Foton China eyes RI's lucrative auto market

Mustaqim Adamrah, The Jakarta Post, Jakarta | Thu, 12/11/2008 10:40 AM  

Chinese automaker Beiqi Foton Motor Co. Ltd. is attempting to directly penetrate the Indonesian automotive market by assembling its View Extra Large Cabin (XLC) here despite the global economic downturn. 

With a total investment of Rp 208 billion (US$17.53 million), Beiqi's authorized distributor PT Foton Mobilindo is to start marketing an estimated 1,500 units of Foton View XLC next year, Foton Mobilindo sales and marketing director Frans Harsono announced Wednesday. 

Foton Mobilindo is a subsidiary of Modern Group -- film, property and electronics empire. 

Frans said the Rp 208 billion investment would be spent on assembly costs and initial investments worth Rp 120 billion and on the establishment of 11 main dealers for after-sales service. 

"Foton (Mobilindo) is working with (general automotive assembler) PT Gaya Motor, using the latter's assembly plant to produce a maximum of 25 units per day," he said during the announcement. 

He said the production of multi-purpose vehicle (MVP) Foton View XLC had begun since early this month and sales were expected to start early next year. 

"We'll start marketing Foton View in January (2009), with a sales target of 1,500 units for the first year of our sales," Frans said. 

"We hope the economic crisis will not severely hit the Indonesian automotive market." 

Run on diesel, Foton View XLC is produced in three different types and is equipped with a 2,700-cubic centimeter engine and a maximum of 15 seats. 

The Foton View XLC price is tagged between Rp 170 million and Rp 220 million per unit. 

Multi-purpose vehicle Foton View XLC will compete with other cars in its class, such as the KIA Pregio, Isuzu Elf and Hyundai H1. 

Besides Foton View XLC, Frans said, Foton Mobilindo was also considering selling the Foton Midia type in the low MVP class -- to the Indonesian domestic market by the end of 2009. 

He said his parent company had been marketing Foton Midi, which carries a 1,300-cc or 1,600-cc engine, back in China. 

Foton Midi will compete with market controllers Toyota Avanza (with 1,300-cc and 1,500-cc engines) and Daihatsu Xenia (with 1,000-cc and 1,300-cc engines). 

The Industry Ministry's land transportation industry director Panggah Susanto said he expected Foton to increase its investment.