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GM Sets Sights Upon Growing Indonesian Auto Market

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On: Fri, Jun 4, 2010 at 12:19PM | By: Michael Jon Lazar

GM Sets Sights Upon Growing Indonesian Auto Market

If you are curious about how GM is doing, guess what: They are doing great! Not only have they been repaying their loans, and on time—and actually early on some—but they are really making strides to expand their market. Next stop: Indonesia, the fourth largest country in the world, and one of the world's hottest and fasting growing auto markets. And, to boot, people in Indonesia love the current US president (who lived there as a kid), and they also adore GM, namely, Chevys! So for GM, the next stop is Indonesia, particularly the capitol city, Jakarta.

According to a recent report published in the Detroit Free Press, General Motors “aims to capture at least 10% of the Indonesian market, which is viewed as holding the potential to substantially increase the automaker's overall sales and help boost the bottom line.”

The carmaker has been seeing some pretty good sales in this region as of late, as well. Showing some strong and steady gains in the market and really pushing sales of their very popular Chevy Cruze—a newer and sleek, very affordable four-door sedan that GM is making. An interesting perspective here on the popularity of this car is that it comes with the endorsement of the US President, Barrack Obama.

In an interview with the Detroit Free Press, M. Juansyah (a salesman for Chevrolet in Jakarta) said, “President Obama signed the car. This makes it kind of interesting to customers. It showed that President Obama himself is interested in buying this car. So why don't you? Obama is very well known here."

GM seeks to garner around 10% of the Indonesian auto market over the years to come. The outlook for that growth is pretty solid for the automaker. Especially considering that Obama grew up in and around Indonesia, and has made a few visits to Jakarta promoting for GM after the bailout calamity. As far as the market shares that GM is capturing in Indonesia, the Freep report tells the real story. “GM's share here last year was just 0.5% in a market that's grown tenfold over the past decade, to more than 483,000 sales last year. In five years, it's projected to near 1.3 million.” Those are some pretty impressive projections, to say the least.

As far as car buyers being ready to sign on the dotted line in Indonesia, they are readily available and lining up. According to the numbers, the sales are WAY up over the past decade alone.

The Detroit Free Press offers the real numbers on auto sales in Indonesia over the past decade, “Auto sales shot up to more than 483,000 last year, from 58,000 in 1998, according to the Association of Indonesia Automotive Industries. The group predicts an auto sales market approaching 1.3 million in 2015, which would put it nearly on par with Russia's new vehicle market last year.”


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