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Ford to expand dealerships to boost sales in Indonesia

Publication Date : 12-10-2012

 

Ford Motor Indonesia (FMI), a subsidiary of US automobile giants Ford Motor Co., says it will ramp up dealer networks nationwide next year in a bid to reach higher shares in Indonesia’s booming automotive market.

The firm would spend up to 130 billion rupiah (US$13.49 million) in investment to build as well as upgrade sales services and spare part centres, managing director Bagus Susanto said on Thursday in Jakarta.

It would open eight new outlets in major cities, including Denpasar, Jakarta, Pontianak and Surabaya, while modernising five existing outlets in Bogor, Jakarta, Malang, Palembang and Palu, he added.

“Introduction of new products will not generate maximal outcomes if that isn’t supported by sufficient dealership networks. That’s why this expansion will be one of our focus points,” Bagus said during a media gathering.

In recent years, Ford has gained a stronger presence in Indonesia as sales have picked up significantly.

In 2011, for example, its sales jumped by 94 per cent to 15,988 units, driven largely by its new sedan Fiesta, which booked 7,005 units in sales, or 43.81 per cent of its total sales.

However, during January-September this year, sales plunged by 34 per cent to 8,084 units from last year, because of a shortage of spare parts supplied during massive flooding that hit Thailand last July and affected the company’s production facility in the country.

The plant produces the company’s best selling vehicles — the Fiesta, Ford Ranger and Ford Everest — for the Indonesian market.

The Fiesta still dominated sales during the designated period, with 4,903 units, representing 60.65 per cent of overall sales.

Newly appointed Ford Asean president Matt Bradley said during the gathering that Indonesia promised a high growth opportunity for Ford due to its huge population and surging income level that created a new base of car buyers.

Indonesia, along with Thailand, was a major engine of growth for Ford business in the region.

“Our share in Indonesia is at the level that we think can still grow significantly,” he said.

“We know that the automotive industry in Indonesia, according to analysts and third parties, will approach two million toward the end of the decade.”

 

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