GM's new no-frills van pushed up sales in Indonesia

By IVCPOST Staff Reporter

Jul 05, 2013 06:32 AM EDT

General Motors Co. was funding a no-frills "people mover". The company hoped to make progress into the Indonesian car sector that was conquered by Japan-made cars. The Indonesia car division was one of Asia-Pacific's hottest auto bazaar.

GM's head in its Indonesian venture, Marcos Purty, told Reuters that their Chevrolet Spin significantly increased their sales. Chevrolet Spin was newly-designed van with three rows of seats that was manufactured in Jakarta.

The Spin was worth IDR 139.7 million equivalent to US$12,360. In early May, the Spin hit Chevrolet outlets and its effect in the market was felt since then.  However, the Detroit-headquartered business was still behind its Japanese competitors.

The whole auto market of Indonesia pushed up to 25% to 1.1 million cars last year. It was anticipated to grow another 10% this 2013. The Japanese automanufacturers monopolized about 90% of the market.

The GM plant would have the capacity to produce 40,000 Spin vans per year.

Indonesian clients preferred trouble-free no-frills vans. GM's undertaking to produce more Spin enabled it to compete against cars produced by Toyota and Nissan.

GM would start expanding by exporting its Spin cars to Thailand and Philippines in the next few weeks.

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