Several Japanese car brands in Indonesia have defended themselves against accusations of taking large profits from car selling prices. This method of taking big profits is allegedly what makes the prices of Japanese cars more expensive when compared to cars made in China in Indonesia.
The accusation itself came after Harry Kamora, Vice President of PT Chery Sales Indonesia, answered the question of why Chinese cars were so much cheaper than Japanese cars. Even though the technology and design offered by Chinese cars are not inferior to Japanese cars.
Take for example the Chery Omoda 5 whose price starts from IDR 334.8 million. This price is cheaper than the Toyota Yaris Cross, whose price starts at IDR 351 million.
“I’ve always been asked, how can China make cheap cars? Others make huge profits,” said Harry Komara.
“Essentially, if we look at the prices of China’s cheap cars, we look at China’s way of being a state and nation. What is expensive in China? Nothing, but the quality is good. That’s what we have to learn,” he added.
According to several Japanese car brands, this statement turns out to be unreasonable.
Anton Jimmi as Marketing Director of PT Toyota Astra Motor (TAM) emphasized that the price set by his party is in accordance with the quality of the product. Apart from that, he confirmed that the determination of the numbers had also gone through various considerations.
“This is competition, yes, everybody can say anything, but back again it’s proof and we feel that we adjust the prices we apply to product quality and needs, otherwise it wouldn’t be possible for Toyota to be number 1 with a market share above 30%,” Anton responded. .
Anton explained that in setting prices there are negotiations that must be carried out regarding company policies. Plus, Toyota also provides various convenience offers to consumers in Indonesia.
“Wwe have to negotiate to sell this volume, the price has to be this much and we have to be careful, what’s the price of the car? What’s the price of the car? The price of the car is what’s in it. We have a branch of 300 mechanics with experience, spare parts available, free service and the resale value is that much, so it’s not comparable if you just talk about looking at iron against iron, you know,” he said
The Marketing Director of PT Honda Prospect Motor (HPM), Yusak Billy, emphasized that his party never takes too big a profit when setting a product price. In fact, he claimed, the price set was still lower than the value of the vehicle.
“No, not that, not (true). We provide more value to consumers in Indonesia,” said Yusak Billy.
Billy confirmed that cars made by Honda are still more competitive than other products in their class. That’s why, he said, there is no such thing as taking big profits.
“So the price we offer is in line with its value. In our opinion, the price (of Honda cars) is very competitive. So that’s not true,” he said.
