The Indonesian car market is dominated by Japanese cars.
95% of the brands are Japanese cars, and even American and German car brands have no room for survival.
In this absolutely monopolized market, how did China tear a hole?
Speaking of Indonesia, the Chinese are not very familiar with it.
In fact, Indonesia is also a "big country".
With a land area of more than 1.91 million square kilometers and a population of nearly 280 million, it ranks fourth in the world after India, China, and the United States.
Regardless of area or population, Indonesia ranks first in Southeast Asia.
In terms of economy, Indonesia's GDP reached US$1.186 billion last year, making it the largest economy in ASEAN and the only country among the ten ASEAN countries with a total volume exceeding US$1 trillion.
Before the epidemic, Indonesia's GDP growth rate exceeded 5% on average for ten consecutive years, showing a gratifying momentum.
With such a huge population base and economic aggregate and growth rate, Indonesia's car ownership ranks first in Southeast Asia.
In 2021, in Indonesia, the largest car market in Southeast Asia, car sales will surge by 66.8% from 2020 to more than 887,000 vehicles.
Among them, Japanese cars are well-deserved overlords.
The top seven car brands in terms of sales volume in Indonesia are all from Japanese companies, firmly occupying a market share of up to 91.7%.
Toyota alone's annual sales in 2021 will reach 295,400, accounting for about one-third.
In May of this year, the bulk of new car wholesale sales in Indonesia was still dominated by Japanese car companies.
Why can Japanese cars dominate the Indonesian market?
In addition to early entry and high cost performance, the core competitiveness is the production method of Japanese car companies' supply chain packaging for overseas shipments.
This approach is a consensus among Japanese companies.
Every market expansion is not simply the landing of a production plant, but the migration of an overall industrial complex from supply chain to logistics, from intelligence to finance.
Japan's Itochu Corporation ("Japan's Secret Weapon to Attack the World: Intelligence Capabilities Surpass CIA, Instant Noodle Missiles Are Everywhere", which was introduced by Positive Solutions Bureau before) is a typical representative.
As a company that mainly focuses on business intelligence and also has diversified functions such as finance, logistics, and trade, the information held by ITOCHU Corporation allows any Japanese company that is new to Indonesia, no matter where it is in the industrial chain, to obtain Accurate list of potential customers and effective business proposals.
With this kind of business relationship, local Japanese companies in Indonesia have also united into a tight circle, working together to hold a group, and unanimously external.
For example, Japanese auto parts manufacturers in Indonesia, relying on their first-mover and monopoly advantages, plus technology accumulation, when supplying products to companies in other countries, the price is higher than the quotation for domestic auto companies.
If you want to use Japan's logistics and transportation system, not to mention the high cost, you are often blocked by orders from other Japanese companies, and the schedule is very late.
In addition, the public relations of Japanese car companies in Southeast Asia is also a hidden killer.
In the era of economic take-off, Japan has established a very extensive cooperative relationship with the Indonesian government.
Through cooperation with the Indonesian government, Japanese car companies have written rules that are more conducive to the development of Japanese cars into Indonesia's auto industry standards and policies, and even tilted toward Japanese cars in government planning.
Japanese car companies have influenced and dominated the regulations, standards, and policies of the Indonesian auto market, forming industry barriers and fundamentally restricting the local development of car companies from other countries.
Relying on the two starting points of "market" and "plan", Japanese car companies are in charge of the Indonesian market.
It is difficult for European and American auto products to form sufficient competitiveness in Indonesia.
On the one hand, the product itself is not durable enough, and on the other hand, because of fuel consumption, selling price and other factors that do not meet the requirements, it cannot enjoy the zero tax rate and other subsidies of the Indonesian government.
In the era of fuel vehicles, General Motors was once optimistic about the Indonesian auto market.
Counting, the official start of the Indonesian automobile industry also started with General Motors - in 1927, General Motors of the United States established the country's first automobile assembly plant in Indonesia.
In 2011, General Motors ambitiously built a factory near Jakarta, the capital of Indonesia, with an annual production capacity of 50,000 vehicles, planning to turn Indonesia into a hub for auto exports to other Southeast Asian countries.
However, whether it is local production or model introduction, GM has never been able to shake the dominance of Japanese cars in the Indonesian market.
In the end, the factory was built and closed, but it couldn't take root in the local area, so it had to dismantle the equipment, pack it up and leave.
Thirty years in Hedong and thirty years in Hexi.
The current Indonesian auto market has been torn open by China.
The killer feature is electric vehicles.
SAIC-GM-Wuling just rolled off the production line of the small pure electric vehicle "Air ev" right-hand drive version in August. The pre-sales reached 821 units in the first month of its launch. It also successfully entered the G20 summit held in Bali, Indonesia in November and became the official designated vehicle. car.
Hendro Sugiatno, director of the Indonesian Ministry of Transport, even tested the car himself and brought the goods on site.
Hendro Sugiatno, director of the Indonesian Ministry of Transport, test-driving Chinese electric vehicles
Chinese electric vehicles have become an instant hit in Southeast Asia.
SAIC-GM-Wuling accounted for nearly 50% of Indonesia's pure electric vehicle sales market from January to August, ranking first in the country.
Wuling's ability to open up the world in the Indonesian market relies on its strong technology accumulation and strict control of manufacturing costs, as well as its mature industrial supply chain and domestic and foreign logistics.
As early as August 2015, SAIC-GM-Wuling began to deploy in Indonesia, with a total investment of 700 million US dollars to build a factory in Bekasi County, West Java Province.
On July 11, 2017, the factory was completed and officially put into operation.
In the Indonesian market, Wuling does as the Romans do, grasping with both hands.
First hand is cost-effective.
For example, the "Air ev" mentioned just now, the lowest priced model is about RMB 110,000, and the Hyundai electric car "IONIQ 5" with similar performance is priced at about 350,000. , super friendly for consumers in developing countries.
One hand is precise positioning.
The global electric vehicle market has a characteristic, that is, consumers are mainly young, new middle-class and new-generation business operators.
Chinese electric vehicle companies face the same group of people in China, so they are very accurate in their promotion in the Southeast Asian market.
Chinese car companies are "self-acquainted" with local young people, and with the help of the huge explosive power of video websites, they have become one with them.
The price is close to the people, and the audience is younger. This strategy, which has been tried and tested in China, is also copied and effective in Indonesia.
In addition to Wuling, Chinese car companies such as BAIC and Great Wall have also deployed in Indonesia.
In contrast, Japanese electric vehicles have already fallen behind.
Although the total share of electric vehicles in the Indonesian auto market is still very low, the general trend is the same.
Jump out of Indonesia and look at the world.
According to statistics from the General Administration of Customs, in the first eight months of this year, China's auto exports reached 1.91 million vehicles.
China has surpassed Germany, second only to Japan, and officially leapt to the seat of the world's second largest car exporter.
Among them, the export of new energy vehicles has become the core growth point of China's auto exports.
As of August this year, China's export volume of new energy vehicles has reached 593,000, exceeding the 588,000 for the whole of 2021.
Compared with 2020, the growth rate is more than 2.8 times.
In the era of fuel vehicles, China can only export products with low-end technology, low added value, and low unit price, and there is no way to talk about brands.
In the era of new energy vehicles, my country has become the world's largest new energy vehicle market, and high-end models abound, which are increasingly favored by domestic and foreign markets.
With the popularization of new energy vehicles, the advantages of China's electric vehicle industry chain will be further highlighted.
The opportunity for Chinese cars has come.
