Mitsubishi remains upbeat despite crisis

The Jakarta Post, Jakarta | Wed, 02/25/2009 1:52 PM 

Having booked a fairly solid performance in January, coupled with predicted positive economic impacts from the upcoming elections, Mitsubishi is upbeat about meeting its full-year sales target of 60,000 units despite the economic crisis. 

The target, which is around 30 percent lower than last year's sales, has been set in line with a prediction by the Indonesian Automotive Industry Association (Gaikindo) that total auto sales would this year drop by as much as 30 percent as slower economic growth reduces demand. 

"Indonesia's economy will be better compared to Europe and the United States. The huge population will trigger the growth of consumptive products domestically while some commodities are also improving, such as palm oil and rubber," Krama Yudha Tiga Berlian (KTB), Mitsubishi authorized dealer, president director Fumio Kuwayama told a press briefing on Tuesday. 

"Facing the elections, the economy will move faster, just like what happened in 2004. It's very promising and we are optimistic *about meeting the target*," he added. 

January's figures seem to have justified his optimism, with the company selling 5,630 units - around 15 percent higher from a year earlier. 

KTB defied the odds as Gaikindo reported during the same period (January) that all auto sales dropped 24 percent to 32,167 in 2009 from 42,489 units a year earlier. 

In 2008, KTB gained a 42 percent increase in sales compared to 2007 when they sold 61,547 units. 

The company has relied on commercial vehicles, in particular Fuso trucks which account for 60 percent of its total sales, and light commercial vehicles (37 percent). 

The remaining 3 percent is for passenger cars comprising Grandis multi purpose vehicles, Strada Triton sports utility vehicles and Lancer sedans. 

"We have launched our revitalization program by the end of 2007 to increase the passenger cars segment. Our target is to raise awareness *of Mitsubishi* and show our presence to our customers," KTB director of marketing Rizwan Alamsjah said. 

To help cope with the current adverse economic conditions, KTB also plans to soon raise the prices of its vehicles by between 20 percent and 30 percent. 

On Jan. 1, some of the country's leading carmakers already raised their prices by between 5 percent and 13 percent. 

For 2009, Gaikindo has estimated auto sales may decline to as low as 405,000 units, from last year's 605,000.