatsu as King of Light Commercial Vehicles segment.
8. OM TELOLET OM, Mitsubishi has the most TELOLET in 2016.
With OM TELOLET OM made new trend worldwide, and became trending topics in social media, it interested to know which one make the most TELOLET in 2016, and the answer is Mitsubishi. With 44.5% market share for YTD 2016, Mitsubishi dominated TELOLET for 2016.
9. The Rise of After Market and Component Business
After many years, After Market and Component Business had been treated as "supporting" business, but in 2016, After Market and Component Business had proved that it is no longer as supporting business, but can make great revenue and even can influence vehicles sales, since it can make customer change decision if they know that the cost for after market and component is too expensive compare than price of vehicles itself.
10. Indonesia is welcome to adapt Internet of Thing for Automotive
Automotive Industry in Indonesia start new era : Internet of Things in Automotive. We can see how Automotive Industry implement internet of things. From high technology feature in vehicles, tracking system for fleet management, internet platform in manufacture and retail even internet based Business Intelligence and Big Data Analysis, it already became new strategic initiative in each segment of Automotive Industry in Indonesia. As one of the biggest internet users in the world, - According to World Bank Report in 2015, Indonesia has 22 internet users for every 100 people, 1.09 people for every 100 people has fixed broadband subscriptions, and there are 132 mobile cellular subscriptions per 100 people, surely will never left behind for Internet of Things. Government already launched program to expand internet connection not only in big city but also in village or even rural area. Telco and Internet Company joint forces to invest in Internet of Things Program to make sure connectivity will be the next big thing for Indonesia. Government already promise that all of Indonesia will be covered by Internet, or even High Speed Internet for Big Cities by 2019. Jakarta already set as Smart City and also some of big city as well. Telco, Technology and Internet Giant already hand in hand to speed up this program. Automotive Industry is already adapt and will expand it rapidly as Infrastructure also expanded. So yes, Indonesia is ready for Internet of Things in Automotive!
Still, there are many many moment in Automotive Industry of Indonesia 2016, but, at least these 10 things can be highlighted. Thank you 2016, let's heading for successful 2017!
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8 年Your articles about the automotive industry in Indonesia have been very informative.