JAKARTA. The Brand Holder Agent (APM) of Renault in Indonesia PT Auto Euro Indonesia targets to seize the segment of middle-low car by launching a new brand Renault KWID.

The 1,000 cc car, which has crossover concept, is priced at IDR117 per unit on the road in Jakarta. In other words, Renault KWID will compete with low cost green cars or LCGCs.

Head of Product Strategy for ASEAN Region at Renault Quincy Govin said that Indonesia is the first market for Renault KWID among other ASEAN countries. Indonesia was selected as the first market due to its large market size compared to other ASEAN countries.

Govin added that Renault will consider to establish production facility if the number of Renault sales has exceeded 5,000 units of cars. As an information, in India, where KWID is assembled, Renault sells KWID with the engine capacities of 800 cc and 1,000 cc. However, in Indonesia only sells KWID, which has the engine capacity of 1,000 cc.

Sales and Marketing Division Head PT Auto Euro Indonesia Ario Soerjo said that the customers can start ordering this car in October, while the car itself will be available in December 2016 and the beginning of 2017. Arjo targets that the car sales can hit 200 units by the end of this year and 1,000 units in 2017.

In order to seize local market, the European brand Renault KWID has to spend extra efforst to change the image of ‘premium’ of the Renault Brand. Renault will be facing tight competition with LCGC brands, such as Toyota Agya, Daihatsu Ayla, Suzuki Karimun, Honda Brio Satya dan Datsun. Therefore, Renault decided to set a price, which is almost similar with the price of LCGs.

As a comparison, in India the price of Renault KWID with the engine capacity of 1,000 cc is around IDR78 million. In Indonesia, the price for a Renault KWID will be around IDR117 million. The price is higher in Indonesia due to the import duties and other fees.

In responding to the Renault’s expansion to low cost car segment, Vice President Director of PT Toyota Astra Motor Henry Tanoto said that the competition will benefit consumers. Henry claimed that Toyota will provide the best choices for consumers amid the tight competition.

Toyota produces two car brands at the segment of low cost car, namely Ayla and Calya. The price for the two brands is around IDR100 million. Out of the two brands, Cayla attracted more consumers. Toyota itself targets to achieve 2,500-3,000 units of Cayla sales per month. Toyota claims to secure 19% of the market shares of cars with the price around IDR100 million.

(MUHAMMAD FARID/Translator)

Editor: Rizki Caturini