| Summary: | The study aimed to analyze the competitive automotive industry in Indonesia in the
period 2010-2012 conducted by using qualitative descriptive analysis approach. The
results obtained from this study are as follows:
(1) Driving factors for development of the automotive industry are (a) Government�s
political commitment in advancing Indonesia's automotive industry, (b) Condition of
the national economy tends to improve, (c) Indonesia's high population, and (d)
World�s automotive technology advancement. While the factors that become
obstacles, namely global economic conditions,
(2) Indonesia� automotive industry growth trend in 2010-2012 will tend to increase
because (a) Improved national economy, (b) Increasing number of Indonesian
population will tend to contribute to the national automotive product sales, (c) Trends
in automotive products sales will tend to type of passenger cars that have prices
below Rp 200 million,
(3) The automotive industry still has a very high appeal, because: (a) The industry's
growth is very high, (b) Low bargaining power of substitution products so that
consumers more tend to choose to buy private cars, (c) Entrants� bargaining power is
relatively low, because the market has been already dominated by players with wellknown
brands from Japan with concentration reaches 95%. But for newcomers,
Indonesia's automotive industry is felt less attractive, because the market is very dominated by eight major players from Japan with concentration reaches 95%. The
remaining 5% is controlled by 22 old players,
(4) Characteristics of the automotive industry competition are (a) market is dominated
by automotive brands from Japan, with concentrations reaching 95%, (b) the market
is more interested in vehicle types 4x2 below 1,500 cc, with gasoline fuel, and at a
price below Rp 200 million, and (c) Buyers is largely middle economic class society
so more sensitive to price and fuel use,
(5) To successfully compete in the Indonesian automotive industry in the period
2010-2012 (a) To develop the automotive products that have high efficiency (fuel
economy) but have carrying capacity large enough (i.e. between 6-7 passengers), and
the price below Rp 200 million, (b) Vehicles with top brand guarantee, such as
vehicles with well-known brands from Japan which well-known for fuel efficient and
relatively cheap price, and (c) Market segment is more prioritized to middle class
people or young families.
(6) Strategies alternative which can be selected are (a) Strategy that is more focused
on specific market segments based on economic segment of society, (b) Cost
leadership strategy, namely strategy based on the market which is very sensitive to
costs, such as fuel cost, and vehicle purchase price
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