Suzuki Motor Indonesia gears up to expand market share, exports

07, Feb. 2020

Senior executives of PT Suzuki Indomobil Sales (SIS) hold a photo session with Suzuki New Carry pickup at the Indonesia International Motor Show in Jakarta on April. 25, 2019.(NNA)
Senior executives of PT Suzuki Indomobil Sales (SIS) hold a photo session with Suzuki New Carry pickup at the Indonesia International Motor Show in Jakarta on April. 25, 2019.(NNA)

JAKARTA, NNA – PT Suzuki Indomobil Sales (SIS) aims to expand both domestic sales and exports this year as it expects a turnaround for the dented market in Indonesia in 2019.

It will introduce more vehicle models in Indonesia, which is Southeast Asia’s largest automobile market. The first to be launched soon will be the new XL7 low sport utility vehicle (LSUV) model, said Donny Saputra, 4 wheeler marketing director of SIS.

The Indonesian unit of major Japanese automaker Suzuki Motor Corp. announced Tuesday it hopes to raise its local car market share from 9.9 percent in 2019 to 12 percent this year.

The unit said at a press conference in Jakarta it sold 102,865 cars in the retail market and 71,861 motorcycles as wholesale products in 2019, down 11.8 percent and 20 percent respectively from the previous year, according to industry data and the local unit.

The entire automobile market in the country shrank by 11 per cent last year, Makmur, 4 wheeler sales director of SIS told reporters.

Suzuki’s automobile performance was fortunately supported by sales of New Carry pickup truck, which dominated its category with a market share of 56.8 percent last year. The truck was the best performer for Suzuki, followed by its low multi-purpose vehicle (LMPV) All-New Ertiga.

Suzuki's locally made vehicles contributed 87.1 percent to its sales within Indonesia while the remaining came from imported models. Vehicles made by SIS in Indonesia include the Ertiga, New Carry, Karimun Wagon R and APV minivan.

Despite dismal market last year, Suzuki managed to maintain some dominance especially with the Carry pickup truck, noted Seiji Itayama, president director of SIS.

In 2019, Suzuki Indonesia managed to export 66,433 vehicles to 52 countries. This included 26,820 completely knock-down (CKD) units and 39,613 completely built-up (CBU) units. Leading the exports were the All-New Ertiga and Karimun Wagon R in the Low Cost Green Car (LCGC) segment.

"This year, we hope to export a total of 69,000 units," Makmur added.

In the motorcycle category, NEX II scooter and Satria F150 contributed 78 percent to Suzuki's sales in Indonesia. The company is in third position in the motorcycle industry in the country. Suzuki exported 181,473 motorbikes to 46 destinations in 2019.

Ei Mochizuki, general manager of the strategic planning department of SIS, told NNA the 2 wheeler export target this year is 248,000 units as Suzuki plans to ship them to more markets.

The Association of Indonesian Automotive Industries (Gaikindo) has expressed optimism for a higher demand for cars and motorcycles this year. Last year's vehicle sales were hit by the country's preoccupation with the presidential elections which stretched for months. Indonesians and industry principals were also waiting for the new cabinet to be formed and announcement of new policies to boost the economy.