General Motors sets sight on Indonesia

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Chevrolet indonesiaUS car maker General Motors (GM) is trying to break the Japanese stranglehold on the popular family car market in Indonesia, where it sees the next auto boom after China, a senior executive said, according to a Reuters report.

Despite being in Indonesia for about 30 years longer than Toyota, GM has remained a small player in Southeast Asia’s biggest economy with just 1 per cent market share. It sold around 12,000 cars from January to October 2013, whereas Toyota, the world’s biggest car maker, sold more than 350,000.

GM is banking on multi-purpose vehicles, sport utility vehicles and compact cars to close the gap with its Japanese rival, said Michael Dunne, who became president of the company’s Indonesian operations in September 2013.

Sales in Indonesia by some estimates are expected to double over the next three years. Since April this year, GM has been producing the Chevrolet Spin – a van with three rows of seats priced from 144 million rupiah ($12,000) – at its factory in the outskirts of Jakarta.

Customers in the country of 240 million people have bought more than 1.1 million vehicles so far in 2013, according to the latest industry data. Toyota and Daihatsu control more than half of that market and keep a tight grip on the local dealership network through their partnership with Indonesian conglomerate PT Astra International, while GM is still looking for a local partner to achieve its planned market share of 10 per cent by 2020.

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Reading Time: 1 minute

US car maker General Motors (GM) is trying to break the Japanese stranglehold on the popular family car market in Indonesia, where it sees the next auto boom after China, a senior executive said, according to a Reuters report.

Reading Time: 1 minute

Chevrolet indonesiaUS car maker General Motors (GM) is trying to break the Japanese stranglehold on the popular family car market in Indonesia, where it sees the next auto boom after China, a senior executive said, according to a Reuters report.

Despite being in Indonesia for about 30 years longer than Toyota, GM has remained a small player in Southeast Asia’s biggest economy with just 1 per cent market share. It sold around 12,000 cars from January to October 2013, whereas Toyota, the world’s biggest car maker, sold more than 350,000.

GM is banking on multi-purpose vehicles, sport utility vehicles and compact cars to close the gap with its Japanese rival, said Michael Dunne, who became president of the company’s Indonesian operations in September 2013.

Sales in Indonesia by some estimates are expected to double over the next three years. Since April this year, GM has been producing the Chevrolet Spin – a van with three rows of seats priced from 144 million rupiah ($12,000) – at its factory in the outskirts of Jakarta.

Customers in the country of 240 million people have bought more than 1.1 million vehicles so far in 2013, according to the latest industry data. Toyota and Daihatsu control more than half of that market and keep a tight grip on the local dealership network through their partnership with Indonesian conglomerate PT Astra International, while GM is still looking for a local partner to achieve its planned market share of 10 per cent by 2020.

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