PT.

INDOMOBIL INTERNASIONAL

Introduction
PT. Indomobil International is one of the most respected automotive business empires in
Indonesia. The products made by this company many milling about on the highway
throughout Persada archipelago. You must know names like: Suzuki Carry, Katana, Vitara,
Escudo, Baleno, Karimun, Aerio, APV, Swift, Grand Vitara, SX4, New Karimun, New Baleno
and the recently launched are Suzuki Ertiga. That is some products made by Indomobil
International is quite respected by its competitors. Currently, Indomobil International holds
a position as a market challenger in the automotive business.
In conducting its business, Indomobil International can not be separated from various
challenges, whether from macro or micro environment. In the macro-environmental aspect,
Indomobil International has to deal with various problems, among others: the economy that
has not fully recovered, unstable rupiah exchange rate, changes in economic policies that
are often not conducive to the growth of automotive business, political turmoil, the turmoil
of labor, lack of law enforcement, the many charges, the decreasing of people's purchasing
power due to the increase of fuel price, and so on. Meanwhile, from the micro environment
there are various challenges that are not less great, among other increasingly tight
competition among the automotive manufacturers. All the challenges terebut must be
responded by Indomobil International if indeed he wants to continue to exist and develop
and maintain its position as runner-up in the automotive industry in Indonesia.

Automotive Business Map

Based on Gaikaindo, Indomobil International controls about 24.9% of the market share of
automotive in almost all categories.

Table 1.
The sole agent
SHAREHOLDERS AGENT (PT) BRAND CATEGORY
Astra Motor Daihatsu Indonesia Daihatsu Sedan,I,II,IV
Toyota Astra Toyota Sedan,I,II,IV
Mulati Finance Motor Peugeot, Renault Sedan,I
Pantja Motor Isuzu I,II,III,IV
Tjahaja Sakti Motor BMW Sedan
Djakarta Motor Co. Jeep IV
United Imer Motor Nissan Diesel III,IV
Indomobil Indomobil Suzuki Intl Suzuki Sedan,I,IV
Central Sole Agency Volvo Sedan
Wahana Wirawan Nissan Sedan,I
National Motors Co. Mazda IV
 Hino III
Krama Yudha KTBM Mitsubishi Sedan,I,II,III.IV
Imora Prospect Motor Honda Sedan,I
Rajawali IRMC Ford Sedan,I
BG Stars Motor Ind. Mercedez Benz Sedan,II.III,IV
CMN Hyundai Sedan,I
Daewoo Sedan
Mercu Buana GM Buana Ind. Chavrolet/Opel Sedan,I
Djakarta Motor Djakarta Moto Coy Cherokee IV
Indauda IPN Kia Sedan,I
Wanandi GMM VW Sedan

Of the brands listed on the ATPM, only five companies are capable of producing over 20
thousand units per year, namely: Toyota, Suzuki, Daihatsu, Isuzu and Mitsibishi. Meanwhile,
other companies have just reached the production scale in bwah 5000 thousand units per
year. Of the 10 ATPM business groups above, four of them control nearly 97% of the share
of automotive market in Indonesia. Indomobil International as runner-up holds 24.9% of the
domestic market share. Then Daihatsu followed behind with a 21% market share.
Furthermore, Mitsubishi controls 15% and Imora is only 4%.

Marketing Strategy Indomobil International

Amidst the rigors of competition in terms of image and product attributes (technology,
modification, utility), price and discount war between ATPM, Indomobil International uses
customer satisfaction as the spearhead of strategy to maintain its consumer loyalty. Various
facilities provided by Indomobil, both in the form of credit assistance and after-sales service.
Some of these facilities include, firstly, the establishment of Citra Asri Buana with various
branches in various major cities in Indonesia. Citra Asri Buana Facility is a showroom and
workshop in one roof, or better known as 3S, namely: Sale, Spare Parts, and Service - which
makes Indomobil International product easy to find anywhere because the distribution is
evenly distributed, and the replacement of parts and service is easy to do . Second, the
provision of Indomobil Finance facilities to provide convenience for buyers to obtain low-
interest car loans. Third, open the showroom Suzuki Used Car, the center of buying and
selling used car warranty to facilitate consumers to resell used cars at a reasonable price.
Although various marketing strategies have been done, but it seems that not all products
experience glitter. Toyota dominated profit for Astra, while Daihatsu topped the second
rank, and Isuzu occupied the third rank. To find out more detail the growth of relative
market share and the average growth of Indomobil International's automotive product
market, see the following table.
RELATIVE MARKETSHARE (RELATIVE MARKETSHARE) MARKET BRAND AND MARKET
GROWTH RATE (MARKET GROWTH RATE)
Based on the data above it appears that the market share of family vehicles is very large,
but the market growth is very small. As for the MPV category, the market share is large, and
the market growth is also large. SUV vehicles have a large market share, as well as market
growth. For commercial vehicles and sedans, its market share is very small, as well as its
market growth.

ECONOMIC ENVIRONMENT:
Currently Indomobil International faces a less conducive environment. Due to the prolonged
economic crisis of the past few years, the impact is remarkable. To date, the national
economy has not recovered at all. The rupiah exchange rate is still very vulnerable to market
volatility, people's purchasing power is very low, interest rates are high, and so on. High
interest rates will obviously affect the turnover of car sales, as 80% of car purchases are
financed by credit. On the other hand, because the imported material still dominates the
production of cars, the weakness of the rupiah will make the price of cars more expensive.
Then, the situation is exacerbated by a less conducive investment climate, weak law-
eforcement and political chaos, and so on.

BUSINESS / COMPETITION ENVIRONMENT

In addition to facing competition among domestic players, Indomobil International is also
dealing with competitors from ASEAN countries, Korea and China. Currently Thailand is
trying to attract major automotive manufacturers, especially from Japan. With a variety of
facilities and facilities, Thailand is ambitious to attract automotive investors to do the
manufacturing in the country. The Thai government provides an import duty cut of up to
90% for the import of completely knocked down (CKD) vehicles from which the destination
is to be re-exported. With this strategy, four automotive manufacturers, namely Toyota,
Mitsubishi, Nissan and Honda set up production centers in Thailand. Malaysia is also not left
behind. Through cooperation with Mitsubishi, Malaysia is now exporting cars to the UK,
Singapore, Indonesia and New Zealand.
The country of Korea also can not be taken lightly. The country has two automotive giants,
namely KIA and Hyundai. Both brands of this car is not foreign to the people of Indonesia.
Hyundai Atoz, Hyundai Trajet, KIA Picanto, KIA Carens, KIA Sephia (Timor) is part of the
second type of automotive company that is quite popular in Indonesia. New economic giant
- China, has also expanded its wings in the automotive business in Indonesia. The products
made in China are known as very cheap goods. Of course this will affect the development of
Indomobil International business.