Automotive Company Strategy: Toyota Brand Takes Holding Position

Jakarta -The Association of Indonesian Automotive Industries (Gaikindo) recorded positive achievements in the first quarter of 2018 which rised by 2.9%. However, the first three months of this year became a bad record for the market ruler, PT Toyota Astra Motor (TAM).

Based on data from Gaikindo, supply to Toyota dealers plunged 21% i.e 84,494 units. The defending champion of the automotive world of this country also had to release the number one title in its flagship segment, small cars (LMPV) and sport utility vehicle (SUV).

The backbone of Astra’s automotive sector to the Indonesian car market is also loosening. Toyota’s market share slumped from 37.8% in the first quarter of 2017, to 28.9% in the same period this year. Nevertheless, Toyota still maintain the status as the best-selling car brand in Indonesia.

So far, the market is getting congested and domestic consumers will not grow significantly in the near future. Executive General Manager TAM Fransiscus Soerjopranoto said the increasing choice of cars can not be denied to be the reason for the company’s performance is depressed. “That means the competition is getting stronger for Toyota. It is Toyota who must survive, “he said as quoted in Bisnis Indonesia (5/7/2018).

The real hit for Toyota started by the following Mitsubishi enliven the category LMPV medio 2017. Capitalized design Anyar Xpander also managed to make the Avanza impressed ancient. This is directly proportional to sales performance.

Then new players from the Bamboo Curtain country come from the entry-level segment. Armed with competitive pricing, Wuling Motors becomes a new choice for first time buyers or first car buyers who are also the target consumers of Toyota.

In addition, not to mention the DFSK that debuted this year. This Chinese brand will focus on playing in the SUV segment with a similar strategy Wuling, which is putting the price below the market.

Toyota’s negative trend in the first quarter of 2018 was due in part to the decline in demand for the company’s backbone. Factory sales to Avanza dealership fell by 40% to 21,413 units.

Besides the achievements of Energy Saving Motor Vehicles and Affordable Prices (KBH2) Calya also come under pressure. This model recorded a decrease of 43.4%.

Some models try to be heroes. Unfortunately, it is not strong enough to keep company performance. Such as Rush whose supply to the dealer skyrocketed to two-fold. Innova and Agya each rose 10.7% and 9.8% could not do much.

Under these conditions, according to Soerjo, the best strategy for TAM is to keep it from falling deeper. Toyota did not play aggressive this year. Keeping the supply balance to the dealership with the market demand becomes the main thing to do.

He continued, TAM’s target is to close this year with a market share of at least 30%. 8 months left for the company to catch up. “We want to do something to secure this 2018, yes of course. But we also have to be careful to keep the dealer confidence, “he said.

Toyota Sales Performance Last 10 Years :

*Jan-Mar

Source: Gaikindo