Korean carmakers record slow sales in RI

JAKARTA. Korean carmakers experienced sales drops in Indonesia within the first eight months of the year, citing fierce competition.

Aside from a flood of discounts offered by their competitors, an abundance of new products from competitors also contributed to the sales slowdown.

Hyundai reported a 45.7 percent sales drop during the January-August 2014 period to 1,594 units, compared to 2,937 units in the same period last year. Hyundai’s Indonesian market share fell by 0.37 percent in 2014 compared to its figure last year.

“We are focusing more on upholding and improving the quality of our cars rather than lowering prices, like many of our competitors,” PT Hyundai Mobil Indonesia chief director Mukiat Sutikno said recently as quoted by kontan.co.id

Mukiat added that the Indonesian automotive market was currently in a weak state and projected that Hyundai’s sales would not improve any further in 2014.

He said that the company was likely to sell around 3,000 to 3,500 vehicles this year, compared to 3,800 cars sold in 2013.

Meanwhile, fellow Korean car manufacturer PT Kia Motors Indonesia also experienced slow growth in the first eight month of 2014, with sales declining by 20.85 percent to 6,666 units. In the same period last year, the company sold 8,422 vehicles.

Its market share was reduced to 0.8 percent from its previous standing of 1.06 percent in 2013.

“As of now we are still focusing on our existing products,” Kia Motors Indonesia marketing communication officer Ridjal Mulyadi said, commenting on how competitors have been focusing on churning out new products and discounts.