ASEAN KEY DESTINATIONS
GM relocates marketing to Indonesia
General Motors Indonesia general manager Pramana Razi, said the move was intended to tap the growing demand for cars in Indonesia.
Car sales in the country have increased significantly over the past four years, the report said.
"Chevrolet car sales in Indonesia have steadily and significantly increased," Pramana said in Bantaeng, South Sulawasi, adding that General Motors Indonesia sold 4,500 cars this year from 2,600 vehicles last year.
The relocation of Chevrolet's Asia Pacific marketing base to Indonesia would also mean that it would use spare parts produced in Indonesia, he said.
With the use of local components, the prices of Chevrolet products could become more competitive.
Jongkie Sugiarto, vice chairman of the Indonesian Automotive Industries Association (Gaikindo), told the Jakarta Globe earlier this month that car sales in Indonesia are forecast to grow by 10 percent to 15 percent to approximately 800,000 next year.
Car sales are estimated to 730,000 units.
Typically, 80 percent of car purchases in Indonesia are financed through loans and 20 percent are financed with cash.
Car sales were recorded at 468,000 units last year and at 600,000 units in 2008.
Data from Gaikindo shows car sales in Indonesia rose 61.4 percent to 625,322 units in the first 10 months of this year, from 387,323 a year ago.
Indonesia's economy, which expanded by 5.8 percent in the third quarter this year, is forecast to grow by 6.4 percent next year from a targeted 6.2 percent this year, Bank Indonesia said in a statement on December 6.
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