Skalanews - Sales for hatchback sedan and sport utility vehicles in Indonesia to continue rising, especially in urban area as consumers are now seeking for a trendy look as well as fuel-efficient cars, a senior executive at a leading distributor said.
Joko Trisanyoto, marketing director at PT Toyota Astra Motor, the sole distributor for Japanese Toyota brand cars, said as of last year sales of SUV type cars in Indonesia grew 28 percent to 104,172 units. Meanwhile, hatchback sedan also saw a rise by 25 percent to 96,458 units.
Trisanyoto said on the sideline of the launching of Toyota New Yaris in Jakarta that more people living in urban area are preferring to ride SUVs and hatchbacks rather than the large Multipurpose Vehicle (MPV) as it looks more trendy and fuel-efficient.
"It appears that demand for passenger cars is getting segmented into the small-variants and no longer focused to MPV," Trisanyoto said.
However, currently, MPV market is still bigger than SUVs and hatchbacks, as such type of cars are dominating more than 40 percent of the total car sales in Indonesia.
SUVs and hatchbacks are controlling 12 percent and 11 percent respectively.
Demand for compact cars, Trisanyoto said, will receive a boost following the government's move to encourage development of low cost green car (LCGC).
"Probably by the end of this year or early next year, demand for compact cars to rise due to the LCGC program, which price is tagged cheaper [than the current cars], fuel-efficient and also eco-friendly," he said.
Trisanyoto, said, however, the reason for people to buy compact cars is not because of the government's plan to increase the subsidized fuel price. He said LCGC demand is rather encouraged by its fuel savings as well as the eco-friendly characteristic.
For TAM, the increase in demand for SUV, is reflected in higher sales for Toyota Rush, an SUV type. (Buj)