TOKYO, Sept 11 Honda Motor Co will
start selling its new small hatchback Brio Satya in November in
Indonesia where it expects the vehicle to be certified by the
government as a tax-exempt, low-cost green car.
Japanese carmakers including Honda are banking on
Indonesia's long delayed Low Cost Green Car (LCGC) programme to
boost sales. Under the plan, no luxury tax would be imposed on
cars or station wagons with an engine displacement of up to
1,200ccs, or diesel or semi-diesel vehicles of up to 1,500ccs
and with fuel consumption of 20 kilometres per litre or better.
Honda, the fifth-biggest carmaker in the fast-growing
market, expects the government to certify its made-in-Indonesia,
1,200cc Brio Satya as an LCGC by the end of October, a spokesman
said. The Brio Satya will have a starting price of 106 million
rupiah ($9,400), Honda said on Wednesday.
This week, Toyota Motor Co and group company
Daihatsu Motor Co, which together hold a 50 percent
market share, became the first to obtain the LCGC certification
with their compact cars - sister models called Toyota Agya and
The Toyota group expects LCGC cars to account for 10 percent
of Indonesia's total automobile demand. In 2012, Indonesian auto
sales hit a record 1.1 million and some estimates show it could
double over the next three years.
Honda, the biggest motorbike maker in Indonesia, holds a 7
percent share in the car market, lagging the Toyota group as
well as Mitsubishi Motors Corp and Suzuki Motor Corp
, which each hold around a 13 percent share.
Honda will open a new auto plant in Indonesia in 2014 and
will more than double its annual car production capacity to
($1 = 11,235.00 Indonesian rupiah)
(Reporting by Yoko Kubota; Editing by Matt Driskill)