With Chinese carmakers gaining entry in Indonesia, growth is likely to be spurred in the domestic industry. It will also enable the development of related technologies, as reported by a leading economic newspaper on Tuesday.
The companies in China are mostly starting off in emerging markets like Russia, Egypt, and Syria where they expect to learn more about service and quality. However, many of them have their eyes set on Europe and the USA. Geely and Chery will start selling cars in these markets by the year-end 2007. Great Wall Motor Co. started exporting its SUVs (sport utility vehicles) to Italy since September 2006.
The government of China has set a goal that it will win a 10% share of the global car market in next ten years.
Geely International Corp and Chery Automobile Co. Ltd, the two carmakers in China, have recently started selling products or declared plan to set up an assembly plant in Indonesia.
Kukuh Kumara, who's an analyst with Gaikindo, auto manufacturers association in Indonesia, has said that the aim of Chinese expansion is to both sell the cars and bring technological advancements and investment to the country.
"Seen from business perspective, Chinese cars' presence provides us with an opportunity for growth. However, the success of auto expansion in China depends on the ability of carmakers to convince buyers," said Kumara.
"Unlike motorcycles, you can't assemble cars just anywhere. Chinese manufacturers ought to invest here, at least in assembly facility" as per Gunadi Sindhuwinata, Chairman of Indomobil, a leading auto assembly & distribution group.
Representatives of four auto industries in China have offered business with Indomobil. However, the company has finally accepted only Chery for selling small city cars in Indonesia, added Sindhuwinata.
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Turkey Automobile Sector Forecast (2008-2012)
